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3 Human Resource Management


HUMAN RESOURCE MANAGEMENT TABLE OF CONTENT Unit I Human Resource Management Definition Objects and functions Role and structure of personnel function in organizations Personnel principles and policies. Unit II Human Resource Planning Characteristics Need for planning HRP Process ob anal!sis ob design ob description ob specification Unit III "he #election Process Placement and induction $"raining and de%elopment Promotion Demotions "ransfers #eparation Unit - I &age and #alar! 'dministration (actors Principles Compensation plan )ndi%idual *roup )ncenti%es +onus (ringe benefits ob e%aluation &age and salar! administration in relation to personal ta,ation. Unit -mplo!ee Maintenance and )ntegration &elfare and safet! 'ccident pre%ention 'dministration of discipline -mplo!ee moti%ation Need and measures Unit I Personnel Records.Reports Personnel research and personnel audit Objecti%es #cope and importance.

UNIT I Human Resource Management Definition Objecti%es and functions role and structure of personnel function in organizations Personnel principles and policies. HUMAN RESOURCES MANAGEMENT AN INTRO!UCTION Management o" Men is a C#a$$enging %o&'
)n an! organisation/ 0"he management of Man1 is a %er! important and challenging job2 it is important because it is getting a job done/ not of managing but of administering a social s!stem. "he management of men is a challenging tas3 because of the d!namic nature of the people. People are responsi%e2 he! feel/ thin3/ and act/ therefore/ the! cannot be li3e a machine or shifted and altered li3e a template in a room la!out. "he!/ therefore/ need a tactful handling b! management personnel. )f manpo4er is properl! utilized/ it ma! pro%e a d!namic moti%e force for running an enterprise at its optimum results and also 4or3 as an e,cellence output for ma,imum indi%idual and group satisfaction in relation to the 4or3 performed. Manpo4er management is a most crucial job because 0managing people is the heart and essence of being a manager.1 )t is concerned 4ith an! acti%it! relation to human elements or relations in organisatoin. Material elements/ ho4e%er/ are be!ond its domain. "his %ie4 has been rightl! summed up b! J.M. Deitz (of Chicago). He obser%es5 0' business or an industr! can be thought of as an inter64ea%ing of human elements and material elements/ 4ith the human elements as the 4arp2 4hile inter6loc3ing and inter64ea%ing 4ith this element are the material elements the 4oof of the fabric. "he 4rap of the fabric is the human element appearing and reappearing/ strength gi%ing element holding the entire fabric together/ and gi%ing it life and a character of continuit!.1 ' business cannot succeed if this human element is neglected.

Im(ortance o" Human Resources Management

Yodder, Heneman had discussed about the importance of human resource management from three standpoints/ %iz/ social/ professional and indi%idual enterprise. 7'8 Socia$ Signi"icance) Proper management of personnel9s/ enhances their dignit! b! satisf!ing their social needs/ this it does b!5 7a8 maintain a balance bet4een the jobs a%ailable and the jobsee3ers. 'ccording to the :ualifications and needs2 7b8 pro%iding suitable and most producti%e emplo!ment/ 4hich might bring them ps!chological satisfaction2 7c8 ma3ing ma,imum utilization of the resource in an effecti%e manner and pa!ing the emplo!ee a reasonable compensation in pro portion to the contribution made b! him2 7d8 eliminating 4aste or improper use of human resources/ through conser%ation of their normal energ! and health2 and 7e8 b! helping people ma3e their 4on decisions/ that are in their interests. 7+8 *ro"essiona$ Signi"icance) +! pro%iding health! 4or3ing en%ironment it promotes team 4or3 in the emplo!ees. "his it does b!5 7a8 maintaining the dignit! of the emplo!ee as a $human6beings9 7b8 pro%iding ma,imum opportunities for personnel de%elopment2 7c8 pro%iding health! relationship bet4een different 4or3 groups so that

4or3 is effecti%el! performed 7d8 impro%ing the emplo!ee9s 4or3ing s3ill and capacit!2 7e8 correcting the errors of 4rong postings and proper reallocation 4or3. 7C8 Signi"icance "or In+i,i+ua$ Enter(rise) )t can help the organisatoin in accomplishing its goals b!2 7a8 creating right attitude among the emplo!ees through effecti%e moti%ation2 7b8 utilizing effecti%el! the a%ail able human resources2 and 7c8 securing 4illing co of the emplo!ees for achie%ing goals of the enterprise and fulfilling their o4n social and other ps!chological needs of recognition/ lo%e/ affection/ belongingness/ esteem and self6actualization.


Walton 7;<=>8/ ha%e attempted to define the Human Resource Management as/ it is process of stresses mutuall! bet4een emplo!ers and emplo!ees in follo4ing 4a!s5 Mutual goals/ mutual influence/ mutual respect/ mutual re4ards/ mutual responsibilit!. "he theor! is that policies of mutualit! 4ill elicit commitment 4hich in turn 4ill !ield both better economic performance and greater human de%elopment. +eer and #pector 7;<=>8 emphasized a ne4 set of assumptions in shaping their meaning of HRM. Proacti%e s!stem 4ide inter%entions/ 4ith emphasis of $fit2 lin3ing HRM 4ith strategic planning and cultural change. People are social capital capable of de%elopment. Coincidence of interest bet4een sta3eholders can be de%eloped. #ee3 po4er e:ualization for trust and collaboration. Open channel of communication to build trust and commitment *oal orientation Participation and informed choice.

O&%ecti,es o" Human Resources Management

One of the basic principles of management is that5 all the 4or3 performed in an organisatoin should/ in some 4a!/ directl! or indirectl! contribute to the objecti%es of that organisation. "his means that the determination of objecti%es/ purposes or goals is of prime importance and is a prere:uisite to the solution of most management problems. Objecti%es are pre determined ends or goals at 4hich indi%idual or group acti%it! in an organisatoin is aimed. "he formations of the objecti%es of an organisation are necessar! for the follo4ing reasons5 i8 Human beings are goal6directed. People must ha%e a purpose to do some 4or3. 'nnounced organizational goals in%est 4or3 4ith meaning.

ii8 iii8 i%8

Objecti%es ser%e as standards/ against 4hich performance is measured. "he setting of goals and their acceptance b! emplo!ees promotes %oluntar! co6operation and co6ordination/ self6regulated beha%ior is achie%ed. "he objecti%es stand out as guidelines for organizational performance . "he! help in setting the pace for action b! participants. "he! also help in establishing the 0character1 of an organisatoin. Ralph C/ Da%is has di%ided the objecti%es of an organisatoin into t4o categories5 7a8 Primar! objecti%es/ and 7b8 #econdar! objecti%es. a. Primar! objecti%es/ in the first instance/ relate to the creation and distribution of some goods or ser ices. "he Personnel Department assists those 4ho are engaged in production/ in sales/ in distribution and in finance. "he goal of personnel function is the creating of a 4or3 force 4ith the abilit! and moti%ation to accomplish the basic organizational goals. #econdl!/ the! relate to the satisfaction of the personal objecti%es of the members of an organisatoin through monetar! and non6monetar! de%ices. Monetar! objecti%es include profits for o4ners2 salaries and other compensation for e,ecuti%es2 4ages and other compensation for emplo!ees2 rent for the lando4ners and interest for share.stoc36holders. Non6monetar! objecti%es include prestige/ recognition/ securit!/ status/ or some other ps!chic income. "hirdl!/ the! relate to the satisfaction6of communit! and social objecti%es/ such as ser%ing the customers honest! promoting a higher standard of li%ing in the communit!/ bringing comfort and happiness to societ!/ protecting 4omen and children/ and pro%iding for aged personnel. b. "he secondar! objecti%es aim at achie%ing the primar! objecti%es economicall!/ efficientl! and effecti%el!.

T#e "u$"i$$ment o" t#e (rimar- o&%ecti,es is contingent u(on) 7i8 7ii8 "he economic need for/ or usefulness of/ the goods and ser%ices re:uired b! the communit!.societ!. Conditions of emplo!ment for all the members of an organisatoin 4hich pro%ide for satisfaction in relation to their needs/ so that the! ma! be moti%ated to 4or3 for the success of the enterprise. "he effecti%e utilization of people and materials in producti%e 4or3. "he continuit! of the enterprise. ersonnel

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'ccording to the American Management Association, the objectives of administration ma! be laid do4n as follo4s5 7i8 7ii8

"o achie%e an effecti%e utilization of human resources in the achie%ement of organisation goals. "o establish and maintain an ade:uate organizational structure and a desirable 4or3ing relationship among all the members of an organisatoin b! di%iding of organisatoin tas3s into functions/ positions/ jobs/ and b! defining clearl! the

responsibilit!/ accountabilit!/ authorit! for each job and its relation 4ith other jobs.personnel in the organisatoin. 7iii8 "o secure the integration of the indi%iduals and groups 4ith an organisatoin/ b! reconciling 4ith those of an organisation in such a manner that the emplo!ees feel a sense of in%ol%ement commitment and lo!alt! to4ards it. )n the absence of integration/ friction ma! de%elop in an organisation. &hich ma! lead to its total failure? (riction produces inefficienc!. (riction ma! result from political aspirations/ from difficulties in communication/ and from faults inherent in a particular organizational structure. "he beha%iour of indi%iduals and groups in an! organisation also in%ol%ed frictions6 personal jealousies and prejudices and idios!ncrasies/ personalit! conflicts cli:ues and faction9s fa%oritism and nepotism. "o generate ma,imum indi%idual . group de%elopment 4ithin an organisatoin b! offering opportunities for ad%ancement to emplo!ees through training and job education or b! effecting or b! offering retraining facilities. "o recognize and satisf! indi%idual needs and group goals b! offering an ade:uate and e:uitable remuneration/ economic and social securit! in the form of monetar! compensation/ and protection against such hazards of life as illness/ old age/ disabilit!/ death/ unemplo!ment etc./ so that the emplo!ees ma! 4or3 4illingl! and co6operate to achie%e an organization9s goals. "o maintain a high morale and better human relations inside an organisation b! sustaining and impro%ing the conditions 4hich ha%e been established so that emplo!ees ma! stic3 to their jobs for a longer period?




*re-re.uisites "or t#e Ac#ie,ements o" t#e O&%ecti,es

#etting up the objecti%es of an organisation ma! be the fullest contribution of human resources management for the achie%ement of the organisatoin of long and short term plans and of the operations of the organisation in an en%ironment of high morale and %italit! consistent 4ith profit abilit! and social milieu 4ith the ethical %alues of societ! and 4ith the policies and regulations established b! the countr!9s legislature. "o achie%e these objecti%es/ the follo4ing re!re"#isites must be satisfied5 i. ii. Capable people should be pic3ed upon the basis of the :ualifications fi,ed. )ndi%idual and group efforts.potentialities must be effecti%el! utilized b! pro%iding suitable 4or3 opportunities/ tools and ra4 materials/ b! sho4ing an appreciation of 4or3 4ell done/ and b! offering better chances for future ad%ancement and training. &illing co6operation of the people to achie%e the objecti%es must be a%ailable b! creating such feelings as 0people 4or3 4ith us1 rather than sa!ing that 0people 4or3 for us1 "he tas3s of an organisatoin should be properl! di%ided in accordance 4ith a sound plan into functions and positions/ each indicating clear6cut authorit!/ responsibilit! and duties/ as also the relationship of the position 4ith another.

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"he goals to be achie%ed should be speciall! made 3no4n to all concerned in the language best understood b! them. #pecificit! and clarit! are both important in defining the objecti%es. "he objecti%es should also be comprehensi%e. #ince objecti%es ha%e to be shared b! man! senior persons in an organisation/ a 4ide6 scale en:uir! and consolation should be underta3en before their formulation and efforts should subse:uentl! be made to de%elop a common understanding of the objecti%es among managers at %arious le%els. "he objecti%es should be clearl! defined/ failing 4hich a great deal of confusion ma!6 arise. &ithout clear6cut objecti%es/ the management of organizational records cannot be 3ept in balance/ and the management of one section ma! interfere 4ith that of another. Moreo%er/ 4ithout clear6cut objecti%e/ there can be not standards b! 4hich to e%aluate the performance of an indi%idual or that of the 4hole organisation. 'gain/ an absence of objecti%es often leads to organizational disaster. On the other hand/ the refining or re%ising of objecti%es is the most fundamental tas3 of all managers at all le%els. #uitable monetar! and non6monetar! incenti%es/ in the form of ade:uate and reasonable pa!6pac3ets/ ser%ice benefits and securit! against hazards of life and of emplo!ment and against the arbitrar! actions of super%isors should be to emplo!ees. ' properl! prepared grie%ance handling procedure and disciplinar! plan should also be a%ailable.





(unction of personnel management is the process of management of human resources in an organisation and is concerned 4ith the creation of harmonious 4or3ing relationships among its participants and bringing about their utmost indi%idual de%elopment. #uch management is concerned 4ith leadership in both groups and $indi%idual relationship9 and $labour relations9 and $personnel management9. )t effecti%el! describes the process of planning and directing the application/ de%elopment and utilization of human resource in emplo!ment. )n fact/ personnel management underta3es all those acti%ities 4hich are concerned 4ith human elements or relations as 4ell as 4ith material elements in an organisation. &hate%er functions are listed therein/ the main objecti%es of these function is to bring together e,pertise in a scientific 4a! and to create attitudes that moti%ate a group to achie%e its goals economicall!/ effecti%el! and speedil!.

@arious philosophers and e,perts ha%e generall! classified the functions into t4o major categories/ %iz./ managerial f#nctions and o erative f#nctions. Others ha%e classified functions as general and specific functions/ and !et others as $ ersonnel administration f#nctions% and $&nd#strial 'elation (#nctions%. (unctions ha%e also been classified on the basis of the capacities/ or on the basis of authorit!. T#is t-(e o" c$assi"ication o" "unctions #as &een +iscusse+ as &e$o/)

0a1 T#e Genera$ an+ S(eci"ic Functions


"he $*eneral9 t!pe of functions/ in the personnel management is re:uired the follo4ing steps5 7i8 to conduct personnel research/ 7ii8 to assist in the programmes of personnel administration 7iii8 to de%elop a competent 4or3 force/ and 7%i8 to establish and administer %aries personnel ser%ices delegated to personnel department9

0&1 *ersonne$ A+ministration 2 In+ustria$ Re$ations Functions

Personnel administration functions relate to the functions of managing people from the lo4er to the upper le%el of the organisatoin and embraces polic! determination as 4ell as implementation of policies b! the personnel at the lo4er le%els. 'ccordingl!/ 0personnel administration1 refers to 0creating/ de%eloping and utilizing a $4or3 group9 in%ol%es all t!pes of inter of inter6personnel relationships bet4een superiors sub6ordinates1. "he $)ndustrial Relations9 functions/ on the other/ are 0not dire related to the function of $managing people9/ but refer to interactions bet4een the management and the representati%es of the unions1. #uch functions in%ol%e all acti%ities of emplo!er6emplo!ee relationship/ such as organisation of the union members/ negotiation of contracts/ collect bargaining/ grie%ance handling/ disciplinar! action/ arbitration/ etc./ the purpose of all these being to pre%ent conflict bet4een the particulars.

0c1 Functions C$assi"ie+ on t#e Basis o" Ca(acities

)altonstall suggests t4o approaches for the de%elopment of Aine officiates/ %iz./ 7a8 the 0reducti%e1 or 0threat approach12 and 7b8 "he 0augmentati%e1 or 0source of help1 approach. "he latter approach is more close to 0beha%ioral approach to management.1 "hus/ according to him5 "he t!pical staff function are indirectl! related to action and characterized b! de%elopment/ consultation/ planning/ interpretation/ e%aluation/ diagnosis/ research/ in%estigation and recommendation and "he t!pical line functions are related to command action and characterized b! direction/ control/ decisions/ enforcement/ application/ performance and instruction.

0+1 Functions Accor+ing to t#e !egree o" Aut#oritDale Henning and (rench made an interesting obser%ation that 0"he personnel man is described in the te,t boo3s and journals li3e $'bominable #no4man9 much tal3ed bout but seldom seen.1 "he! ha%e classified his functions in to three categories thus5 7a8 'rea of ma,imum authorit!/ e.g./ direction of pa!roll calculations/ orientation procedure/ and transfer rules/ etc.

7b8 'rea of combined use of authorit! and persuasion/ e.g./ establishment of disciplinar! procedure/ inter6departmental data gathering/ determining the number of participants in a training programmes/ etc2 and 7c8 'rea of ma,imum persuasion/ e.g./ salar! changes under the rules of the plant/ emplo!ment of indi%iduals recommended b! the personnel department in other departments/ initiating disciplinar! action/ etc. T#e "unctions genera$$- c$assi"ie+ as 7;8 Managerial functions/ and 7B8 Operati%e functions.

3' Manageria$ Functions

0Management is a multi6purpose organ 4hich has three jobs/ t4o of 4hich are directl! related to personnel managing a business5 $managing managers and managing 4or3ers and the 4or3 ) *a+rence , le- sa!s that 0Management is the accomplishment of results through the efforts of other people1. )n the opinion of Harold .oontz, 0)t is the art of getting things done through people and 4ith informall! organized groups. )n their %ie4/ management ma! be thought of as the process of allocating an organisatoins inputs 7human and economic resources8 b! planning/ organizing/ directing and controlling for the purpose of producing outputs 7goods and ser%ices8 desired b! its customers so that organisation job objecti%es are accomplished in the process/ 4or3 is performed 4ith and through organisatoin personnel in an e%er changing business en%ironment. 7a8 *$anning is a pre6determined course of action. 'ccording to 'llen/ 0it is a trap laid to capture the future1 "err! is of the @ie4 that 0planning is the foundation of most successful actions of an! enterprise.1 Planning is the determination of the plans/ strategies/ programmes/ policies/ procedures/ and standards needs to accomplish the desired organisatoin objecti%es in fact/ 0planning toda! a%oids crisis tomorro4.1 7b8 Organi4ing) 'fter a course of action has been determined/ an organisation should be established to carr! it out. 'ccording to .c. Massie/ 0'n organisation is a structure/ a frame4or3 and a process b! 4hich a cooperati%e group of human beings allocates its tas3s among its members/ identifies relationships and integrates its acti%ities to4ards common objecti%es.1 )n the 4ords of Druc3er5 0"he right organizational structure is the necessar! foundation2 4ithout it/ the best performance in all other areas of management 4ill be ineffectual and frustrated.1 7c8 !irecting 0moti,ating5 actuating or comman+ing1 the subordinates at an! le%el is a basic function of the managerial personnel. 'ccording to Mc*regor/ 0man! managers 4ould agree that the effecti%eness of their organisatoin 4ould be at least doubled if the! could disco%er ho4 to tap the unrealized potential present in their human resources1 7d8 Coor+inating an+ Contro$$ing' Coordinating refers to balancing timing and integrating acti%ities in an organisation/ so that a unit! of action in pursuit of a common purpose is

achie%ed. )n the 4ords of "err!/ 0Co6ordination deals 4ith the tas3 of blending efforts in order to ensure a successful attainment of an objecti%e.1 7e8 Contro$$ing is the act of chec3ing/ regulating and %erif!ing 4hether e%er!thing occurs in conformit! 4ith the plan that has been adopted/ the instructions issued and the principles established. )t is greatl! concerned 4ith actions and remedial actions. 0it is not just score6 3eeping. )t is not just plotting the course and getting location reports2 but rather it is steering the ship.1

6' O(erati,e Functions

"he operati%e functions of personnel management are concerned 4ith the acti%ities specificall! dealing 4ith procuring/ de%eloping/ compensating/ and maintaining an efficient 4or3 force. "hese functions are at 3no4n as ser%ice functions. 7a8 T#e (rocurement "unction is concerned 4ith the obtaining of a proper 3ind and number of personnel necessar! to accomplish an organization9s goals. )t deals 4ith specificall! 4ith such subjects as the determination of manpo4er re:uirements/ their recruitment/ selection and placement 7comprising acti%ities to screen and hire personnel/ including application forms ps!chological tests/ inter%ie4s/ medical chec36up/ reference calling8/ induction/ follo46up/ transfers/ la!6offs/ discharge and separation/ etc. 7b8 T#e +e,e$o(ment "unction is concerned 4ith the personnel de%elopment of emplo!ees b! increasing their s3ill through training so that job performance is properl! achie%ed. Drafting and directing training programmes for all le%els of emplo!ees/ arranging for their on6the6job/ office and %estibule6training/ holding seminars and conferences/ pro%iding for educational and %ocational counselling and appraising emplo!ee potential and performance are underta3en under this function. 7c8 T#e com(ensation "unction is concerned 4ith securing ade:uate and e:uitable remuneration to personnel for their contribution to the attainment of organizational objecti%es. (unctions related to 4age sur%e!s/ establishment of job classifications/ job descriptions and job anal!ses/ merit ratings/ the establishment of 4age rates and 4age structure/ 4age pans and policies/ 4age s!stems/ incenti%es and profit6sharing plans etc./ fall under this categor!. 7d8 Integration "unction 'fter the emplo!ee has been procured/ his s3ill and abilit! de%eloped and monetar! compensation determined/ the most important/ !et difficult of the personnel management is to bring about an 0integration1 of human resources 4ith organisatoin/ and to cope 4ith ine%itable conflicts that ensue. 0)ntegration1 is concerned 4ith the attempt to effect a reasonable reconciliation of indi%idual/ societal/ and organisation interests. 7e8 T#e maintenance "unction deals 4ith sustaining and impro%ing the conditions that ha%e been established. #pecific problems of maintaining the ph!sical conditions or emplo!ees 7health and safet! measures8 and emplo! ser%ice programmes are the responsibilit! of the personnel department.

(lippo rightl! sa!s5 0"he purpose of all of these acti%ities is to assist in the accomplishment of the organization9s basic objecti%es. Conse:uentl!/ the starting point of personnel management as of all management must be a specification of those objecti%es and a determination of the sub6 objecti%es of the personnel function5 "he e,penditure of all funds in the personnel departments can be justified onl! in so far as there is a net contribution to4ard compan! objecti%es.1


+elo4 are gi%en some important classifications of personnel functions made b! e,perts in the field5 Coder9s Classification5 'ccording to Coder/ in a t!pical industrial relations and personnel department/ the principal acti%ities of manpo4er management are5 i8 #etting general and specific management polic! for relationships and establishing and maintaining a suitable organisatoin for leadership and co6operation. ii8 Collecti%e bargaining/ contract negotiations/ contract administration and grie%ances. iii8 #taffing the organisation/ finding/ getting and holding prescribed t!pes and number of 4or3ers. i%8 'iding the #elf6de%elopment of emplo!ees at all le%els/ pro%iding opportunities for personnel de%elopment and gro4th as 4ell as for re:uisite s3ills and e,perience. %8 )n%estigating/ de%eloping and maintaining moti%ation for 4or3. %i8 Re%ie4ing and auditing manpo4er management in an organisatoin. %ii8 )ndustrial relations research/ carr!ing out studies designed to e,plain emplo!ment beha%iour and thereb! effecting impro%ements in manpo4er management. Yoder and Nelsons Classification: On another occasion/ on the basis of an en:uir! regarding descriptions of <=D emplo!ee6relations jobs conducted in ;=< companies. Dale Coder and Robert . Nelson classified se%en functional categories as follo4s5 i. ii. iii. i%. %. %i. !e(artments A+ministration *rogramme) Planning/ report preparing/ polic! formulation and general administration. Em($o-ment an+ *$acement) Recruitment/ selection/ placement/ orientation/ personnel rating/ job anal!sis and description. Training In+uction5 on6the6job training/ super%isor! training and management de%elopment. Co$$ecti,e Bargaining) Contract negotiation/ contract administration and grie%ances. &age and #alar! 'dministration/ ob e%aluation/ 4age and salar! sur%e!s. Bene"its an+ Ser,ices) )nsurance/ health/ hospitalization/ medial care/ and retirements plan administration.


*ersonne$ Researc#) Continuing studied of all emplo!ee relations policies/ programmes and practices.

Northcotts Classification: 'fter referring to three t!pes of approach to the tas3/ %iz./ 7a the 4elfare9 approach/ 7b8 the scientific management influence the industrial relations emphasis/ Northcott gi%es the functions of personnel management thus5 ;. -mplo!ment2 B. #election and "raining2 E. -mplo!ee #er%ices/ D. &ages2 >. )ndustrial Relations2 F. Health and #afet! -ducation2 and G. -ducation. #cott/ Clothier H #priegels9 Classification5 #cott/ Clothier and #priegel di%ide the functions of the personnel management into these specific categories/ namel!5 7i8 -mplo!ment2 7ii8 Promotion/ transfer termination/ demotions/ and separations2 7iii8 (ormulation and direction of training programmes2 7i%8 ob anal!sis and e%aluation2 7%8 Remuneration and incenti%es2 7%i8 Health and #anitation2 7%ii8 #afet! and institutional protection2 7%iii8 (inancial aids to emplo!ees2 7i,8 -mplo!ee ser%ice acti%ities2 7,8 Research/ record 3eeping/ reports and follo46 up2 7,i8 -mplo!ee6emplo!er and communit! cooperation2 and 7,ii8 Aabour union contracts and co6operation. Kindalls Classificatoin: '.(. Iindall prescribes the follo4ing functions for the personnel management5 7i8 "o aid in the de%elopment of general o%erall management policies and methods/ in the organisation and planning of super%isor! control/ and in the communication of orders/ ideas and in:uiries. "o de%elop throughout the organisatoin an understanding of/ and an enthusiasm for/ consultati%e methods of management 4ith tire objecti%es of5 a. )mpro%ing leadership and super%ision2 and 7b8 Obtaining the participation of operating groups and opportunit! for creati%e anal!sis and initiati%e in carr!ing out their assigned tas3s at all le%els in the de%elopment and administration of the compan!9s personnel programme. 7iii8 "o aid the e,ecuti%e and super%isor! organisation in de%eloping 7a8 clearl! 4ritten outlines of functions/ authorities/ and responsibilities/ and 7b8 simple/ 4or3able methods of measurement of their accomplishments. "o formulate/ in collaboration 4ith the super%isor! and e,ecuti%e organisation policies for personnel administration and to implement those policies appro%e b! the management in accordance 4ith the best plans and practices of personnel administration. "o ma3e certain/ in collaboration 4ith the super%isor! and e,ecuti%e personnel/ that the compan!9s appro%ed policies and practices of personnel administration are e,ecuted properl!. "o establish and maintain contacts 4ith labour mo%ement/ to 3eep itself informed and/ 4here%er possible/ to participate in all collecti%e bargaining acti%ities/ and to





ad%ise all the departments of the compan! on the de%elopment of sound labor relations. 7%ii8 "o aid in the interpretation of the management9s policies to emplo!ees and emplo!ees9 point of %ie4 and attitude to the management and/ in collaboration 4ith the appropriate line personnel to merchandize the compan! and the jobs to emplo!ees.

Careys Classification: Care! outlines the common functions of the personnel management as) 031 Organisation "or (ersonne$ a+ministration7 7ii8 'dministration and super%ision2 7iii8 -mplo!ment2 7i%8 "raining emplo!ee de%elopment2 7%8 &age and salar! administration2 7%i8 (orce adjustment2 7%ii8 Relation bet4een emplo!ees and management2 7%iii8 Hours and conditions of 4or3s2 7i,8 Health and safet!2 7,8 +enefits and emplo!ee securit! matters2 7,i8 Communication 4ith emplo!ees2 7,ii8 Research 4or32 and 7,iii8 Relations 4ith local business and communit! organisation. Strauss and Sayles Classification: 7i8 Recruitment/ #election c Placement5 7a8 Contact 4ith and e%aluation of ad%ertising media/ emplo!ment agencies/ including #tate emplo!ment ser%ices/ college and school recruiting2 7b8 #creening and testing techni:ues/ including ph!sical e,amination2 7c8 'ssistance for in6compan! transfer/ career de%elopment 7d8 'ssistance for la!6 offs and plant closing through job searches for redundant personnel2 7e8 Aabour mar3et sur%e!s and projection of potential shortages2 and 7f8 Manpo4er planning/ projecting future compan! needs. 0ii1 8o& Ana$-sis5 %o& !escri(tion an+ 8o& E,a$uation) 7a8 De%elopment of methods that 4ill facilitate personnel placement and assignment of mone! %alues to s3ill and e,perience/ 7b8 De%elopment of promotional ladders b! means of job anal!sis2 and 7c8 Position guides for organizational planning and information for ne4 placements. 0iii1 Com(ensation an+ A((raisa$ *$ans) 7a8 Design and implementation of personnel appraisal plans2 7b8 &age administration 7c8 Control of merit increases2 7d8 Design and installation of incenti%e and bonus plan and 7e8 'dministration of deferred compensation plans such as profit sharing and bonus plans. 0i,1 Em($o-ment Recor+s) 7a8 Maintenance of job histories/ s3ill in%entories and aptitude and education information2 and 7b8 Maintenance of 4age and hour records/ output records/ o%ertime/ %acation pa!ment incenti%e earning. 0,1 Em($o-ee Bene"it *rogrammes) 7a8 'dministration of life insurance/ pension and health and 4elfare benefits2 7b8 'ppro%al of action/ disabilit! and compensation pa!ments2 7c8 #uggestion and sa%ing plans/ credit union administration2 7d8 Recreation and athletic programmes2 7e8 Cafeteria/ emplo!ee clubs2 7f8 Compan! medical ser%ices/ first aid/ pre%enti%e medicine2 7g8 Communit! referrals 7ps!chiatric/ alcoholic8/ and 7h8 Counselling ser%ice. 0,i1 S(ecia$ Ser,ices Sa"et- ins(ection) 7a8 #afet! plans and controls2 7b8 Compan! guards and protection ser%ices/ including fire6fighting2 7c8 #taff reception areas2 and 7d8 Communication ser%ices/ photograph!/ printing house organs/ polic! manuals/ ne4 releases and instructional manuals.



On the basis of the %arious functions 4hich the personnel management generall! underta3es/ the functional areas of personnel management ma! be set forth as belo45 ). )). ))). )@. @. @). @)). @))). )J. Organizational Planning/ De%elopment and "as3 #pecification #taffing and -mplo!ment2 "raining and De%elopment2 Compensation/ &age and #alar! 'dministration2 Moti%ation and )ncenti%es2 -mplo!ee #er%ices and +enefits2 -mplo!ee Records2 Aabour or )ndustrial Relations2 and Personnel Research and Personnel 'udit.

I' Organi4ationa$ *$anning5 !e,e$o(ment an+ Tas9 S(eci"ication

:Organi4ationa$ ($anning; is concerned 4ith the di%ision of all the tas3s to be performed into manageable and efficient units 7departments/ di%isions or positions8 and 4ith pro%iding for their integration. +oth differentiation and integration are %ital for the achie%ement of pre6deter mined goals. 7i8 ' determination of the needs of an organisation in terms of a compan!9s short and long6 term objecti%es/ utilization of technolog! 7industrial/ engineering/ industrial ps!cholog!/ and mechanical engineering8 of production/ deciding about the nature of product to be manufactured/ 3eeping in %ie4 the e,ternal en%ironment and public polic!. "he planning/ de%elopment and designing of an organizational structure through the fi,ing of the responsibilit! and authorit! of the emplo!ees/ so that organizational goals ma! be effecti%el! achie%ed. De%eloping inter6personal relationship through a di%ision of positions/ jobs and tas3s2 the creating of a health! and fruitful inter6personal relationship2 and the formation of a homogeneous2 cohesi%e and effecti%el! interacting informal group.



II' Sta""ing an+ Em($o-ment

"he staffing process is a flo4 of e%ents 4hich results in a continuous manning of organizational positions at all le%els from the top management to the operati%e le%el. "his process includes manpo4er planning/ authorization for planning/ de%eloping sources of applicants/ e%aluation of applicants/ emplo!ment decisions/ placement induction and orientation/ transfers/ demotions/ promotions and separations/ retirement/ la!6off/ discharge/ resignation/ disabilit!/ and death/



Man(o/er planning is a process of anal!zing the present and future %acancies that ma! occur as a result of retirements/ discharges/ transfers/ promotions/ sic3 lea%e of absence/ or other reasons/ and an anal!sis of present and future e,pansion or curtailment in the %arious departments. Plans are de%elopment of present emplo!ees/ for ad%ertising openings/ or for recruiting and hiring ne4 personnel 4ith appropriate :ualifications. Recruitment is concerned 4ith the process of attracting :ualified and competent for different jobs. "his includes the identification of e,isting sources of the labour mar3et/ the de%elopment of ne4 sources/ and the need for attracting a large number of potential applicants so that a good selection ma! be possible. Se$ection *rocess is concerned 4ith the de%elopment of selection policies and procedures and the e%aluation of potential emplo!ees in terms of job specifications. "his process includes the de%elopment of application blan3s/ %alid and reliable tests/ inter%ie4 techni:ues/ emplo!ee referral s!stems/ e%aluation and selection of personnel in terms of job specifications/ the ma3ing up of final recommendations to the line management and the sending of offers and rejection letters. *$acement is concerned 4ith the tas3 of placing an emplo!ee in a job for 4hich he is best fitted/ 3eeping in %ie4 the job re:uirements/ his :ualifications and personalit! needs. In+uction an+ orientation is meant the introduction of an emplo!ee to the organisatoin and the job b! gi%ing him all the possible information about the organization9s histor!/ objecti%es/ philosoph!/ policies/ future de%elopment opportunities/ products/ good4ill in the mar3et and in the communit!/ and b! introducing him to other emplo!ees 4ith 4hom and under 4hom he has to 4or3. Trans"er (rocess is concerned 4ith the placement of an emplo!ee in a position in 4hich his abilit! can be best utilized. "his is done b! de%eloping transfer policies and proc counselling emplo!ees and line management on transfers and e%aluating transfer policies and procedures. *romotion is concerned 4ith re4arding capable emplo!ees b! putting them in higher positions 4ith more responsibilit! and hither pa!. (or this purpose/ a fair/ just and e:uitable promotion polic! and procedure ha%e to be de%eloped2 line managers and emplo!ees ha%e to be ad%ised on these policies/ 4hich ha%e to be e%aluated to find out 4hether the! ha%e been successful.







7%iii8 Se(aration process is concerned 4ith the ser%ing of relation ship 4ith an emplo!ee on grounds of resignation/ la!6off/ death/ disabilit!/ discharge or retirement. -,it inter%ie4s of emplo!ees are arranged/ causes of labour turno%er are to be anal!zed and ad%ice is gi%en to the line management on the causes of and reduction in labour turno%er. ' number of de%ice and sub6s!stems are used in the s!stems designs to manage the staffing process. "hese are5

i8 Planning tables and charts2 ii8 'pplication blan3s2 iii8 )nter%ie4s2 i%8 Ps!chological tests2 %8 Reference chec3s2 %i8 Ph!sical e,amination2 %ii8 %iii8 Performance re%ie4s2 and -,it inter%ie4s

III' Training an+ !e,e$o(ment

)t is a comple, process and is concerned 4ith increasing the capabilities of indi%iduals and groups so that the! ma! contribute effecti%el! to the attainment of organizational goals. "his process includes5 7i8 "he determination of training needs of personnel at all le%els/ s3ill training emplo!ee counselling/ and programmes for managerial/ professional and emplo!ee de%elopment2 and 7ii8 #elf6initiated de%elopment acti%ities 7formal education8/ during off6hours 7including attendance at institutes82 reading and participation in the acti%ities of the communit!.

I ' Com(ensation5 <age an+ Sa$ar- A+ministration

)t is concerned 4ith the process of compensation directed to4ards remunerating emplo!ees for ser%ices rendered and moti%ating them to attain the desired le%els of performance. "he components of this process are5 i. 8o& E,a$uation through 4hich the relati%e 4orth of a job is determined. "his is done b! selecting suitable job e%aluation techni:ues/ classif!ing jobs into %arious categories and then determining their relati%e %alue in %arious categories. <age an+ sa$ar- (rogramme 4hich consists of de%eloping and operating a suitable 4age and salar! programme/ ta3ing into consideration certain facts such as the abilit! of the organisation to pa!/ the cost of li%ing/ the suppl! and demand conditions in labour mar3et/ and the 4age and salar! le%els in other firms. (or de%eloping a 4age and salar! programme/ 4age and salar! sur%e!s ha%e to be conducted/ 4age and salar! rates ha%e to be determined and implemented/ and their effecti%eness e%aluated. T#e incenti,e com(ensation ($an includes non6monetar! incenti%es 4hich ha%e to be de%eloped/ administered and re%ie4ed from time to time 4ith a %ie4 to encouraging the efficienc! of the emplo!ee.




T#e (er"ormance a((raisa$ is concerned 4ith e%aluating emplo!ee performance at 4or3 in terms of pre6determined norms. standards 4ith a %ie4 to de%eloping a sound s!stem of re4ards and punishment and identif!ing emplo!ees eligible for promotions. (or this purpose/ performance appraisal plans/ techni:ues and programmes are chal3ed out/ their implementation e%aluated/ and report submitted to the concerned authorities. Moti,ation is concerned 4ith moti%ating emplo!ees b! creating conditions in 4hich the! ma! get social and ps!chological satisfaction. (or this purpose/ a plan for non6financial incenti%es 7such as recognition/ pri%ileges/ s!mbols of status8 is formulated2 a communication s!stem is de%eloped/ morale and attitude sur%e!s are underta3en/ the health of human organisatoin diagnosed and efforts are made to impro%e human relations in the organisation. "he line management has to be ad%ised on the implementation of the plan and on the need/ areas and 4a!s and means of impro%ing the morale of emplo!ees.


