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Meaning: - Resource means an asset or wealth which can be utilised as

and when required. Every organisation consists of 5 ms. They are man,
money, machine, material and market. Out of these five m s men is one
of the crucial elements for the organisation. These men can be considered
as human resource for the organisation. Human Resources are the wealth
of a country to whom it can rely upon at any time. With the growth and
development of science and technology, with the introduction of
liberalisation and globalisation in India Human Resource are considered to
be an important aspect for the Organisation as well as for the country.
Industrial Revolution has brought a sea change in the industrial climate of
the country. More and more industries were set up and
production increases in due course of time. It is only possible with the
skill, knowledge, attitude , abilitycompetence, efficiency, creativity of
human beings . So Human Resource management not only for the growth
and development of the organisation but for the entire nation. Hence
human resource is considered as an asset for the organisation and for the
DEFINITION: - Human Resource management is the planning, organising,
directing, controlling, and separation of Human Resource to the end that
individual, organisation and social objectives can be accomplished. By
1. It is the activityof planning, Organising, Directing and controlling of
Human Resources.
2. It is conceded with procurement, Development, compensation and
separation of Human
3. Meant for individual and organisational objective.
4. Social objectives can be accomplished.
0BJECTIVESThe primary objective of HRM is ensure the right people for
right job so that the objectives of the organisation can be effectively
achieved. Accordingly the objectives of HRM have been classified into
following categories:



1. Training Development 1. HR Planning

1. Legal
2. Placement
2. Selection
2. Benefits
3. Compensation
3. Inter personal Relation
3. Union
management relation
4. Performance Appraisal 4. Assessment
5. Follow-up-action

1. Human Resource Planning.
2. Job Analysis
3. Acquisition of HR.
4. Training &Development.
5. Performance Evaluation and Review.
6. Compensation and other benefits.
7. Safety and Health provisions.
8. Organisation Development.



Determination of long term short term objectives

Preparation of action plan
Formulation of policy &procedures


Identification of activities.
Grouping of activities.
Assignment of authority &responsibility.
D) Establish relationship.




Measurement of performance.
Find out deviation.
Take corrective action.


1) Job analysis, 2) HRP, 3) Selection, 4) placement, 5)

promotion, 6) Transfer, 7) Punishment.
1) Training, 2) Performance Appraisal, 3) Carrer plan.
1) Job Evaluation, 2) wage & salary administration, 3) Bonus
and incentives.
1) Motivation, 2) Grievance redress, 3) Collective Bargaining,
4) Conflict management, 5) Discipline.
1) Health, 2) Socialseafty, 3) Welfare schemes, 4) Personnel
Records, 5) Personnel Research

Personal qualities are those qualities which help the HR manager to
understand human behaviour some personal qualities must be there
which can help the HR manager to fulfil the desire and aspiration of the
employees as well as the employer.
A) INTELLIGENCE: - Mental ability to deal the people. A HR manager
should be an intelligence person while communicating with other
inside and outside of the organisation.
B) EDUCATIONAL: - Refers to learning and teaching skill. A HR manager
should have the quality of learning as well as teaching in the
organisation .Its should learn form the employees skill desire ,
development and teach the employees about the organisational
growth , need and expectation of the employer from the employee .
C) DISCRIMINATING: - A HR manager should have the qualities of
discrimination. Its can well distinguish between good and bad, right
and wrong, just and unjust, merit and de merit.
D) EXECUTING: - HR manager should have the quality of exerting the
decision of the management. its have to streamline all the HR
related work with in the organisation with utmost sincerity accuracy

and objectivity. its should have the quality of co-ordination, control

and guidance which leads to standard of performance.

Professional qualities are more important and necessary for a

successfulHR manager. This quality refers to those which are required by
the organisation. A HR manager should be more professional in
character .some of the professional qualities are:A) ABILITY TO LISTEN: - This quality helps the HR manager to be
appreciated by other employees. A HR manager should listen
patience to the grievances of other employees before arriving a
B) HUMAN PSYCHLOGY: - HR manager should well-versed with
human psychology. he should understand other mentality, ability
and integrity.
C) TECHNICAL &MANAGERIAL: - A HR manager should be technically
soured person and a person and a professional manager. He
should have the capacity to manage technically and efficiently
with in limitation.
D) SOCIAL JUSTICE: - A HR manager showed act with degree of
common sance he should have interest tuckered people in order
to prefect social justice. he should be well versed in law and
judicious in decision making process.
The qualities and skill of a HR manager differ from organisation
toorganisation. The qualities remain differ from time to time depending on
the requirements of the organisation. But in general it should be take into
grant that the qualities of a HR manager must be different from the
qualities of other managers like marketing, production, sag stem and
finance manager.


All the operational functions of HRM system can be regarded as the duties
and responsibilities for total implementation of HR system and
performance of each employee in each level. Of the duties and
responsibilities are as follows.

A) JOB ANAIYSIS: - This duty includes determines the nature of job and
type of job in each department in order to achieve the objective.
B) RECRUITMENT: - Find out suitable employees for the organisation so
that there will be no overstaff or under-staff problem. The number of
employees should be appropriate so that the day to day work of the
organisation will not hamper.
C) PLACEMENT: - Right person should be in right job witch leads to job
specialisation. only qualified, experienced and expert employees
can found place in the organisation.
D) TRAINING AND DEVELOPMENT: - After placement training is
necessary to each and every employee. Training is required to make
an employee perfect. A perfect employee can develop the
E) PERFORMANCE APPRAISAL: - Evaluation of the employee during a
particular time period. The process of performance appraisal
enables the HR manager to distinguish between good employee and
bad employee.
F) COMPENSATION: - The salary and other financial benefits applicable
to the major duty and responsibility of HR manager.
G) PROMOTION: - This is the responsibility of HR manager in the
organisation. This process ensures that the most efficient
employees. Will be promoted. Then process will assign more
authority and responsibility to the employee.
H) TRANSFER: - Deployment of workers inside the organisation and
outside of the organisation .Transfer is made for effective control of
the organisation and it is a duty of the HR manager.
I) DEMOTION: - This is one form of punishment for in efficient
employee. The HR manager will demote to those employee who are
proved to be in-efficient in performance appraisal process.
J) GRIEVANCE REDRESSAL: - This is one of the important duty of a HR
manager. It is his responsibility to see and act favourably for the
employee grievance. He should consider different grievances of
different employee and take a judicious action.
K) CONFLICT MANAGEMENT: - Conflict management is an important
duty and responsibility of a HR manager .The misunderstanding in
work place leads a situation of conflict among the workers. The
reasons of conflict and their solution is one of the primary duty of
HR manager.
L) EMPLOYEE DISCIPLINE: - Maintenance of discipline inside the
organisation is one of the primary duty of HR manager. It is his
responsibility to award reward and punishment for discipline and
indiscipline workers of the organisation.
The duty and responsibilities of a HR manager differ from organisation to
organisation. According to the need of the organisation these duties and
responsibilities changes from time to time.


