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Definition 1 Integration
HRM is a series of integrated decisions that form the employment
relationships their !"ality contri#"tes to the a#ility of the
organi$ations and the employees to achie%e their o#&ecti%es'(
Definition 2 Influencing
HRM is concerned with the people dimensions in management. Since
every organization is made p of people! ac"iring their services!
developing their s#ills! motivating them to higher levels of
performance and ensring that they contine to maintain their
commitment to the organization are essential to achieving
organizational o$%ectives. &his is tre! regardless of the type of the
organization government! $siness! edcation! health! recreational!
or social action.'
Definition ( Applicability
HRM planning! organizing! directing and controlling of the
procrement! development! compensation! integration! maintenance
and separation of hman resorces to the end that individal!
organizational and social o$%ectives are accomplished.'
M)*+,+- ./ HRM0 1
HRM is management fnction that helps managers to recrit! select!
train and develop mem$ers for an organization. .$viosly HRM is
concerned with the people2s dimensions in organizations. HRM refers
to set of programs! fnctions! and activities designed and carried ot
3ore elements of HRM
4eople0 .rganizations mean people. ,t is the people who staff and
manage organizations.
Management0 HRM involves application of management fnctions
and principles for ac"isitioning! developing! maintaining and
remnerating employees in organizations.
,ntegration 5 3onsistency0 Decisions regarding people mst $e
integrated and consistent.
,nflence0 Decisions mst inflence the effectiveness of
organization reslting into $etterment of services to cstomers in the
form of high "ality prodcts spplied at reasona$le cost.
*pplica$ility0 HRM principles are applica$le to $siness as well as
non1$siness organizations too! sch as edcation! health! recreation
and the li#e.
O)*ECT+,ES O- HRM. /
1. Societal .$%ectives0 &o $e ethically and socially responsi$le to
the needs and challenges of the society while minimizing the negative
impact of sch demands pon the organization.
2. .rganizational .$%ectives0 &o recognize the role of HRM in
$ringing a$ot organizational effectiveness. HRM is only means to
achieve to assist the organization with its primary o$%ectives.
(. /nctional .$%ectives0 &o maintain department2s contri$tion and
level of services at a level appropriate to the organization2s needs.
6. Personal Objectives: To assist emlo!ees in ac"ievin# t"eir ersonal #oals$ at least
in so %ar as t"ese #oals en"ance t"e in&ivi&'al(s contrib'tion to t"e or#ani)ation* T"is is
necessar! to maintain emlo!ee er%ormance an& satis%action %or t"e 'rose o%
maintainin#$ retainin# an& motivatin# t"e emlo!ees in t"e or#ani)ation*
/rom )ntry to the )7it of an employee in the organization
Scope of HRM can $e descri$ed $ased on the following activities of
HRM. 8ased on these activities we can smmarize the scope of HRM
into 9 different categories as mentioned $elow after the activities. :ets
chec# ot $oth of them.
HRM *ctivities
1. HR 4lanning
2. ;o$ *nalysis
(. ;o$ Design
6. Recritment 5 Selection
<. .rientation 5 4lacement
=. &raining 5 Development
9. 4erformance *ppraisals
>. ;o$ )valation
?. )mployee and )7ective Remneration
1@. Motivation
11. 3ommnication
12. Aelfare
1(. Safety 5 Health
16. ,ndstrial Relations
9 3ategories of Scope of HRM
1. ,ntrodction to HRM
2. )mployee Hiring
(. )mployee and )7ective Remneration
6. )mployee Motivation
<. )mployee Maintenance
=. ,ndstrial Relations
9. 4rospects of HRM
1. *dvisory Role0 HRM advises management on the soltions to any
pro$lems affecting people! personnel policies and procedres.
a. 4ersonnel 4olicies0 .rganization Strctre! Social Responsi$ility!
)mployment &erms 5 3onditions! 3ompensation! 3areer 5 4romotion!
&raining 5 Development and ,ndstrial Relations.
$. 4ersonnel 4rocedres0 Relating to manpower planning
procedres! recritment and selection procedres! and employment
procedres! training procedres! management development
procedres! performance appraisal procedres! compensation
procedres! indstrial relations procedres and health and safety
2. /nctional Role0 &he personnel fnction interprets and helps to
commnicate personnel policies. ,t provides gidance to managers!
which will ensre that agreed policies are implemented.
(. Service Role0 4ersonnel fnction provides services that need to $e
carried ot $y fll time specialists. &hese services constitte the main
activities carried ot $y personnel departments and involve the
implementation of the policies and procedres descri$ed a$ove.
Role of HR Managers B&odayC
1. Hmanitarian Role0 Reminding moral and ethical o$ligations to
2. 3onselor0 3onsltations to employees a$ot marital! health!
mental! physical and career pro$lems.
(. Mediator0 4laying the role of a peacema#er dring disptes!
conflicts $etween individals and grops and management.
6. Spo#esman0 &o represent of the company $ecase he has $etter
overall pictre of his company2s operations.
<. 4ro$lem Solver0 Solving pro$lems of overall hman resorce
management and long1term organizational planning.
=. 3hange *gent0 ,ntrodcing and implementing instittional changes
and installing organizational development programs
9. Management of Manpower Resorces0 8roadly concerned with
leadership $oth in the grop and individal relationships and la$or1
management relations.
Role of HR Managers B/treC
1. 4rotection and enhancement of hman and non1hman resorces
2. /inding the $est way of sing people to accomplish organizational
(. ,mprove organizational performance
6. ,ntegration of techni"es of information technology with the hman
<. Dtilizing $ehavioral scientists in the $est way for his people
=. Meeting challenges of increasing organizational effectiveness
9. Managing diverse wor#force
HRM .$%ectives Spporting HRM /nctions
Social .$%ectives B(C :egal 3ompliance
Dnion Management Relations
.rganizational .$%ectives B9C Hman Resorce 4lanning
)mployee Relations
Recritment 5 Selection
&raining 5 Development
4erformance *ppraisals
4lacement 5 .rientation
)mployee *ssessment
/nctional .$%ectives B(C 4erformance *ppraisals
4lacement 5 .rientation
)mployee *ssessment
4ersonal .$%ectives B<C &raining 5 Development
4erformance *ppraisals
4lacement 5 .rientation
)mployee *ssessment
Managerial -"nctions of HRM
1. 4lanning0 4lan and research a$ot wage trends! la$or mar#et
conditions! nion demands and other personnel $enefits. /orecasting
manpower needs etc.
2. .rganizing0 .rganizing manpower and material resorces $y
creating athorities and responsi$ilities for the achievement of
organizational goals and o$%ectives.
(. Staffing0 Recritment 5 Selection
6. Directing0 ,ssance of orders and instrctions! providing gidance
and motivation of employees to follow the path laid1down.
<. Controlling. Reg"lating personnel acti%ities and policies according to
plans' O#ser%ations and comparisons of de%iations
.perational /nctions of HRM
1. 4rocrement0 4lanning! Recritment and Selection! ,ndction and
2. Development0 &raining! Development! 3areer planning and
(. 3ompensation0 Aage and Salary determination and administration
6. ,ntegration0 ,ntegration of hman resorces with organization.
<. Maintenance0 Sstaining and improving wor#ing conditions!
retentions! employee commnication
=. Separations. Managing separations ca"sed #y resignations3
terminations3 lay o4s3 death3 medical sic5ness etc'
3H*::)+-)S ./ HRM ,+ ,+D,*+ )3.+.ME or 3H*::)+-)S
./ M.D)R+ M*+*-)M)+&
1. -lo$alization0 1 -rowing internationalization of $siness has its
impact on HRM in terms of pro$lems of nfamiliar laws! langages!
practices! competitions! attitdes! management styles! wor# ethics
and more. HR managers have a challenge to deal with more fnctions!
more heterogeneos fnctions and more involvement in employee2s
personal life.
2. Corporate Re/organi$ations. / Reorgani$ation relates to mergers
and ac!"isitions3 &oint %ent"res3 ta5e o%er3 internal restr"ct"ring of
organi$ations' +n these sit"ations3 it is di6c"lt to imagine
circ"mstances that pose a greater challenge for HRM than
reorgani$ations itself' +t is a challenge to manage employees7 an8iety3
"ncertainties3 insec"rities and fears d"ring these dynamic trends'
(. Ne9 Organi$ational forms. / The #asic challenge to HRM comes
from the changing character of competitions' The competition is not
#et9een indi%id"al :rms #"t #et9een constellations of :rm' Ma&or
companies are operating thro"gh a comple8 9e# of strategic alliances3
forgings 9ith local s"ppliers3 etc' These relationships gi%e #irth to
completely ne9 forms of organi$ational str"ct"re3 9hich highly depend
"pon a reg"lar e8change of people and information' The challenge for
HRM is to cope 9ith the implications of these ne9ly net9or5ed
relations more and more3 in place of more comforta#le hierarchical
relationships that e8isted 9ithin the organi$ations for ages in the past'
6. 3hanging Demographics of Aor#force0 1 3hanges in wor#force
are largely reflected $y dal career coples! large chn# of yong
$lood $etween age old sperannating employees! wor#ing mothers!
more edcated and aware wor#ers etc. &hese dynamic wor#forces
have their own implications for HR managers and from HRM point of
view is a tre challenge to handle.
<. 3hanged employee e7pectations0 1 Aith the changes in
wor#force demographics! employee e7pectations and attitdes have
also transformed. &raditional allrements li#e %o$ secrity! hose! and
remnerations are not mch attractive today! rather employees are
demanding empowerment and e"ality with management. Hence it is
a challenge for HRM to redesign the profile of wor#ers! and discover
new methods of hiring! training! remnerating and motivating
=. +ew ,ndstrial Relations *pproach0 1 ,n today2s dynamic world!
even nions have nderstood that stri#es and militancy have lost their
relevance and nions are greatly affected $y it. &he trade nion
mem$ership has fallen drastically worldwide and the ftre of la$or
movement is in danger. &he challenge $efore HRM is to adopt a
proactive indstrial relations approach which shold ena$le HR
specialist to loo# into challenges nfolding in the ftre and to $e
prepared to convert them into opportnities.
9. Renewed 4eople /ocs0 1 &he need of today2s world and $siness
is the people2s approach. &he strctre! strategy! systems approach
which wor#ed in post war era is no more relevant in today2s economic
environment which is characterized $y over capacities and intense
competition. &he challenge of HR manager is to focs on people and
ma#e them %stifia$le and sstaina$le.
>. Managing the Managers0 1 Managers are ni"e tri$e in any
society! they $elieve they are class apart. &hey demand decision1
ma#ing! $ossism! and operational freedom. However in the post
li$eralization era! freedom given to managers is grossly missed to get
rid of talented and hard wor#ing %niors. &he challenge of HRM is how
to manage this tri$eF How to ma#e them realize that the freedom
given to them is to ena$le them ma#e "ic# decisions in the interest
of the organization and not to resort to witch1hnting.
?. Aea#er Society interests0 1 *nother challenge for HRM is to
protect the interest of wea#er sections of society. &he dramatic
increase of women wor#ers! minorities and other $ac#ward
commnities in the wor#force has reslted in the need for
organizations to ree7amine their policies! practices and vales. ,n the
name of glo$al competition! prodctivity and "ality the interests of
the society arond shold not $e sacrificed. ,t is a challenge of today2s
HR managers to see that these wea#er sections are neither denied
their rightfl %o$s nor are discriminated against while in service.
1@. 3ontri$tion to the sccess of organizations0 1 &he $iggest
challenge to an HR manager is to ma#e all employees contri$te to
the sccess of the organization in an ethical and socially responsi$le
way. 8ecase society2s well $eing to a large e7tent depends on its
Strategy is a way of doing something. ,t incldes the formlation of
goals and set of action plans for accomplishment of that goal.'
Strategic Management0
* 4rocess of formlating! implementing and evalating $siness
strategies to achieve organizational o$%ectives is called Strategic
;e:nition of Strategic Management. /
Strategic Management is that set of managerial decisions and actions
that determine the long1term performance of a corporation. ,t incldes
environmental scanning! strategy formlation! strategy
implementation and evalation and control.'
&he stdy of strategic management therefore emphasizes monitoring
and evalating environmental opportnities and threats in the light of
a corporation2s strengths and wea#nesses.
Steps in Strategic Management0
1. )nvironmental Scanning0 *nalyze the .pportnities and &hreats
in )7ternal )nvironment
2. Strategy /ormlation0 /ormlate Strategies to match Strengths
and Aea#nesses. ,t can $e done at 3orporate level! 8siness Dnit
:evel and /nctional :evel.
(. Strategy ,mplementation0 ,mplement the Strategies
6. )valation 5 3ontrol0 )nsre the organizational o$%ectives are
*llows identification! prioritization and e7ploration of opportnities.
4rovides an o$%ective view of management pro$lems.
Represents framewor# for improved co1ordination and control
Minimizes the effects of adverse conditions and changes
*llows ma%or decisions to $etter spport esta$lished o$%ectives
*llows more effective allocation of time and resorces
*llows fewer resorces and lesser time devoted to correcting ad
hoc decisions
3reates framewor# for internal commnication
Helps to integrate the individal $ehaviors
4rovides $asis for the clarification of responsi$ilities
)ncorages forward thin#ing
)ncorages favora$le attitde towards change.
Role in Strategy /ormlation0 HRM is in a ni"e position to spply
competitive intelligence that may $e sefl in strategy formlation.
Details regarding advanced incentive plans sed $y competitors!
opinion srvey data from employees! elicit information a$ot cstomer
complaints! information a$ot pending legislation etc. can $e provided
$y HRM. Dni"e HR capa$ilities serve as a driving force in strategy
Role in Strategy ,mplementation0 HRM spplies the company with a
competent and willing wor#force for e7ecting strategies. ,t is
important to remem$er that lin#ing strategy and HRM effectively
re"ires more than selection from a series of practice choices. &he
challenge is to develop a configration of HR practice choices that help
implement the organization2s strategy and enhance its
Definition 10 Organizing and enhancing capacities to produce.
HRD is a process of organizing and enhancing the physical! mental and
emotional capacities of individals for prodctive wor#.
Definition 20 Bring possibility of performance and growth
HRD means to $ring a$ot the possi$ility of performance improvement
and individal growth.
Hman resorce development is a process to help people to ac"ire
competencies and to increase their #nowledge! s#ills and capa$ilities
for $etter performance and higher prodctivity.
0roacti%e HR; Strategies for long term planning and gro9th
,n today2s fast changing! challenging and competitive environment
HRD has to ta#e a proactive approach that is to see# preventive care
in hman relations. Dsing HRD strategies ma7imizations of efficiency
and prodctivity cold $e achieved throgh "alitative growth of
people with capa$ilities and potentialities to grow and develop. HRD is
always a fnction of proper tilization of creative opportnities and
availa$le environment throgh ac"isition of #nowledge! s#ills and
attitdes necessary for prodctive efforts.
:ong1term growth can also $e planned $y creating highly inspired
grops of employees with high aspirations to diversify arond core
competencies and to $ild new organizational responses for coping
with change.
* proactive HRD strategy can implement activities that are geared p
and directed at improving personal competence and prodctive
potentialities of hman resorces.
/ollowing strategic choices can $e considered which wold help today2s
organizations to srvive and grow.
3hange Management0 Manage change properly and $ecome an
effective change agent rather than $eing a victim of change itself.
Gales0 *dopt proactive HRD measres! which encorage vales of
openness! trst! atonomy! proactivity and e7perimentation.
Ma7imize prodctivity and efficiency0 &hrogh "alitative growth of
people with capa$ilities and potentialities to grow and develop thrive
to ma7imize prodctivity and efficiency of the organization.
*ctivities directed to competence $ilding0 HRD activities need to $e
geared p and directed at improving personal competence and
prodctive potentialities of manpower resorces.
&)*M )//)3&,G)+)SS
Ahat is the definition of a teamF * team is defined as a reasona$ly
small grop of people! who $ring to the ta$le a set of complementary
and appropriate s#ills! and who hold themselves mtally acconta$le
for achieving a clear and identifia$le set of goals.
&eams can $e very effective. ,n many sitations teams can achieve
more than individals wor#ing on their own. &eams can $ring to $ear a
wider range of s#ills and e7perience to solve a pro$lem. &eams also
prodce $etter "ality decisions. Ahen a team has $een wor#ing on a
pro$lem! and they have a sense of commitment to the common
Ahat do we mean $y team effectivenessF
* team can $e considered to $e effective if their otpt is %dged to
meet or e7ceed the e7pectations of the people who receive the otpt.
4rodcing a "ality otpt is not enogh to %dge the effectiveness of
the team.
&he second criteria! is that the team shold still $e a$le fnction
effectively after they have completed their tas#. ,t shold not $e torn
apart $y dissension.
/inally! effectiveness is %dged $y whether the team feels satisfied
with its efforts. ,f the team mem$ers are pleased with their efforts! if
the e7perience has $een a good one! if time spent away from their
normal wor# has $een worth the effort! the team has li#ely $een
Ahat then are the factors that contri$te towards an effective teamF
&here are three areas of grop $ehavior that mst $e addressed for
teams to $e effective. &he team mst wor# hard. &he effort that the
team pts in to get the %o$ done is dependent on whether the natre
of the tas# motivates the mem$ers of the team and whether the goals
are challenging.&he team mst have the right mi7 of s#ills to $ring to
the ta$le. &hese s#ills inclde technical! pro$lem solving and
interpersonal s#ills. &he team mst $e a$le to develop appropriate
approaches to pro$lem solving. &his depends on developing a plan of
attac# and sing appropriate techni"es for analysis.