' Em($o-ee Ser,ices an+ Bene"its

T#ese are concerne+ /it# t#e (rocess o" sustaining an+ maintaining t#e /or9 "orce in an organisation' T#e- inc$u+e) 7i8 Sa"et- (ro,ision insi+e t#e /or9s#o(' (or this purpose/ policies/ techni:ues/ and procedures for the safet! and health of the emplo!ees are de%eloped2 the line management is ad%ised on the implementation and operation of safet! programmes2 training has to be gi%en to first line super%isors and 4or3ers in safet! practices2 the causes of accidents ha%e to be in%estigated and data collected on accidents2 and the effecti%eness of the safet! programmes e%aluated periodicall!. Em($o-ee counse$$ing is the process through 4hich emplo!ees are gi%en counsel in sol%ing their 4or3 problems and their personal problems. "he line management has to be ad%ised on the general nature of the problems 4hich the emplo!ees ma! face from time to time. Me+ica$ ser,ices include the pro%ision of curati%e and pre%enti%e medical and health impro%ement facilities for emplo!ees/ free or other4ise. ' periodical medical chec36 up of emplo!ees/ training in h!gienic and pre%enti%e measures are underta3en. T#e recreationa$ an+ ot#er /e$"are "aci$ities include entertainment ser%ices li3e film sho4s/ sports and games2 and housing/ educational/ transport and canteen facilities/ free or at subsidized rates. #uitable policies and programmes are framed and efforts are made to administer these ser%ices satisfactoril!. "he effecti%eness of such programmes has also to be e%aluated. (ringe benefits and supplementar! items are made a%ailable to emplo!ees in the form of5 a. Old age sur%i%or9s and disabilit! benefits/ unemplo!ment and 4or3men9s compensation2






b. Pensions/ gratuities and such other pa!ments as are agreed upon death benefits/ sic3ness/ accident and medical care/ insurance/ e,penses of hospitalization/ %oluntar! retirement benefits. c. Paid rest periods/ lunch periods/ 4ash6up time/ tra%el time/ get read! time2 d. Pa!ments for time during 4hich not 4or3 is done paid %acation or bonus in lieu of %acation/ pa!ment for holida!s/ paid sic3 and maternit! lea%e2 and e. Profit6sharing benefits/ contribution to emplo!ees9 pro%ident funds/ emplo!ees educational e,penditure and special 4age pa!ments ordered b! the courts.

I' Em($o-ee Recor+s

)n emplo!ee records complete and up6to6date information is maintained about emplo!ees/ so that these that that is/ the records ma! be Ktilized/ if need be/ at the time of ma3ing transfer.promotions/ gi%ing merit pa!/ or sanctioning lea%e. #uch records include information relating to personal :ualifications/ special interests/ aptitudes/ results of tests and inter%ie4s/ job performance/ lea%e/ promotions/ re4ards and punishments.

II' La&our Re$ations

+! labour relations is meant the maintenance of health! and peaceful labour6management relations so that production.4or3 ma! go on undisturbed. 7i8 7ii8 7iii8 *rie%ance handling polic! and procedures are de%eloped/ after finding out the nature and causes of grie%ances/ and locating the most delicate areas of dissatisfaction. Rules and regulations are framed for the maintenance of discipline in the organisation/ and a proper s!stem of re4ard and punishment is de%eloped. -fforts are made to ac:uire 3no4ledge of/ and to obser%e and compl! 4ith/ the labor la4s of the countr! and ac:uaint the line management 4ith the pro%isions 4hich are directl! concerned 4ith organisatoin. Collecti%e bargaining has to be de%eloped so that all the disputes ma! be settled b! mutual discussions 4ithout recourse to the la4 court. #uch bargaining negotiating and administering agreement relating to 4age lea%e/ 4or3ing conditions and emplo!ee emplo!er relationship.

III' *ersonne$ Researc# an+ *ersonne$ Au+it

T#is area is concerne+ /it#) 7i8 ' s!stematic in:uir! into an! aspect of the board :uestion of ho4 to ma3e more effecti%e an organization9s personnel programmes recruitment/ selection/ de%elopment/ utilization of/ and accommodation to/ human resources2 Procedures and policies and finding submitted to the top e,ecuti%e.




Data relating to :ualit!/ 4ages/ producti%it!/ grie%ances absenteeism/ labour turno%er/ stri3es/ loc36outs/ accidents etc./ 4hich are collected and supplied to the top management so that it ma! re%ie4/ alter or impro%e e,isting personnel policies/ programmes and procedures2 Morale and attitude sur%e!s.



"he dictionar! meaning of :(o$ic-; is a 0plan of action1 and that 0plan1 is a polic!. Polic! and planning are/ therefore/ s!non!mous. :A (o$ic-5; sa!s Flippo, 0is a man6made rule of pre6determined course of action that is established to guide the performance of 4or3 to 4ard the organisatoin objecti%es. )t is a t!pe of standing plan that ser%es to guide subordinates in the e,ecution of their tas3s.1 'ccording to Calhoon Personnel policies constitute guides to action. "he! furnish the general standards or bases on 4hich decisions are reached. "he! furnish the general lies in an organization9s %alues/ philosoph!/ concepts and principles.1 0Policies are statements of the organization9s o%er6all purposes and its objecti%es in the %arious areas 4ith 4hich its operations are concerned personnel/ finance/ and production mar3eting and so on.1 Yoder o&ser,es) 0' polic! is a per6determined/ selected course established as a guide to4ards accepted goals and objecti%esL "he! establish the frame4or3 of guiding principles that facilitate delegation to lo4er le%els and permit indi%idual managers to select appropriate tactics or programmes. )n contrast to these/ personnel policies are those that indi%iduals ha%e de%eloped to 3eep them on the rac3 to4ards their personnel objecti%es. Management policies are de%eloped b! 4or3ing organisatoins to 3eep them on course headed and directed to4ard their organizational objecti%es. "hese define the intentions of the organisatoin and ser%e as guidelines to gi%e consistenc! and continuit! to total operations. "hus/ personnel policies refer to principles and rules of conduct 4hich 0formulate/ redefine/ brea3 into details and decide a number of actions1 that go%ern the relationship 4ith emplo!ees in the attainment of the organisation objecti%es. Personnel policies are5 7i8 "he /e-!stone in the arch of management and the life6blood for the successful functioning of the personnel management because/ 4ithout these policies/ there cannot be an! lasting impro%ements in labour management relations2 7ii8 "he statements of intention indicating and agreement to a general course of actions/ indicating specificall! 4hat the organisation proposes to do and/ thus/ suggests the %alues and %ie4points 4hich dominate the organization9s actions2 and 7iii8 ' ositive declaration and command to an organisation. "he! translate the goals of an organisation into selected routes and pro%ide general guidelines that both prescribe and proscribe programmes 4hich/ in turn/ dictate practices and procedures.

Aims an+ O&%ecti,es o" *ersonne$ *o$icies


' management9s personnel polic! should ha%e t4o t!pes of objecti%es/ general and specific. "he statement of general objecti%es should e,press the top management9s basic philosoph! of human resources and reflect its deep underl!ing con%ictions as to the importance of people in an organisatoin and of the management acti%it! 4hich deals 4ith people. "he statement of specific objecti%es should refer to the %arious acti%ities of personnel administration connected 4ith staffing/ training/ de%eloping/ 4age and salar! administration/ moti%ation/ emplo!ee ser%ices and benefits/ emplo!ee records/ labour relations and personnel research. "he aims of personnel policies should be.are5 7i8 7ii8 7iii8 "o enable an organisatoin to fulfill or carr! out the main objecti%es 4hich ha%e been laid do4n as the desirable minima of general emplo!ment polic!2 "o ensure that its emplo!ees are informed of these items of polic! and to secure their co for their attainment2 "o pro%ide such conditions of emplo!ment and procedures as 4ill enable all the emplo!ees to de%elop a sincere sense of unit! 4ith the enterprise and to carr! out their duties in the most 4illing and effecti%e manner. "o pro%ide and ade:uate/ competent and trained personnel for all le%els and t!pes of management2 "o protect the common interests of all the parties and recognize the role of trade unions in the organisation2 "o pro%ide for a consultati%e participation b! emplo!ees in the management of an organisation and the framing of conditions for this participation/ 4hich ho4e%er shall not ta3e place in technical/ financial or trading polic!? "o pro%ide an efficient consultati%e ser%ice 4hich aims at creating mutual faith among those 4ho 4or3 in the enterprise? a. +! de%eloping management leadership 4hich is bold and imaginati%e and guided and b! moral %alues2 b. +! effecti%el! delegating the human relations aspects or personnel functions to line managers2 c. +! enforcing discipline on the basis of co6operati%e understanding and a humane application of rules and regulations2 and d. +! pro%iding and a humane application of rules and regulations2 and e. 7%iii8 "o establish the conditions for mutual confidence and a%oid confusion and misunderstanding bet4een the management and the 4or3ers/ b! de%eloping suggestion plans/ joint management councils/ 4or3 committees/ etc./ and b! performance appraisal discussions2

7i%8 7%8 7%i8


7i,8 7,8 7,i8 7,ii8

"o pro%ide securit! of emplo!ment to 4or3s so that the! ma! not be distracted b! the uncertainties of their future2 "o pro%ide an opportunit! for gro4th 4ithin the organisation to persons 4ho are 4illing to learn and undergo training to impro%e their further prospectus2 "o pro%ide for the pa!ments of fair and ade:uate 4ages and salar! to 4or3ers so that their health! co6operation ma! be ensured for an efficient 4or3ing of the underta3ing2 "o recognize the 4or3 and accomplishments of the emplo!ee b! offering non6 monetar! incenti%es2 and

7,iii8 "o create a sense of responsibilit!/ on the part of thoseD in authorit!/ for the claims6of emplo!ees as human beings/ 4ho should be guaranteed production of their fundamental rights and offered enough scope de%eloping their potential.

Nee+ "or *ersonne$ *o$ic*ersonne$ (o$icies nee+ &e s(eci"ica$$- create+ &ecause o" t#e "o$$o/ing reasons) 7i8 "he basic need and re:uirements of both an organisation and its emplo!ees re:uire deep thought. "he management is re:uired to e,amine its basic6con%ictions as 4ell as gi%e full consideration to practices in other organisatoins. -stablished policies ensure consistent treatment of all personnel throughout organisatoin. (a%oritism and discrimination are thereb! minimized. an

7ii8 7iii8

' certainl! of action is assured e%en though the top management personnel ma! change. "he tenure of the office of an! manager is finite and limited2 but the organisation continues along 4ith its continuing policies2 and this continuit! of policies promotes stabilit! in an organisation. +ecause the! specif! routes to4ards selected goals/ policies ser%e as standards or measuring !ards for e%aluating performance. "he actual results can be compared 4ith the policies to determine ho4 4ell the members of an organisation ha%e li%ed up to their professional intentions. #ound policies help to build emplo!ee enthusiasm and lo!alt!. "his is especiall! true 4hen the! reflect established principles of fair pla! and justice/ and 4hen the! help people to gro4 4ithin an organisation. Policies are 0control guides for delegated decision ma3ing1. "he! see3 to ensure consistenc! and uniformit! in decisions on problems/ 0that recur fre:uentl! and under similar/ but not identical/ circumstances.9




*rinci($es o" *ersonne$ *o$icies


)n designing personnel policies/ the management must balance the needs/ goals/ objecti%es and %alues of both the emplo!ees and the emplo!ees. #ince these policies are rules of conduct/ the! are based on the follo4ing principles. 7i8 Put the right man in the right place &- a car se$ection an+ ($acement to ma3e sure that he is ph!sicall!/ mentall! and temperamentall! fit for the job he is e,pected to do and that the ne4 emplo!ee ma! be reasonabl! e,pected to de%elop into a desirable emplo!ee/ so that 0there 4ill be the minimum number of s:uare pegs in round holes.1 rain e!eryone for the "o# to #e done, so that the! :ualif! for better jobs/ so that their accomplishments are limited to their ambitions and abilities/ so that the! do their present 4or3 %er! efficientl!. Ma$e the organisation a co%ordinated team through a proper co ordinate and administration of different departments and di%isions/ that there is a minimum amount of friction and unproducti%e or unnecessar! 4or3. "his calls for proper planning and organisation/ control and direction of the entire organisation 4ithout destro!ing the initiati%e of the indi%idual emplo!ee. Supply the right tools and the right conditions of &or$, for the better the tools/ facilities and 4or3ing conditions/ the larger the output produced 4ith the same human effort at lo4er costs so that/ ultimatel! the higher 4ages ma! be paid and more good jobs pro%ided. 'i!e security &ith opportunity, incenti!e, and recognition( )n order that he ma! stic3 to his job/ each emplo!ee should ha%e sound incenti%es for 4or3/ such as fair compensation/ recognition for results achie%ed/ reasonable securit!/ and opportunit! and hope for ad%ancement in the organisation. )oo$ ahead, plan ahead for more and #etter things: #uperior products should be produced and distributed/ and these should be attracti%e and meet the demands of consumers. "his calls for research and a polic! of continuing product planning and de%elopment.






T-(es o" *ersonne$ *o$icies

"here are %arious t!pes of policies. J#ci#m identifies t4o t!pes/ %iz./ functional or organizational grouping of policies2 and the centralized policies. "he its pre6grouping of policies are those policies 4hich are grouped for different categories of personnel/ e.g. for the management dealing 4ith personnel planning/ organizing and controlling or for management dealing 4ith personnel planning/ organizing and controlling or for management concerned 4ith functions of procuring de%eloping and utilizing manpo4er. "he centralized policies are framed for companies 4ith se%eral locations. "he! are formulated at the head office and appl! through out the organisatoin. Policies ma! also be classified as major and minor. Major policies pertain to the o%er6all objecti%es/ procedures and control 4hich affect an organisatoin as a 4hole. "he! co%er in a general 4a! nearl! e%er! phase of an enterprise and its product and methods of financing/ its organizational structure/ plant location/ its mar3eting and personnel. #uch policies are

formulated b! the +oard of Directors/ and a frame4or3 is established 4ithin 4hich major e,ecuti%e fit the remaining policies necessar! to carr!out the major objecti%es of an organisation.

Essentia$ C#aracteristics= Tests o" a Soun+ *ersonne$ *o$ic"he main features of a good personnel polic! are5 7i8 7ii8 "he statement of an! polic! should be definite/ positi%e/ clear and easil! understood b! e%er!one in the organisatoin so that 4hat it progress to achie%e is e%ident. )t should be 4ritten in order to preser%e it against loss/ to stimulate careful consideration before its/ formulation and to pre%ent the promulgation of numerous/ differing and temporar! oral policies from multiple sources. )t must be reasonabl! stable but not rigid/ i.e./ it should be periodicall! re%ie4ed/ e%aluated/ assessed and re%ised and should/ there fore/ be in tune 4ith the challenge of changes in the en%ironment and should ha%e a built6in resilience for adjustment from time to time. )t must be supplementar! to the o%er6all polic! of an organisatoin/ for if departmental polic! is made such as to come into conflict and %iolate the compan! polic!/ it 4ould be tantamount to insubordinations. Peter Druc3er has obser%ed5 0"he policies of an enterprise ha%e to be balanced 4ith the 3ind of reputation an enterprise 4ants to build up 4ith special reference to the social and human needs/ objecti%es and %alues. )t should indicate that the management 3no4s that 4or3ers prefer to deal 4ith the management on an indi%idual basis. )t should recognize the desire of man! 4or3ers for recognition as groups in man! of their relationships. )t should be formulated 4ith due regard for the interests of all the concerned parties the emplo!ees and the public communit!.



7%8 7%i8 7%ii8

7%iii8 )t should be the result of a careful anal!sis of all the a%ailable. 7i,8 )t must pro%ide a t4o64a! communication s!stem bet4een the management and the emplo!ees that the latter are 3ept informed of the latest de%elopments in the organisatoin and the emplo!ers are a4are of the actions and reactions of the emplo!ees on particular issues. )t should be consistent 4ith public polic!/ i.e./ 4ith the spirit rather than the letter of the la4/ so that the intentions and settled course of an organisation are appreciated in terms of public opinion from the standpoint of national/ economic and social justice for the emplo!ees and for the communit! at large. )f should be generall! 3no4n to al interested parties. )t must ha%e not onl! the support of the management but to the co6operation of emplo!ees at the ship floor le%el and in the office.


7,i8 7,ii8

7,iii8 +efore e%ol%ing such a polic!/ trade unions should be consulted. )n matters of industrial relations2 and the role of trade unions should be restricted onl! to these areas. 7,i%8 )t should be progressi%e and enlightened/ and must be consistent 4ith professional practice and philosoph!. 7,%8 )t must ma3e a measurable impact/ 4hich can be e%aluated and :ualified for the guidance of all concerned/ especiall! in the field of the three R9s of personnel management %iz./ recruitment/ detainment/ and retirement.

7,%i8 )t should be uniform throughout the organisatoin/ though/ in the light of local conditions/ slight %ariations ma! be permitted in specific policies relation to staffing/ compensation/ benefits and ser%ices. 7,%ii8 )t should ha%e a sound base in appropriate theor! and should be translate into practices/ terms and peculiarities of e%er! department of an enterprise. 7,%iii8 -,cept in rare cases/ policies should not prescribe detailed procedures.

Sources o" *ersonne$ *o$icies

Policies stem from a 4ide %ariet! of places and people. "he are not created in a %acuum but are based on a fe4 principal sources/ 4hich determine the content and meaning of policies. "here are5 7i8 "he past practice of an organisation2 7ii8 "he pre%ailing practice among sister concerns in the neighborhood and throughout to countr! in the same industr!2 7iii8 "he attitudes/ ideals/ and philosoph! of the +oard of Directors/ top management and middle and lo4er management. 7i%8 "he 3no4ledge and e,perience gained from handling da!6to6da! personnel problems. 7%8 -mplo!ees suggestions and complaints5 7%i8 7%ii8 Collecti%e bargaining programmes2 #tate the national legislation.

7%iii8 Changes in the compan! 7i,8 7,8 )nternational forces/ such as ma! operate in times of 4ars2 "he culture of the plant and its technolog!/ its business en%ironment/ its social and political en%ironment2

7,i8 7,ii8

"he e,tent of unionism2 "he attitudes and social %alues of labour2

7,iii8 "he ethical points of %ie4 or the social responsibilit! of the organisatoin to4ard the public2 and 7,i%8 "he goals of the organisatoin. Minor policies/ on the other hand/ relationships in segment of an organisation.


UNIT II Human Resource *$anning C#aracteristics Nee+ "or ($anning HR* *rocess 8o& ana$-sis 8o& +esign 8o& +escri(tion 8o& s(eci"ication HUMAN RESOURCES *LANNING Im(ortance o" Human Resources
"he concepts of :Man(o/er; or :#uman resource; is meant as 0the total 3no4ledge/ s3ills creati%e abilities/ talents and aptitudes of an organization9s 4or3 force/ as 4ell as the %alues/ attitudes and benefits of an indi%idual in%ol%edLL )t is the sum total of inherent abilities/ ac:uired 3no4ledge and s3ills represented b! the talents and aptitudes of the emplo!ed persons.1 Of all the 0Ms1 in the management 7i.e./ the management of materials/ machines/ methods/ mone!/ moti%e po4er8/ the most important is 0M1 for men or human resources. )n an! organisation/ Human resources are utilized to the ma,imum possible e,tent in order to achie%e indi%idual and organizational goals. 'n organization9s performance and resulting producti%it! are directl! proportional to the :uantit! and :ualit! of its human resources.


0Manpo4er Planning and 0human resource planning1 are s!non!mous. )n the past/ the phrase manpo4er planning 4as 4idel! used2 but not the emphasis is on human resource planning 4hich is more broad6 based. Human resource or manpo4er planning is 0the process b! 4hich a management determines ho4 an organisation should mo%e from its current manpo4er position to its desired manpo4er position. "hrough planning/ a management stri%es to ha%e the right number and the right number and the right 3inds of people at the right places/ at the right time/ to do things 4hich result in both the organisation and the indi%idual recei%ing the ma,imum long6range benefit.1 Coleman has defined human resource or manpo4er planning as 0the process of determining manpo4er re:uirements and the means for meeting those re:uirements in order to carr! out the integrated plan of the organisation. Stainer defines manpo4er planning as 0#trateg! for the ac:uisition/ utilization/ impro%ement/ and preser%ation of an enterprise9s human resources. )t relates to establishing job specifications or the :uantitati%e re:uirements of jobs determining the number of personnel re:uired and de%eloping sources of manpo4er1 Accor+ing to *ic$strom5 #uman-resources ($anning consist o" a series o" acti,ities5 ,i45 7a8 (orecasting estimates based upon the specific future plans of a compan!2 7b8 Ma3ing an in%entor! of present manpo4er resources and assessing the e,tent to 4hich these resources are emplo!ed optimall!2

7c8 'nticipating manpo4er problems b! projecting present resources into the future and comparing them 4ith the forecast of re:uirements to determine their ade:uac!/ both :uantitati%el! and :ualitati%el!2 and 7d8 Planning the necessar! programmes of re:uirements/ selection/ training/ de%elopment/ utilization/ transfer/ promotion/ moti%ation and compensation to ensure that future manpo4er re:uirements are properl! met. Human resources planning are double6edged 4eapon. )f used properl!/ it leads to the ma,imum utilization of human resources/ reduces e,cessi%e labour turno%er and high absenteeism2 impro%es producti%it! and aids in achie%ing the objecti%es of an organisation. (aultil! used/ it leads to disruption in the flo4 of 4or3/ lo4er production/ less job satisfaction/ high cost of production and constant headaches of for the management personnel. "herefore/ for the success of an enterprise/ human resource planning is a %er! important function/ 4hich can be neglected onl! at its o4n peril. )t is as necessar! as planning for production/ mar3eting/ or o4n peril/ it is as necessar! as planning for production/ mar3eting/ or capital in%estment.


"he necessit! of Human resource planning for all organizations is for follo4ing reasons5 7i8 "o carr! on its 4or3/ cash organisation needs personnel 4ith the necessar! :ualifications/ s3ills/ 3no4ledge/ 4or3 e,perience and aptitude for 4or3. "hese are pro%ided through effecti%e manpo4er planning. #ince a large number of persons ha%e to be replaced 4ho ha%e gro4n old/ or 4ho retire/ die or become incapacitated because of ph!sical or mental ailments/ there is a constant need for replacing such personnel other4ise the 4or3 4ould suffer. Human resources planning is essential because of labor turno%er 4hich is una%oidable and e%en beneficial because it arises from factors 4hich are sociall! and economic all! sound such as %oluntar! :uits/ discharges/ marriage/ promotions/ or factors such as seasonal and c!clical fluctuations in business 4hich cause a constant ebb and flo4 in the 4or3 force in man! organisation. )n order to meet the needs of e,pansion programmes 4hich become necessar! because of increase in the demand for goods and ser%ices b! a gro4ing population/ a rising standard of li%ing 4hich calls for larger :uantities of the same goods and ser%ices as also for ne4 gods2 the competiti%e position of a firm 4hich bring it more business arising from impro%ements effected in the slump period2 and the rate of gro4th of the organisation/ human resource planning is una%oidable. "he nature of the present 4or3 force in relation to its changing needs also necessitates are recruitment of ne4 labour. "o meet the challenge of a ne4 and changing technolog! and ne4 techni:ues of production/ e,isting emplo!ees need to the trained or ne4 blood injected in an organisation.







Manpo4er planning is also needed in order to identif! areas of surplus personnel or areas in 4hich there is a shortage of personnel. )f there is a surplus/ it can be redeplo!ed2 and if there is shortage/ it ma! be made good.

)tainer recommends the follo4ing nine strategies for the man po4er planners5 7a8 "he! should collect/ maintain and interpret rele%ant information regarding human resources. 7b8 "he! should report periodicall! man po4er objecti%es/ re:uirements and e,isting emplo!ment and allied features of manpo4er. 7c8 "he! should de%elop procedures and techni:ue to determine the re:uirements of different t!pes of manpo4er o%er period of time form the standpoint of organization9s goals2 7d8 "he! should emplo! suitable techni:ues leading to effecti%e allocation of 4or3 4ith a %ie4 to impro%ing manpo4er utilization2 7e8 "he! should conduct research to determine factors hampering the contribution of the indi%iduals and groups to the organisatoin 4ith a %ie4 to modif!ing or remo%ing these handicaps. 7f8 "he! should de%elop and emplo! methods of economic assessment of human resources reflecting its features as income6generator and cost and accordingl! impro%ing the :ualit! of decisions affecting the manpo4er. 7g8 "he! should e%aluate the procurement/ promotion and retention of the effecti%e human resources2 and 7h8 "he! should anal!ze the d!namic process of recruitment/ promotion and loss to the organ in the control of these processes 4ith a %ie4 to ma,imizing indi%idual and group performance 4ithout in%ol%ing high cost.

*rocess o" Human Resource *$anning

'ction Proceed for Human resource planning process is one of the most crucial comple, and continuing e%aluation Net )n%entor! managerial functions. )tO%erall ma! be rightl! regarded as a ne4 multi6stepprogrammes process of human resource Aong6 for recruiting effecti%eness human of present Range re:uirements planning such as5


Objecti%es for human and Plan goals or resources Deciding objecti%es2

human resources

resources re:uirements

H selecting needed personnel

of human resources planning

7b8 -stimating future organizational structure and manpo4er re:uirements2 7c8 'uditing human resources2 7d8 Planning job re:uirements and job descriptions2 goals/ plans
programmes 7e8 De%eloping a and budgets #hort term &or3 force re:uirements humanb! resource occupational categories job s3ills/ demographic )n%entor! b! occupational categories/ job plan. s3ills/ demographic characteristics Needed replacement or additions Plans for de%eloping/ upgrading/ transferring/ in recruitment/ and selecting needed people


Fig' Human Resource *$anning S-stem +A, -#"ecti!es of .uman /esources Planning Human resource planning fulfils indi%idual/ organizational and national goals2 but/ according to #i3ula/ 0the ultimate mission or purpose is to relate future human resources to future enterprise needs so a to ma,imize the future return on in%estment in human resources. 0)n effect/ the main purpose is one $ of matching or fitting emplo!ee abilities to enterprise re:uirements/ an emphasis on future instead of present arrangement. +0, 1stimating the Future -rgani2ational Structure of Forecasting the Manpo&er /e3uirements "he management must estimate the structure of the organisation at a gi%en point in time. (or this estimate/ the number and t!pe of emplo!ees needed ha%e to be determined. Man! en%ironmental factors affect this determination. "he! include business forecasts/ e,pansion and gro4th/ design and structural changes/ management philosoph!/ go%ernment polic!/ product and human s3ills mi,/ and competition. (orecasting pro%ides the basic premises on 4hich the manpo4er planning is built/ (orecasting is necessar! for %arious reasons/ such as5 7a8 "he e%entualities and contingencies of general economic business c!cles 7such of additional machiner! and personnel/ and a re6allocation of facilities/ all of 4hich call for ad%ance planning of human resources. 7b8 'n e,pansion follo4ing enlargement and gro4th in business in%ol%es the use of additional machiner! and personnel/ and a re6allocation of facilities/ all of 4hich call for ad%ance planning of human resources. 7c8 Changes in management philosophies and leadership st!les. 7d8 "he use of mechanical technolog! 7such as the introduction of automatic controls/ or the mechanization of materials handling functions8 necessitates changes in the s3ills of 4or3ers/ as 4ell as a change in the number of emplo!ees needed. 7e8 @er! often/ changes in the :uantit! or :ualit! of products or ser%ices re:uire a change in the organisation structure. Plans ha%e to be made for this purpose as 4ell.

)t ma! be noted that for purposes of manpo4er planning/ the main dimensions to be ta3en into consideration are5 7i8 0he total n#mber of ersonnel available, this could be obtained from them pa!6rolls and other personnel records/ such as the applications for emplo!ment. "he total number has to be classified on some basis/ such as manual 4or3ers 7i.e./ dail!6rated/ 4ee3l!6rated or monthl!6rated82 clerical emplo!ees/ ministerial staff/ managers and other e,ecuti%es2 specialists and s3illed and uns3illed 4or3ers2 se,64ise distribution etc. 7ii8 0he job!famil-, i.e./ a detailed job6description for each position such as stenographers 4ho ma! belong to %arious departments e.g./ finances mar3eting/ personnel/ public relations/ general administration/ etc. 7i%8 7%8 ,ge distrib#tion of the em lo-ees, a%ailable in the present departments/ sa!s in the age6groups BM6B< !ears2 EM6D> !ears2 DF !ears and abo%e. 1#alification and e2 erience desired, such as a person 4ith > !ears ;M !ears e,perience in a particular branch.job2 and 4hether under6graduate/ post6graduate/ or M+'s or graduates in #cience/ Commerce/ 'rts/ engineering/ or professional diploma holders/ etc2 or 4ith specialized 3no4ledge in the field of mar3eting/ finance/ computer programming or engineering 4or3. "he salar! range/ etc.

7%i8 +C,

Auditing .uman /esource Once the future human resource needs are estimated/ the ne,t step to determine the present #uppl! of manpo4er resources. "his is done through 4hat is called 0#3ills )n%entor!1. ' s3ills in%entor! contains data about each emplo!ee9s s3ills/ abilities 4or3 preferences and other items of information 4hich indicate his o%erall %alue to the compan!.


5o# Analysis 'fter ha%ing decided ho4 man! persons 4ould be needed/ it is necessar! to prepare a job anal!sis/ 4hich records details of training/ s3ills/ :ualification abilities/ e,perience and responsibilities/ etc./ 4hich are needed for a job. ob anal!sis includes the preparation of job descriptions and job specifications. "his has been discussed in the later sections of this chapter.


4e!eloping a .uman /esources Plan "his step refers to the de%elopment and implementation of the human resource plan/ 4hich consists in finding out the sources of labour suppl! 4ith a %ie4 to ma3ing an effecti%e use of these sources. "he first thing/ therefore/ is to decide on the polic! should the personnel be hired from 4ithin through promotional channels or should it be obtained from an outside source. "he best polic! 4hich is follo4ed b! most organisatoins is to fill up higher %acancies b! promotion and lo4er le%el positions b! recruitment from the labour mar3et.


"he responsibilities of the Personnel department are ha%ing the responsibilities in man po4er planning 4hich ha%e been stated b! 3eisler in the follo4ing 4ords5 i. ii. iii. i%. "o assist/ counsel and pressurize the operating management to plan and establish objecti%es2 "o collect and summarize data in total organizational terms and to ensure consistenc! 4ith long6range objecti%es and other elements of the total business6plan2 "o monitor and measure performance/ against the plan and 3eep the top management informed about it2 and "o pro%ide the research necessar! for effecti%e manpo4er of organizational planning.

Man(o/er *$an Com(onent

"he manpo4er plan can be bro3en do4n into three components5 i. ii. iii. (orecasting estimating future needs and stoc3 ta3ing of a%ailable resources in the organisation. Recruitment plan/ to meet the gap bet4een the internal resource and estimated need b! e,ternal recruitment2 "raining and De%elopment plan to utilize full! the human resources of the organisation and to de%elop the potential resources.

De%eloping an organisation structure results in jobs 4hen ha%e to be staffed. 0&or31 is an organisatoin primar! function. "he $basic 4or3 acti%ities9 ma! relate to three categories Data/ People and "hings. Knder data are included s!nthesizing/ coordinating/ anal!zing/ compiling/ computing/ cop!ing and comparing acti%ities. People relate to monitoring/ negotiating/ instructing/ super%ising/ di%erting/ persuading/ spea3ing/ signaling/ ser%ing and ta3ing instructions. "hings are concerned 4ith setting up/ precision 4or3ing/ operating6 controlling/ dri%ing operating/ manipulating/ feeding6off bearing and handling.


' comprehensi%e ' programmes is an essential ingredient of sound personnel management. )t is the major input to forecasting future human resource re:uirements/ job modifications/ job e%aluation/ determination of proper compensation/ an d the 4riting of job descriptions. )t is of fundamental importance to manpo4er management programmes because of the 4ider applicabilit! of its results. "he information pro%ided b! ' is useful/ if not essential/ in almost e%er! phase of emplo!ee relations.


Organisation an+ Man(o/er *$anning) )t is helpful in organizational planning/ for it defined labour needs in concrete terms and co ordinates the acti%ities of the 4or3 force/ and clearl! di%ides duties and responsibilities. Recruitment5 Se$ection) +! indicating the specific re:uirements of each job 7i.e./ the s3ills and 3no4ledge8/ it pro%ides a realistic basic for the hiring/ training/ placement/ transfer and promotion of personnel $+asicall!/ the goals is to match the job re:uirements 4ith a 4or3er9s aptitude/ abilities and interests. )t also helps in charting the channels of promotion and in sho4ing lateral lines of transfer.1 <age an+ Sa$ar- A+ministration) +! indicating the :ualifications re:uired for doing a specified job and the ris3s and hazards in%ol%ed in its performance/ it helps in salar! and 4age administration. ob anal!sis is used as a foundation for job e%aluation. 8o& Re-engineering) ob anal!sis pro%ides information 4hich enables us to change jobs in order to permit their being manner b! personnel 4ith specific characteristics and :ualifications. "his ta3es t4o forms5 (a) &nd#strial engineering activit-, 4hich is concerned 4ith operational anal!sis/ motion stud!/ 4or3 simplification methods and impro%ements in the place of 4or3 and its measurement/ and aims at impro%ing efficienc!/ reducing unit labour costs/ and establishing the production standard 4hich the emplo!ee is e,pected to meet2 and (b) H#man engineering activit-, 4hich ta3es into consideration human capabilities/ both ph!sical and ps!chological/ and prepares the ground for comple, operations of industrial administration/ increased efficienc! and better producti%it!.





Em($o-ee Training an+ Management !e,e$o(ment) ob anal!sis pro%ides the necessar! information to the management of training and de%elopment programmes. )t helps it to determine the content and subject matter of in6training courses. )t also helps in chec3ing application information/ inter%ie4ing/ 4eighing test results/ and in chec3ing references. *er"ormance A((raisa$) )t helps in establishing clear6cut standards 4hich ma! be compared 4ith the actual contribution of each indi%idual. Hea$t# an+ Sa"et-) )t pro%ides an opportunit! for identif!ing hazardous conditions and unhealth! en%ironmental factors so that correcti%e measures ma! be ta3en to minimize and a%oid the possibilit! of accidents.

%i. %ii.


' job anal!sis pro%ides the follo4ing information5 7i8 7ii8 8o& i+enti"ication) )ts title/ including its code number2 Signi"icant c#aracteristics o" a %o&) )ts location/ ph!sical setting/ super%ision/ union jurisdiction/ hazards and discomforts5


<#at t#e t-(ica$ /or9s +oes) #pecific operations and tas3s that ma3e up an assignment/ their relati%e timing and importance/ their simplicit!/ routine or comple,it!/ the responsibilit! or safet! of other for propert!/ funds/ confidence and trust2 <#ic# materia$s an+ e.ui(ment a /or9s uses) Metals/ plastics/ grains/ !arns/ feedings/ remo%ing/ drilling/ dri%ing/ setting up and man! others. Ho/ a %o& is (er"orme+' Nature o" o(eration lifting/ handling/ cleaning/ 4ashing/ feeding/ remo%ing/ drilling/ dri%ing/ setting up and man! others.

7i%8 7%8

7%i8 Re.uire+ (ersonne$ attri&utes) -,perience/ training/ apprenticeship/ ph!sical strength/ co6ordination or de,terit!/ ph!sical demands/ mental capabilities/ aptitudes/ social s3ills2 7%ii8 8o& re$ations#i( E?(erience re.uire+ opportunities for ad%ancement/ patterns of promotions/ essential co6operation/ directions/ or leadership from and for a job. 8o& Ana$-sis 7' Process for Obtaining 'll Pertinent ob (acts8 8o& !escri(tion #tatement containing items such as5 8o& S(eci"ication

' statements of the human re:uirements for doing a job 7a8 ob )dentification 7job title/ 7a8 Ph!sical ma3e6up or location/ occupational code/ Characteristics alternati%e name in use/ name of di%ision/ department and unit 4here it e,ists8 7b8 ob #ummar! 7gi%es a :uic3 7b8 Ps!chological characteristics. capsule e,planation of the contents of a job/ its hazards and discomforts8 7c8 Duties performed 7sa!s the 4hat/ 7c8 Personal characteristics. ho4 and 4h! of a job2 also describes and 4or3er9s responsibilities in regard to custod! of mone!/ super%ision of other 4or3ers/ training of subordinates/ etc.8 7d8 Relation to other jobs 7gi%es ho4 7d8 Responsibilities. man! persons ma! be super%ised8. 7e8 #uper%ision gi%en.ta3en 7helps in 7e8 Other factors of a demographic locating a job in the job hierarch!8. nature 7f8 Machines/ tools/ e:uipment 74hat t!pe of tools.e:uipment material is used8. 7g8 Materials and forms used

7h8 Conditions of 4or3 7i8 Hazards 7accident hazards8


"here are basic steps re:uired for doing a job anal!sis/ %iz/ #tep ;5 Collection of +ac3ground )nformation #tep B5 #election of Representati%e Position to be anal!zed #tep E5 Collection of ob 'nal!sis Data #tep D5 De%eloping a ob Description #tep >5 De%eloping ob #pecification


"he determination of job tas3s/ the concomitant s3ills and abilities necessar! for successful performance/ and the responsibilities inherent in the job can be obtained through such methods or approaches as the follo4ing5 7i8 Personal obser%ation2 7ii8 #ending out :uestionnaires2 7iii8 7i%8 Maintenance of log records2 and Conducting personal inter%ie4s.

0i1 *ersona$ o&ser,ation) "he materials and e:uipment used/ the 4or3ing conditions and probable hazards/ and an understanding of 4hat the 4or3 in%ol%es are the facts 4hich should be 3no4n b! an anal!st. Direct obser%ation is especiall! useful in jobs that consist primaril! of obser%able ph!sical abilit!/ li3e the jobs of draftsman/ mechanic/ spinner or 4ea%er. 0ii1 Sen+ing out @uestionnaire) "he method is usuall! emplo!ed b! engineering consultants. Properl! drafted :uestionnaires are sent out to job6holders for completion and are returned to super%isors. Ho4e%er/ the information recei%ed is often unorganized and incoherent. "hen idea in issuing :uestionnaires is to elicit the necessar! information from job holders so that an! error ma! first be discussed 4ith the emplo!ee and/ after due corrections/ ma! be submitted to the job anal!st. 0iii1 Maintenance o" Log Recor+s) "he emplo!ee maintains a dail! diar! record of duties he performs/ mar3ing the time at 4hich each tas3 is started and finished +ut this s!stem is incomplete/ for it does not gi%e us an! desirable data on super%isor relationship the e:uipment used/ and 4or3ing conditions. Moreo%er/ it is time6consuming. 0i,1 *ersona$ inter,ie/s) ma! be held b! the anal!st 4ith the emplo!ees/ and ans4ers to rele%ant :uestions ma! be recorded. +ut the method is time6consuming and costl!.

"he enthusiasm 4ith 4hich HRM has been embraced b! man! 4or3ing 4ith in the theor! and practice of job design is founded upon its prediction and promise that indi%iduals 4ill be pro%ided 4ith stimulating and enrich jobs. Not onl! 4ill indi%idual emplo!ees perform far more %aried and s3ill jobs but through the resulting :uantitati%e and :ualitati%e performance impro%ements organizations 4ill become far more competiti%e. Hence/ one of the most important components of organizational effecti%eness and economic prosperit! is the attention and details paid to the design of 4or3 tas3s.