MEANINGIt is a process by which an organisation determines how it
should acquire its desired manpower to achieve the organisation goal. It
helps an organisation have the right number and kind of people at the
right place and right times to successfully achieve its overall objectives.
DEFINITION- HRP is a process of determining and assuming that the
organisation will have an adequate number of qualified persons available
at proper times, performing jobs which meet the needs of enterprise and
provide satisfaction for the individuals involved.
OBJECTIVES:1. To Recruit and retain required quality and quality of Human
2. To meet the needs of expansion and diversification of the
3. To adjust the impart of technological change and need of Human
4. To enhance the skill, ability, knowledge and standards of the
existing employee.
5. To adjust the surplus and shortage of employee and take
corrective measures.
6. To maintain favourable industrial Relate.
7. To maintain a balance between demand and supply of Human
Resources at appropriate period.
8. To reduce the labour turnover cost.
9. To make best use of Human Resources.
10. To ensure effective control over HR.
1. To meet the shortage of experienced and skilled employee of the
2. It works as a cost saving device.
3. Provides man power without interruption ,( situations like retire,
death , retrenchment )
4. Change in technology like production, marketing, privatisation
globalisation etc.
5. To deploy and Re-deploy the existing works.
6. To protect the employment policy of the govt. (For reservation of
SC & ST child labour etc)
7. To provide suitable working condition as a demand of workers
8. Provides swot analysis of the workers.
9. Face the other competitors in the market.
10. Helps for growth and development of the organisation.

HRP PROCESS:-Acquisition and utilisation of human resources is an

important decision of a manager. The process of human resources
planning helps in this regard and makes the task of amanager easy.The
process of HRP involves the following steps they are :1. Analysis of organisational plans & objectives org plan means
functional plan like different branches, sections, and sub sections. I .e
production. Finance, marketing, administrationetcetc. objective refers
to long term and short term objective.
2 .Analysis of HRP Objective: Emphasis to future requirement.
Specify the policy for HR selection.
Abolish routine or old job by replacing meaning full work to meet
changing environment.
Maximise return on investment on HP.
3. Forecast Human Resource Requirement: Expansion of the enterprise.
Merger or acquisition.
Retirement, death, resignation & retrenchment.
Improvement in productivity.
CAD- Computer aided design, CAM- Com aided manufacture.
4 .Assessment of supply of HR: - 1) Human Resource Audit, 2)
Complete information about quality and quality,3) Dept requirementof
manpower,4) provision to deploy existing manpower for extra-work &
overtime .
5. Matching the demand and supply of HR. This step involves. 1)
Demand for and supply of HR .2) Find out the shortage & Excess of HR.
3) In case of shortage it can recruit, promote etc .4) In case of excess
vrs, Re-deployment, etc.
6 .Follow up action: - This step involves: Review and monitor against the standard.
Corrective measures for deficiency.
Implementation of plan in right direction.
Corrective actions
need to be modified in the changed
If all these steps carried out properly the HRP will be effective and proves
to be productive for the organisation .other wise the HRP will be counter
productive for the organisations.

A) Internal factors: - 1) Company policy, 2) HR strategy, 3) Job analysis,

4) quality of information system, 5) marketing policy, 6) Trade
unions. CSAQMT
1) Government policy, 2) Level of Economic Development, 3)
Business environment, 4) Level of technology, 5) International sours,
6) Outsourcing. EGBTSO
1) Perceptions of top management: - It has been perceived by the top
management that people are available plentily in this labour surplus
country. so time and money should not spent for HRP.
2) Problem of demand and supply of HR: - It has been experienced that
accuracy of Resources which is a barrier for HRP.
3) Fluctuation in technology:-Technology changes rapidly. Accordingly
labour turnover, market fluctuations, and employment opportunity
change rapidly, These uncertainty cause a major problem for HRP as
it seems to be for from the reality.
4) Conflict of quantity and quality: - The HRP process suffers due to a
conflict in between the quality of manpower and the quantity of
manpower. Quantity inHRP means flow of employees in side the
organisation and quality refers to only few employee backed by
experience, skill, knowledge and morale.
5) Absence of reliable Data: - The entire HRP process dependent on an
accurate and reliable data maintained by the organisation forHuman
Resources. In case of a defective data and unreliable information it
is not possible to carryoutthe HRP in the Organisation.
Meaning: - After determination of human resources requirement for the
enterprise the process of recruitment is the first step in the process of
filling a vacancy. It is that process which enables the management of the
enterprise to select and employ required employees for varied types of
DEFINTION:-:1) Requirementis the process of searching the candidates for
employment and stimulating them to apply for jobs in the
organisation. By E.B.FLIPPO
2) Requirement is a positive process of searching potential
employees for the organisation and it continues till the suitable
employee is selected and ends with the placement.

Internal Sources
A. Present employees
B. Employee Referrals
C. Former Employee
Employment Agency
D. Previous Applicants

External Sources
A. Employment
B. Advertisements
D. Professional
E. Campus
F. Deputation
G. Word-of-mouth
H. Raiding

1. Interned sources mean recruitment process with and promotions In the

enterprise. It can be in the form of Transfer and promotions.
A) Transfer: - Refers to shifting an employee from one job to another
job without any change in position post, status and responsibilities,
The need for transfer is felt to provide employees a broader base
which is considered for promotions.
B) Promotion: - promotion implies shifting of an employee form his
present job to the higher position having higher status, pay and
C) Employee Referral: - This is one of the internal source where the
employees referred their own family and friend members as the
potential employee of the organisation .This is beneficial for the
organisation as the potential employee is known to the existing
D) Former Employee: - The vacancies can be filled with the former
employee. Some employees who has been retired and left the
organisation may be interested to serve again The advantage of this
source is the performance of the employee has already been
E) Previous Applicants:-This is a type of internal source of recruitment.
some of the applications of the potential candidates lying in the
organisation .This type of recruitment is applicable for un skilled and
semi-skilled employees.
2)External Source:- If the requirement is not fulfilled from the internal
source the organisation has to depend on some external source .These
sources are outside agencies who provide applicants for the requirement
of the enterprise .

A) Employment Exchange: - It maintain a record of job aspirants.

whenever the
employers inform about the vacancies to the employment
exchange, they provide the names considering the suitability.
B) Advertisement:-This is considered as a powerful tool for
recruitment. Newspaper, periodicals, magazines an there electronics
medias like TV internet where details regarding the job an
potentialities are informed.
C) Employment Agency: - Besides goat employment exchange some
private agencies provide informations about the potential
candidates to the enterprise as an when required .They charge a
nominal fees for the some and serve as a recruitment source
D) Professional Associations: - This is a source which is particularly
useful for professionals and technicians .Institute of Engineers,
management. Associations of India. Indian medical Associations
provide useful informations to the organisations as and when
required by them.
E) Campus Recruitment: - This is a source of recruitment and common
for all American organisations. Now it has been followed by almost
all private and public limited companies, where they used to go
different educational and training institutions for recruitment
F) Deputation: - This is a source of recruitment for govt and public
sector organisations. It refers to sending an employee to another
organisation for a short duration. It helps the organisation to get
ready expertise and the organisation does not incur initial
expenditure on training and development.
G) Word-ofMouth: - To attract the employees of the rival organisation
This is a source of recruitment in this source the employees are
offered very handsome and attractive remuneration.
H) RAIDING: - This is a source of recruitment for qualified an
experienced employees of competitors.