&he following factors contri$te to hard wor#! s#ill development and
effective pro$lem solving strategies0
&he tas# itself shold $e motivating.
&he tas# itself shold $e seen as $eing worthwhile. ,t needs to $e a
whole piece of wor# with a clear and visi$le otcome so that people
can feel a sense of ownership.
&he otcome of the tas# shold $e perceived as $eing important to
other peopleHs lives. ,t shold affect others in the organization or
impact on the e7ternal cstomer.
&he %o$ shold provide the team with an opportnity for self1
reglation. &hey shold decide how the wor# is to $e done. Meaningfl
feed$ac# shold $e provided on the how well the team is performing.
&he team needs challenging goals! which are clearly defined.
Ahen challenging goals are set the team will mo$ilize its efforts to
find innovative ways to achieve feats that may have $een considered
impossi$le. 4roviding a challenging %o$ is the most important
motivator to sstain grop effort.
-oals provide a sense of direction to the team so that when conflict
occrs it is possi$le to channel the conflict more constrctively $y
retrning to the goals for direction.
&he team needs to $y in to the goals. &hey mst have the
opportnity to $y in and commit to achieving the goals. -oals need
to $e challenging! $t not impossi$le to achieve. &hey also need to $e
measra$le so that progress towards achieving them can $e
monitored and reslts confirmed.
Rewards are important.
&he rewards need to sit the personal characteristics of the people
on the team.
Ahatever form the reward ta#es! it is important that grop effort
$e recognized. .ne shold avoid the destrctive effect of trying to
single ot individals from the grop! when there has $een a grop
Rewards merely reinforce these conditions for fostering grop
&he team shold have the right mi7 of s#ills.
&he right mi7 of s#ills shold $e $roght to the tas# at hand. ,t is
also a "estion of careflly reviewing the %o$ to determine what
relevant s#ills is re"ired and selecting staff so that the team has the
right $alance. 4roviding relevant training then ma#es p any shortfall
in s#ills.
&echnical s#ills are re"ired. /or teams who are trying to improve a
process that cts across department $ondaries! each fnction shold
$e represented. .ne shold achieve a $alance of s#ills. &his means
avoiding having a preponderance of s#ills and e7perience in one
specialized area. Sheer nm$ers may weigh the soltion towards the
dominant grop.
,n the case of permanent wor# teams it is li#ely that team
mem$ers will not have all the tas# relevant s#ills at the onset. Ahen
the grop is new! it is li#ely that mem$ers will $ring narrow s#ills
learned in their old roles. &hey will need to develop $roader s#ills for
the new %o$. &o ensre that this is done! training and coaching shold
$e provided.
&he mem$ers of the team need to have pro$lem solving and
decision1ma#ing s#ills as well as technical s#ills. Ahen a $siness is
ma#ing its first ventre into team $ased wor#! it is li#ely that people
will not have a good grasp of the techni"es related to pro$lem
analysis and soltion.
&hese relevant s#ills mst $e ac"ired! so it will $e necessary to
provide training. .ver a period of time staff will $ecome e7perienced
in pro$lem solving techni"es and the organization will develop a
repertoire of s#ills among the staff so this training will not always $e
,nterpersonal s#ills are also important. &his is not as o$vios as it
may sond. Most people do not listen well. :istening is mch more
than $eing "iet when some else is tal#ing. *ctive listening is
re"ired. Many people do not spea# to the point $t ram$le on or go
off at a tangent. Most people do not ta#e criticism well and tend to $e
defensive a$ot their own opinions.
*gree on a code of condct.
*t the $eginning of the team pro%ect it is important to develop a
code of condct for meetings. &he team needs to agree on a set of
rles to ensre that their efforts are prposefl and that all mem$ers
contri$te to the wor#.
&he most critical rles pertain to attendance! open discssion!
sing an analytical approach! not plling ran# over other mem$ers!
planning the wor# and sharing wor# assignments. &his will ensre that
the wor# is done well and done on time.
&he team mst develop effective pro$lem solving strategies.
/or the team to $e a$le to develop an appropriate strategy! it mst
have a clear definition of the pro$lem! #now what resorces it has
availa$le and the limits! and nderstand the e7pectations. ,t mst
then develop a pro$lem1solving plan! $ased on the approach
sggested in the section on continos improvement.
Ahen this does not happen! people are passive. &heir s#ills and
#nowledge are not tilized and they waste their time.
Special teams have special isses. /rom the perspective of
organisational improvement we are interested in three types of teams.
.ne is the pro$lem solving team! another is the wor# team and then
there is the senior management team.4ro$lem solving teams are set
p with a clearly defined tas# to investigate a pro$lem and
recommend a soltion. Sometimes the same team will go on to
implement the soltion. Ahen their tas# is completed the team is
dis$anded and mem$ers go $ac# to their normal organisational dties.
&here are two important isses facing these teams. .ne is getting
started and the other is handing over the recommendations for
implementation. &he #ey to getting started is to ensre that the team
is committed to achieving an agreed set of goals. -oals serve to focs
the teamHs effort.
,mplementation is important. ,t will not %st happenI it mst $e
planned. &he implementers mst $e $roght into the soltion stage so
that they develop a sense of ownership towards the soltion and $y
into it. &he $est way to do this is to have the pro$lem solving team do
the implementation.
*nother approach is to phase the implementers into the team so
that the mem$ership changes prior to the implementation. Ahatever
approach is sed one shold remem$er that the idea is to implement a
soltion and not to prodce a report.
Aor# teams are different in that they are a fi7ed part of the
organization. &hey have an ongoing fnction! which is to control a set
of activities that ma#e p a discrete operation in the overall $siness
process. &hey need to focs on the critical factors in their process and
to control these factors to ensre a "ality prodct.
Definition 10 1 Need, Availability, Supply!emand
HR4 incldes estimation of how many "alified people are necessary
to carry ot the assigned activities! how many people will $e availa$le!
and what! if anything! mst $e done to ensre personnel spply
e"als personnel demand at the appropriate point in the ftre.'
Definition 20 1 "ight numbers, #apability, Organization Ob$ectives
HR4 is a 4rocess! $y which an organization ensres that it has the
right nm$er and #ind of people at the right place! at the right time!
capa$le of effectively and efficiently completing those tas#s that will
help the organization achieve its overall o$%ectives.'
Definition (0 1 %ranslation of ob$ectives into &" numbersHR4 is a
process of translating organizational o$%ectives and plans into the
nm$er of wor#ers needed to meet those o$%ectives.'
M)*+,+- J 4DR4.S) ./ HR4
,n simple words HR4 is nderstood as the process of forecasting an
organization2s ftre demand for and spply of the right type of people
in the right nm$ers.
,t is only after HR4 is done! that the company can initiate and plan
the recritment and selection process.
HR4 is a s$1system in the total organizational planning.
HR4 facilitates the realization of the company2s o$%ectives $y
providing right type and right nm$er of personnel.
HR4 is important $ecase withot a clear1ct manpower planning!
estimation of a organization2s hman resorce need is redced to
mere gesswor#.
/orecast ftre personnel needs0 &o avoid the sitations of
srpls or deficiency of manpower in ftre! it is important to plan
yor manpower in advance. /or this prpose a proper forecasting of
ftres $siness needs helps yo to ascertain or ftre manpower
needs. /rom this angle! HR4 plays an important role to predict the
right size of manpower in the organization.
3ope with change0 HR4 ena$les an enterprise to cope with changes
in competitive forces! mar#ets! technology! prodcts and government
reglations. Sch changes generate changes in %o$ content! s#ills
demands and nm$er of hman resorces re"ired.
3reating highly talented personnel0 Since %o$s are $ecoming
highly intellectal and incm$ents getting vastly
professionalized! HR4 helps prevent shortages of la$or cased
$y attritions. /rther technology changes wold frther pgrade
or degrade %o$s and create manpower shortages. ,n these
sitations only accrate hman resorce planning can help to
meet the resorce re"irements. /rther HR4 is also an answer
to the pro$lems of sccession planning.
4rotection of wea#er sections 0 * well1conceived personnel
planning wold also help to protect the interests of the S3JS&!
physically handicapped! children of socially oppressed and $ac#ward
classes who en%oy a certain percentage of employments
notwithstanding the constittional provisions of e"al opportnity for
+nternational strate#ies: +nternational e0ansion strate#ies lar#el! &een& 'on
e%%ective HRP* 1it" #ro2in# tren&s to2ar&s #lobal oerations$ t"e nee& %or HRP %'rt"er
becomes more imortant as t"e nee& to inte#rate HRP more closel! into t"e or#ani)ation
3ees #ro2in#* T"is is also beca'se t"e rocess o% meetin# sta%%in# nee&s %rom %orei#n
co'ntries #ro2s in a comle0 manner* 4o'n&ation o% ersonnel %'nctions: HRP
rovi&es essential in%ormation %or &esi#nin# an& imlementin# ersonnel %'nctions s'c"
as recr'itment$ selection$ ersonnel &eveloment$ trainin# an& &eveloment etc*
,ncreasing investments in HR0 *nother importance is the
investment that an organization ma#es in hman capital. ,t is
important that employees are sed effectively throghot their
careers. 8ecase hman assets can increase the organization vale
tremendosly as opposed to physical assets
Resistance to change 5 move0 &he growing resistance towards
change and move! self evalation! loyalty and dedication ma#ing it
more difficlt to assme that organization can move its employees
everywhere. Here HR4 $ecomes very important and needs the
resorces to $e planned careflly.
.ther $enefits0 /ollowing are the other $enefits of HR4.
1. Dpper management has a $etter view of HR dimensions of
2. Management can anticipate im$alances $efore they $ecome
nmanagea$le and e7pensive.
(. More time is provided to locate talent
6. 8etter opportnities e7ists to inclde women and minorities in
ftre growth plans
<. 8etter planning of assignments to develop managers
=. Ma%or and sccessfl demands on local la$or mar#ets can $e
HR0 System as s"ch incl"des follo9ing elements or sets for planning
.verall .rganization .$%ectives
8siness )nvironment
/orecasting Manpower +eeds
*ssessing Manpower Spply
Matching Manpower Demand1Spply factors
8ased on these elements we can draw HR4 System *rchitectre' as
5'siness Environment
Or#ani)ation Objectives 6 Goals
Mano2er 4orecast Mano2er S'l! Assessment
Mano2er Pro#rammin#
Mano2er +mlementation
Control 6 Mano2er
S'rl's Mano2er S"orta#e o% Mano2er
HR4 4R.3)SS
.rganizational .$%ectives 5 4olicies0 1
&he o$%ectives of HR plan mst $e derived from organizational
o$%ectives li#e specific re"irements of nm$ers and characteristics of
employees etc. HR4 needs to s$1serve the overall o$%ectives $y
ensring availa$ility and tilization of hman resorces. Specific
policies need to $e formlated to address the following decisions.
,nternal Hiring or )7ternal HiringF
&raining 5 Development plans
Dnion 3onstraints
;o$ enrichment isses
Rightsizing organization
*tomation needs
3ontinos availa$ility of adaptive and fle7i$le wor#force
Manpower Demand /orecasting0 1
,t is the process of estimating the ftre "antity and "ality of people
&he $asis shold $e annal $dget and long term corporate plans
-eman& %orecastin# s"o'l& be base& on %ollo2in# %actors*
Internal 'actors( )
8dget constraints
4rodction levels
+ew prodcts and services
.rganizational strctre
Emlo!ee searation
*+ternal 'actors( )
3ompetition environment
)conomic climate
:aws and reglatory $odies
&echnology changes
Social /actors
"easons for ,anpower !emand 'orecasting( )
&o "antify %o$s
&o determine the Staff1mi7
&o assess staffing levels and avoid nnecessary costs
4revent shortages of people
Monitor comliances o% le#al re7'irements 2it" re#ar&s to reservations
Manpo9er -orecasting Techni!"es. /
Management ;dgment0 ,n this techni"es managers across all the
levels decide the forecast on their own %dgment. &his can $e $ottom1
p or top1down approach and %dgments can $e reviewed across
departments! divisions and top management can conclde on final
nm$ers of manpower re"ired.
Ration1&rend *nalysis0 &his techni"e involves stdying past ratios!
and forecasting ftre ratios ma#ing some allowance for changes in
the organization or its methods.
Aor# Stdy &echni"es0 ,t is possi$le when wor# measrement to
calclate the length of operations and the amont of manpower
re"ired. &he starting point can $e prodction $dget! followed $y
standard hors! otpt per horI man1hors re"ired etc cold $e
Delphi &echni"es0 &his techni"e solicits estimates from a grop of
e7perts! and HR4 e7perts normally act as intermediaries! smmarizes
varios responses and report the findings $ac# to e7perts.
/low Models0 &his techni"e involves the flow of following
components. Determine the time re"ired! )sta$lish categories! 3ont
annal movements! )stimate pro$a$le transitions. Here demand is a
fnction of replacing those who ma#e a transition.
Manpower Spply /orecasting0 1
&his process measres the nm$er of people li#ely to $e availa$le
from within and otside the organization after ma#ing allowance for
a$senteeism! internal movements and promotions! wastages! changes
in hors and other conditions of wor#.
"easons for ,anpower Supply 'orecasting(
3larify Staff1mi7es e7ist in the ftre
*ssess e7isting staff levels
4revent shortages
Monitor e7pected ftre compliance of legal re"irements of %o$
Supply Analysis covers(
)7isting Hman Resorces0 HR *dits facilitate analysis of e7isting
employees with s#ills and a$ilities. &he e7isting employees can $e
categorized as s#ills inventories Bnon1managersC and managerial
inventories BmanagersC
S-ill inventory would include the following.
4ersonal data
Special Kalifications
;o$ History
3ompany data
Secial re%erences
,anagement inventories would include the following
Aor# History
4romotion 4otential
3areer -oals
4ersonal Data
+m$er and &ypes of S$ordinates
&otal 8dget Managed
Previo's Mana#ement -'ties
Internal Supply: -
,nternal spply techni"es help to assess the following
,nflows and otflows Btransfers! promotions! separations!
resignations! retirements etc.C
&rnover rate B+o. .f separations p.a. J *verage employees p.a.
L 1@@C
3onditions of wor# Bwor#ing hors! overtime! etc.C
*$senteeism Bleaves! a$sencesC
4rodctivity level
8ob movements (8ob rotations or cross %'nctional 'tili)ations)
)7ternal Spply0 1
)7ternal sorces are re"ired for following reasons
+ew $lood!
+ew e7periences
Replenish lost personnel
.rganizational growth
)7ternal sorces can $e colleges and niversities! consltants!
competitors and nsolicited applications.
HR Plan +mlementation: ,
A series of action programs are initiated as a part of HR plan
implementation as "nder'
Recritment 5 Selection0 )mployees are hired against the %o$
vacancies. 8ased on the manpower demand and spply forecasts
made! hiring of employees is initiated $ased on spply forecasts. /or
this internal and e7ternal sorces of manpower are tilized. * formal
selection $oard is esta$lished to interview and select the $est of the
candidates for the re"ired vacancies. /inally the selected employees
also need to $e placed on proper %o$s. Here some companies recrit
employees for specific %o$s while others recrit fresh trainees in large
nm$er and train them for ftre manpower needs.
&raining and Development0 &he training and development program
is charted ot to cover the nm$er of trainees! e7isting staff etc. &he
programs also cover the identification of resorce personnel for
condcting development program! fre"ency of training and
development programs and $dget allocation.
Retraining and RedeploymentI +ew s#ills are to $e imparted to
e7isting staff when technology changes or prodct line discontined.
)mployees need to $e redeployed to other departments where they
cold $e gainflly employed.
Retention 4lan0 Retention plans cover actions! which wold redce
avoida$le separations of employees. Dsing compensation plans!
performance appraisals! avoiding conflicts! providing green pastres
etc! can do this.
Downsizing plans0 Ahere there is srpls wor#force trimming of
la$or force will $e necessary. /or these identifying and managing
redndancies is very essential.
Managerial Sccession 4lanningI Methods of managerial
sccession plans may vary. Most sccessfl programs seem to inclde
top managements involvement and commitment! high1level review of
sccession plans! formal performance assessment and potential
assessment and written development plans for individals. * typical
sccession planning involves following activities.
*nalysis of demand for managers and professionals
*dit of e7isting e7ectives
4ro%ection of ftre li#ely spply from internal and e7ternal
,ndividal career path planning
3areer conseling
*ccelerated promotions
4erformance related training and development
Strategic recritment
Control < E%al"ation of HR0. /
HR 4lan mst also clarify responsi$ilities for control and esta$lish
reporting procedres! which will ena$le achievements to $e monitored
against the plan. &he HR 4lan shold inclde $dgets! targets and
standards. &hese plans may simply $e reports on the nm$ers
employed! recrited against targets etc.
SD33)SS,.+ 4:*++,+-
Meaning of Sccession 4lanning
Sccession planning is the process or activities connected with the
sccession of persons to fill #ey positions in the organization hierarchy
as vacancies arise. &he focs of attention is towards Mwhich2 person the
sccession planning is needed. &he focs is not more on career
development $t it is more towards what #ind of person is re"ired to
fill the ftre vacancy. Sccession planning focses on identification of
vacancies and locating the pro$a$le sccessor. /or e7ample in
sccession planning the #ey concern can $e who will $e ne7t 3). or
what will happen if the Mar#eting Manager retires in coming March.