"he first approach is a focus/ 4hich are the discrete and autonomous acti%e inter%entions made b! management in the emplo!ment relationship designed to increase performance b!/ for e,ample5 )ncreasing moti%ation Commitment Placating discontent and alienation )mpro%ing the fle,ibilit! of emplo!ee utilization

*osition or 8o& !escri(tion 0I!1

0 ob description1 is an important document 4hich is basicall! descripti%e in nature and contains a statement of job anal!sis. )t pro%ides both organizational information 7location in structure/ authorit! etc.8 and functional information 74hat the 4or3 is8. )t defines the scope of job acti%ities/ major responsibilities/ and positioning of the job in the organisatoin. )t pro%ides the 4or3er/ anal!st/ and super%isor 4ith a clear idea of 4hat the 4or3 must do to meet the demands of the job. 0 ob description1 is different from 0performance assessment.1 "he former concerns such functions as planning/ coordinating/ and assigning responsibilit!/ 4hich the latter concerns/ the :ualit! of performance itself. "hough job description is not assessment/ it pro%ides an important basis for establishing assessment standards and objecti%es. ob Description describes the $jobs9 not the $job holders9 the mo%ement of emplo!ees due to promotion/ :uits/ etc. 4ould create instabilit! to job description if people rather than jobs are described.


ob description has se%eral uses/ such as5 7i8 Preliminar! drafts can be used as a basis for producti%e group discussion/ particularl! if the process starts at the e,ecuti%e le%el.


7ii8 )t aids in the de%elopment of job specifications/ 4hich are useful in planning recruitment/ if training and in hiring people 4ith re:uired s3ills. 7iii8 7i%8 )t can be used to orient ne4 emplo!ees to4ard basic responsibilities and duties. )t is basic document used in de%eloping performance standards.

7%8 )t can be used for job e%aluation/ a 4age and salar! administration techni:ue. ' job description enables the manager to frame suitable :uestions to be as3ed during an inter%ie4. )t is particularl! helpful 4hen the application form is used as a tool for eliminating the unfit personnel. 'ccording to 4erga/ a job description helps us in5 7i8 ob grading and classification 7ii8 "ransfers and promotions 7iii8 7i%8 'djustments of grie%ances2 Defining and outlining promotional steps2

7%8 -stablishing a common understanding of a job bet4een emplo!ers and emplo!ees. 7%i8 7%ii8 7%iii8 7i,8 )n%estigating accidents2 )ndicating fault! 4or3 procedures or duplication of papers2 Maintaining/ operating and adjusting machiner! "ime and motion studies2

7,8 Defining the limits of authorit! 7,i8 7,ii8 7,iii8 7,i%8 7,%8 7,%i8 7,%ii8 )ndicating case of personal merit2 (acilitating job placement. #tudies of health and fatigue #cientific guidance Determining jobs suitable for occupational therap!2 Pro%iding hiring specifications2 and Pro%iding performance indicators.

Com(onents or Contents o" 8o& !escri(tion) A %o& +escri(tion contains t#e "o$$o/ing +ata)
7i8 5o# identification, or -rgani2ational Position 4hich includes the job title/ alternati%e title/ department/ di%ision/ plant and code number of the job. "he job title identifies and designates the job properl!. "he department/ di%ision/ etc./ indicate the name of the

department 4here it is situated 4hether it is the maintenance department/ mechanical shop/ etc. "he location gi%ers the name of the place. "he portion of job description gi%es ans4er to t4o important :uestions5 to 4hat higher le%el job is jobs accountable/ and 4ho is super%ised directl!? 7ii8 5o# summary ser,es t/o im(ortant (ur(oses' (irst it pro%ides a short definition 4hich is useful as additional identification information 4hen a job title is not ade:uate. #econd/ it ser%es as a summar! to orient the reader to4ards an understanding of detailed information 4hich follo4s. )t gi%es the reader a 0:uic3 capsule e,planation1 of the content of a job usuall! in one or t4o sentences. 7iii8 5o# duties and responsi#ilities gi%e a comprehensi%e listening of the duties together 4ith some indication of the fre:uenc! of occurrence or percentage of time de%oted to each major dut!. )t is regarded as the heart of a job. )t tells us 4hat needs to be done? Ho4 it should be done? 'nd 4h! is should be done? )t also describes the responsibilities related to the custod! of mone! the super%ision of 4or3ers and the training of subordinates. 7i%8 /elation of other "o#s: "his helps to locate the job in the organisatoin b! indicating the job immediatel! belo4 or abo%e it in the job hierarch!. )t also gi%es an ideal of the %ertical relationships of 4or3 flo4 and procedures. 7%8 Su(er,ision) Knder it is gi%en the number of persons to be super%ised along 4ith their job titles/ and the e,tent of super%ision in%ol%ed general/ intermediate or close super%ision. 7%i8 Mac#ine5 too$s an+ e.ui(ment define each major t!pe or trade name of the machines and tools and the ra4 materials used. 7%ii8 <or9ing con+itions usua$$- gi,e us in"ormation about the en%ironment in 4hich a job holder must 4or3. "hese include cold/ heat/ dust/ 4etness/ moisture/ fumes/ odour/ oil! conditions etc. obtaining inside the organisation. 7%iii8 Ha4ar+s gi%e us the nature of ris3s to life and limb/ their possibilities of occurrence/ etc.


Opinions differ on ho4 to 4rite job descriptions. #ome e,perts are of the %ie4 that these should be 4ritten in detail and in terms of 4or3 flo4. Others feel that these should be 4ritten in terms of goals or result to be achie%ed/ in other 4ords as performance standards 7or 4hat is popularl! 3no4n as 0management b! objecti%es18 the pre%alent thin3ing is that job $descriptions should be 4ritten9 in terms of duties and responsibilities/ i.e./ in terms of functions performed. ob descriptions are 4ritten b! Personnel Departments or its representati%es. 'lthough there is no set 4a! of 4riting of job description/ the follo4ing pattern is fairl! t!pical/ and used b! man! companies.

7i8 ' paragraph is allocated to each major tas3 or responsibilit!. 7ii8 Paragraphs are numbered and arranged in a logical order/ tas3 se:uence or importance. 7iii8 #entences are begun 4ith an acti%e %erb. e.g. 0t!pes letters.1 0inter%ie4s the candidates/ 0collects/ sorts out/ routes and distributes mail.1 7i%8 'ccurac! and simplicit! are emphasized rather than an elegant st!le.

7%8 +re%it! is usuall! considered to he important but is largel! conditioned b! the t!pe of job being anal!zed and the need for accurac!. 7%i8 -,amples of 4or3 performed are often :uoted and are useful in ma3ing the job description e,plicit. 7%ii8 ob descriptions/ particularl! 4hen the! are used as bases for training/ often incorporate details of the faults 4hich ma! be encountered in operator tas3s and safet! chec36points. 7%iii8 #tatements of opinion/ such as 0dangerous striations are encountered/ 0should be a%oided . 7i,8 &hen job descriptions are 4ritten for super%isor! jobs/ the main factors 7such as manning/ cost control/ etc.8 are identified and listed. -ach factor is then bro3en do4n into a series of elements 4ith a note on the super%isor9s responsibilit!. "he 0ritish 6nstitute of Management Publication adds four more guidelines5 7i8 *i%e a clear/ concise and readil! understandable picture of the 4hole job2 7ii8 Describe in sufficient detail each of the main duties and responsibilities2 7iii8 7i%8 )ndicate the e,tent of direction recei%ed and super%ision gi%en. -nsure that a ne4 emplo!ee understands the job if he reads the job description.


"he job specification ta3es the job description and ans4ers the :uestion 0&hat human traits and e,perience are needed to do the job 4ell?1 it tells 4hat 3ind of person to recruit and for 4hat :ualities that person should be tested. ob specifications translate the job description into terms of the human :ualifications 4hich are re:uired for a successful performance of a job. "he! are intended to ser%e as a guide in hiring and job e%aluation. 's a guide in hiring/ the! deal 4ith such characteristics as are a%ailable in an application ban3/ 4ith testing inter%ie4s/ and chec3ing of references. ob specification is de%eloped 4ith the co6operation of the personnel department and %arious super%isors in the 4hole organisation. "he personnel department co6ordinates the 4riting of job descriptions and job specifications and secures agreement on the :ualifications re:uired. "hese specifications relate to5

a8 *#-sica$ c#aracteristics5 4hich include health/ strength/ endurance/ age6range/ bod! size/ height/ 4eight/ %ision/ %oice/ poise/ e!e/ hand and foot co6ordination/ motor co6 ordination/ and colour discrimination. b8 *s-c#o$ogica$ c#aracteristics or special aptitude 4hich includes such :ualities as manual de,terit!/ mechanical/ aptitude/ ingenuit!/ judgment/ resourcefulness/ anal!tical abilit!/ mental concentration and alertness. c8 *ersona$ c#aracteristics or traits o" tem(erament5 such as personal appearance/ good and pleasing manners/ emotional stabilit!/ aggressi%eness or submissi%eness/ e,tro%ersion or intro%ersion/ leadership/ cooperati%eness/ initiati%e and dri%e/ s3ill in dealing 4ith others/ unusual sensor! :ualities of sight/ smell hearing/ adaptabilit!/ con%ersational abilit!/ etc. d8 Res(onsi&i$ities5 4hich include super%ision of others/ responsibilit! for production/ process and e:uipment2 responsibilit! for the safet! of others2 responsibilit! for generating confidence and trust5 responsibilit! for pre%enting monetar! loss. e8 Ot#er "eatures o" +emogra(#ic natures5 4hich are age/ se,/ education/ e,perience and language abilit!. ob specifications are mostl! based on the educated guesses of super%isors and personnel managers. "he! gi%e their opinion as to 4ho do the! thin3 be considered fro a job in terms of education/ intelligence/ training etc. one of he most e,tensi%e 0judgmental1 approaches to de%eloping job specification is contained in a Dictionar! or Occupational "itles/ published b! the K.#. "raining and -mplo!ment ser%ice. )ts description for a Personnel Managers9 job is as follo4s5 0Personnel Manager5 Director Personnel2 manager/ emplo!ee relations2 Personnel super%isor. 0Plans and carries out policies relating to all phases of personnel acti%ities.


UNIT III T#e Se$ection *rocess *$acement an+ in+uction Training an+ +e,e$o(ment *romotions !emotions Trans"ers Se(aration' THE SELECTION *ROCESS
SELECTION *ROCE!URE )n the Human Resource Management the selection procedure is concerned 4ith securing rele%ant information about an applicant. "his information is secured in a number of steps or stages. "he objecti%e of selection process is to determine 4hether an applicant meets the :ualifications for a specific job and to choose the applicant 4ho is molt li3el! to perform 4ell in that job. "he hiring procedure is not a single act but it is essentiall! a series of methods or steps or stages b! 4hich additional information is secured abut the applicant. 't each stage/ facts ma! come to light 4hich ma! lead to the rejection of the applicant. ' procedure ma! be compared to a series of successi%e hurdles or barriers 4hich an applicant must cross. "hese are intended as screens/ and the! are designed to eliminate an un:ualified applicant at an! point in the process. "his techni:ue is 3no4n as the successi%e hurdles techni:ue. Not all selection processes include all these hurdles. "he comple,it! of a process usuall! increases 4ith the le%el and responsibilit! of the position to be filled. 'ccording to Yoder/ 0the hiring process is of one or man! $go/ no6go9 gauges. Candidates are screened b! the application of these tools. Nualified applicants go on to the ne,t hurdle/

4hile the un:ualified are eliminated. 0 "hus/ an effecti%e selections programme is a non6random process become those selected ha%e been chosen on the basis of the assumption that the! are more li3el! to be 0better1 emplo!ees than those 4ho ha%e been rejected. #election processes or acti%ities t!picall! follo4 a standard pattern/ beginning 4ith an initial screening inter%ie4 and concluding 4ith the final emplo!ment decision. "he traditional selection process includes5 preliminar! screening inter%ie42 completion of application form2 emplo!ment tests2 comprehensi%e inter%ie42 bac3ground in%estigations ph!sical e,amination and final emplo!ment decision to hire.

On formulating a selection polic!/ due consideration should be gi%en to organizational re:uirements as 4ell as technical and profession dimensions of selection procedures. Coder and others ha%e suggested goals/ technological issues/ cost factors/ e,tent of formalit!/ etc. )n 4ords/ an effecti%e polic! must assert 04h!1 and 04hat1 aspects of the organizational objecti%es1


"he selection procedure adopted b! an organization is mostl! tailor made to meet its particular needs. "he thoroughness of the procedure depends upon three factors. (irst, the nature of selection/ 4hat her fault! or safe/ because of fault! selection affects not onl! training period that the! ma! be needed/ but also results in hea%! e,penditure on the ne4 emplo!ee and the loss that ma! be incurred b! the organization in case the job6occupant fails on his job. )econd, the polic! of the compan! and the attitude of the management5 's a practice sonic companies usuall! hire more than the actual number needed 4ith a %ie4 to remo%ing the unfit persons from the jobs. 0hird, the length of the probationar! or the trial period. "he longer the period/ the greater the uncertaint! in the minds of the selected candidate about his future. "he hiring process can be successful/ if the follo4ing preliminar! re:uirements are satisfied. 7a8 #ome one should ha%e the authorit! to hire. "his authorit! comes fro the emplo!ment re:uisition/ as de%eloped b! an anal!sis of the 4or36load and 4or3 force. 7b8 "here must be sonic standard or personnel 4ith 4hich a prospecti%e emplo!ee ma! be compared/ i.e./ there should be a%ail able/ beforehand/ a comprehensi%e job description and job specifications as de%eloped b! a job 'nal!sis. 7c8 "here must he a sufficient number of applicants from 4hom the re:uired number of emplo!ees ma! be selected.


"here is no shortcut to an accurate e%aluation of a candidate. "he hiring procedures are/ therefore/ generall! long and complicated. Man! emplo!ers ma3e use of such techni:ues and pseudo6sciences as phrenolog!/ ph!siognom!/ astrolog!/ grapholog!/ etc.. 4hile coming to hiring decisions. Ho4e%er/ in modern times. "hese are considered to be unreliable measures. "he follo4ing is a popular procedure though it ma! be modified to suit indi%idual situation5 ;. Reception or preliminar! inter%ie4 or screening. B. 'pplication blan3 a fact6finder 4hich helps one in learning bout an applicant of life histor!. E. ' 4ell conducted inter%ie4 to e,plore the facts and get at the attitudes of the applicant and his famil! to the job. D. ' ph!sical e,amination health and stamina are %ital factors in success2 >. Ph!siological testing to e,plore the surface area and get an objecti%e loo3 at a candidate suitabilit! for a job. F. ' reference chec32 G. (inal selection appro%al b! manager2 and communication of the decision to the candidate.


'fter an offer of emplo!ment the first stage in procurement function is placement of the indi%idual on the ne4 job and orienting him to the organisation. 0Placement1 ma! be defined as the determination of the job to 4hich an accepted candidate is to be assigned/ and his assignment to that job. )t is a matching of 4hat the super%isor as reason to thin3 he can do 4ith a job demands/ it is a matching of 4hat he imposes and 4hat he offers in the form of pa! roll/ companionship 4ith others/ promotional possibilities etc. ' proper placement of a 4or3er 4ill ha%e impact on5 6 6 6 6 Reduces emplo!ee turno%er 'bsenteeism 'ccident rates )mpro%es morale

'fter selection/ the emplo!ees 4ill be generall! put on a probation period/ 4hich ma! range from one to t4o !ears/ then after his emplo!ment ma! be regularized/ pro%ided that during this period his 4or3 been found to be satisfactor!.


)nduction is a techni:ue b! 4hich a ne4 emplo!ee is rehabilitated into the changed surroundings and introduced to the practices/ policies and purpose of the organisation.

"o a%oid the insecure feeling of a ne4 comer joins in organisation. "o de%elop a strong feeling about the 4or3 place and 4or3 en%ironment. "o de%elop defensi%e beha%iour "o de%elop courageous "o ma3e them a self confident person )t helps to minimize the realit! shoc3 "he importance of induction e,pected b! the ne4 comer ma! be as follo4ed ;. Opportunities for ad%ancement. B. #ocial status and prestige reorganization b! others. E. Responsibilit!. D. Opportunities to use special aptitudes and educational bac3ground. >. Challenge and ad%enture. F. Opportunit! to be creati%e and original G. Aucrati%e #alar!


'n! organization has an obligation to ma3e integration of the indi%idual into the organization as smooth and an,iet! free as possible. "his can be achie%ed through a formal or informal placement orientation programme depends on the size of the organisatoin and the comple,it! of the indi%idual9s ne4 en%ironment. "here is no model induction procedure but each industr! de%elops their o4n procedures as per its needs. "he procedure should basicall! follo4 theses steps5 7i8 "he ne4 person needs time and a place to report to 4or3. 7ii8 )t is %er! important that the super%isor should 4elcome the emplo!ee to the organization. 7iii8 "he administrati%e 4or3 li3e %acations/ probationar! period/ medical absences/ and suggestion s!stem should be co%ered. 7i%8 Department orientation li3e get6ac:uainted tal3/ introduction to the department/ departmental functional e,planations and job instructions should be informed.

7%8 @erbal e,planations must be supplemented b! %ariet! of printed materials/ emplo!ees hand boo3s/ manuals/ fl!ers/ house journals/ picture stories/ comics/ and cartoons/ pamphlets/ etc.

Em($o-ee Training
"o impro%e the effecti%eness of e%er! organisatoin the! need to ha%e 4ell trained and e,perienced people to perform the acti%ities that ha%e to be done. )f the current or potential job Ooccupant can meet this re:uirement/ training is not important. +ut 4hen this is not the case/ it is necessar! to raise the s3ill le%els and increase the %ersatilit! and adaptabilit! of emplo!ees. )nade:uate job performance or a decline in producti%it! or changes resulting out of job redesigning or a technological brea36through re:uire some t!pe of training and de%elopment efforts. 's the jobs become more comple,/ the importance or emplo!ee de%elopment also increases. )t an rapidl! changing societ!/ emplo!ee training and de%elopment is not onl! an acti%it! that is desirable but also an acti%it! that an organisatoin must commit resources to if it si to maintain a %iable and 3no4ledgeable 4or3 force. $"raining9/ $education9 and de%elopment9 are three terms fre:uentl! used. On the face of it/ there might not appear an! difference bet4een them/ but 4hen a deep thought is gi%en/ there appear some differences bet4een them. )n all $training there is some $education9 and in all $education9 there is some $training9. 'nd the t4o processes cannot be separated from $de%elopment9. Precise definitions are not possible and can be misleading2 but different persons ha%e used these acti%ities in different 4ages.


"raining is a process of learning a se:uence of programmed beha%iour. )t is application of 3no4ledge. )t gi%es people an a4areness of the rules and procedures to guide their beha%iour. )t attempts to impro%e their performance on the current job or prepare them for an intended job. De%elopment is a related process it co%ers not onl! those acti%ities 4hich impro%e job performance but also those 4hich bring about gro4th of the personalit!2 help indi%iduals in the progress to4ards maturit! and actualization of their potential capacities so that the! become not onl! good emplo!ees but better men and 4omen.


0"raining is short6term process utilizing a s!stematic and organized procedure b! 4hich non6managerial personnel learn technical 3no4ledge and s3ills for a definite purpose. De%elopment is a long6term educational process utilizing a s!stematic and organized procedure b! 4hich managerial personnel learn conceptual and theoretical 3no4ledge for general purpose.1 0"raining1 refers onl! to instruction in technical and mechanical operations/ 4hile 0de%elopment1 refers to philosophical and theoretical educational concepts. "raining is designed for non6managers/ 4hile de%elopment in%ol%es managerial personnel. )n the 4ords of Campbell/ 0training course is t!picall! designed for a short6term/ stated set purpose/ such as the operation of some piece7s8 of machiner!/ 4hile de%elopment in%ol%es a broader education for long6term purposes.1 "raining and de%elopment differ in four 4a!s5

a8 0&hat1 is learned2 b8 0&ho1 is learning2 c8 0&h!1 such learning ta3es place2 and d8 0&hen1 learning occurs.


"he need for the training of emplo!ees 4ould be clear from the obser%ations made b! the different authorities. i. ii. iii. i%. %. %i. %ii. "o )ncrease Producti%it! b! the performance. "o )mpro%e Nualit! b! good relationship bet4een emplo!er and emplo!ee "o Help a Compan! fulfill its (uture Personnel Needs "o )mpro%e Organizational Climate. "o )mpro%e Health and #afet! Obsolescence Pre%ention Personal *ro4th

Nee+ "or training arises "rom more t#an one reason $i9e)
7i8 'n increased use of technolog! in production2 7ii8 Aabour turno%er arising form normal separations due to death or ph!sical incapacit!/ for accidents/ disease/ superannuation %oluntar! retirement/ promotion 4ithin the organization and change of occupation or job2 7iii8 Need for additional hands to cope 4ith an increased production of goods and ser%ices2 7i%8 -mplo!ment of ine,perienced/ ne4 or badl! labour re:uires detailed instruction for an effecti%e performance of a job. 7%8 Old emplo!ees need training to enable them to 3eep abreast of the changing methods/ techni:ues and use of sophisticated tools and e:uipment2 7%i8 Need for enabling emplo!ees to do the 4or3 in amore effecti%e 4a!/ to reduce learning time/ reduce super%ision time/ reduce 4aste and spoilage of ra4 material and produce :ualit! goods/ and de%elop their potential. 7%ii8 Need for reduction grie%ances and minimizing accident rates2 7%s Need for maintain the %alidit! of an organization as a 4hole and raising the morale of its emplo!ees.

Im(ortance o" Training


"raining is the corner6stone of sound management/ for it ma3es/ emplo!ees more effecti%e and producti%e. )t is acti%el! and intimatel! connected 4ith all the personnel or managerial acti%ities. )t is an integral part of the 4hole management programme/ 4ith all its man! acti%ities functionall! inter6related. "raining is a practical and %ital necessit! because/ apart from the other ad%antages mentioned abo%e/ it enables emplo!ees to de%elop and rise 4ithin the organisation/ and increase their 0mar3et %alue1/ earning po4er and job securit!. )t enable management to resol%e sources of friction arising from parochialism/ to bring home to the emplo!ees the fact that the management is not di%isible. )t moulds the emplo!ees9 attitudes and help them to achie%e a better co 4ith the comp an! and a greater lo!alt! it it. "he management is benefited in the senseD that higher standards of :ualit! are achie%ed2 a satisfactor! organizational #tructure is built up2 authorit! can be delegated and stimulus for progress applied to emplo!ees. "raining/ moreo%er/ heightens the morale of the emplo!ees/ for it helps in reducing dissatisfaction/ complaints/ grie%ances and absenteeism/ reduces the rate of turno%er. (urther/ trained emplo!ees ma3e a better and economical use of materials and e:uipment/ therefore 4astage and spoilage are lessened/ and the need for constant super%ision is reduced.

T#e im(ortance o" training #as &een e?(resse+ in t#ese /or+s)

0"raining is a 4idel! accepted problem6sol%ing de%ice. )ndeed/ our national superiorit! in manpo4er producti%it! can be attributed in no small measures to the success of our educational and industrial training programmes. "his success has been achie%ed b! a tendenc! in man! :uarters to regard training as a panacea.1

Res(onsi&i$it- "or Training

"raining is the res onsibilit- of four main groups5 7a8 "he top management/ 4hich frames the training polic!2 7b8 "he personnel department/ 4hich plans/ establishes and e%aluated instructional programmes2 7c8 #uper%isors/ 4ho implement and appl! de%elopmental procedure2 and 7d8 -mplo!ees/ 4ho pro%ide feedbac3/ re%ision and suggestions for corporate educational endea%ours.

Creation o" a !esire "or Training

"he emplo!ees can be persuaded to be interested in training programmes in one of the follo4ing three 4a!s5 ;. "he! 4ill respond programmes in%ol%ing changed beha%iour if the! belie%e that the resulting modification in the beha%iour is in their o4n interest/ that the! 4ill recei%e personal benefits as a result of their ne4 beha%iour.


B. "rainees 4ill change their beha%ior if the! became a4are of better 4a!s of performing 7more producti%e or other4ise more satisfactor! 4a!s8 and gain e,perience in the ne4 pattern of beha%iour so that it becomes their normal manner of operation. E. ' trainee ma! change his beha%iour in compliance 4ith the forced demands of his superiors or others 4ith more po4er than the trainee possesses.

*rinci($es or Conce(ts o" Training

#ince training is a co process and not a one shot affair/ and since it consumes time and entails much e,penditure/ it is necessar! that a training programme or polic! should be prepared 4ith great through and care/ for it should ser%e the purposes of the establishment as 4ell as the needs of emplo!ees. ' successful training programme presumes that sufficient care has been ta3en to disco%er areas in 4hich it is needed most and to create the necessar! en%ironment for its conduct. "he selected trainer should be one 4ho clearl! understands his job and has professional e,pertise/ has an aptitude and abilit! for teaching/ possesses a pleasing personalit! and a capacit! for leadership/ is 4ell %ersed in the principles and methods of training/ and is able to appreciate the %alue of training in relation to an enterprise. Certain general principles need be considered 4hile organizing a training programme. (or e,ample5 ;. "rainees in 4or3 organisation tend to be most responsi%e to training programmers 4hen the! feel the need to learn/ i.e./ the trainee 4ill be more eager to learn training if training promises ans4ers to problems or needs he has an emplo!ee. "he indi%idual 4ho percei%es training as the solution/ to problems 4ill be more 4illing to enter into training programmes that 4ill the indi%idual 4ho is satisfied 4ith his present performance abilities. B. Aearning sin roe effecti%e 4here there is reinforcement in the form of re4ards and punishments/9 i.e./ indi%idual do things that gi%e pleasure and a%oid things that gi%e pain. )n other 4ords/ after an action/ if satisfies is recei%ed/ the action 4ill be repeated. )f no satisfaction is recei%ed/ the action 4ill not be repeated. E. )n the long run/ a4ards tend to be more effecti%e for changing beha%iour and increasing one9s learning than punishments. D. Re4ards for the application of learned beha%iour are most useful 4hen the! :uic3l! follo4 the desired performance. >. "he larger the re4ard for good performance follo4ing the implementation of learned beha%iour/ the greater 4ill be the reinforcement of the ne4 beha%iour.


F. Negati%e reinforcement/ through application of penalties and hea%! criticism follo4ing inade:uate performance/ ma! ha%e a disrupti%e effect upon the learning e,perience of the trainee than positi%e reinforcement. G. "raining that re:uests the trainee to ma3e changes in his %alues/ attitudes/ and social beliefs/ usuall! achie%es better results if the trainee is encouraged to participate. =. "he trainee should be pro%ided 4ith $feedbac39 on the progress he is ma3ing in utilizing the training he has recei%ed. 's Miller has stated/ 0)f a person 4ith the re:uired abilities is to impro%e his performance/ he must 7i8 3no4 4hat aspect of his performance is not up to par2 7ii8 3no4 precisel! 4hat correcti%e actions he must ta3e to impro%e his performance.1 "he feedbac3 should be fast and fre:uent/ especiall! for the lo4er le%el jobs 4hich are often routine and :uic3l! completed. <. "he de%elopment of ne4 beha%iour norms and s3ills is facilitated through practice and repetition. #3ills that are practiced often are better learned and less easil! forgotten. ;M. "he training material should be made as meaningful as possible/ because if the trainee understands the general principles under l!ing 4hat is being taught/ he 4ill properl! understand it better than if he 4ere just as3ed to memorize a series of isolated steps.

Ste(s in Training *rogrammes

0"raining programmes are a costl! affair/ and a time consuming process. "herefore/ the! need to be drafted %er! carefull!. Ksuall! in the organisation of training programmes/ the follo4ing steps are considered necessar!2 ;. Disco%ering or identif!ing the training needs. B. *etting read! for the job. E. Preparation of the learner D. Presentation of operations and 3no4ledge. >. Performance tr!6out F. (ollo46up and -%aluation of the programme.

3' !isco,ering or I+enti"-ing Training Nee+s

)dentification of training needs must contain three t!pes of anal!ses organizational anal!sis/ operations anal!sis/ and man anal!sis. -rgani2ational analysis centers primaril! upon the determination of the organization9s goals. )ts resources and the allocation of the resources as the! relate to the organizational goals. "he anal!sis of the organizational goals establishes the frame4or3 in 4hich/ training needs can be defined more clearl!.


-perations analysis focuses on the tas3 or job regardless of the emplo!ee doing the job. "his anal!sis includes the determination of the 4or3er must do the specific 4or3er beha%iour re:uired if the job is to be performed effecti%el!. Man analysis re%ie4s the 3no4ledge/ attitudes and s3ills of the incumbent in each position and determines 4hat 3no4ledge/ attitudes or s3ills he must ac:uire and 4hat alterations in his beha%iours he must ma3e if he is to contribute satisfactor! to the attainment of organizational objecti%es. &ill +erlines and &illiam McAarne! sa! that disco%ering training needs in%ol%es fi%e tas3s5

0a1 Tas9 !escri(tion Ana$-sis

;. Aist the duties and responsibilities or tas3s of the job under consideration/ using the ob Description as a guide. B. Aist the standards of 4or3 performance on the job.

0&1!etermining Training Nee+s

;. Compare actual performance against the standards. B. Determine 4hat parts of the job are gi%ing the emplo!ees trouble 4here is he falling do4n in his performance? E. Determine 4hat 3ind of training is needed to o%ercome the specific difficult! or difficulties.

7i8 6dentifying Specific Pro#lems: #uch problems are5 producti%it!/ high costs/ poor material control/ poor :ualit!/ e,cessi%e scrap and 4aste/ e,cessi%e labor6management troubles/ e,cessi%e grie%ances/ e,cessi%e %iolation of rules of conduct/ poor discipline/ high emplo!ee turno%er and transfers/ e,cessi%e absenteeism/ accidents/ e,cessi%e fatigue/ fumbling discouragement/ struggling 4ith the job2 standards of 4or3 performance not being met/ bottlenec3s in production/ deadlines not being met/ and dela!ed production. Problems li3e these suggest that training ma! be necessar!. (or this the tas3 the 4or3ers should be closel! obser%ed and the difficulties found out. 7ii8 Anticipating 6mpending and Future Pro#lems: bearing on the e,pansion of business/ the introduction of ne4 products/ ne4 ser%ices/ ne4 designs/ ne4 plant/ ne4 technolog! and of organizational changes concerned 4ith manpo4er in%entor! present and future needs. 7iii8 Management /e3uests: the super%isors and managers ma3e specific re:uest for setting training programmes/ though this method is simple and a correct e%aluation of the emplo!ee9s performance deficiencies can be made/ but often such recommendations ma!be built on fault! assumptions2 and re:uests ma! not coincide 4ith each other or organizational goals.

7i%8 6nter!ie&ing and -#ser!ing the Personnel on the 5o#: )nter %ie4ing personnel and direct :uestioning and obser%ation of the emplo!ee b! his superiors ma! also re%eal training needs. 7%8 Performance Appraisal: 'n anal!sis of the past performance records of the perspecti%e trainee and comparing his actual performance 4ith the target performance ma! pro%ide clues to specific interpersonal s3ills that ma! need de%elopment. 7%i8 7uestionnaires: Nuestionnaires ma! be used for eliciting opinions of the emplo!ees on topics li3e communication/ satisfaction/ job characteristics/ and their attitude to4ards 4or3ing conditions/ pa!/ and promotion policies tec. "hese 4ill re%eal much information about 4here an emplo!ee9s s3ills and 3no46ledge are deficient. 7%ii8 Chec$list: "he use of chec3list is a useful supplement to inter%ie4s and obser%ations. "hrough it/ more reliable information can be obtained and the data got are :uantifiable. "his facilities e%aluation the training programmer9s effecti%eness. 7%iii8 Mora$e an+ attitu+e Sur,e-s) 'n occasional personnel ma! be conducted to forecast future promotions/ s3ill re:uirements/ and merit rating/ to initiate informal discussions and an e,amination of records and statistics regarding personnel/ production/ cost/ rejects and 4astages. 'll these generall! re%eal the potential problems to be tac3led through training programmes. 7i,8 )n addition/ tests of the interpersonal s3ills through handling of posed cases and incidents ma! also re%eal training needs.

Disco%ering or identif!ing training needs 7"hrough organizational operations manpo4er anal!sis/ etc.

*etting read! for the job Preparation of the learner 7Create desire H prepare accordingl!8 Presentation of operations and 3no4ledge 7'pplications of "R* techni:ues8 Performance "r!6out (ollo46up 7Re4ards and feedbac38

Fig' Se.uence o" Training *rogramme Su((ort Materia$s "or Training


' %ariet! of tools and e:uipment are utilized to impart effecti%e training. "hese are5 7a8 Aectures 7learning b! hearing supplemented b! reading assignment82 conferences/ seminars and staff6meetings 7learning b! participation82 demonstrations 7learning b! seeing82 and short courses/ through coaching. 7b8 Role6pla!ing 7learning b! doing8 and job rotation 7learning b! e,perience8. 7c8 7Case or Project studies and problem6sol%ing sessions 7learning b! personal in%estigation.8 7d8 Kse of pamphlets/ charts/ brouches/ boo3lets/ handboo3s/ manuals/ etc. 7e8 *raphs/ pictures/ boo3s/ slides/ mo%ie projectors/ film strips/ tape recorders etc. 7f8 Posters/ displa!s/ notice and bulletin boards. 7g8 Reading rooms and libraries 4here specified boo3s and journals are maintained for reference and use. 7h8 Knder6stud! and %isits to plants. 7i8 Correspondence courses under 4hich 3no4ledge about business la4/ statistics/ industrial management/ mar3eting/ office procedures/ retailing and man! other similar subjects ma! be imparted. 7j8 "eaching machines. 738 Membership of professional or trade associations/ 4hich offer ne4 techni:ues and ideas to their members.

Training Met#o+s = Tec#ni.ues

"he forms and t!pes of emplo!ee training methods are inter6related. )t s difficult/ if not impossible/ to sa! 4hich or the methods or combination of methods is more useful than the other. )n fact/ methods are multi6faceted in scope and dimensions/ and each is suitable for a particular situation. "he methods of training as follo4s5 On6the6 ob6"raining 7O "8 ob )nstruction "raining 7 )"8

@estibule "raining "raining b! e,perienced 4or3men Classroom or Off6the6 ob6"raining li3e 6 6 lecture conferences

6 6 6 6 6

group discussion. case studies role pla!ing programme instruction "6group training

C#art C$assi"ication o" Training Met#o+s

7a8 On the job 7c8 Demonstration and -,amples 7e8 'pprenticeship 7g8 Other training methods

7b8 @estibule

7d8 #imulation

7f8 Classroom Methods

Aectures Conference Case stud! Role6planning


'udio%isual 'ids

On6the6 ob6 "raining 7O "8 "here are a %ariet! of O " methods/ such as 6 6 6 6 6 coaching under stud! job rotation internship apprenticeship

Programmed )nstruction

"rainee learns of the actual e:uipment in use and in the true en%ironment of his job.


#econdl!/ it is highl! economical since no additional personnel or facilities are re:uired for training. "hirdl!/ the trainee learns the rules/ regulations and procedures b! obser%ing their da!6to6 da! applications. He can/ therefore/ be easil! sized up b! the management. (ourthl!/ this t!pe of training is a suitable alternati%e for a compan! in 4hich there are almost as man! jobs as there are emplo!ees. (inall!/ it is most appropriate for teaching the 3no4ledge and s3ills 4hich can be ac:uired in a relati%el! short period/ sa!/ a fe4 da!s or 4ee3s.

)nstruction is often highl! disorganized.

8o& Instruction Training 08IT1

"his method is %er! popular in the #tates for preparing super%isors to train operati%es. "he )" method re:uires s3illed trainers/ e,tensi%e job anal!sis/ training schedules/ and prior assessment of the trainee9s job 3no4ledge. "his method is also 3no4s as 0training through step6 b!6step learning.1 )t in%ol%es listing all necessar! steps in the job/ each in proper se:uence. "hese steps sho4 4hat is to be done. 'long side such step is also listed a corresponding 0Ie! point1/ 4hich sho4 ho4 it is to be done and 4h!. "he job instruction training process is in four steps5 7i8 "he preparation of the trainee for instructor. "his includes putting him at case/ emphasizing the importance of the tas3 and gi%ing a general description of job duties and responsibilities. 7ii8 Presentation of the instructions/ gi%ing essential information in a clear manner. "his includes positioning the trainee at 4or3 site/ telling and sho4ing him each step of the job/ stressing 4h! and ho4 each step is carried out as it is sho4n. 7iii8 Ha%ing the trainee tr! out the job to sho4 that he has understood the instructions/ if there are an! errors the! are corrected2 and 7i%8 -ncouraging the :uestion and allo4ing the trainee to 4or3 along and the trainer follo4s up regularl!. "he )" method pro%ides immediate feedbac3 on results/ :uic3 correction of errors/ and pro%ision of e,tra practice 4hen re:uired. Ho4e%er/ it demands a s3illed trainer and can interfere 4ith production and :ualit!.

esti&u$e training 0or Training-Centre Training1


)t is a classroom training 4hich is often imparted 4ith the help of the e:uipment and machines 4hich are identical 4ith those in use in the place of 4or3. "his techni:ue enables the trainee to concentrate on learning the ne4 rather than on performing an actual job. )t is a %er! efficient method of training semi6s3illed personnel/ particularl! 4hen man! emplo!ees ha%e to be trained for the same 3ind of 4hat that same time. "raining is generall! gi%en in the form of lectures/ conferences/ case studies/ role6pla!ing and discussion.


"raining is gi%en in a separate room/ distractions are minimized. "rained instructor/ 4ho 3no4s ho4 to teach/ can be more effecti%el! utilized. "he correct method can be taught 4ithout interrupting production. )t permits the trainee to practice 4ithout the fear of super%isors9 . co64or3ers9 obser%ations and their possible ridicule.


"he splitting of responsibilities leads to organizational problems. 'n additional in%estment in e:uipments is necessar!/ though the cost ma! be reduced b! getting some producti%e 4or3 done b! trainees 4hile in the school. "his method is of limited %alue for the jobs 4hich utilize e:uipment 4hich can be duplicated. "he training situation is some4hat artificial.


