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Department of Apparel Manufacturing Management Technology

Program: MBA in PFM

Module Name: Human Resource Management

Module Code: MMBA-606


Assistant Professor
Department of Business Administration
Updated on: 01/08/2015

Module Specifications


: MBA in Product & Fashion Merchandising

Module Title

: Human Resource Management

Module Code

: MMBA-606


: All courses up to 1st Semester

Year of study

: 2nd Semester

Course Level

: Core Course

Total Credit

: 3 Credits

Total Week

: 18 Weeks

No. of Lectures

: 18 Lectures

Total Hours

: 45 Hours

Contact Hour

: Each class 2.00 hours; 1 class in a week 2:00 hours

Assessment method : Continuous Assessment, Mid Term and Final Exam


HUMAN RESOURCE MANAGEMENT (HRM) is the function within an
organization that focuses on recruitment of, management of, and providing
direction for the people who work in the organization. In other words, HRM is
the organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development,
administration, and training.
The competence and skill needed to effectively manage people in work
settings is of utmost importance to organizations. To meet this challenge,
this area is intended for two types of management-oriented students: (1)
Students who believe that they will be more effective in their future careers if
they master the skill of managing people in technical work settings as line
managers and (2) Students who plan to specialize in the industrial relations
and personnel functions as staff managers. This area is concerned with
developing and disseminating knowledge and skills concerned with the

management and utilization of human resources to meet the needs of

individuals and organizations in the private, public, and nonprofit sectors.
The field and scope of HRM is evolving rapidly.
The main issues addressed in this course can be broadly divided into two
main topics: the important environmental influences on HRM & acquisition,
development, motivation and maintenance of human resources.

Course Objectives:
With fast changing economic environment, pressure on company profit
margins is growing. In an overcrowded market, competitive advantage is fast
moving away from physical and trade-able assets to intangible and nontrade-able assets. Human resource competency stock of a company is one of
the most valued non-trade-able assets which could be used for creating a
competitive advantage that is sustainable. However, unlike other resources,
human resource acquisition, deployment and development are a long drawn
and time consuming process and require advance planning and concerted
action by many managers including the line managers. Sustainable
competitive advantage based on human resources would require a pro-active
and joint approach by both the line and the staff functions not only to design
human resource policies but also to implement them. The objective of the
course is to discuss and understand a few of the above issues.

Syllabus Outline and Teaching Plan


Lecture Topic

Introduction to Human Resource Management; Importance &

Objectives of HRM
What is Human Resource Management?
HRM is an approach consisting of four basic functions


Several other functions

Importance of HRM
HRM Model; Quality of Work Life
Productivity; Readiness for Change
The objective of HRM

Motivation of Human Resource; The Two-Factor (MotivationHygiene) Theory of Motivation

The Motivation Process


Need Theory
Maslows Hierarchy of Needs Theory
The Two-Factor (Motivation-Hygiene) Theory
Maslows needs approach
Herzbergs study
The Satisfaction-Dissatisfaction Continum under the Traditional View and
the Two-Factor Model

Human Resource Planning; Factors Affecting Human Resource

Definition of Human Resource, Manpower, Planning
How to Define Human Resource Planning
Definition of Human Resource Planning as defined by the thinkers


Type and strategy of organization

Environmental uncertainties
Time horizons
Type and quality of forecasting information
Nature of jobs being filled and
Off-loading the work

Human Resource Planning Methods; The Planning Process

Four methods of Human Resource Planning
Steps of Human Resource Planning


Integration of Human Resource Planning into the Financial Planning

Systematic Review of Internal Resources
Formulation of the Recruitment Plan
A model of Human Resource Planning

Job Analysis; Steps for conducting the job Analysis

Job Analysis
Task, Duty
Position, Job family; Occupation, Career


Methods of Job Analysis; Benchmark Positions

Purpose of Job Analysis; Job Descriptions
Job Specifications & Job Evaluations
Multifaceted Nature of the Job Analysis

Recruitment; Overview of the Recruitment Process

Definition of Recruitment
Sources of Recruiting
The Internal Search


The External Searches

The Recruitment Process

Selection & Interview; The Effectiveness of Interviews

Definition of Selection
The Selection Process
Initial Screening; Completion of the Application Form


Interviews; Becoming a More Effective Interviewer

Put the Applicant at Ease; Obtain Detailed Information
Structure the Interview ; Review the Candidates Application
Ask Your Questions; Conclude the Interview
Complete a Post-Interview Evaluation Form

Training & Management Development; Determining Training

Needs and Priorities
Definition of Employee Training
Employee development


Management Development
Theories of Learning
Principle of Learning

Whether there is a need for training?

Apprenticeship Programs
Job Instruction Training

Off-the-Job Training; Evaluation the effectiveness of training

Classroom Lectures; Videos and Films
Simulation Exercises; Computer-Based Training


Vestibule Training; Programmed Instruction

Employee Development Methods
Post-Training Performance Method:
Pre-Post-Training Performance Method
Pre-Post-Training Performance with Control Group Method

Career Development; Internal and External Events and Career

Individual versus Organizational Perspective


Career Development: Value for the Organization

Reduces Employee Frustration
Career Development: Value for the Individual
Suggestions for More Effective Organizational Career Development
Challenging Initial Jobs; Dissemination of Career Option Information
Job Postings; Assessment Centers

Steps in Managing your Career; Individuals Career Development

Do Good Work; Present the Right Image
Learn the Power Structure; Gain Control of Organizational Resources
Stay Visible; Dont Stay Too Long in Your First Job


Find a Mentor; Support Your Boss

Stay Mobile; Think Laterally
Suggestions for an Individuals Career Development
Career development suggestions
Work Harder Than Ever at Developing a Network

Performance Appraisal; Methods of performance appraisal

Define Performance Appraisal; Steps in Performance Appraisal


Absolute Standards; Essay Appraisal

Critical Incident Appraisal; Checklist
Graphic Rating Scale; Forced Choice

Effectively Evaluation Employees; Factors that can distort

Evaluation Employees


Generate a Development Plan

Leniency Error; Halo Error; Similarity Error
Low Appraiser Motivation
Central Tendency

Compensation Administration; Insurance policy & Insurance



The types of employee rewards

Intrinsic versus Extrinsic Rewards
Financial versus Non-financial Rewards
Job Evaluation; Methods of Job Evaluation

Benefit; Categories of benefit plans

Definition of Benefit; Objectives of the employee benefits


Inflation protection; Coverage for domestic partners

Required/Mandatory Security; Voluntary security
Retirement; Time- off related benefits
Holiday Pay; Vacation

Leave of Absence; Stress & Burnout

Health and insurance related benefit; Health Benefit
Non medical insurance benefit
Financial, Social, and Recreational benefits


Non-financial benefits; Stock benefit

ESOP (Employee Stock Ownership Plan)
Definition of Stress; Causes of stress
Symptoms of Stress
Physiological Symptoms; Psychological Symptoms
Behavioral Symptoms; Burnout

Reducing Burnout; Industrial relation

Safety and Health Program
The Occupational Safety and Health Act


Safety Programs
Definition of Industrial Relation
Definition of Trade Union
Specific Goals
Maintenance of Membership


Presentation, Assignment Submission, Review class

Basic Textbook:

David A. DeCenzo & Stephen P. Robbins (1999) Personnel/Human

Resource Management, Third edition, Prentice Hall: London.

Reference books:
Raymond A. Noe, John R. Hollenbeck, Barry Gerhart & Patrick
M. Wright (2003) Human Resources Management, fourth edition,
McGraw Hill Irwin: London.
Rao, T V (1996) Human Resources Development, Sage Publications:
New Delhi/Thousand Oaks/London.
George T. Milkovich & John W. Boudreau (1998) Personnel: Human
Resources Management, Fifth edition, Irwin: New Delhi.

Lecture Schedule
Week Lecture Hours

Lecture/Assessment Schedule


















Introduction to Human Resource Management


Importance & Objectives of HRM



Motivation of Human Resource; The Two-Factor


(Motivation-Hygiene) Theory of Motivation

Human Resource Planning


Factors Affecting Human Resource Planning

Human Resource Planning Methods


The Planning Process

Job Analysis


Steps for conducting the job Analysis



Overview of the Recruitment Process

Selection & Interview
Training & Management Development


Determining Training Needs and Priorities


Off-the-Job Training



The Effectiveness of Interviews




Evaluation the effectiveness of training program

Mid-term Examination















Career Development
Internal and External Events and Career Stages
Steps in Managing your Career


Individuals Career Development


Performance Appraisal


Methods of performance appraisal


Effectively Evaluation Employees


Factors that can distort appraisal


Compensation Administration


Insurance policy & Insurance Contract

















Categories of benefit plans


Leave of Absence


Stress & Burnout


Reducing Burnout


Industrial relation


Assignment Submission and Presentation; Review

Class before Final Exam
Semester Final Examination
Semester Final Examination

Assessment Method:
Up to Mid Term Examination:






Power Point Presentation :


Mid Term Examination

20 (Exam will be conducted in 40 and will converted in 20)

Up to Semester Final Examination:





Power Point Presentation :


Semester Final Exam

40 (Exam will be conducted in 60 and will converted in 40)


Year & Semester
Course code
Course Title
Assessment Mode


A Practical
Problem of


MBA in Product & Fashion Merchandising

2nd Semester
MMBA 606
Human Rerource Management
40% Class assessment + 60% Written Exam
















Power Point
A practical
Case Study


All the above assignments/class tests must be carried out in class unless otherwise stated on the
written assignment brief.
Module Leder


Mohammad Bin Amin

5% is in Class attendance in Midterm and 5% is in Final

Last Updated on


Course Material: Prepared by

Mohammad Bin Amin
Assistant Professor
Department of Business Administration
Shanto-Mariam University of Creative Technology
Uttara, Dhaka-1230, Bangladesh

Module Name: Human Resource Management

Module Code: MMBA- 606
Module Teacher: Mohammad Bin Amin
Week: 01
Lecture No. : 01

Lecture Topic:
Introduction to Human Resource Management
What is Human Resource Management?
HRM is an approach consisting of four basic functions
Several other functions

Introduction to Human Resource Management

Human Resource Management
HRM is the part of the organization that is concerned with the 'people' dimension. HRM deals
with human relations of an organization starting from recruitment to Labor relation. HRM is
concerned with the people dimension of management. It is a process of acquisition, development,
motivation, and maintenance of human resources of an organization.
HRM is a part of General Management that deals with the human aspect.
Many authors defines it is different manner. Some of them are quoted below:
According to M.J. Jucious, "The field of HRM involves Planning, Organization, Directing and
Controlling functions of procuring, developing, maintaining and utilizing a labor force."

According to Dale Yoder, "HRM is the provision of leadership and direction of people in their
working or employment relationship."
According to Mathis and Jackson, "HRM is the effective use of Human resources in and
organization through the management of people related activities."
Every organization is comprised of people Acquiring their services, developing their skills,
motivating them to high levels of performance, and ensuring that they continue to maintain their
commitment to the organization are essential to achieving organization objectives. This is true
regardless of the type of organization Government, business, education, health, recreation or
social action. Getting and keeping good people is critical to the success of every organization.

HRM is an approach consisting of four basic functions:


Acquisition-Getting people
Training and development- Preparing them
Motivation- Stimulating them
Maintenance- Keeping them

Functions of HRM:

Human resource function refers to those tasks and duties performed in both large and small
organization to provide for and co-ordinate human resources. Human resource function are
concerned with a variety of activities that significantly influence all areas of an organization, and
include followings:
The Four basic Function of HRM are:
(1). Acquisition of human resources (Getting people)
(2) Development of human resources (Preparing people)
(3) Motivation of human resources (Stimulating people)
(4) Maintenance of human resources (Keeping them)
(1) Acquisition of human resources: There are two steps involved in acquisition process:
a) Recruitment: Recruitment is a process by which organizations locate and attract
individuals to fill job vacancies.
b) Selection: Selection is a process of measurement, decision making and
(2) Development of human resources: After selecting and recruiting individuals in the right
position of the organization the next function is to train and develop them, so that they can
become efficient employees and work toward the achievement of the organization goal.

(3) Motivation of human resources: The motivation function is one of the most important
functions. After training and developing the employees the HR manager should stimulate
them to work well. For motivation purpose the H.R manager have to give the employees
some compensation and benefit package.

(4) Maintenance of human resources: The last phase of the H.R.M. function is called the
Maintenance function. For maintaining the people H.R.M should go for some method of
providing a safe and healthy work place. Labour relation & collective Bargaining.
Several other functions are performed by H.R.M. These functions are stated below:
1) Formulation of H.R. Policies: H.R manager should plan appropriate human resource policy
in the organization and try to formulate it.

2) Procurement and selection of efficient employees:

3) Guidance and placement:

4) Training and development: After recruiting and placing the employees in the right place the
next step is to train and develop the Human Resources collected recently. There are different
method of training and development. "Training and Development means changing what
employees know, how they work, their attitudes toward their work, or their interaction with
their co-workers or supervisors.

5) Promotion and Transfer: It is an incentive for the employees & necessary for the
organizational improvement.

6) Job Analysis: Job Analysis is a systematic exploration of the activities within a job. it is a
technical procedure used to define the duties, responsibilities and accountabilities; of a job.
this analysis involves the identification and description of what is happening on the job.

7) Maintenance of working environment: Maintenance of working environment is a must for

every organization. Maintaining a healthy work-environment not only a proper thing to do
but it also benefits the employer, like - increase in productivity, increase positive attitude
towards their organization.

8) Protection of Employees: Employees should be well protected. Without safety measure the
human resources of the organization will not perform well/properly. Although safety is
everyone's responsibility, it should be part of the organizations culture; Top Mgt. must show
its commitments to safety by providing resources to purchase safety devices and maintaining


9) Remuneration: Workers come to work in the organization for getting remuneration. Without
remuneration Human resources cannot work. The human resources should be given provided
reasonable remuneration to work properly.

10) Employee services: They will be given service 'packages to work properly.

11) Job and Merit evaluation: Without job evaluation efficiency cannot be judged.

12) Labor management relation: There is a need for good and harmonious employer-employee
relation. Historically the relationship between labor and Mgt. was built on conflict. There
are various reasons for bad human relations and number of ways to increase it. We should
try to decrease the bad human relation and increase good human relation.
13) Workers Participation: Present age is democratic. Workers participation is an essential
condition for taking decision and formulating rules and regulations. Because workers are
the only source of energy for implementing organizational policies and operating machines
and equipment and achieve organizational goal.

14) Agreement with Trade Unions: T.U. is very powerful in the industrial context. Without
satisfying the T.U. leaders the H.R. managers cannot run the org. properly. That is why
acceptable agreement with the T.U. leaders is needed.

15) Leadership and co-operation: Without good leader an org. cannot run properly. It should
be guided for ensuring co-operation. Without co-operation a leader cannot proper utilize the
resources easily.

16) Providing benefits and rewards':For getting cooperation from the Human resources the
H.R. managers should provide them benefit packages and benefits.

17) Maintaining discipline: Discipline is essential for and organization to work properly.
H.R.M. manager .should take proper disciplinary action indiscriminately when indiscipline

18) Career Planning and Development: H.R. Manager should try to plan for the development
of career of its H.R's. Career means the pattern of work related experiences than span the
course of a personal life. Career development looks at the long-term career effectiveness
and success of organizational personnel.

19) Handling Grievances: HR managers should handle all source of grievance placed before
them fact fully and carefully. Indiscipline and unrest may be corrected.

20) Reviewing employee needs: HR managers must monitor the employee needs time to time
and try to satisfy the needs of employees.