,mportance of Sccession 4lanning
Sccession planning helps when there is a sdden need arises de
to reason or retirement of a #ey employee.
,ndividal employee comes to #now in advance the level to which
he can rise if he has the a$ility and aptitde for it.
,ndividal employee or sccessor feels happy when he feels that
organization is ta#ing care of his talents and aspirations.
Sccession planning helps create loyalty towards the organization
and improved motivation and morale of individal employees.
.rganization gains sta$le wor#force and low employee trnover.
Dltimately organization $ecomes sccessfl in accomplishing its
goals effectively.
3*R))R 4:*++,+-
3areer planning is the process or activities offered $y the organization
to individals to identify strengths! wea#nesses! specific goals and
%o$s they wold li#e to occpy.
3areer as a concept means a lifelong se"ences of professional!
edcational and developmental e7periences that pro%ects an individal
throgh the world of wor#. ,t is a se"ence of positions occpied $y a
person dring his life. 3areer may also $e defined as amalgamation of
changes in vales! attitdes and motivation that occrs as a person
grows older.
,n career planning! organization is concerned with strategic "estions
of career development. /rther the organization is concerned a$ot if
it shold employ more gradates! more engineers! more scientists or
more accontants etc. 3areer planning provides pictre of sccession
plan for employees as per organizational needs. ,t focses on the
$asis of performance! e7perience! cold $e placed where! when and
3areer planning is a process of integrating the employees2 needs and
aspirations with organizational re"irements.
.$%ectives of 3areer 4lanning
1. 8ild commitment in the individal
2. Develop long1range perspective
(. Redce personal trnover e7penses
6. :essen employee o$solescence
<. )nsre organizational effectiveness
=. *llow individal to achieve personal and wor# related goals.
,mportance of 3areer 4lanning
3areer planning is important $ecase it helps the individal to e7plore!
choose and strive to derive satisfaction with his own career o$%ectives.
;.8 *+*:ES,S
;o$ is a Mgrop of tas#s to $e performed everyday.'
;.8 *+*:ES,S
Definition 10 /0rocess of #ollecting Information1
;o$ *nalysis is a process of stdying and collecting information
relating to operations and responsi$ilities of a specific %o$. &he
immediate prodcts of this analysis are M;o$ Description2 and M;o$
Definition 20 /Systematic *+ploration of Activities1
;o$ *nalysis is a systematic e7ploration of activities within a %o$. ,t is
a $asic technical procedre that is sed to define dties and
responsi$ilities and acconta$ilities of the %o$.'
Definition (0 /Identifying 2ob "e3uirements1
;o$ is a collection of tas#s that can $e performed $y a single
employee to contri$te to the prodction of some prodct or service!
provided $y the organization. )ach %o$ has certain a$ility re"irements
Bas well as certain rewardsC associated with it. ;o$ *nalysis is a
process sed to identify these re"irements.'
M)*+,+- ./ ;.8 *+*:ES,S
;o$ *nalysis is a process of collecting information a$ot a %o$. &he
process of %o$ analysis reslts into two sets of data.
;o$ Description
;o$ Specification
*s a reslt ;o$ analysis involves the following steps in a logical order.
Steps of 2ob Analysis
1. 3ollecting and recording %o$ information
2. 3hec#ing the %o$ information for accracy
(. Ariting %o$ description $ased on information collected to determine
the s#ills! #nowledge! a$ilities and activities re"ired
6. Dpdating and pgrading this information
4DR4.S) ./ ;.8 *+*:ES,S0 1
Hman Resorce 4lanning BHR4C0 1 &he nm$ers and types of
personnel are determined $y the %o$s! which need to $e staffed. ;o$
related information in the form of ;o$ *nalysis serves this prpose or
Recritment 5 Selection0 1 Recritment precedes %o$ analysis. ,t
helps HR to locate places to o$tain employees. ,t also helps in $etter
continity and planning in staffing in the organization. *lso selecting a
good candidate also re"ires detailed %o$ information. 8ecase the
o$%ective of hiring is to match the right candidate for right %o$
&raining 5 Development0 &raining and development programs
can $e designed depending pon %o$ re"irement and analysis.
Selection of trainees is also facilitated $y %o$ analysis.
;o$ )valation0 ;o$ evalation means determination of relative
worth of each %o$ for the prpose of esta$lishing wage and salary
credentials. &his is possi$le with the help of %o$ description and
specificationsI i.e. ;o$ *nalysis.
Remneration0 ;o$ analysis also helps in determining wage and
salary for all %o$s.
4erformance *ppraisal0 4erformance appraisal! assessments!
rewards! promotions! is facilitated $y %o$ analysis $y way of fi7ing
standards of %o$ performance.
4ersonnel ,nformation0 ;o$ analysis is vital for $ilding
personnel information systems and processes for improving
administrative efficiency and providing decision spport.
Safety 5 Health0 ;o$ *nalysis helps to ncover hazardos
conditions and nhealthy environmental factors so that corrective
measres can $e ta#en to minimize and avoid possi$ility of hman
4R.3)SS ./ ;.8 *+*:ES,S
4rocess 10 Strategic 3hoices
4rocess 20 3ollecting ,nformation
4rocess (0 4rocessing ,nformation
4rocess 60 ;o$ Description
4rocess <0 ;o$ Specification
Strategic 3hoices0 1
*+tent of involvement of employees( )7tent of employee
involvement is a de$ata$le point. &oo mch involvement may reslt in
$ias in favor of a %o$ in terms of inflating dties and responsi$ilities.
&oo less involvement leads to sspicion a$ot the motives $ehind the
%o$. 8esides it may also lead to inaccrate information. Hence e7tent
of involvement depends on the needs of the organization and
4evel of details of $ob analysis( &he natre of %o$s $eing analyzed
determines the level of details in %o$ analysis. ,f the prpose were for
training programs or assessing the worth of %o$! levels of details
re"ired wold $e great. ,f the prpose is %st clarification the details
re"ired wold $e less.
%iming and fre3uency of 2ob Analysis( Ahen do yo do ;o$
,nitial stage! for new organization
+ew ;o$ is created
3hanges in ;o$! &echnology and 4rocesses
Deficiencies and Disparities in ;o$
+ew compensation plan is introdced
Dpdating and pgrading is re"ired.
0ast)oriented and future)oriented 2ob Analysis( /or rapidly
changing organization more ftre oriented approach wold $e
desired. /or traditional organizations past oriented analysis wold $e
re"ired. However more ftre oriented analysis may $e derived
$ased on past data.
Sources of 2ob !ata( /or %o$ analysis nm$er of hman and non1
hman sorces is availa$le $esides %o$holder himself. /ollowing can $e
sorces of data availa$le for %o$ analysis.
+on1Hman Sorces Hman Sorces
)7isting %o$ descriptions and
)"ipment maintenance
)"ipment design $leprints
*rchitectral $leprints of
wor# area
/ilms of employee wor#ing
&raining manals and
Magazines! newspapers!
;o$ *nalysis
;o$ ,ncm$ents
;o$ )7perts
3ollecting ,nformation0 1
,nformation collection is done on the $asis of following ( parameters
%ypes of !ata for 2ob Analysis(
Aor# *ctivities B&as#s detailsC
,nterface with other %o$s and e"ipments B4rocedres! 8ehaviors!
Machines! &ools! )"ipments and Aor# *ids B:ist! Materials!
4rodcts! ServicesC
;o$ 3onte7t B4hysical! Social! .rganizational! Aor# schedleC
4ersonal Re"irement BS#ills! )dcation! &raining! )7perienceC
,ethods of !ata #ollection(
&echnical 3onference
Diary Methods
5ho to #ollect !ata6
&rained ;o$ *nalysts
;o$ ,ncm$ents
4rocessing ,nformation0 1
.nce the %o$ information is collected it needs to $e processed! so that
it wold $e sefl in varios personnel fnctions. Specifically %o$
related data wold $e sefl to prepare %o$ description and
specifications! which form the ne7t two processes of %o$ analysis.
M)&H.DS ./ D*&* 3.::)3&,.+0
Observation( ;o$ *nalyst careflly o$serves the %o$holder and
records the information in terms of what! how the %o$ is done and how
mch time is ta#en. ,t is a simple and accrate method! $t is also
time consming and inapplica$le to %o$s involving mental activities
and no$serva$le %o$ cycles. &he analysts mst $e flly trained
Interview( ,n this analyst interviews the %o$holders! his spervisors
to elicit information. ,t can $e Strctred or Dnstrctred ,nterview.
*gain this is also a time consming method in case of large
organizations. 4ls there is also a pro$lem of $ias.
7uestionnaires( * standard "estionnaire is given to %o$holder
a$ot his %o$! which can $e filled and given $ac# to spervisors or %o$
analysts. &he "estionnaire may contain %o$ title! %o$holder2s name!
managers name! reporting staff! description of %o$! list of main dties
and responsi$ilities etc. ,t is sefl in large nm$er of staffs and less
time consming. However the accracy of information leaves mch to
$e desired.
#hec-lists( ,t is more similar to "estionnaire $t the response sheet
contains fewer s$%ective %dgments and tends to $e either yes or no
variety. 4reparation of chec#list is a challenging %o$ itself.
%echnical #onference( Here a conference of spervisors is sed.
&he analysts initiate the discssions providing %o$ details. However
this method lac#s accracy.
!iary ,ethods( ,n this method %o$holder is re"ired to note down
their activities day $y day in their diary. ,f done faithflly this
techni"e is accrate and eliminates errors cased $y memory lapses
Kantitative Methods of ;o$ Data 3ollection0 1
4osition *nalysis Kestionnaire B4*KC0 1
4*K is a highly specialized instrment for analyzing any %o$ in terms
of employee activities. &he 4*K contains 1?6 %o$ elements on which
%o$ is created depending on the degree to which an element is
present. &hese elements are groped together into = categories.
1. D Dsa$ility J Dse of ;o$
2. , ,mportance of ;o$
(. & &ime
6. 4 4ossi$ility of .ccrrence of ;o$
<. * *pplica$ility of ;o$
=. S Specialty &as#s of ;o$
&he primary advantage of 4*K is that it can $e sed to analyze almost
every %o$. &his analysis provides a comparison of a specific %o$ with
other %o$ classifications! particlarly for selection and remneration
prposes. However 4*K needs to $e completed $y trained %o$ analysts
only rather than incm$ents.
Management 4osition Description Kestionnaire BM4DKC0 1
Highly strctred "estionnaire! containing 2@> elements relating to
managerial responsi$ilities! demand! restrictions and other position
characteristics &hese 2@> elements are groped nder 1( categories.
4*K and M4DK yield standardized information a$ot the
wor#er and the %o$.
/nctional ;o$ *nalysis0 1
,t is a wor#er oriented %o$ analytical approach! which
attempts to descri$e the whole person on the %o$.
8*RR,)RS ./ ;.8 *+*:ES,S
Spport from &op Management
Single means and sorce! reliance on single method rather than
+o &raining or Motivation to ;o$holders
Acti%ities and ;ata may #e ;istorted
;.8 D)S3R,4&,.+
;o$ Description implies o$%ective listing of the %o$ title! tas#s! and
responsi$ilities involved in a %o$.'
;o$ description is a word pictre in writing of the dties!
responsi$ilities and organizational relationships that constittes a
given %o$ or position. ,t defines contining wor# assignment and a
scope of responsi$ility that are sfficiently different from those of the
other %o$s to warrant a specific title. ;o$ description is a $road
statement of prpose! scope! dties and responsi$ilities of a particlar
3ontents of ;o$ Description
1. ;o$ ,dentification
2. ;o$ Smmary
(. ;o$ Dties and Responsi$ilities
6. Spervision specification
<. Machines! tools and materials
=. Aor# conditions
9. Aor# hazards
>. Definition of nsal terms
/ormat of ;o$ Description
;o$ &itle
Reporting to B.perational and ManagerialC
4rincipal dties and responsi$ilities
/eatres of -ood ;o$ Description
1. Dp to date
2. 4roper ;o$ &itle
(. 3omprehensive ;o$ Smmary
6. 3lear dties and responsi$ilities
<. )asily nderstanda$le
=. State %o$ re"irements
9. Specify reporting relationships
>. Showcase degrees of difficlties
?. ,ndicates opportnities for career development
1@. .ffer $ird2s1eye1view of primary responsi$ilities
;o$ Specification involves listing of employee "alifications! s#ills and
a$ilities re"ired to meet the %o$ description. &hese specifications are
needed to do %o$ satisfactorily.'
,n other words it is a statement of minimm and accepta$le hman
"alities necessary to perform %o$ properly. ;o$ specifications see#s to
indicate what #ind of persons may $e e7pected to most closely
appro7imate the role re"irements and ths it is $asically concerned
with matters of selection! screening and placement and is intended to
serve as a gide in hiring.
3ontents of ;o$ Specifications
1. 4hysical 3haracteristics
2. 4sychological characteristics
(. 4ersonal characteristics
6. Responsi$ilities
<. Demographic featres
/rther the %o$ specifications can $e divided into three $road
*ssential Attributes
!esirable Attributes
#ontra)Indicators 8 indicators hampering the success of $ob
;o$ )valation involves determination of relative worth of each %o$ for
the prpose of esta$lishing wage and salary differentials. Relative
worth is determined mainly on the $asis of %o$ description and %o$
specification only. ;o$ )valation helps to determine wages and salary
grades for all %o$s. )mployees need to $e compensated depending on
the grades of %o$s which they occpy. Remneration also involves
fringe $enefits! $ons and other $enefits. 3learly remneration mst
$e $ased on the relative worth of each %o$. ,gnoring this $asic
principle reslts in ine"ita$le compensation. * perception of ine"ity
is a sre way of de1motivating an employee.
;o$ evalation is a process of analyzing and assessing the varios %o$s
systematically to ascertain their relative worth in an organization.
;o$s are evalated on the $asis of content! placed in order of
importance. &his esta$lishes ;o$ Hierarchies! which is a prpose of
fi7ation of satisfactory wage differentials among varios %o$s.
;o$s are ran#ed Bnot %o$holdersC
Scope of ;o$ )valation
&he %o$ evalation is done for the prpose of wage and salary
differentials! demand for and spply of la$or! a$ility to pay! indstrial
parity! collective $argaining and the li#e.
4rocess of ;o$ )valation0
1. Defining o$%ectives of %o$ evalation
a. ,dentify %o$s to $e evalated B8enchmar# %o$s or all %o$sC
$. Aho shold evalate %o$F
c. Ahat training do the evalators needF
d. How mch time involvedF
e. Ahat are the criteria for evalationF
f. Methods of evalation to $e sed
2. Aage Srvey
(. )mployee 3lassification
6. )sta$lishing wage and salary differentials.
Methods of ;o$ )valation
*nalytical Methods
4oint Ran#ing Methods0 Different factors are selected for different
%o$s with accompanying differences in degrees and points. /actor
3omparison Method0 &he important factors are selected which can $e
assmed to $e common to all %o$s. )ach of these factors are then
ran#ed with other %o$s. &he worth of the %o$ is then ta#en $y adding
together all the point vales.
+on1*nalytical Methods
Ran#ing Method0 ;o$s are ran#ed on the $asis of its title or
contents. ;o$ is not $ro#en down into factors etc.
;o$ -rading Method0 ,t is $ased on the %o$ as a whole and the
differentiation is made on the $asis of %o$ classes and grades. ,n this
method it is important to form a grade description to cover discerni$le
differences in s#ills! responsi$ilities and other characteristics.
4itfalls of ;o$ )valation0
)ncorages employees on how to advance in position when there
may $e limited opportnities for enhancement as a reslt of
,t promotes internal focs instead of cstomer orientation
+ot sita$le for forward loo#ing organizations! which has trimmed
mltiple %o$ titles into two or three $road %o$s.
8O5 -ES+GN
T"e /o#ical Se7'ence to 8ob Anal!sis is 8ob -esi#n*
Definition 10 Integration of wor-, rewards and 3ualification
;o$ Design integrates wor# content Btas#s! fnctions! relationshipsC!
the rewards and "alifications re"ired inclding s#ills! #nowledge and
a$ilities for each %o$ in a way that meets the needs of employees and
the organization.'
Steps in ;o$ Design0 1
1. Specification of ,ndividal &as#s
2. Specification of Methods of &as#s 4erformance
(. 3om$ination of &as#s into Specific ;o$s to $e assigned to individals
/actors affecting ;o$ Design0 1
.rganizational factors0
3haracteristics of &as#s B4lanning! )7ection and 3ontrolling of
Aor# /low B4rocess Se"encesC
)rgonomics B&ime 5 Motion StdyC
Aor# 4ractices BSet of ways of performing tas#sC
)nvironmental /actors0
)mployee *$ilities and *vaila$ility
Social and 3ltral )7pectations
8ehavioral )lements0
Dse of *$ilities
&)3H+,KD)S ./ ;.8 D)S,-+0 1
Aor# Simplification0 ;o$ is simplified or specialized. &he %o$ is
$ro#en down into small parts and each part is assigned to an
individal. &o $e more specific! wor# simplification is mechanical
pacing of wor#! repetitive wor# processes! wor#ing only on one part of
a prodct! predetermining tools and techni"es! restricting interaction
amongst employees! few s#ills re"irement. Aor# simplification is
sed when %o$s are not specialized.