0Off6the6job6training1 simpl! means that training is not a part of e%er!da! job acti%it!. "he actual location ma! be in the compan! class rooms or in places 4hich are o4ned b! the compan! or in uni%ersities or associations 4hich ha%e no connection 4ith the compan!. "hese methods consist of5 ;. Aectures B. Conferences E. *roup Discussions D. Case #tudies >. Role6pla!ing F. Programme )nstruction

G. "6*roup "raining. ;. Lectures 0or C$ass-Room Instruction1) Aectures are regarded as one of the simplest 4a!s of imparting 3no4ledge to the trainees/ especiall! 4hen facts/ concepts/ or principles/ attitudes/ theories and problem6sol%ing abilities are to be taught. Aectures are formal organized tal3s b! the training specialist/ the formal superior or other indi%idual specific topics. "he lecture method can be used for %er! large groups 4hich are to be trained 4ithin a short time/ thus reducing the cost per trainee. In training5 t#e most im(ortant uses o" $ectures inc$u+e) Reducing an,iet! about upcoming training programmes or organizational changes b! e,plaining their purposes. )ntroducing a subject and presenting an o%er%ie4 of its scope. Presenting basic material that 4ill pro%ide a common bac3 ground for subse:uent acti%ities. )llustrating the application of rules/ principles2 re%ie4ing/ clarif!ing a summarizing.


7i8 "he learners are passi%e instead of acti%e participants. "he lecture method %iolates the principle of learning b! doing. 7ii8 ' clear and %igorous %erbal presentation re:uires a great deal of preparation for 4hich management personnel often lac3 the time. 7iii8 "he attention span of e%en a 4ell6moti%ated and ade:uatel! informed listener is onl! from ;> minutes to BM minutes so that in one course of an hour/ the attention of listeners drifts. 7i%8 )t is difficult to stimulate discussion follo4ing a lecture/ particularl! if he listener is uninformed or a4estruc3 b! the lecturer. 7%8 "he untrained lecturer either rumples or pac3s far too much information in the lecture/ 4hich often becomes unpalatable to the listener. 7%i8 "he presentation of material should be geared to a common le%el of 3no4ledge.

7%ii8 )t tends to emphasis the accumulation and memorization of facts and figures and does not la! stress on the application of 3no4ledge. 7%iii8 "hrough a s3ilful lecturer can adapt his material to the specific group/ he finds it difficult to adjust it for indi%idual differences 4ithin a group. B. T#e Con"erence Met#o+) )n this method/ the participating indi%iduals $con%e!9 to discuss points of common interest to each other. ' conference is basis to most participati%e group6centered methods of de%elopment. )t is a formal meeting/ conducted in accordance 4ith an organized plan/ in 4hich the leader see3s to de%elop 3no4ledge

and understanding b! obtaining a considerable amount of oral participation of the trainees. T#ree t-(es o" con"erences are ;. Directed discussion B. "raining conference E. #eminar conference A' Seminar or Team !iscussion) "his is an established method for training. ' seminar is conducted in man! 4a!s5 7i8 )t ma! be based on a paper prepared b! one or more trainees on a subject selected in consultation 4ith the person in charge of the seminar. )t ma! be a part of a stud! or related to theoretical studies or practical problems. "he trainees read their papers/ and this is follo4ed b! critical discussion. "he chairman of the seminar summaries the contents of the papers and the discussion 4hich follo4 their reading. 7ii8 )t ma! be based on the statement made b! the person in charge of the seminar or on a document prepared b! an e,pert/ 4ho is in%ited to participate in the discussion. 7iii8 "he person is charge of the seminar distributes in ad%ance the material to be anal!zed in the form of re:uired readings. "he seminar compares the reactions of trainees/ encourages discussion/ defines the general trends and guides the participants to certain conclusions. 7i%8 @aluable 4or3ing material ma! be pro%ided to the trainees b! actual files. "he trainees ma! consult the files and bring these to the seminar 4here the! ma! stud! in detail the %arious aspects/ ramifications and comple,ities of a particular job or 4or3 or tas3.

0+1 Case Stu+ies 0or Learning &- +oing1) "his method 4as first de%eloped in the ;==Ms b! Christopher Aang dell at the Har%ard Aa4 #chool to help students to learn for themsel%es b! independent thin3ing and b! disco%ering in the e%er6tangled s3ein of human affairs/ principles and ideas 4hich ha%e lasting %alidit! and general applicabilit!. ' collateral object is to help them de%elop sills in using their 3no4ledge. )n case stud! method the trainee is e,pected to5 7i8 Master the facts/ become ac:uainted 4ith the content of the case2 7ii8 Define the objecti%es sought in dealing 4ith the issues in the case/ 7iii8 7i%8 )dentif! the problems in case and unco%er their probable causes2 De%elop alternati%e co of action2

7%8 #creen the alternati%es using the objecti%es as the criteria2

7%i8 7%ii8 7%iii8 it.

#elect the alternati%e that is most in 3eeping 4ith the stated objecti%es. Define the controls needed to ma3e the action effecti%e2 and "o $role pla!9 the action to test its effecti%eness and find conditions that ma! limit

7e8 Ro$e-($a-ing) "his method 4as de%eloped b! Moreno/ a @enetian ps!chiatrist. He coined the terms 0role6pla!ing/1 0role6re%ersal1/ 0socio6drama1/ 0ps!chodramas1/ and a %ariet! of specialized terms/ 4ith emphasis on learning human relations s3ills through practice and insight into one9s o4n beha%iour and its effect upon others. )t has been defined as 0a method of human interaction 4hich in%ol%es realistic beha%iour in the imaginar! situations.1 "he Role6pla!ing method merits are5 Aearning b! doing is emphasized2 Human sensiti%it! and interactions are stressed2 "he 3no4ledge of results is immediate2 "rainee interest and in%ol%ement tend to be high2 )t is a useful method to project the li%ing conditions bet4een learning in the classroom and 4or3ing on a job and creating a li%e business situation in the classroom. )t de%elops s3ills and abilit! to appl! 3no4ledge/ particularl! in areas li3e human relations2 and )t brings about desired changes in beha%iour and attitudes. 0"1 *rogramme+ Instruction 0or Teac#ing &- t#e Mac#ine Met#o+1) Programmed instruction in%ol%es a se:uence of step 4hich is often set up through the central panel of an electronic computer as guides in the performance of a desired operation or series of operation. )t incorporates a pre6arranged/ proposed/ or desired course of proceedings pertaining to the learning or ac:uisition of some specific s3ills or general 3no4ledge. "he merits of the methods are5 "rainees learn at their o4n pace2 )nstructors are not a 3e! part in learning2 "he materials to be learned are bro3en do4n into small units2 )mmediate feedbac3 is a%ailable2 'cti%e learner participation ta3es place at each step in the programme.

)ndi%idual differences can be ta3en into account2 "raining can be imparted at odd times and in odd places2 "here is a high le%el of learner moti%ation. Demerits of the methods are5 "he impersonalit! of instructional setting2 'n ad%anced stud! is not possible until preliminar! information has been ac:uired2 Onl! factual subject matters can be programmed2 Philosophical and attitudinal concepts and motor s3ills cannot be taught b! this method2 and "he cost of creating an! such programme is %er! great. 7g8 T-Grou( Training) "his method of training is a techni:ue of composition of audio %isual aids and planned reading programmes. 'udio6%isual aids records/ tapes/ and films are generall! used in conjunction 4ith other con%entional teaching method. #ome emplo!ees are engaged in a confined phase of a particular tas3 and lose their all6round s3ills in a particular trade. Hence/ to 3eep them acti%e in all6found s3ills/ such training is needed. During prolonged la!6off periods/ emplo!ees on certain highl! s3illed jobs are gi%en retraining 4hen the! are called bac3 to 4or3. "echnological changes ma! ma3e a particular job/ on 4hich an emplo!ee is 4or3ing. Knnecessar!/ and the compan! ma! desire to retrain him rather than discharge him. 'n emplo!ee/ because of illness/ accident or incapacit! due to age/ ma! no longer be able to do his share of the 4or3 he performed 4hen he 4as in normal health. -conomic depression or c!clical %ariations in production create conditions in 4hich emplo!ment stabilization ma! be achie%ed b! ha%ing a %ersatile 4or36force capable or performing more than one job.


"he training programmes can be made effecti%e and successful if the follo4ing hints are considered. ;. S(eci"ic training o&%ecti,es s#ou$+ &e out$ine+ on t#e &asis o" t#e t-(e o" (er"ormance re.uire+ to ac#ie,e organi4ationa$ goa$s an+ o&%ecti,es' 'n audit of

personal needs compared 4ith operational re:uirements 4ill help to determine the specific training needs of indi%idual emplo!ees. "his e%aluation should from a 4ell6 defined set of performance standards to4ard 4hich each trainee should be directed. B. Attem(t s#ou$+ &e ma+e to +etermine i" t#e trainee #as t#e inte$$igence5 maturit-5 an+ moti,ation to success"u$$- com($ete t#e training (rogrammes' )f deficiencies are noted in these respects/ the training ma! be postponed or cancelled till impro%ements are %isible. E. T#e trainee s#ou$+ &e #e$(e+ to see t#e nee+ "or training &- ma9ing #im a/are o" t#e (ersona$ &ene"its #e can ac#ie,e t#roug# &etter (er"ormance' He should be helped to disco%er the re4ards and satisfactions that might be a%ailable to him through changes in beha%iour. D. T#e training (rogramme s#ou$+ &e ($anne+ so t#at it si re$ate+ to t#e traineeBs (re,ious e?(erience an+ &ac9groun+' "his bac3ground should be used as a foundation for ne4 de%elopment and ne4 beha%iour. >. Attem(ts s#ou$+ &e ma+e to create organi4ationa$ con+itions t#at are con+ucti,e to a goo+ $earning en,ironment' )t should be made clearl! 4h! changes are needed. 'n! distractions/ in the 4a! of training en%ironment/ should be remo%ed. "he support of the upper le%els of management should he obtained before appl!ing training at lo4er le%els. F. I" necessar-5 a com&ination o" training met#o+s should be selected so that %ariet! is permitted and as man! of the senses as possible are utilized. G. It s#ou$+ &e recogni4e+ t#at a$$ t#e trainees +o not (rogress at t#e same rate' "herefore/ fle,ibilit! should be allo4ed in judging the rates of progress in the training programme. =. I" *ossi&$e5 t#e (ersona$ in,o$,ement or acti,e (art o" t#e trainee s#ou$+ &e got in t#e training (rogrammes' He should be pro%ided 4ith opportunit! to practice the ne4l! needed beha%iour norms. <. As a trainee ac.uires ne/ 9no/$e+ge5 s3ills or attitudes and applies them in job situations/ he should be significantl! re4arded for his efforts. ;M. T#e trainee should be pro%ided 4ith regular/ constructi%e feedbac3. ;;. T#e trainee should be pro%ided 4ith personal assistance 4hen he encounters learning obstacles.

Management de%elopment is mainl! ha%ing t4o main tas3s ;. "he impro%ement of management performance and the organization of management succession. (or this purpose/ a s!stematic performance appraisal is helpful in assessing the potential of managers and their training needs.

B. 'n assessment of an organization9s re:uirements is made so that suitable training and de%elopment programmes are designed and initiated to help managers to realize their full potential and ser%e their organisation better.


"he respecti%e output %ariable e,pected b! this management de%elopment programmes are5 7i8 Ino4ledge change2 7ii8 'ttitude change2 7iii8 7i%8 +eha%iour change2 Performance change2 and

7%8 -nd6operational results 7the last t4o changes being the result of the first three changes8 "he MDP is implemented in the organisation 4ith the e,pectation of the follo4ing end6results5 )mpro%ement in technical performance2 )mpro%ement in super%ision and leadership at each le%el2 )mpro%ement in inter6departmental cooperation2 Highlighting an indi%idual9s 4ea3nesses2 'ttracting good men2 (acilitating sound 0promotion6from64ithin1 policies and practices2 -nsuring that the :ualifications of 3e! personnel become better 3no4n2 Creating reser%es in management ran3s2 Ma3ing an organisation more fle,ible b! an increased %ersatilit! of its members2 )mpro%ing organizational structure2 #timulating junior e,ecuti%es to do better 4or32 Ieeping the compan! abreast of technical and e conditions2 and $+roadening9 3e! men in the middle cadre.


T#e num&er o" +e,e$o(ment conce(ts is e?(resse+ as "o$$o/) "here is no time limit for learning

"here al4a!s e,ists some gap bet4een actual performance and capacit!. )ncreased understanding of their beha%ioral attitudes. "here are certain forces 4hich ma! retard further gro4th but these ma! offset or the direction of their mo%ement changed. De%elopment seldom ta3es place in a completel! peaceful and rela,ed atmosphere. *ro4th in%ol%es stresses and strains. De%elopment re:uires a clear6out setting of the objecti%es and goals. Participation is essential for gro4th (eedbac3 from both the superior and the group/ indi%idual is necessar! of reorganization. Responsibilit! as a role for the organizational efficienc!.


Aoo3ing at organization9s objecti%es 'scertaining de%elopment needs2 'ppraisal of present management talents2 Preparation of Manpo4er )n%entor! Planning of indi%idual de%elopment programmes2 -stablishment of training and de%elopment programmes2 Programme e%aluation.


*romotion !e"initions 0Promotion1 is a term 4hich co%ers a change and calls for greater responsibilities/ and usuall! in%ol%ed higher pa! and better terms and conditions of ser%ice and/ therefore/ a higher status or ran3. 'ccording to #cott and Clothier5 0' promotion is the transfer of an emplo!ee to a job 4hich pa!s more mone! or one that carries some preferred status1. ' promotion ma! be defined as an up4ard ad%ancement of an emplo!ee in an organization to another job/ 4hich commands better pa!.4ages/ better status.prestige/ and higher opportunities.challenges/ responsibilit!/ and authorit!/ better 4or3ing en%ironment/ hours and 4or3 and facilities/ and a higher ran3.



"o put the 4or3er in a position 4here he 4ill be of greater %alue to the compan! and 4here. He ma! deri%e increased personal satisfaction and income from his 4or32 "o remo%e a 4or3er from his job as an alternati%e to a%oid the embarrassment of firing or demoting him2 "o recognize an indi%idual9s performance and re4ard him for his 4or3 so that he ma! ha%e an incenti%e to forge ahead. -mplo!ees 4ill ha%e little moti%ation if better jobs are reser%ed for Outsiders2 "o increase an emplo!ee9s organisation effecti%eness2 "o buildup morale/ lo!alt!/ and a sense of belonging on the part of the emplo!ees 4hen it is brought home to them that the! 4ould be promoted if the! deser%e it2 "o promote job satisfaction amount the emplo!ees and gi%e them an Opportunit! for unbro3en/ continuous ser%ice2 "o pro%ide a process of 0selecti%e socialization -mplo!ees 4hose personalities and s3ills enable them to fit into an organisation human relations programme tend to sta! on2 4hile those 4hose personalities 4ith those of the organisation tend to lea%e2 "o attract suitable and competent 4or3ers for the organisation2 "o create among emplo!ees a feeling of contentment 4ith their present conditions and encourages them to #ucceed in the compan!.

;. Multiple Chain Promotion B. Kp or Out Promotion E. Dr! Promotion

T#e (romotion (o$ic- s#ou$+ consists si? e$ements5 t#e- are) ;. #tatement of the promotion polic!2 B. -stablish a plan of jobs. E. "race transfer routes D. Prepare emplo!ees for ad%ancement through the pro%ision of some training. >. Polic! communication F. Detailed personal and ser%ice records are 3ept read!.

"he factors to the considered for promotions Aength of ser%ice -ducation "raining course completed Pre%ious 4or3 histor! +ased on abilit! Hard 4or3 Cooperation Merit Honest!

Demotion9 has been defined as 0the assignment of an indi%idual to a job of lo4er ran3 and pa! usuall! in%ol%ing lo4er le%el of difficult! and responsibilit!. )n other 4ords/ demotion refers to the lo4ering do4n of the status/ salar! and responsibilities of an emplo!ee. )t is used as a puniti%e measure 4hen there are serious branches of dut! on the part of an emplo!ee 4hen it is often a preliminar! to a dismissal. &hen an emplo!ee is demoted/ his pride suffers a more se%ere jolt than it does 4hen he is superseded b! his junior. *hen a demotion &ill #e practice in an organisation8 : "he factors considered for the demotion are5 <#en +e(artments are com&ine+ an+ %o&s e$iminate+5 emplo!ees are often re:uired to accept lo4er6le%el position until normalc! is restored. #uch demotions are not a blac3 mar3 against an emplo!ee. Ina+e.uac- on t#e (art o" t#e em($o-ees in terms o" %o& (er"ormance5 attitude and capabilit! as happens 4hen an indi%idual finds it difficult to meet job re:uirements standards/ follo4ing his promotion2 and <#en5 &ecause o" a c#ange in tec#no$og-5 methods and practices/ old bands are unable to adjust/ or 4hen emplo!ees/ because of ill health or personal reasons/ cannot do their job properl!. Demotion is also used as a disciplinar! measure.

!emotion *o$ic-)

'ccording to Yoder, Heneman, 0#rnb#ll and )tone demotion practice is ha%ing a five! fold as5 7i8 ' clear and reasonable list of rules should be framed/ %iolations of 4hich 4ould subject an emplo!ee to demotion2 7ii8 "his information should be clearl! communicated to emplo!ees2 7iii8 "here should be a competent in%estigation of an! alleged %iolation2

7i%8 )f %iolations are disco%ered/ there should be consistent and e:uitable application of the penalt!/ preferabl! b! the immediate super%isor2 7%8 "here should be pro%ision for re%ie4. ' demotion should ne%er be made as a penalt! for a %iolation of the rules of conduct/ poor attendance record/ or insubordination because such action 4ill not impro%e the performance of the indi%idual. Onl! discipline and training can set the things right. Demotions ha%e a serious impact on need fulfillment. Needs for esteem and belonging are frustrated/ leading to a defensi%e beha%iour on the part of the person demoted2 there is compiling/ emotional turmoil/ inefficienc! or resignation. Hence/ demotions are made :uite infre:uentl!. Man! managers prefer to discharge emplo!ees rather than face the problems arising from demotion.

Coder and associates ha%e defined transfer as 0a lateral shift causing mo%ement of indi%iduals from one position to another usuall! 4ithout in%ol%ing an! mar3ed change in duties/ responsibilities/ s3ills needed or compensation.1 ' transfer is a horizontal or lateral mo%ement of an emplo!ee from one job/ section/ department/ shift/ plant or position to another at the same or another place 4here his salar!/ status and responsibilit! are the same. )t generall! does not in%ol%e a promotion demotion or a change in job status other than mo%ement from one job or place to another.


o satisfy such needs of an organisation as arise out of a change in the :uantit! of production/ fluctuations in 4or3 re:uirements/ and changes in the organizational structure2 the introduction of ne4 lines of production the dropping of e,isting product lines/ the reallocation of or reduction in the 4or3force due to a shortage or a surplus in same section so that la!6offs ma! be a%oided2 filling in of the %acancies 4hich ma! occur because of separations or because of the need for suitable adjustments in business operations. o meet an employees o&n re3uest, 4hen he feels uncomfortable on the job because of his disli3e of his boss/ or his fello4 4or3ers/ or because better opportunities for his

future ad%ancement do not e,ist there/ or because of famil! circumstances 4hich ma! compel him to change the place of his residence. o utili2e properly the ser!ices of an employee 4hen he is not performing satisfactoril! and ade:uatel! and 4hen the management feels that he ma! be more useful or suitable else4here/ 4here his capacities 4ould be better utilized. #uch transfers are called remedial transfers. o increase the !ersatility of the employee, b! shifting him from one job to another so that he ma! ha%e ample Opportunities for gaining a %aried and broader e,perience of 4or3. #uch transfers are 3no4n as %ersatilit! transfer. o ad"ust the &or$force of one plant &ith that of another 5 particularl! 4hen one is closed do4n for reasons be!ond the control of the emplo!er. #uch transfers are 3no4n as plant transfer and are generall! effected on humanitarian grounds to ensure that persons 4ho ha%e been long in ser%ice of an organisation are not thro4n our of emplo!ment. o replace a ne& employee #y an employee 4ho has been in the organisation for a sufficientl! long time. #uch transfers are 3no4n as replacement transfers/ the purpose being to gi%e some relief to an old emplo!ee from the hea%! pressure of 4or3. o help employees &or$ according to their con!enience so far as timings are concerned2 for e,ample/ an emplo!ee is transferred from night shift to morning shift or from the first to the second shift 7as in the case of 4omen 4or3ers 4ho ma! li3e to loo3 after their children and do the necessar! domestic 4or3 in the morning hours8. #uch transfers are 3no4n as shift transfer. o penali2e the employee transfers are also done 5 under 4hich either a difficult trade union acti%ist or intriguer or sea la4!er ma! be transferred to a remote branch or office 4here he cannot continue his acti%ities. )n *o%ernment organizations/ this practice is 4idespread/ and is also preferred b! the emplo!ee to the grim alternati%e of disciplinar! action.

Trans"er "or t#e maintenance o" a tenure s-stem' )n senior administrati%e ser%ices of the *o%ernment and also in industries/ or 4here there is a s!stem of annual inta3e of management trainees such transfers are common here the emplo!ee holds a certain job for a fi,ed tenure but he is made to more from job to job 4ith a %ie4 to enabling him to ac:uire a %ariet! of e,perience and s3ills and also to ensure that he does not get in%ol%ed in politic3ing informal groups.

' good transfer polic! should consist the follo4ing factors5 #pecificall! clarif! the t!pes of transfers and the condition under 4hich these 4ill be made2 Aocate the authorit! in some officer 4ho ma! initiate and implement transfers2

)ndicate 4hether transfers can be made onl! 4ithin a sub6unit or also bet4een departments/ di%isions.plants2 )ndicate the basis for transfer i.e./ 4hether it 4ill be based on seniorit! or aon s3ill and competence or an! other factor2 Decide the rate of pa! to be gi%en to the transferee2 )ntimate the fact of transfer to the person concerned 4ell in ad%ance2 +e in 4riting and dul! communicated to all concerned2 Not be made fre:uent and not for the sa3e of transfer onl!.

0#eparation1 means cessation of ser%ice of agreement 4ith the organisation for one or other reason. "he emplo!ee ma! be separated from the pa! roll of a compan! as a result of5 ;. Resignation2 B. Discharge and dismissal2 E. #uspension and retrenchment2 and D. Aa!6off ;. Resignation) Resignations ma! be put in %oluntaril! b! the emplo!ees on grounds of health/ ph!sical disabilit!/ better opportunities else 4here/ or maladjustment 4ith compan! polic! and officers/ or for reasons of marriage 7fre:uent in case of !oung girls85 or the! ma! be compulsor! 4hen an emplo!ee is as3ed to put in his resignation if he 4ants to a%oid termination of his ser%ices on the ground of gross negligence of dut! on his part/ or some serious charge against him. B. !isc#arge) ' discharge in%ol%es permanent separation of an emplo!ee from the pa!6roll for %iolation of compan! rules or for inade:uate performance. ' discharge becomes necessar!5 7i8 &hen the %olume of business does not justif! the continuing emplo!ment of the persons in%ol%ed2 7ii8 &hen a person fails to 4or3 according to the re:uirements of the job either because of incapacit! or because he has deliberatel! slo4ed do4n on 4or3/ or because there is no suitable place 4here he can be transferred. 7iii8 &hen an indi%idual forfeits his right to a job because of his %iolation of a basic polic! often in%ol%ing the safet! of others/ the morale and discipline of a group.


Cause o" !isc#arge) ' discharge seldom arises from a single impulsi%e act. Man! causes ma! account for it. #ome of these are5 7a8 Fre.uent Causes) )nefficienc!/ dishonest!/ drun3enness/ carelessness or indifference/ %iolation of rules. 7b8 In"re.uent Causes) 'ccidents/ insubordinations/ personal conduct/ uncleanliness/ infraction of rules/ destructi%e negligence/ 4astefulness/ and ph!sical unfitness. 7c8 Ot#er Causes) Carelessness/ lac3 of co6operation/ laziness/ tardiness in starting 4or3/ fre:uent absences 4ithout lea%e/ dishonest!/ lac3 of specific s3ill/ pre%enting promotion/ promotion/ ad%erse attitude to4ards the organisation. !isc#arge *roce+ure) "o a%oid unnecessar! grie%ances arising form discharges/ proper rule should be framed to go%ern them. "o demonstrate that a discharge is justified and does not arise out of unfair discrimination or personal prejudice of the super%isor/ follo4ing e%idence needs be produced5 7i8 Permanent records of all merit ratings made b! the super%isors2 7ii8 Permanent records of ratings of the defendant9s traits maintained b! persons other than the foreman2 7iii8 ' Memorandum bearing on the efforts made b! the foreman to help the defendant to o%ercome his 4ea3ness2 7i%8 ' memorandum bearing on the efforts made b! the foreman to help the defendant to o%ercome his 4ea3ness2 7%8 ' cop! of na! 4arning that had been sent him2 7%i8 "he latter of discharge/ especiall! if the letter states the cause of the discharge.

Discharge is generall! made in accordance 4ith the #tanding Orders. "he action ta3en should be bonafide and is neither a puniti%e measure nor a case of %ictimization. "he follo4ing elements should be present in a discharge programme5 7i8 "he reasons for discharge should be clearl! stated. 7ii8 "he indi%idual concerned should be ade:uatel! informed about the reasons for his discharge. 7iii8 "he super%isor/ in charge of initiating discharge action/ should be full! con%ersant 4ith rules and regulations of the organisation. 7i%8 "he facts regarding the %iolations of the rules and regulations should be carefull! anal!zed. 7%8 Aine officials should handle the discharge affairs.

7%i8 7%ii8

"here should be a 4ell6thought out procedure for setting the discharge case. 'de:uate pro%ision should e,ist for re%ie4 of the discharged emplo!ee9s case.

7%iii8 ' discharged emplo!ee needs a reasonable notice or an e:ui%alent of pa! in lieu of notice. )t carried 4ith it certain penalties/ such as difficult! of re6emplo!ment/ loss of benefits and/ in certain cases/ the loss of a part of the pro%ident fund/ etc.

' dismissal is the termination of the ser%ices of an emplo!ee b! 4a! of punishment for some misconduct/ or for unauthorized and prolonged absence from dut!. +efore his ser%ices are terminated/ an emplo!ee is gi%en an opportunit! to e,plain his conduct and to sho4 because 4h! he should not be dismissed. "he general rule is that in this process/ there should be no %iolation of 4hat is 3no4n as the principle of natural justice/ 4hich ensures that punishment is not Out of all proportion to the offence.

A' Sus(ension
"his is a serious punishment/ and is generall! a4arded onl! after a proper en:uir! has been conducted. (or reasons of discipline/ a 4or3man ma! be suspended 4ithout prejudice during the course of an! en:uir!. During suspension/ the emplo!ee recei%es a subsistence allo4ance. Retrenchment5 )t means a permanent termination of the ser%ices of an emplo!ee for economic reasons in going concern. "he )ndustrial Disputes 'ct. ;<DG defines retrenchment as the 0termination b! the emplo!er of the ser%ices of 4or3men for an! reason1. )t must be noted that termination of ser%ices as a punishment gi%en b! 4a! of disciplinar! action/ or retirements either %oluntaril! or on reaching the age of superannuation/ or continued ill6health/ or on the closure and 4inding up of a business/ does not constitute retrenchment. "he term is applied to continuing operations 4here a part of the 4or3 force is found to be superfluous. ' 4or3er can be retrenched if the follo4ing conditions are satisfied5 7a8 He has been gi%en E month9s notice in 4riting/ indicating the reasons for retrenchment/ and the period of notice has e,pired/ or he has been paid 4ages in lieu of such notice for the period of the notice. 7b8 "he 4or3er has been paid/ at the time of retrenchment/ compensation 4hich is e:ui%alent to ;> da!s9 a%erage pa! for e%er! completed !ear of continuous ser%ice or an! part thereof in e,cess of F months. 7c8 Notice has been ser%ed on the appropriate go%ernment authorit! and the permission of such authorit! has been obtained.

C' La--o""

' la!6off refers to an indefinite separation of the emplo!ee from the pa! roll due to factors be!ond the control of the emplo!er2 the emplo!ee is e,pected to be called bac3 in the foreseeable future. )t in%ol%es a temporar! or permanent remo%al from the pa!6roll of persons 4ith surplus s3ills. "he purpose of a la!6off is to reduce the financial burden on an organisation 4hen human resources cannot be utilized profitabl!. "hus/ a la!6off means the failure/ refusal or inabilit! of an emplo!er to pro%ide emplo!ment to a 4or3man 4hose name is borne on the muster roll of his establishment. )t is resorted to as a result of some such bonafide reasons as factors 4hich are be!ond the control of the emplo!ers5 7a8 +rea3do4n of machiner!2 7b8 #easonal fluctuations in mar3ets and loss of sales2 7c8 'ccumulation of stoc3s or financial slump2 7d8 #hortage of ra4 material/ coal and po4er2 7e8 Production dela!s2 and 7f8 Other technological reasons.


UNIT - I <age an+ Sa$ar- A+ministration Factors *rinci($es Com(ensation ($an In+i,i+ua$ Grou( Incenti,es Bonus Fringe &ene"its 8o& e,a$uation <age an+ sa$ar- a+ministration in re$ation to (ersona$ ta?ation' <AGE AN! SALAR> A!MINISTRATION
"he acti%ities of 4age and salar! administration are5 ob e%aluation

'nal!sis or Rele%ant organizational problems De%elopment and maintenances of 4age structure -stablishing rules for administering 4ages &age pa!ments )ncenti%es Profit sharing &age changes adjustments #upplementar! pa!ments Control of compensation and other related items

Nature an+ *ur(ose

"he basic purpose of 4age and salar! administration is to establish and maintain an e:uitable 4age and salar! structure. )ts secondar! objecti%e is the establishment and maintenances of an e:uitable labour cost structure/ i.e./ an optimal balancing of conflictin personnel interests so that the satisfaction of emplo!ees and emplo!ers is ma,imized and conflicts minimized. "he 4age and salar! administration is concerned 4ith the financial aspects of needs/ moti%ation and re4ards. "he objecti%es of the &age and #alar! 'dministration are mentioned as belo45

0a1 For em($o-ees)

-mplo!ees are paid according to re:uirements of their jobs. "he chances of fa%oritism 74hich creep in 4hen 4age rates are assigned8 are greatl! minimized. ob se:uences and line of promotion are established 4here%er the! are applicable.


-mplo!ees9 morale and moti%ation are increased because a 4age programmes can be e,plained and is based upon facts.

0&1To em($o-ees)
"he! can s!stematicall! plan for an control their labour costs. )n dealing 4ith a trade union/ the! can e,plain the basis of their 4age programme because it is based upon a s!stematic anal!sis of job and 4age facts. ' 4age and salar! administration reduces the li3elihood of friction and grie%ances o%er 4age ine:uities. )t enhances an emplo!ee9s morale and moti%ation because ade:uate and fairl! administered 4ages are basic to his 4ants and needs. )t attracts :ualified emplo!ees b! ensuring an ade:uate pa!ment for all the jobs.

T#e <age !etermination *rocess

"he &age Determination process steps are5 Performing job anal!sis &age sur%e!s 'nal!sis of rele%ant organizational problems forming 4age structure (raming rules of 4age administration -,plaining these to emplo!ees 'ssigning grades and price to each job and pa!ing the guaranteed 4age.
ob 'nal!sis &age Aegislation

ob Description H #pecification

ob -%aluation

&age sur%e!s H rele%ant organisation al problems

&age #tructure

Rules administration

Performance standards

Difference administration

&age pa!ment


Fig' Ste(s in,o$,e+ in !etermination o" <age Rate Factors In"$uencing <age an+ Sa$ar- Structure an+ A+ministration
"he 4age policies of different organizations %ar! some4hat. Marginal units pa! the minimum necessar! to attract the re:uired number and 3ind of labour. Often/ these units pa! onl! the minimum 4age rates re:uired b! labour legislation/ and recruit marginal labor. 't the other e,treme/ some units pa! 4ell abo%e the going rtes in the labour mar3et. ' sound 4age polic! is to adopt a job e%aluation programme in order to establish fair differentials in 4age based upon differences in job contents. +esides the basic factors pro%ided b! a job description and job e%aluation/ those that are usuall! ta3en into consideration for 4age and salar! administration are5 "he organization9s abilit! to pa!2 #uppl! and demand or labour2 "he pre%ailing mar3et rate2 "he cost of li%ing2 Ai%ing 4age2 Producti%it!2 "rade Knion9s +argaining po4er2 ob re:uirements2

Managerial attitudes2 and Ps!chological and #ociological factors

*rinci($es o" <age 2 Sa$ar- A+ministration

T#e common$- suggeste+ (rinci($es go,erning "i?ation o" /age an+ sa$ar- are) 7i8 T#ere s#ou$+ &e a +e"inite ($an to ensure that differences in pa! for jobs are based upon %ariations in job re:uirements/ such as s3ill/ effort/ responsibilit! or job or 4or3ing conditions/ and mental and ph!sical re:uirements. 7ii8 T#e genera$ $e,e$ o" /age an+ sa$aries should be reasonabl! in fine 4ith that pre%ailing in the labour mar3et. "he labor mar3et criterion is most commonl! used. 7iii8 T#e ($an s#ou$+ care"u$$- +istinguis# &et/een %o&s an+ em($o-ees' ' job carries a certain 4age rate/ and a person is assigned to fill it at that rate. -,ceptions sometimes occur in %ar! high6le%el jobs in 4hich the job6holder ma! ma3e the ob large or small/ depending upon his abilit! a contributions.

7i%8$ (a- "or$ /or95 i.e./ if t4o jobs ha%e e:ual difficult! re:uirements/ the pa! should be the same/ regardless of 4ho fills them. 7%8 An e.uita&$e (ractice s#ou$+ &e a+o(te+ "or t#e recognition of indi%idual differences in abilit! and contribution. (or some units/ this ma! ta3e the form of rate ranges/ 4ith in6grade increases2 in others/ it ma! be a 4age incenti%e plan2 it still others/ it ma! ta3e the form of closel! integrated se:uences of job promotion. 7%i8 T#ere s#ou$+ &e a c$ear$- esta&$is#e+ (roce+ure for hearing and adjusting 4age complaints. "his ma! be integrated 4ith the regular grie%ance procedure/ if it e,ists. 7%ii8 T#e em($o-ees an+ t#e tra+e union5 if there is one/ should be informed about the procedure used to establish 4age rates. -%er! emplo!ee should be informed of his o4n position/ and of the 4age and salar! structure. #ecrec! in 4age matters should not be used as a co%er6up for haphazard and unreasonable 4age programme. 7%iii8 T#e /age s#ou$+ &e su""icient to ensure "or t#e /or9er and his famil! reasonable standard of li%ing. &or3ers should recei%e a guaranteed minimum 4age to protect them against conditions be!ond their control. 7i,8 T#e /age an+ sa$ar- structure should be fle,ible to that changing conditions can be easil! met. 7,8 *rom(t an+ correct (a-ments o" t#e +ues o" t#e em($o-ees must be ensured and arrears of pa!ment should not accumulate. 7,i8 T#e /age an+ sa$ar- (a-ments must fulfill a 4ide %ariet! of human needs/ including the need for self6actualization. )t has been recognized that 0mone! is the onl! from of incenti%e 4hich is 4holl! negotiable/ appealing to the 4idest possible of see3ersL. Monetar! pa!ments often act as moti%ators and satisfiers interdependentl! of other job factors.1

T#eor- o" <ages

Different methods of 4age pa!ment are pre%alent in different industries and in %arious countries. "here ma! be pa!ment b! time or pa!ment b! results/ including pa!ments at piece rates. &ages are fi,ed mainl! as a result of indi%idual bargaining/ collecti%e bargaining or b! public or #tate regulation. Ho4 4ages are determined has been the subject of se%eral theories of 4ages. "he main element in these theories ma! be summed up as follo4s5

Su&sistence T#eor"his theor!/ also 3no4s an $)ron Aa4 of &ages/1 4as propounded b! Da%it Ricardo 7;GGB6;=BE8. "his theor! 7;=;G8 states that 0"he labourers are paid to enable them to subsist and

perpetuate the race 4ithout increase or diminution.1 "he theor! 4as based on the assumption that if the 4or3ers 4ere paid more than subsistence 4age/ their numbers 4ould increase as the! 4ould procreate more2 and this 4ould bring do4n the rate of 4ages. )f the 4ages fall belo4 the subsistence le%el/ the number of 4or3s 4ould decrease as man! 4ould die of hunger/ malnutrition/ disease/ cold/ etc. and man! 4ould not marr!/ 4hen that happened the 4age rates 4ould go up.

<ages Fun+ T#eor"his theor! 4as de%eloped b! 'dam #mith 7;GBE6;G<M8. His basic assumption 4as that 4ages are paid out of a pre6determined fund of 4ealth 4hich la! surplus 4ith 4ealth! persons as a result of sa%ings. "his fund could be utilized for emplo!ing labourers for 4or3. )f the fund 4as large/ 4ages 4ould be high2 if it 4as small/ 4ages 4ould be reduced to the subsistence le%el. "he demand for labour and the 4ages that could be paid them 4ere determined b! the size of the fund.

T#e Sur($us a$ue T#eor- o" <ages

"his theor! o4es its de%elopment to Iari Mar, 7;=D<6;==E8. 'ccording to this theor!/ the labor 4as an article of commence/ 4hich could be purchased on pa!ment of $subsistence price.9 "he price of an! product 4as determined b! the labour time needed for producing it. "he labourer 4as not paid in proportion to the time spent on 4or3/ but much less/ and the surplus 4ent to the o%er/ to be utilized for pa!ing other e,penses.

Resi+ua$ C$aimant T#eor(rancis , Wal/er, propounded this theor!. 'ccording to him/ there 4ere four factors of acti%it!/ %iz./ land/ labour/ capital and entrepreneurs &ages represent the amount of %alue created in the production 4hich remains after pa!ment has been made for all these factors of production. )n other 4ords/ labour is the residual claimant.