RECRUITMENT PROCESS: - A good recruitment process comprises the

following steps.
1) Recruitment Planning: - It is the 1st step in recruitment process. In
this step a comprehensive draft has been prepared for job
specifications .The draft contains A) Vacant position ,
B)Responsibility of the post , C) Qualification & Experience , D) Extra
skill and ability , E) Nature of the post F) Seale of pay .
2) Strategy Development: - In this step a suitable strategy has been
devised for recruitment .The following points to be considered for a
suitable strategy. A) What should be the source, B) Recruitment
method I eDirect indirect method, Third party method, C) What
geographical area to be considered.
3) Searching: - After strategy development the next step is
searching .This is a step which involves attracting job seekers to the
organisation. The sources to attract the job seekers are A) Internal
source B) External source refers to the source with in the
organisation an external source is the source available outside of
the org.
4) Screening:-This step begins with the completion of searching
.Screening is the beginning of selection. All the applicants both
shortlisted .By screening of the applicants it can be possible to
distinguish between deserved &undeserved. The technique used for
screening differs from organisation to organisation depending on its
5) Evaluation and Control: - This is the last step in recruitment
process .As recruitment involves some cost it is necessary to
evaluate the process .The evaluation and control can be effective
when the following answers will be positive in character.
1) Weather the recruitment method is appropriate?
2) Weather the recruitment will be effective for organisation?
If the answers will be negative than corrective action should be
taken so that it will be positive.
The following factors affect the recruitment process. They are:1) INTERNAL FACTOR
A) Companys pay package.
B) Quality of work life.
C) Organisational culture.
D) Carer planning.
E) Growth rate of the company.
F) Role of trade unions.

G) Goodwill of the company.

H) Cost of Recruitment.
A) Socio-economic condition.
B) Demandand supply condition.
C) Employment condition.
D) Labour Market condition.
E) Govt policy- Reservation rule SC/ST/OBC.
EFFECTIVE RECRUITMENT: - As there is no such formula the following so
for a suitable recruitment process the following points should be taken in
to consideration to have an effective recruitment.

well defined recruitment policy.

A good organisation structure.
Well defined procedure for locating potential job seekers.
A suitable method of evolution.
Timely modification of the process according to the requirement.

After selection of new employees in the organisation, the departmental
supervisors try to learn and show the way to the new employee how to
perform his allotted work most effectively needs a well planned training
programme .Training is necessary for improving the quality of work as well
as familiarize the workers with day to day changing work environment.
Training makes perfect to the employee who have been selected newly for
the organisation.
DEFINITION:1) Training is the organise procedure by which people acquire knowledge
and skill for a
definite purpose.
2) Training is the process of increasing the knowledge and skills to
Performa particular job.
CHARACTERISTICS: - By analysing the above two definitions we get the
following characteristics:A) ORGANISED PROCEDURE: - Training is an organised procedure
.Training is a set of rules and regulations and every Training
procedure is carried out with some stipulated and well defined
procedure .All the trainees in the Training process are governed by
an uniform procedure.

B) FOR THE PEOPLE:-Training is meant for the people of the

organisation. New employees need Training in order to
accommodate them in the organisations and the old employee need
Training in order to adjust them in the changing situations of the
C) ACQUIRE KNOWLEDGE AND SKILL: - Training is meant to get more
knowledge and to develop the skill in the workplace .A worker can
able to develop the skill and knowledge about his work by getting
training. The training process can facilitate the work and the worker
become a perfect worker by getting training.
D) DEFINITE PURPOSE: - Every training programme is meant to fulfil a
particular purpose. The worker gets benefit out of training and
through training it can able to achieve desired goal.Every
organisation wants to achieve the aims oftheorganisation through its
employee and the training system enables an employee to become
perfect which leads to attainment of objectives.
OBJECTIVES OF TRAINING: - Training helps both the organisationas well as
the employee of the organisation. The main objectives of training are:1) PREPARE EMPLOYEES FOR THE JOB: - Training enables the
employees to perform their work in the organisation. So the primary
objective of the training, workers can be prepared to perform their
duties and responsibilities. without training a worker cannot do his
work in the organisation and if perform in a defective way.
2) EMPLOYEES BECOME MORE PRODUCTIVE: - Training makes perfect
employees. An employee can become more productive and able to
perform the work in an efficient manner. All organisation wants to
have productive employee in order to fulfil the organisational
3) TO CREATE 2ND LINE MANAGERS: - Training makes man perfect.
Through Training the workers can become more competent and
efficient. By virtue of their competency in work the gap of managers
can be fulfilled. In this way the organisational can be able to fulfil
the 2nd line managers for the organisation. The absence or vacuum
of managers can not be felt.
4) MANAGERS BECOME MORE FLEXIBLE:-Training makes the senior
managers more flexible .The 2nd line managers became more
competent and truanted persons for the organisation by imparting
training. Hence the senior managers adopt a flexible approach
towards the juniors.
AREAS OF TRAINING: - Training is an important programme
organisation. Training can be provided in the following areas of the
1) POLICY AND PROCEDURE: - The rules and regulation of the
organisation is an important area where training is necessary.
The rules and regulation should be followed by each and every





employee. In this context the policy, objectives and procedures

should be imparted as a training aspect in the regulation.
SPECIFIC SKILL: - Training is necessary in some particular skill.
There are some workers who need a specific skill in order to
perform the duties and responsibilities .proper. Some technical
skill is necessary to run and handle up to date sophisticated
machines .misuse and mishandle will lead to damage and less to
the organisation.
HUMAN RELATION:- Inter personal relation is one of the important
area where training is one of the important area where training
is necessary .Human relation training leads to build team work in
the organisation for better co- operation and understanding in
work place this area needs training .
MANAGERIAL TRAINING: - Training is necessary in managerial
areas. Different managerial functions can be carried out with
planning, organisation, Directing and controlling. Hence training
is necessary in these areas to make managerial work smooth and
PROBLEM SOLVING: - Each and every organisation face some or
other problems tow to solve different problems and the
techniques of problem solving can be provided to the managers
through training. The process of training to different problem
solving areas can enable the organisation to achieve the goal.

Different training methods are followed by different organisation for their
new employee. some of the important and common methods of training
are as follows.
1. Rotation
2. Coaching
3. Job Instruction
4. Committee


1. Vestibule
2. Role
3. Lecturer
4. Conference

ON THE JOB TRAINING: - In this method the trainee is placed on a

regular job and taught the necessary skills how to perform it
efficiently. This training is based on the principle of learning by
doing .In this method the trainee loams under the guidance and
supervision of an instructor or a supervisor who is experienced and
competent in that line . on the job training can be:A) JOB ROTATION: - In this type of training an employee have to
rotate his job form one post to other and during that duration
lerns how to perform the duty. In each job he learns how to be
perfect and efficient in performing the work. So along with his
day to day work he takes training in workplace.
B) COACHING:-In this method the training is given to an employee
by a supervisor. Under one supervisor all the employees takes
training how to perform the work with more efficient. A coach

should be person who has considerable knowledge and expert

in that line.
C) JOB INSTRUCTION: - This is another method of training
imparted to the employees in the work place. The workers are
instructed to go step by step in each work so that work can be
perfect and complete in time. This type of training enables the
workers to become perfect workers.
D) COMMITTEE:-This is a training method where the work has been
assigned to a committee consisting of a group of workers. All
the workers are allowed to perform the work jointly .After
completion of the work it has been evocated and all the
workers shore the joint responsibility for the success and failure
of the work. This type of training helps the worker to learn how
to work jointly in the organisation and keep co- operation with
all the workers.
OFF THE JOB TRAINING: - This is a training method where the worker
have to take training only outside the work place. The worker will not
perform his day to day work in the organisation only take training in
different places. Off the job training consists the following methods:
A) VESTIBULE TRAINING: This is know as classroom training or
centre training. In this method training is imparted with the
help of equipments, machines, different training centres are
opened .This method of training is only confined with the
theatrical concept of work and the practice knowledge
imparted in production centres and labs.
B) ROLE PLAYING: Under this method the worker is supposed to
play different type of roles for the org .Different roles like
manager marketing, marketing officer, marketing supervisor,
marketing agent and sales man etc. In each role he wants to
convince the organisation that at any workplace the worker
can be best suitable one.
C) LECTURE: This is a common method of training. This type of
training is suitable for complex jobs .This type oftraining is
imparted by a lecture who is expert in that line of work and
have the ability to train a large number of employees.
D) CONFERENCE: - In this method a conference is organised
where the participants take active part and put forth their
experiences .As a result the problem in work place can be so
ned easily. The members of the conference so he many
problems and share the experience of other member.
In order to have a good training programme all the training procedures
should be carried out systematically .Training process refers to the steps
followed in the training system .The following are the steps of training :-