;o$ Rotation0 Ahen incm$ents $ecome $ore of rotine %o$s! %o$
rotation is an answer to it. Here %o$s remain nchanged! $t the
incm$ents shift from one %o$ to another. .n the positive side! it
increases the intrinsic reward potential of a %o$ $ecase of different
s#ills and a$ilities needed to perform it. Aor#ers $ecome more
competent in several %o$s! #now variety of %o$s and improve the self1
image! personal growth. /rther the wor#er $ecomes more vala$le to
the organization. 4eriodic %o$ changes can improve interdepartmental
cooperation. .n the negative side! it may not $e mch enthsiastic or
efficiency may not $e more. 8esides %o$s may not improve the
relationships $etween tas#! while activities and o$%ectives remain
nchanged. /rther training costs also rise and it can also de1motivate
intelligent and am$itios trainees who see# specific responsi$ilities in
their chosen specialties.
;o$ )nlargement0 ,t means e7panding the nm$er of tas#s! or
dties assigned to a given %o$. ;o$ enlargement is natrally opposite
to wor# simplification. *dding more tas#s or dties to a %o$ does not
mean that new s#ills and a$ilities are needed. &here is only horizontal
e7pansion. ,t is with same s#ills ta#ing additional responsi$ilities li#e
e7tending wor#ing hors etc. ;o$ enlargement may involve $rea#ing
p of the e7isting wor# system and redesigning a new wor# system.
/or this employees also need to $e trained to ad%st to the new
system. ;o$ enlargement is said to contri$te to employee motivation
$t the claim is not validated in practice.
Benefits of 2ob *nlargement(
9. &as# Gariety
:. Meaningfl Aor# Modles
;. /ll *$ility Dtilization
<. Aor#er 4aced 3ontrol
=. Meaningfl 4erformance /eed$ac#
!isadvantages of 2ob *nlargement
1. High &raining 3osts
2. Redesigning e7isting wor# system re"ired
(. 4rodctivity may not increase necessarily
6. Aor#load increases
<. Dnions demand payhi#e
=. ;o$s may still remain $oring and rotine
;o$ )nrichment0 ;o$ enrichment is improvisation of $oth tas#s
efficiency and hman satisfaction $y $ilding into people2s %o$s! "ite
specifically! greater scope for personal achievement and recognition!
more challenging and responsi$le wor# and more opportnity for
individal advancement and growth. *n enriched %o$ will have more
responsi$ility! more atonomy Bvertical enrichmentC! more variety of
tas#s Bhorizontal enrichmentC and more growth opportnities. &he
employee does more planning and controlling with less spervision $t
more self1evalation. ,n other words! transferring some of the
spervisor2s tas#s to the employee and ma#ing his %o$ enriched.
8enefits of ;o$ enrichment
1. ,t $enefits employee and organization in terms of increased
motivation! performance! satisfaction! %o$ involvement and redced
2. *dditional featres in %o$ meet certain psychological needs of
%o$holders de to s#ill variety! identity! significance of %o$ etc.
(. ,t also adds to employee self1esteem and self1control.
6. ;o$ enrichment gives stats to %o$holder and acts as a strong
satisfier in one2s life.
<. ;o$ enrichment stimlates improvements in other areas of
=. )mpowerment is a $y1prodct of %o$ enrichment. ,t means
passing on more athority and responsi$ility.
Demerits of ;o$ )nrichment
1. :azy employees may not $e a$le to ta#e additional
responsi$ilities and power. ,t won2t fetch the desired reslts for an
employee who is not attentive towards his %o$.
2. Dnions resistance! increased cost of design and
implementation and limited research on long term effect of %o$
enrichment are some of the other demerits.
(. ;o$ enrichment itself might not $e a great motivator since it is
%o$1intrinsic factor. *s per the two1factor motivation theory! %o$
enrichment is not enogh. ,t shold $e preceded $y hygienic factors
6. ;o$ enrichment assmes that wor#ers want more
responsi$ilities and those wor#ers who are motivated $y less
responsi$ility! %o$ enrichment srely de1motivates them
<. Aor#ers participation may affect the enrichment process itself.
=. 3hange is difficlt to implement and is always resisted as %o$
enrichment $rings in a changes the responsi$ility.
*tonomos of Self1Directed &eams0 )mpowerment reslts in
self1directed wor# teams. * self directed team is an intact grop of
employees responsi$le for whole wor# segment! they wor# together!
handle day1to1day pro$lems! plan and control! and are highly effective
High 4erformance Aor# Design0 ,mproving performance in an
environment where positive and demanding goals are set leads to high
performance wor# design. ,t starts from the principle of atonomos
grops wor#ing and developing an approach! which ena$les grop to
wor# effectively together in sitations where the rate of innovation is
very high. .perational fle7i$ility is important and there is the need for
employees to gain and apply new s#ills "ic#ly with minimm
spervision. However de to $reacracy high performance wor#
design does not wor#.
D)S,-+,+- ;.8S M.&,G*&,+- ;.8S
&he concept of motivating %o$s relates to ;o$ design. ;o$ design
affects employee prodctivity! motivation and satisfaction. ;o$ design
is a conscios effort to organize tas#s! dties and responsi$ilities into
a nit of wor# to achieve certain o$%ectives.
How a %o$ design creates a motivating %o$ can $e seen with the help
of certain components of %o$ design! namely! %o$ rotation! %o$
enlargement! %o$ enrichment! wor# simplification etc.
Aor# simplification simplifies the %o$ $y $rea#ing down the %o$ into
small parts. Simplified %o$s are easy to perform hence employees find
it easy to do. &raining re"irements are redced and it $enefits the
organizations in terms of cost.
;o$ rotation means movement of employees of %o$ to %o$ across the
organization. ,t improves the intrinsic reward potential of a %o$
$ecase of different s#ills and a$ilities are needed to perform a %o$.
Aor#ers $ecome more competent in several %o$s rather than only one.
,t also improves wor#ers self image! provides personal growth and
ma#es wor#ers more vala$le to the organization. 4eriodic %o$ change
can improve inter1departmental cooperation. )mployees $ecome more
nderstanding to each other2s pro$lems. 3onse"ently it provides a
high level of motivation to employees $ecase %o$s itself $ecome
motivators. Hence %o$ rotation helps the %o$ $ecome more motivating.
;o$ enlargement involves e7panding nm$er of tas#s or dties
assigned to a given %o$.
;o$ enrichment involves improving tas# efficiency and hman
satisfaction. ;o$ enrichment provides greater scope for personal
achievement and recognition! more challenging and responsi$le wor#
and more opportnity for individal advancement and growth. *n
enriched %o$ gives vertical enrichment in the form of more
responsi$ility and atonomy and a horizontal enrichment in the form
of variety of tas#s and more growth opportnities. &he employee does
more planning and controlling with less spervision $t more self1
evalation. *ll these factors lead to increased level of motivation and
hence ma#e the %o$s more motivated.
3onsidering a$ove e7amples! we can say that designing %o$s is
actally sing the relevant and right techni"es of %o$ design! li#e
rotation! enrichment! simplifications and ma#e the %o$s more
motivating to perform.
So we can say that Designing ;o$s is actally creating Motivated ;o$s.
;o$ satisfaction is the reslt of varios attitdes possessed $y an
employee towards his %o$! related factors and life in general. &he
attitdes related to %o$ may $e wages! spervision! steadiness!
wor#ing conditions! advancement opportnities! recognitions! fair
evalation of wor#! social relations on %o$! prompt settlement of
grievances etc.
,n short %o$ satisfaction is a general attitde! which is the reslt of
many specific attitdes in three areas namely! %o$ factors! individal
characteristics and grop relationships otside the %o$.
3omponents of ;o$ Satisfaction
4ersonal factors0 Se7! Dependents! *ge! &imings! ,ntelligence!
)dcation and 4ersonality.
;o$ inherent factors0 &ype of wor#! S#ills! .ccpational stats!
-eography! Size of plant
Management controlled factors0 Secrity! 4ayment! /ringe $enefits!
*dvancement opportnities and Aor#ing conditions! 3o1wor#ers!
Responsi$ilities! Spervision
;o$ Satisfaction 5 8ehavior relationship is descri$ed throgh following
Satisfaction 5 &rnover
Satisfaction 5 *$senteeism
Satisfaction 5 *ccidents
Satisfaction 5 ;o$ 4erformance
-e%inition :: Meas'rin# an& 7'anti%!in# activities;A meas'rement tec"ni7'e %or t"e
7'antitative anal!sis o% non,reetitive or irre#'larl! occ'rrin# activit!*;
Meanin# o% 1or3 Samlin# 1or3 samlin# is base& on t"e t"eor! t"at t"e ercenta#e o%
t"e n'mber o% observations on a artic'lar activit! is a reliable meas're o% t"e
ercenta#e o% t"e total act'al time sent on t"at activit!* Aor# sampling
operates $y an o$server ta#ing a series of random o$servations on
a particlar NthingN of interest Bmachine! operating room! doc#!
etc.C to o$serve its NstateN Bwor#ing! idle! sleeping! empty! etc.C.
Ahen enogh samples are ta#en! an analysis of the o$servations
yields a statistically valid indication of the states for each thing
analyzed. *ssme! for e7ample! that yo wish to determine the
proportion of time a factory operator is wor#ing or idle. *lso
assme that 2@@ random o$servations were made of the operator
and dring 26 of these he or she was o$served to $e idle.
&herefore! yo find that the individal is wor#ing 19=J2@@ O >>P
of the time.
*dvantages of Aor# Sampling,t is relatively ine7pensive to se and
e7tremely helpfl in providing a deeper nderstanding of all types of
operations. Ahen properly sed! it can help pinpoint those areas!
which shold $e analyzed in! frther detail and can serve as a
measre of the progress $eing made in improving operations
.Kestions of wor# sampling stdy
Ahat is or e"ipmentJasset tilizationF
Ahen we are not adding vale to the prodct! how are we spending
or timeF
How are or inter1dependent systems performingF
Ahere shold we focs or continos improvement activitiesF
Distinction $etween Aor# sampling and N&ime StdiesN
Aor# sampling is lower cost $ecase it ses random samples
instead of continos o$servations.
Many operators or machines can $e stdied $y a single o$server
Aor# sampling can span several days or wee#s! ths minimizing the
effects of day to day load or e"ipment variations
Aor# Sampling tends to minimize operator $ehavior modification
dring o$servation.
1or3 Samlin#$ in #eneral$ &oes not re7'ire a traine& time,st'&! anal!st to ta3e t"e
observations* Also$ sto2atc"es or ot"er timin# &evices are not re7'ire&* Man!
st'&ies ma3e 'se o% o%%,s"i%t tec"nicians or oerators to ta3e t"e observations* 1or3
samlin# Met"o&olo#!
*n analyst R*+D.M:E o$serves an activity Be"ipment! operating
room! prodction lineC and notes the particlar states of the activity at
each o$servation.
&he ratio of the nm$er of o$servations of a given state of the activity
to the total nm$er of o$servations ta#en will appro7imate the
percentage of time that the activity is in that given state.
+ote that random o$servations are very critical for a wor# sampling
stdy. * $rief e7ample might $e that 99 of 1@@ o$servations showed a
machine to $e rnning. Ae might then conclde! within certain
statistical limits! that the e"ipment is operational 99P of the time.
Definition .f Recritment0 'inding and Attracting Applications
Recritment is the 4rocess of finding and attracting capa$le
applicants for employment. &he 4rocess $egins when new recrits are
soght and ends when their applications are s$mitted. &he reslt is a
pool of application from which new employees are selected.'
M)*+,+- ./ R)3RD,&M)+&0
Recritment is nderstood as the process of searching for and
o$taining applicants for %o$s! from among them the right people can
$e selected. &hogh theoretically recritment process is said to end
with the receipt of applications! in practice the activity e7tends to the
screening of applications so as to eliminate those who are not "alified
for the %o$.
4DR4.S) *+D ,M4.R&*+3) ./ R)3RD,&M)+&0 1
1. Determine the present and ftre re"irements in con%nction with
personnel planning and %o$ analysis activities
2. ,ncrease the pool of %o$ candidates at minimm cost
(. Help increase sccess rate of selection process $y redcing nm$er
of nder1"alified or over1"alified applications.
6. Redce the pro$a$ility that %o$ applicants once selected wold leave
<. Meet legal and social o$ligations
=. ,dentify and prepare potential %o$ applicants
9. )valate effectiveness of varios recritment techni"es and
sorces for %o$ applicants.
/*3&.RS -.G)R+,+- R)3RD,&M)+&
)7ternal /actors0
Demand and Spply BSpecific S#illsC
Dnemployment Rate B*rea1wiseC
:a$or Mar#et 3onditions
4olitical and :egal )nvironment BReservations! :a$or lawsC
,nternal /actors
Recritment 4olicy B,nternal Hiring or )7ternal HiringFC
Hman Resorce 4lanning B4lanning of resorces re"iredC
Size of the .rganization B8igger the size lesser the recritment
-rowth and )7pansion 4lans
R)3RD,&M)+& 4R.3)SS
Recritment 4lanning
+m$er of contacts
&ypes of contacts
Recritment Strategy Development
Ma#e or 8y )mployees
&echnological Sophistication
Ahere to loo#
How to loo#
,nternal Recritment BSorce 1C
4resent employees
)mployee referrals
&ransfers 5 4romotions
/ormer )mployees
4revios *pplicants
)valation of ,nternal Recritment
)7ternal Recritment BSorce 2C
4rofessionals or &rade *ssociations
)mployment )7changes
3amps Recritment
Aal#1ins ,nterviews
Displaced 4ersons
Radio 5 &elevision
*c"isitions 5 Mergers
)valation of )7ternal Recritment
Sorce activation
Screening of *pplications
)valation and 3ost 3ontrol
Salary 3ost
Management 5 4rofessional &ime spent
*dvertisement 3ost
4rodcing Spporting literatre
Recritment .verheads and )7penses
3ost of .vertime and .tsorcing
3onsltant2s fees
)valation of Recritment 4rocess
Retrn rate of applications sent ot
Sita$le 3andidates for selection
Retention and 4erformance of selected candidates
Recritment 3ost
&ime lapsed data
,mage pro%ection
,+&)R+*: R)3RD,&M)+&
*dvantages Disadvantages
1. :ess 3ostly
2. 3andidates already
oriented towards organization
(. .rganizations have $etter
#nowledge a$ot internal
6. )mployee morale and
motivation is enhanced
1. .ld concept of doing things
2. ,t a$ets raiding
(. 3andidates crrent wor#
may $e affected
6. 4olitics play greater roles
<. Morale pro$lem for those
not promoted.
)L&)R+*: R)3RD,&M)+&
*dvantages Disadvantages
1. 8enefits of new s#ills and
2. 8enefits of new
(. 3ompliance with
reservation policy $ecomes
6. Scope for resentment!
%ealosies! and heart$rn are
1. 8etter morale and
motivation associated with
internal recriting is denied
2. ,t is costly method
(. 3hances of creeping in
false positive and false
negative errors
6. *d%stment of new
employees ta#es longer time.
S):)3&,.+0 1
M)*+,+- ./ S):)3&,.+0
Selection is the process of pic#ing p individals Bot of the pool of %o$
applicantsC with re"isite "alifications and competence to fill %o$s in
the organization. * formal definition of Selection is as nder
Definition of Selection0 0rocess of differentiating
Selection is the process of differentiating $etween applicants in order
to identify and hire those with a greater li#elihood of sccess in a %o$.'
D,//)R)+3) 8)&A))+ R)3RD,&M)+& *+D S):)3&,.+0
Recritment Selection
1. Recritment refers to the
process of identifying and
encoraging prospective
employees to apply for %o$s.
2. Recritment is said to $e
positive in its approach as it
see#s to attract as many
candidates as possi$le.
1. Selection is concerned with
pic#ing p the right
candidates from a pool of
2. Selection on the other
hand is negative in its
application in as mch as it
see#s to eliminate as many
n"alified applicants as
possi$le in order to identify
the right candidates.
4R.3)SS J S&)4S ,+ S):)3&,.+
1. 4reliminary ,nterview0 &he prpose of preliminary interviews is
$asically to eliminate n"alified applications $ased on information
spplied in application forms. &he $asic o$%ective is to re%ect misfits.
.n the other hands preliminary interviews is often called a cortesy
interview and is a good p$lic relations e7ercise.
2. Selection &ests0 ;o$see#ers who past the preliminary interviews
are called for tests. &here are varios types of tests condcted
depending pon the %o$s and the company. &hese tests can $e
*ptitde &ests! 4ersonality &ests! and *$ility &ests and are condcted
to %dge how well an individal can perform tas#s related to the %o$.
8esides this there are some other tests also li#e ,nterest &ests
Bactivity preferencesC! -raphology &est BHandwritingC! Medical &ests!
4sychometric &ests etc.
(. )mployment ,nterview0 &he ne7t step in selection is employment
interview. Here interview is a formal and in1depth conversation
$etween applicant2s accepta$ility. ,t is considered to $e an e7cellent
selection device. ,nterviews can $e! 4anel ,nterview! or
Se"ential ,nterviews. 8esides there can $e Strctred and
Dnstrctred interviews! 8ehavioral ,nterviews! Stress ,nterviews.
6. Reference 5 8ac#grond 3hec#s0 Reference chec#s and
$ac#grond chec#s are condcted to verify the information provided
$y the candidates. Reference chec#s can $e throgh formal letters!
telephone conversations. However it is merely a formality and
selections decisions are seldom affected $y it.