Margina$ *ro+ucti,it- T#eor"his theor! 4as de%eloped b! 5hilli s Henr- Wic/steed (6ngland) and ohn 7ates Clar/ (8),). 'ccording to this theor!/ 4ages are based upon an entrepreneur estimate of the %alue that 4ill probabl! be product b! the last or marginal 4or3er. )n other 4ords/ it assumes that 4ages depend upon the demand for/ and suppl! of labour. Conse:uentl! 4or3ers are paid 4hat the! are economicall! 4orth. "he result is that the emplo!er has a larger share in profit as has not to pa! to the non6marginal 4or3ers. 's long as each additional 4or3er contribute more to the total %alue than the cost in 4ages/ it pa!s the emplo!er to continue hiring2 4here this becomes uneconomic/ the emplo!er ma! resort to superior technolog!.

T#e Bargaining T#eor- o" <ages

John Davidson propounded this theor!. Knder this theor!/ 4ages are determined b! the relati%e bargaining po4er of 4or3ers or trade unions and of emplo!ers. &hen a trade union is

in%ol%ed/ basic 4ages/ fringe benefits/ job differential and indi%idual differences tend to be determined b! the relati%e strength of the organisation and the trade union.

Be#a,ioura$ T#eories
Man! beha%ioural scientists notabl! industrial ps!chologists and sociologists li3e Marsh and )imon/ 'obert D#bin/ -lion ac:ues ha%e presented their %ie4s or 4ages and salaries/ on the basis of research studies and action programmes conducted b! them. +riefl! such theories are5 "he -mplo!ee9s 'cceptance of &age Ae%el5 "his t!pe of thin3ing ta3es into consideration the factors 4hich ma! induce an emplo!ee to sta! on 4ith a compan!. "he size and prestige of the compan! the po4er of the union/ the 4ages and benefits that the emplo!ee recei%es in proportion to the contribution made b! him all ha%e their impact. "he )nternal &age #tructure5 #ocial norms/ traditions/ customs pre%alent in the organisation and ps!chological pressures on the management/ the prestige6attached to certain jobs in terms of social status/ the need to maintain internal consistenc! in 4ages at the higher le%els the ratio of the ma,imum and minimum 4age differentials/ and the norms of span of control and demand for specialized labor all affect the internal 4ager structure of an organization.

<age an+ Sa$aries an+ Moti,ators

Mone! often is loo3ed upon as means of fulfilling the most basic need of men. (ood/ clothing/ shelter/ transportation/ insurance/ pension plans/ education and other ph!sical maintenance and securit! factors are made a%ailable through the purchasing po4er pro%ided b! monetar! income64ages and salaries. Merit increases/ bonuses based on performance/ and other forms of monetar! recognition for achie%ement are genuine moti%ators. Ho4e%er/ basic pa!/ cost of li%ing increases/ and other 4age increases unrelated to an indi%idual9s o4n producti%it! t!picall! ma! fall into maintenance categor!.

(or the higher management/ salaries are influenced b! the size of a compan! b! the specific industr!/ and in part b! the contribution of the incumbent to the process of decision6ma3ing. "he bigger the firm/ the greater is the compensation paid to the e,ecuti%es. "he industries that are more highl! constrained b! go%ernmental regulation 7ban3s/ life insurance/ air transport/ railroads/ public utilities8 pa! relati%el! less than those that are more free to carr! on their business 7pri%ate firms8. #traight salaries/ bonuses/ stoc3 purchase plans and profit6sharing are used to compensate major e,ecuti%es. Of these/ the straight salar! is the most common method. "he salar! is determined b! mutual agreement bet4een the indi%idual and the emplo!er. "he sales affected the cost of production/ reduction in e,penses and the profits/ made are also ta3en into account.


+onuses are also aid to e,ecuti%es at a certain percentage of the profits. "he bonuses ma! a%erage from EM per cent to >M percent of the basic salar!. "hese bonuses operate most effecti%el! in increasing moti%ation 4hen the follo4ing conditions e,ist. 7i8 "he amount paid is closel! related to the le%el of indi%idual performances2 7ii8 "he amount paid after ta,es represents a clearl! noticeable rise abo%e the base salar! le%el2 7iii8 "he amount paid is closel! related to the le%el of compan! performance2

7i%8 "he amount paid is tied into the base salar! in such a 4a! that the combined earning are e:uitable both in relation to internal and e,ternal standards. 7%8 "he amount paid reduced drasticall! 4hene%er an indi%idual e,periences a real and continuing decrease in performance effecti%eness. 7%i8 "he amount paid is based on an easil! understandable s!stem of allocation/ and the indi%idual is pro%ided 4ith complete information on the relationship bet4een bonus and performance. 7%ii8 "he amount paid is based on an easil! understandable s!stem of allocation/ and the indi%idual is pro%ided 4ith complete information on the relationship bet4een bonus and performance. Moreo%er/ e,ecuti%e are compensated for the %arious e,penses incurred b! them/ for ta,ation ta3e a4a! a major portion of their salar!. #uch pa!ments are in the form of 7a8 Medical care2 7b8 Counsel and accountants to assist in legal/ ta, and financial problems2 7c8 (acilities for entertaining customers and for dining out2 7d8 Compan! recreational area 7s4imming pool and g!mnasium82 7e8 "he cost of the education and training of e,ecuti%es/ scholarships for their children/ and allo4ances for business magazines and boo3s. 7f8 (ree 4ell6furnished accommodation/ con%e!ance and ser%ants.

<age Incenti,es !e"inition

"he term 4age incenti%es has been used both in the restricted sense of participation and in the 4idest sense of financial moti%ation. )t has been defined differentl! b! different authors. &e gi%e belo4 a fe4 of these definitions. 0)t is a term 4hich refers to objecti%es in the e,ternal situation 4hose function is to increase or maintain/ some alread! initiated acti%el!/ and either in duration or in intensit!.1 'ccording to H#mmel and 9ic/er son5 0)t refers to all the plans that pro%ide e,tra pa! for e,tra performance in addition to regular 4ages for a job.1 (lorence obser%es5 0)t refers to increased 4illingness as

distinguished from capacit!. )ncenti%es do not create but onl! aim to increase the national momentum to4ards Producti%it!. )n the 4ords of #cott/ 0it is an! formal and announced programme under 4hich the income of an indi%idual/ a small group/ a plant 4or3 force of all the emplo!ees of a firm are partiall! or 4holl! related to some measure of producti%it! output.1 'ccording to the National Commission Aabour/ 04age incenti%es are e,tra financial moti%ation. "here are designed to stimulate human effort b! re4arding the person/ o%er and abo%e the time rated remuneration for impro%ements in the present or targeted results.1 0' 4age incenti%e scheme is essentiall! a managerial de%ice of in creasing a 4or3er9s producti%it!. #imultaneousl!/ it is a method of sharing gains in producti%it! 4ith 4or3s b! re4arding them financiall! for their increased rate of output1. 'ccording to #un/ this definition is based on the principle that 0an offer of additional mone! 4ill moti%ate 4or3ers to 4or3 harder and more s3illfull! for greater part of the 4or3ing time/ 4hich 4ill result in a stepped6up rate of output.1 &e ma! define a 4age incenti%e as a s!stem of pa!ment under 4hich the amount pa!able to a person is lin3ed 4ith his output. #uch a pa!ment ma! also be called pa!ment b! results. "he term incenti%e has graduall! ac:uired a 4ide connotation and includes all the possible factors/ besides economic gains/ 4hich can possibl! moti%ate human beings to4ards better and greater performance.

O&%ecti,es o" <age Incenti,e Sc#emes

&age incenti%e schemes aim at the fulfillment of one or more of ; follo4ing objecti%es5 7i8 "o impro%e the profit of a firm through a reduction in the unit costs of labour and materials or both5 7ii8 "o a%oid or minimize additional capital in%estment for the e,pansion of production capacit!2 7iii8 "o increase a 4or3er9s earnings 4ithout dragging the firm in a higher 4age rate structure regardless of producti%it!2 and 7i%8 "o use 4age incenti%es as a useful tool for securing a better utilization of manpo4er/ better production scheduling and performance control/ and a more effecti%e personnel polic!.

Merits or <age Incenti,e Sc#emes

#uch schemes are regarded as beneficial to both emplo!ers and 4or3ers. "he! are accepted as a sound techni:ue for the achie%ement greater production on the ground that 4or3ers 4ould 4or3 at their best if the! are offered monetar! re4ards for good performance. )f emplo!ers/ the need

for a %igorous super%ision is reduced/ and conse:uentl! there is a cut in the e,penditure on super%ision.

T-(es o" <age Incenti,e *$ans

&age )ncenti%e plans ma! be discussed as 7i8 plans for blue6collar 4or3ers2 7ii8 plans for 4hite6collar 4or3ers2 and 7iii8 plans managerial personnel6because each of these categories of emplo!ees has separate and distinct needs and specific plans tailored for each ma! pro%e beneficial.

3' Incenti,e *$ans "or B$ue-Co$$ar <or9ers) For In+i,i+ua$s) 0A1 S#ort-Term *$ans

"hese s!stems ma! be broadl! classified into three categories5 7a8 #!stems under 4hich the rate of e,tra incenti%e is in proportion to the e,tra output2 7b8 #!stems under 4hich the e,tra incenti%e is proportionatel! at a lo4er rate than the increase in output2 and 7c8 #!stems under 4hich the rate of incenti%es is proportionatel! higher than the rate of increase in output.

Merits o" <age Incenti,e *$ans)

7i8 &hen 4ell6designed and properl! applied/ pa!ment b! result ma! generall! be relied upon to !ield increased output/ lo4er the cost of production and bring a higher income to the 4or3ers. 7ii8 ' 4or3s stud! associated 4ith pa!ment b! result is a direct stimulus to 4or3ers to impro%e the organisation of 4or3 and to eliminate lost time and other 4aste. 7iii8 Aabour and total cost per unit of output can be estimated more accuratel! in ad%ance. 7i%8 Aess direct super%ision is needed to 3eep output up to a reasonable le%el.

7%8 "he confliction interests of emplo!ers and emplo!ees are unified. )ncreased efficienc! and smooth 4or3ing can therefore be promoted and sustained.

!emerits o" <age Incenti,e *$ans)

7i8 Nualit! tends to deteriorate unless there is a stricter s!stem of chec3ing and inspection. 7ii8 Pa!ment b! result ma! lead to opposition or restriction on output 4hen ne4 machines and methods are proposed or introduced. "his is because of the hear that the job ma! be restudied and earnings reduced/ 7iii8 &hen paid b! result/ 4or3ers and to regard their highest earnings as norms/ and therefore/ press for a considerable higher minimum 4age.


"he amount and cost of clerical 4or3 increases.

7%8 "here is a danger of disregarding safet! regulations and thereb! increasing the rate of accidents. 7%i8 #ome 4or3ers tend to o%er64or3 and thus undermine their health.

7%ii8 ealousies ma! arise among 4or3ers because some are able to earn more than others or because fast 4or3ers are dissatisfied 4ith the slo4er or older 4or3s in the group. 7%iii8 )t is difficult to set piece or bonus rates accuratel!. )f the! are too lo4/ 4or3ers ma! be under pressure to 4or3 too hard and become dissatisfied2 and if too high/ the!/ ma! slac3er their efforts to a%oid a re%ision of rates. A success"u$ /age incenti,es ($an s#ou$+ consist o" t#e "o$$o/ing 9e- (oints) "he management should recognize that the effecti%eness of an incenti%e depends on the total situation/ 4hich includes 4or3ers6management confidence/ relations 4ith the trade union/ the :ualit! of communication and of super%ision and the traditions in an industr!. Management should not introduce an incenti%e s!stem until it has ta3en action to ensure full understanding of 4hat is in%ol%ed. "his ma! call for procedures for the participation of emplo!ees and negotiations 4ith the trade union. "he management should a%oid an! action that ma! be interpreted as unfair. "here must be proper machiner! for handling grie%ances. "he management should a%oid actions that resemble 0rate cutting1 because of the need to change methods and rates from time to time. )t is essential that the management pa! in proportion to output/ once this output has risen abo%e that re:uired amount guaranteed pa!. "he management should train super%isors all the 4a! do4n line so that foremen and department managers are able to deal 4ith problems 4ithin their 4on departments. *reat care should be ta3en in setting up standards to a%oid rates that are too loose or too tight. Some Im(ortant <age Incenti,e *$ans) "he chief incenti%e plans are5 i. ii. iii. i%. %. Halse! Premium Plan. Halse!6&eir Premium Plan. Ro4an Premium Plan. "he ;MM per cent Premium Plan. "he +ordeau, Point Plan.

%i. %ii. %iii. i,. ,. ,i. ,ii.

"a!lor9s Differential Piece Rate Plan. Merric9s Multiple Piece Rate Plan. *natt "as3 Plan -merson -fficienc! Plan Co6Partnership #!stem. 'ccelerating Premium #!stems. Profit #haring. 7i8 Ha$se- *remium *$an) "his is a time6sa%ed bonus plan 4hich is ordinaril! used 4hen accurate performance standards ha%e not be established.

"he merits of this are5 7a8 )t guarantees a fi,ed time 4age to slo4 4or3ers and/ at the same time/ offers e,tra pa! to efficient 4or3ers. 7b8 "he cost of labour is reduced because of the percentage premium s!stem2 the piece rate of pa! graduall! decreases 4ith increased production. 7c8 "he plan in simple in design and eas! to introduce. 7d8 's the 4ages are guaranteed/ it does not create an! heartburning among such 4or3ers as are unable to reach the standard.

"he disad%antages of the plan are5 7a8 )t depends upon past performance instead of ma3ing ne4 standards. 7b8 "he 4or3ers can beat the game b! spurting on certain jobs to capture a premium and soldiering on other jobs to rest under the protection of the guarantee of da! 4ages. 7c8 (rom the point of %ie4 of the administration/ the polic! is one of drift/ for/ in this plan/ the 4or3er is left alone to decide 4hether or not to produce more after the standard ahs been reached. 7ii8 Ha$se--<eir *remium *$an5 "his plan is similar to the Halse! Premium Plan e,cept that >M percent of the time sa%ed in gi%en as premium to 4or3er. (ormula5 +onus P Q , "ime #a%ed , Hourl! Rate

7iii8 Ro/an *remium *$an) )n the Ro4an Plan/ the time sa%ed is e,pressed as a percentage of the time allo4ed/ and the hourl! rate of pa! is increased b! that percentage so that total earnings of the 4or3er are the total number of hours multiplied b! the increased hourl! 4ages.

7i%8 T#e 3DD (ercent *remium *$an5 ' definite hourl! rate is paid for each tas36hour of 4or3 performed. "he plan is identical 4ith the straight piece6rate plan e,cept for its higher guaranteed hourl! rate and the use of tas3 time as a unit of pa!ment instead of a price per piece. "he 4or3er is paid the full %alue of the time sa%ed. 7%8 T#e Be+eau? *oint *$an) "his plan is used 4hen carefull! assessed performance standards ha%e been established. )t differs from the ;MM percent plan in that the basic unit of the time is the minute termed as +. -%er! job is e,pressed in terms of +s 7after +edeau,8/ 4hich means that a job should be completed in so man! minutes. 7%i8 Ta-$orBs !i""erentia$ *iece-Rate *$an) "his s!stem 4as introduced b! "a!lor 4ith t4o objects5 (irst/ to gi%e sufficient incenti%e to 4or3men to induce them to produce up to their full capacit!2 and second/ to remo%e the fear of 4age cut. "here is one rate for those 4ho reach the standard2 the! are gi%en a higher rate to enable them to get the bonus. 7%ii8 MerrieBs Mu$ti($e *iece Rate S-stem) "his s!stem/ too/ is based on the principle of lo4 piece rate for slo4 4or3er and a higher piece rate for higher production2 but the plan differs from "a!lor9s Plan in that it offers three graded piece rates/ instead of t4o. 7i8 Kpto/ sa! =ER of standard output a piece6rate S ;MR of time rate as bonus2 7ii8 'bo%e =ER and upto ;MMR of standard output same piece rate S BMR of time rate2 and 7iii8 'bo%e ;MMR of standard output same piece rate but no bonus. 7%iii8 T#e Gnatt Tas9 an+ Bonus *$an) "his plan has been de%ised b! H.A. *natt and is the onl! one that pa!s a bonus percentage multiplied b! the %alue of standard time. Knder this s!stem/ fi,ed time rates are guaranteed. Output standards and time standards are established for the performance of each job. &or3ers completing the job 4ithin the standard time or in less time recei%e 4ages for the standard time plus a bonus 4hich ranges from BM percent to >M percent of the time allo4ed and not time sa%ed. &hen a 4or3er fails to turn out the re:uired :uantit! of a product/ he simpl! gets his time rate 4ithout an! bonus. Knder this plan/ there are also three stages of pa!ment5 7i8 +elo4 the standard performance/ onl! the minimum guaranteed 4age is to be paid2 7ii8 at the standard performance/ this 4age S BMR of time rate 4ill be paid as a bonus2 and 7iii8 4hen the standard is e,ceeded/ a higher piece6rate is paid but there is no bonus. 7i,8 Emerson E""icienc- *$an) Knder this s!stem/ a standard time is established for a standard tas3. "he da! 4age is assured. "here is not sudden rise in 4ages on achie%ing the standard of performance. "he remuneration based on efficienc! rises graduall!. -fficienc! is determined b! the ratio bet4een the standard time fi,ed for a performance

and the time actuall! ta3en b! a 4or3er. "hus/ if the period of = hours is the standard time for a tas3 and if a 4or3er performs it in ;F hours/ his efficienc! is >M percent. He 4ho finishes the tas3 in = hours has ;MM percent efficienc!. No bonus is paid a 4or3er unless he attains FFB.E percent efficienc!/ at 4hich stage he recei%es a nominal bonus. "his bonus goes on increasing till/ 4hen he achie%es ;MM percent efficienc!/ the bonus comes to BM percent of the guaranteed 4age. 't ;BM percent efficienc!/ a 4or3er recei%es a bonus of DM percent and at ;DM percent efficienc! the bonus is FM percent of the da! 4age. 7,8 Co-*artners#i( S-stem) "his s!stem tries to eliminate friction bet4een capital and labour. Knder this s!stem/ not onl! does a 4or3ers share in the profits of the underta3ing but he also ta3es part in its control and/ therefore/ shares responsibilities. "here are different degrees of this partnership and control allo4ed to the operati%es in different cases2 but in complete co6partnership s!stem/ the follo4ing factors are present. a. "he pa!ment of the e,isting standard 4ages of labour2 b. "he pa!ment of a fi,ed rate of interest on capital2 c. "he di%ision of the surplus profit bet4een capital and labour in an agreed proportion2 d. "he pa!ment for a part of the 4or3er9s labour b! the allotment of a share in the capital. e. "he sharing in the control of the business b! the representati%es of labour. "he s!stem arouses and sustains the interest of the 4or3ers in their 4or3. +! gi%ing them a %oice in the management of the factor! it raises their status as 4ell. 's the! ha%e become partners in the business/ the! tr! to ma3e it a %er! profitable enterprise. 7,i8 Acce$erating *remium S-stems) "hese are the s!stems 4hich pro%ide for a guaranteed minimum 4age for output belo4 standard. 7+8Aong "erm &age )ncenti%e Plans T#is is c$assi"ie+ into t#ree t-(es) ;. ' standard output B. "he $%alue added9 b! manufacturer E. +onus can also be calculated on the increased %alue of sales 4here this result is obtained b! increased production. "he *roup )ncenti%e Plans are usuall!5 7i8 "he Profit sharing schemes/ and 7ii8 "he #canlan Plan. 0i1 *ro"it S#aring

Profit6sharing is regarded as a stepping stone to industrial democrac!. Prof. #eager obser%es5 0Profit6sharing is an arrangement b! 4hich emplo!ees recei%es a share/ fi,ed in ad%ance of the profit.1 Features o" *ro"it-S#aring) T#e main "eatures o" t#e (ro"it-s#aring sc#emes are) 7a8 "he agreement is %oluntar! and based on joint consultation made freel! bet4een the emplo!ers and the emplo!ees. 7b8 "he pa!ment ma! be in the form of cash/ stoc3 of future credits of some amount o%er and abo%e the normal remuneration that 4ould other4ise be paid to emplo!ees in a gi%en situation. 7c8 "he emplo!ees should ha%e some minimum :ualifications/ such as tenure or satisf! some other condition of ser%ice 4hich ma! be determined b! the management. 7d8 "he agreement on profit6sharing ha%ing been mutuall! accepted/ is binding and there is no room on the part of the emplo!er to e,ercise discretion in a matter 4hich is %ital to the emplo!ees. 7e8 "he amount to be distributed among the participants is computed on the basis of some agreed formula/ 4hich is to be applied in all circumstances. 7f8 "he amount to be distributed depends on the profits earned b! an enterprise. 7g8 "he proportion of the profits to be distributed among the emplo!ees is determined in ad%ance. T-(es o" *ro"it-S#aring) -mplo!ee profit6sharing is often regarded b! emplo!ers as a supplementar! benefit programme. 'lthough plans differ 4idel! as to specific details/ three basic of profit6sharing plans are in use5 7a8 Current 7cash8 profits are paid directl! to emplo!ees in cash or b! che:ue or in the form of stoc3 as soon as profits are deter mined 7e.g./ monthl!/ :uarterl!/ biannuall! or annuall!8. 7b8 Deferred profits are credited to emplo!ee accounts to be paid to the time of retirement or in particular circumstances 7i.e./ disabilit!/ death/ se%erance or under 4ithdra4al pro%isions during emplo!ment8. 7c8 Combination b! 4hich a part of the profit is paid in cash and a pan is deferred and placed in the emplo!ee9s account in a trust fund.

O&%ecti,es o" *ro"it-S#aring

7a8 "o promote industrial harmon! and stabilization of the 4or3 force2 7b8 "o eliminate 4aste in the sue of materials and e:uipments2

7c8 "o instill a sense of partnership among emplo!ees and emplo!ers and to increase emplo!ee interest in the compan! in 4hich he 4or3s2 7d8 "o attract desirable emplo!ees and retain them/ thereb! reducing the rate of turno%er. 7e8 "o encourage emplo!ee thrift2 7f8 "o pro%ide a group incenti%e for a larger output2 7g8 "o ensure emplo!ee securit!2 and 7h8 "o demonstrate some measure of social justice to emplo!ees.

Forms o" *ro"it-S#aring

Profit6sharing ma! be on6 ;. )ndustr! +asis B. Aocalit! +asis E. Knits +asis D. Department +asis >. )ndi%idual +asis

Fringe Bene"its !e"inition

"hese benefits are usuall! 3no4n as 0fringe benefits1 as the! are offered b! the emplo!er to the emplo!ee as a 0(ringe.1 Different tern ha%e been used for these benefits/ such as 0(ringe +enefits/1 0&elfare -,penses/1 &age #upplements/1 0#ub 4ages1 or 0#ocial Charges/1 0Per:uisites other than &ages/1 0hidden pa!roll1/ 0Non6&age Aabour Costs1 or 0#elected #upplementar! Compensation Practices.1 )t is difficult to define 4hat a fringe benefit is/ for there is no agreement among the e,perts on its precise meaning/ significance or connotation. "he chief area of disagreement is bet4een 04ages1 and on the one hand and bet4een 0fringes1 and 0compan! personnel ser%ices1 on the other. "here are also differences on 4hether the bi 4hich ha%e been legall! pro%ided for should be included among the 0fringes1. "he *lossar! of Current )ndustrial Relations and &age "erms ha%e defined fringe benefits as 0#upplements to 4ages recei%ed b! 4or3ers at a cost to emplo!ers. "he term encompasses a number of benefits paid %acation/ pension/ health and insurance plans/ etc./ 6 4hich usuall! add unto something more than a 0fringe1 and is sometimes applied to a practice that ma! constitute a dubious benefits for 4or3ers.1 T#e Internationa$ La&our Organisation #as +e"ine+ :"ringe &ene"its; as un+er' 0&ages are often augmented b! special cash benefits/ b! the pro%ision of medical and other ser%ices. )n addition/ 4or3ers commonl! recei%e such benefits as holida!s 4ith pa!/ lo46cost meals/ lo46rent housing/ etc. #uch additions to the 4age proper are sometimes referred to as

$fringe benefits.9 +enefits that ha%e no relation to emplo!ment or 4ages should not be regarded a fringe benefits/ e%en though the! ma! constitute a significant part of the 4or3ers9 total in come. "his is fairl! ob%ious in the case of public par3s/ sanitation ser%ices/ and public and fire protection.1 "he Knited #tates Chamber of Commerce include fi%e categories of ser%ices and benefits under the term fringe benefits. "hese are5 7i8 Aegall! re:uired pa!ments old age pension/ sur%i%or benefits/ disabilit! pension/ health insurance/ unemplo!ment insurance/ separation pa!/ and pa!ments made under the &or3men9s Compensation 'ct2 7ii8 Pension and group insurance2 and 4elfare pa!ment2 7iii8 7i%8 Paid rest periods/ 4aste6up time/ lunch periods2 Pa!ment for time not 4or3ed %acations and holida!s/ for e,ample2 and

7%8 Christmas bonus. +elcher defines these benefits as 0an! 4age cost not directl! include pa!ments for non64or3ing time/ profits and bonus/ legall! sanctioned pa!ments on social securit! schemes/ 4or3men9s compensation/ 4elfare cess/ and the contributions ma! b! emplo!ees under such %oluntar! schemes as cater for the post6retirement/ medical/ educational/ cultural and recreational needs of 4or3men. "he term also includes the monetar! e:ui%alent of free lighting/ 4ater/ fuel etc./ 4hich are pro%ided for 4or3ers/ and subsidized housing and related ser%ices.1 Coc3man %ie4s emplo!ee9s benefits as 0those benefits 4hich are supplied b! an emplo!er to or for the benefits of an emplo!ee/ and 4hich are not in the form of 4ages/ salaries and time6rated pa!ments.1 <e ma- +e"ine "ringe &ene"it t#us7 (ringe benefit is primaril! a means in the direction of ensuring/ maintaining and increasing the income of the emplo!ee. )t is a benefit 4hich supplements to a 4or3er9s ordinar! 4ages and 4hich is of %alue to them and their families in so far as as it materiall! increases their retirement.

S(ecia$ Features o" Fringe Bene"its

It /i$$ &e note+ t#at t#ere is some +i""erence &et/een E/ages an+ "ringe &ene"itsB' First$-5 4ages are directl! related to the 4or3 done and are paid regularl! usuall! 4ee3l!/ fortnightl! or monthl!. (ringe benefits/ on the other hand/ are those pa!ments or benefits 4hich a &or3er enjo!s in addition to the 4ages or salar! he recei%es. Secon+$-5 these benefits are not gi%en to 4or3ers for na! specific jobs the! ha%e performed but are offered to them to stimulate their interest in their 4or3 and to ma3e their job more attracti%e and producti%e for them. "he! boost the earnings of the emplo!ees/ and put e,tra spending mone! in their hands.

T#ir+$-5 fringe benefit represents a labour cost for the emplo!er2 for it is an e,penditure 4hich he incurs on supplementing the a%erage mone! rates due to his emplo!ees 4ho ha%e been engaged on the basis of time schedules. )n the circumstances/ e%er!thing 4hich a compan! spends o%er and abo%e 0straight time pa!1 should be considered a fringe benefit. ' labour cost is a 0fringe1 onl! 4hen is an a%oidable factor2 that is/ 4hen it can be replaced b! mone! 4ages 4ithout detriment to a 4or3er9s producti%e efficienc!. Onl! the legal or union6imposed or %oluntar! non64age costs/ 4hich can be computed into mone! 4ages/ are considered to be fringe. Fourt#$-5 a fringe is ne%er a direct re4ard geared to the output/ effort on merit of an emplo!ee. )t is offered/ not on the basis of the hard 4or3 or long hours of 4or3 put in b! an emplo!ee but on the basis of length of ser%ice/ his sic3ness/ se,/ the hazards of life he encounters in the course of his 4or3/ etc. for e,ample/ maternit! benefits are offered to female 4or3s 4ho ha%e put in a prescribed period of ser%ice 4ith a particular emplo!er. #ometimes/ the longer an emplo!ee9s period of ser%ice/ the larger the fringe benefits he enjo!s. +ut 4ages are al4a!s fi,ed and paid regularl!. Fi"t#$-5 to be termed a $fringe benefit/9 a labour cost should be in tended b! an emplo!er as a benefit desired b! his staff. )t is a fringe benefit 4hen it is enjo!ed b! all the emplo!ees. (or e,ample/ a fringe benefit subsidizing non6%egetarian meals ta3en in the factor! canteen is not a fringe benefit for %egetarian emplo!ees. Si?t#$-5 a fringe must constitute a positi%e cost to the emplo!er and should be incurred to finance an emplo!ee benefit. )f the benefit in creases a 4or3er9s efficienc!/ it is not a fringe2 but if it is gi%en to supplement his 4ages/ it is. (or e,ample the e,penditure incurred on pro%iding better lighting arrangements 4ith a %ie4 to increasing a 4or3er9s efficienc! is not counted as e,penditure incurred on fringe benefits/ e%en though the 4or3ers ma! gain financiall! as a result of their increased efficienc! flo4ing fro the pro%ision of better lighting facilities. #ubsidized meals/ ho4e%er/ definitel! constitute a fringe benefit. "hough these benefits are 3no4n as fringes/ the! are not merel! so but are a substantial part of the e,penditure incurred on 4age and salar! administration. "he! are better 3no4n no4 as $+enefits and #er%ices9 rather than as $(ringe +enefits9. +ut since the terms are also used inter changeabl!/ the! are s!non!mous. "he 4ord $+enefit9 applies to those items for 4hich a direct monetar! %alue to the emplo!ee can be easil! ascertained/ as in the case of holida! pa!/ pension/ medical insurance or separation pa!. "he 4or3 $#er%ices9/ on the other hand/ refers to such items as athletics/ compan! purchasing ser%ices/ 4or3ers medical e,amination/ legal aid/ housing etc.

T#e O&%ecti,es o" Fringe Bene"its an+ Ser,ices *rogrammes

'n organisation designs and establishes a benefits6and6ser%ice programme to achie%e the follo4ing ends5 "o 3eep in line 4ith the pre%ailing practices of offering benefits and ser%ices 4hich are gi%en b! similar concerns2

"o recruit and retain the best personnel2 "o pro%ide for the needs of emplo!ees and protect them against certain hazards of life/ particularl! those 4hich an indi%idual cannot himself pro%ide for2 "o increase and impro%e emplo!ee morale and create a helpful and positi%e attitude on the part of 4or3ers to4ards their emplo!ees2 "o ma3e the organisatoin and dominant influence in the li%es of its emplo!ees 4ith a %ie4 to gaining their lo!alt! and co operation/ encouraging them to greater producti%e efforts2 "o impro%e and furnish the organizational image in the e!es of the public 4ith a %ie4 to impro%ing its mar3et position and bringing about product acceptance b! it2 "o recognize the official trade union9s bargaining strength/ for a strong trade union generall! constrains an emplo!er to adopt a sound benefits6and6ser%ices programme for his emplo!ees.


8o& ana$-sis describes the duties of a job/ authorit! relationships/ s3ills re:uired/ conditions of 4or3/ and additional rele%ant information. ob e%aluation on the other hand/ uses the information in job anal!sis to e%aluate each job %aluing its components and ascertaining relati%e job 4orth. )t in%ol%es/ in other 4ords/ a formal and s!stematic comparison of jobs in order to determine the 4orth of one job relati%e to another/ so that a 4age or salar! hierarch! results.9 #o it is a process b! 4hich jobs in an organization are appraised.

!e"inition o" 8o& E,a$uation

Be$o/ are gi,en some im(ortant +e"initions o" %o& e,a$uation) T#e I'L'O' defines job e%aluation as 0an attempt to determine and/ compare demands 4hich the normal performance of a particular job ma3es on normal 4or3ers 4ithout ta3ing into account the indi%idual abilities or performance of the 4or3ers concerned.1 T#e Bureau o" a La&our Statistics5 U'S'A'5 sa!s that 0job e%aluation is the e%aluation rating of jobs to determine their position in the job hierarch!. "he e%aluation ma! be achie%ed through the assignment of points or the use of some other s!stematic method for essential job re:uirements/ such as s3ills/ e,perience and responsibilit!.1 It t#e /or+s o" t#e Net#er$an+s Committee o" E?(erts on 8o& E,a$uation 0job e%aluation is a method 4hich helps to establish a justified ran3 order of jobs as a 4hole/ being a foundation for the setting of 4ages. ob e%aluation is the onl! one of the starting points for establishing the relati%e differentiation of base 4age rates.1 Kim#all and Kim#all define job e%aluation as 0an effort to determine the relati%e %alue of e%er! job in a plant to determine 4hat the fair basic 4age for such a job should be.1

Accor+ing to <en+e$$ Frenc#5 0job e%aluation is a process of deter mining the relati%e 4orth of the %arious jobs 4ithin the organisatoin/ so that differential 4ages ma! be paid to jobs of different 4orth.1 "he relati%e 4orth of a job means relati%e %alue produced. "he %ariables 4hich are assumed to be related to %alue produced are such factors as responsibilit!/ s3ills/ effort and 4or3ing conditions. &e ma! define job e%aluation as a process of anal!zing and describing positions/ grouping them and determining their relati%e %alue b! comparing the duties of different positions in terms of their different responsibilities and other re:uirements. )t is the :uantitati%e measurements of relati%e job 4orth for the purpose of establishing consistent 4age rate differentials b! objecti%es means. )t measures the differences bet4een job re:uirements/ the objecti%e being the setting of pa! for management purposes. )t does not set the price of a job2 it merel! fi,es its relati%es 4orth. )t presents and effort to determine the relati%e %alue of e%er! job in a plant and to determine 4hat the fair basic 4age for such a job should be. )t is not e%aluation the merit of the 4or3er 4ho is doing the 4or3. )t rates the job and not the :ualities of the indi%idual 4or3ers on the job/ 4hich is the tas3 of emplo!ee rating.

O&%ecti,es o" 8o& E,a$uation

Accor+ing to L'L'O' Re(ort t#e o&%ecti,es o" %o& e,a$uation are) "o secure and maintain complete/ accurate and impersonal descriptions of each distinct job or occupation in the entire plant2 "o pro%ide a standard procedure for determining the relati%e 4orth of each job in a plant2 "o determine the rate of pa! for each job 4hich is fair and e:uitable 4ith relation to other jobs in the plant/ communit! or industr!2 "o ensure that li3e 4ages are paid to all :ualified emplo!ees for li3e 4or32 "o promote a fair and accurate consideration of all emplo!ees for ad%ancement and transfer2 "o pro%ide a factual basis for the consideration of 4age rates for similar jobs in a communit! and in an industr!2 and "o pro%ide information for $4or3 organisation/ emplo!ees9 selection/ placement/ training and numerous other similar problems.

*rinci($es o" 8o& E,a$uation *rogramme

Accor+ing to Kress, %o& e,a$uation (rinci($es are) Rate the job and not the man. -ach element should be rated on the basis of 4hat the job itself re:uires.

"he elements selected for rating purposes should be easil! e,plainable in terms and as fe4 in number as 4ill co%er the necessar! re:uisites for e%er! job 4ithout an! o%erlapping. "he elements should be clearl! defined and properl! selected. 'n! job rating plan must be sold to foremen and emplo!ees. "he success in selling it 4ill depend on a clear6cut e,planation and illustration of the plan. (oremen should participate in the rating of jobs in their o4n departments. Ma,imum co6operation can be obtained from emplo!ees 4hen the! themsel%es ha%e an opportunit! to discuss job ratings. )n tal3ing to foremen and emplo!ees/ an! discussion of mone! %alue should be a%oided. Onl! point %alues and degrees of each element should be discussed. "oo man! occupational 4ages should not be established. )t 4ould be un4ise to adopt an occupational 4age for each total of point %alues.

A+,antages o" 8o& E,a$uation

An I'L'O (u&$ication c$aims "o$$o/ing a+,antages "or %o& e,a$uation) ob e%aluation is a logical and/ to some e,tent/ and objecti%e method of ran3ing jobs relati%e to one another. )t ma! help in remo%ing ine:ualities in e,isting 4age structures and in maintaining sound and consistent 4age differentials in a plant or industr!.

)n the case of ne4 jobs/ the method often facilitates fitting them into the e,isting 4age structure. "he method helps in remo%ing grie%ances arising out of relati%e 4ages2 and it impro%es labour6management relations and 4or3er9s morale. )n pro%iding a !ardstic3/ b! 4hich 4or3ers9 complaints or claims can be judged/ the method simplifies discussion of 4age demands and enables differences in 4age to be e,plained and justified. "he method replaces the man! accidental factors/ occurring in less s!stematic procedures/ of 4age bargaining b! more impersonal and objecti%es standards/ thus establishing a clear basis for negotiations. "he method ma! leas to greater uniformit! in 4ager rates/ thus simplif!ing 4age administration. "he information collected in the process of job description and anal!sis ma! also be sued for the impro%ement of selection/ transfer and promotion procedures on the basis of comparati%e job re:uirements. #uch information also re%eals that 4or3s are engaged in jobs re:uiring less s3ill and other :ualities than the! posses/ thereb! pointing to the possibilit! of a ma3ing more efficient use of the plant9s labor.

Limitation o" 8o& E,a$uation

T#ese are7 7i8 "hough man! 4as of appl!ing the job e%aluation techni:ue are a%ailable/ rapid changes in technolog! and in the suppl! and demand of particular s3ills ha%e gi%en rise to problems of adjustment. "hese need to be probed. 7ii8 #ubstantial differences e,ist bet4een job factors and the factors emphasized in the mar3et. "hese differences are 4ider in cases in 4hich the a%erage pa! offered b! a compan! is lo4er than that pre%alent in other companies in the same industr! or in the same geographical. 7iii8 ' job fre:uentl! fa%ours group9s different form those 4hich are factored b! the mar3et. "his is e%ident from the obser%ations of Ierr and (isher. "he! obser%e/ 0"he jobs 4hich tend to rate high as compared 4ith the mar3et are those of janitor/ nurse and t!pist/ 4hile craft rates are relati%el! lo4. &ea3er groups are better ser%ed b! an e%aluation plan than b! the mar3et2 the former places the emphasis not on force but on en:uir!. 7i%8 ob factors fluctuate because of changes in production technolog!/ information s!stems/ and di%ision of labour and such other factors. "herefore/ the e%aluation of a job toda! is made on the basis of job factors/ and does not reflect the time of job %alue in future. )n other 4ords/ continuing attention and fre:uent e%aluation of a job are essential. 7%8 Higher rates of pa! for some jobs at the earlier stages than other jobs or the e%aluation of a higher in the organizational hierarch! at a lo4er rate than another job relati%el! lo4er in the organizational hierarch! often gi%e rise to human relations problems and lead to grie%ances among those holding these jobs. 7%i8 &hen job e%aluation is applied for the first time in an! organisation/ it creates doubts and often fear in the minds of those jobs are being e%aluated. )t ma! also disrupt the e,isting social and ps!chological relationships. 7%ii8 ' large number of jobs are called red circle jobs. #ome of these ma! be more and others less than the rate determined b! job e%aluation. 7%iii8 ob e%aluation ta3es a long time to install/ re:uires specialized technical personnel/ and ma! be costl!. 7i,8 &hen job e%aluation results in substantial changes in the e,isting 4age structure/ the possibilit! of implementing these changes in a relati%el! short period ma! be restricted b! the financial limits 4ithin 4hich the firm has to operate.