There are some points of importance of HRM in an organization, which is stated below:
1) Formulation of HR policies
2) Implementation of HR Policies
3) Review of employee needs
4) Development of social welfare
5) Utilization of Human Resources
6) Development of Labor Management Relation.
7) Overall development of organization

HRM Model:
In recent years there has been relative agreement among HRM specialists as to what consitutes
the fiels of HRM. The model that provided the focus was developed by the American Society for
Training and Development (ASTD). In its study, ASTD indentified nine human resource areas:


Training and Development

Organization and Development
Organization/Job Design
Human Resource Planning
Selection and Staffing
Personnel Research and Information Systems
Employee Assistance
Union/Labor RElations

These nine areas have been termed spokes of the wheel in that each area implacts on the human
resource outputs: quality of work life, productivity, and readiness for change. Figure 2 is a
representation of this model, and the focus of each spoke.

The outputs of this model-quality of work like, productivity, and readiness for change-warrant
further exploration. Let us now take a closer look at each.

Quality of Work Life

Quality of work life is a multifaceted concept. The premise of quality of work life is having a
work environment where an employees activities become more important. This means
implementing procedures or policies that make the work less routine and more rewarding for the
employee. These procedures or policies include autonomy, recognition, belonging, progress and
development and external rewards.

Autonomy deals with the amount of freedom that employees can exercise in their job. For
example, if employees must get permission to purchase $2 in postage stamps to mail job-related
material, the freedom to act is significantly reduced. However, in a position where employees
can set their own hours, more autonomy esists. Recognition invloves being valued by others in
the company. An individuals contribution to the organization is noticed and appreciated.
Belonging refers to being part of the organization is one who shares the organizations values and
is regarded as being a valuable part of the firm. Progress and development refer to the internal
rewards available from the organization; challenge, and accomplishment. And, finally, external
rewards, which are usually in the form of salary and benefits but also include promotion, rank,
and status.


Taken together, these componets provide for the quality of work life for the individual. If the
quality of work life is lacking, then worker productivity may suffer.

Productivity is the quantity or volume of the major product or service that an organization
provides. In other words, it is the amount of work that is being produced in the organization, in
terms of how much and how well. High productivity is what makes an organization thrive.
Without a good product or service to sell, problems in an organization are sure to arise.
Accordingly, productivity improvement programs are becoming more popular with
organizations. Many components constitute the productivity factor; we can condense these
components into four categories-capital investment, innovation, learning, and motivation.

Capital investment includes having the best possible machinery available that will help improve
the efficiency of the workers. This machinery, or equipment, can be in many forms-from robots
to word processors. The concept behind capital investment is to provide the latest technologically
advanced equipment that will help the workers to work smarter, not harder.

Readiness for Change

If one thing is this world could be said that is always true, it would be that things will never
remain the same. Change is a fact of life-in both our private and our work lives. At the work site,
we must be aware that changes will occur. The change might be subtle, such as getting a new
boss. Or it might be a major endeavor, such as an organization installing a computer system for
the first time-automaging many of the manual operations. But change rarely comes easily for
everyone; in some cases, it is resisted. For example, imagine the fear that many secretaries
experience when confronted by an office automation endeavor in the organization, especialy the
secretary who has had twenty-five years experience. Going from a typewriter to a word
processor could be traumatic and, accordingly, that change could be resisted. How do you
overcome this resistance? There are a few ways, but probably the two greatest would be to
inform the secretary that the word processor was designed to make her job more efficient; it was
not designed to take over her job. The fear associated with a possible threat to job security could
negate any advantage that might accure by automating an office because this fear might manifest
itself as decreased morale.

The objective of HRM


Following objectives are important which can be discussed in short. With the fulfillments of
these objectives HRM can become successful:
1) To develop efficiency and skills of employees: First objective of HRM is to develop
efficiency and skills of employees working in the organization. If these objectives are
achieved organization can reach at its target.

2) To ensure effective g)erformance of employees: Effective performance of employees

can be ensured by HRM. Effective performance at all levels can help the organization to
obtain productivity target.

3) To Change the behavior of Employees: With a view to change behavior of employees

HRM activities can be performed. Behavior change can ensure to reduce resistance to

4) To Train up Subordinates: The fourth objective of HRM is to train up subordinates for

effective performance. There may be different methods of training employees.

5) To Increase Job Satisfaction: Job satisfaction is essential for proper performance and
goods LMR, therefore HRM tries to achieve Job Satisfaction level.

6) To Attract good people: Without attracting good people organization cannot run smoothly
or organization can"t cope with the competition. Therefore HRM wants to attract good
people for the organization.

7) To make effectiveness: To make all organization programs an effective,'HRM acts

restless. And for thus all policies are formulated accurately.

8) With a view to procure good veople: HRM determines its objectives, because without
good people organization cannot run.


9) For proper use of Human Resources: The organization can best try to give them proper
assignment and make sure that everything has been done timely.

10) Co-ordination among- different sections of the Organization: Co-ordination among

different sections of the Organization, HRM can set its objective and get objective

11) To develop working conditions in the organization: Another objective of HRM is

developing working conditions of the Organization. Because without these performance
quality and Target cannot be achieved.


Week: 02
Lecture No. : 02

Lecture Topic: Motivation of Human Resource

The Motivation Process
Need Theory
Maslows Hierarchy of Needs Theory


Motivation is a psychological characteristic that contributes to a persons degree of commitment.
It includes the facts that cause, channel and sustain human behaviour in a particular committed
direction. However, the term motivation has been defined by authors in amy ways. Some of the
definitions are as follows:
(i) Motivation may be defined as the state of an individuals perspective which represents
the strength of his or her propensity to exert effort toward some particular behaviour

(ii) Motivation refers to expenditure of effort toward a goal- Dubrin

Motivation is a predisposition to act in a specific goal directed manner Hellriegel
and Slocum
(iv)Motivation is a cyclical process affecting the inner needs or drives that energize,
channel, and maintain behaviour Steers and Lyman.
For our purpose, we shall define motivation as the need or drive within an individual that urges
him or her towards Goal-oriented action.

The Motivation Process

The motivation process may be represented by a diagram (see, figure 6.1) which begins with
inner drives and needs that motivate the individual to work towards begins with inner drives and
needs that motivate the individual to work towards certain goals, which the individual has chosen
in the belief that those goals will satisfy the inner drives and needs. After attaining these goals,
the individual consciously or unconsciously judges whether the effort has been worthwhile. As
long as the individual perceives the effort as rewarding, the habit of making the effort is
reinforced and the individual can be persuaded to continue or repeat that kind of effort.
Reinforcement, or what happens as a result of behaviour, affects other needs and drives as the
process is repeated.

Employee motivation is of crucial concern to management, mainly because of the role that
employee motivation plays in performance. Basically, performance is determined by (i) ability,
(ii) environment and (iii) motivation. If any of these three factors is missing or deficient,
effective performance is impossible. A manager may have the most highly qualified employees
under him and provide them with the best possible environment, but effective performance will
not result unless the subrodinates are motivated to perform.

Inner Drives,
Needs or Motives


Behaviour or




Motivators are things that induce an individual to perform. While motivation reflects wants,
motivators are the indentified rewards or incentives that sharpen the drive to satisfy these wants.

A manager can do much to sharpen motives by establishing an environment favourable to certain

drives. For example, employees in a business that has developed a reputation for excellence tend
to be motivated to contribute to this reputation.

A motivator, then, is something that influences an individuals behaviour. It makes a difference in

what a person will do. Obviously, in any enterprise, the manager must be concerned about
motivators and also inventive in their use. Also he has to use such motivators as will lead the
employees to perform effectively for their employing.

Motivation is the management process of influencing peoples behaviour based on the
knowledge of what cause and channel sustain human behaviour in a particular committed

Simply, the term motivation indicates a noun whereas motivating a verb. Motivation refers to
some relevant factors that influence human behaviour, whereas motivating is the process of
influencing behaviour.

Satisfaction is the end result of the need-want-satisfaction chain, which can be represented in the
following diagram.

Motivation and Satisfaction are related to each other, although there is a fine difference
between these two terms. Motivation refers to the drive and effort to satisfy a want or goal. But

satisfaction refers to the contentment experienced when a want is satisfied. In other words,
motivation implies a drive toward an outcome, and satisfaction is the outcome already

From the management point of view, then, a person might have high job satisfaction but a low
level of motivation for the job, or the reserve mitht be true.


give rise




which give
rise to





Need-Want-Satisfaction Chain

Need Theory
It may be stated that as the theory of motivation that addresses what people need or require to
live a life of fulfilment, particularly with regard to work. Need theory has a long-standing
tradition is motivation research. It deals with the part work plays in meeting the needs of those

According to need theory, a person is motivated when he or she has not yet attained certain levels
of satisfaction with his or her wife. A satisfied need is not a motivator.

There are various need theories of motivation. All of them focus on the importance of analysing
the psychological factors within individuals (i.e. needs) that cause people to behave in certain
ways. Behaviour is the result of attempts to satisfy those needs, and specific acts are based on the
particular need driving the individual at any time.

The most popular need theories of motivation are (i) Maslows Hierarchy of Needs Theory; (ii)
McClellands Needs Theory of Motivation and (iii) Herzbergs Two-factor Theory of Motivation.

Maslows Hierarchy of Needs Theory

One of the most widely mentioned theories of motivation is the Hierarchy of Needs Theory put
forward by psychologist Abraham Maslow. Maslow views human motivation in terms of a
hierarchy of five needs, ranging from the most basic physiological needs to the highest needs for
self-actualization (see figure 8-3) According to Maslow, individuals will be motivated to fulfil
whichever need is the most powerful for them at a given time. The prepotency of a need depents
on the individuals current situation and recent experiences. Starting with the physical needs,
which are the most basic, each need must be satisfied before the individual desires to satisfy a
need at the next higher level.
It is in the following hierarchy of importance accoring to immediacy that Maslow places human
(a) Physiological needs: These are the basic needs for sustainig human life itself, such as air,
water, food, sleep, shelter, warmth and sex. They are so basic as needs that people will be
motivated to fulfil them first through whatever behaviour achieves this end. Maslow took
the position that until these needs are satisfied to the degree necessary to maintain life,
other needs will not motivate people.
(b) Safety or security needs: They consist of the need for clothing, shelter, and an
environment with a predictable pattern such as job security, pension, insurance etc.
People are motivated to fulfil these needs only when the physiological needs are mostly
(c) Affiliation, acceptance, love or social needs: Since people are social beings, they need
to belong, to be accepted and loved by others.
(d) Esteem needs: They include the need for power, prestige, status, achievement, and
recognition from others. Satisfaction of the self-esteem need leads to feelings of selfconfidence, worth, capability, and adequacy, of being useful and necessary in the world.
(e) Need for self-actualisation: Maslow regards this as the highest need in his hierarchy.
This is the concept of fulfilling ones potential and becoming everything one is capable
of becoming.


for self

Esteem needs

Affiliation, acceptance or

Maslows Hierarchy of Needs

social needs

McClellands Need Theory of Motivation

Security or safety needs

Divid C. McClelland has indentified three types of basic motivating needs as (a) need for power,
(b) need or affiliation, and (c) need for achievement. They are all relevant to management and
must be recognised to make an organised enterprise work well.
Physiological needs

Need for power: It deals with the degree of control a person desires over his or her situation.
This need can be related to how people deal with failure and success. Fear of failure and an
erosion of ones power can be a strong motivator for some people. Individuals with the need for
power usually seek positions of leadership in organisations, are outspoken, often argumentative,
forceful, hardheaded and demanding, and they enjoy being in positions that require persuasive
speaking or travelling and seek positions in organisations that control the means of influencing
others. Research studies indicate that top managers are highly motivated by the need for power.

Need for affiliation: Many people spend much of their time thinking about developing warm,
friendly, personal relationships with others in the organisation. They have a high need for
affiliation and usually are more sensitive to others feelings, seek for jobs with a pleasant social
environment that is conductive to personal interaction. Research studies indicate that concern for


the feelings of subordinates is essential for outstanding management success and executive

Need for achievement: David C. McClellands research indicated that a strong need for
achievement the drive to succed or excel is related to how well individuals are motivated to
perform their tasks. People with a high need for achievement like to take responsibility for
solving problems. They tend to set moderately difficult goals for themselves and take calculated
risks to meet those goals. They greatly value feedback on how well they are doing. Thus those
with high achievement needs tend to be highly motivated by challanging and competitive work
situations; people with low achievement needs tend to perform poorly in the same sort of

There is ample evidence of the correlation between high achievement needs and high
performance. McClelland finds, for example, that people who succeed in competitive
occupations are well above average in achievement motivation. Successful managers who
presumably operate in one of the most competitive of all environments have a higher
achievement need than other professionals.


The Two-Factor (Motivation-Hygiene) Theory of Motivation

Maslows needs approach has been considerably modified by Fredrick Herzberg and his
associates. In the late 1950s, Frederck Herzberg and his associates conducted a study of the job
attitudes of 200 accountants and engineers in Pittsburg. During the interviews, he asked them to
recall occasions when they had been especially satisfied with their work and highly motivated in
occasions when they had been dissatisfied and unmotivated. Somewhat surprisingly, he found
that entirely different sets of facts were associated with satisfaction and dissatisfaction.
Herzberg placed responses from the engineers and accountants interviewed in one of 16
categories-the factors on the right side of the figure were consistently related to job satisfaction
and those on the left side to job dissatisfiers and satisfiers) emerged. Satisfiers (Motivating
factors), as recognised by Herzberg, include factors like achievement, recognition, work itself,
responsibility, advancement and growth all related to job content and rewards for performance.
Dissatisfiers (which Herzberg terms Hygiene factors) include company policy and
administration, supervision, relationship with supervisors, work subordinates, status and security
most of which are related to the work environment and the rest to disturbed personal life.
Positive ratings for these factors did not lead to job satisfaction but marely to the absence of
It is to be noted that the motivating factors are related specifically to the work content and the
hygiene factors are related to the work environment.
Herzbergs study led him to conclude that the traditional model of job satisfaction was
incomplete. The traditional view of satisfaction, as shown in figure-8-4, was that satisfaction and
dissatisfaction were at opposite ends of a coninuum i.e. employees might be satisfied,
dissatisfied, or somewhere in between. But Herzbergs researh identified two different sets of
factors one ranging from satisfaction to no satisfaction and the other ranging from
Herzberg then argues that there are two stages in the process of motivating employees.
First, manager must see that the hygiene factors are provided at an appropriate level so that the
employees become not dissatisfied.


Second, the manager should give employees the opportunity to experience motivation factors
such as achievement and recognition, and result is predicted to be a high level of satisfaction and
motivation. Herzberg also demonstrated the way of using the two-factor theory. He recommends
that jobs be redesigned to provide higher levels of the motivation factors.
The Traditional View



The Satisfaction-Dissatisfaction Continuum under the Traditional View

and the Two-Factor Model

Means of Motivation
Experience suggests that some specialised teachniques to motivate can be used as follows:
(1) Management by Objective (MBO) and goal setting: MBO is a process of
collaborative goal-setting between a manager and a subordinate with the understanding
that the degree of goal attainment by the subordinate will be a major factor in evaluating
and rewarding the subordinates performance. When the manager sits with the
subordinates, jointly establishes goal for them and agree that the future rewards will be
No Satisfaction
on goal attainment then he or she is expected
to be more motivated to work toward
the goals that merit them.
(2) Participation in management: Subordinates are likely to be motivated the most when
they are not only consulted but are also allowed to participate in decision-making. In fact
the right kind of participation yield both motivation and knowledge valuable for
No Dissatisfaction
Participation appeals to the need for affiliation and acceptance. It is a means of
recognition and thus enhances subordinates eagerness to work harder.