<. Selection Decision0 *fter o$taining all the information! the most
critical step is the selection decision is to $e made. &he final decision
has to $e made ot of applicants who have passed preliminary
interviews! tests! final interviews and reference chec#s. &he views of
line managers are considered generally $ecase it is the line manager
who is responsi$le for the performance of the new employee.
=. 4hysical )7amination0 *fter the selection decision is made! the
candidate is re"ired to ndergo a physical fitness test. * %o$ offer is
often contingent pon the candidate passing the physical e7amination.
9. ;o$ .ffer0 &he ne7t step in selection process is %o$ offer to those
applicants who have crossed all the previos hrdles. ,t is made $y
way of letter of appointment.
>. 3ontract of )mployment0 *fter the %o$ offer is made and
candidates accept the offer! certain docments need to $e e7ected $y
the employer and the candidate. Here is a need to prepare a formal
contract of employment! containing written contractal terms of
employment etc.
)SS)+&,*:S ./ * -..D S):)3&,.+ 4R*3&,3)
1. Detailed %o$ descriptions and %o$ specifications prepared in advance
and endorsed $y personnel and line management
2. &rained the selectors
(. Determine aids to $e sed for selection process
6. 3hec# competence of recritment consltants $efore retention
<. ,nvolve line managers at all stages
=. *ttempt to validate the procedre
9. Help the appointed candidate to scceed $y training and
management development
8*RR,)RS &. )//)3&,G) S):)3&,.+0 1
1. 4erception0 Ae all perceive the world differently. .r limited
perceptal a$ility is o$viosly a stm$ling $loc# to the o$%ective and
rational selection of people.
2. /airness0 8arriers of fairness incldes discrimination against
religion! region! race or gender etc.
(. Galidity0 * test that has $een validated can differentiate $etween
the employees who can perform well and those who will not. However
it does not predict the %o$ sccess accrately.
6. Relia$ility0 * relia$le test may fail to predict %o$ performance with
<. 4ressre0 4ressre $roght on selectors $y politicians!
$reacrats! relatives! friends and peers to select particlar candidate
are also $arriers to selection.
Definition of &raining 5 Development0 Improve performance
>%raining ? !evelopment is any attempt to improve crrent or ftre
employee performance $y increasing an employee2s a$ility to perform
throgh learning! sally $y changing the employee2s attitde or
increasing his or her s#ills and #nowledge.'
M)*+,+- ./ &R*,+,+- 5 D)G):.4M)+&0 1
&he need for &raining and Development is determined $y the
employee2s performance deficiency! compted as follows.
&raining 5 Development +eed O Standard 4erformance *ctal
Ae can ma#e a distinction among &raining! Development and
Distinction $etween &raining and )dcation
&raining )dcation
*pplication oriented
;o$ e7perience
Specific &as# in mind
+arrow 4erspective
&raining is ;o$ Specific
&heoretical .rientation
3lassroom learning
3overs general concepts
Has 8road 4erspective
)dcation is no $ar
&raining0 &raining refers to the process of imparting specific s#ills. *n
employee ndergoing training is presmed to have had some formal
edcation. +o training program is complete withot an element of
edcation. Hence we can say that &raining is offered to operatives.
)dcation0 ,t is a theoretical learning in classrooms. &he prpose of
edcation is to teach theoretical concepts and develop a sense of
reasoning and %dgment. &hat any training and development program
mst contain an element of edcation is well nderstood $y HR
Specialists. *ny sch program has niversity professors as resorce
persons to enlighten participants a$ot theoretical #nowledge of the
topics proposed to discss. ,n fact organizations depte or encorage
employees to do corses on part time $asis. 3).s are #nown to
attend refresher corses condcted $y $siness schools. &he
edcation is more important for managers and e7ectives rather than
low cadre wor#ers. *nyways edcation is common to all employees!
their grades notwithstanding.
Development0 Development means those learning opportnities
designed to help employees to grow. Development is not primarily
s#ills oriented. ,nstead it provides the general #nowledge and
attitdes! which will $e helpfl to employers in higher positions. )fforts
towards development often depend on personal drive and am$ition.
Development activities sch as those spplied $y management
development programs are generally volntary in natre.
Development provides #nowledge a$ot $siness environment!
management principles and techni"es! hman relations! specific
indstry analysis and the li#e is sefl for $etter management of a
.$%ectives of BMD4C Management Development 4rograms .R
*dvantages of Development
1. Ma#ing them
Reslt oriented
Sensitive to environment
Dnderstand se of power
2. 3reating self awareness
(. Develop inspiring leadership styles
6. ,nstill zest for e7cellence
<. &each them a$ot effective commnication
=. &o s$ordinate their fnctional loyalties to the interests of the
Difference $etween &raining and Development
&raining Development
&raining is s#ills focsed Development is creating
learning a$ilities
&raining is presmed to have
a formal edcation
Development is not edcation
&raining needs depend pon
lac# or deficiency in s#ills
Development depends on
personal drive and am$ition
&rainings are generally need
Development is volntary
&raining is a narrower
concept focsed on %o$
Development is a $roader
concept focsed on
related s#ills personality development
&raining may not inclde
Development incldes
training wherever necessary
&raining is aimed at
improving %o$ related
efficiency and performance
Development aims at overall
personal effectiveness
inclding %o$ efficiencies
Ahat are the &raining ,nptsF
4ro$lem Solving S#ills
Decision Ma#ing
*ttitdinal 3hanges
,mportance of &raining 5 Development
Helps remove performance deficiencies in employees
-reater sta$ility! fle7i$ility and capacity for growth in an
*ccidents! scraps and damages to machinery can $e avoided
Serves as effective sorce of recritment
,t is an investment in HR with a promise of $etter retrns in ftre
Redces dissatisfaction! a$senteeism! complaints and trnover of
+eed of &raining
,ndividal level
Diagnosis of present pro$lems and ftre challenges
,mprove individal performance or fi7 p performance deficiency
,mprove s#ills or #nowledge or any other pro$lem
&o anticipate ftre s#ill1needs and prepare employee to handle
more challenging tas#s
&o prepare for possi$le %o$ transfers
-rop level
&o face any change in organization strategy at grop levels
Ahen new prodcts and services are lanched
&o avoid scraps and accident rates
,dentification of &raining +eeds BMethodsC
,ndividal &raining +eeds ,dentification
1. 4erformance *ppraisals
2. ,nterviews
(. Kestionnaires
6. *ttitde Srveys
<. &raining 4rogress /eed$ac#
=. Aor# Sampling
9. Rating Scales
-rop :evel &raining +eeds ,dentification
1. .rganizational -oals and .$%ectives
2. 4ersonnel J S#ills ,nventories
(. .rganizational 3limate ,ndices
6. )fficiency ,ndices
<. )7it ,nterviews
=. M8. J Aor# 4lanning Systems
9. Kality 3ircles
>. 3stomer Satisfaction Srvey
?. *nalysis of 3rrent and *nticipated 3hanges
8enefits of &raining +eeds ,dentification
1. &rainers can $e informed a$ot the $roader needs in advance
2. &rainers 4erception -aps can $e redced $etween employees and
their spervisors&rainers can design corse inpts closer to the
specific needs of the participants
(. Diagnosis of cases of performance deficiencies can $e done
Methods of &raining
.n the ;o$ &rainings0 &hese methods are generally applied on the
wor#place while employees is actally wor#ing. /ollowing are the on1
the1%o$ methods.
*dvantages of .n1the1;o$ &raining0
,t is directly in the conte7t of %o$
,t is often informal
,t is most effective $ecase it is learning $y e7perience
,t is least e7pensive
&rainees are highly motivated
,t is free from artificial classroom sitations
Disadvantages of .n1the1;o$ &raining0
&rainer may not $e e7perienced enogh to train
,t is not systematically organized
4oorly condcted programs may create safety hazards
.n the ;o$ &raining Methods
1. ;o$ Rotation0 ,n this method! sally employees are pt on
different %o$s trn $y trn where they learn all sorts of %o$s of varios
departments. &he o$%ective is to give a comprehensive awareness
a$ot the %o$s of different departments. *dvantage employee gets
to #now how his own and other departments also fnction.
,nterdepartmental coordination can $e improved! instills team spirit.
Disadvantage ,t may $ecome too mch for an employee to learn. ,t
is not focsed on employees own %o$ responsi$ilities. )mployees $asic
talents may remain nder tilized.
2. ;o$ 3oaching0 *n e7perienced employee can give a ver$al
presentation to e7plain the nitty1gritty2s of the %o$.
(. ;o$ ,nstrction0 ,t may consist an instrction or directions to
perform a particlar tas# or a fnction. ,t may $e in the form of orders
or steps to perform a tas#.
6. *pprenticeships0 -enerally fresh gradates are pt nder the
e7perienced employee to learn the fnctions of %o$.
<. ,nternships and *ssistantships0 *n intern or an assistants are
recrited to perform a specific time1$ond %o$s or pro%ects dring their
edcation. ,t may consist a part of their edcational corses.
.ff the ;o$ &rainings0 &hese are sed away from wor# places while
employees are not wor#ing li#e classroom trainings! seminars etc.
/ollowing are the off1the1%o$ methodsI
*dvantages of .ff1the1;o$ &raining0
&rainers are sally e7perienced enogh to train
,t is systematically organized
)fficiently created programs may add lot of vale
Disadvantages of .ff1the1;o$ &raining0
,t is not directly in the conte7t of %o$
,t is often formal
,t is not $ased on e7perience
,t is least e7pensive
&rainees may not $e highly motivated
,t is more artificial in natre
.ff the ;o$ &raining Methods
1. 3lassroom :ectres0 ,t is a ver$al lectre presentation $y an
instrctor to a large adience. *dvantage ,t can $e sed for large
grops. 3ost per trainee is low. Disadvantages :ow poplarity. ,t is
not learning $y practice. ,t is .ne1way commnication. +o athentic
feed$ac# mechanism. :i#ely to $oredom.
2. *dio1Gisal0 ,t can $e done sing /ilms! &elevisions! Gideo! and
4resentations etc. *dvantages Aide range of realistic e7amples!
"ality control possi$le!. Disadvantages .ne1way commnication!
+o feed$ac# mechanism. +o fle7i$ility for different adience.
(. Simlation0 creating a real life sitation for decision1ma#ing and
nderstanding the actal %o$ conditions give it. /ollowing are some of
the simlation methods of trainings
a. 3ase Stdies0 ,t is a written description of an actal
sitation and trainer is spposed to analyze and give his conclsions in
writing. &he cases are generally $ased on actal organizational
sitations. ,t is an ideal method to promote decision1ma#ing a$ilities
within the constraints of limited data. Role 4lays0 Here trainees
assme the part of the specific personalities in a case stdy and enact
it in front of the adience. ,t is more emotional orientation and
improves interpersonal relationships. *ttitdinal change is another
reslt. &hese are generally sed in MD4.
$. Sensitivity &rainings0 &his is more from the point of view of
$ehavioral assessment! nder different circmstances how an
individal will $ehave himself and towards others. &here is no
preplanned agenda and it is instant. *dvantages increased a$ility to
empathize! listening s#ills! openness! tolerance! and conflict resoltion
s#ills. Disadvantage 4articipants may resort to their old ha$its after
the training.
6. 4rogrammed ,nstrctions0 4rovided in the form of $loc#s either in
$oo# or a teaching machine sing "estions and /eed$ac#s withot
the intervention of trainer. *dvantages Self paced! trainees can
progress at their own speed! strong motivation for repeat learning!
material is strctred and self1contained. Disadvantages Scope for
learning is lessI cost of $oo#s! manals or machinery is e7pensive.
<. 3ompter *ided ,nstrctions0 ,t is e7tension of 4, method! $y
sing compters. *dvantages 4rovides acconta$ilities! modifia$le to
technological innovations! fle7i$le to time. Disadvantages High cost.
=. :a$oratory &raining
8arriers to )ffective &raining0
1. :ac# of Management commitment
2. ,nade"ate &raining $dget
(. )dcation degrees lac# s#ills
6. :arge scale poaching of trained staff
<. +on1coordination from wor#ers de to downsizing trends
=. )mployers and 8 Schools operating distantly
9. Dnions inflence
How &o Ma#e &raining )ffectiveF
1. Management 3ommitment
2. &raining 5 8siness Strategies ,ntegration
(. 3omprehensive and Systematic *pproach
6. 3ontinos and .ngoing approach
<. 4romoting :earning as /ndamental Gale
=. 3reations of effective training evalation system
Definition 10 0lanned Introduction
,t is a 4lanned ,ntrodction of employees to their %o$s! their co1
wor#ers and the organization per se.'
.rientation conveys 6 types of information0
1. Daily Aor# Rotine
2. .rganization 4rofile
(. ,mportance of ;o$s to the organization
6. Detailed .rientation 4resentations4rpose of .rientation
1. &o ma#e new employees feel at home in new environment
2. &o remove their an7iety a$ot new wor#place
(. &o remove their inade"acies a$ot new peers
6. &o remove worries a$ot their %o$ performance
<. &o provide them %o$ information! environment
&ypes of .rientation 4rograms
1. /ormal or ,nformal
2. ,ndividal or -rop
(. Serial or Dis%nctive
4rere"isites of )ffective .rientation 4rogram
1. 4repare for receiving new employee
2. Determine information new employee wants to #now
(. Determine how to present information
6. 3ompletion of 4aperwor#
4ro$lems of .rientations
1. 8sy or Dntrained spervisor
2. &oo mch information
(. .verloaded with paperwor#
6. -iven menial tas#s and discorage interests
<. Demanding tas#s where failre chances are high
=. )mployee thrown into action soon
9. Arong perceptions of employees
Ahat is the difference $etween indction and orientationF
,ndction referred to formal training programs that an employee had
to complete $efore they cold start wor#
Orientation 9as the informal information gi%ing that made the recr"it
a9are of the comfort iss"es / 9here the facilities are3 9hat time l"nch
is and so forth'How long shold the indction process ta#eF
,t starts when the %o$ ad is written! contines throgh the selection
process and is not complete ntil the new team mem$er is
comforta$le as a fll contri$tor to the organizationHs goals.
&he first hor on day one is a critical component 1 signing on! issing
#eys and passwords! e7plaining no go zones! emergency procedres!
meeting the people that yo will interact with all have to $e done
immediately. Dntil they are done the newcomer is on the payroll! $t
is not employed.
After that it is a matter of &"st in time training / e8panding the content
as ne9 d"ties are "nderta5en'
2e only employ ne9 people one at a time / ho9 can 9e ind"ct them=
&here are some isses! which cannot wait 1 they vary according to
yor sitation. 4erhaps a $ddy system on the %o$ may $e the $est
way to deal with these. .ther s$%ects may $e incorporated with
refresher training for crrent staff! or handled as participant in an
otside program. 4erhaps some can wait ntil there are grops of
people who have started in the last few months.
This may ta5e some creati%e thin5ing3 #"t the ans9er is !"ite simple /
"ntil the ne9 people are integrated then they are less "sef"l' The
math is often ama$ingly simple / not ta5ing the time to train cons"mes
more time than the training 9o"ld'
Ahat levels of staff need indctionF
E%ery#ody' The CEO needs to 5no9 di4erent things to the temporary
concierge3 #"t e%eryone needs a planned program of ind"ction and
4lacement is allocation of people to %o$s. ,t is assignment or
reassignment of an employee to a new or different %o$.
MD:&, SQ,::,+-
Mlti S#illing is &he ,ntegrated S#ills 4rogram that has $een developed
to $ild on the e7isting s#ills of the crrent wor# force to redce
redndancies and avoid downsizing sitations. &he o$%ective of this
program is to gain total integration of s#ills.
&he program is $ased arond Mon1the1%o$2 5 Moff1the1%o$2 competence.
&hat is the a$ility to do the %o$ on the shop floor Btraining to gain wor#
e7perienceC and Moff1the1%o$2 Btraining in the classroomC to gain
nderpinning #nowledge.
&he program re"ires the individal to demonstrate competence in a
nm$er of different s#ills and this competence is measred and
assessed on the %o$.Mlti1s#illing of corse wor#s $est with more
advanced s#illed wor#ers $ecase their individal s#ills levels are
developed enogh where they can flidly transition from one s#ill to
the ne7t withot degradation of a s#ills performance. ,f yo are mlti1
s#illing and a great percentage of yor wor#ers are having pro$lems
e7ecting one of the s#ills effectively it is pro$a$ly a good signal yo
need to go $ac# to $asics with that s#ill and pll it ot of the mlti1
s#illing se"ences. *nother advantage of mlti1s#illing is the positive
effect of what is called Nconte7tal learningN. 3onte7tal learning
involves discovery and improvement from two s#ills! which donHt! on
the srface! appear to have a direct relationship.&he disadvantages of
mlti1s#illing inclde the o$vios danger of moving on to "ic#ly
toward advanced s#ills and com$inations withot sfficiently drilling
$asic s#ills. Ahile there is a great desire to learn "ic#ly , thin# this is
one of the reason we are seeing $etter s#illed from some of the $est
wor#ers. &he conse"ence is that we $ecome Npartially s#illedN. &he
greater the nm$er of partial s#ills we develop! the less chance we
ever have of reaching or fll potential.