1) PREPARING THE INSTRUCTOR:- This is the primary step in training

.In this step the instructor who happens to the trainer should
prepare himself for the training work .Preparation of an instructor
depends on the following points :- A) Knowledge about job . B)
Aptitude and ability to teach. C) Knowledge of teaching methods
and principles. D) Capacity to lead the team of trainees.
2) PREPARING THE TRAINEE: - After the preparation of the trainee the
next step is the preparation of the trine. In this step the trainer
should know the trainer well .The mental condition; the environment
in which the trainee wants to take training should be favourable so
that the trainer as well as the trainee will be in a right direction.
3) READY TO TEACH: - After the trainee and trainer both ready to
impart training, the next step is to teach the trainees as per the
procedure. In this step the trainees as well as the trainer should
abide the following points.
A) Planning the training programme.
B) Prepare instructor outline.
C) Discuss each item in depth.
D) Evaluate periodical progress.
4) PRESENTING THE OPERATION: - This is the fourth step in training
process. In this step the trainer plays an important role and find out
the ways and means how to present the entire training process. In
this step the trainer have to look after the following points very
carefully in order to make training programme successful.
A) Explain the sequence of the entire job.
B) Do the job step by step.
C) Explain each job with each step.
D) Let the trainee explain the entire job.
5) FOLLOW UP ACTION: - This is the last step in the training
procedure. In this step the instructor have to provide feedback on
the training effectiveness. This is being the last step considers as
one of the important step of training. The trainer takes corrective
action whenever any discrepancy arises with the training
programme and training imported.
IMPORTANCE OF TRAINING:-Training is an important tool in the hands of
the management to make organisation more effective. Training has the
following importance
A) INCREASED PRODUCTIVITY: - Training makes worker more
competent and efficient. An efficient worker can perform his duties
and responsibilities in a productive way which leads and to increase
the productivity of the organisation. It helps to achieve the target of
the organisations.
B) HIGH EMPLOYEE MORALE: - The employee morale can be better if
training procedure applicable to each and every employee. Because
all the employee can be efficient and productive employee. In that
case the productivity can increase. Hence the employee will proud
for their organisation and increase confidence in them.

C) REDUCED SUPERVISION: - As all the workers become competent and

perfect due to training then less chance of supervision is need for
them. Because all the workersare efficient due to training and they
can perform their duties and responsibilities perfectly .No necessity
of guidance and supervision for their allotted work.
D) SELF DEVELOPMENT: - An employee can develop in his work place
by training. training enables an employee to become perfect and
efficient .An efficient employee can have confidence with him in the
E) ORGANISATION STABILITY: - The organisation can be a stable
organisation through training .Because all the workers are
competent and productive enable to achieve the organisational


MEANING: - After the training process completes the next work with the
management is appraise the performance of the employee performance
appraisal is the step where the management findsout how effective it has
been at hiring and placing employees .If any problem arises and
identified, steps can be taken to communicate with the employee
.performance appraisal enable the management to evaluate the efficiency
and competency of a worker for witch he she has been placed. It is done
periodically in the organisation and communicate to the employee
concerned if necessary.

DEFINITION: 1) It is the process of evaluating the performance and qualifications of the

employee in terms of the requirements of the job for which he is
employee. By heels.
2) Performance Appraisal is the systematic, periodic and an impartial
rating of an employees excellence in matters pertaining to his present job
and his potential for a better job By flipped.
CHARACTERISTICS: - The following are the characteristics of performance
A) IT IS A SYSTEMATIC PROCESS: - performance appraisal is a well
defined process and systematically carried out in the organisation to
rate the employee and to find out the difference in them.
B) IT IS A CONTINOUS PROCESS: - Performance appraisal carried out in
the organisations continuously .It may be in one month, there

month, six month or every year .It is a periodic evolution process

where the employees performance is evaluated.
C) IT PROVIDES INFORMATION: - Performance appraisal provides
information to the management regarding the ability of the
employee for which he is being selected and placed .on the basis of
that information management ranks the position of that employee in
the organisation.
D) TAKES CORRECTIVE ACTION: - On the basis of the performance
appraisal the management tries to take corrective action against the
employees. The employees can be promoted and demoted on the
performance appraisal report and worked out in the enterprise.
E) ACHIEVEMENT OF OBJECTIVE: - Both long term and short term
objectives of the organisation required to arrived at. For that
purpose performance appraisal should be carried out so that it can
facilitate the enterprise to achieve the objectives.
FUNCTIONS OF PERFORMANCE APPRAISAL:-The main functions of appraisal
system are as follows:1) PROVIDES FEEDBACK: - Appraisal system provide a database of
each and every individual employee for his or her performance. This
feedback helps the performance evaluation of the employee .The
employee can able to know where he is and what to do in the
future ,Systematic and periodic feedback helps the employees
where he is where they stand and how to improve the job
performance .
2) CHANGES BEHAVIOUR: - Appraisal changes the behaviour of the
employees. Performance appraisal can distinguish between the
strength and the weakness and at the some time identifies the
future course of action. An employee can develop effective working
habits by performance appraisal.
3) HELPS THE MANAGERS: - Feedback in performance appraisal helps
the managers to take consecutive and positive decision for the
employee .The decisions like pay, promotion, transfer, demotion and
punishment on the basis of appraisal report helps a manager in the
organisation for betterment.
continuous appraisal report helps both the boss and the assistant to
develop a good relation between themselves .The work culture in
the organisation can not be affected by the appraisal report as the
deserved employees will only get the benefit .
Appraisal of employee is not an easy task. It requires a number of steps
in order to make it more appropriate and accurate. The steps are:1) ESTABLISHMENT OF STANDARD: - This is the primary step in
performance appraisal. The content and nature of the job should be
prepared .Before evaluation the criteria of the job should be fixed.