(3) Monetary incentives: Money can never be overlooked as a motivator. Whether in the
form of bonuses, piecework, or any other incentive pay, money is important. And, as
some writers have pointed out, money is often more than monetary value. It can also
mean power or status.
In order to use money as a motivator, a manager has to remember the following:
(i) Money is an urgent means of achieving a minimum standard of living, although this
minimum has a way of getting higher as people become more affuent.
(ii) An enterprise can make its wages and salaries competitive within their industry and their
geographic area to attract and hold people.
People usually evaluate their compensation in the light of what their equals are
(iv)Unless bonuses for managers are based to a major extent on individual perforamnce, an
enterprise is not buying much motivation with them. It so fas as possible,
compensation has to be based on performance.
(v) Money can motivate only when the prospective payment is large relative to a persons
(1) Modified work week/flexible working hours: There is considerable interest among
employees in altering the workweek to suit their convenience better. The primary
motivational implications of the modified workweek are that modification in their
routtive helps them satisfy their higher-level needs and provides them with an
opportunity to fulfil several of their needs simultaneouslys.
By allowing employees more independence in terms of when they come to work and
when they leave, managers acknowledge and show esteem for the employees ability
to exercise self-control. It is hoped that employees will respond with higher levels of
motivation. Modified workweeks give employees the opportunity to fulfil a variety of
needs. Using flexible working hours, a person can contribute to the organization and still
have time, for example, to study for the MBA programme of BOU or to carry on
business as a part-time occupation.

(2) Quality of working life (QWL): This is an important motivational technique, used by
managers in western societies. QWL is not only a very broad approach to job enrichment
but also an interdisciplinary field of enquiry and action combining industrial relations,
industrial engineering, industrial psychology and sociology, organisation theory and
development, leadership theory and motivation, etc.


Managers have regarded QWL as a promising means of dealing with stagnating

productivity. Workers and trade union leaders have also seen it is as a justifying higher
pay. It may also help minimising labour disputes and obtaining industrial democracy.

(3) Effective criticism: This can be a springboard for improving an employees behaviour
and performance. Adopting a positive approach makes criticism less difficult as well as
more effective. The manager should examine his or her own motives before criticising.
The manager should plan the presentation of his criticism in the best possible form with
a view to motivating rather than rebuking him or her. Criticism should apply to the use
of personal efforts for improvement now, not next week or next month. Specific time
schedules for improvements are also to be set up.
(4) Job enrichment: Making jobs challenging and meaningful is an accepted way of
motivating employees greatly. In job enrighment, the attempt is to build into jobs a
higher sense of challenge and achievement. Job may be enriched by variety. But they
also may be enriched by (a) giving workers more freedom at workplace; (b) giving
subordinates a feeling of personal responsibility for their tasks; (c) encouraging
participation of workers and interaction between them; (d) giving subordinates feedback
on their job performance; and (e) involving workers in the analysis and hange of
physical aspects of the work environment, such as cleanliness, layout, temperature,
lighting, etc.
There is no denying the fact that individuals involved in an organization have needs and
objective that are specially important to them. By leading them, managers help threre see
that they can satisfy their own needs, utilise their potential at the same time contribute to
the aims of an enterprise. Managers should thus have an understanding of the roles
assured by people, the individualy of people and the personality of people. However the
aspects of human factor are important and deserves a managers careful attention.

Week: 03

Lecture No. : 03

Lecture Topic: Human Resource Planning

Definition of Human Resource, Manpower, Planning
How to Define Human Resource Planning
Definition of Human Resource Planning as defined by the thinkers




To start with I like to quote, the major force behind world investment is ........ human
resources (Drucker 1995: 39). It is generally accepted that manpower constitutes the most
effective and economical way of fulfilling resources to achieve the desired goal. It is also seen
that induction of technology and mechanization have not replaced human beings, rather it has
put greater demand on their quality, skill and dedication.
The manpower resource is the most vital factor for the survival and prosperity of a firm.
Though all the firms buy the same material and machines, the people in a firm make the
difference in the final product. So the success of any organization depends mainly upon
the quality of its manpower and their performance. Any forward looking management
will be concerned with the problem of procuring or developing adequate talent for
manning various positions in the organization. The success of a manpower planning
process not only help the organization itself, but also helps the societys prosperity. The
losses of a firm suffers from inadequate manpower planning and its utilization, is a loss to
the nation. When these individual losses are added up the total losses may be very
significant to the economy of a nation.


Definition of the Terms:


In order to understand Humn Resource Planning, let us study the two terms, Manpower
and Planning independently and then in relation to each other.

Human Resource:
Now a days the term Human Resource is presently used in place of manpower
was a very popular term during World War II, then apparently passed out of
widespread usage, and reappeared about 1960. The term has many different
meanings today and has once again become quite popular.
Generally speaking, Manpower is a macro-concept referring to an aggregate
of categories of skilled personnel; distinct and separate categories of manpower
and identifiable on the basis of the level and type of their skills; and these skills
are generated by means of education and training, both within the formal
education system and outside it.
In current popular usage, the terms manpower, labour, labour force, work
force and human resources are all being employed though they are
conceptually identical or as mere variants in expression; however, no harm could
possibly be done by indiscriminate use of these terms to theory and analysis,
provided their specific, distinct and separate meaning are identified and kept in
mind constantly.
Sometimes the word manpower is equivalent to the term labour when labour is
understood to be a factor of production in the basic framework of analysis used by
economists. In this very broad sense manpower can also be understood to mean
generically personnel or employees. Actually these usages of the term are
virtually identical; the differences are less in substance than in point of view, one
being that of the labour economist and the other that of the personnel.

Looked at in still another manner, manpower can mean the total quantitative and
qualitative human assets or people in a society. In this sense we are literally
interpreting the word to mean the power of man, both in terms of the size of the
population and the talents and educational levels in that population. Population
can be said to determine the quantity, and education combined with experience,

the quality, of manpower. During World War II, when there was a War Manpower
Commission, manpower seemed to have the latter connotations.
However, it is conceptually invalid to equate labour with Manpower.
Similarly the term human resources is also not identical with Manpower since
it is more generic including both skilled and unskilled categories of workers.
Further manpower is also different from the term labour force used in surveys
of employment and unemployment. Because labour force constitutes workers
and unemployed. Finally the term work Force denotes but component of labour
force that is engaged in gainful activity.

Manpower thus denotes definite and specific categories which are in theory:
(1) non-homogeneous and are therefore,
(2) non-substitutable.
To take a typical example: A doctor (from the category of medical manpower) is
non-substitutable from an engineer (from the category of engineering manpower).
However, within each category it is possible to substitute one unit for another,
provided the second has skills identical with those of the first.



Planning is deciding in advance: It bridges the gap between where we are to

where we want to go. Planning involves the ability to think, to analyze and to
search decision or alternatives.

In general, a plan of any type may be defined as a predetermined course of action.

Every plan should have three characteristics.

First, it should involve the future;


Second, it must involve action; and



Third, there should be an element of personal or organizational

identification or causation, which means simply that the future course of
action will be taken by the planner, or someone designated by him within
an organization or within society.

Essentially then, planning is:


a process of thinking ahead,

a method for anticipating difficulties and seeking, through reasoned action
based upon foreknowledge,
to guide the course of events toward desired goals. By this means,
planning approaches the future with the aid of systematic analysis in order
to minimize surprise and uncertainty and to eliminate mistakes and waste.

How to Define Human Resource Planning:

Human Resource Planning may be defined in the narrow sense as the
replacement planning which encompasses the analysis of labour turnover, recruitment
policies, developing models for planning, transfers and promotion of employees, etc.

Human Resource Planning may be regarded as the quantitative and
qualitative measurement of labour force required in an organization and planning in relation
to manpower. It may be regarded as establishing objectives to develop human resources in
line with broad objectives of the organization.


Human Resource Planning may be expressed as a process by which the

organization ensures the right number of people, right kind of people, at
the right place, at the right time doing the right things for the achievement
of goals of the organization.



Human Resource Planning is the process of developing and determining

objectives; policies and programmes that will develop utilize and
distribute manpower so as to achieve the goals of the organization.

Definition of Human Resource Planning as defined by the thinkers




Velter Eric. W. has said that Human Resource Planning or manpower

planning is the process by which management determines how an
organization should move from its current manpower position to its
desired manpower position. Through planning, management strives to
have the right number and the right kind of people at the right place, at the
right time, to do things which result in, both, the organization and the
individual receiving the maximum long-range benefit.
Coleman has defined human resource planning or manpower planning as
the process of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated plan of the
Stainer defines manpower planning as Strategy for the acquisition,
utilization, improvement, and preservation of an enterprises human
resources. It relates to establishing job specification or the quantitative
requirements of jobs determining the number of personnel required and
developing source of manpower.

According to Gordon McBeath, manpower planning involves two stages. The first stage is
concerned with the detailed planning of manpower requirements for all types and levels of
employees throughout the period of the plan, and the second state is concerned with
planning of manpower supplies to provide the organization with the right types of people
from all sources to meet the planned requirements.


Factors Affecting Human Resource Planning

HRP is influenced by several considerations. The more important of them are:

type and strategy of organization


environmental uncertainties


time horizons


type and quality of forecasting information


nature of jobs being filled and


off-loading the work.

(a) Type and Strategy of Organization:

The type of organization is an important consideration because it determines the
production processes involved, number and type of staff needed and the
supervisory and managerial personnel required. Manufacturing organizations are
more complex than those that render services in this respect.
The strategic plan of the organization defines the organizations human resource
needs. For example, a strategy of internal growth means that additional employees
must be hired. Acquisitions or layoffs, since mergers tend to create duplicate or
overlapping positions that can be handled more efficiently with fewer employees.

(b) Environmental Uncertainties:

HR managers rarely have the privilege of operating in a stable and predictable
environment. Political, social and economic changes affect all organizations.
Personnel planners deal with environmental uncertainties by carefully formulating
recruitment, selection, training and development policies and programmes.
Balancing mechanisms are built into the HRM programme through succession
planning, promotion channels, layoff, flexi time, job sharing, retirement and other
personnel related arrangements.



Time Horizons:
Yet another major factor affecting personnel planning is the time horizon. On the
one hand there are short-term plans spanning six months to one year. On the other,
there are long-term plans spread over three to twenty years. The exact time span,
however, depends on the degree of uncertainty prevailing in an organizations
environment. For companies operating in an unstable environment, computers for
example, plans must be for a short period. For others where environment is fairly
stable, for example a university plan may be. In general, the greater the
uncertainty, the shorter the plans time horizon and vice versa.

(d) Type and Quality of Information:

The information used to forecast personnel needs originates from a multitude of
sources. A major issue in personnel planning is the type of information, which
should be used in making forecasts.

Closely related to the type of information is the quality of data used. The quality
and accuracy of information depend upon the clarity with which the
organizational decision makers have defined their strategy, organization
structure, budgets, production schedules and so forth. In addition, the HR
department must maintain well-developed job-analysis information and human
resource information systems that provide accurate and timely data. Generally
speaking, organizations operating in stable environments are in a better position to
obtain higher-quality (comprehensive, timely and accurate) information because
of longer planning horizons, clearer definition of strategy and objectives, and
fewer disruptions.

(e) Nature of Jobs being Filled:

Personnel planners must consider the nature of jobs being filled in the
organization. Job vacancies arise because of separations, promotions and
expansion strategies.


It is easy to employ shop-floor workers but a lot of sourcing is necessary for

hiring managerial personnel. It is, therefore, necessary for the personnel
department to anticipate vacancies, as far in advance as possible, to provide
sufficient lead time to ensure that suitable candidates are recruited.


Off Loading the Job:

Several organizations off-load part of their work to outside parties either in the form
of sub-contracting or ancillarisation. Off-loading is a regular feature both in the public sector as
well as in the private sector. Most organizations have surplus labor and they do not want to
worsen the problem by hiring more people. Hence, the need for off-loading. Some organizations
are known to carry the concept of off-loading to ridiculous lengths and in the process, the regular
employees sit idle. Kickbacks from owners of ancillary units are the cause for such
ancillarisation HRP is rarely required in such circumstances.

Week: 04

Lecture No. : 04

Lecture Topic: Human Resource Planning Methods

Four methods of Human Resource Planning
Steps of Human Resource Planning


The four methods generally used to determine the requirements of personnel are:

annual estimate of vacancies;


long-range estimates of vacancies;


fixed minimum man specification requirements,


specific position estimations.

Annually the top management team and the directors must examine their organization
structure and its adequacy for the assigned functions as well as its adaptability for
changes anticipated in the near future. This analysis or audit includes a review of the
current vacancies and probable future changes in the organizations personnel.

For example, adequate forecasts of organizational changes can indicate the number of
executive positions, which will have to be filled as well as the duties and responsibilities
for such positions. From this can be ascertained the nature of training and development
required for the existing staff to fit these positions adequately. A crystallization of the job
requirements can help selection of persons who should participate in the management
development programme. In this way, manpower planning is helpful in both the selection
and developmental activities. It ensures that adequate persons are selected well in

advance so that they may be developed for the anticipated position openings to ensure a
smooth growth for the organization.

Steps of Manpower Planning:

The need to anticipate and provide for future manpower requirements has made
manpower planning a vital function today in the area of staffing or the personnel
function. In large organizations, where a personnel department exists, this function is
naturally performed by such department as a staff function. Systematic manpower
planning has not yet become really popular even in advanced countries such as USA and
UK, being practised there only by a few huge companies in large-scale industries such as
petroleum and chemicals.

Manpower planning can basically be done by observing the following three steps:


Setp-1: Determine the Forecasting Period & Manpower Required:

Determine the period for forecasting requirements of manpower in the future (i.e.,
requirements at the end of the first year, second year, third year, fourth year, fifth
year, etc.) and forecast the manpower required at the end of such period.


Step-2: Find out the Surplus or Shortage in Manpower

From the number available at the commencement of the period, deduct the
expected wastage through deaths, resignations, retirements and discharges. This
would give the manpower available from existing staff at the end of the period
concerned. A comparison of the figures arrived at the in steps first and second,
would indicate shortages or surpluses in manpower requirements.


Step-3: Decide the action on surplus or shortage:



In case of shortages, decide how such shortages are to be met (i.e.,

whether through fresh recruitment and/or promotions from within) and
whether any training or developmental facilities would be required for this


If surpluses are anticipated, decide how these surpluses will be dealt with
like through early retirements, discharges, or lay offs.

Manpower planning thus seeks to ensure that the required personnel possessing the
necessary skills are available at the right time. As Dr. Ram Tarneja emphasizes,
Management can ensure control of labour costs by avoiding both shortages and
surpluses of manpower through proper manpower planning. He stresses that underestimation either regarding quality or quantity of manpower requirements would lead to
shortfalls of performance, whilst over-estimation would result in avoidable costs to the
organization. Whilst agreeing that it is necessary to project deep into the future for skills
which would require longer periods of training, he warns that if the periods selected are
too long, manpower forecasts are likely to be less accurate in view of the inability to
predict effectively the likely changes in the economic, social and technological spheres.

With this caution in mind, forecasts can be made for a short-term upto two years, mediumterm for periods of 3-5 years and long term for periods longer than 5 years. However, a
reasonable degree of accuracy can only be expected in case of short-term forecasts upto 2
years. Even such forecast should be periodically reviewed and readjusted.


The following are briefly the three major stages of the planning process aimed at
translating the general objectives into a plan of action:



Step-1: Integration of Human Resource Planning into the

Financial Planning:
Once the business objectives have been determined, planning of manpower
resources has to be fully integrated into the financial planning. It becomes
necessary to determine how the human resources can be organized to achieve
these objectives. For this purpose, a detailed organization chart is drawn and the
management of the company tries to determine how many people, at what
level, at what positions and with what kind of experience and training would
be required to meet the business objectives during the planning period. The
management of this company considers a time span of five years as an optimum
period for this purpose. It stresses that specific and standard occupational
nomenclature must be used without which it would not be possible to build a
firm-cum-industry-wise manpower resources planning. It suggests the adoption
for this purpose of the international coding of occupations. For a sound manpower
planning it considers as a prerequisite the preparation of a manual of job
classification and job description with specific reference to individual jobs to be


Step-2: Systematic Review of Internal Resources:

The next step consists of an audit of the internal resources. A systematic review of
the internal resources would indicate persons within the organization who possess
different or higher levels of responsibilities. Thus it becomes necessary to
integrate into the manpower planning process a sound system of performance
appraisal as well as appraisal of potential of existing employees.