3H*+-) M*+*-)M)+&
3hange vis1R1vis
4erformance *ppraisals
Meaning of 3hange0
*lterations in 4eople! Strctre and &echnology
)7ternal /orces of 3hange0
:a$or mar#ets
)conomic 3hanges
:aws and Reglations
,nternal /orces of 3hange
3orporate Strategies
&echnology and )"ipments
)mployee *ttitdes
3hange *gents0 BAho can $ring a$ot changeFC
)7ternal 3onsltants
Staff Specialists
4rocess of 3hange B:ewins stepsC
Ahite water rapids metaphor
:ac# of Sta$ility
:ac# of 4redicta$ility
Girtal 3haos
3onstant 3hange
Resistance to 3hange
Dncertainty and *m$igity
4ersonal :oss 3oncerns
Dis$elief in 3hange $enefits
&echni"es of Redcing Resistance to 3hange
)dcation and 3ommnication
Maniplation and 3o1optation
3hange Management
Strctral 3hanges &echnological
4eople 3hanges
.rganizational Development &echni"es
Srvey /eed$ac#
Sensitivity &raining
4rocess 3onsltation
&eam 8ilding
,nter1grop Development
3onditions /acilitating 3hange
Dramatic 3risis
:eadership 3hange
Aea# 3ltre
Eong and Small .rganization BageingC
&he Road to 3hange in 3ltre
*nalyze the cltre
+eed for change
+ew leadership
+ew stories and ritals
3hange the %o$ systems
&KM GJs. Reengineering
&KM B&otal Kality
Re engineering
3ontinos 3hange
/i7ing and ,mproving
Mostly focsed on M*s1,s2
Systems indispensa$le
8ottom to &op
Radical and .ne time 3hange
Mostly focsed on Mwhat can
&op to 8ottom
Managing Downsized Aor#force
.pen and honest commnication
*ssistance to them
Help for srvivors of the downsized
Stress in Aor#place
.pportnities stress
Demands stress
3onstraints stress
How to redce wor#place stress
)mployee selection
.rganizational commnication
4erformance 4lanning
;o$ redesign especially when processes change! %o$s merged! and
relocation happens
)mployee conseling
&ime management programs
Ahat is creativityF
3om$ining new ideas in ni"e ways or associating ideas in nsal
Ahat is innovationF
&rning creative ideas into sefl prodcts! services or methods of
( Sets of varia$le simlate innovation
Strctral 3hanges
3ltral 3hanges
H"man Reso"rces Changes
3hange Defined
N3hange is the window throgh which the ftre enters yor life.N ,tHs
all arond yo! in many types and shapes. Eo can $ring it a$ot
yorself or it can come in ways
Ahy 3hange ManagementF
Eo can $ring the change a$ot yorself or it can come in ways that
give yo little choice a$ot its what! when! and how. /ighting against
change can slow it down or divert it! $t it wonHt stop it however. ,f
yo wish to scceed in this rapidly changing new world Nyo mst
learn to loo# on change as a friend 1 one who presents yo with an
opportnity for growth and improvement.N
&he rate of change in todayHs world is constantly increasing.
)verything that e7ists is getting old! wearing ot and shold $e
replaced. NRevoltionary technologies! consolidation! well1fnded new
competition! npredicta$le cstomers! and a "ic#ening in the pace of
change hrled nfamiliar conditions at management.N
&re sccess and long1term prosperity in the new world depends on
yor a$ility to adapt to different and constantly changing conditions.
&he strategic selection of the $est strategic positioning in the playing
field! or the 8siness Space! yor firm mst ta#e is complicated $y the
fact that the characteristics of the 8siness Space change over time.
&oday! the world is a different place than it was yesterday. N*t certain
points! the difference $ecomes material. Sccessfl firms recognize
change. Gery sccessfl ones anticipate it.N
)voltionary B4lannedC
3hange verss Revoltionary *ction
How yo change a $siness nit to adapt to shifting economy and
mar#ets is a matter of management style. )voltionary change! that
involves setting direction! allocating responsi$ilities! and esta$lishing
reasona$le timelines for achieving o$%ectives! is relatively painless.
However! it is rarely fast enogh or comprehensive enogh to move
ahead of the crve in an evolving world where sta#es are high! and
the response time is short. Ahen faced with mar#et1driven rgency!
a$rpt and sometimes disrptive change! sch as dramatic downsizing
or reengineering! may $e re"ired to #eep the company competitive.
,n sitations when timing is critical to sccess! and companies mst
get more efficient and prodctive rapidly! revoltionary change is
Ahen choosing $etween evoltionary change and revoltionary action!
a leader mst prse a $alanced and pragmatic approach. Swinging
too far to revoltionary e7treme may create Nan organizational cltre
that is so impatient! and so focsed on change! that it fails to give
new initiatives and new personnel time to ta#e root! sta$ilize! and
grow. AhatHs more! it creates a high1tension environment that
intimidates rather than nrtres people! leaving them with little or no
emotional investment in the company.N
Resistance to 3hange
Most people donHt li#e change $ecase they donHt li#e $eing changed.
N,f yo want to ma#e enemies! try to change somethingN! advised
Aoodrow Ailson. Ahen see#ing to change an organization! itHs
strategy or processes! leaders rn into +ewtonHs law that a $ody at
rest tends to stay at rest. *dvocates for change are greeted with
sspicion! anger! resistance! and even sa$otage.
N+ot invented hereN
syndrome also #eeps many sond ideas from gaining the o$%ective
assessment they deserve...More
&odayHs Aorld Realities
&he magnitde of todayHs environmental! competitive! and glo$al
mar#et change is nprecedented. ,tHs a very interesting and e7citing
world! $t itHs also volatile and chaotic0
Golatility descri$es the economyHs rate of change0 e7tremely fast!
with e7plosive psrges and sdden downtrns.
3haos descri$es the direction of the economyHs changes0 weHre
not sre e7actly where weHre headed! $t we are swinging $etween
the varios alternatives at a very high speed.

&o cope with an npredicta$le world yo mst $ild an enormos
amont of fle7i$ility into yor organization. Ahile yo cannot predict
the ftre! yo can get a handle on trends! which is a way to ta#e
advantage of change and convert ris#s into opportnities.
3reating 3hange for ,mprovement and 3ompetitive *dvantage
3hange creates opportnities! $t only for those who recognize and
seize it. NSeeing is the first step! seizing the second! and continosly
innovating is the third.N
,nnovation redefines growth opportnities. *s
crrent prodcts are $ecoming o$solete faster than ever! in order to
srvive and prosper! organizations continally need to improve!
innovate and modify their prodcts and services. &he Silicon Galley
slogan N)at lnch and yo are lnchN is more than a reflection of
increasingly intense wor# ethic. Riding the wave of change is
$ecoming the most important part of the $siness. Ahile the economy
is shifting and innovation is rampant! Ndoing it the same wayN is a
recipe for corporate e7tinction.
Sccessfl change efforts are those where the choices $oth are
internally consistent and fit #ey e7ternal and sitational varia$les.
NEo have to find s$tle ways to introdce change! new concepts! and
give feed$ac# to people so that they can accept and grow with it.N
*nticipating 3hange
&here is $ig difference $etween anticipating and gessing. *nticipation
means e7pecting! $eing aware of something in advance! to regard it
as possi$le. &he a$ility to anticipate is one of the #ey ingredients of
efficient speed and change management. N8eing a$le to anticipate
that which is li#ely to occr in the ne7t few months and the ne7t few
years is enogh to give yo an edge over ??P of the poplation who
simply go along with whatever happens.N
How can yo see the ftreF *ctally! anticipation is natral 1
everyone does it every day. Dnfortnately! most people limit
e7ercising their anticipatory s#ills to daily rotine matters. *ll yo
really need to start applying these s#ills for yor $siness is a small
head start...More
Starting with Eorself
&he $est place to start change is with yorself. ,f whatever yo do
doesnHt wor#! yo mst $e fle7i$le 1 yo mst change yor action plan
if the crrent one does not prodce the re"ired reslts. ,f yo want
other people to change! yo mst $e prepared to ma#e the first step
yorself. ,f yo cannot change yor environment! yo shold change
yor attitde. &o achieve effective personal change! consider
practicing the +:4 &echnology of *chievement that was specially
developed to discover how people can e7cel! and most particlarly
when managing change 1 how to create the Hdifference that ma#es the
:eading 3hange&he old ways of management no longer wor# and
will never wor# again. Sccessfl change re"ires leadership. Ahen
change fails to occr as planned! the case if often to $e fond at a
deeper level! rooted in the inappropriate $ehavior! $eliefs! attitdes!
and assmptions of wold1$e leaders.
:eadership is all a$ot the
process of change0 how to stay ahead of it! master it! $enefit from the
opportnities it $rings. &he $est leaders stri#e first $y ta#ing the
offensive against economic cycles! mar#et trends! and competitors.
&hey discover the most effective ways for achieving significant change
1 Na change that identifies the realities of the $siness environment
and reorders them so that a new force is a$le to leverage! rather than
resist! those realities in order to achieve a competitive advantage.N
&he following system will help yo to nleash the power of yor
organization and reshape it into a more competitive enterprise0
Develop a vision. &o create a seamless $ridge from the vision to
action! start with yor top management team 1 they shold
nderstand and em$race yor vision.
*lign all yor people against the endgame. ,nvite their opinion
regarding critical isses sch as the direction yo shold $e headed!
the changes yo have to ma#e! and the resorces yo have to
Dsing the employee feed$ac#! develop a strategic plan. Stay
laser1focsed on the methods that will drive yor $siness nit
towards its stated o$%ectives.
8ild a diverse leadership grop representing all the #ey
constitencies of yor organization. &hey will share responsi$ility for
plan management.
Share detail information a$ot the company and the change
progress 1 people have to nderstand where yo are and where yo
are going in order to contri$te effectively to yor mission.Managing
.rganizational 3hange
Sccess in $siness doesnHt come from feeling comforta$le. ,n todayHs
technology1driven world! $siness life cycles have accelerated
e7ponentially. &he challenge is to #eep a step ahead of changing
mar#et conditions! new technologies and hman resorces isses.
&he wheel of $siness evoltion is a framewor# and set of tools! which
ena$les yo to manage the comple7 process of organizational change
and transformation more effectively. &he se"ence of the eight
segments 1 $siness environment! $siness ecosystem! $siness
design! leadership style! organizational vales! management process!
#nowledge management systems! and performance measres 1
reflects the learning cycle that occrs when otside1in or $ottom1p
learning ta#es place.8ehavioral 3hange
&he challenge and the shape of an organizationHs $ehavioral change
program depend on the corporate cltre and the targeted $ehaviors
that need to $e changed. Eor change program needs to $e e7plicitly
$ilt arond these challenges. NGery often! these programs involve the
creation of incentives which elegantly reinforce the desired $ehavior
Band therein reinforce the change loop in the learning
...Motivating )mployees to )m$race 3hange
Eo have a choice of instrments to motivate yor people to em$race
change. 4erformance1incentive levers are especially sefl in driving
those who lac# direction or initiative. Eo may also encorage
employee feed$ac# on where and how the company can ta#e
corrective action and reward employees for their contri$tion. ,n any
case! Nonce yo open the gates and encorage employees to serve as
agents of change! yo mst demonstrate that their inpt will have a
real1world impact on the way yor company does $siness.N
.n the other side! yo have to $e rather aggressive when dealing with
people who view change as a threat and create road$loc#s that stall
progress. *nyone who thin#s that itHs harmless to ma#e e7ceptions for
a few people and shift resorces to accommodate poor performers is
missing an important point. N,tHs not a few people who are at sta#e!
itHs the corporate cltreN! says Miles -reer! of Savannah )lectric. N8y
permitting those who resist or retaliate against change to remain in
the company! yo $roadcast a message that sggests spporting the
companyHs mission statement is optional. )ven worse! yo permit the
least1committed employees to taint and inflence the attitde and
performance of their peers.N
Moving with Speed
,n the new economy where everything is moving faster and itHs only
going to get faster! the new mantra is! NDo it more with less and do it
&o $e a$le to move with speed! companies need to esta$lish a
change1friendly environment and develop for ma%or competencies0
fast thin#ing! fast decision ma#ing! fast acting! and sstaining speed.
Ma#ing Kic# Decisions throgh )sta$lishing -iding 4rinciples
/ast companies that have demonstrated the a$ility to sstain srge
and velocity all have esta$lished sets of giding principles to help
them ma#e "ic# decisions. *$andoning theoretical and politically
correct HvalesH and $reacratic procedres in favor of a practical!
down1to1earth list of giding principles will help yor company ma#e
the decision1ma#ing process mch faster. .nly one "estion will need
to $e as#ed of any proposed corse of action0 Does it fit or giding
Definition 10 Systematic *valuation
,t is a systematic evalation of an individal with respect to
performance on the %o$ and individal2s potential for development.'
Definition 20 'ormal System, "easons and ,easures of future
,t is formal! strctred system of measring! evalating %o$ related
$ehaviors and otcomes to discover reasons of performance and how
to perform effectively in ftre so that employee! organization and
society all $enefits.'
Meaning of 4erformance *ppraisals
4erformance *ppraisals is the assessment of individal2s performance
in a systematic way. ,t is a developmental tool sed for all rond
development of the employee and the organization. &he performance
is measred against sch factors as %o$ #nowledge! "ality and
"antity of otpt! initiative! leadership a$ilities! spervision!
dependa$ility! co1operation! %dgment! versatility and health.
*ssessment shold $e confined to past as well as potential
performance also. &he second definition is more focsed on $ehaviors
as a part of assessment $ecase $ehaviors do affect %o$ reslts.
4erformance *ppraisals and ;o$ *nalysis Relationship
;o$ *nalysis 4erformance
Descri$e the wor#
and personnel
re"irement of a
particlar %o$.
&ranslate %o$
re"irements into
levels of
accepta$le or
Descri$e the %o$
relevant strengths
and wea#nesses of
each individal.
.$%ectives of 4erformance *ppraisals
Dse of 4erformance *ppraisals
1. 4romotions
2. 3onfirmations
(. &raining and Development
6. 3ompensation reviews
<. 3ompetency $ilding
=. ,mprove commnication
9. )valation of HR 4rograms
>. /eed$ac# 5 -rievances
6 -oals of 4erformance *ppraisals
-eneral -oals Specific -oals
Developmental Dse ,ndividal needs
4erformance feed$ac#
&ransfers and 4lacements
Strengths and Development
*dministrative Decisions J
Retention J &ermination
:ay offs
4oor 4erformers identification
.rganizational Maintenance HR 4lanning
&raining +eeds
.rganizational -oal
-oal ,dentification
HR Systems )valation
Reinforcement of
organizational needs
Docmentation Galidation Research
/or HR Decisions
:egal Re"irements
4erformance *ppraisal 4rocess
1. .$%ectives definition of appraisal
2. ;o$ e7pectations esta$lishment
(. Design an appraisal program
6. *ppraise the performance
<. 4erformance ,nterviews
=. Dse data for appropriate prposes
9. ,dentify opportnities varia$les
>. Dsing social processes! physical processes! hman and compter
Difference $etween &raditional and Modern BSystemsC approach to
#ategories %raditional
,odern, Systems
-iding Gales ,ndividalistic!
3ontrol oriented!
4ro$lem solving
:eadership Styles Directional!
/re"ency .ccasional /re"ent
/ormalities High :ow
Rewards ,ndividalistic -roped!
&)3H+,KD)S J M)&H.DS ./ 4)R/.RM*+3) *44R*,S*:S
+meros methods have $een devised to measre the "antity and
"ality of performance appraisals. )ach of the methods is effective for
some prposes for some organizations only. +one shold $e dismissed
or accepted as appropriate e7cept as they relate to the particlar
needs of the organization or an employee.
8roadly all methods of appraisals can $e divided into two different
4ast .riented Methods
/tre .riented Methods
4ast .riented Methods
1. Rating Scales0 Rating scales consists of several nmerical scales
representing %o$ related performance criterions sch as dependa$ility!
initiative! otpt! attendance! attitde etc. )ach scales ranges from
e7cellent to poor. &he total nmerical scores are compted and final
conclsions are derived. *dvantages *dapta$ility! easy to se! low
cost! every type of %o$ can $e evalated! large nm$er of employees
covered! no formal training re"ired. Disadvantages Rater2s $iases
2. 3hec#list0 Dnder this method! chec#list of statements of traits of
employee in the form of Ees or +o $ased "estions is prepared. Here
the rater only does the reporting or chec#ing and HR department does
the actal evalation. *dvantages economy! ease of administration!
limited training re"ired! standardization. Disadvantages Raters
$iases! se of improper weighs $y HR! does not allow rater to give
relative ratings
(. /orced 3hoice Method0 &he series of statements arranged in the
$loc#s of two or more are given and the rater indicates which
statement is tre or false. &he rater is forced to ma#e a choice. HR
department does actal assessment. *dvantages *$sence of
personal $iases $ecase of forced choice. Disadvantages Statements
may $e wrongly framed.
6. /orced Distri$tion Method0 here employees are clstered arond a
high point on a rating scale. Rater is compelled to distri$te the
employees on all points on the scale. ,t is assmed that the
performance is conformed to normal distri$tion. *dvantages
)liminates Disadvantages *ssmption of normal distri$tion!
nrealistic! errors of central tendency.
<. 3ritical ,ncidents Method0 &he approach is focsed on certain critical
$ehaviors of employee that ma#es all the difference in the
performance. Spervisors as and when they occr record sch
incidents. *dvantages )valations are $ased on actal %o$
$ehaviors! ratings are spported $y descriptions! feed$ac# is easy!
redces recency $iases! chances of s$ordinate improvement are
high. Disadvantages +egative incidents can $e prioritized! forgetting
incidents! overly close spervisionI feed$ac# may $e too mch and
may appear to $e pnishment.