The criteria must be clear and objective .The standards of

performance should be quality of work , honesty,
Team work, sense of responsibility, initiative etc.
COMMUNICATING STANDARDS: - After specification of standards
they are communicated to the employee so that they come to know
what is expected form them. After communicated the standards to
the employees feedback to these standards is obtained if required
standards can be modified in the light of feedback obtained from the
employees. If there is no reaction than it should be taken into
granted that the employee.
MEASURE ACTUAL PERFORMANCE: - The next step in performance
appraisal is to measure the actual performance with the standards
fixed .Actual performance can be made when we acquire
information about the performance .work performance can be
measured through personal observation, statistical reports, and oral
report and written reports.
measurement of performance the next step is its comparison with
the actual .In this step the actual performance is compared with the
predetermined standard, with reveals the deviations, when the
actual performance is more than predetermined it is positive and if
the actual performance is less than predetermined it is negative.
compression of standards enables to determine the growth and
advancement of the employee in the organisation.
DISCUSSING THE APPRAISAL: - The results of the measurement
should be communicated to the employee so that be can be able to
know the strength and weakness of his work. If necessary the
worker can be motivated for organisation and tried to improve
FOLLOW UP ACTION: - This is the last step in performance
appraisal .In this step corrective action can be initiated .This follow
up- action can be made with mutual discussion with the employees
in order to improve performance. The corrective action may be
training, couching, counselling and orientation that help an
employee to improve performance.


A. Straight ranking method
B. Man-to-man comparison
C. Grading method
D. Check list method
E. Group Appraisal



B. Human Asset A/C

C. Management by

A) STRAIGHT RANKING METHOD: - It is one of the simple and object
method of performance appraisal .In this method the work of an
employee is compared with the work of another employee and
accordingly different ranks are allotted. This method helps to
distinguish between the most efficient form the last efficient.
B) MAN TO MAN COMPERISION METHOD: - This is one of the oldest
method of appraisal utilised in usa Army during 1st world war. In this
method some factors are considered like leadership honesty,
initiative and responsibility of an employee .Each factor is rated in a
scale with the performance of other man. Higher is the scale high is
the performance and low is the scale low is the performance.
C) GRADING METHOD: - Under this method the appraiser considers
certain features and marks them accordingly to a scale .Certain
categories of worth are first established and carefully defined. The
selected features may be cooperativeness, job knowledge,
judgement, organising ability etc. Different grades are allotted to
each selected feature like A for co-operation, B for leadership, C for
judgement like accordingly performance is measured with the
D) CHECK LIST METHOD: - Under this method the working performance
of a worker can be measured with a list of reports. The list has been
prepared by the ratter about the behaviour of the employee .The
ratter than checks to indicate if the answer to a question about an
employee is positive or negative. The check list may be :A) Is the employee really interested in this job?
B) Is regular in this job yes/No.
C) Does he follows instructions properly Yes/No.
D) Does he make mistake ever Yes/No .
E) Does he is willing to cooperate Yes/No .
E)GROUP APPRALSAL METHOD :- Under this method the performance of
a worker is measured by agroup .The group consists of two
supervisors and two senior and experienced workers of that group
.The senior staff will describe the performance of the group to the
supervisor who can rate the performance of the employee .
A) ASSESSMENT CENTRES:- This is one of the modern methods of
performance Appraisal. Under this method the employees
performance is carried out in a separate place know as assessment
centres . In these centres the workers are grouped and the
supervisor who is in charge rating the employees feel that all the
workers are not equally competent . Accordingly the ratter fixes

some standards like acceptable , more acceptable , less acceptable

and un acceptable . with the standards the ratter will evaluate the
employees of that group in a assessment centre .The ratter or the
supervisor is an experienced person who has the authority and
capacity to evaluate an employee .Generally this method is
appropriate to help the workers for the purpose of promotion .
B) HUMAN ACCOUNT ASSET METHOD :-It is another method of
performance appraisal .In this method the workers are treated as
the resources of an organisation .The valuation of asset of that
organisation .In this method it has been taken to granted that
human employees are equal to assets of the organisation . In such a
way all the productive workers should feel safe in the organisation
.So they should not leave the organisation at any cost . There must
be co-operation , team spirit and good understanding among the
workers . Conflict and distrust will lead to devaluation of human
resources .So this type of appraisal method is applicable and prevail
in developed country organisation .Because in these organisations
all the employees are motivated and productive employees .
MANAGEMENT BY OBJECTIVE (MBO):----- This method of
performance appraisal was introduced by peter trucker . It is one of
the powerful method of managing the working ability of
employees .This method minimises the internal control and
establishes joint responsibilities between the managers and
subordinates . it is a process where by the superior and subordinate
managers of an organisation jointly identify its common goals
,define each individuals major areas of responsibility in terns of
results expected of him and use these measures as guides for
operating the unit and assessing the contributions of each of its
members .It is result oriented , it is performance that counts , It is a
management system and philosophy that stress goals rather than
method .
Meaning:- Relation in general term means good understanding in normal
life with each other .In the some way good understanding between the
employee and employer in industrial organisationcalled as( Industrial
Relations) or Employer- Employee relation .
The concept of IR has begun in India during struggle for Independence
.The just and textile workers took the support of the leaders of
Independence movement led by mahatma Gandhi .They protested against

the oppressive practice of the British people since

changed a lot in India .

then scenario of IR

Now it has been felt by all most all the Industries that a better IR that
resulted in high productivity for the organisation and better wages for the
workers .On the other hand a strained relation between the employeremployee will lead to strike ,lock-out, fire fighting etc .Sance IR is
considered to be an important concept in HRM .

DEFINITION :- Armstrong has defined IR is concerned with the systems

and procedures used by the unions and management to determine the
reward for effort an other conditions of employment to protect the
interest of the employed and their employers and to regulate the ways in
which the employers treat their employers .
OBJECTIVES OF IR :- IR of a country is in fawned a lot with political
government .As govtchanges from time to time the objective of IR also
changes . Broadly the objectives of IR is two categories .
1) Primary objective 2) Secondary / Auxiliary objective .
Primary objectives of IR has laid down in Industrial policy Resolution
.These objectives are:A) Improve the economic condition of the workers .
B) State control over Industrial undertakings .
C) Socialisation and Rationalisation of Industries .
D) Create a proprietary interest among the workers.
Secondary objectives of IR are as follows .

Establish good relationship between employee and employer .

Avoid industrial conflict .
Enhance the economic for workers .
Provide an opportunity for workers to participate in the
management .
Increase productivity in the organisation .
Avoid unwarranted interference of the govt.
Establish Industrial Democracy on the basis of worker partnership .
Socialise the Industrial activity in the state .

IMPORTANCE OF IR:- In order to maintain a good and positive relations

between the employee and employers . IR plays a dominant role in the
organisations . Its importance are as follows:1) Keep Industrial place:- IR foster Industrial peace .under IR
mechanism both the employees and employers consult each other
regarding any doubt and then initiate action so that unilateral





actions that confuse and create misunderstanding can be removed

and peace prevails which leads to prosperity .
Promote Industrial Democracy:- IR provides participative formula in
the Industrial .The workers can take active participation in the
decision process so that relations between the management and the
workers can be good . Hence democracy prevails in the enterprise .
Reward for workers:- IR provide benefit to the workers with the IR
mechanism it protects its management to implement the unethical
practices in order to exploit the workers IR induces the management
to provide good and favourable working condition to the workers
.workers grievance if any can be solved properly which benefit the
workers .
Benefit to management :- with the introduction of IR it provides a
mechanism to handle the indiscipline workers in the organisation
.Any problem in work place can be consulted and mutually
acceptable formula has been evolved by the managers to restore
peace in the organisation .
Improves productivity :- IR considers to be the key factor in the
industries to increase production productivity rises with a friendly
relation with the workers as a single day has not wasted due to
strike , lockout , absenteeism, dropout industries .