Step-3: Formulation of the Recruitment Plan:

The third stage in the planning process gets down to the formulation of the
Recruitment Plan. A detailed survey of the internal manpower resources can
ultimately lead to an assessment of the deficit or surplus of personnel for the
different levels during the planned period. Whilst arriving at the final figures, it is
necessary to take into account the actual retirements and estimated loss due to

death, ill health and turnover, based on past experience and future outlook in
relation to companys expansion and future growth patterns.

Whilst in the above planning process a time span of five years has been suggested, it
must be remembered that this planning exercise must be repeated annually for the next
five years. This is because uncertain factors can affect the growth patterns of business
houses and annual reviews can help incorporate the modifications found desirable.
In the final analysis, the overall responsibility for manpower planning must lie squarely
on the Board of Directors. This is because Board members are in a position to direct the
future course of business, set appropriate goals for management concerned in the formulation
of personnel policy. Besides, senior management and management at other levels are also
involved in this process as they supply adequate data regarding their manpower requirements.
The personnel departments function is to recommend relevant personnel policies in respect
of manpower planning, devise methods and procedures for determination of quantitative
aspects of manpower planning.

The company uses the instrument called management review as a method of

forecasting. This is prepared every year for the next five years and is very similar to the
cash forecast undertaken in an organization. Its objective is to evaluate in terms of
managers the needs of our business which will arise out of expansion, new products, new
projects and various organizational changes. These needs are then equated with the
resources likely to be generated through promotions from staff to
management, the losses that are likely to occur through retirements and losses through
the External Environment
separations. Ultimately, the net requirements of the company
are indicated. a.This
exercise is &considered
necessary to confine the forecasting to the
Specific Industry
genuine needs b.
the company. It makes it possible to provide well in advance for people
retiring or for filling new vacancies, which might arise. Replacements of retiring
c. Competition
personnel must be thought of years ahead.
d. Labour Market

A model of Humane. Demography

Social Trend
f. Government Regulations

From Inside the Organization

a. Strategy
b. Business Plan

c. Current Human Resources

d. Rates of Turnover and mobility






Forecast Demand for Human Resources


Short and Long Term


Aggregate or Individual Position

Forecast Supply of Human Resources


Internal Supply


External Supply

Plan and Conduct Need Program


Increase or Reduce Work force size


Change Skill Mix


Develop Managerial Succession Plans

Feedback in the Planning Process


Were the forecasts accurate


Did the programs meet the need


As Human Resource Planning is concerned with the optimum use of human resources, it
can be of great benefit at both the national and the company unit levels. At the national level,
it would be concerned with factors such as the population, economic development provision
of facilities for education and geographical mobility and would be the governments
responsibility. Human Resource Planning studies can even be undertaken at the trade
associations level for particular industry.
Human Resource Planning is a neglected area in our context. Only a handful of companies
indulge in this practice. Such companies however do report that it helps them in many ways.
Firstly, forecasting of long-term manpower requirements helps them also to forecast the
compensation costs involved. Besides, by anticipating manpower needs, they have an
opportunity for developing existing manpower to fill the future openings through promotion.
They report that this attitude of encouraging existing employees creates a very favorable
psychological climate for their motivation. Manpower planning also enables, through
performance appraisals in the manpower management cycle, determination of the
weaknesses of the existing manpower so that corrective training could be incorporated. Thus
their training program becomes more effective. Better developed manpower results are a
relative reduction in manpower costs. Particularly in the area of management succession,
manpower planning makes a very useful contribution. Although there is unemployment in
our country, persons with the requisite skills and particularly managerial skills is still in
short supply. It is thus the job of management of good companies to develop such skills in
their employees showing potential. This can be only done through adequate manpower
planning which makes it possible to plan the career of employees having the necessary

Week: 05
Lecture No. : 05

Lecture Topic: Job Analysis

Job Analysis
Task, Duty
Position, Job family
Occupation, Career
Methods of Job Analysis

Job Analysis:
Job Analysis is a systematic exploration of the activities within a job. It is a technical procedure
used to define the duties, responsibilities, and accountabilities of a job. This analysis involves
the identification and description of what is happening on the job . . . accurately and precisely
identifying the required tasks, the knowledge, and the skills necessary for performing them, and
the conditions under which they must be performed.
In fewer words, we can say that a job analysis indicates what activities and accountabilities the
job entails. There is no mystery to a job analysis; it is just an accurate recording of the activities
In recording these activities, we are simply gathering information. And while every job is
multifaceted, we must confine our information gathering to specific job attributes. What are these
attributes? Figure 1.1 depicts the hierarchy of information that the job analysis seeks. Let us take
a moment to define our terms. We begin with the smallest segment of information, which we call
an element. A job element is the smallest unit into which work can be divided. Putting the tomato
on a hamburger is an example of an element in the job of a fry cook at McDonalds.

Elements: Elements are the factor or components to be selected for analyzing jobs.


A task is a distinct work activity carried out for a distinct purpose. Examples would
include typing a letter, preparing a lecture, or unloading a mail truck.

A duty is a number of tasks. Counseling students is a duty of a college instructor. A
general accounting clerks duties might include preparing the monthly income statement and
distributing the weekly payroll checks.

A position refers to one or more duties performed by one person in an organization. There
are at least as many positions as there are workers in the organization; vacancies may create
more positions than employees. Examples of positions include Supervisor Grade IV; Accounts
Payable Clerk I; and Assistant Professor, Level 2.

A job is a type of position within the organization. If a large insurance company employs
sixty life insurance actuary job.

Job family
A job family is a group of two or more jobs that either call for similar worker
characteristics or contain parallel work tasks as determined by job analysis. At the previously
mentioned insurance company, service clerks and policy correspondents represent two jobs that
frequently are placed in a common job family because they have many similar worker

An occupation is a group of similar jobs found across organizations. Electrician,
accountant, and service maintenance engineer are examples of occupations.

A career represents a sequence of positions, jobs, or occupations that a person has over
his or her working life.

Why is it important to know the terms defined above? As we will show, job analysis begins at the
level of the element and attempts to build understanding of jobs, occupations, and careers as
components are combined. In other words, the previous definitions should help you to see how
jobs evolve and develop.

Armed with this conceptual framework, let us now look at how to conduct the job analysis. The
next section will explore the more widely used job analysis techniques.










Fig: Exhibit 1.1 Hierarchy of Job Analysis

Methods of Job Analysis:

The basic methods that HRM can use to determine job elements and the essential knowledge,
skills, and abilities for successful performance include the following:

Observation Method. Using the observation method, a job analyst watches employees directly
or reviews films of workers on the job. Although the observation method provides firsthand
information, workers often do not function most efficiently when they are being watched, and
thus distortions in the job analysis can occur. This method also requires that the entire range of
activities be observable. This is possible with some jobs, but impossible for many-for example,
most managerial jobs.

Individual Interview Method. Using the individual interview method, a team of job incumbents
is selected and extensively interviewed. The result of these interviews are combined into a single
job analysis. This method is effective for assessing what a job entails, and involving employees
in the job analysis in essential.

Group Interview Method. The group interview method is similar to the individual interview
method except that a number of job incumbents are interviewed simultaneously. Accuracy is
increased in assessing jobs, but group dynamics may hinder its effectiveness.

Structured Questionnaire Method. Under the structured questionnaire method, workers are
sent a specifically designed questionnaire on which they check or rate items they perform on
their job form a long list of possible task items. This technique is excellent for gathering

information about jobs. However, exceptions to a job may be overlooked, and there is often no
opportunity to ask follow-up questions or to clarify the information received.
Technical Conference Method. The technical conference method uses supervisors with
extensive knowledge of the job. Here, specific job characteristics are obtained from the
experts. Although a good data-gathering method, it often overlooks the incumbent workers
perceptions about what they do on their job.

Diary Method. The diary method requires job incumbents to record their daily activities. The
diary method is the most time consuming of the job analysis methods and may have to extend
over long periods of time-all adding to its cost.

These six methods are not meant to be viewed as mutually exclusive; no one method is
universally superior. Even obtaining job information from the incumbents can be create a
problem, especially if these individuals describe what they think they should be doing rather
than what they actually do. The best results, then, are usually achieved with some
combination of methods-with information provided by individual employees, their
immediate supervisors, a professional analyst or an unobtrusive source such as filmed
observations. In the next section, well explore a means of conducting the job analysis.

Steps for conducting the job Analysis

There are several steps involved in conducting the job analysis. Lets look at how this is done
(Exhibit 1.2)

Understand the purpose of Conducting the job Analysis: Before embarking on a job analysis.
One must understand the nature and purpose of conducting the investigation. Recognize that job
analysis serve a vital purpose in such HRM activities as recruiting, training, setting performance
standards, evaluating performance, and compensation. In fact, nearly every activity in HRM
revolves around the job analysis.
Understand the Role of Jobs and Values in the Organization: Every job in the organization should
have a purpose. Before conducting the job analysis, one must understand the linkage that the job
has to the strategic direction of the organization. In essence, one must answer why the job is
needed, If an answer cannot be determined, then may be the job is not needed.

Benchmark Positions : In a large organization, it would be impossible to evaluate every job

at one time. Accordingly, by involving employees and seeking their input, selected jobs can be
chosen based on how well they represent other, similar jobs in the organization. This
information, then, will be used as a starting point in later analysis of the other positions.

Determine How You Want to Collect he Job Analysis Information: Proper planning at this
stage permits one to collect the data desired in the most effective and efficient manner. This
means developing a process for collecting the data. Several combined methods like structured
questionnaires, group interviews, and technical conferences should be used. Select the ones,
however, the best meet your job analysis goals and timetables.

Seek Clarification, Wherever Necessary : Some of the information collected may be entirely
understood by the job analyst. Accordingly, when this occurs, one must seek clarification from
those who possess the critical information. This may include the employee and the supervisor.
Failure to understand ad comprehend the information will make the next step in the job analysis
process writing the job description more difficult.

Develop the First Draft of the Job Description : Although there is no specific format that all
job descriptions follow, most include certain elements. Specifically, a job description contains the
job title, a summary sentence of the jobs main activities, the level of authority and
accountability of the position, performance requirements, and working conditions. The last

paragraph of the job description typically includes the job specifications, or those personal
characteristics the job incumbent should possess to be successful on the job.

Review Draft with the Job Supervisor : Ultimately, the supervisor of the position being
analyzed should approve the job description. Review comments from the supervisor can assist in
determining a final job description document. When the description is an accurate reflection, the
supervisor should sign off, or approve the document.

Understand the
purpose of the job
draft with

Understand the
role of job in the


Determine how to
collect job

Fig: Exhibit 1.2 Steps for Job Analysis


Purpose of Job Analysis

No matter what method is used to gather data, the information amassed and written down form
the job analysis process generates three outcomes: job descriptions, job specifications, and job
evaluation. It is important to note that these are the tangible products of the work not the job
analysis, which is the conceptual, analytical process or action from which we develop these
outcomes. Lets look at them more closely.

Job Descriptions: A job description is a written statement of what the jobholder does, how it
is done, under what conditions it is done, and why it is done. It should accurately portray job
content, environment, and conditions of employment. A common format for a job description
includes the job title, the duties to be performed, the distinguishing characteristics of the job,
environmental conditions, and the authority and responsibilities of the jobholder. An example of
a job description for a faculty member in a college of Business is provided in Exhibit 1.3.
When we discuss employee recruitment, selection, and performance appraisal, we will find that
the description acts as an important resource for: (1) describing the job (either verbally by
recruiters and interviewers or in written advertisements) to potential candidates; (2) guiding
newly hired employees in what they are specifically expected to do; and (3) providing a point of
comparison in appraising whether the actual activities of a job incumbent align with the stated
duties. Furthermore, under the Americans with Disabilities Act, job descriptions have taken on an
added emphasis in identifying essential job functions.

Job Specifications : The job specification states the minimum acceptable qualifications that
the incumbent must possess to perform the job successfully. Based on the information acquired
through job analysis, the job specification identifies the knowledge, skills, education, experience,
certification, and abilities needed to do the job effectively. Individuals possessing the personal
characteristics identified in the job specification should perform the job more effectively than
those lacking these personal characteristics. The job specification, therefore, is a important tool
in the selection process, for it keeps the selectors attention on the list of qualifications necessary
for an incumbent to perform the job and assists in determining whether candidates are essentially


Job Evaluations: In addition to providing data for job descriptions and specifications, job
analysis is also valuable in providing the information that makes comparison of jobs possible. If
an organization is to have an equitable compensation program, jobs that have similar demands in
terms of skills, knowledge, and abilities should be placed in common compensation groups. Job
evaluation contributes towards that end by specifying the relative value of each job in the
organization. Job evaluation, therefore, is an important part of compensation administration, as
will be discussed in detail in Chapter 11. In the meantime, you should keep in mind that job
evaluation is made possible by the data generated from job analysis.


Job Description

Faculty Member, College of Business

Job Title: Faculty Member

Occupational Code No.4554

Reports to: Department Chairperson

Job No. 078

Supervises: None

Date: 4/14/98

Environmental Conditions: None

Functions: Teach one or more subjects within a prescribed
business and economics curriculum

Duties and Responsibilities:

Prepare and deliver outside reading assignments.

Stimulate class discussion.

Compile, administer, and grade examinations or assign this

work to others.

Direct research for others working for advanced degree.

Conduct research in particular field of knowledge and publish

findings in professional journals.

Perform related duties, such as advising students on academic

Job Specifications

and vocational curricula.

Serve on faculty committees.

Provide professional consulting to government and industry.

Other duties as assigned by department head.

Job Characteristics: Understanding of instructional methods for

traditional and nontraditional students; excellent communication
skills; and skilled operation of a personal computer, using word
processing, spreadsheet, database management, and statistical

Fig: Exhibit 1.3 Example of Job Description & Job Specification


Multifaceted Nature of the Job Analysis

One of the overriding questions about job analysis is : Are they being conducted properly, if at
all? The answer to this question varies, depending on the organization. Generally, most
organizations do conduct some type of job analysis. This job analysis extends further, however,
than meeting the federal equal employment opportunity requirement. Almost everything that
HRM does is directly related to the job analysis process (see Exhibit 1.4). Recruiting, selection,
compensation, and performance-appraising activities are most frequently cited as being directly
affected by the job analysis. But there are others. Employee training and career development are
assisted by the job analysis process by identifying necessary skills, knowledge, and abilities.
Where deficiencies exist, training and development efforts can be used. Similar effects can also
be witnessed in determining safety and health requirements, and labor relations process, if a
union exists. Accordingly, this often lengthy and complex job analysis process cannot be

Labor relations


job analysis

Safety and

Strategic human
job description



resource planning

Employee training




Fig: Exhibit 1.4

We cannot overemphasize the importance of job analysis, as it permeates most of the

organizations activities. If an organization doesnt do its job analysis well, it probably doesnt
perform many of its human resource activities, they employees in the organization understand
human resource activities, they should understand the fundamental importance of job analysis.
The job analysis, then, is the starting point of sound human resource management. Without
knowing what the job entails, the material covered in the following chapters may be merely an
effort in futility.


Week: 06
Lecture No. : 06

Lecture Topic: Recruitment

Definition of Recruitment
Sources of Recruiting
The Internal Search
The External Searches

Definition of Recruitment:
Recruiting is the process of discovering potential candidates for actual or anticipated
organizational vacancies. Or from another perspective, it is a linking activity bringing together
those with jobs to fill and those seeking jobs.

Sources of Recruiting:
Certain recruiting sources are more effective than others for filling certain types of jobs. As we
review each source in the following sections the strengths and weaknesses in attempting to
attract lower-level and managerial level personnel will be emphasized.

The Internal Search : Many large organizations will attempt to develop their own employees
for positions beyond the lowest level. These can occur through an Internal search of current
employees, who have either bid for the job, been identified through the organizations human
resource management system, or even been referred by a fellow employee. The advantages of
such searches a promote from within wherever possible policy are that
(1) It is good public relations.
(2) It builds morale.

(3) It encourages good individuals who are ambitious.