Basic 8o& E,a$uation Met#o+s = S-stems

T#ere are "our &asic5 tra+itiona$ s-stems o" %o& e,a$uation7 7;8 "he ran3ing s!stems2

7B8 "he grading of job classification s!stem2 7E8 "he point s!stem2 and 7D8 "he factor comparison s!stem. "he first t4o s!stems are popularl! 3no4n as the non6anal!tical or non6:uantitati%e or summar! s!stems/ because the! utilize non6:uantitati%e methods of listing jobs in order of difficult! and are/ therefore/ simple. "he last t4o s!stems are called the anal!tical or :uantitati%e s!stems/ because the! use :uantitati%e techni:ues in listing the jobs.

3' T#e Ran9ing S-stems

Mec#anism) Knder this s!stem/ all jobs are arranged or ran3ed in the order of their importance from the simplest to the hardest/ or in the reser%e order/ each successor to ha%e job descriptions/ although the! ma! be useful. #ometimes/ a series of grades or zones are established/ and all the jobs in the organisation are arranged into these. ' more common practice is to arrange all the jobs according to their re:uirements b! raging them and then to establish the groups or classification. "he usuall! adopted techni:ue is to rand jobs according to 0the 4hole job1 rather than a number of compensable factors.

7i8 "he s!stem is simple/ easil! understood/ and eas! to e,plain to emplo!ees 7or a union8. "herefore/ it is suitable for small organizations 4ith clearl! defined jobs. 7ii8 )t is far less e,pensi%e to put into effect than other s!stems/ and re:uires little effort for maintenance. 7iii8 )t re:uires less time/ fe4er forms and less 4or3/ unless it is carried to a detailed point used b! compan!.

7i8 's there is no standard for an anal!sis of the 4hole job position/ different basses of comparison bet4een rates occur. "he process is initiall! based on judgment and/ therefore/ tends to be influenced b! a %ariet! of personnel biases.9 7ii8 #pecific job re:uirements 7such as s3ill/ effort and responsibilit!8 are not normall! anal!zed separatel!. Often a rater9s judgment is strongl! influenced b! present 4age rates. 7iii8 "he s!stem merel! produces a job order and does not indicate to 4hat e,tent it is more important than the one belo4 it. )t onl! gi%es us its ran3 or tells us that it is higher or more difficult than another/ but it does not indicate ho4 much higher or more difficult.

6' 8o& C$assi"ication or Gra+ing Met#o+

Knder this s!stem/ a number of pre6determined grades or classifications are established b! a committee and then the %arious jobs are assigned 4ithin each grade or class. *rade descriptions are the result of the basic job informant 4hich is usuall! deri%ed from a job anal!sis. 'fter

formulation and stud!ing job descriptions and job specifications/ jobs are grouped into classes or grades 4hich represent different pa! le%els ranging from lo4 to high. Common tas3s/ responsibilities/ 3no4 ledge and e,perience can be identified b! the process of job anal!sis. Certain jobs ma! then be grouped together into a common grade or classification. *eneral jobs ma! then be grouped together into a common grade or classification. *eneral grade descriptions are 4ritten for each job classification/ and finall! these are used as standard for assigning all the other jobs to a particular pa! scale.

T#e "o$$o/ing "i,e ste(s are genera$$- in,o$,e+) 7i8 he preparation of "o# descriptions, 4hich gi%es us basis job information/ usuall! deri%ed from a job anal!sis.

7ii8 he preparation of grade descriptions, so that different le%els or grades of jobs ma! be identified. -ach grade/ le%el must be distinct form the grade le%el adjacent to it2 at the same time/ it should represent a t!pical step in a continuous 4a! and not big jump or gap. 'fter establishing the grade le%el/ each job is assigned to an appropriate grade le%el on the basis of the comple,it! of duties/ non6super%isor! responsibilities and super%isor! responsibilities. 7iii8 Selection of grades and $ey "o#s' 'bout ;M to BM jobs are selected/ 4hich include all the major departments and functions and functions and co%er all the grades. 7i%8 'rading the $ey "o#s, Ie! jobs are assigned to an appropriate grade le%el and their relationship to each other studied. 7%8 Classification of all 5o#s( obs are classified b! grade definitions. 'll the jobs in the same grade recei%e the same 4age or range of rates. (or e,amples/ menials ma! be put into one class2 cler3s in another2 junior officers in higher class2 and the top e,ecuti%e in the top class.

7i8 "his method is simple to operate and understand/ for it does not ta3e much time or re:uire technical help. 7ii8 "he use of full! described job classes meets the need for emplo!ing s!stematic criteria in ordering jobs to their importance. #ince man! 4or3ers thin3 of jobs in/ or related to/ clusters or groups/ this method ma3es it easier for them to understand ran3ings. 7iii8 )f an organisation consists of >MM people holding to different jobs. "he jobs might be bro3en up into perhaps > classes/ arranged in order of importance from high to lo4/ and described class b! class. "his class description broadl! reflects le%el of education/ mental s3ill/ profit impact or some combination of these. 7i%8 "he grouping of jobs into classification ma3es pa! determination problems administrati%el! easier to handle. Pa! grades are determined for/ and assigned to/ all the job classification.

7%8 )t is used in important go%ernment ser%ices and operates efficientl! but it is rarel! used in an industr!.

T#is s-stem su""ers "rom t#e "o$$o/ing +e"ects) 7i8 'lthough/ it represents an ad%ance in accurac! o%er the ran3ing method/ it still lea%es much to be desired because personal e%aluations b! e,ecuti%es 7uns3illed in such 4or38 establish the major classes/ and determine into 4hich classes each job should be placed. 7ii8 #ince no detailed anal!sis of a job is done/ the judgment in respect of 4hole range of jobs ma! produce an in correct classification. 7iii8 )t is relati%el! difficult to 4rite a grade description. "he s!stem becomes to operate as the number of jobs increases. 7i%8 job. )t is difficult to 3no4 ho4 much of a job9s ran3 is influenced b! the man on the

7%8 "he! s!stem is rather rigid and unsuitable for a large organisation or for %er! %aried 4or3.

A' T#e *oints S-stem

"his method is the most 4idel! used t!pe of job e%aluation plan it re:uires identif!ing a number of compensable factors 7i.e./ %arious characteristics of jobs8 and then determining degree to 4hich each of these factors is present in the job. ' different number of points is usuall! assigned for each degree of each factor. Once the degree to each factor is determined/ the corresponding number of points of each factor is added and an o%erall point %alue is obtained. "he point s!stem is based on the assumption that it is possible to assign points to respecti%e factors 4hich are essential for e%aluating an indi%idual9s job. "he sum of these points gi%es us an inde, of the relati%e significance of the jobs that are rated.

C' T#e Factor Com(arison Met#o+

Knder this s!stem/ jobs are e%aluated b! means of standard !ard stic3s of %alue. )t entails deciding 4hich jobs ha%e more of certain compensable factors than others. Here/ the anal!st or the -%aluation Committee selects some $3e!9 or $benchmar39 jobs for 4hich there are clearl! understood job descriptions and counterparts in other organizations/ and for 4hich the pa! rates are such as are agreed upon and are acceptable to both management and labor. Knder this method/ each job is ran3ed se%eral times6once for each compensable factor selected. (or e,ample/ jobs ma! be ran3ed first in terms of the factor $s3ill9. "hen the! are ran3ed according to their mental re:uirements. Ne,t the! are ran3 according to their $responsibilit!9/ and so forth. "hen these ratings and combined for each job in an o%er6all numerical rating for the job.

Essentia$s o" Success o" 8o& E,a$uation *rogrammes


&hen it is finall! decided to install a formal s!stem of job e%aluation irrespecti%e of 4hich s!stem is decided upon/ the utmost care must be e,ercised to ensure that human as 4ell as technical aspects are ta3en into account. )n order that a job e%aluation s!stem 4or3s efficientl!/ it is necessar! that all those 4ho are concerned 4ith job e%aluation should be full! con%ersant 4ith the techni:ues and implications of the different a%ailable s!stems. Other4ise/ the chances of success are doubtful. "he follo4ing measures ma! be adopted. 7i8 Su(er,isors s#ou$+ #a,e "u$$ 9no/$e+ge o" t#e s-stem' "he! should understand it/ and be able to e,plain to their people the purpose of the plan and ho4 it 4or3s. "he! must accept the desirabilit! of the plan/ for it the! are not con%inced that it is useful/ the! 4ill certainl! not be able to con%ince the emplo!ee. 7ii8 Su(er,isors as a grou( s#ou$+ recei,e a t#oroug# training in ad%ance of the actual introduction of the plan to enable them to e,plain the policies/ principles and procedures to an!one 4ho 4ants to understand them. 7iii8 T#e management must gi,e t#e /i+est (u&$icit- to e%er! phase of the programme/ utilizing emplo!ee publications/ notice boards/ departmental meetings and letters to emplo!ees9 homes. 7i%8 Se(arate (a- structures s#ou$+ &e maintaine+ "or ma%or grou(s o" em($o-ees' (or e,ample/ it 4ould be difficult to 4or3 out a plan e:uall! applicable to factor! 4or3ers/ office 4or3ers/ salesmen/ and departmental heads. "he 4ages that are offered must be at or about the pre%ailing rte in order that there ma! be a successful completion for capable people. 7%8 <#ate,er ($an or s-stem is se$ecte+ "or eac# grou( /i$$ arouse some "ears or a((re#ensions' "o o%ercome these/ the details of the administration of the plan should be as simple as possible/ and the management should endea%our to in%ol%e a broad range of emplo!ees from a number of departments. 'ccording to the findings of the )nternational Relations #ections of the Princeton Kni%ersit!/ the follo4ing conditions are necessar! for the successful operation of a job e%aluation programme. 0a1 It must &e care"u$$- esta&$is#e+ &- ensuring t#at) i. "he management9s aims are clear to all concerned and that not onl! the manual 4or3ers but also all le%els of super%ision and management emplo!ees full! understand its implications2 and 'll the rele%ant internal and e,ternal factors ha%e been ta3en into account in arri%ing at the final form of the scheme.


7b8 )t must ha%e the full appro%al and continued support and bac3ing of the top management. 7c8 )t must ha%e obtained the acceptance of trade unions.

7d8 'de:uate administrati%e control must be set up to ensure5 i. ii. iii. i%. ' centralized coordination of the scheme2 "he e%aluation of ne4 and changed jobs2 ' proper control of indi%idual rate ranges2 "he conduct of 4age sur%e!s to pro%ide the necessar! information about the intra6plant ranges.

7e8 T#e im(ortance o" "actors5 other than job content/ in 4age rate determination 7emplo!ment mar3et conditions/ se,/ 4age differentials/ geographical 4age differentials/ and the relati%e bargaining po4er of the management and the trade union8 must be recognized and ta3en into consideration 4hile launching a job e%aluation programme. 7f8 Be"ore $aunc#ing a %o& e,a$uation (rogramme certain issues should be decided beforehand. "here are5 i. ii. iii. i%. &hich categor! of emplo!ees are to be co%ered 7i.e./ 4hether hourl! paid job or salaried job emplo!ees8 and unto 4hat range? &ho 4ill e%aluate a job outside consultants or trade anal!sts or the personnel of the personnel department? Ho4 4ill the emplo!ees be consulted in regard to the method of putting the programme through? and Does a proper atmosphere e,ist for launching of the programme?

Some Suggestions
<e suggest t#e "o$$o/ing measures an+ ste(s "or im(ro,ing t#e /or9ing o" e,a$uations (rogrammes' ;. A %o& e,a$uation sc#eme s#ou$+ &e c#osen cautious$-' )t should be de%ised and administered 4ith due regard to the conditions of the emplo!ment mar3et/ 4hich cannot be ignored if the scheme is to be successful. )t should/ therefore/ reflect those forces 4hich are important in the mar3et/ e.g./ relati%e suppl! of and demand for labour/ bargaining po4er of the parties and job conditions. B. T#e +etai$s o" a sc#eme s#ou$+ &e +ra/n u( in such a 4a! that the! do not conflict 4ith other pro%isions of Collecti%e 'greement such as/ for e,ample/ seniorit! clauses and grie%ances procedure. E. T#e sc#eme s#ou$+ &e intro+uce+ on a ($ant-to-($ant &asis t#an a(($ie+ to a /#o$e in+ustr-' "his is because it is difficult to standardize jobs throughout an industr! unless the plants in it are so familiar that the! can be treated as being %irtuall! a single firm.


D. T#e sc#eme s#ou$+ &e so$+ to a$$ concerne+ an+ suggestions soug#t' )f the 4or3ers in a plant are unionized/ it is highl! desirable that an! scheme adopted should be agreed to and/ if possible/ de%eloped jointl! b! the compan! and the trade unions. >. It is o" ma%or im(ortance t#at t#e num&er o" %o& tit$es an+ c$assi"ications &e 9e(t to a minimum' )f the! are not/ a scheme becomes too infle,ible because of the narro4 co%ered of his job descriptions. Promotions 4ithin a grade become more serious. Moreo%er/ 4or3ers tend to feel more insecure and cling to their present jobs because the! ma! not ha%e the :ualification for another job. F. An- antici(ate+ c#anges in met#o+s should be carried out before a scheme is installed and all modifications in it should be resisted until it becomes full! established. G. In (re(aring %o& +escri(tions it is sound practice to emphasize in them the things 4hich ma3e on job different from another rather than to find a comprehensi%e statement all the duties of the jobs. =. A sc#eme /#ic# (ro,i+es "or sing$e rates an+ "or +e"inite ratios bet4een the rates for classes of 4or3ers 7'/ +/ C/ etc.8 4ithin a job grade is easier to administer than one 4hich establishes rate ranges and has no fi,ed ratios. <. A sc#eme is &etter a+ministere+ b! the )ndi%idual Relations staff of a compan! than b! the )ndustrial -ngineers 4ho ma! ha%e de%eloped it. "he essence of successful administration of a scheme is fle,ibilit!/ and this is better understood b! those engaged in industrial relations 4or3 than )ndustrial -ngineers. ;M. T#e &etter t#e state o" in+ustria$ re$ations the easier it is to introduce a job e%aluation scheme.

<age +i""erentia$s arise &ecause o" t#e "o$$o/ing "actors)

7a8 Differences in the efficienc! of the labor/ 4hich ma! be due to inborn :ualit!/ educations/ and conditions under 4hich 4or3 ma! be done. 7b8 "he e,istence of non6competing groups due to difficulties in the 4a! of the mobilit! of labour from lo4 paid to high paid emplo!ments. 7c8 Differences in the agreeableness or social esteem of emplo!ment. 7d8 Differences in the nature of emplo!ment and occupations. "he nature and the e,tent of 4age differentials are conditioned b! a set of factors such as the conditions pre%ailing in the mar3et/ the e,tent of unionization and the relati%e bargaining po4er of the emplo!ers and 4or3ers/ the rate of gro4th in producti%it!/ the e,tent of authoritarian regulations and the centralization of decision6ma3ing/ customs and traditions/ the general economic/ industrials and social conditions in a countr! and a host of other subject and objecti%e factors operating at %arious le%els. "he pre%ailing rates of 4ages/ the capacit! of an industr! to pa!/ the needs of an industr! in a de%eloping econom!/ and the re:uirements of social justice also directl! or indirectl! affect 4age differentials.

<age !i""erentia$s in In+ia

Due to the paucit! of rele%ant data on 4age differentials/ it is not possible to anal!ze them in )ndia2 !et the main features of the )ndian 4age structure ma! be stated thus5 0's a characteristic of the unorganized labour mar3et/ personal differentials because of job selling/ indi%idual bargaining and 4age discrimination ha%e tended to persist in )ndia/ especiall! in the unorganized sector of econom!/ and e%en in the organized and unorganized sections in industr!.1 "he tendenc! appears to be to4ards the elimination of 4age differentials because of go%ernment interference through the fi,ation of the minimum 4ages and/ of late/ through the appointment of &age +oards and pressures from trade unions. &age differentials b! se, are :uite common. +oth economic and social reasons account for this phenomenon. Despite the fact the Constitution of )ndia enjoins upon the #tate to direct its polic! to4ards securing 0e:ual pa! for e:ual 4or31 for men and 4omen/ a4ards of some industrial "ribunals pro%ide for 0different 4ages for men an 4omen 4or3ers/ not on the ground that the 4or3 done is une:ual but on the ground that the 4ages of 4omen 4or3ers support a smaller famil!/ that the cost of emplo!ing 4omen 4or3ers is higher.1 's regards inter6firm and inter6industr! differentials in )ndia/ the former 4ere :uite important and fre:uent in the past/ particularl! in the jute mill industr!. Of late/ ho4e%er/ there has been a tendenc! to4ards the elimination of inter6firm differentials. "he forces 4hich tend to eliminate inter6personal differentials in the countr! operate in this case as 4ell.


UNIT Em($o-ee Maintenance an+ Integration <e$"are an+ sa"et- Acci+ent (re,ention A+ministration o" +isci($ine Em($o-ee moti,ation Nee+ an+ measures EM*LO>EE MAINTENANCE AN! INTEGRATION
O&%ecti,es o" Em($o-ee Maintenance an+ Integration t#roug# In+ustria$ Re$ations )n addition to their primar! objecti%e of bringing about good and health! relations bet4een emplo!ers and emplo!ees/ industrial relations are designed 7a8 "o safeguard the interests of labour and of management b! securing the highest le%el of mutual understanding and good 4ill among all those sections in the industr! 4hich participate in the process of production. 7b8 "o a%oid industrial conflict or strife and de%elop harmonious relations/ 4hich are an essential factor in the producti%it! of 4or3ers and the industrial progress of a countr!2 7c8 "o raise producti%it! to a higher le%el in an era of full emplo!ment b! lessening the tendenc! to high turno%er and fre:uent absenteeism2 7d8 "o establish and nurse the gro4th of an )ndustrial Democrac! based on labour partnership in the sharing of profits and of managerial decisions/ so that an indi%idual9s personalit! ma! gro4 to its full stature for the benefit of an industr! and of the countr! as 4ell. 7e8 "o eliminate/ as far as is possible and practicable/ stri3es/ loc3outs and gheraos b! pro%iding reasonable 4ages/ impro%ed li%ing and 4or3ing conditions/ and fringe benefits2 7f8 "o establish go%ernment control of such plants and units as are running at a loss or in 4hich production has to be regulated in the public interest. "he #tate endea%ors to correct/ through good and harmonious industrial relations/ and imbalanced/ disordered and maladjusted #ocial order 4ith a %ie4 to reshaping comple, social relationships follo4ing technological ad%ances. )t also controls and disciplines both emplo!ees and emplo!ers/ and adjusts their conflicting interests2 it protects some and restrains others/ and tries to e%ol%e a health! social order. )n other 4ords/ the objecti%e of maintenance and integration are to facilitate production2 to safeguard the rights and interests of both labour and management b! enlisting he cooperation of both2 to achie%e a #ound/ harmonious and mutuall! beneficial relationship bet4een emplo!ers and emplo!ees. 'ccording to .ir/ald-, 6 industrial relations in a countr! are intimatel! connected 4ith the form if its political go%ernment and the objecti%es of an industrial organisation ma! change from economic to political ends.1 He di%ides the objecti%es of industrial relations into four categories.

7;8 )mpro%ement in the economic conditions of 4or3ers e,isting state of industrial management and political go%ernment. 7B8 Control e,ercised b! the state o%er industrial underta3ing 4ith a %ie4 to regulating production and promoting harmonious industrial relations2 7E8 #ocialization or rationalization of industrial b! ma3ing the state itself a major emplo!er2 and 7D8 @esting of a proprietar! interest of the 4or3ers in the industrial in 4hich the! are emplo!ed. )f political objected are li3el! to contribute to disunit! in the trade union mo%ement/ it 4ould be necessar! to pro%ide better and more effecti%e safeguards and e,ercise greater restraint in order to a%oid such a situation.

*artici(ants= aria&$es in Maintenance an+ Integration

"he industrial relations s!stem is an organisation of recognized major %ariables 4hich e,ert a controlling influence on them. Yoder obser%es5 0)ndustrial relationship is the designation of a 4hole field of relationships 4hich e,ist because of the necessar! collaboration of men and 4omen in the emplo!ment process of an industr!.1 Dunlop has added a ne4 dimension to these interTrelations. He sa!s 0)ndus trial societies necessaril! create industrial relations/ defined as the comple, of inter6relations among 4or3ers/ managers and go%ernment1 On this basis/ there are there major %ariables 7participants8 in industrial relations. i. <or9ers an+ t#eir Organisation) Here/ the emphasis is on the members of organizations/ the personal characteristics 4or3ers/ their cultural and educational attainments/ :ualification s3ills and attitudes to 4or3/ etc. Managers an+ t#eir Organisation) Here/ the emphasis is on 4or3 groups/ teams/ the %ariations in their sizes/ composition e,tent of specialization the! impose. Pro%ision is made for internal communication/ for the structure of status and authorit!/ such ancillar! organisation as trade unions and emplo!ers9 associations. Ro$e o" t#e Go,ernment) Here/ the emphasis is on the role and responsibilities of go%ernmental agencies/ the e,tent of official inter%ention/ assistance and regulation of 4or3ing condition 4or3ing communities. "hese three groups 4or3ers/ emplo!ers/ and the go%ernment interact 4ithin the social and economic en%ironment that pre%ails at a particular time. )t is ob%ious/ then/ that e%er! industrial relations s!stem creates its o4n comple, of rules and regulations 4hich go%ern the place of 4or3 and the 4or3ing communit!. "hese rules and regulations ma! ta3e a %ariet! of forms in different s!stems2 there ma! be la4s and a4ards of courts/ committees or tribunals2 there ma! be agreements/ 4ritten or sanctioned b! customer/ usage/ practice/ or tradition/ or 4hich ma! be the result in go%ernment policies or inter%ention.



"he characteristics of the participants in industrial relations ma!/ therefore/ be restated in the follo4ing 4a! 7a8 T#e <or9ersB Organi4ations) "hese are mainl! political in situations associations of emplo!ees formed and maintained for the specific purpose of 4resting concessions from emplo!ers. "he! ac:uire po4er/ status and authorit! b! reason of the support the! enjo! of their members/ their po4er is used to fetter a management9s discretion and pressure it into !ielding to their demand for better and higher 4ages/ for impro%ement/ in their 4or3ing conditions/ for better and more amenities and 4elfare schemes/ etc. 's a matter of fact/ a trade union if often loo3ed upon as a conflict association/ 4hich has strong political and emotional o%ertimes. 7b8 T#e Em($o-ersB Organisation) "hese are %oluntar! bureaucratic institutions 4hich are hierarchical in nature and 4hich place reliance on specialization and di%ision of labor for the attainted of their objecti%es. "he! co6ordinate their acti%ities through a s!stem of graded authorit!/ and ma3e use of a direct s!stem of communication for their orders and directi%es. 7c8 T#e Go,ernment) "his is a %er! large bureaucratic organisation/ though it ma! often be a democratic one as 4ell. )t tries to regulate the relationships of emplo!ers and emplo!ees/ and 3eeps an e!e on both groups to 3eep each in line. "his relationship is enforced and maintained through labour courts/ industrial tribunals/ 4age boards/ in%estigating and en:uir! committees/ 4hich la! do4n principles/ norms/ rules and regulations/ and gi%e a4ards. 'll these are placed on the statue boo3 and ha%e to be obser%ed b! 4or3ers and emplo!ers as 4ell.

As(ects o" Em($o-ee Em($o-er Integration

)t should be noted that the concept of industrial relations has a %er! 4ide meaning and connotation. )n the strictest sense/ it refers to/ emplo!er6emplo!ee relationships/ that is/ the relationship 4hich emerges from the da!6to6da! association of management and labour. )n its 4ider sense/ the concept includes the relationship bet4een emplo!er and emplo!ee in the course of the running of an industr!/ and ma! project itself into spheres 4hich ma! co%er the areas of :ualit! control/ mar3eting/ price fi,ation and disposition profits. Ho4e%er/ the phrase industrial relations is generall! the narro4er sense. 'n industr! is a social 4orld in miniature. 's an association %arious persons 4or3ers/ super%isor! staff/ management and emplo!ers it creates an industrial relationship. "his association often affects and influences/ for better or 4orse/ the economic/ and political life of the 4hole communit!/ in other 4ords/ industrial life creates and series of social relationships 4hich ha%e an impact onl! on the relations bet4een emplo!ers and emplo!ees but also on the industr! as a 4hole and on the communit! at large. )ndustrial relations are/ therefore/ an inherent aspect of industrial life/ and ma! be classified under the follo4ing categories. 7a8 Aabour6management relations at plant and industr! le%el. 7b8 *roup relations among %arious groups of 4or3ers. 7c8 Communit! relations bet4een industr! and societ!.

Here/ 4e are concerned 4ith the first categor!. "he main purposes of industrial relations are5 7;8 De%elopment of health! labour management relations2 7B8 Maintenance of industrial peace and a%oidance of industrial strife2 and 7E8 De%elopment and gro4th of industrial democrac!.

031 !e,e$o(ment o" #ea$t#- $a&our management re$ations7

T#e (romotion o" #ea$t#- $a&our management re$ations (resu((oses 7a8 T#e e?istence o" strong5 /e$$-organi4e+5 +emocratic an+ res(onsi&$e tra+e unions an+ associations o" em($o-ers in an in+ustr-' "hese organisation help bring about a greater sense of job securit! among the emplo!ees/ and assist in the 4or3ers9 increased participation in decision6ma3ing/ particularl! in those decision 4hich affect the terms and conditions of their emplo!ment/ ensure that labour has a dignified $role to pla! in societ!. "he! also to create fa%ourable conditions for negotiations/ consultations discussions 4ith emplo!ers so that these ma! ga%e the 4a! to better labour6management relations. 7b8 Co$$ecti,e &argaining an+ a /i$$ingness to acce(t ,o$untar- ar&itration' Collecti%e bargaining pre6supposes an e:ualit! of a bet4een t4o contending groups 4hich are in conflict 4ith each and prepares the ground for mutual trust and good4ill 4hich ensure fair discussion/ consultation and negotiation on matters of common interest to both industr! and labor. Collecti%e bargaining/ plant discipline and satisfactor! trade union relations/ are the principal items 4hich determine the :ualit! of industrial relation. 7c8 T#e /e$"are /or9 un+erta9en &- t#e go,ernment5 the trade unions and emplo!ers creates and maintains good and labour management relations and pa%es the 4a! for industrial peace.

061 Maintenance o" In+ustria$ *eace) In+ustria$ #armon- an+ (eace can &e esta&$is#e+ i")
7a8 A mac#iner- "or t#e (re,ention an+ sett$ement of industrial dispute is pro%ided in the form of legislati%e enactments and administrati%e action 7for e,ample/ the "rade Knion 'ct/ the )ndustrial Disputes 'ct/ and )ndustrial -mplo!ment 'ct82 4or3s committees and joint management councils2 conciliation officers and conciliation boards2 labour courts/ industrial tribunals/ national tribunals/ courts of en:uir!2 and %oluntar! arbitration2 7b8 T#e go,ernment #as arme+ itse$" /it# a((ro(riate (o/ers to refer disputes to an adjudicator 4hen the situation gets out of control and the industr! is faced 4ith economic collapse because of stri3es/ or 4hen it is urgent and in the public interest to so refer disputes for adjudication2 7c8 T#e go,ernment #as t#e (o/er to maintain t#e status .uo5 and e,ercises it 4hen id disco%er that/ after a dispute has been referred to an adjudicator/ a stri3e or loc3out continues/ and that stri3e or loc3out is li3el! to ad%ersel! affect the economic life of the communit! or create chaotic conditions in an industr!.

7d8 T#ere is (ro,ision "or &i(artite an+ tri(artite "orms o" t#e sett$ement o" +is(utes 4hich operate on the basis of the Code of Discipline in )ndustr!/ the Code of Conduct/ the Code of -fficienc! and &elfare/ and on the basis of Model #tanding Orders/ *rie%ance Redressal Procedure and the grant of %oluntar! recognition to trade unions b! industrial organizations2 and 7e8 T#ere is (ro,ision "or &i(artite an+ tri(artite "orms o" t#e sett$ement o" +is(utes 4hich operate on the basis of the Code of Discipline in )ndustr!/ the Code of Conduct/ the Code of -fficienc! and &elfare/ and on the basis of Model #tanding Orders/ *rie%ance Redressal Procedure and the grant of %oluntar! recognition to trade unions b! industrial organizations2 and 7f8 Im($ementation an+ E,a$uation Committees are created and maintained for the specific purposes of ensuring the implementation of agreements/ settlements and a4ards/ and of loo3ing into an! %iolations of statutor! pro%isions of the %arious labor la4s.

0iii1 In+ustria$ !emocrac-) 'n )ndustrial democrac! can be established in a countr! if

7a8 T#ere are 8oint Management Counci$s 4hich endea%our to impro%e the 4or3ing and li%ing conditions of emplo!ees/ to step up their producti%it!/ to encourage suggestions from 4or3ers/ to assist in the administrations of labour la4s and agreements/ to ser%e as a channel of communication bet4een management and 4or3ers/ to create in latter of sense of participation in the decision ma3ing process and a sense of belonging to an organisation2 7b8 T#ere is a recognition o" #uman rig#ts is an in+ustr- a recognition of the fact that 0labour is no longer an article r a commodit! of commerce1 4hich can be bought and disposed of at the 4hims and caprices of an emplo!er2 the 4or3ers are human beings 4ho should be treated as human beings/ 4ho should allo4ed to de%elop and 3eep their self6 respect/ so that understand and appreciate their role in the organisation to the! belong/ and their urge for self e,pression/ through association 4ith the management/ ma! be satisfied2 7c8 T#ere is increase+ $a&our (ro+ucti,it-' "he factors contribute to higher producti%it! are impro%ement in the effort s3ills of the 4or3ers2 impro%ements in the production design an process of manufacture/ in the materials and e:uipment used la!out and methods of 4or32 impro%ements in research and in techni:ues of manufacture/ including special studies of technolog! de%elopments in the industr! else4here in follo4ing capital intensification 4ithin the frame4or3 of the same technolog!2 and impro%ement in management methods and practice and 7d8 T#ere is suita&$e materia$ an+ socia$ en,ironment5 to 4hich 4or3ers ma! adjust and adopt themsel%es 4hile the! are at 4or3 in an organization/ for it is this en%ironment 4hich 4ould stimulate or depress them/ 4hich 4ould impro%e or harm labor6 management relations/ particularl! if 4e bear in mind the fact that the en%ironmental grie%ances of 4or3s ha%e a profound influence on industrial relations. )t is ob%ious from the foregoing that the function of industrial relations is to bring about solutions of conflicts bet4een labor and management conflicts bet4een objecti%es and %alues/

bet4een the profit moti%e and social gain/ bet4een discipline and freedom/ bet4een authorit! and 4or3ers/ bet4een bargaining and cooperation2 and these solutions should be in the interests of the indi%idual/ the group and the communit!. )n a d!namic societ!/ industrial relations should be based on an integrated and s!nthetic approach/ and should aim at the de%elopment of a common social/ cultural and ps!chological understanding on the one hand and restraining the conflict or struggle comple, on2 the other. "he philosoph! behind industrial relations in a democratic set6up is to ensure the dignit! and 4elfare of the indi%idual/ so that he ma! de%elop into a good citizen/ so that he ma! be free from domination/ regimentation or arbitrar! authorit!/ 4hether this authorit! is e,ercised b! a management/ trade union officials or go%ernment officials.


"oda!9s professional industrial relations director/ or b! 4hate%er title he is designated/ no longer %ie4s hi job as personalizing management/ or that of a social 4or3ers in a factor!/ or a union buster. He loo3s upon his departments as an adjunct to management super%ision at all le%els2 he 3eeps other e,ecuti%es informed about ne4 disco%eries/ programme trends and needs. 't the same time he pro%ides efficient ser%ice in the operation of se%eral centralized ser%ices. A success"u$ in+ustria$ re$ations (rogramme re"$ects t#e (ersonne$ ,ie/(oint5 /#ic# is in"$uence+ &- t#ree main consi+erations 7a8 )ndi%idualized thin3ing2 7b8 Polic! a4areness2 and 7c8 -,pected group reaction. )ndi%idualized thin3ing ma3es it imperati%e for the administrator to consider the entire situation in 4hich the affected indi%idual is placed. Polic! a4areness underscores the idea of the consistenc! of treatment and the precedent %alue of an! decision 4hich a management ta3es2 4hile e,pected group reaction balances 4hat 4e 3no4 of human nature in groups against in indi%idual9s situation in the light of the polic! that ha%e been formulated and implemented. )n all these different circumstances/ realit! demands that all the three aspects of he personnel %ie4point should be considered at once in terms of the le%els of management from the top to the bottom/ from the top e,ecuti%es and staff to the line and super%isor! personnel.

Sco(e o" In+ustria$ Integration <or9

"he #taff emplo!ed in the industrial relations department should 3no4 the limitations 4ithin 4hich it has to function. "he industrial relations director generall! has se%eral assistants 4ho help him to perform his functions effecti%el!2 and he usuall! reports directl! $to the president or chairman of the board of directors of an organisation. T#e "unctions o" t#e in+ustria$ re$ations sta"" are)


7i8 7ii8 7iii8 7i%8 7%8 7%i8 7%ii8

'dministration/ including o%erall organisation/ super%ision and coordination of industrial relations policies and programmes. Aiaison 4ith outside groups and personnel departments as 4ell as 4ith %arious cadres of the management staff. "he drafting of regulation rules/ la4s or orders/ and their construction and interpretation. Position classification/ including o%erall direction of job anal!sis/ salar! and 4age administration/ 4age sur%e! and pa! schedules. Recruitment and emplo!ment of 4or3ers and other staff. -mplo!ment testing/ including intelligence tests/ mechanical aptitude tests and achie%ement tests. Placement/ including induction and assignment.

7%iii8 "raining of apprentices/ production 4or3ers/ foremen and e,ecuti%es. 7i,8 7,8 7,i8 7,ii8 Performance reports or merit ratings. -mplo!ee counselling on all t!pes of personnel problems educational/ %ocational/ health or beha%iour problems. Medical and health ser%ices. #afet! ser%ices/ including first aid training

7,iii8 *roup acti%ities/ including group health insurance/ housing cafeteria programmes and social clubs. 7,i%8 #uggestion plans and their uses in labour/ management and production committees. 7,%8 -mplo!ee relations/ collecti%e bargaining representati%es/ and settling grie%ances.

7,%i8 Public relations 7,%ii8 Research in occupational trends and emplo!ee attitudes/ and anal!ses of labour turno%er. 7,%iii8 -mplo!ee records for all purposes. 7,i,8 Control of operation sur%e!s/ fiscal research and anal!sis 7,,8 +enefit/ retirement and pension programmes

'n idea of an industrial relations programme in a t!pical industrial organisation ma! be had from Chart.

Functiona$ Re.uirements o" a Success"u$ In+ustria$ Re$ations *rogramme


T#e &asic re.uirements on /#ic# a success"u$ in+ustria$ re$ations (rogramme is &ase+ are 7a8 To( Management Su((ort) #ince industrial relations are functional staff ser%ice/ it must necessaril! deri%e its authorit! from the line organisation. "his is ensured b! pro%iding that the industrial relations director should report to a top line authorit! to the president/ chairman or %ice president of an organisation2 7b8 Soun+ *ersonne$ *o$ices5 "hese constitute the business philosoph! of an organisation and guide it in arri%ing at its human relations decisions. "he purpose of such policies is to decide/ before an! emergenc! arises/ 4hat shall be done about the large number of problems 4hich crop up e%er! da! during the 4or3ing of a organisation. Policies can be successful onl! 4hen the! are follo4ed at all the le%els of an enterprise/ from top to bottom 7c8 A+e.uate (ractice s#ou$+ &e +e,e$o(e+ &- (ro"essiona$s the field to assist in the implementation of the policies of organisation. ' s!stem of procedures is essential if intention is to be properl! translated into action. "he procedures and practices of industrial relations department are the 0tools of management1 4hich enable a super%isor to 3eep ahead of his job that the time 3eeper rate adjuster/ grie%ance reporter and merit rater.

EM*LO>EE <ELFARE AN! SAFET> Em($o-ee Sa"et-mplo!ee 4elfare/ safet! and health problems at 4or3 ha%e been engaging attention of the ps!chologists/ sociologists and industrial engineers Ps!ch are concerned 4ith the theoretical considerations of accident causation and the research into accident control/ through proper selection/ training and education of the emplo!ee5 and the social and ps!chological factors that influence the indi%idual9s beha%iour in general. -ngineers and safet! officers usuall! render necessar! practical ad%ice on certain aspects of safet! in industr!. "he! loo3 upon pre%ention of accidents basicall! as an engineering problem to be tac3led through proper designing of mechanical safet! de%ices. )n fact/ accident pre%ention and safet! are inter related and/ therefore/ re:uire a multi6dimensional approach. )ts importance had increased because of large6 scale industrialization in 4hich human beings are subject to mechanical/ chemical/ electrical and radiation hazards. +esides/ modern industr! is characterized b! complicated mechanisms/ intricate job re:uirements/ and fast mo%ing production lines. One of the important conse:uences of all this is increased dangers to human life/ through accidents.