REASONS OF POOR IR:-There are different reasons for poor industrial

relations in the industries . The causes of poor IR due to economical,
political personnel , legal considerations . some reasons.
A) Nature of Work:- It is the work gives birth to good IR .Because job
satisfaction for the worker induces to remain absorb in work . Job
dissatisfaction leads to frustration which cause evil effects . Hence
job design and job assignment among the employees should be
proper .
B) Dissatisfactory Compensation:- Workers work in the industry for
compensation .If salary and wage will not be a satisfactory reason
for the employees they will not work proper due to poor IR .some
times the workers demand more and equitable wages compering to
other organisations . If not fulfilled the relation with the
management will be bad and the result with be poor IR.
C) Inactive Trade Union :-In an industry Trade unions protect the
interest of its workers but due to inter-union rivalry, politicisation the
trade union remains disfunctionary. Hence it loses the trust and faith
of the workers which leads to poor IR with management .
D) Un-Conducive Organisation Climate:-Organisational climate refers to
a set of characteristics that describe the Organisation. It is basically
the working environment provided in the industry to its works . A

good and supportive work culture and condition induces a worker to

maintain good relation and adverse to it have poor IR in the
Organisation .
HOW TO MAKE SOUND IR:- Sound IR is a necessity for the growth and
development of the Organisation .Bat a sound IR does not automatically .
Developing and maintaining a good IR requires constant and deliberate
effort towards this direction .The following points should be looked into for
maintaining a sound IR .
1) MUTUAL TRUST:- It has been felt that trust between labourand
management is the foundation of developing sound IR in the
Organisation . The management must have faith to his labourers
and the labourers must have to consider the management as
reliable .This mutual trust will be the yard stick for a sound IR
system .
2) DEMOCRATIC TRADE UNION:- Existence of a democratic trade union
in an organisation can build a sound IR. Trade unions can bargain
before the management regarding the interest of the workers
.Employees interest can be in terms of salary , wages working
condition job security and other benefits form time to time .A sound
and democratic trade union can able to do that which in turn can
create sound IR in the organisation .
3) INDUSTRIAL PEACE:- It is said that peace brings prosperity and
prosperity supports happiness . In an organisation peace is the
primary requirement which can be established through different
ways .Industrial peace can be through prevention and settlement of
Industrial dispute , evolving good personnel policy, code of conduct
code of discipline collective bargaining method participative
management policy etc.
4) PROFESSIONAL APPROACH :- Now in all most all the organisations
attach more importance towards solve the employee problems . The
sound IR depends on the problems solving approach by the
management .Persons having professional competence and
approach should be in charge of development of IR among the
workers at work place .
5) FEED BACK AND CONTROL:-Continuous feedback and effective
control over the existing employees leads to sound IR .The control
technique should be from the beginning, as some small problems
may create havoc in the long run .some simple matter may be very
complicated if not dealt properly in appropriate time continuous
feedback and timely control can lead to sound IR in the organisation

The above points should be taken into consideration while maintain a

sound IR in the organisations. A sound IR will lead to prosperity and
development in the organisation.

Meaning :- Human Resources later . These Resources are governed by
human mind .Human mind is a store house of good, bad and evil thoughts
. Industry is a place where lost of human mind are working . They think in
different ways .Any clash in interests leads to dispute .In common
meaning dispute means difference or disagreement over some issues
between the parties . If the disagreement in an industry it is termed as
industrial dispute .It takes a second to begin and takes years to settle
.Industrial growth . It is required through good relation between the
employer and employees . But in practice the relation goes on souring
which leads to industrial dispute .It can take any form like strikes , gears ,
lock-outs , demonstration and picketing which can be resolved amicably .

Industrial dispute act 1947 the term ID as any dispute or difference
between employers and employers or between employers and workman
or between workman and workman which is connected with the
employment or non-employment or the terms of employment and
condition of employment of any person .
NATURE OF ID:- The following are the nature of ID .
1) The dispute must affect the interest of a Large number of workman .
2) The dispute must be taken by the Industry union.
3) The grievance must turn an individual complaint to a general
complaint .
4) There must be some nexus between the union and the dispute.
FORMS OF ID:- ID can be in the following forms:1) Strike :- Non-acceptance of employees demand leads to stop the
work means strike. The unions support it when all hopes of the
workers are shattered out there is no way left out but the strike.
Strike can be for a definite period or for an in-definite period. Strike
can be:A) Economic Strike:-This strike undertaken by the members of the
union to fulfil the financial benefits of the workers. Financial





benefit may be rise in wages , bonus, health services, education

services, living condition, working condition etc.
B) General Strike: - When all the employees irrespective of regions ,
unions and position are involved in strike is known as general
strike .
C) Sympathetic Strike: - It is known as token strike .When the strike is
undertaken by the members off one union and other union as a
token of sympathy support that striking union.
D) Sit down strike :- It is known as pen down or tools down strike .In
this type the workers stop their work but do not leave the place of
work .
E) Slow- Strike:- Here the employees do not stop the work but do not
work enthusiastically .It is an organised way of protest in order to
go slow which resulted in less output .
GHERAO:- It is a common means of protest .It can be done at any
time by any group when they are dissatisfied .The workers surround
the head or executive with a human chain preferably in his office and
do not allow him to leave the place sometimes gears tums to
violent .
LOCK- OUT:- It is undertaken by the employers .In order to resume
work on the terms and conditions of the employer ,By lock out the
employer curb the militant activities of the union lockout considers to
be the trial of strength between the employer and employees .
PICKETING :- When the employees draw the attention of common
public regarding a dispute between the management it is known as
picketing .In picketing the leaders of the employee group dissuading
the employees to report to work .Picketing considers to be legal in
character to protest for a demand .
BOYCOTT:-When the workers disrupting the normal functioning of the
organisation. The striking workers appeal to other
workers for
voluntary withdrawal of co- operation with the employer .Boycott
adversely affect the company image.


1. Salary & wages
1. Non-recognition of
2. Dismissal &Retrenchment
2. For leadership
3. Bonus
3. Political interference
4. DA
4. Nepotism
5. Working condition
6. Automation
7. Other reasons like medical Educational Homing etc.

A) Salary and wages:- Rise in prices of essential commodities has
brought down the value of money. This has resulted in lower down
the salary and wages of the employees which forces them to
demand for higher salary &wages .
B) Dismissal and Retrenchment:- With the increase in unemployment
situation if any employee will be dismissed or retrenched the
workers union will take up the issue and demand for justice .As
dismissal and retrenchment of an employee is a severe jot to the
employees family .
C) BONUS:- It is payable to the workers out of profit .Non-payment of
adequate bonus to the workers leads to industrial dispute .It has
been made mandatory to all industrial units to pay a bonus
amount of 8.33% under industrial dis put Act-1961 with the
workers participation in managerial affairs they demand more
share in enterprise profit .Non-acceptance of their demand leads
to industrial dis put .
D) Dearness Allowance:- Increase in price level and scarcity of
essential commodities leads to bring down the standard of living
.To maintain the standard of living the workers demand more DA.
Non-acceptance of the demand leads to industrial Dis put .
E) Working Condition :- It is desirable on the part of the industries to
provide good and favourable working condition pure drinking
water , lighting and air facilities, sufficient safety provision and
normal and permissible working hour should be taken care by the
management . Absence of these hygienic conditions leads to
industrial dis.
F) Automation:- Adoption of new and update technology leads to
modernisation and automation of
the industrial .But this
modernisation and automation adversely impact on the workers
.Because this leads to less engagement of employees. Due to nonengagement and retrenchment leads to industrial Dis put .
G) Other Reasons :- Some other economic reasons like housing
facility , Educational scope and medical facility , Transportation etc
if not adequate and proper the employees will demand for the
same .It leads to industrial Dis put .
NON-ECONOMIC REASONS:A) Non-recognition of unions:-Failure to recognise the employee
union and their representative is one of reason of industrial Dis
put. Some employers do not attach more importance to the
existence of unions and their representative. This leads to
resentment which cause industrial dis put in the organisation .