(4) It improves the probability of a good selection, since information on the individuals
performance is readily available.
(5) It is less costly than going outside to recruit.
(6) Those chosen internally already know the organization.
(7) When carefully planned, promoting from within can also act as a training device for
developing middle and top level managers.
There can be distinct disadvantages, however, to using internal sources. It can be disfunctional to
the organization to utilize inferior internal sources only because they are there, when excellent
candidates are available on the outside. However, an individual from the outside, in contrast with
someone already employed in the organization, may appear more attractive because the recruiter
is unaware of the outsiders faults. Internal searches may also generate infighting among the rival
candidates for promotion, as well as decreasing morale levels of those not selected.

The External Searches:

Advertisements : When an organization wishes to communicate to the public that it has a
vacancy, advertisement is one of the most popular methods used. However, where the
advertisement is placed is often determine by the type of job. Although it is not uncommon to see
blue-collor jobs listed on placards outside the plant gates, we would be surprised to find a vice
presidency listed similarly. The higher the position in the organization, the more specialized the
skills, or the shorter the supply of that resource in the labor force, the more widely dispersed the
advertisements in a national publication. On the other hand, the advertisement of lower-level jobs
is usually confined to the local daily newspaper or regional trade journal.

A number of factors influence the response rate to advertisements. There are three important
variables; identification of the organization, labor market conditions, and the degree to which
specific requirements are included in the advertisement. Some organizations place what is
referred to as a blind-box ad, one in which there is no specific identification of the organization.
Respondents are asked to reply to a post office box number or to an employment firm that is
acting as an agent between the applicant and the organization. Large organizations with a
national reputation seldom use blind advertisements to fill lower-level positions; however, when
the organization does not wish to publicize the fact that it is seeing to fill an internal position, or
when it seeks to recruit for a position where there is a soon-to-be removed incumbent, a blindbox advertisement may be appropriate.


Employment Agencies: We will describe three forms of employment agencies: public or state
agencies, private employment agencies and management consulting firms. The major difference
between these three sources is the type of client served. All states provide a pubic employment
service. The main function of these agencies is closely tied to unemployment benefits, since
benefits in some states are given only to individuals who are registered with their state
employment agency. Accordingly, most public agencies tend to attract and list individuals who
are unskilled or have, had minimum training. This, of course, does not reflect on the agencys
competence, but rather, on the image of public agencies. State agencys are perceived by
prospective applicants as having few high-skilled jobs, and employers tend to see such agencies
as having few high-skilled workers. The agencies tend to attract and place predominantly lowskilled workers. The agencies image as perceived by both applicants and employers thus tends
to result in a self-fulfilling prophecy; that is, few high-skilled individuals place their names with
public agencies, and, similarly, few employers seeking individuals with high skills list their
vacancies or inquire about applicants at state agencies.

Schools, Colleges, and Universities: Educational institutions at all levels offer opportunities for
recruiting recent graduates. Most educational institutions operate placement services where
prospective employers can review credentials and interview graduates. Most also provide
employers and opportunity to witness a Prospective employees performance through
cooperative arrangements and internships.
Whether the educational level required for the job for the job involves a high-school diploma,
specific vocational training, or a college background with a bachelors masters, or doctoral
degree, educational institutions are an excellent source of potential employees.

Professional Organizations: Many professional organizations, including labor unions, operate

placement services for the benefit of their members. The professional organizations include such
varied occupations as industrial engineering, psychology, accounting, legal, and academics.
These organizations publish rosters of job vacancies and distribute these lists to members. It also
common practice to provide placement facilities at regional and national meetings where
individuals looking for employment and companies looking for employees can find each other
building a network of employment opportunities.

Cyberspace Recruiting: One of the newer arenas for locating resumes of qualified employees is
looking on the Internet. Companies like Eli Lilly,, Grolier Electronic Publishing,
Wells Fargo Bank, Fidelity Investments, General Electric, Levi Strauss, Bristol Technology, and

Cisco Systems have found the use of the World-Wide-Web advantageous in filling their

Unsolicited Applicants: Unsolicited applications, whether they reach the employer by letter,
telephone, or in person, constitute a source of prospective applicants. Although the number of
unsolicited applicants depends on economic conditions, the organizations image, and the job
seekers perception of the types of jobs that might be available, this source does provide an
excellent supply of stockpiled applicants. Even if there are no particular openings when the
applicant contacts the organization, the application can be kept on file for later needs.
Unsolicited applications made by unemployed individuals, however, generally have short life.
Those individuals who have adequate skills and who would be prime candidates for a position in
the organization if a position were currently available usually find employment with some other
organization that does have an opening. However, in times of economic stagnation, excellent
prospects are often unable to locate the type of job they desire and may stay actively looking in
the job market for many months.



Figure 1.1 presents an overview of the recruitment process from the perspective of the
organization and the candidate. This flow chart displays the process as it unfolds over time.
When a vacancy occurs and the recruiter receives permission to fill it, the next step is a careful
examination of the job and an enumeration of the skills, abilities, and experience needed to
perform the job successfully. Existing job analysis documents can be very helpful in this regard.
In addition, the recruitment planner must consider other aspects of the job environment for
example, the supervisors management style, the opportunities for advancement, pay, and
geographical location in deciding what type of candidate to search for and what search
methods to use. After carefully planning the recruiting effort, the recruiter utilizes one or more
methods to produce a pool of potentially qualified candidates.
A firm can generate candidates internally, from among its present employees who desire
promotion or transfer, or externally, from the labor market. The organization then screens.
Throughout the recruitment process, the organization attempts to sell itself to the more
promising candidates that is, to convince them that the organization is a good place to work
and that it offers what they want in the way of both tangible and intangible rewards.
Candidates searching for an employer go through a parallel set of activities first acquiring
occupational skills and experience; next, searching for job openings through a variety of
methods; and then applying for jobs that appear to be a suitable match for their qualifications. As
the process continues, applicants attempt to sell organizations on their abilities, while at the
same time collecting information that allows them to evaluate the companies and the jobs.
Eventually, they decide to accept or reject job offers.

Received Education and

Vacant of New Position Occurs

Perform Job Analysis and

Plan Recruiting Effort

Chose Occupation Occurs

Acquire Employment


Generate Applicant Pool

Search for Job Openings

via Internal or External

Recruiting Methods
Apply for Jobs
Evaluate Applicants via
Selection Process
Impress Company during
Selection Process
Impress Applicants

Evaluate Jobs and Companies

Make Offer
Accept or Reject Job Offers

Figure 1.1 : The Recruitment Process

In the recruitment and selection process, the organizations and the individuals objectives may
conflict. The organization is trying to evaluate the candidates strengths and weaknesses, but the
candidate is trying to present only strengths. Conversely, although the candidate is trying to ferret
out both the good and the bad aspects of the prospective job and employer, the organization may
prefer to reveal only positive aspects. In addition, each partys own objectives may conflict. The
organization wants to treat the candidate well to increase the probability or job-offer acceptance,
yet the need to evaluate the candidate may dictate the use of methods that alienate the prospect,
such as background investigations or stress interviews. Analogously, the applicant wants to
appear polite and enthusiastic about the organization to improve the probability of receiving an
offer, but he or she may also want to ask penetrating questions about compensation,
advancement, and the companys financial health and future.


Week: 07
Lecture No. : 07

Lecture Topic: Selection & Interview

Definition of Selection
The Selection Process
Initial Screening
Completion of the Application Form


Definition of Selection:
In human resource planning we identified our personnel needs. Once these needs were
established a job analysis was conducted, which clarified the characteristics of jobs being done
and the individual qualities necessary to do these jobs successfully. This information was then
used to recruit a pool of qualified applicants. We must now begin the process of thinning this set,
which is one of the major objectives of selection. We want to assess our applicants against the
criteria established in job analysis in order to predict which job applicants will be successful if
All selection activities, from the initial screening interview to the physical examination if
required, exist for the purpose of making effective selection decisions. Each activity is a step in
the process that forms a predictive exercise managerial decision makers seeking to predict
which job applicants will be successful if hired. Successful, in this case, means performing well
on the criteria the organization uses to evaluate personnel. For a sales position, for example, the
criteria should be able to predict which applicants will generate a high volume of sales; for a
teaching position as a university professor, they should predict which applicants will get high
student evaluations or generate many high-quality publications or both.


Selection is a process of measurement, decision making, and evaluation. The goal of a personnel
selection system is to bring into an organization individuals who will perform well on the job. A
good selection system must also be fair to minorities and other protected classes.
To have an accurate and fair selection system, an organization must use reliable and valid
measures of job applicant characteristics. In addition, a good selection system must include a
means of combining information about applicant characteristics in a rational way and producing
correct hire and no-hire decisions. A good personnel selection system should add to the overall
effectiveness of the organization.

The Selection Process:

Selection activities typically follow a standard pattern, beginning with an initial screening
interview and concluding with the final employment decision. The selection process typically
consists of eight steps:

Initial screening interview

Completing the application form
Employment tests
Comprehensive interview
Background investigation
A conditional job offer
Medical or physical examination, and
The permanent job offer
Failed to meet minimum qualifications
Initial screening

Failed to complete application or failed job specifications
Completed application

Failed test

Employment test

Failed to impress interviewer and/or meet job expectations


Comprehensive interview
Conditional job offer

Problems encountered
Background examination
if required


Reject applicant

Unfit to do essential elements of job

Medical/physical examination
if required (conditional
job offer made)

Note: Under the Comprehensive Approach, all steps

Able to perform

are completed before a hiring decision is made.

essential elements
of job

Permanent job offer


Exhibit 1.1: The Selection Process

Each step represents a decision point requiring some affirmative feedback for the process to
continue. Each steps in the process seeks to expand the organizations knowledge about the
applicants background, abilities, and motivation, and it increases the information from which
decision makers will make their predictions and final choice. However, some steps may be
omitted if they do not yield data that will aid in predicting success, or if the cost of the step is not
warranted. Applicants should also be advised what specific screening will be done, such as credit
checks, reference checking, and drug tests. The flow of these activities is depicted in Exhibit 1.1.
Let us take a closer look at each.

Initial Screening: As a culmination of our recruiting efforts, we should be prepared to initiate

a preliminary review of potentially acceptable candidates. This initial screening is, in effect, a
two-step procedure: (1) the screening of inquiries and (2) the provision of screening interviews.
If our recruiting effort has been successful, we will be faced with a number of potential
applicants. Based on the job description and job specification, some of these respondents can be
eliminated. Factors that might lead to a negative decision at this point include inadequate or
inappropriate experience, or inadequate or inappropriate education. There might also be other
red flags identified, such as gaps in the applicants job history, many brief jobs, or numerous
courses and seminars instead of appropriate education.
The screening interview is also an excellent opportunity for HRM to describe the job in enough
detail so the candidates can consider whether they are really serious about applying. Sharing job
description information with the individual frequently encourages the unqualified or marginally
qualified to voluntarily withdraw from candidacy, with a minimum of cost to the applicant or the
organization. Costs, too, can be minimized with the screening interview by using

Another important point during the initial screening phase is to identify a salary range. Most
workers are concerned about their salaries, and while a job opening may sound exciting, a low

salary may preclude an organization from obtaining excellent talent. During this phase, if proper
HRM activities have been conducted, there should be no need to mask salary data.

Completion of the Application Form: Once the initial screening has been completed,
applicants are asked to complete the organizations application form. The amount of information
required may e only the applicants name, address and telephone number. Some organizations, on
the other hand, may request the completion of a more comprehensive employment profile. In
general terms, the applicants have been doing during their adult life, their skills, and their
Applications are also useful in that they obtain information the company wants. Additionally,
completing the application serves as another hurdle; that is, if the job requires one to follow
directions and the individual fails to do so on the application, that is a job-related reason for
rejection. Lastly, applications require a signature attesting to the truthfulness of the information
given, and to give permission to check references. If at a later point the company finds out the
information is false, it can result in the immediate dismissal of the individual.

Employment Tests: Organizations historically relied to a considerable extent on intelligence,

aptitude, ability, and interest tests to provide major input to the selection process. Even
handwriting analysis (graphology) and honesty tests have been used in the attempt to learn more
about the candidate information that supposedly leads to more effective selection.

Whether were discussing initial screening interviews or comprehensive interviews, a common
question arises: Are interviews effective for gathering accurate information from which selection
decision can be made? The interview has proven to be an almost universal selection tool one
that can take a number of forms. They can revolve around a one-on-one encounter between the
interviewer and the applicant (the traditional interview) or involve several individuals who
interview an applicant at once (the panel interview). Interviews can follow some predetermined
pattern wherein both the questions and the expected responses are identified (a situational
interview). Interviews can also be designed to create a difficult environment in which the
applicant is put to the test to assess his or her confidence levels. These are frequently referred
to as the stress interview.


Irrespective of how the interview is conducted, it is understood that few people get jobs without
one or more interviews. This is extremely interesting given that the validity of the interview as a
selection tool has been the subject of considerable debate. Lets look at the research findings
regarding interviews.


Unfortunately for recruiters, interview situation arent always this cut and dried. Rather, many
factors enter into the deliberation in determining if a candidate is a good fit for the
organization. Although interviews are typically part of every job search process, summaries of
research on interviewing have concluded that the reliability and validity of interviews are

generally low. Despite its popularity, the interview is expensive, inefficient, and often not job
More specifically, a review of he research has generated the following conclusions:

Prior knowledge about the applicant can bias the interviewers evaluation.
The interviewer often holds a stereotype of what represents a good applicant.
The interviewer often tends to favor applicants who share his or her own attitudes.
The order in which applicants interviewed often influences evaluations.
The order in which information is elicited influences evaluations.
Negative information is given unduly high weight.
The interviewer may make a decision as to the applicants suitability in the first few
minutes of the interview.
8. The interviewer may forget much of the interviews content within minutes after its
9. Structured and well-organized interviews are more reliable.
10. The interview is most valid in determining an applicants organizational fit, level of
motivation, and interpersonal skills.

Becoming a More Effective Interviewer:

The differences we have described many seem to cast a dark cloud over the interview. But the
interview is far from worthless. It can help us to better assess the candidate, as well as be a
valuable for relaying information to prospective employees.

For anyone who interviews prospective job candidates, whether as a recruiter in HRM or in any
other capacity, there are several suggestions we can offer for improving the effectiveness of

Obtain Detailed Information About the Job for Which Applicants Are Being Interviewed:
When such information unavailable, you may tend to rely more on factors less relevant to the
job, allowing bias to enter into the assessment. You should therefore, at a minimum, have a copy
of the recent position description as an information source. you are now ready to structure the

Structure the Interview So That the Interview Follows a Set Procedure: Reliability is
increased when the interview is designed around a constant structure. A fixed set of questions
should be presented to every applicant. In the trade-off between structure and consistency versus

nanostructure and flexibility, structure and consistency have proved to be of greater value for
selection purposes. The structured interview also aids you in comparing all candidates answers
to a like question.

Review the Candidates Application Form and/or Resume: This step helps you to create a
more complete picture of the applicant in terms of what is represented on the resume/application,
and what the job requires. This will help you to identify specific areas that need to be explored in
the interview. For example, areas not clearly defined on the resume but essential for job success
become a focal point for interview discussion.

Put the Applicant at Ease: Assume the applicant will be nervous. For you to obtain the kind of
information you will need, the applicant will have to be put at ease. Introduce yourself, and open
with some small talk like the weather, the traffic coming to the interview, etc. But be careful;
dont venture into illegal areas with small talk about the applicants family. Keep it impersonal!

Ask Your Questions: The questions you are asking should be behaviorally based. Such
questions are designed to require applicants to provide detailed descriptions of their actual job
behaviors. You want to elicit concrete examples of how the applicant demonstrates certain
behaviors, The same behaviors that are necessary for successful performance on the job for
which the interview is being held. If you are unsatisfied with the applicants response, probe
deeper to seek elaboration. The key here is to let the applicant talk. A big mistake is to do most of
the talking yourself. During this part of the interview, take notes. Given the propensity to forget
what was actually said during the interview, notes should be taken. This will lead to increased
accuracy in evaluation.