In+ustria$ Acci+ent an+ In+ustria$ In%ur"he life of industrial 4or3ers is full of ris3s and hazards. -%er! !ear lots of emplo!ees are injured in factories/ mines/ rail4a!s/ ports and doc3s/ leading to acute ailments or permanent handicaps. "he injuries ma! be caused as a result of an! unsafe acti%it!/ or act on their part or chance occurrences 7li3e 4al3ing past a plate6glass 4indo4 just as someone hits a ball through it8 or as a result of some unsafe 4or3 conditions or unsafe acts of emplo!ees themsel%es/ or

defecti%e plant or shop la! out/ inade:uate %entilation/ unsafe and insufficient lighting arrangements/ or insufficient space for mo%ement inside the plant or shop/ etc. 'n industrial accident ma! be defined as 0an occurrence 4hich )nterrupts or interferes 4ith the orderl! progress of 4or3 in an industrial establishment1. 'ccording to the (actories 'ct of is $an occurrence in an industrial establishment causing bodil! injur! to a person 4hich ma3es him unfit to resume his duties in the ne,t D= hours1. )n other 4ords/ it is an une,pected e%ent neither anticipated nor designed to occur. )t is al4a!s sudden gradual process does not constitute an accident. Moreo%er e%ent or occurrence should be so to 4hich a definite time/ data and place can be assigned. )t must arise in the course of emplo!ment in a factor! or an industrial establishment. He self inflicted injuries or injuries inflicted 4ith the consent person cannot be regarded as accidents. 'n industrial in has been defined as 0a personal injur! emplo!ee 4hich has been caused b! an accident or an occupations disease/ and 4hich arises out of/ or in the course of/ emplo! and 4hich 4ould entitle such emplo!ee to compensation under &or3men9s Compensation 'ct/ ;<BE1

Nature o" Acci+ents

"he nature of an accident ma! %ar! from industr! to industr!. 'n emplo!ee ma! fall from a height 4hile engaged on a particular assignment2 or he ma! be caught in a machine 4hile 4or3ing or he ma! fall against a machine2 or parts of a machine ha%ing a horizontal protruding motion ma! stri3e against him2 or e,plosi%e used carelessl! ma! e,plode/ and injure an emplo!ee. 'ccidents ma! result in disablement or death. Disablement 4hether partial or total 4a! ta3e the form of loss of abilit! to 4or3 or to more. #uch incapacit! ma! be partial or total. +oth t!pes of disablement ma! be temporar! or pert ' temporar! partial disablement reduces the earning capacit! of indi%idual in the emplo!ment in 4hich he 4as engaged 4hen he sustained an injur! at the time of the accident2 4hile a permanent partial disablement is that 4hich reduces his abilit! to earn income from an emplo!ment 4hich he 4as capable of under at the time the accident occurred. He is entitled to compensation onl! to the e,tent to 4hich his abilit! to earn is reduced impair. "otal disablement/ on the other hand/ is a disablement/ 4hether temporar! or permanent/ 4hich incapacitates a 4or3man ma3es it impossible for him to engage in an! 4or3 4hich he capable of performing at the time of the accident 4hich resulted that disablement. )n these circumstances/ he is entitled to compensation.

Causes o" Acci+ents

'ccidents are usuall! the result of a combination of factors/ each one of 4hich ma! %er! from situation to situation combination ma! be of unsafe acts and e:uipment/ of people/ factors and conditions. )t has been rightl! said that an accident does not ha%e a single cause but a multiplicit! of causes/ 4hich are often closel! related. 'ccording to safet! e,perts there are three basic causes.factors that contribute to accidents in organisation. Chances occurrences/ unsafe conditions and unsafe acts on the part of emplo!ees.

;. Unsa"e Con+itions 0/or9 re$ate+ causes1) "hese/ of one sort or another/ are the biggest cause of accidents. #uch causes are associated 4ith defecti%e plants/ e:uipment/ tool/ materials/ buildings/ etc. "hese can be termed $technical causes9. "he! arise 4hen there are improper or inade:uate safet! guards on machines2 4hen machines brea36do4n2 4hen improper personal protection e:uipment is installed2 4hen mechanical or construction designs are defecti%e and unsafe2 and 4hen control de%ices/ 4hich ha%e been installed to ma3e the operations of machines safe and accident free are lac3ing or defecti%e2 or 4hen there is an absence of proper maintenance and super%ision of these de%ices. T#us5 unsa"e con+itions inc$u+e 7i8 7ii8 7iii8 7i%8 7%8 7%i8 7%ii8 )mproperl! guarded e:uipment. Defecti%e e:uipment. Hazardous arrangement or procedure in/ around/ machines or e:uipment. Knsafe storage2 congestion2 o%erloading2 )nade:uate safet! de%ices &rong and fault! la! out/ and bad location )mproper illumination glare/ insufficient light.

7%iii8 )mproper %entilation insufficient air charge/ impure air source 7i,8 Poor house63eeping

T#e ot#er /or9 re$ate+ causes o" acci+ents are) 7a8 he "o# itself: #ome jobs are inherentl! more dangerous than others/ such as the job of crane man in comparison to that of the foreman. #imilarl!/ 4or3 in some departments 7li3e personnel8 is inherentl! safer than the 4or3 7line production department8. 7b8 *or$ schedules: 'ccidents increase late in the da!. "he! do not usuall! occur during the earl! hours of the 4or3 da!. "he! are more fre:uent during the night shift. "his is due partl! to fatigue partl! to the fact that night is the 4hen one re:uires rest. 7c8 Psychological climate of the &or$ place: also affects the accident rate. Ps!chological/ mental and emotional imbalances are at the root of se%eral accidents. -motionall! disturbed and mentall! pre6occupied persons meet more accidents than a normal person. "he ps!chological factors associated 4ith accidents are fatigue/ an,iet!/ 4ea3ness/ o%er4or3/ monoton!/ boredom/ lac3 of self6co6incidence/ and frustration. (atigue often has a ps!chological origin/ and ma! result to social prestige' 7d8 9nsafe Acts: "hese acts ma! be the result of the 3no4ledge or s3ill on the part of the emplo!ee/ certain bodil! and 4rong attitudes' T#ese acts inc$u+e acts $i9e) 7i8 Operating 4ithout authorit!

7ii8 7iii8 7i%8 7%8 7%i8 7%ii8

(ailing to secure e:uipment or 4arning other emplo!ees of possible danger. (ailing to use safe attire or personal protecti%e e:uipment "hro4ing materials on the floor carelessl!. Operating or 4or3ing at unsafe speeds/ either too fast or too lo4. Ma3ing safet! de%ices inoperati%e b! remo%ing/ adjusting disconnecting them. Ksing unsafe e:uipment/ or using e:uipment unsafel!.

7%iii8 Ksing unsafe procedures in loading/ placing/ mi,ing/ and combining. 7i,8 7,8 7,i8 7,ii8 "a3ing unsafe positions under suspended loads. Aifting improperl!. Cleaning/ adjusting/ oiling/ repairing/ etc. moti%e dangerous e:uipment. Distracting testing/ abusing/ starting/ :uarreling/ da! dreamining/ horsepla!.

A' Ot#er Causes ) "hese causes arise out of unsafe situational and climate conditions and %ariations6such as bad 4or3ing conditions/ rough and slipper! floors/ e,cessi%e glare/ heat/ humidit!/ dust and fume6laden atmosphere2 %er! long hours of 4or32 unsatisfactor! beha%iour of domineering super%isor2 e,cessi%e noise and carelessness in the handling of such inflammable materials such as gasoline/ oil and grease/ e,plosi%es/ etc. Certain &roa+ conc$usions can &e +ra/n on t#e &asis o" e?(erience an+ stu+ies un+erta9en &- (s-c#o$ogica$5 suc# as) 7i8 7ii8 7iii8 7i%8 7%8 7%i8 Coung/ untrained and ne4 4or3ers generall! injuries more fre:uentl! than older/ train e,perienced emplo!ees. "hose addicted to alcoholism and drugs/ and those suffer from boredom and fatigue or indulge in e,hibitionism/ generall! account for a higher rate of accidents. Knmarried emplo!ees generall! ha%e more accidents married emplo!ees. 'ccidents are more fre:uent during the night shift &omen emplo!ees ha%e a better safet! record than male counterparts. &or3ers 4ho 4or3 under stress/ or 4ho feel their jobs are threatened or insecure/ seem to ha%e more accidents those 4ho do not.


-mplo!ees should be taught the principles of first aid/ the need for a%oiding machine hazards/ for ta3ing precautions to pre%ent the outbrea3 a fire/ for using hand tools properl! and for protecting his e!es. #afet! publicit! should be underta3en b! displa!ing posters screening films/ and b! arranging safet! suggestion schemes.

Sa"et- Contests) #ome companies encourage safet! competitions among their departments 4ith a %ie4 to bringing a reduction in the number of accidents. !isci($inar- Action) to enforce plant rules go%erning safet!/ emplo!ees are reprimanded/ fined/ laid off or e%en discharged are found guilt! of an! %iolations. &hile positi%e moti%ation to ensure the obser%ance of safet! rules is loo3ed upon as the approach to the problems of safet!/ a negati%e moti%ation/ in form of punishment/ does ha%e its o4n proper place in safet! programmes. Acci+ent Ana$-sis an+ Ta&u$ation) "he safet! director must in%estigate and report on e%er! accident. He should/ moreo%er periodicall! summaries all the injuries 4hich ha%e been sustained emplo!ees during a particular period of time/ and classif! the plant64ise/ department64ise/ and shift64ise. He should classif! the causes and 3inds of those injuries/ and mention 4hether the! 4ere disabling or not. Records are useful because the! help to identif! the areas in 4hich further action is called for the achie%e impro%ement in safet! programmes and compare the records 4ith the past ones.

Statutor- *ro,ision "or Sa"et- in In+ia

"he (actories 'ct contains specific pro%isions for the safet! of 4or3ers. "hese are referred to in sections B; to DM. "he! are Fencing o" Mac#iner-) it is obligator! on the part management to fence machiner! 4ith guards of a subs construction/ 4hich shall be maintained and 3ept in position 4hen an! part of the machiner! is in motion. <or9 on or Near Mac#iner- in Motion) 'n! e,amination/ adjustment or lubrication of na! part of an operating machine shall be effected or carried out b! a speciall! trained male 4or3er 4earing tight6fitting clothing. "his 4or3er/ ho4e%er/ shall not handle a belt on a mo%ing pulle!. 7a8 )f the belt is more than fifteen centimeters in 4idth2 7b8 Knless the belt joint is either laced or flushed 4ith the belt2 7c8 Knless the pulle! is normal for the purpose of a dri%e and not a fl!64heel or a balance 4heel2 7d8 Knless the belt/ including the joint and the pulle! rim/ is in a state of good repair2 7e8 Knless there is a reasonable clearance bet4een the pulle! and an! fi,ed part of a machine or structure2 7f8 Knless a secure foothold and/ 4here necessar!/ a secure handhold are pro%ided for the operator2 and 7g8 Knless the ladder to be used for carr!ing out an! e,amination/ adjustment or lubrication of an! part of a machine is securel! fi,ed or lashed or is firml! held b! another person. No 4oman or adolescent is allo4ed to clean/ lubricate or adjust an! part of a machine 4hich is in motion if it is li3el! to e,pose her or him to the ris3 of injur! from na! mo%ing part.

Em($o-ment o" A+o$escents on !angerous Mac#ines) No adolescent shall be allo4ed to 4or3 on an! machine 4hich posses a danger to him unless. 7a8 He has been full! instructed to be4are of the particular danger that is li3el! to arise from the machine and to obser%e the necessar! precautions2 and 7b8 He has recei%ed training on that machine or is under the super%ision of a person 4ho has a thorough 3no4ledge of and e,perience in 4or3ing on/ the machine. #tri3ing *ear or De%ice for Cutting off Po4er5 in e%er! factor!/ a suitable stri3ing gear or other efficient mechanical appliance shall be pro%ided and maintained. Dri%ing belts/ 4hen not in use/ shall not be allo4ed to rest or ride on a shaft in motion #uitable de%ices for Cutting off po4er in an emergenc! shall be pro%ided and maintained in e%er! 4or3 room. &hen a de%ice/ 4hich is li3el! to be inad%ertentl! shifted from the 0off1 to the 0on1 position/ is pro%ided in a factor! to cut off Po4er arrangements should be made to loc3 it in a safe position 4ith a %ie4 to pre%enting an! accidental starting of the transmission machiner! or an! other machines to 4hich the de%ice is fitted. Se$"-Acting Mac#ines) No trans%erse part of self6acting machine and no material carried thereon shall be allo4ed to run on its out4ard or in4ard trans%erse 4ithin a distance of D> centimeters from an! fi,ed structure 4hich is not a part of the machine. *ro#i&ition o" Em($o-ment o" <omen an+ C#i$+ren near Cotton-O(eners) No 4oman or child shall be emplo!ed in an! part of a factor! to press cotton 4hen a cotton6opener is at 4or3. +ut if the feed end of a cotton6opener is in a room 4hich is separated from the deli%er!6end b! a partition e,tending to the roof or to such height as the factor! inspector ma! specif! in 4riting/ 4omen children ma! be emplo!ed in that part of the room in 4hich feed end is situated. Hoists an+ Li"ts) )n e%er! factor!/ hoists and lifts shall be good mechanical construction and of sound material2 and the! shall be sufficientl! strong and properl! maintained. -%er! hoist64a! lift64a! shall be ade:uatel! protected b! a proper enclosure fitted 4ith gates. "he ma,imum safe 4or3ing load shall be clearl! indicated on e%er! hoist or lift. ' hea%ier load shall not be allo4 be carried on that hoist or lift. Li"ting Mac#ines5 Tac9$es5 C#ains an+ Ro(es 5 )n e%er! factor!/ lifting machines/ tac3les/ chains and ropes shall be of good construction and of sound material. "here shall be free from def and strong enough to carr! the necessar! loads. Re,o$,ing Mac#iner-) )n e%er! room in 4hich grinding jobs carried on/ a notice indicating the ma,imum 4or3ing speed of/ machine shall be fi,ed near it. *ressure *$ant) )n an! operation 4hich is carried out on pressure 4hich is higher than the atmospheric pressure/ effecti%e measures should be ta3en to ensure that the safe 4or3ing pressure is not e,ceeded. F$oors5 Stairs5 an+ Ot#er Means o" Access) 'll doors/ step/ stairs/ passages and gang4a!s shall be of sound construction and shall be 3ept and maintained in a state of good repair2 and the! shall be free of obstructions. No substance/ 4hich is li3el! to cause a person to slip/ shall be 3ept near them.

Necessar! pro%ision should be made for secure handhold fencing to ensure the safet! of persons 4or3ing at a place from 4here he is li3el! to fall from a distance e,ceeding t4o meters. Pits and Openings in (loor5 )n e%er! factor!/ e%er! fi,ed tan3/ pit or opening in the floor/ 4hich ma! be a source of danger/ shall be securel! co%ered or securel! fenced. -,cessi%e &eights5 No person shall be emplo!ed in an to lift/ carr! or mo%e an! load 4hich is so hea%! as to cause him a possible injur!. *recautions Against !angerous Fumes) No person emplo!ed in a factor! shall be allo4ed to enter an! chamber/ tan3/ %at/ pit/ flue or such other confined place in 4hich dangerous fumes are li3el! to be present to such an e,tent as to constitute a hazare unless such chamber/ tan3 %at/ pit/ or flue is pro%ided 4ith a manhole of a large enough size of 4ith similar other means of egress. *recautions against t#e Use o" *orta&$e E$ectric Lig#ts) )n an! factor!5 7a8 No portable electric light or na! other electric appliance of a %oltage e,ceeding BD %olts shall be permitted for use inside and chamber/ tan3/ %at/ pit/ flue/ or confined place2 7b8 )f an! inflammable gas/ fume or dust is li3el! to be present in such chamber/ tan3/ %at/ pit/ flue/ or confined place/ no lamp or light other than the one 4hich is flame6proof/ shall be permitted to be used therein. 7c8 -,plosi%e or )nflammable *as or Dust5 &hen/ in an! factor!. 'n! manufacturing process produced dust/ gas/ fume or %apour of such nature and to such an e,tent that is li3el! to e,plode on ignition/ all practical measures shall be ta3en to pre%ent such e,plosion b! a. 'n effecti%e enclosure of the plant or machiner! used in the process2 b. "he remo%al or pre%ention of accumulated dust/ gas or fume2 and c. "he e,clusion or effecti%e enclosure of all possible sources of ignition.

*recautions in Case o" Fire) T#e "o$$o/ing (recautions s#a$$ &e ta9en
a. -,it doors shall not be loc3ed or fastened and shall be capable of being easil! opened2 and the! shall be so constructed as to open out4ards2 b. Proper means of escape shall be pro%ided e%er! industrial establishment2 c. -%er! door/ 4indo4 or other e,it/ through 4hich persons can escape in the e%ent of a fire/ shall be distinctl! mar3ed in red letters in a language that is understood b! 4or3ers2 d. Proper arrangements shall be made to raise an alarm in the e%ent of a fire2 it 4ould be preferabl! if a siren is sounded so that 4or3ers ma! recognize the signal as an indication that a fire has bro3en out some4here in the factor! premises2 e. 'll the e,its should be easil! and freel! accessible to all the 4or3ers in e%er! place in the factor! premises/ so that the! can easil! ma3e their escape 4hen a fire brea3s out2 and

f. ' 4or3er shall be trained in the routine to be follo4ed in the e%ent of a fire in the factor! premises. Sa"et- o" Bui$+ing an+ Mac#iner-5 &hen a building or machiner! poses a danger to 4or3ers/ it shall not be used till it has been suitabl! repaired or altered.

A+ministration o" !isci($ine

"he 4ord discipline connotes that the members of the group should reasonabl! confirm to the rules and regulations 4hich ha%e been framed for it or b! it so that e%er! one ma! benefit b! them.

!isci($ine Meaning
)t obser%ed the rules/ regulations and procedure 4hich are deemed to be necessar! to the attainment of an objecti%e2 it is force or fear of force 4hich restrains an indi%idual or a group form doing things 4hich are to be destructi%e of the group objecti%es. )t is also the e,ercise of restraint or the enforcement of penalties of the %iolation of group regulations.1 'ccording to the &ebster9s Dictionar! the 4ord discipline means it is the $training that corrects/ moulds/ strengthen or perfects9. 'ccording to :rd+a- 0ead; 0discipline is the orderl! conduct of affairs b! the members of an organisation 4ho adhere to its necessar! regulations because the desire to co6operate harmoniousl! in for4arding the end 4hich the group has in %ie4/ and 4illingl! recognize that/ to do this their 4ishes must be brought into a reasonable unison 4ith re:uirements of the group in action.

T#e C#aracteristics o" !isci($ine ma- &e note+ as &e$o/

)t is determinati%e and positi%e 4illingness 4hich prompts indi%iduals and groups in congruence. )t is negati%e approach 4hich encourages indi%iduals to underta3e some acti%ities and 4hich restrains then form underta3ing others. )t is a puniti%e or a big stic3 approach.

Aim an+ o&%ecti,e o" !isci($ine

"o obtain a 4illing acceptance of the rules/ regulations and procedures of an organization so that organizational goals ma! be attained. "o impact an element of certaint! despite se%eral differences in informal beha%iour patterns and other related changes in an organisation "o de%elop among the emplo!ees a spirit of tolerance and a desire to ma3e adjustments. "o gi%e see3 direction and responsibilit!

"o create an atmosphere of respect for the human personalit! and human relations and "o increase the 4or3ing efficienc! and morale of the emplo!ees so that their producti%it! is stepped up/ the cost of production brought do4n and the :ualit! of production impro%ed.

Form an+ T-(es o" !isci($ine

;. Positi%e or #elf )mpose Discipline is also called as co6operati%e discipline or determinati%e discipline. B. -nforce or Negati%e Discipline it is also 3no4n as Puniti%e/ Correcti%e or autocratic discipline. Causes o" In+isci($ine an+ Miscon+uct "he rules of discipline/ 4hich a person is called upon to accept/ must not/ ho4e%er/ %iolate the rights of the indi%idual/ these rights are5 "he right of e%er! man to be treated as an indi%idual and respected as a person. "he right of e%er! man to ha%e a %oice in his o4n affairs/ 4hich includes his right to contribute/ to the best of his abilit!/ to the solution of common problems. "o right of e%er! indi%idual to ha%e recognition of his contribution to the common good. "he right of e%er! person to de%elop his higher abilities and to ma3e use of them. "he right of e%er! man to justice and hair pla!. "o right to get fair 4ages for the 4or3 he has done2 and "he right to securit! of ser%ice. "he main causes of indiscipline are Non6placement of the right person on the right job. Kndesirable beha%iour of senior to the sub6ordinates (a%oritism been used at the time of performance appraisal Aac3 of up64ard communication &ea3/ fle,ible/ incompetent and distrustful leadership Defecti%e super%ision Aac3 or proper dra4n rules and regulation "he 0dri%e and rule1 polic! of the management

)lliterac! and lo4 intellectual le%el of 4or3ers &or3ers reaction to4ards the rigidit! and multiplicit! of rules &or3ers personnel problems +ad 4or3ing conditions )nborn tendencies to %iolate the rules 'bsence of futures thin3ing -rrors of judgment b! the top management Discrimination based on caste/ colour/ languages/ gender. Kndesirable management practices )mproper coordination/ delegation of authorit! Ps!chological and sociological reasons

*rinci($es "or Maintenance o" !isci($ine

Yoder, Heneman, 0#rnb#ll and Harold )tone ha%e outlined the principles for maintenance of Discipline are5 &ith the consultation of representati%e of emplo!ees rule should be framed. Rules should be appraised at fre:uent and regular inter%als Rules should %er! 4ith changes in the 4or3ing conditions of emplo!ees Kniform enforcement of rules 4ill bring the effecti%eness 'd%ance intimation regarding the %iolation of rules must be handled -,treme caution should be e,ercise to ensure that infringements are not encouraged.

Basic Ingre+ients or Gui+e$ines o" a +isci($inar- action)

"he principles ingredients of a sound disciplinar! s!stem are Correct location of responsibilit! Proper formulation and communication of rules Rules and regulation should be reasonable -:ual treatment should be maintained Disciplinar! action should be ta3en in pri%ate.

)mportance of promptness in ta3ing disciplinar! action )nnocence is presumed *et the facts 'ction should be ta3en in cool atmosphere Natural justice should be follo4ed 'fter a disciplinar! action has been ta3en the super%isor should treat his subordinate in a normal manner Don9t +ac3 do4n 4hen !ou are right. Negati%e motion should be handled in a positi%e manner.

*roce+ure "or +isci($inar- action

"he specific procedures should be follo4ed at the time of disciplinar! action are5 ;. 'n accurate statement of the disciplinar! problem should be prepared B. Collection of data or facts bearing on the case must be organized E. #election of tentati%e penalties to be imposed D. "he choice of the penalt! should be decided >. )mplementing the penalt! F. (ollo46up on disciplinar! action EM*LO>EE MOTI ATION) Ksuall! one or more of these 4ords are included in the definition5 Desires &ants 'ims *oals Dri%es Moti%es )ncenti%es

$Moti%ation9 is a Aatin 4ord/ meaning $to mo%e9. Human moti%es are internalized goals 4ithin indi%iduals as 7ereson and )teiner; $' moti%e is an inner state that energizes/ acti%ates/ or mo%es and directs or channels/ beha%iour to4ard goals9 'ccording to )tanford and Wright man describe a moti%e thus5 $it is a restlessness/ a lac3/ a force/. Once in the grip of a moti%e/ the organism does something. )t most generall! does something to reduce the restlessness/ to remed! the lac3/ to alle%iate !en/ to migrate force. Moti%ation defined b! Ailies5 0)t is a stimulation of an! emotion or desire operating upon one9s 4ill and prompting or dri%ing it to action1. 'ccording to the -nc!clopedia of management5 0Moti%ation refers to degree of readiness of an organism to pursue some designated goal/ and implies the determination of the nature and locus of the forces/ including the degree of readiness.1

O&%ecti,e o" Moti,ation

T#e (ur(ose o" moti,ation is to create con+itions to/ar+s t#e (eo($e /#o are /i$$ing to /or9 /it# Ueal 6 6 6 6 6 6 6 6 )nitiati%e )nterest -nthusiasm High personal and group moral satisfaction &ith the sense of responsibilit! Ao!alt! and discipline Pride and confidence )n a cohesi%e manner

&ith the all abo%e said factors the goals of an organisation are achie%ed effecti%el!.

C$assi"ication o" Moti,es

Accor+ing to Murra-5 moti,es &een c$assi"ie+ into "i,e t-(es) ;. Homeostatic Moti,es 7such as moti%es for thirst/ hunger/ rest/ sleep82 B. Se?ua$ Moti,es are (o/er"u$ moti,es and their influence upon 4or3 beha%iour can be %er! pronounced2 E. Emotiona$ Moti,es 7such as fear/ anger/ range/ hate/ terror/ an,iet!/ lo%e/ etc.8. )ndi%idual commit themsel%es to occupations/ jobs/ organizations and 4or3 groups as a result of their emotional moti%es2 D. Intrinsica$$- Moti,ate+ Be#a,iour 7such as curiosit!/ cognition82 and

>. Socia$ Moti,es 7achie%ement moti%ation and affiliation moti%ation8

T-(es o" Moti,ation

;. Positi!e or 6ncenti!e Moti!ation: 'ccording to (lippo/ $Positi%e moti%ation is a process of attempting to influence other to do !our 4ill through the possibilit! of gain or re4ard1. Accor+ing to *eter !ruc9er5 0the real and positi%e moti%ators are responsible for placement/ high standard of performance/ information ade:uate for self control and the participation of the 4or3ers as a responsible citizen in the plant communit!. :( Negati!e for Fear Moti!ation E. 1;trinsic Moti!ation li3e promotion/ status/ fringe benefits/ retirements plans/ health insurance schemes/ holida!s and %acation. D. 6ntrinsic Moti!ation are praise/ responsibilit!/ reorganisazation/ esteem/ po4er/ status/ competition and participation are e,amples of such moti%ation.

Ste(s in Moti,ation
ucius has obser%ed and adopted the follo4ing steps in moti%ation5 ;. #izing up situation/ re:uiring tools B. Preparing a set of moti%ating tools E. #electing and appl!ing an appropriate moti%ation D. (ollo4ing up the results of the application

Management Tec#ni.ue !esign to Increase Moti,ation

Management generall! uses financial and non financial moti%ation techni:ues to moti%ate their emplo!ees. ;. (inancial Moti%ation B. Non (inancial Moti%ation li3e 6 6 6 6 6 6 'ppraisal/ praise and prestige #tatus and price Compensation Delegation of 'uthorit! Participation ob #ecurit!

6 6 6 6 6 6

ob Rotation ob -nlargement ob Aoading ob -nrichment Reinforcement Nualit! of 4or3 life

Gui+e$ines "or Moti,ating Em($o-ees an+ t#e Managers)

Some o" t#e suggestions "or t#e gui+ance o" moti,ating t#e (eo($e are $iste+ &e$o/) Management should treat the people 4ith respect and honest! "o achie%e to goal sub6ordinate should e:uipped 4ith the proper instruction and guidelines "he! should maintain the concrete feed bac3 s!stem Management should a%oid the dissatisfies into the job Management should set fair/ achie%able goals and communicate to the emplo!ees "he people should 3no4 the feed bac3 s!stem 'll such techni:ues li3e M+O/ ob enrichment and morale maintenance/ job anal!sis/ must be implemented.

T#e *osition in In+ia

)n the )ndian conte,t/ it ma! be said that ph!siological needs are still dominant in man! industries as in de%eloped countries. 's for safet! needs these ta3e the firm of job securit!/ securit! against hazards of life and securit! ha%e been designed to satisf! some of these needs. 's for the higher social needs/ the! are not eas! to satisf!. Ho4e%er/ close relationships are built 4ith at least some fello4 4or3ers. -go needs are satisfied to a %er! limited e,tent2 4hereas self6 realization or self6actualization ta3es place %er! seldom.

T#e C#anging Nature or Human Nee+s

's Maslo4 pointed out/ 0-ach need is not completel! e,clusi%e of other needs/ but the indi%idual9s concentrations of interests in seen as %ariable and changing.1 's satisfaction in one area is obtained/ interest mo%es to another focus. "he effect of the progressi%e need fulfillment is to suggest that 4hile all indi%iduals are need6oriented and their needs ha%e some common basis/ not e%er! indi%idual feels the same needs at a gi%en point of time. #tud! underta3en b! the K#' Depts. Of Aabour has brought out certain interesting obser%ations/ e.g./ 0)nteresting 4or31 4as placed on the top. 0-nough information to get the job done 4as

second in importance. )n composite figures/ more than >MR of the emplo!ees 4ere 04hile collar personnel. (ein has pro%ided an anal!sis of the data/ regarding differences in job e,pectations of the composite 4or3er/ and blue6collar 4or3ers than for 4hite6collar emplo!ees. On the other hand/1 interesting 4or31 and 0enough authorit!1 appeared particularl! to be of lesser importance to most blue6collar 4or3ers than 4as true of the composite 4or3ers. Hofstede, in an international stud! of emplo!ees in se%en occupational le%els in ;F countries/ has concluded as follo4s5 "he professions e,hibited urgent needs for self6actualization and esteem 7achie%ement and reputation8. Managers had self6actualization esteem and social needs. "echnicians had a mi,ture of self6actualization/ esteem/ social securit! and ph!siological needs. Clerical 4or3ers 4ere most concerned about social needs2 and Kns3illed 4or3ers sought for securit! and ph!siological needs. Hofstede further said that/ 0)t 4ould be a mista3e to conclude that e%er emplo!ee9s needs and e,pectations are identical to those of other emplo!ees. Differences appear b! occupation/ and it should be e,pected that differences occur 4ithin indi%iduals.1 On the basis of this stud!/ a hierarch! seems to appear based upon the organizational le%el of the emplo!ee perhaps certain needs are met as the indi%idual rises up on the hierarch!/ and other needs become more urgent.
Need 7"ension8 achie%ement #earch for satisf!ing goals Perception of 4a!s of satisf!ing 'ttempts to attain goals (rustration *oal

Perception 'lternati%e goal


'ttempts to attain goals

*oal achie%ements

Need 7"ension8 achie%ement

#earch for satisf!ing goals

Perception of 4a!s of satisf!ing

'ttempts to attain goals



Defensi%e beha%iour

Fig' Unsatis"ie+ Nee+s Lea+ to !e"ensi,e Be#a,iour Non6attainment of the goal/ 4hich 4ould satisf! certain needs/ is producti%e of man! serious problems. &hen an indi%idual satisfies his needs in a manner 4hich is acceptable to societ! and 4hich satisfies his 0ego1/ he is 3no4n as an adapti%e or an adjusted person. He is said to posses a

mature beha%iour and personalit!. He is goal6oriented and generall! adopts and fle,ible/ resourceful and problem6sol%ing attitude for he satisfactions of his need. (or this purpose/ he tries different 4a!s to relie%e his tension. He ma! either intensif! his efforts/ or he ma! recognize his perception of the problem/ or ma! adopt substituted goals. "his t!pe of beha%iour is 3no4n as 0Constructi%e beha%iour1 On the other hand/ 4hen one is incapable of satisf!ing/ or fails to satisf! his particular needs/ or satisfied them in a manner that is unacceptable to societ!/ he is 3no4n as a maladjusted/ ma.6 adapted person or a social inade:uate. #ince his needs are not satisfied/ he becomes disorganized/ and adopts unproducti%e measures to sho4 his frustration. "his t!pe of beha%iour is called 0defensi%e beha%iour1 He ma!/ for e,ample/ 4ant to get rich :uic3l! b! gambling or robber!/ or he ma! satisf! his se, desire in illicit relations/ and that of drin3ing b! indulging in illicit distillation. )t should be that 4hen a goal6directed beha%iour is successful/ it leads to a release of tensions and the satisfactions of needs 4hen this is not so/ a frustrated beha%iour de%elops in the form of discouragement/ discontentment/ e,cessi%e complaining/ barging/ l!ing/ jealous!/ fre:uent changes of jobs/ e,cessi%e 4ithdra4al from 4or3/ da!6dreaming/ 4asteful and destructi%e beha%iour/ irritation/ anno!ance/ %e,ation/ etc. (rustration refers to the bloc3ing or th4arting of goal attainment. 'ccording to Maslo4/ 0it is a threatening depri%ation/1 4hich generall! occurs 4hen the dri%e for need satisfaction is th4arted? Men9s tolerance of frustration %aries considerabl!. #ome are %er! easil! affected b! frustration/ other are less so. Conse:uentl!/ under the same circumstances/ one person ma! adopt a beha%iour 4hich is :uite different from that of another. (or e,ample/ 4hen three indi%iduals e,pect to get a pa! raise on a particular da!/ an d if the! do not get it because the 4ea3 financial position of the compan!. ' ma! thin3 of lea%ing the job and ta3e up emplo!ment else4here2 + ma! grumble/ and sho4 hostilit! to4ards the management2 4hile C ma! be patient and continue to 4or3 in the hope that he 4ill recei%e his raise 4hen conditions are normal. &hen people adopt non6rational 4a!s of beha%iour to face frustration/ the! are said to use their defense mechanism. "his term has been used b! ps!chologists because it ser%es to protect an indi%idual9s feeling self64orth in the face of continue frustration. (rench has defined the defense mechanism as 0a non6rational attempt to a%oid the loss of some satisfier. Non6rational defensi%e beha%iour is that of 4hich the indi%idual is either not a4are or o%er 4hich he has little or no control/ in contrast to consciousl! decided upon courses of action chosen from alternati%es.1 )n other 4ords/ 4a!s of thin3ing and beha%ing in circumstances of frustration/ 4hich are not effecti%e problem sol%ing approaches/ are self6decepti%e and ser%e to protect an indi%idual9s self concept. "hese are referred to as defense mechanism. Aa4she and others ha%e classified defense mechanism into four t!pes5 7;8 'ggression2 7B8 Regression2 7E8 (i,ation2 and 7D8 Resignation

'ggression is one 4a! in 4hich frustration can be sho4n. )t is reaction in response to frustration in%ol%ing some 3ind of attac3 direct out 4ard. )t occurs 4hen a person attempts to achie%e something that he is not capable of achie%ing it is a positi%e step/ it is neither flight from the scene of 4or3 nor a 3ind of internal 4ithdra4al 4hich/ leads to apath! or anomie. )t ma! normall! be e,ternal. ).e. either to4ards the sources 4hich caused frustration 7as for e,ample a bull!ing super%isor or an uns!mpathetic management8 and this ma! not onl! ta3e the form of indi%idual action but also of concerted action b! a group or organisation of 4or3ers. )t ma! ta3e the shape of demonstrations/ stri3es/ e%en ph!sical to inflict and injur! on/ or cause damage to/ the barrier to goal attainment or something closel! associated 4ith it. "his beha%iour does not represent and effecti%e problem6sol%ing strateg!. (or e,ample5 7a8 &hen a child is frustrated in a game/ he ma! brea3 to!s/ beat his companion/ or abuse him and run a4a!. 7b8 'n unsatisfied 4or3er ma! misuse or e%en damage a machine and become un6co6 operati%e and antagonistic to his fello464or3ers2 or he ma! hit the boss2 or he ma! undermine his o4n reputation b! indulging in gossip and other malicious beha%iour. 7c8 ' foreman/ 4ho 0gets mad1 at an inspector for rejecting parts manufactured in his department/ e,hibits a direct aggressi%e responsi%e. 7d8 &hen reprimanded b! his boss/ an emplo!ee goes home/ and :uarrels 4ith his 4ife 4ho/ in turn/ punishes the child. 7e8 )n labour6management relations/ a 4or3er ma! be dismissed or %ictimized b! his emplo!er for ta3ing part in trade union acti%it!. On the other hand/ and emplo!ee ma! adopt go6slo4 tactics as a protest against a decision of the management. 'll these are instances of direct aggression )ndirect or displaced aggression is directed against a scapegoat 4hich 7or 4hich8 has no direct relation to the reasons for frustration. 0#capegoat1 is blaming a particular person for one9s o4n problems or sense of insecurit! for %arious reasons/ one ma! find it inad%isable or perhaps impossible to attac3 directl! the real source of one9s discontent and so one pic3s up some innocent person or object against 4hom or against 4hich to e,press one9s frustration. (or e,ample/ an emplo!ee/ 4ho de%elops into an agitator on his job because of material problems at home/ is said to ha%e displaced his aggressi%e response from his home to his job. Bro/n gi,es some goo+ e?am($es o" +is($ace+ aggression' He sa-s) 0' 4or3er ma! fear his boss because the boss holds his fate in his handsL"he resentful 4or3er ma! pic3 up a :uarrel 4ith his 4ife/ 3ic3 the cat/ beat the children or/ more constructi%el!/ 4or3 off his feelings b! chopping 4ood/ b! cursing and s4earing or engaging in %iolent e,ercise or horse6pla! of an aggressi%e nature.1 'ggressi%e beha%iour is 4asteful and destructi%e/ and it often manifests itself in the from of hostilit! or rage and in a %ariet! of other &a!s. )t is/ therefore/ essential that a person must be helped to attain his goal and satisf! his needs in some 4a! or the other.