B) Leadership issue:- Poor leadership among the employer as well

as employee leads to discontentment among the workers .They
can demand for both managerial as well as employee
Leadership to be strong enough for redressed of theirgrievances
which leads to industrial dis put .
C) Political Interference:- Some times political organisations do
interfere in union affairs for their political gain .They have
neither knowledge about the employee grievance nor they have
any relation with the employer .In order to restrict the political
interference the employees may raise dis put in the organisation.
D) Nepotism:- Some supervisors are not impartial while treating
their sub-ordinates .They seek nepotism and treat partially to
some employees .This undue favouritism and nepotism leads to
discontentment resulted in industrial Dis put.


MEANING:- In general sense participation means the meaningful
interaction of human being with people they are condemned.
Participation enables one to perform better. Peoples participation in govt.
means democracy Democracy in govt .means of the people by the
people and for the people. Industrial democracy can be possible with the
workers participation .It can be said that management of an industrial
unit by the people and for the people It provides a sense of
belongingness of a worker to the organisation and a sense of
commitment to various decisions taken.
In twentieth century a drastic change has been witnessed in the field of
industries . Now it has been considered that the workers are not factors of
production but they are the asset and resources of the organisation .The
failure and success of an industry depends on its worker participation in
management means extension of democracy in the industry .
Five year plan draft document has observed that for peaceful evolution
of the economic system on a democratic basis it is essential that workers
participation in management should be accepted as a fundamental
principle and an urgent need workers participation in management is a
tool to Human Resource Development.
It is the concept which promote mutual trust and understanding between
workers and management to establish industrial peace and achievement
of organisational goal .In industrial dis puts Act 1947 there are provisions
for workers participation in management .workersparticipation provides a

scope for formal and in-formal communication which develop a good

relationship between workers and management .

DEFINITION:- International Labour organisation has defined

participation in management . As association of workers and their
representatives with the decision making process , ranging from
exchange of information , consultation decision and negotiations to more
institutionalised forms such as the presence of workers members on
management or supervisory boards or even management by workers
OBJECITVES OF WPM:- The following are some of the objectives of workers
participation in management .The estimate objective of wpm is to
achieve organisational effectiveness and provide satisfaction to its
employees . Accordingly thee objectives are categorised as primary and
secondary .The primary objectives are as follows:-OBJECTIVES
1. Industrial Harmony
2. Good Communication
3. Sense of Belongingness
4. Handle resistance to change
5. Sense of commitment

1. Economical
3. Social

A) Industrial Harmony:-WPM promote mutual understanding between
management and workers .The workers can get the scope
ofunderstanding and the management will have the chance of
understanding with the workers .with mutual understanding and cooperation the industrial peace can prevail which leads to
achievement of objectives.
B) Good Communication:- Sharing of informations between the
employer and employee must be good in order to get financial
benefit WPM enables both employee and employer to have good
C) Sense of Belongingness:- A worker can be an Asset for the
organisation when he will belong to that organisation. Sense of
belongingness can convert a human into resource for an

organisation .This belongingness can be improved with WPM in the

Industries .
D) Handle resistance to Change:- Trade unions are for the shake of
employees.With their narrow political gains sometimes they protest
to the change in policy , procedure and plans of the organisation
.WPM helps the management to handle such resistances from
employees side .
E) Sense of Commitment :- WPM increases the sense of commitment
among the workers . The decisions made by the organisation are the
consensus between the employer and employee. All the decisions
arrived where the workers are a party to it .Hence it promote a
commitment among the employees .
A) Economical:- WPM increases good relation among the worker and
management. Better relation leads to more productivity and output.
In general the production can be increased to a maximum extent
which helps to increase industrial productivity . Industrial
productivity lead attain economic objective of the country .
B) Psychological:- WPM has a positive impact on the behaviour of the
workers . It provide a sense of self-respect in the minds of the
workers by which they feel dignified and behave in a responsible
manner . Hence positive psychology convert them effectiveness in
working which leads to increase industrial production.
C) Social:- WPM promotes social responsibility of the industries .It
reduces industrial dis put and increases industrial peace and
harmony .o improve
There are different organisations forms of wpm follow by different
organisations . It depends on the level of participation by the workers
.Some of the methods are as follows:1) Suggestion method:- Under this methods the suggestions from the
workers are invited regarding the improvement of working condition
how to improve cleanliness etc. The best suggestions which can be
suitable to the management will be implemented and the conceded
workers will be rewarded . This method increases the importance other
workers in the organisation and encourage other workers in the
organisation for more and more participation .
2) Co-Partnership :- This is a method where the workers participate in the
decision making process .They are entitled toget the equity share of
the enterprise .The profit of the organisation can be distributed to the

workers in the form of share and being the share holder they can take
part in the management .
3) Works Committee:- Industrial Dispute Act- 1947 has made mandatory
to all the enterprise for establishment of works committee .The
committee can be constituted with equal numbers of the committee
should not exceed to Info numbers The purpose of the committee is
create a cordial and harmonious relationship between the worker and
the management .
4) Board Representation:- Under this method two or three workers
representative are vomited to the Board of Directors of the enterprise .
The nominated workers enjoy the same privilege and authority in the
Board .They can actively take decisions on policy matters and
procedures of the enterprise along with the other members of the
management .This method ensures an effective step in workers
participation in management which promote the belongingness of the
5) Joint Management Councils :- Industrial policy 1956 made it mandatory
forIndustries to constitute joint management councils between
management and workers to maintain Industrial peace .Jmc is an
advisory committee which discuss the matters related to working
condition safety measures training programmes rules and regulations
etc. The recommendations are made to the management. Jmc are
constituted with prior consultations with recognised trade unions of
the Industries.
MERITS OF WPM:- In order to promote industrial peace and better
Industrial relations WPM is a tool .It is considered to be an workers .The
1) Mutual Understanding:- The mentality of the employer and employee
are different .WPM brings the both parties together . This enables both
of them to understand their problems which minimises the conflict and
promote industrial peace .
2) Increase employee efficiency:- WPM enables the worker to become a
partner in various decision making process .What ever decisions are
taken they are their own and it compels the workers to abide by them .
The workers become enthusiastic and can devote maximum time in
work by the way the workers become more efficientin their work .
3) Establish Industrial Peace:- WPM provides an opportunity how to be
more responsible and understand each other by taking joint decision.
This joint responsibility leads to understand each other better which
reduce the dispute. This minimisation of conflict leads to
establishment of industrial peace.
4) Promotion Of Industrial Democracy:- WPM helps in promoting industrial
democracy .mutual cooperation and decision of both employer and

employee leads to betterment of both the parties .It leads to promote

Industrial democracy .
5) Welcomes Changes:- Any technological charge, managerial change ,
operational change can be either rejected or accepted with mutual
consultation .If any change will bring more benefit and reduce the cost
it will be welcomed and on the other if any change will be counter
productive it will be rejected.
6) Personal Development:- The workers feel dignified by participating in
decision making process .They can able to face any responsibility and
challenge in the industry .Hence personal development for each
worker can be possible by workers participation in management .