Conclude the Interview: Let the applicant know that all of your questioning is finished.
Summarize what you have heard from the applicant, and give the applicant an opportunity to
correct something that is unclear; or discuss anything that you may have not addressed in the
interview. Inform the applicant what will happen next in the process, and when he or she can
expect to hear from you.

Complete a Post-Interview Evaluation Form: Along with a structured format should go a

standardized evaluation form. You should complete this item-by-item form shortly after the


interviewee has departed while the information and your notes are still fresh in your mind.
The information on this evaluation can then be
summarized into an overall rating, or impression, for the candidate. This approach increases the
likelihood that the same frame of reference is applied to each applicant.

Week: 08
Lecture No. : 15

Lecture Topic:
Training & Management Development

Definition of Employee Training

Employee development
Management Development
Theories of Learning
Principle of Learning


Definition of Employee Training:
Training is a learning experience in that it seeks a relatively permanent change in an individual
that will improve the ability to perform on the job. We typically say training can involve the
changing of skills, knowledge, attitudes, or behavior. It may mean changing what employees
know, how they work, their attitudes towards their work, or their interaction with their coworkers
or supervisor.

For our purposes, we will differentiate between employee training and employee development
for one particular reason. Although both are similar in the methods used to affect learning, their
time frames differ. Training is more present-day oriented; its focus is on individuals current jobs,
enhancing those specific skills and abilities to immediately perform their jobs. For example,
suppose you enter the job market during your senior year of college, pursuing a job as a
marketing representative. Although you have a degree in Marketing, when you are hired, some
training is in order. Specifically, youll need to learn the companys policies and practices,
product information, and other pertinent selling practices. This, by definition, is job-specific
training, or training that is designed to make you more effective in your current job.

Employee development:


On the other hand, generally focuses on future jobs in the organization. As example, if you
become a sales territory manager, the skills needed to perform that job are quite different from
those required for selling the products. Now you will be required to supervise a number of sales
representatives; requiring a broad-based knowledge of marketing and very specific management
competencies like communication skills, evaluation employee performance, and disciplining
problem individuals. As you are groomed for positions of greater responsibility, employee
development efforts will help prepare you for that day.

Management Development:
Management development is more future oriented, and more concerned with education, than is
employee training, or assisting a person to become a better performance. By education, we mean
that management development activities attempt to instill sound reasoning processes to
enhance ones ability to understand and interpret knowledge rather than imparting a body of
serial facts or teaching a specific set of motor skills. Development, therefore focuses more on the
employees personal growth.

Successful managers have analytical, human, conceptual, and specialized skills. They are able to
think and understand. Training per se cannot overcome a managers or potential managers
inability to understand cause-and-effect relationships, to synthesize from experience, to visualize
relationships, or to think logically. As a result, we suggest that management development be
predominantly an education process rather than a training process.

The words predominantly an education process should be noted. In contrast to what we have said
above, certain activities that managers engage in are programmable, and training can be helpful.
Managers need good listening skills, interviewing competence, and the ability to read, analyze,
and classify types of employee behavior. Training can improve these types of skills.
Unfortunately, effective management requires considerably more than the acquisition of any
specific or specialized skills. For the most part, therefore, the methods for developing executives
that we will consider are educational and are intended to foster the managers analytical and
conceptual abilities.

Theories of Learning:
Learning is concerned with bringing about relatively permanent change as a result of experience.
This can be done through direct experience by doing or indirectly, through observation.

Regardless of the means by which learning takes place, we cannot measure learning per se. We
can only measure the changes in attitudes and behavior that occur as a result of learning. For our
discussion, we will emphasize how we learn rather than what we learn.

Two major theories have dominated learning research over the years. One position is the
cognitive view. Its proponents argue that an individuals purposes or intentions direct his or her
actions. The other position is the environmental perspective, whose proponents believe the
individual is acted upon and his or her behavior is a function of its external consequences.

More recently an approach has been offered that blends both of these theories learning is a
continuous interaction between the individual and the particular social environment in which he
or she functions. This is called social-learning theory. This theory acknowledges that he can learn
by observing what happens to other people and just being told about something, as well as by
direct experiences. Since much of training is observational in nature, this theory would appear to
have considerable application potential.

The influence of models is central to the social-learning view-point. Research indicates that
much of what we have learned comes from watching models-parents, teachers, peers, motion
picture and television performers, bosses, and so forth. Four processes have been found to
determine the influence a model will have on an individual:

Attentional processes: People only learn from a model when they recognize and pay attention to
its critical features. We tend to be most influenced by models that are attractive, repeatedly
available, that we think are important, or that we see as similar to us.

Retention processes: A models influence will depend on how well the individual remembers the
models action, even after the model is no longer readily available.

Motor reproduction processes: After a person has seen a new behavior by observing the model,
the watching must be converted to doing. This process then demonstrates that the individual can
perform the modeled activities.


Reinforcement processes: Individuals will be motivated to exhibit the modeled behavior if

positive incentives or rewards are provided. Behaviors that are reinforced will given more
attention, learned better, and performed more often.

Principle of Learning:
Learning is enhanced when the learner is motivated: An individual must want to learn. When
that desire exists, the learner will exert a high level of effort. There appears to be valid evidence
to support the adage, You can lead a horse to water, but you cant make him drink.

Learning Requires Feedback: Feedback, or knowledge of results, is necessary so that learners

can correct their mistakes. Feedback is best when it is immediate rather than delayed; the sooner
individuals have some knowledge of how well they are performing, the easier it is for them to
compare performance to goals and correct their erroneous actions.
Reinforcement increases the likelihood that a learned behavior will be repeated: The principle of
reinforcement tells us that behaviors that are positively reinforced (rewarded) are encouraged and
sustained. When the behavior is punished, it is temporarily suppressed but is unlikely to be
extinguished. What is desired is to convey feedback to the learners when they are doing what is
right to encourage them to keep doing it.

Practice increases a learners performance: When learners actually practice what they have
read or seen, they gain confidence and are less likely to make errors or to forget what they have

Learning begins rapidly, then plateaus: Learning rates can be expressed as a curve that usually
begins with a sharp rise, then increases at a decreasing rate until a plateau is reached. Learning is
very fast at the beginning, but then plateaus as opportunities for improvement are reduced.

Learning must be transferable to the job: It doesnt make much sense to perfect a skill in the
classroom and then find that you cant successfully transfer it to the job. Therefore, training
should be designed for transferability.


Week: 08
Lecture No. : 16

Lecture Topic:
Determining Training Needs and Priorities
Whether there is a need for training?
Apprenticeship Programs
Job Instruction Training


Now that we have an understanding of what training should include, we can look at how we
assess whether there is a need for training. We propose that management can determine this by
answering four questions: (1) What are the organizations goals? (2) What tasks must be
completed to achieve these goals? (3) What behaviors are necessary for each job incumbent to
complete his or her assigned tasks? (4) What deficiencies, if any, do incumbents have in the
skills, knowledge, or attitudes required to perform the necessary behaviors? These questions
demonstrate the close link between human resource planning and determination of training
needs. Based on our determination of the organizations needs, the type of work that is to be
done, and the type of skills necessary to complete this work, our training program should follow
naturally. Once we can answer question 4, we have a grasp of the extent and nature of our
training needs.
The most widely used methods of training take place on the job. This can be attributed to the
simplicity of such methods and the impression that they are less costly to operate. On-the-job
training places the employees in an actual work situation and makes them appear to be
immediately productive. It is learning by doing. For jobs that either are difficult to simulate or
can be learned quickly by watching and doing, on-the-job training makes sense.

Apprenticeship Programs: People seeking to enter skilled trades to become, for example,
plumbers, electricians, or ironworkers-are often required to undergo apprenticeship training
before they are accepted to journeyman status.

Job Instruction Training: During World War II, a systematic approach to on-the-job training
was developed to prepare supervisors to train operatives. This approach, called job instruction
training (JIT), was part of the Training within Industry program. JIT consists of four basic steps:
(1) Preparing the trainees by telling them about the job and over-coming their uncertainties; (2)
presenting the instruction, giving essential information in a clear manner; (3) having the trainees
try out the job to demonstrate their understanding; and (4) placing the workers into the job, at
their own, with a designated resource person to call upon should they need assistance. The
sequence of these activities is shown in Figure 1.1.







Have the learner talk through the job.

Have the learner instruct the supervisor
on how the job is done.

Let the learner do the job.

Provide feedback both positive and negative
Let the learner practice.



Break down the job

Prepare an instruction plan
Put the learner at east





Check progress frequently at first.

Tell the learner whom to go to for help.

Gradually taper off progress checks.

Figure: 1.1 JIT Instruction/Learning Sequence

Week: 09
Lecture No. : 17

Lecture Topic: Off-the-Job Training

Classroom Lectures
Videos and Films
Simulation Exercises
Computer-Based Training
Vestibule Training

Programmed Instruction
Employee Development Methods

Off-the-job training covers a number of techniques classroom lecture, films, demonstrations,
case studies and other simulation exercises, and programmed instruction. The facilities needed
for each technique vary from a small, makeshift classroom to an elaborate development center
with large lecture halls, supplemented by small, conference rooms with sophisticated
instructional technology equipment. We have summarized the majority of these methods in
Exhibit 1.2. Because of its growing popularity in todays technology-oriented organizations,
however, programmed instruction warrants a closer look.
Classroom Lectures:

Lectures designed to communicate

technical, or problem-solving skills.



Videos and Films:

Using various media productions to demonstrate specialized skills

that are not easily presented by other training methods.

Simulation Exercises:

Training that occurs by actually performing the work. This may

include case analysis, experiential exercises, rile playing, or group
decision making.

Computer-Based Training: Simulating work environment by programming a computer to

imitate some of the realities of the job.

Vestibule Training:

Training on actual equipment used on the job, but conducted away

from the actual work setting a simulated work station.


Programmed Instruction:

Condensing training materials into highly organized, logical

sequences. May include computer tutorials, interactive video disks,
or virtual reality simulations.

Exhibit 1.2 Off-the-job training methods

Employee Development Methods:

Some development of an individuals abilities can take place on the job. We will review several
methods, three popular on-the-job techniques (job rotation, assistant-to positions, and committee
assignments) and three off-the-job methods (lecture courses and seminars, simulation exercises,
and outdoor training).

Job Rotation: Job rotation involves moving employees to various positions in the organization
in an effort to expand their skills, knowledge, and abilities. Job rotation can be either horizontal
or vertical. Vertical rotation is nothing more than promoting a worker into a new position. In this
chapter, we will emphasize the horizontal dimension of job rotation, or what may be better
understood as a short-term lateral transfer.
Job rotation represents an excellent method for broadening an individuals exposure to company
operations and for turning a specialist into a generalist. In addition to increasing the individuals
experience and allowing him or her to absorb new information, it can reduce boredom and
stimulate the development of new ideas. It can also provide opportunities for a more
comprehensive and reliable evaluation of the employee by his or her supervisors.
Assistant-To Position: Employees with demonstrated potential are sometimes given the
opportunity to work under a seasoned and successful manager, often in different areas of the
organization. Working as staff assistants or, in some cases serving on special boards, these
individuals perform many duties under the watchful eye of a supportive coach. In doing so, these
employees get exposure to a wide variety of management activities and are groomed for
assuming the duties of the next higher level.

Committee Assignment: Committee assignments can provide an opportunity for the employee
to share in decision making, to learn by watching others, and to investigate specific
organizational problems. When committees are of a temporary nature, they often take on taskforce activities designed to delve into a particular problem, ascertain alternative solutions, and

make a recommendation for implementing a solution. These temporary assignments can be both
interesting and rewarding to the employees growth.
Appointment to permanent committees increases the employees exposure to other members of
the organization, broadens his of her understanding, and provides an opportunity grow and make
recommendations under the scrutiny of other committee members. In addition to the on-the-job
techniques described above, we will briefly discuss three of the more popular ones: lecture
courses and seminars, simulations, and outdoor training.

Lecture Courses and Seminars: Traditional forms of instruction revolved around formal
lecture courses and seminars. These offered an opportunity for individuals to acquire knowledge
and develop their conceptual and analytical abilities. For many organizations, they were offeredin-house by the organization itself, through outside vendors, or both.

Simulations: Simulations were previously cited in Exhibit 1.2 as a training technique. While
critical in training employees on actual work experiences, simulations are probably even more
popular for employee development. The more widely used simulation exercises include case
studies, decision games, and role plays.

Outdoor Training: A 1990s trend in employee development has been the use of outdoor
(sometimes referred to as wilderness or survival) training. The primary focus of such training is
to teach trainees the importance of working together; gelling as a team. Outdoor training
typically involves some major emotional and physical challenge. This could be white-water
rafting, mountain climbing, paint-ball games, or surviving a week in the jungle. The purpose of
such training is to see how employees react to the difficulties that nature presents to them. Do
they face these dangers alone? Do they freak? Or are they controlled and successful in
achieving their goal? The reality is that todays business environment does not permit employees
to stand alone. This has reinforced the importance of working closely with one another
building trusting relationships, and succeeding as a member of a group.


Week: 09
Lecture No. : 18

Lecture Topic:
Evaluation the effectiveness of training program
Post-Training Performance Method:
Pre-Post-Training Performance Method
Pre-Post-Training Performance with Control Group Method



Well explore three popular methods of evaluating training programs. These are the post-training
performance method, the pre-post-training performance method, and the pre-post-training
performance with control group method.

Post-Training Performance Method: The first approach is referred to as the post-training

performance method. Participants performance is measured after attending a training program to
determine if behavioral changes have been made. For example, assume we provide a week-long
seminar for HRM recruiters on structured interviewing techniques. We may attribute them the
program were used, and how. If changes did occur, we may attribute them to the training. But
caution must be in order, for we cannot emphatically state that the change in behavior was
directly related to the training. Other factors, like reading a current HRM journal or attending a
presentation at a local Society of Human Resource Management, may have also influenced the
change. Accordingly, the post-training performance method may overstate the benefits of

Pre-Post-Training Performance Method: In the pre-post training performance method, each

participant is evaluated prior to training and rated on actual job performance. After instruction
of which the evaluator has been kept unaware is completed, the employee is reevaluated. As
with the post-training performance method, the increase is assumed to be attributed to the
instruction. However, in contrast to the post-training performance method, the pre-post
performance methods deals directly with job behavior.

Pre-Post-Training Performance with Control Group Method: The most sophisticated

evaluative approach is the pre-post-performance with control group method. Under this
evaluation method, two groups are established ad evaluated on actual job performance. Members
of the control group work on the job but do not undergo instruction. On the other hand, the
experimental group is given the instruction. At the conclusion of training, the two groups are
reevaluated. If the training is really effective, the experimental groups performance will have
improved, and its performance will be substantially better than that of the control group. This
approach attempts to correct for factors, other than the instruction program, that influence job


Although a number of methods for evaluation training and development programs may exist,
these three appear to be the most widely recognized. Furthermore, the latter two methods are
preferred, because they provide a stronger measure of behavioral change directly attributable to
the training effort.

Week: 10
Lecture No. : 19

Lecture Topic: Career Development

Individual versus Organizational Perspective
Career Development: Value for the Organization
Reduces Employee Frustration
Career Development: Value for the Individual


Career development is important to us all. We know that people sometimes have difficulties
achieving their career goals. This reflects the new and unexpected complexities that managers
must now confront in their efforts to mobilize and manage their employees. The historical beliefs
that every employee would jump at the chance for a promotion, that competent people will
somehow emerge within the organization to fill arising vacancies, and that a valuable employee
will always be a valuable employee are no longer true. Lifestyles, too, are changing. We are
becoming increasingly aware o the different needs and aspirations of employees. If HRM
representatives are to be assured that they will have competent and motivated people to fill the
organizations future needs, they should be increasingly concerned with matching the career
needs of employees with the requirements of the organization.
The term career has a number of meanings. In popular usage it can mean advancement (Hes
moving up in his career), a profession (She has chosen a career in medicine), or stability over
time (career military). For our purposes, we will define career as the pattern of work-related
experiences that span the course of a persons life. Using this definition, it is apparent that we all
have or will have careers. The concept is as relevant to transient, unskilled laborers as it is to
engineers and physicians. For our purposes therefore, any work, paid or unpaid, pursued over an
extended period of time, can constitute a career. In addition to formal job work, careers can
include schoolwork, homemaking, or volunteer work. Furthermore, career success is defined not
only objectively in terms of promotion, but also subjectively, in terms of satisfaction.