)t is interesting to note that in the K#'/ a fe4 companies ha%e in stalled a dumm! resembling the boss in a special 4here a frustrated &or3er ma! go and punch a4a! at it in order to release his pent up feelings. &ithdra4al can be a s!mptom of serious ps!chological disorder. )t in%ol%es the indi%iduals in 4ithdra4ing from the 3ind of problem6sol%ing effort of 4hich he is capable. "he person a%oids the situations 4hich pro%e frustrating. "he 4ithdra4al ma! be ph!sical 7lea%ing the scene8/ but more li3el! it is internalized and manifested in apath!. &or3ers 4hose jobs pro%ide little in the 4a! of need satisfaction ma! 4ithdra4 in the form of e,cessi%e absences/ lateness/ or turno%er. <it#+ra/a$ ma- &e o" t/o t-(es5 ,i4'5 regression an+ emotiona$ insu$ation' Regression is essentiall! not acting one9s age. (rustrated people tend to gi%e up constructi%e attempts at sol%ing their problems regress to primiti%e and childish beha%iour. "he s!mptoms regressi%e beha%iour is cr!ing/ pouting/ horse6pla!/ home6sic3ness/ or emotional control. (or e,ample/ a person 4ho cannot start his care proceeds to 3ic3 it is demonstrating regressi%e beha%iour. #imilar 4hen a manager is anno!ed and frustrated b! ma! thro4 a 0transfer tantrum. Emotiona$ insu$ation occurs 4hen one does not e,pose on self emotionall!/ and tries to protect himself on an unrealistic self6concept. (or e,ample/ the manager/ 4ho is al4a!s %er! correct in his dealings 4ith others in the compan! but ne%er e,tends himself personall! and ne%er e,tends in informal contacts or acti%ities/ ma! be engaging in a form of emotional insulation. Fi?ation is an attempt to gratif! a need in a manner 4hich has been pro%ed fruitless2 and therefore/ the acti%it! does not reduce tension. +ro4n 4a!s2 0(i,ation can freeze old and habitual responses and pre%ent the use of ne4 and more effectual ones1 it is acti%it! of persisting in the old 4a! of doing things e%en 4hen unsuccessful/ and it ma! be the onl! recourse that people ma! 3no4. 'ccording to +ro4n/ the common s!mptoms of fi,ation in an industr! are 0the inabilit! to accept change/ the blind and stubborn refusal to accept ne4 facts 4hen e,perience as sho4n the old ones to be untenable/ and the t!pe of beha%ior e,emplified b! the manager 4ho continues to increase penalties. Resignation or apath! ma! be defined as the 0state of gi%ing up or 4ithdra4ing from one9s in%ol%ement in a particular en%ironmental station.1 )t occurs after prolonged frustration/ 4hen people lose hope of achie%ing their goals in a particular situation and/ therefore/ 4ithdra4 from realit! and the source of frustration lea%ing the entire matter in the hands of fate. Com(romise in%ol%es altering one9s objecti%es either actuall! or s!mbolicall!. )t consists of sublimation/ rationalization and projection. Compromise in%ol%es altering one9s objecti%es either actuall! or s!mbolicall!. )t consists of sublimation/ rationalization and projection. In Su&$imation/ a substitute goal is adopted/ generall! one 4hich is on a higher ethical plane and sociall! more acceptable. #ocial ser%ice acti%ities b! 4omen ma! substitute for motherhood/ ta3ing care of children is something that is a sociall! desirable compromise acti%it!. Rationa$i4ation refers to an attempt to gi%e plausible 7rational8/ but not necessaril! true/ e,planations for specific/ e%en undesirable/ beha%iour.

)n rationalization/ one protects one9s 0ego1 b! gi%ing related but irrele%ant reasons or e,cuses to 0e,plain a4a!1 the failure or belo46par performance. (or e,ample/ a department head ma! not mo%e to a larger/ remodeled office else4here on the ground that he needs 0to be close to the boss for :uic3 communication.1 'lthough the real reason ma! be his fear of losing status and influence1. "hus/ a person 4ho attempts to justif! a beha%iour 4hich/ he feels/ is undesirable is/ consciousl! or unconsciousl!/ indulging in rationalization. Rationalization ma! ta3e t4o forms5 the 0sour6grape1 and 0s4eet6lemon1 forms. "he sour6grape rationalization describes the tendenc! 4hich impels one to conclude that h the failure in achie%ing the goal did not matter at all because the goal 4as reall! not 4orth4hile. (or e,ample/ 4hen a manager fails to achie%e :ualit! objecti%es/ he ma! claim that are unrealistic and therefore unimportant. )n other hand/ the s4eet6lemon rationalization represents an attempt at identif!i<ng something good about a situation in 4hich the failure occurs. (or e,ample/ 4hen a manager fails to get some scheduled job completed/ he ma! sa! that he 4ould not ha%e more time for its completion. Projection in%ol%es ascribing one9s beha%iour to another indi%idual. (or e,ample/ an unfaithful husband accuses his 4ife of infidelit! or an irritable person accuses another of being irritable2 or 4hen a job is not completed b! an emplo!ee/ he ma! blame the foreman for not suppl!ing the ra4 materials in time. #ome of the other t!pes of defense mechanisms are5 Attention-getting) "his de%ice is generall! used 4hen one 4ants to gain the recognition/ appreciation or attention of one9s boss or group b! putting a number of insignificant :uestions or b! referring to minor problems. )n this 4a!/ he tries to satisf! his attention need. !e(ression is the situation 4hich de%elops 4hen one has e,hausted all one9s energies to gain need satisfaction. One becomes apathetic/ chronicall! unhapp! and often fatalistic. Sa&otage5 stea$ing or stri9ing are other mechanisms 4hich ma! be emplo!ed 4hen some needs ha%e not been satisfied/ e%en though strenuous efforts ha%e been made for their satisfaction. O&sessi,e t#in9ing refers to a condition in 4hich a person enlarges/ out of all realistic proportions/ specific problems or situations 4hich he has e,perienced. (or e,ample/ an indi%idual emplo!ed in a dull/ monotonous job re:uiring little in acti%e thin3ing ma! continuall! mull O%er personal or compan! problems. "hough the problems are not especiall! gra%e/ his obsession 4ith them ma! be carried to an e,treme. )f a job is redesigned/ or if a person is allo4ed to tal3 it o%er 4ith other emplo!ees/ he chances of obsessi%e thin3ing might be lessened. Fig#t in%ol%es an actual lea%ing/ or running a4a! from/ a particular situation 4hich causes frustration or an,iet!. Com(ensation is a situation in 4hich an indi%idual 4ith feelings of inade:uac! either real or imagined e,erts himself 4ith e,tra effort in an attempt to o%ercome his insecure feelings. )t ma! be positi%e/ as 4hen emplo!ees/ 4ho feel that their abilities are inferior to those of their co4or3ers/ ma! 4or3 particularl! hard in certain jobs in order to pro%e that the! can do as 4ell. ' superior 4ho has a disagreeable personalit! ma! o%ercompensate in an! 3ind of attempts to

practice good 0human relations1 4ith subordinated. Compensation is negati%e/ as 4hen persons become aggressi%e/ push!/ o%ercritical and sometimes po4er6hungr! because of their feelings of inade:uac!. Re(ression is a mechanism that happens 4ithout one9s 4illing it. )t is an almost automatic response 4hereb! one loses a4areness of certain incidents that 4ould arouse an,iet! in him if the! 4ere present in his consciousness. "hus an unpleasant situation 4ith the superior ma! :uic3l! be forgotten b! a subordinate. Con,ersion s!mbolizes a ps!chological process 4here b! emotion frustrations are e,pressed in bodil! s!mptoms of pain or malfunctions. (or e,ample/ 4hen an emplo!ee is unable to finish a scheduled tas3 entrusted to him because to some/ guests 4ho are e,pected at home/ he ma! de%elop a headache/ 4hich is his e,cuse for the none of ill tas3. He ma! de%elop some fear. *#-sica$ reactions to stress and conflict ma! de%elop ps!chosomatic reactions. "he tensions that comes to anger or resentment can be internalized as a duodenal ulcer or h!pertension/ mucous colitis/ asthma/ pa! fe%er/ migraine


UNIT I *ersonne$ Recor+s=Re(orts *ersonne$ researc# an+ (ersonne$ au+it O&%ecti,es Sco(e an+ im(ortance' *ERSONNEL RECOR!S AN! RE*ORTS
Signi"icance o" Recor+s an+ Re(orts ' record is a piece of 4riting or a chart 4hich pro%ides read! information and 4hich preser%es e%idence for future reference or use. "he importance of records and reports for the management of an organisation cannot be o%er emphasized/ for the! enable it to get information 4ith a %ie4 to ta3ing timel! decisions on issues pertaining to the different aspects or personnel management. "he! are needed51 7i8 "o suppl! the information re:uired b! go%ernment agencies on the rate of accidents/ on large6scale absenteeism or turno%er/ or on 4age rates occurring or pre%ailing in an organisation2 7ii8 "o conduct research in the field of industrial relations2 7iii8 7i%8 "o enable personnel manager to prepare training and de%elopment programmes2 "o re%ie4 and re%ise pa! scale2 and

7%8 "o 3eep and maintain up6to6date data on lea%e/ transfers/ promotions/ dismissals/ stri3es or loc3outs/ man da!s lost/ e,penditure incurred on emplo!ees benefits and ser%ices cases of indiscipline/ etc. )n the absence of reliable records and reports/ the management 4ould not be able to function2 in fact/ it 4ould be paral!zed/ for it 4ould not 3no4 4here the organization9s 4ea3ness lies and 4hat precautions to ta3e to set matters right.

+! the term records is meant the preser%ation of information in files and documents. "he! are generall! prepared and compiled from reports2 and the! are meant for long6term use. "he! contain/ for the emplo!er and the emplo!ee/ information on job anal!sis/ e%aluation and description/ and.or recruitment/ selection/ test scores2 on the results of ph!sical e,aminations2 on the inter%ie4ers9 notations2 on emplo!ee training and de%elopment and periodical appraisals2 on transfers/ promotions/ discharge dismissals/ la!6offs2 on grie%ances and on the disciplinar! action ta3en against emplo!ees2 on 4ages/ salaries/ pensions/ pro%ident fund contributions/ emplo!ee benefits6and6ser%ices programmes2 safet! and a pre%ention measures and procedures2 labour disputes cost of the recruitment of emplo!ees and of training methods2 scrap loss2 the rate and e,tent of absenteeism and labor turno%er2 suggestion schemes and a host of other acti%ities in 4hich an organisation is in%ol%ed. <e gi,e &e$o/ a s(ecimen on an em($o-ee recor+ maintaine+ &- a /e$$-9no/n organisation in In+ia'

Essentia$ o" a Goo+ Recor+ To &e re$ia&$e an+ e""ecti,e a recor+ s#ou$+ &e c$ear a&out t#e "o$$o/ing) "he objecti%es for 4hich it is maintained should be clearl! and ade:uatel! stated. )t should be consistent 4ith the re:uirements for 4hich it is maintained and should be easil! a%ailable. )ts up3eep and maintenance should not be costl!. )t should be 3ept under loc3 a 3e! to ensure that it is not mislaid or pilfered/ or tampered 4ith. )t should be periodicall! re%ie4ed and brought up to date. )t should be maintained in such a manner that the information it contains is easil! accessible. )t should be easil! identified and differentiated from another record. "he records of different 3inds of information should be 3ept and maintained in separate files and doc3ets for read! reference. Duplication of entries in different records should be a%oided. #ome particular person should be entrusted 4ith the re of maintaining records ' procedural manual should be maintained/ detailing the procedure to be follo4ed for maintaining and dealing 4ith records.

' report is an account or statement describing in detail an e%ent/ a happening/ a situation/ or e%aluating and enterprise or a product that is proposed to be manufactured. )t outlines and describes 4hat has happened fre:uentl!/ both in :ualitati%e and :uantitati%e terms. )t is generall! 4ritten or submitted periodicall!6e%er! 4ee3/ month or !ear and includes man! statistical series containing data on emplo!ment/ recruitment/ accidents/ benefits and ser%ices/ transfers/ promotions/ la! off/ etc. )t also contains the obser%ations and comments of the person 4ho is called upon to ma3e a report on items of special significance in manpo4er management.

Essentia$s o" Goo+ Re(ort

"he submission of a report on a particular issue is the responsibilit! of the person appointed for the purpose/ 4ho puts it up to one of the top e,ecuti%es. )t ma! also be sent b! an immediate super%isor to his depart mental head. "o be useful/ a report should satisf! some conditions. T#ese are) )t should deal 4ith a specific objecti%es )t should d4ell on the issues referred to the person ma3ing it "he person 4ho ma3es the report should collect the data and interpret it honestl!

' report should contain data on all the aspects of personnel management. )t should ma3e specific recommendations )t should be timel!/ so that proper action ma! be ta3en on it. )t should be clearl! 4orded and easil! comprehensible )t ma! include illustrati%e points to strengthen the obser%ations made in it. )t should be reader oriented.

'n audit is/ properl! spea3ing/ an e,amination and %erification of accounts and records. Personnel auditing refers to an e,amination and e%aluation of policies/ procedures and practices to determine the effecti%eness of personnel management. )n other 4ords/ personnel audit or periodical re%ie4s of the effecti%eness of a management o Personnel Records.Reports are concerned 4ith5 7a8 "he measurement of the effecti%eness of personnel programmes and acti%ities2 and 7b8 "he determination of 4hat should or should not be done in the future as a result of such measurement. "he effecti%eness of a personnel programme/ li3e that of personnel research/ is dependent upon a%ailable information/ and its scope is as 4ide as the field of personnel management. 0"he performance of people is a comple, product of personnel interest/ :ualifications/ commitment and e,pectations on the one hand/ and of the emplo!ment en%ironment 7including 4or3ing assignments/ 4or3ing condition/ super%isions/ leader ship/ opportunit! and challenge8 on the other. +ecause manager6emplo!ee relationships/ from recruitment to retirement/ are inter6related to compose the total s!stem/ no part of that s!stem can be ignored.1

O&%ecti,es o" *ersonne$ Au+it

T#e o&%ecti,es o" a (ersonne$ au+it are) ;. "o re%ie4 the 4hole s!stem of management programmes in 4hich a management de%elops/ allocates and super%ises human resources in an organisation 4ith a %ie4 to determining the effecti%eness of these programmes. B. "o see3 e,planation and information2 that is/ to get ans4ers to such :uestions as5 0&h! did it happen?1 and 0&hat happened?1 E. "o e%aluate the e,tent to 4hich line managers ha%e implemented the policies 4hich ha%e alread! been initiated2 and D. "o e%aluate the personnel staff and emplo!ees. 'ccording to *ra!/ 0the primar! purpose of personnel audit is to 3no4 ho4 the %arious units are functioning and ho4 the! ha%e been able to meet the policies and guidelines 4hich 4ere agreed

upon2 and to assist the rest of the organisation b! identif!ing the gap bet4een objecti%es and results/ for the end6product of an e%aluation should be to formulate plans for corrections or adjustments.1

Im(ortance o" *ersonne$ Au+it

)n modern times/ personnel and industrial relations audits ha%e been 4idel! accepted as tools 4ith 4hich managers can control the programmes and practices of the personnel and industrials relations departments. "he importance of a personnel audit has increased in recent !ears because of the follo4ing reasons. ' change in managerial philosoph! and theor!/ as a result of 4hich a management no4 feels that the emplo!ees9 participation in the acti%ities of an organizations/ and their identification 4ith it/ has a tremendous influence on the 4or3ing of that organisation. "he changing role of the go%ernment/ 4hich inter%enes more often and more e,tensi%el! no4/ to control manpo4er management b! an organisation 4ith a %ie4 to protecting the interests of the emplo!ees/ pro%iding them 4ith better 4or3ing conditions and ensuring their economic securit!. "he increasing role pla!ed b! trade unions and their strength/ as a result of 4hich the! often :uestion managerial competence in industrial relations. "he rising 4ages/ changes in the s3ills of technical and professional 4or3ers/ and the increasing e,penditure incurred on the industrial relations department these are the factors 4hich ha%e influenced and encouraged the trend in fa%our of a personnel audit.

Nee+ "or *ersonne$ Au+it

'ccording to Coder/ the need for personnel audit is largel! influenced b! se%eral conditions/ some of these are5

he Num#er of 1mployees: @er! small units/ because of the %er! small number of persons the! emplo!/ re:uire comparati%el! little in the 4a! of a formal audit. -rgani2ational Structure: Continuing feedbac3 is facilitated if an organisation has a personnel department. Communication and Feed#ac$: 'n effecti%e t4o64a! communications s!stem often reduces the need for a formal audit. )ocation and 4ispersion: "he need for a formal audit is directl! related/ to the number of isolated plants. Status of an industrial /elations Manager: )f he participates in top management plans/ reports/ discussions and decisions/ the need for a formal audit ma! be less fre:uentl! felt.

Administrati!e Style < the greater the delegation of authorit! and decentralization of po4er/ the greater the %alue of a regular and formal audit.

Sco(e o" *ersonne$ Au+it

"he scope of a personnel audit is %er! 4ide. )t represents a 04hole man1 approach2 that is/ it assumes that the management of human resources in%ol%es much more than the practice of recruiting/ hiring/ retaining and firing emplo!ees. )t e,amines the concept of 0people management1 b! super%isor at all le%els. )n the 4ords of the National )ndustries Conference +oard of the Knited #tates/ 0the top management is interested in auditing all the programmes relating to emplo!ees2 regard less of 4here the! originate/ or the channels through 4hich the! are administered.1 T#e "ie$+ o" (ersonne$ au+it inc$u+es)

ob anal!sis2 Recruitment2 "esting2 #election2 "raining2 Management de%elopment2 Promotions and transfers2 Rating2 Aabour relations2 Morale de%elopment2 -mplo!ee benefit and ser%ices2 -mplo!ee communication -mplo!ee counseling &age and salar! administration Collecti%e +argaining

Personal Management/ )ndustrial Relations and research

Recor+s to &e use+

T#e main recor+s an+ statistics use+ in a (ersonne$ au+it are) 7a8 "ime standards 7b8 Cost records 7c8 "est scores2 7d8 "raining scores 7e8 )nter%ie4 records2 7f8 &or3 stoppages2 7g8 Medical reports2 7h8 'ccident reports2 7i8 *rie%ance reports2 7j8 "urno%er reports2 738 Knit labor costs2 and 7l8 Pa!roll data. )n other 4ords/ both :uantitati%e and :ualitati%e !ardstic3s should be used for purposes of e%aluation. Mona a and )ai-adain pro%ide a number of !ardstic3s and indices/ 4hich are5 0a%erage in the le%els of emplo!ee turno%er or absenteeism2 cost figures for each major acti%it! or function2 accident fre:uencies2 grie%ances2 suggestions2 internal data indicators 4age and salar! sur%e!s/ emplo!ees9 state insurance scheme stabilities/ producti%it! indications for certain jobs and.or machines/ staffing and manning tables/ job anal!sis and descriptions2 and e%aluation data regarding instruments.1

Met#o+s o" Ana$-sis

T#e met#o+s "or ana$-sis +ata an+ in"ormation are) Comparison of %arious time periods2 Comparisons bet4een departments and other companies2 "rend lines/ fre:uenc! distributions and statistical correlations2 Ratio anal!sis2 for e,ample/ labour cost per unit of output2 Classification of data b! 3inds of emplo!ees/ products and departments2

*raphical is pictorial displa!s/

Fre.uenc- an+ T-(es o" Au+it

)t is a common practice to ha%e an annual e%aluation or audit. 't the end of each calendar or fiscal !ear/ a report is presented2 co%ering statistical information on the acti%ities performed/ the results achie%ed/ the costs and e,penditure in%ol%ed a comparisons of objecti%es and accomplishments. +! a perusal of this report a great deal of useful information can be had about personnel acti%ities. )n some organizations/ ho4e%er/ this personnel audit is conducted periodicall!/ generall! in accordance 4ith the needs of each organisatoin. (or e,ample/ attitude or morale sur%e!s on particular subjects or topics ma! be conducted/ or special reports ma! be prepared on such issues as grie%ances/ the 4or3ing or seniorit! rules of the effects of o%ertime practices and collecti%e bargaining agreements. "4o practices are generall! follo4ed 4hile conducting a personnel audit. )n some cases/ the audit is conducted b! those emplo!ed in the organisatoin itself6generall! b! auditors or accounts. )n other cases/ the ser%ices of outside e,perts are engaged. "he former is 3no4n as internal audit/ 4hile the latter is designated e,ternal audit. "he ad%antages of ha%ing an outside auditor are that5 7a8 He has a bac3ground of 3no4ledge of 4hat other are doing in similar situations2 7b8 He has a professional attitude to4ard his 4or32 and 7c8 He is objecti%e in that he personall! 4ill not become a part! to recommended changes. &hat appointing an outside auditor certain conditions should be 3ept in mind regarding his 4or3? 7i8 He cannot 4or3 miracles. He can diagnose ills and recommended treatment/ but the patient must pro%ide the 4ill to get 4ell. 7ii8 He must recei%e top management9s support. 7iii8 He cannot and should not relie%e management of its responsibilit! for ma3ing the decisions. He can recommend/ but the acceptance of his recommendations rests 4ith management.

T#e Au+it Re(ort

"he report should in%ariabl! be submitted/ 4ithin a reasonable time/ after the audit 4or3 is o%er. )t should a%oid the journalistic st!le2 be based solel! on the findings2 be presented in a factual manner that is readil! a%ailable for future reference2 ma3e use of graphic techni:ues 4here appropriate2 and not be an! longer than is necessar!. T#e "o$$o/ing items s#ou$+ &e containe+ in t#e re(ort) ;. "able of Contents.

B. #ummar! and conclusion/ in 4hich the entire report is summarized for the top e,ecuti%es. E. Preface gi%ing a brief statement of the objecti%es D. "he report proper/ in 4hich a major di%ision is co%ered as a special section. -ach section should be complete/ and should contain as man! supporting data as are practical 4ithout ma3ing it too %oluminous. Other data should be included in the appendi,. >. #ummar!5 this is more complete than summar! and conclusions at the beginning of the Report. F. 'ppendi,. "his includes supporting data that 4ould be too %oluminous to appear in the bod! of the Report. G. )t should be signed b! all members ma3ing the audit. Certain aspects of an audit report ma! be made a%ailable to the emplo!ees.Other phases of the audit ma! be appropriate to gi%e onl! to top management.

*ERSONNEL RESEARCH Meaning an+ C#aracteristics

'ccording to Coder/ 0research is a shortcut to 3no4ledge and understanding 4hich can replace the slo4er/ more precarious road of trial and error in e,perience. 0)t implies/1 he points out/ 0searching in%estigations/ re6e,aminations/ re6assessments and re%aluations. )t is a purposi%e and s!stematic in%estigation designed to test carefull! considered h!potheses or thoughtfull! framed :uestions.1 Personnel research/ according to J#ci#s, it is the tas3 of searching for/ and anal!zing/ facts to the end that personnel problems ma! be sol%ed or principles and la4s go%erning their solution deri%ed.1 In ot#er /or+s5 researc# is (ur(osi,e) that is/ it see3s to ans4er specific :uestions and is not merel! and accumulation of unstructured obser%ations. It is o&%ecti,es7 that is/ it recognizes and limits bias and prejudice in e%er! step of the process. It is s-stematic7 that is/ it begins 4ith a comprehensi%e design or plan/ and the in%estigation is conducted in terms of that design. It is (arsimonious7 that is/ it identifies methods and techni:ues for the solution of problems 4ith the minimum cost. It is re(uta&$e7 that is/ it can be used independentl! b! se%eral researches at the same time.


EResearc#B is different from $causal obser%ation9 in that is uses s!stematic in%estigation and objecti%es anal!sis instead of na! causal or informal means. "he essential characteristic of research is its method or point of %ie4. )ts other characteristic are5 7a8 )t is a planned and designed in%estigation and anal!sis 7b8 )t is conducted in a s!stematic manner to chec3/ %erif! or dispro%e clues/ assumptions or hunches. 7c8 )t supplements 3no4ledge and e,tends the frontiers of understanding.

T-(e o" Researc#

On the basis of the emphasis laid on an! anal!sis of information and data/ research has been classified as basic or pure and applied. It is #asic or pure 4hen it is designed to bring about an understanding of a phenomenon for its o4n sa3e for the sa3e of understanding alone. #uch research is most li3el! to emphasis comple, relationships and anal!sis. Applied or operational researc#5 on the other hand/ stresses the need for a clear and practical e,planation of a phenomenon/ so that it can be made use of in ht e%er!6da! affairs of life. 'n anal!sis of data pro%ides the basis for generalizations and conclusions. 'pplied research/ moreo%er/ includes 4hat is 4idel! described as Research H De%elopment 7or R H D8/ 4hich in%ol%es efforts to pro%e or impro%e the usefulness and applicabilit! or ne4 products/ processes and practices. Analytical researc# is needed to pro%ide the theoretical frame4or3 and bac3ground on 4hich/ or against 4hich/ total 3no4ledge and operational practices can be based or judged. #uch research is basicall! descripti%e/ that is/ it reports on 4hat 4as or is rather than on 4h!.

O&%ecti,es o" *ersonne$ Researc#

Research is a multipurpose tool 4hich is used to help sol%e a %ariet! of organizational problems. "he concept of research can be applied to all organizational studies/ be the! large or small/ descripti%e or anal!tical/ major or minor/ human or non6human/ broad or narro4 in perspecti%e/ dimension and scope.1 )n fact/ it is useful for e%er!one 4ho is concerned 4ith personnel problems labour/ management/ the general public/ go%ernment agencies and consumers. Research is immensel! %aluable in de%eloping more effecti%e personnel practices. #ur%e!s and anal!sis of the statistics of a compan!9s in functioning/ for e,ample/ are so %ital to the effecti%e operation of an enterprise that the! are conducted almost as a mater of course. Research/ moreo%er/ pro%ides the most efficient relationships 4hich other4ise might ne%er ha%e been obser%ed or %erified/ or 4hich sometimes are disco%ered after decades. More specificall!/ research is related to the follo4ing aspects of personnel management/ human relations and labour management relations5 "o measure and e%aluate present conditions2

"o predict future conditions/ e%ents and beha%ioral patterns2 "o e%aluate the effects and results of current policies/ programmes and practices2 "o pro%ide an objecti%e basis for a re%ision of current policies/ programmes and practices2 "o appraise proposed policies/ programmes and acti%ities2 "o 3eep the management abreast of its competitors b! replacing old products b! ne4 products/ old techni:ues b! ne4 techni:ues and old organizational practices b! ne4 organizational practices. "o disco%er 4a!s and means of strengthening the abilities and attitudes of at a good or a high le%el and on a continuing basis. )t is ob%ious then that the need for personnel research stems fro the re:uirements of finding the most efficient manner of handling people related emplo!ment concerns Personnel research is the means of bringing about the end stage of impro%ed performances its fundamental purpose is to impro%e the philosoph! and practice of personnel administration and manpo4er management.

Co,erage o" *ersonne$ Researc# Area

Research in manpo4er and human resources co%ers all those specific areas 4hich are the subject matter of personnel administrations. "he scope of such research ma! %er! from the %er! simpl! to the %er! comple,/ or form the short and ine,pensi%e to the long and costl!. Most studies re%eal that the four most dominant areas of research are selection2 training and de%elopment2 attitudes and leadership2 and measurement de%ices. "he personnel researcher see3s to disco%er the basic relationships 4hich ma! lead to impro%ed personnel decision6ma3ing in such areas as turno%er/ absenteeism/ compensation le%els and structure/ job satisfaction/ emplo!ee morale/ assessment of managerial potential/ training effecti%eness/ grie%ance handling/ labour relations and collecti%e bargaining. Personnel research areas are often identified in terms of high or lo4 appearance5 selection/ opinion measurements/ training and de%elopment/ appraisal/ moti%ation/ organizational effecti%eness/ managerial obsolescence/ counselling and retirement. Managerial selection and de%elopment and general emplo!ee moti%ation ha%e generall! been identified as the t4o main human resources areas 4hich are in the greatest need of additional research.

Met#o+s an+ Too$ o" *ersonne$ Researc#

@arious methods and tools ma! be used in the conduct of personnel research. Of the %arious alternati%es a%ailable/ a choice has to be made of research designs. "he general practice is to choose the techni:ue 4hich promises to !ield :ualit! 4ith the least difficult!/ effort and cost. Ksuall! the techni:ues.methods or tools/ 4hich are a%ailable for research/ are5 ;. Historical studies2 B. Case studies2

E. #ur%e! research2 D. #tatistical studies >. Mathematical models2 F. #imulation2 and G. (ield or action research. 7;8 Historica$ stu+ies) Past records and documents are s!stematicall! in%estigated/ and inter%ie4s are conducted 4ith former emplo!ees. 'lmost all big organizations maintain records of the %arious personnel problems absenteeism/ turno%er/ accident rates/ 4age structure/ etc. "he essential feature of this method is 0its s!stematic in%estigation/ utilizing an e,tended time span of longitudinal dimension1 7B8 Case Stu+ies) "hese consist of anal!ticall! in%estigating the relationships 4hich are significant in a particular situation or set of circumstances. 'lthough the precise meaning of the findings of a case stud! is limited to its uni:ue past situation/ a careful anal!sis and thoughtful generalization ma! be deri%ed from it/ 4hich endo4s it 4ith a broader significance and application. )ndi%idual case studies ma! lead to the formulation of general h!potheses 4hich 4ould be useful in la!ing a foundation for additional or more intensi%e future research. "he main merit of this method is that it enables the researcher to ma3e a thorough/ in6depth in%estigation of 3e! incidents or situations/ 4hile its demerits is that it is historical in nature and does not necessaril! represent general conditions. 7E8 Sur,e- Researc#) )n a sur%e! research/ attention is concentrated on the collection of original data b! administering a :uestionnaire or conducting a structured inter%ie4. Certain research h!potheses are established/ and sur%e! :uestions are designed to collect data. "he correlation among obser%ed phenomena/ possible causes and related efforts is then computed/ and conclusions are dra4n. "his method is time6consuming and costl!/ and has been criticized on the ground that its application ma! emphasize the importance of the collection of data and not the importance of anal!zing these data and formulating a theor! on their basis. 7D8 Statistica$ Stu+ies) "hese studies deal 4ith the collection/ anal!sis/ classification and interpretation of mathematical data and :uantitati%e information. "he! la! emphasis on the importance of :uantification/ mathematical manipulation/ and statistical inference. "he! ma! use a%erages/ means/ medians/ and modes/ measures of dispersion/ trends/ regressions and correlations. "heir use is becoming increasingl! 4idespread because of the de%elopment of high6speed modern electronic data6processing e:uipment. 7>8 Mat#ematica$ Mo+e$s) Mathematical models are generall! used in research to e,plain the relationships among the %ariables that are to be e,amined. "he! help us to de%elop and test the designs and se:uences of e:uations 4hich tentati%el! describe the beha%iour of interacting %ariables in terms of mathematical notations. "hese mathematical models also help us to e,amine comparati%el! simple and e,tremel! comple, relation ships and e%ol%e decision6rules of 4ide applicabilit!.

7F8 Simu$ation) Computers ha%e popularized design 4hich in%ol%es simulation. "he process begins 4ith the statement of a h!pothesis. )t is used to stud! problems of production and in%entor! control/ of mar3eting/ purchasing/ hiring and training of personnel/ and of collecti%e bargaining. 7G8 Fie$+ or Action Researc#) "his method has been most effecti%el! used in understanding group beha%iour in communities and 4or3ing organizations. )t in%ol%es difficult design problems/ for6the obser%er himself becomes a %ariable in the process of obser%ation. "his self6in%ol%ement on the researcher gi%es him ne4 insights2 and these are gained from an acti%e interaction 4hich 4ould not ha%e been possible under passi%e obser%ation. T#e (ersonne$ researc#ers5 /#o uti$i4e t#ese met#o+s or too$s5 are 7a8 'cademic bodies uni%ersities/ bureaus of business research/ social research institutions or centers2 7b8 *o%ernment agencies departments of labour and emplo!ment 7c8 Pri%ate consultants/ indi%iduals or sophisticated research organizations2 7d8 Personnel departments of commercial and industrial under ta3ings2 and 7e8 "ime departments/ either independentl! or in conjunction 4ith personnel departments.

Researc# *roce+ure
' researcher has to follo4 a certain research procedure5 Defining the problem Designing the Objecti%es Collection of Data9s (ormulation of Data9s Classifies/ anal!ses and interprets the information Dra4s conclusion

Sources o" *ersonne$ Researc# In"ormation

"he result of research projects/ plans/ finding and e,periences are generall! reported in a number of publications brought out b! an organisatoin/ and in a number of other journals/ technical or business magazines the! are also co%ered in seminar reports/ conference proceedings and monographs. Coder classifies these into three categories5 7a8 "hose professing a/ major interest in the field of personnel and labour relations2 7b8 "hose ha%ing a specialized focus on one or more of these2 and

7c8 ournals co%ering 4ider interests/ 4hich include reports on research in the manpo4er management area.

Res(onsi&i$it- "or Researc#

Research is not the sole responsibilit! of an! one particular group or departments in an organisation. "he initial responsibilit! is that of the personnel department 4hich/ ho4e%er/ should be assisted b! line super %isors and e,ecuti%es at all le%el of management. "he assistance that can be rendered b! trade unions and other organisatoins for e,ample/ educational institutions/ pri%ate research groups and go%ernmental agencies should not be ignored/ but should be properl! made use of. Ps!chologists/ sociologists/ economists/ mathematicians/ and specialists in business administration/ political science and other areas should also be laid under contribution in so far as research is concerned. &e close this discussion 4ith an obser%ation of J#ci#s. He sa!s5 0"he field of research re:uires the resources of se%eral t!pes of researches and different 3inds of tools. "o see3 ans4ers through the methodolog! and principles of a single specialt! is to build upon a 4ea3 foundation. Rather/ research calls for a cosmopolitan attitude and inter6disciplinar! cooperation. "he specialists 4ho tr! to build a fence around all aspects of research do themsel%es and industr! a serious disfa%or.1



"ime5 E Hours ;. B. E. D. >. F. G. =. Ma,imum Mar3s5 ;MM *ART A 7 > , = P DM8 'ns4er an! "i,e :uestions Define HRM/ and list out the objecti%es of HRM Discuss the characteristics and the process of HRP. -,plain ob anal!sis and ob Description and highlight the importance of these elements in HRM Detail about the selection process in Recruitment? Detail about the need and importance of "raining and de%elopment in organisation. -,plain the 4ages and salar! administrations methods and policies practices in )ndia. Define ob -%aluation? +rief about the necessit! of job e%aluation s!stems. 'ccident pre%ention methods and practice Discuss

*ART B 0C ? 3F G HD1 Ans/er an- Four .uestions 7uestion No( => is compulsory <. NRM impro%es the Aife c!cle of emplo!ees comment. ;M. +rief about the role and importance of a. ob design b. ob specification ;;. "raining and de%elopment is a una%oidable e,penses in the organisation 'gree 7or8 Disagree. ;B. +rief discuss about the 4age and salar! administration practices in )ndia. ;E. -,plain the emplo!ee9s 4elfare and safet! pro%ision in according to the industrial practice. ;D. Ho4 to Personnel Research and Personnel 'udit helps the Personnel Manager to impro%e the organizational effecti%eness? ;>. 'nal!sis the follo4ing case and ans4er the :uestions

"HOM#ON Consumer -lectronics/ the state o4ned (rench group/ last !ear rationalized its -uropean operations b! closing its (erguson tele%ision plant in *osport/ southern -ngland/ 4ith the loss of more than E/MMM jobs/ "he e%ent scarcel! merited a mention at the time on either side of the channel. +ut some +ritish trade unionists are no4 recalling it/ as the acrimonious dispute o%er the transfer of 4or3 from Ho4e%er9 plant in eastern (rance to #cotland rumbles on. "his part of cross6channel sniping reflects ho4 completel! relations bet4een +ritish and (rench unions ha%e bro3en do4n. +ut it also illustrates the difficult! facing unions in dealing 4ith the ebb and flo4 of jobs across the -uropean Communit! as a 4age of recession induced restructuring begins.

(ollo4ing the +ritish out6put from the Maastricht #ocial chapter/ and the subse:uent de%aluation of sterling/ man! continental -uropean 4or3s and politicians fear that capital 4ill be suc3ed in the 0Hong Iong of -urope1 at their e,pense. "he propaganda material of +ritain9s in4ard in%ested agencies certainl! stresses the relati%e freedom of +ritain9s $hire and fire9 4or3place culture and the relati%el! lo4 labor costs. +ut the realit! is that neither the opt6out nor the de%aluation 4ere factors in Hoo%er9s decision to shift jobs to #cotland. +ritain has al4a!s had a relati%el! unregulated labour mar3et 4hich used to be :ualified b! strong trade unions/ no4 considerabl! 4ea3ened. +ritish 4ages are also lo4 b! -C standards/ but the real ad%antages enjo!ed b! the KI are lo4 non64age labor costs. "hese are usuall! about ;> percent of 4age costs compared 4ith more than >M percent in man! other -C countries. "hat is partl! because the KI pa!s for health care though general ta,ation 4hile emplo!ees ha%e to bear a large part of health care costs in se%eral continental countries. "his clearl! 4as just one factor in Hoo%er9s decision but it is not something that the social chapter directl! affects. Mr. &illiam (oust/ president of Hoo%er -urope/ said !esterda! that non64age labour cost of onl! ;M percent in #cotland/ compared 4ith D> percent in (rance/ 4as factor in the compan!9s decision. +ut the decision 4as also influenced b! fact that the #cottish plant had spare capacit!. Ho4e%er9s/ decision is unli3el! to herald an! significant increase in +ritain9s comparati%e ad%antage. )t is based on long6established factors 4hich Hoo%er/ a particularl! foot6loose K# in%estor in -urope/ has often found attracti%e in the past. +ritain has al4a!s been the most population destination for ne4 international in%estment 4ithin the -C and that has not changed mar3edl! in recent !ears. Kntil *erman care 4or3ers started to 4orr! about the apanese care industr! in%esting in +ritain/ ne4 international in%estment has not been the source of such tension/ and is unli3el! to be much of an issue o%er coming !ears as that ne4 in%estment 4ill not be plentiful. On 0beggar6m!6neighbor1 industrial restructuring 4ithin the -C/ 4here one countr! loses jobs and another gains them/ things/ are more comple,. +ut as the "homson -lectronics case illustrates/ +ritain has often lost out in such restructuring precisel! because it is easier and cheaper to close plants in +ritain than in most -C countries. )n the "homson case at *osport the a%erage redundanc! pa!ment 4as V G/MMM compared 4ith V DG/MMM in #pain. )n Holland/ #pain and *erman! agreement on a redundanc! pac3age has to be reached 4ith 4or3place representati%e before closure is allo4ed. )f/ for e,ample/ +ritish Ae!land Daf decides to 3eep open it9s +elgain and Dutch plants and close onl! its +ritish plant/ as seemed possible !esterda!/ that differential cost of redundanc! is li3el! to be a factor.

+ritain also loses out form its relati%el! lo4 s3ill base and poor educational standards/ one reason behind (ord9s decision to s4itch more of its R H D 4or3 to *erman!. "he 0social dumpling1 theor! that capital 4ill flo4 to areas 4here labour is cheapest and least protected/ dragging do4n labour standards else4here/ has scarcel! materialized in the -C because lo4 4ages are usuall! canceled out b! lo4 producti%it!. ;. 'nal!ze the Hoo%er decisions form a competiti%e labour mar3et perspecti%e and a radical perspecti%e. B. "o 4hat e,tent is the Hoo%er decision a %indication of +ritish go%ernment policies to deregulate the labour mar3et? E. &hat do !ou consider to be the implications of the Hoo%er case for the practice of HRM?