1) Chance of Suspicion:- WPM crates a sense of suspicion in the minds of
both employer and employee. The feeling of insecurity among the
workers and feeling of incompetency among the management leads to
suspicious in workplace .This will increase the sour relation between
the employer and employee .
2) Weak Trade Union:- Most of the trade union are led by politicians .So
the politicians are not in favour of sending qualified representatives to
the management board .They always want to take advantage of the
situation by WPM in the industrial . This will be a drawback

MEANING:- A good number of employees are working in different
organisations. The problems of the employees are not uniform in nature.
Different employees have different problems in different organisation .The
problems may be relating to salary , wages , bonus , medical facility ,
working environment , safety and health problems , education facility to
their children etcetc .All these problems need to be solved with
negotiation .
Trade union act as representatives of the workers to pat forth their
grievances in front of the management .They increase the bargain power
of the employees. The management on the other hand accepts those
demands which can be mutually agreed upon so that it will solve the
purpose of management .
Collective bargaining is a process of negotiating between management
and the representative of workers for determining mutually agree terms
and conditions of work which protect the interest of both workers and

management .It is the group bargain against individual bargain. It can be

said that collective bargaining is an agreement collectively arrived at by
the representatives of the employees and the employers.
DEFINITION:1) Collective bargaining can be defined as a process of a situation in which
the essential condition of employment can be determined by a bargaining
process undertaken by representatives of a group of workers on one hand
and one or more employers on the other. By-Dale
2) Collective bargaining refers to the negotiations administration and
interpretation of a written agreement between the representatives of the
employees and the employers of the management related to conditions of
employment. By- Robbins.


bargaining the management can able to get the co-operation of its
employees. So all the problems can be sorted out with a minimum
cost . A sense of understanding can be created in the minds of the
employees to carry out their work. With this understanding and cooperation industrial peace can be arrived at .
2) EMPLOYEES CANNOT BE EXPLOITED:-Collective bargaining increases
the bargain capacity of its workers .The interest of the workers can
be safeguarded through collective bargaining . It is a tool in the
hands of the workers to get their demands fulfilled in a peaceful
manner without any conflict with the management. Hence the
management cannot get the scope to exploit the workers in the
increases the self- respect of the workers. BY getting more benefits
and implementing various welfare schemes through the bargain
process the trade unions strengthens the workers unity . It provides
a scope to boost trade union movement in industries . Hence
industrial jurisprudence can be promoted in the industry .
increases industrial peace. most of the workers problem and their
grievances are solved through negotiations . The workers become
motivated workers and become productive worker for the industry.

With the help of productive workers industry production can be

increased in society .
MENT:-Collective bargain improves better employer and employee
relation in the industry. All the employees become responsible and
no unwanted activity can be created in the organisation .As a whole
the employees become disciplined workers which force the
management not to initiate anyarbitrary action against the
IS a process where the representatives of trade union and the
management representative sit together for mutual negotiation
.This process provides a scope for better understanding between the
authority and sub ordinate . Hence inter personnel relationship can
be developed in the industrial

COLLECTIVE BARGAIN PROCESS:The bargaining continues through a process which consists certain
stages . However the number of stages vary from organisation to
organisation. The bargain process depends on the nature of parties
involved in bargain process.
Generally a bargain process consists the following steps .The steps
are:1) PRENEGOTIATION:- This is the primary stage of bargain process
.It is the stage for preparation of bargain . The negotiation
process begins from this step .Both the parties for negotiation i.e
the management an the union make preparation for bargaining .
The management people will decide the strength and weakness
of the union leaders and the impact of the bargain to the
organisation in the future . The union leaders collect data from
other industries and the leaders regarding the negotiations and
the expectations of the employees in the organisation.
2) NEGOTIATORS :- In this step the person in charge of negotiation
will be decided . It is one of the important step in bargain process
. The negotiator considers to be an important person from both
the parties .The management side negotiator may be the
industrial relation officer , the personal manager the head of the
particular department connected to the negotiation .The
negotiation from the union side may be the secretary, vicepresident or the president of the workers union. The negotiation
should be a competent person who can put forth the sentiment of
both the parties involved in bargaining process.

3) NEGOTIATION:- After completion of the 1 st two steps , the third

step is come to the negotiating table .Both the negotiators gather
in a mutually convenient time and place to continue bargain
process. Generally the union side put forth the demand of the
employees and the management side took a note of the demand
in the negotiation stage the union negotiator will try to accept
the minimum demands. It is generally a give and take formula
and the negotiation can be termed as fruitful when both the
parties will fail if there will be no compromise between the
negotiators and another date and time will be prepared for
4) AGREEMENT:- In this stage a written contract between the two
parties consisting of the terms and conditions of the agreement
the date from which it comes into effect ,the duration for which it
will remain in operation and the persons who will put their
signature in the agreement . As per industrial dispute Act 1947,
the contract shall be binding only on the parties of the
agreement . The agreement can be declared as official document
after ratification . Both the management and union leaders
should sign the agreement.
5) IMPLEMENTATION:- This is the last step in collective bargaining
process . After the agreement is approved it should be
implemented in terms of its letter and spirit by both the parties .
The date of its implementation should be as per the agreement .
It is the responsibility of Human Resource Department to ensure
the proper and full implementation of all provisions in the
agreement . It should be considered that if any grievance in the
agreement or in its implementation stage itshould be considered
and taken into account while implementing the agreement .
Collective bargaining is one of the important tool to settle the industrial
dis put . Effective collective bargaining depends on several conditions .
If the conditions will be favourable than collective bargaining is
effective .The following are some of the conditions.
A) TRADE UNION :- with the improvement of employees in different
organisation trade unions play an important role to protect the
interest of its employees .so a recognised strong trade union
should be there for effective collective bargaining more the
strong the trade union is more effective will be the collective
bargaining and vice- versa.
B) ATTITUDE OF THE PARTIES:- The attitude of both the parties is an
effective condition for collective bargain both the management

and the worker should follow a problem solving attitude while

negotiating .The parties should follow the principle of give and
take approve. A compromise attitude of both the parties
considers to a condition favourable for effective collective
bargaining .
C) Availability of Data :- Information and data serve as a condition
for effective collective bargaining . The relevant data should be
supplied by the management and the workers have faith in
those datas .with out adequate and relevant data the collective
bargaining cannot be effective one.
D) Continuous Dialogue :- collective bargaining can be effective
when there is a continuous conversation between the
management and workers . If there will be deadlock in dialogue
between the parties than an agreement cannot be arrived for
some controversial issues between the management and worker
in order to narrow down the dis agreement there should be a
continuous dialogue as a condition for effective collective
bargaining .
E) Favourable political and social climate :- Industrial dis put can
be settled through collective bargaining when there is a
favourable political and social environment in the nation .when
the industrial dis put will be supported by the government and
favoured by the public the collective bargaining will beeffective
many countries have different political parties and affiliated to
different trade unions. The political parties does not consider the
interest of the worker rather more interested in their political
achievement .Hence collective bargaining process suffers a
deadlock. So a favourable political and social climate will be an
effective condition for effective collective bargaining.