Individual versus Organizational Perspective:

The study of careers takes on a very different orientation, depending on whether it is viewed
from the perspective of the organization or of the individual. A key question in career
development, then, is, With whose interests are we concerned? From an organizational or
HRM viewpoint, career development involves tracking career paths and developing career
ladders. HRM seeks information to direct and to monitor the progress of special groups of
employees, and to ensure that capable professional, managerial, and technical talent will be
available to meet the organizations needs. Career development from the organizations
perspective is also called organizational career planning.
In contrast, individual career development, or career planning, focuses on assisting individuals to
identify their major goals and to determine what they need to do to achieve these goals. Note that

in the latter case the focus is entirely on the individual and includes his or her life outside the
organization, as well as inside. So while organizational career development looks at individuals
filling the needs of the organization, individual career development address each individuals
personal work career and other lifestyle issues. For instance, an excellent employee, when
assisted in better understanding his or her needs and aspirations through interest inventories, lifeplanning analysis, and counseling, may even decide to leave the organization if it becomes
apparent that career aspirations can be best achieve outside the employing organization.

Career Development: Value for the Organization

Assuming that an organization already provides extensive employee development programs, why
should it need to consider a development program as well? A long-term career focus should
increase the organizations effectiveness in managing its human resources. More specifically, we
can identify several positive results that can accrue from a well-designed career development

Ensures Needed Talent Will Be Available: Career development efforts are consistent with, and
are a natural extension of, strategic and employment planning. Changing staff requirements over
the intermediate and long term should be identified when the company sets long-term goals and
objectives. Working with individual employees to help them align their needs and aspirations
with those of the organization will increase the probability that the right people will be available
to meet the organizations changing staffing requirements.

Improves the Organizations Ability to Attract and Retain High-talent Employees:

Outstanding employees will always be scarce, and there is usually considerable competition to
secure their services. Such individuals may give preference to employers who demonstrate a
concern for their employees future. If already employed by an organization that offers career
advice, these people may exhibit greater loyalty and commitment to their employer. Importantly,
career development appears to be a natural response to the rising concern by employees for the
quality of work life and personal life planning. As more individuals seek jobs that offer
challenge, responsibility, and opportunities for advancement, realistic career planning becomes
increasingly necessary. Additionally, social values have changed so that more members of he
work force no longer look at their work in isolation. Their work must be compatible with their
personal and family interests and commitments. Again, career development should result in a
better individual organization match for employees and thus lead to less turnover.


Ensures that Minorities and Women Get Opportunities for Growth and Development: As
discussed in previous chapters, equal employment opportunity legislation and affirmative-action
programs have demanded that minority groups and women receive opportunities for growth and
development that will prepare them for greater responsibilities within the organization. The fair
employment movement has served as a catalyst to career development programs targeted for
these special groups. Recent legislation, such as the Americans with Disabilities Act, offers and
even greater organizational career challenge. Furthermore, courts frequently look at an
organizations career development efforts with these groups when ruling on discrimination suits.

Reduces Employee Frustration: Although the educational level of the work force has risen, so
too, have their occupational aspirations. However, periods of economic stagnation and increased
concern by organizations to reduce costs have also reduced opportunities. This has increased
frustration in employees who often see a significant disparity between their aspirations and
actual opportunities. When organizations cut costs by downsizing, career paths, career tracks,
and career ladders often collapse. Career counseling can result in more realistic, rather than
raised, employee expectations.

Enhances Cultural Diversity: The work force in the next decade will witness a more varied
combination of race, nationality, sex, and values in the organization. Effective organizational
career development provides access to all levels of the organization for more varied types of
employees. Extended career opportunities make cultural diversity, and the appreciation of it, an
organizational reality.
Promotes Organizational Goodwill: If employees think their employing organizations are
concerned about their long-term well-being, they respond in kind by projecting positive images
of the organization into other areas of their loves (e.g., volunteer work in the community). For
instance, Walt works for a long-distance phone career. He also coaches Little League baseball
with other parents in the community. When he expresses his trust of the phone company, because
of their expressed career interest, his friends might consider proposed rate hikes in a tolerant

Career Development: Value for the Individual

Effective career development is also important for the individual. In fact, as weve previously
mentioned, it is more important today than ever. Because the definitions of careers and what
constitutes success have changed, the value of individual career development programs has
expanded. Career success may no longer be measured merely by an employees income or

hierarchical level in an organization. Career success may now include using ones skills and
abilities to face expanded challenges, or having greater responsibilities and increased autonomy
in ones chosen profession. Intrinsic career development, or psychic income, is desired by
contemporary workers seek interesting and meaningful work; such interest and meaning are
often derived from a sense of being the architect of ones own career.

External Event

Internal Event

Advice and examples of relatives, Development of self-image of what

teachers, friends, and coaches
one might be what sort of work
would be fun
Actual successes and failures in
school, sports and hobbies
Self-assessment of own talents and
Actual choice of education path
school, college, major, professional Development of ambitions, goals,
motives, dreams
Tentative choices and commitments,

Establishment Explicit search for a job

Acceptance of a job
Induction and orientation

Shock of entering the real world

Insecurity around




applying, being tested, facing being

turned down
Assignment to further training or Making a real choice; to take a job
first job
or not;
which job; first commitment
and Fear of being tested for the first time
organizational membership trapping under real conditions, and found out
(ID Card, parking sticker, uniform, to be a fraud
organizational manual)

First job assignment, meeting the

boss and co-workers
Reality shock-what the work is really

Learning period, indoctrination

like, doing the dirty work

Period of full performance doing Forming a career strategy, how to

the job
make itworking hard, finding mentors,
conforming to an organization,
making a contribution
This is real what Im doing maters
Feeling of success or failure going
Decision to leave organization if
things do not look positive
Feeling of being accepted fully by the
organization, having make it
satisfaction of seeing my project

Leveling off,


and/or Period of setting in or new ambitions

based on self-assessment

More feeling of security, relaxation,

but banger of leveling off and
Entering a period of maximum stagnation
Treat from younger, better trained,
more energetic, and ambitious
Becoming more of a teacher/mentor persons Am I too old for my job?
than a learner

Possible thoughts of new pastures

and new challenges What do I
really want to do?

Explicit signs from boss and coworkers that ones progress has Working through mid-life crisis
toward greater acceptance of oneself
and others
It is time to give up on my dreams?
Should I settle for what I have?
Late Career

Job assignments drawing primarily Psychological



on maturity on judgment


More jobs involving teaching others

Deceleration in momentum
Finding new sources of selfimprovement off the job, new sources
of job satisfaction through teaching


Formal preparation for retirement

Retirement rituals

Learning to accept a reduced role and

less responsibility
Learning to live a less structured life
New accommodations to family and

Week: 10
Lecture No. : 20

Lecture Topic:
Internal and External Events and Career Stages
Suggestions for More Effective Organizational Career Development
Challenging Initial Jobs
Dissemination of Career Option Information
Job Postings
Assessment Centers


Suggestions for More Effective Organizational Career Development:


We will now consider the methods or tools that managers can utilize to better match the career
needs of their subordinates with the requirements of their organization. While these suggestions
are not proposed to be all-encompassing, they are a solid representation of the better-known
career development methods.

Challenging Initial Jobs:

Challenging jobs: There is an increasing body of evidence indicating that employees who
receive especially challenging job assignments early in their careers do better on later jobs. More
specifically, the degree of stimulation and challenge in a persons initial job assignment tends to
be significantly related to later career success and retention in the organization. Apparently,
initial challenges, particularly if they are successfully met, stimulate a person to perform well in
subsequent years.

As we noted in Part 2 of this book in our discussion of human resource planning, job analysis
recruitment, and selection, there are definite benefits for managers who correctly fill positions
with individuals who have the appropriate abilities and interests to satisfy the jobs demands.
Given the prior evidence, managers should be even more concerned with the match for new
employees and those just beginning their employment careers. Successful placement at this stage
should provide significant advantages to both the organization and the individual

Dissemination of Career Option Information:

Understanding career options: Surprisingly, many employees lack any substantive information
about career options what they know is often a combination of myths and facts acquired through
friends, co-workers, relatives, and the popular media.

As managers identify career paths that successful employees follow within the organization, they
should make this information available. If, for example, the organization prefers candidates for
middle-management positions to have had some job exposure in the manufacturing side of the
business as well as experience dealing with budgets and financial issues, this information should
be disseminated.


Such valid and reliable data will be of more help to the young, upwardly ambitions employee
than, say, some co-workers offhand comment that this company favors well-rounded people for

Will the dissemination of career option information turn off the ambitious employee who finds
that the organization desires skills that he or she lacks? There is the risk that it might. It may
frighten you, if you aspire to a top-management position in your firm, to learn that your
organization expects its senior executives to show outstanding abilities in meeting with the
media, giving interviews, responding to questions without preparation, and testifying in front of
congressional committees. However, it may be just the stimulus to direct you to take courses in
public speaking and debate, to get involved in community affairs, or to seek out a one-year
special assignment within the company to work on a public relations project. Just as the openness
and truthfulness in realistic job previews help increase the job tenure of new employees,
managers increase the probability of keeping good employees by making available to them
realistic information about the successful career paths that past employees have followed and
that future employees should consider.

Job Postings:

Posting jobs: To provide information to all employees about job openings, managers can use job
posting. Organizations that post jobs typically use bulletin board displays, but they may also use
company publications and similar vehicles. The posting lists the abilities, experience, and
seniority requirements to qualify for vacancies.

Consistent with the idea that full information on vacancies is a good human resource practice,
job posting provides a channel by which the organization lets employees know what jobs are
available and, for future reference, what requirements they will have to fulfill to achieve the
promotions to which they may aspire. Additionally, a job-posting system is tangible evidence
that the organization is notifying women and minorities of the availability of more desirable jobs.

Assessment Centers:


Assessing personnel: We have discussed the assessment center both as a selection device and as
management development. It also has relevance as a career development tool.

By putting people through assessment centers we obtain observable evidence of their ability to
do a certain job. Additionally, and often overlooked, is the fact that this technique almost always
uses internal assessor, individuals learn how to observe behavior carefully, to make inferences
from observations, and to give feedback to the assesses.

Therefore the process helps to build the important managerial skills necessary for performance
appraisal. Even more important, it makes assessors more aware of what is involved in the
process of development and this awareness can provide valuable insights into their own career

Week: 11
Lecture No. : 21

Lecture Topic: Steps in Managing your Career

Do Good Work; Present the Right Image
Learn the Power Structure; Gain Control of Organizational Resources
Stay Visible; Dont Stay Too Long in Your First Job
Find a Mentor; Support Your Boss
Stay Mobile; Think Laterally


We, as many authors, with we had a foolproof process to give you. Nothing would make our jobs
easier than if we could say emphatically, follow these steps and youll be guaranteed career

success. Of course, we all know that such a guarantee could never be given. But thats not to
imply that achieving your career goals are left simply to change. Instead, there are suggestions
on how to service in most organizations, as well as ways that you might use to make inroads
toward building a successful career (see Exhibit 1.1).
Select Your First Job Judiciously: All first jobs are not alike. Where you begin in the organization
has an important effect on your subsequent career progress. Specifically, evidence suggests that
if you have a choice, you should select a powerful department as the place to start your career. A
power department is one where crucial and important decisions are made. If you start out in
departments that are high in power within the organizations, youre more likely to advance in the
organization and ultimately throughout your career.

Do Good Work: Good work performance is a necessary (but not sufficient) condition for career
success. The marginal performer may be rewarded in the short term, but his or her weaknesses
are bound to surface eventually and cut off career advancement. Your good work performance is
no guarantee of success, but without it, the probability of a success career is low.

Present the Right Image: Assuming that your work performance is in line with other successful
employees, the ability to align your image with that sought by the organization is certain to be
interpreted positively. You should assess the organizations culture so that you can determine
what the organization wants and values. Then you need to project that image in terms of style of
dress; organizational relationships that you should and shouldnt cultivate; whether you should
project a risk-taking or risk-averse stance; whether you should avoid, tolerate, or encourage
conflict; the importance of getting along well with others; ad so forth.

Learn the Power Structure: The authority relationships defined by the organizations formal
structure, as shown by an organizational chart, explain only part of the influence patterns within
an organization. Its of equal or greater importance to know and understand the organizations
power structure. You need to learn whos really in charge, who has the goods on whom, what
are the major debts and dependencies all things that wont be reflected in neat boxes on the
organization chart. Once you have this knowledge, you can work within the power structure with
more skill and ease.

Gain Control of Organizational Resources: The control of scarce and important organizational
resource is a source power. Knowledge and expertise are particularly effective resources to

control. They make you more valuable to the organization and therefore more likely to gain job
security and advancement.

Stay Visible: Because the evaluation of performance effectiveness can be very subjective, its
important that your boss and those in power in the organization be made aware of your
contributions. If youre fortunate enough to have a job that brings your accomplishments to the
attention of others (or have mentor whos ensuring that this information is made known), taking
direct measures to increase your visibility might not be needed. But your job may require you to
handle activities that are low in visibility, or your specific contribution may be indistinguishable
because youre part of a group endeavor. In such cases, without creating image of a braggart,
youll want to call attention to yourself by giving progress reports to your boss and others.
Others tactics include being seen at social functions, being active in your professional
associations, and developing powerful allies who speck positively of you.

Dont Stay Too Long in Your First Job: The evidence indicates that, given a choice between
staying in your first job until youve really made a difference, or accepting going onto another
job (either in your current organization or for another one), you should opt for making the
change. By moving quickly through different jobs, you signal to others that youre on the fast
track. This, then, often becomes a self-fulling prophecy. The message for you is to start fast be
seeking early transfers or promotions from your first job.

Find a Mentor: This item is so important it needs to be singled out. Remember a mentor is
someone from whom you can learn and who can encourage and help you (see Ethical Decisions
in HRM). The evidence indicates that finding s sponsor who is part of the organizations power
core is essential for you to make it to grow in your career.

Support Your Boss: Your immediate future is in the hands of your current boss. He or she
evaluates your performance, and youre unlikely to have enough power to successfully challenge
this supervisor. Therefore, you should make the effort to help your boss succeed, be supportive if
your boss is under siege from other organizational members, and find out what he or she will be
using to assess your work effectiveness. Dont undermine your boss. Dont speak negatively of
your boss to others. If your boss is competent, visible, and possesses a power base, he or she is
likely to be on the way up in the organization. Being perceived as supportive, you might find
yourself pulled along too. If your bosss performance is poor and his of her power is low, you
need to more to another job. A mentor may be able to help you arrange this. Its hard to have

your competence recognized or your positive performance evaluation taken seriously if your
boss is perceived as incompetent.

Stay Mobile: Youre like to move upward more rapidly if you indicate your willingness to move
to different geographical locations and across functional lines within the organization. Career
advancement may also be facilitated by your willingness to change organizations. Working in a
slow-growth, stagnant, or declining organization should make mobility even more important to

Think Laterally: The suggestion to think laterally acknowledges the changing world of work.
Because or organizational restructuring and downsizing there are fewer rungs on the promotion
ladder in many large organizations. To survive in this environment, its a good idea to think in
terms of lateral career moves. Its important to recognize that lateral movers in the 1960s and
1970s were presumed to be mediocre performers the plateaued worker. That presumption
doesnt hold in many cases today. Lateral shifts are now a viable career consideration. They give
you a wider range or experiences, which enhances your long-term mobility. In addition, these
moves can help energize you by making your work more interesting and satisfying. So if youre
not moving ahead in your organization, consider a lateral move internally or a lateral shift to
another organization.