=. 8ehaviorally *nchored Rating Scales0 statements of effective and
ineffective $ehaviors determine the points. &hey are said to $e
$ehaviorally anchored. &he rater is spposed to say! which $ehavior
descri$es the employee performance. *dvantages helps overcome
rating errors. Disadvantages Sffers from distortions inherent in
most rating techni"es.
9. /ield Review Method0 &his is an appraisal done $y someone otside
employees2 own department sally from corporate or HR department.
*dvantages Dsefl for managerial level promotions! when
compara$le information is needed! Disadvantages .tsider is
generally not familiar with employees wor# environment! .$servation
of actal $ehaviors not possi$le.
>. 4erformance &ests 5 .$servations0 &his is $ased on the test of
#nowledge or s#ills. &he tests may $e written or an actal
presentation of s#ills. &ests mst $e relia$le and validated to $e
sefl. *dvantage &ests may $e apt to measre potential more than
actal performance. Disadvantages &ests may sffer if costs of test
development or administration are high.
?. 3onfidential Records0 Mostly sed $y government departments!
however its application in indstry is not rled ot. Here the report is
given in the form of *nnal 3onfidentiality Report B*3RC and may
record ratings with respect to following itemsI attendance! self
e7pression! team wor#! leadership! initiative! technical a$ility!
reasoning a$ility! originality and resorceflness etc. &he system is
highly secretive and confidential. /eed$ac# to the assessee is given
only in case of an adverse entry. Disadvantage is that it is highly
s$%ective and ratings can $e maniplated $ecase the evalations are
lin#ed to HR actions li#e promotions etc.
1@. )ssay Method0 ,n this method the rater writes down the
employee description in detail within a nm$er of $road categories
li#e! overall impression of performance! promotea$ility of employee!
e7isting capa$ilities and "alifications of performing %o$s! strengths
and wea#nesses and training needs of the employee. *dvantage ,t is
e7tremely sefl in filing information gaps a$ot the employees that
often occr in a $etter1strctred chec#list. Disadvantages ,t its
highly dependent pon the writing s#ills of rater and most of them are
not good writers. &hey may get confsed sccess depends on the
memory power of raters.
11. 3ost *cconting Method0 Here performance is evalated from the
monetary retrns yields to his or her organization. 3ost to #eep
employee! and $enefit the organization derives is ascertained. Hence
it is more dependent pon cost and $enefit analysis.
12. 3omparative )valation Method BRan#ing 5 4aired 3omparisonsC0
&hese are collection of different methods that compare performance
with that of other co1wor#ers. &he sal techni"es sed may $e
ran#ing methods and paired comparison method.
"an-ing ,ethods( Sperior ran#s his wor#er $ased on merit!
from $est to worst. However how $est and why $est are not
ela$orated in this method. ,t is easy to administer and e7planation.
0aired #omparison ,ethods( ,n this method each employee is
rated with another employee in the form of pairs. &he nm$er of
comparisons may $e calclated with the help of a formla as nder.
+ 7 B+11C J 2
/tre .riented Methods
1. Management 8y .$%ectives0 ,t means management $y o$%ectives
and the performance is rated against the achievement of o$%ectives
stated $y the management. M8. process goes as nder.
)sta$lish goals and desired otcomes for each s$ordinate
Setting performance standards
3omparison of actal goals with goals attained $y the employee
)sta$lish new goals and new strategies for goals not achieved in
previos year.
*dvantage ,t is more sefl for managerial positions.
Disadvantages +ot applica$le to all %o$s! allocation of merit pay may
reslt in setting short1term goals rather than important and long1term
goals etc.
2. 4sychological *ppraisals0 &hese appraisals are more directed to
assess employees potential for ftre performance rather than the
past one. ,t is done in the form of in1depth interviews! psychological
tests! and discssion with spervisors and review of other evalations.
,t is more focsed on employees emotional! intellectal! and
motivational and other personal characteristics affecting his
performance. &his approach is slow and costly and may $e sefl for
$right yong mem$ers who may have considera$le potential. However
"ality of these appraisals largely depend pon the s#ills of
psychologists who perform the evalation.
(. *ssessment 3enters0 &his techni"e was first developed in DS* and
DQ in 1?6(. *n assessment center is a central location where
managers may come together to have their participation in %o$ related
e7ercises evalated $y trained o$servers. ,t is more focsed on
o$servation of $ehaviors across a series of select e7ercises or wor#
samples. *ssessees are re"ested to participate in in1$as#et
e7ercises! wor# grops! compter simlations! role playing and other
similar activities which re"ire same attri$tes for sccessfl
performance in actal %o$. &he characteristics assessed in assessment
center can $e assertiveness! persasive a$ility! commnicating a$ility!
planning and organizational a$ility! self confidence! resistance to
stress! energy level! decision ma#ing! sensitivity to feelings!
administrative a$ility! creativity and mental alertness etc.
Disadvantages 3osts of employees traveling and lodging!
psychologists! ratings strongly inflenced $y assessee2s inter1personal
s#ills. Solid performers may feel sffocated in simlated sitations.
&hose who are not selected for this also may get affected.
*dvantages well1condcted assessment center can achieve $etter
forecasts of ftre performance and progress than other methods of
appraisals. *lso relia$ility! content validity and predictive a$ility are
said to $e high in assessment centers. &he tests also ma#e sre that
the wrong people are not hired or promoted. /inally it clearly defines
the criteria for selection and promotion.
6. (=@1Degree /eed$ac#0 ,t is a techni"e which is systematic
collection of performance data on an individal grop! derived from a
nm$er of sta#eholders li#e immediate spervisors! team mem$ers!
cstomers! peers and self. ,n fact anyone who has sefl information
on how an employee does a %o$ may $e one of the appraisers. &his
techni"e is highly sefl in terms of $roader perspective! greater
self1development and mlti1sorce feed$ac# is sefl. (=@1degree
appraisals are sefl to measre inter1personal s#ills! cstomer
satisfaction and team $ilding s#ills. However on the negative side!
receiving feed$ac# from mltiple sorces can $e intimidating!
threatening etc. Mltiple raters may $e less adept at providing
$alanced and o$%ective feed$ac#.
)thics of 4erformance *ppraisals J :egally defensi$le 4erformance
)thics of 4rocedres
1. /ormal Standardized 4erformance *ppraisal Systems
2. Dniform to all employees! no illegal differentiations $ased on cast!
religion etc.
(. Standards formally commnicated to all employees
6. /reedom to review performance appraisal reslts
<. /ormal appeal process a$ot ratings and %dgments
=. Aritten instrctions and training to raters
9. *ll personal decision ma#ers shold $e aware of anti1discrimination
)thics of 3ontents
1. 3ontent $ased on %o$ analysis
2. &raits $ased appraisals shold $e avoided
(. .$%ectively verifia$le data shold $e sed
6. 3onstraints on performance $eyond control shold $e prevented
<. Specific %o$ related dimensions to $e sed rather than single or
glo$al dimensions.
=. Dimensions mst $e assigned weight to reflect relative importance
in performance score
)thics of Docmentation of Reslts
1. * thoroghly written record of evidence leading to termination
shold $e maintained
2. Aritten docmentation of e7treme ratings shold $e maintained
(. Docmentation shold $e consistent among the raters.
)thics of Raters
1. &he raters shold $e trained in how to se an appraisal system
2. &he rater mst have opportnity to o$serve ratees first hand and
review important ratee performance prodcts.
(. Dse of more than one rater is desira$le to redce $iases.
.rganizational Spport /actors for 4erformance *ppraisal Systems
4erformance appraisal serves many organizational o$%ectives and
goals. 8esides encoraging high level of performance! the evalation
system is sefl in identifying employees with potential! rewarding
them e"ita$ly! and determining employee needs for development. *ll
these activities are instrmental in achieving corporate plans and
long1term growth! typical appraisal system in most organizations have
$een focsed on short1term goals only.
/rom the strategic management point of views! organizations can $e
groped nder ( different categories as defenders! prospectors and
Defenders0 &hey have narrow and sta$le prodct mar#et domain.
&hey don2t need to ma#e any ad%stment in technology! strctre or
methods of operations etc. &hey devote entire attention on improving
e7isting operations. 8ecase of emphasis on s#ill $ilding sccessfl
defenders se appraisals as means for identifying training needs. ,t is
more $ehavior oriented.
4rospectors0 &hey continosly search for new prodcts and
opportnities. &hey e7periment reglarly to new and emerging trends.
&hey more focs on s#ills identification and ac"isition of hman
resorces from e7ternal sorces prospectors often se appraisals for
identifying staffing needs. &he focs is on reslts.
*nalyzers0 &hey operate in two type of prodct domain mar#ets. .ne
is sta$le and other is changing. &hey watch their competitors closely
and rapidly adopt the ideas that are promising. &hey se cost effective
technologies for sta$le prodcts and matri7 technologies for new
prodcts. *nalyzers tend to emphasize on s#ills $ilding and s#ills
ac"isitions and employ e7tensive training programs. Hence they se
appraisal more for training and staffing prposes.
However performance appraisal systems has strategic importance in
three different ways.
/eed$ac# Mechanism0 4erformance evalation is the central
mechanism that not only provides feed$ac# to individals $t also aids
in the assessment of the progress of organization as a whole. Aithot
appraisals managers of any firm can only gess as to whether or not
employees are wor#ing towards realization of the organization goals.
3onsistency $etween strategy and %o$ $ehavior0 4erformance
appraisal not only is a means of #nowing if the employee $ehavior is
consistent with the overall strategies focs $t also a way of $ringing
to the fore any negative conse"ence of the strategy $ehavior fit.
&hs the performance appraisal system is an important mechanism to
elicit feed$ac# on the consistency of the strategy $ehavior lin#.
3onsistency $etween Gales and ;o$ 8ehavior lin#0 4erformance
evalation is a mechanism to reinforce vales and cltre of the
organization. *nother importance is to align appraisal with
organizational cltre.
&hs the prpose of performance evalation is to ma#e sre that
employee2s goals! employees $ehavior and feed$ac# of information
a$ot performance are all lin#ed to the corporate strategy.
)ssentials of a -ood 4erformance *ppraisal System0
1. Standardized 4erformance *ppraisal System
2. Dniformity of appraisals
(. Defined performance standards
6. &rained Raters
<. Dse of relevant rating tools or methods
=. Shold $e $ased on %o$ analysis
9. Dse of o$%ectively verifia$le data
>. *void rating pro$lems li#e halo effect! central tendency! leniency!
severity etc.
?. 3onsistent Docmentations maintained
1@. +o room for discrimination $ased on cast! creed! race! religion!
region etc.
4ro$lems of Rating0
1. :eniency 5 Severity
2. 3entral &endency
(. Halo )rror
6. Rater )ffect
<. 4rimacy 5 Recency )ffect
=. 4erceptal Sets
9. 4erformance Dimensions .rder
>. Spillover )ffects
?. Stats )ffect
,ncentives are monetary $enefits paid to wor#men in recognition of
their otstanding performance. &hey are defined as varia$le rewards
granted according to variations in the achievement of specific reslts.
*dvantages of ,ncentive $ased compensations
1. ,ncentives are important for indcement and motivation of
wor#ers for higher efficiency and greater otpt.
2. )mployee earnings go p
(. )nhanced standard of livings of employees
6. Redction in total nit cost of prodction!
<. 4rodctivity increases.
=. 4rodction capacity is also li#ely to increase
9. Redced spervision
Disadvantages of ,ncentive $ased compensation
1. &endency of "ality of prodcts deteriorated de to increased
otpt and low cost
2. )mployees may oppose introdction of new machines
(. Aor#ers demand for minimm wage limit may go p de to high
incentive earnings
6. Sometimes employees may disregard secrity reglations de to
payment $y reslts approach adopted for higher incentive figres
<. .verwor#ing may affect employee health
=. )mployee %ealosies with respect to high and low performers
+atre of HR *dit
HR *dit is a tool for evalating the personnel activities of an
organization. &he adit may inclde one division or entire company. ,t
gives feed$ac# a$ot HR fnctions to operating managers and HR
specialists. ,t also shows how well managers are meeting HR dties.
,n short HR adit is an overall control chec# on HR activities in a
division or a company and evalation of how these activities spport
organization2s strategy.
8asis of HR *dit
B4ersonnel ResearchC
1. Aage Srveys
2. Recritment Sorces effectiveness
(. &raining efforts effectiveness
6. Spervisor2s effectiveness
<. ,ndstrial settlements
=. ;o$ *nalysis
9. ;o$ Satisfaction Srvey
>. )mployee needs srvey
?. *ttitde Srveys
1@. High accident fre"ency srveys
8enefits of HR *dit
1. ,dentification of contri$tions of HR department
2. ,mprovement of professional image of HR department
(. )ncoragement of greater responsi$ility and professionalism among
HR mem$ers
6. 3larification of HR dties and responsi$ilities
<. Stimlation of niformity of HR policies and practices
=. /inding critical personnel pro$lems
9. )nsring timely compliance with legal re"irements
>. Redction of HR costs throgh more effective personnel procedres
?. 3reation of increased acceptance of changes in HR department
1@. * thorogh review of HR information systems
Scope and &ypes of HR *dit
HR *dit mst cover the activities of the department and e7tend
$eyond $ecase the people pro$lems are not confined to HR
department alone. 8ased on this HR adit can $e spread across
following for different categories.
Hman Resorce /nction *dit
Managerial 3ompliance *dit
Hman Resorce 3limate *dit
)mployee &rnover
*ttitde Srveys
HR 1 3orporate Strategy *dit
*pproaches to HR *dit
1. 3omparative *pproach B8enchmar#ing with another companyC
2. .tside *thority *pproach B.tside consltants2 standardsC
(. Statistical *pproach BStatistical measres and toolsC
6. 3ompliance *pproach B:egal and company policiesC
>' Management )y O#&ecti%es Approach ?Goals < O#&ecti%es #ased@
4erformance is a fnction of a$ility and motivation. 4 O f B* 7 MC
Definition 10 #hoices among voluntary activities
* process governing choices made $y persons or lower organisms
among alternative forms of volntary activity
Definition 20 Arouse enthusiasm to pursue
* reslt of internal and e7ternal processes to the individal that
arose enthsiasm and persistence to prse a certain corse of
Definition (0 Need that activates behavior
* process that starts with a physiological deficiency or need that
activates $ehavior or a drive that is aimed at a goal or an incentive.
Meaning of Motivation
Motivation is a set of forces that case people to $ehave in certain
Motivation 4rocess B= StepsC
1. ,ndividal +eeds
2. Search for ways to satisfy needs
(. -oal 5 .$%ectives directed
6. ,ncreased performance
<. Receiving rewards or pnishment
=. Reassessment of needs
3riticality of Motivation to Managers
,mportance of Motivation
Motivation helps employees find new ways of doing a %o$
Motivation ma#es employees "ality conscios
Motivation increases prodctivity very high
Motivation stimlates $oth participation and prodction at wor#
Motivation comprehends %o$s related $ehaviors
Motivation increases attention towards hman resorces along with
physical resorces
3hallenges of Motivation
Diverse and changing wor#force
Rightsizing! Downsizing! Hire1n1/ire! 4ay1for14erformance
Motives can only $e inferred! not seen
Dynamic natre of hman needs
.$%ectives of Motivation
High prodctivity
,ncrease "ality consciosness
Stimlate participation at wor#
&heories of Motivation
)arly &heories
Scientific Management0 Motivation $y scientific management is
associated with /.A. &aylor2s techni"es of scientific management.
&aylor said that people are primarily motivated $y economic rewards
and will ta#e direction if offered an opportnity to improve their
economic positions. 8ased on this &aylor descri$ed following
4hysical wor# cold $e scientifically stdied to determine optimal
method of performance of a %o$
Aor#ers cold $e more efficient $y telling them how they were to
do a %o$
Aor#ers wold accept the a$ove prescription if paid on
differentiated piecewor# $asis
Disadvantages Dehmanized wor#ers! treated them as mere
factors of prodction! only stressed on monetary needs! ignored
hman needs
Hman Relations Model0 )lton Mayo2s hman relations model stressed
on social contacts as motivational factor. -reater importance was
given to informal grops. However too mch reliance on social
contacts to improve prodctivity was a ma%or draw$ac#.
3ontemporary &heories
3ontent &heories BMaslow2s +eed Hierarchy! Herz$erg2s 21factors!
*lderfer2s )R-! *chievement Motivation &heoryC
4rocess &heories BGroom2s e7pectancy! *dam2s )"ity! 4orter2s
4erformance and Satisfaction ModelC
Reinforcement categories
)R- &heory B*lderferC0 )7istence Relatedness -rowth
)R- theory emphasizes more on three $road needs that is e7istence!
relatedness and growth. ,ts hypothesis is that there may $e more than
one need operating at the same time. )R- theory frther states that
when a higher level need is frstrating! the individal2s desire to
increase lower level needs ta#es place. &hs )R- theory contains
frstration1regression dimension. /rstration at higher level need may
lead to regression at lower level need.
*dvantages More consistent with or #nowledge of differences
among people! it is less restrictive and limiting! it is a valid version of
need hierarchy.
Disadvantages +o clear1ct gideline of individal $ehavior patterns!
too early to pass a %dgment on the overall validity of the theory.
&wo1/actor &heory BHerz$ergC
/redric# Herz$erg states that the motivation concept is generally
driven $y two factors of motivators of %o$ satisfactions and hygiene
factors a$ot %o$ dissatisfaction. Motivators are generally
achievement! recognition! the wor# itself! responsi$ility! advancement
and growth! which are related to %o$ satisfaction. Hygiene factors deal
with e7ternal factors li#e company policy! spervision! administration
and wor#ing conditions! salary! stats! secrity and interpersonal
relations. &hese factors are #nown as hygiene factors or %o$
dissatisfiers! %o$ conte7t factors.
*dvantages tremendos impact on stimlating thoght on
motivation at wor#! increased nderstanding of role of motivation!
specific attention to improve motivational levels! %o$ design techni"e
of %o$ enrichment is contri$tion of herz$erg! do$le dimensions of
two factors are easy to interpret and nderstand.
Disadvantages :imited $y its methodology! relia$ility "estioned! it
focses more on %o$ satisfaction not on motivation! no overall
measre of satisfaction tilized! inconsistent with previos research!
prodctivity factor ignored.
Definition 10 ,ental condition, attitude, willingness
Morale is a mental condition or attitde of individal and grops!
which determines their willingness to co1operate.
Definition 20 Attitudes, voluntary cooperation
Morale is attitdes of individals and grops towards their wor#
environment and towards volntary cooperation to the fll e7tent of
their a$ility in the $est possi$le interest of the organization.
Distinction $etween Morale and Motivation0 1
Morale Motivation
1. 3omposite of feelings!
attitdes and sentiments that
contri$te towards general
satisfaction at wor#place.
2. * /nction of freedom or
restraint towards some goal.
(. ,t mo$ilizes sentiments.
6. Morale reflects Motivation.
1. Motivation moves person to
2. * 4rocess of stimlating
individals into action to
accomplish desired goals.
(. * /nction of drives and
6. ,t mo$ilizes energy.
<. Motivation is a potential to
develop morale.
,mportance of Morale as a Responsi$ility of Management
.rganization 3limate0 Morale is an important part of organization
*ttitdes 5 Sentiments0 Morale reflects attitdes and sentiments
towards organization goals and o$%ectives.
4rodctivity0 Morale highly affects prodctivity and satisfaction of
&otal Satisfaction0 Morale is total satisfaction derived from
employees %o$! $oss and his organization.
:a$or 4ro$lems Solved0 High morale assists managers to overcome
several la$or pro$lems li#e la$or trnover! a$senteeism! indiscipline!
grievances! disharmony etc.
3ooperation0 Morale helps to see# cooperation from the wor#ers in
getting higher prodction at minimm possi$le cost $y redcing
wastages of time! man! machines and materials.
4rodction 5 4rodctivity0 4rodction and prodctivity are directly
affected $y high morale in a positive manner.
Meaning of 4ersonnel 4olicy
* 4olicy is a 4lan of *ction. ,t is a statement of intentions committing
the management to a general corse of action. * 4olicy may contain
philosophy and principles as well. However a policy statement is more
specific and commits the management to a definite corse of action.
Hence 4ersonnel policy is a plan of action to $e implemented $y HR
department towards the organization and employees. * personnel
policy spells ot $asic needs of the employees. &hrogh personnel
policy the personnel department ensre a consistent treatment to all
personnel $y minimizing favoritism and discrimination. 4ersonnel
policy serves as a standard of performance for all employees. Sond
personnel policies help $ild employee motivation and loyalty. *nd this
happens when personnel policies reflect fair play and %stice and help
people grow within the organization. 4ersonnel policies are also plans
of action to resolve intra1personal! inter1personal and inter1grop
,mportance of 4ersonnel 4olicy
4ersonnel policy is very important for an organization since it gives
several $enefits for managing yor hman resorces effectively. ,n the
light of these $enefits listed $elow we wold $e a$le to nderstand the
relative importance of 4ersonnel policy.
8asic +eeds0 4ersonnel policy helps the management to thin#
deeply a$ot $asic needs of organization and the employees.
3onsistent &reatment0 4ersonnel policies ensre consistent
treatment of all personnel throghot the organization.
Minimize /avoritism0 4ersonnel policies help minimize favoritism
and discrimination
3ontinos action0 4ersonnel policies ensre continos action
even if top management is changed. &hese policies promote sta$ility.
Standard of 4erformance0 4ersonnel policies serve as a standard of
Motivation 5 :oyalty0 4ersonnel policies help $ild employee
motivation and loyalty.
/air 4lay 5 ;stice0 4ersonnel policies reflect esta$lished principles
of fair play and %stice.
-rowth0 4ersonnel policies help people grow within the
8roadly! wor#er2s participation in management means associating
representatives of wor#ers at every stage of decision1ma#ing.
4articipative management is considered as a process $y which the
wor#er2s share in decision1ma#ing e7tends $eyond the decisions that
are implicit in the specific content of the %o$s they do. &his amonts to
the wor#ers having a share in the reaching of final managerial
decisions in an enterprise.
Definition 10 Association of 5or-ers in decision)ma-ing process
Aor#ers2 participation may $e ta#en to cover all terms of association
of wor#ers and their representatives with the decision1ma#ing process!
ranging from e7change of information! consltations! decisions and
negotiations to more instittionalized forms sch as the presence of
the wor#ers2 mem$ers on management or spervisory $oards or even
management $y wor#ers themselves.
Scope of wor#ers2 participation
Scope of wor#ers participation ranges over three managerial decision1
ma#ing stages.
Social Decisions0 Hors of wor#! welfare measres! wor# rles! safety!
health! sanitation and noise control.
4ersonnel Decisions0 Recritment and selection! promotions and
transfers! grievance settlements! wor# distri$tion
)conomic Decisions0 Methods of manfactring! atomation! lay offs!
sht1downs! mergers and ac"isitions and other financial aspects.
Methods of Aor#ers2 4articipation in Management
1. 8oard :evel
2. .wnership
(. 3omplete 3ontrol
6. Staff 3oncils
<. ;oint 3oncils
=. 3ollective 8argaining
9. ;o$ )nlargement and )nrichment
>. Sggestion Schemes
?. Kality 3ircles
1@. )mpowered &eams
11. &otal Kality Management
12. /inancial 4articipation
4rere"isites of Sccessfl 4articipation
1. 3learly defined and complementary .$%ectives
2. /ree flow of information and commnication
(. Representatives of wor#ers from wor#ers themselves
6. .tside trade nion participation shold $e avoided
<. Aor#ers2 edcation and training
=. +o threat $y participation
9. *ssociation at all levels of decision1ma#ing
8enefits of 4articipation
1. -ives identity to an employee
2. Motivates employee
(. Self1esteem! %o$ satisfaction and cooperation improves
6. Redced conflicts and stress
<. More commitment to goals
=. :ess resistance to change
9. :ess la$or pro$lems
>. 8etter "ality sggestions e7pected
)mployee associations are poplarly #nown as nions. However these
nions are not confined to only stri#es and negotiations. &heir role is
mch wider than this. Dnions ma#e their presence felt in recritment
and selection! promotions! training! termination or lay off. Many
programs! which contri$te to the Kality of Aor# :ife BKA:C and
prodctivity! are nderta#en $y management in consltation with and
with the cooperation of the nions. Dnions also participate in deciding
wage and salary strctre and negotiate revisions once in ( or <
&rade nions are volntary organizations of wor#ers or employers
formed to promote their interests throgh collective action. &rade
nions *ct 1?2= defines a trade nion as a com$ination! whether
temporary or permanent formed primarily for the prpose of
reglating the relation $etween
1C Aor#men and )mployers
2C Aor#men and Aor#men
(C )mployers and )mployers
/or imposing restrictive conditions on the condct of any trade or
$siness and incldes any federation of two or more trade nions
Ahy do employees %oin &rade DnionsF
&o protect themselves against e7ploitation $y management
8y force
:ac# of 4ower
Dnion ,nstrmentality
R.:) ./ 3.+S&RD3&,G) *+D 4.S,&,G) D+,.+
Dnions have a crcial role to play in ,ndstrial Relations. Dnions have
following $road role or o$%ectives as mentioned $elow.
&o redress the $argaining advantage of the individal wor#er vis1
R1vis the individal employer! $y s$stitting %oint or collective
action for individal action.
&o secre improved terms and conditions of employment for its
mem$ers and the ma7imm degree of secrity to en%oy these
terms and conditions.
&o o$tain improved stats for the wor#er in his wor# or her wor#
&o increase the e7tent to which nions can e7ercise democratic
control over decisions! which affect their interests $y power
sharing at the national! corporate and plant levels.
&he nion power is e7erted primarily at two levels. ,ndstry level to
esta$lish %oint reglation on $asic wages and hors with an employer2s
association. 4lant level! where the shop stewards organizations
e7ercise %oint control over some aspects of the organization of wor#
and localized terms and conditions of employment.
Dnions are party to national! local and plant level agreements! which
govern their actions to a greater or lesser e7tent! depending on their
power and on local circmstances.
D+/*,R :*8.R 4R*3&,3)S
,ndstrial Disptes *ct 1?69 specifies the following as nfair la$or
&o interfere! restrain! coerce wor#men in the e7ercise of their
right to organize! form! %oin or assist a trade nion.
&hreatening wor#men with discharge or dismissal
&hreatening of loc#ot or closre
-ranting wage increases to ndermine trade nion efforts
&o dominate! interfere with or spport financially or socially $y
ta#ing active interest in forming own trade nion! and
Showing partiality or granting favor to one of several trade
nions to a non1recognized trade nion
&o esta$lish employer sponsored trade nions
&o encorage or discorage mem$erships in any trade nion $y
discriminating wor#man $y pnishing or discharging! changing
seniority ratings! refse promotions! giving nmerited
promotions! discharging nion office $earers
&o discharge or dismiss wor#men $y victimizing! not in good
faith! implicating in criminal case! for patently false reasons
&o a$olish wor# of a reglar natre
&o transfer wor#men
&o show favoritism or partiality
&o replace wor#ers
&o recrit wor#men dring legal stri#es
&o indlge in acts of violence or force
&o refse collective $argaining
0roposing and contin"ing loc5o"ts
Downsizing necessarily means redcing wor# force to an optimal level
depending pon the $siness conditions and organizational needs. ,t is
said that an organization shold $e rightly staffed ie. ,t shold not $e
overstaffed and or nderstaffed. &here are $roadly following method
sed to downsize the wor#force as mentioned $elow.
,t means termination of service. ,t is a termination for reasons other
than disciplinary actions! retirement or sperannating! e7piry and
termination of contract or prolonged illness. Retrenchment
compensation and notice for retrenchment are only pre1conditions for
retrenchment and not a right! which a retrenched wor#er can claim. ,f
notice and compensation are not given! the wor#er will not $e called
as retrenched. 3ompensation is paya$le for 1< days wages for every
completed year of service $esides one month2s notice or pay in lie of
notice. 8t employee shold have completed at least one year of
complete service in order to receive compensation.
:ay .ffs
:ay of is ina$ility of the employer to provide employment to wor#ers
de to circmstances $eyond his control sch as shortage of power!
coal! $rea#down of machinery! natral calamity etc. ,t is not a
termination of service. :ay off compensation can $e claimed as a
stattory right $y the wor#er if he has completed one year of
continos service or has wor#ed for 26@ days on the srface or 1?@
days ndergrond in 12 calendar months. 3ompensation paya$le is
half of the wages.
Golntary Retirement Schemes
GRS are annonced when there is a hge pool of old aged manpower
occpying senior positions amonting to srpls. Many organizations
are providing li$eral incentives to leave $efore age of sperannating.
GRS in other words is a retirement $efore the age of retirement.
MEAN+NG O4 ORGAN+<AT+ON STRUCTUREOr#ani)ational str'ct're is t"e %ormal
&ecision,ma3in# %rame2or3 b! 2"ic" job tas3s are &ivi&e&$ #ro'e&$ an&
coor&inate&* 4ormali)ation is an imortant asect o% str'ct're* +t is t"e e0tent to
2"ic" t"e 'nits o% t"e or#ani)ation are e0licitl! &e%ine& an& its olicies$ roce&'res$
an& #oals are clearl! state&* +t is t"e o%%icial or#ani)ational str'ct're conceive& an&
b'ilt b! to mana#ement* T"e %ormal or#ani)ation can be seen an& reresente& in
c"art %orm* An or#ani)ation c"art &isla!s t"e or#ani)ational str'ct're an& s"o2s job
titles$ lines o% a't"orit!$ an& relations"is bet2een &eartments*
.rganisation 3harts0
&he organization charts are the sample and an nderstanda$le way
showing the formal organization strctre1,t gives a clear overview of
the shape and strctre of an organization.
,t is an order and the design of an organization captred in a visal
,t is a $le print or a $asis for proper conceptalization! frther
thin#ing! a discssion $oard for frther modifications withot affecting
the actal changes.
&he organization chart well drawn! can give an insight in to the
organization! its hierarchical strctre line and staff athority!
athority and responsi$ility levels! chain of command! line of
delegated athority! decentralization or otherwise in an organization!
span of control etc.
,t also helps and gides the management in evolving changes with the
changes in the environment and for faster realization of goals.
+t is a #oo& #'i&e %or t"e ne2 recr'its in t"eir initiation in t"e or#ani)ation an& in
'n&erstan&in# t"e a't"orit! resonsibilit! levels incl'&in# "is o2n*
/ormal .rganisation
T"e intentional str'ct're o% roles in a %ormall! or#anise& enterrise is a %ormal
+t sho"ld ha%e an attri#"te of Ae8i#ility3 room for discretion and the
recognition of indi%id"al talents and the capacities' +n a gro"p
f"nctioning the indi%id"al e4ort 9ill ha%e to #e chaneli$e thro"gh the
gro"p leader and has to #e for the organi$ation7s good'
+nformal Str"ct"re
The informal organi$ation is the net9or53 "nrelated to the :rmBs formal
a"thority str"ct"re3 of social interactions among its employees' +t is
the personal and social relationships that arise spontaneo"sly as
people associate 9ith one another in the 9or5 en%ironment' The
s"per%isor m"st reali$e that the informal organi$ation a4ects the
formal organi$ation' The informal organi$ation can press"re gro"p
mem#ers to conform to the e8pectations of the informal gro"p that
conAict 9ith those of the formal organi$ation' This can res"lt in the
generation of false information or r"mors and resistance to change
desired #y management' The s"per%isor sho"ld recogni$e the
e8istence of information gro"ps3 identify the roles mem#er play 9ithin
these gro"ps3 and "se 5no9ledge of the gro"ps to 9or5 e4ecti%ely
9ith them' The informal organi$ation can ma5e the formal organi$ation
more e4ecti%e #y pro%iding s"pport to management3 sta#ility to the
en%ironment3 and "sef"l comm"nication channels' Matri7 Strctre,n
a matri7 organization! teams are formed and team mem$ers report to
two or more managers. Matri7 strctres tilize fnctional and
divisional chains of command simltaneosly in the same part of the
organization! commonly for one1of1a1#ind pro%ects. ,t is sed to
develop a new prodct! to ensre the contining sccess of a prodct
to which several departments directly contri$te! and to solve a
difficlt pro$lem. 8y sperimposing a pro%ect strctre pon the
fnctional strctre! a matri7 organization is formed that allows the
organization to ta#e advantage of new opportnities. &his strctre
assigns specialists from different fnctional departments to wor# on
one or more pro%ects $eing led $y pro%ect managers. &he matri7
concept facilitates wor#ing on concrrent pro%ects $y creating a dal
chain of command! the pro%ect Bprogram! systems! or prodctC
manager and the fnctional manager. 4ro%ect managers have athority
over activities geared toward achieving organizational goals while
fnctional managers have athority over promotion decisions and
performance reviews. *n e7ample is an aerospace firm with a contract
from +*S*.
;i%isional Str"ct"re
+n a di%isional organi$ation3 corporate di%isions operate as relati%ely
a"tonomo"s #"sinesses "nder the larger corporate "m#rella' +n a
conglomerate organi$ation3 di%isions may #e "nrelated' ;i%isional
str"ct"res are made "p of self/contained strategic #"siness "nits that
each prod"ces a single prod"ct' -or e8ample3 -eneral MotorsB di%isions
incl"de 3hevrolet3 .ldsmo$ile3 4ontiac3 and 3adillac' A central
head!"arters3 foc"sing or res"lts3 coordinates and controls the
acti%ities3 and pro%ides s"pport ser%ices #et9een di%isions' -"nctional
departments accomplish di%ision goals' A 9ea5ness ho9e%er3 is the
tendency to d"plicate acti%ities among di%isions' .rganic Strctre.n
the other hand! the organic strctre is more fle7i$le! more adapta$le
to a participative form of management! and less concerned with a
clearly defined strctre. &he organic organization is open to the
environment in order to capitalize pon new opportnities. .rganic
organizations have a flat strctre with only one or two levels of
management. /lat organizations emphasize a decentralized approach
to management that encorage high employee involvement in
decisions. &he prpose of this strctre is to create independent small
$sinesses or enterprises that can rapidly respond to cstomersH
needs or changes in the $siness environment. &he spervisor tends
to have a more personal relationship with his or her employees.
/nctional Strctre/nctions or divisions arrange traditional
organizations. ,n a fnctional organization! athority is determined $y
the relationships $etween grop fnctions and activities. /nctional
strctres grop similar or related occpational specialties or
processes together nder the familiar headings of finance!
manfactring! mar#eting! acconts receiva$le! research! srgery! and
photo finishing. )conomy is achieved throgh specialization. However!
the organization ris#s losing sight of its overall interests as different
departments prse their own goals.