Week: 11
Lecture No. : 22

Lecture Topic: Individuals Career Development

Suggestions for an Individuals Career Development
Career development suggestions
Work Harder Than Ever at Developing a Network


Think of Your Career in Terms of Skills Youre Acquiring and Continue Upgrading Those Skills:
Organizations need employees who can readily adapt to the demands of the rapidly changing
marketplace. By focusing on skills that you currently have and continuing to learn new skills you
can establish your value to the organization. Its employees who dont add value to an
organization are the ones whose jobs (and career advancement) are in jeopardy.


Work Harder Than Ever at Developing a Network: Our final suggestion is based on the
recognition that having a network of friends, colleagues, neighbors, customers, suppliers, etc. can
be a useful tool for career development. If you spend some time cultivating relationships and
contacts throughout your industry ad community, youll be prepared if worse comes to worse
and your current job is eliminated. Even if your job is in no danger of being cut, having a
network can prove beneficial in getting things done.


Develop a network

Acquire and continue

upgrading your skills

Think laterally

Stay mobile

Support your boss

Find mentor

Dont stay too long

Stay visible

Gain control of
organizational resources
Learn the power
Present the right image

Do good work

Select your job

Exhibit 1.1: Steps in managing your career

Suggestions for an Individuals Career Development:

As we pointed out at the beginning of this chapter, career development can be viewed from the
perspective of the organization or of the individual. Our emphasis has been on the former. We
can now focus briefly on individual career development. In this section, we want to identify what
employees can do to better manage their own careers.

Career development suggestions: It is probably correct to state that once most individuals leave
school and enter the world of work, they spend more time planning a two-week vacation than
they spend planning a career that will span four decades. Yet the evidence demonstrates that
those individuals who are most successful in their careers report more extensive career planning.
Assuming someone wants to take personal career development seriously, what should he or she
do? The answer is to engage in self-assessment.

Individual career development requires people to become knowledgeable of their own needs,
values, and personal goals. This can be achieved through a three-step, self-assessment process.

1. Identify and organize your skills, interests, work-related needs, and values.
2. Convert these inventories into general career fields and specific job goals.
3. Test these possibilities against the realities of the organization or the job market.

Week: 12
Lecture No. : 23

Lecture Topic: Performance Appraisal

Define Performance Appraisal
Steps in Performance Appraisal

A. The Performance Appraisal:
Performance appraisal is the process by which an employees contribution to the organization
during a specified period of time is assessed. Performance feedback then lets employees know
how well they have performed in comparison with the standards of the organization.
Performance appraisal and feedback can be an emotionally laden process that dramatically
affects employees attitudes toward the organization and themselves. If used effectively,
performance appraisal can improve employee motivation and performance. If used
inappropriately, the appraisal process can have disastrous effects.
Appraisal and feedback can occur informally, as when a supervisor notices and comments on a
good or poor performance incident. A more formal method is the structured annual performance
review, in which a supervisor assesses each employees performance using some official
appraisal procedure. Larger organizations tend to use both formal and informal methods, whereas
many smaller organizations use only informal supervisory feedback.

B. Steps in Performance Appraisal:

(1) Establish Performance Standard:
The appraisal process (Exhibit 1.1) begins with the establishment of performance standards.
These should have evolved out of job analysis and the job description discussed under human
resource planning. These performance standards should also be clear and objective enough to be
understood and measured. Too often, these standards are articulated in some such phrase as a
full days work or a good job. Vague phrases tell us nothing. The expectations a manager has

in terms of work performance by her subordinates must be clear enough in her mind so that she
will be able to, at some later date, communicate these expectations to her subordinates and
appraise their performance against these established standards.

(2) Communicate Performance Expectation to Employees:

Once performance standards are established, it is necessary to communicate these expectations.
It should not be part of the employees job to guess what is expected of them. Unfortunately, too
many jobs have vague performance standards. The problem is compounded when these standards
are not communicated to the employee. It is important to note that communication is a two-way
street. Mere transference of information from the manager to the subordinate regarding
expectations is not communication! Communication only takes place when the transference of
information has taken place and has been received and understood by the subordinate. Therefore
feedback is necessary from the subordinate to the manager. Satisfactory feedback ensures that the
information communicated by the manager has been received and understood in the way it was

1. Establish performance standards with


2. Mutually set measurable goals

3. Measure actual performance

4. Compare actual performance with



5. Discuss the appraisal with the


6. If necessary, initiate corrective action

Exhibit 1.1: The Appraisal Process

(3) Measure actual performance:

The third step in the appraisal process is the measurement of performance. To determine what
actual performance is, it is necessary to acquire information about it. We should be concerned
with how we measure and what we measure.
Four common sources of information are frequently used by managers to measure actual
performance: personal observation, statistical reports, oral reports, and written reports. Each has
its strengths and weaknesses; however, a combination of them increases both the number of input
sources and the probability of receiving reliable information.

(4) Compare actual performance with standards:

The fourth steps in the appraisal process is the comparison of actual performance with standards.
The attempt in this step is to note deviations between standard performance and actual
performance so that we can proceed to the fifth step in the process the discussion of the
appraisal with the employee.

(5) Discuss the appraisal with the employee:

One the most challenging tasks facing managers is to present an accurate appraisal to the
subordinate and then have the subordinate accept the appraisal in a constructive manner.

Appraising performance touches on one of the most emotionally charged activities the
assessment of another individuals contribution and ability. The impression that subordinates
receive about their assessment has a strong impact on their self-esteem and, very important, on
their subsequent performance. Of course, conveying good news is considerably less difficult for
both the manager and the subordinates than conveying the bad news that performance has been
below expectations. In this context, the discussion of the appraisal can have negative as well as
positive motivational consequences. This is reinforced, for example, when we recognize that
statistically speaking, half of all employees are below average.

(6) Initiate corrective action:

The final step in the appraisal is the initiation of corrective action when necessary. Corrective
action can be of two types. One is immediate and deals predominantly with symptoms. The other
is basic and delves into causes. Immediate corrective action is often described as putting out
fires, whereas basic corrective action gets to the source of deviation and seeks to adjust the
difference permanently.

Week: 12
Lecture No. : 24

Lecture Topic: Methods of performance appraisal


Absolute Standards
Essay Appraisal
Critical Incident Appraisal
Graphic Rating Scale
Forced Choice


The previous section described the appraisal process in general terms. We now want to move
from the general to the specific. In this section, we will look at how management can actually
establish performance standards and devise instruments that can be used to measure and appraise
an employees performance. Three different approaches exist for doing appraisals. Employees
can be appraised against (1) absolute standards, (2) relative standards, or (3) objectives. No one
approach is always best. Each has its strengths and weaknesses.

Absolute Standards: Our first group of appraisal methods use absolute standards. This
means that subjects are not compared with any other person. Included in this group are the
following methods: the essay appraisal, the critical incident appraisal, the checklist, the graphic
rating scale, forced choice and behaviorally anchored rating scales (BARS).

Essay Appraisal: Probably the simplest method of appraisal is to have the rater write a
narrative describing an employees strengths, weaknesses, past performance, potential, and
suggestions for improvement.
The strength of the essay appraisal lies in its simplicity. It requires no complex forms or
extensive training to complete. But its weaknesses are many. Because the essays are
unstructured, they are likely to vary widely in terms of length and content. This makes it difficult
to compare individuals across the organization. And, or course, some raters are better writers


than others. So a good or bad evaluation, may be determined as much by the raters writing
skill as by the employees actual level of performance.

However, the essay appraisal can provide considerable information, much of which can easily be
fed back and assimilated by the employee. But this method provides only qualitative data, and
HRM decisions improve when useful quantitative data are generated. The latter can be compared
and ranked more objectively. However, the essay appraisal is a good start and is beneficial if
used in conjunction with other appraisal methods.

Critical Incident Appraisal: Critical incident appraisal focuses the raters attention on
those critical or key behaviors that make the difference between doing a job effectively and
doing it ineffectively. What the appraiser does is write down little anecdotes that describe what
the employee did hat was especially effective or ineffective. For example, the college dean might
write the following critical incident about one of her instructors: Outlined the days lecture on
the chalkboard at the beginning of class. Note that with this approach to appraisal, specific
behaviors are cited, not vaguely defined personality traits. A behaviorally based appraisal such as
this should be more valid than trait-based appraisals because it is clearly more job related. It is
one thing to say that an employee is aggressive or imaginative or being done. Critical
incidents, with their focus on behaviors, judge performance rather than personalities.

The strength of the critical incident method is that it looks at behaviors. Additionally, a list of
critical incidents on a given employee provides a rich set of examples from which the employee
can be shown which of his or her behaviors are desirable and which ones call for improvement.
Its drawbacks are basically that (1) appraisers are required to regularly write these incidents
down, but doing this on a daily or even weekly basis for all of their subordinates is time
consuming and burdensome for managers; and (2) critical incidents suffer from the same
comparison problem found in essays; mainly, they do not lend themselves to quantification.
Therefore the comparison and ranking of subordinates is difficult.

Checklist: In the checklist, the evaluator uses a list of behavioral descriptions and checks off
those behaviors that apply to the employee. As figure 1.1 illustrates, the evaluator merely goes
down the list an gives yes or no responses.


Once the checklist is complete it is usually evaluated by the staff personnel department, not the
manager doing the checklist. Therefore the rater does not actually evaluate the employees
performance; he or she merely records it. An analyst in the personnel department then scores the
checklist, often weighting the factors in relationship to their importance. The final evaluation can
then be returned to the rating manager for discussion with the subordinate, or someone from the
personnel department can provide the feedback to the subordinate.

The checklist reduces some bias, since the rater and the scorer are different, but the rater can
usually pick up the positive and negative implications in each item so bias can still be
introduced. From a cost standpoint this appraisal method may be inefficient if there are a number
of job categories, because a checklist of items must be prepared for each category.

Graphic Rating Scale: One of the oldest and most popular methods of appraisal is the
graphic rating scale. An example of some graphic rating scale items is shown in Figure 1.2.



Quality of work is
the accuracy, skill
and completeness
of work.

Occasionally Consistently
unsatisfactory unsatisfactory satisfactory



Quantity of work
is the volume of
work done in a
normal workday

unsatisfactory unsatisfactory satisfactory






Job knowledge is
pertinent to the
job that an
individual should
have for
satisfactory job

about work

Occasionally Can answer

unsatisfactory most
about the job

directions and
company policies



Usually can
be counted on

all phases of
the job

very little

of all
phases of
the job


Figure 1.2: Sample of Graphic Rating Scale Items and Format

Graphic rating scales can be used to assess factors such as quantity and quality of work, job
knowledge, cooperation, loyalty, dependability, attendance, honesty, integrity, attitudes and
initiative. However, this method is most valid when abstract traits like loyalty or integrity are
avoided unless they can be defined in more specific behavioral terms. The assessor goes down
the list of factors and notes that point along the scale or continuum that best describes the
employee. There are typically five to ten points on the continuum. In the design of the graphic
scale, the challenge is to ensure that both the factors evaluated and the scale points are clearly
understood and unambiguous to the rater. Should ambiguity occur bias is introduced.
Why are graphic rating scales popular? Though they do not provide the depth of information that
essays or critical incidents do, they are less time-consuming to develop and administer, they
permit quantitative analysis and comparison, and, in contrast to the checklist, there is greater
standardization of items so comparability with other individuals in diverse job categories is

Forced Choice: When you were in elementary or secondary school, did you ever complete
one of those tests that presumably was to give you insights into what kind of career you should
pursue? They had questions like: Would you rather go to a football game with a group of your
friends or stay home and read a nonfiction book in your room? If so, then you are familiar with
the forced choice format.

Week: 13
Lecture No. : 25

Lecture Topic: Effectively Evaluation Employees

Evaluation Employees
Generate a Development Plan


Methods of performance appraisal: Effectively Evaluation Employees

Intro: The forced choice appraisal is a special type of checklist, but the rater has to choose
between two or more statements, all of which may be favorable or unfavorable. The appraisers
job is to identify which statement is most (or in some cases least) descriptive of the individual
being evaluated. For instance, students evaluating their college instructor might have to choose


Patient with slow learners

Lectures with confidence
Keeps interest and attention of class
Acquaints classes in advance with objectives for each class

All the above statements are favorable. However, the choices might all be unfavorable. As with
the checklist method, to reduce bias, the right answers are not known to the rater. Someone in the
personnel department scores the answers based on the key. This key should be validated so
management is in a position to say that individuals with higher scores are better-performing

The major advantage to the forced choice method is that since the appraiser does not know the
right answers, it reduces bias and distortion. The appraiser may, for example, like a certain
employee and intentionally want to give her a favorable evaluation, but this becomes difficult if
one is not sure which response is most preferred. On the negative side, this method tends to be
disliked by appraisers. Many do not like being forced to make distinctions between statements
that are difficult to differentiate between. Raters also may become frustrated with a system where
they do not know what represents a good or bad answer; hence they may be relegated to
trying to second-guess they key in order to get the formal appraisal to align with their intuitive

Behaviorally Anchored Rating Scales: An approach that has received considerable attention by
academics in recent years involves behaviorally anchored rating scales. These scales combine
major elements from the critical incident and graphic rating scale approaches. The appraiser rates
the employees based on items along a continuum, but the points are examples of actual behavior

on the given job rather than general descriptions or traits. The enthusiasm surrounding BARS
grew from the belief that the use of specific behaviors, derived for each job, should produce
relatively error-free and reliable ratings. Though this promise has not been fulfilled, it has been
argued that this may be partly due to departures from careful methodology in the development of
the specific scales themselves rather than to inadequacies in the concept.

Behaviorally anchored rating scales specify definite, observable, and measurable job behavior.
Examples of job-related behavior and performance dimensions are generated by asking
participants to give specific illustrations of effective and ineffective behavior regarding each
performance dimension. These behavioral examples are then retranslated into appropriate
performance dimensions. Those that are sorted into the dimension for which they were generated
are retained. The final group of behavior incidents are then numerically scaled to a level of
performance that each is perceived to represent. The incidents that are retranslated and have high
rater agreement on performance dimension. The results of the above processes are behavioral
descriptions, such as anticipates, plans, executes, solves immediate problems, carries out orders,
and handles emergency situations.

The research on BARS indicates that while it is far from perfect, it does tend to reduce rating
errors. But possibly its major advantage stems from the dimensions generated rather than from
any particular superiority of behavior over trait anchors. The process of developing the
behavioral scales is valuable in and of itself for clarifying to both the employee and the rater
which behaviors connote good performance and which connote bad. Unfortunately, it too suffers
from the distortions inherent in most rating methods. These distortions will be discussed later in
this chapter.

Effectively Evaluation Employees:

How does one properly conduct the performance appraisal process? We offer the following steps
that can assist in this endeavor.

(1) Prepare for, and Schedule, the Appraisal in Advance: Before meeting with
employees, some preliminary activities should be performed. You should at a minimum
review employee job descriptions, period goals that may have been set, and performance


data on employees you may have. Furthermore, you should schedule the appraisal well
in advance to give employees the opportunity to prepare their data, too, for the meeting.

(2) Create a Supportive Environment to Put Employees at Ease: Performance appraisals

conjure up several emotions. As such, every effort should be made to make employees
comfortable during the meeting, such that they are receptive to constructive feedback.
(3) Describe the Purpose of the Appraisal to Employees: Make sure employees know
precisely what the appraisal is to be used for. Will it have implications for pay increases,
or other personnel decisions? If so, make sure employees understand exactly how the
appraisal process works, and its consequences.
(4) Involve the Employee in the Appraisal Discussion, Including a Self-Evaluation:
Performance appraisals should not be a one-way communication event. Although as
supervisor, you may believe that you have to talk more in the meeting, that neednt be
the case. Instead, employees should have ample opportunity to discuss their
performance, raise questions about the facts you raise, and add their own
data/perceptions about their work. One means of ensuring that two-way communications
occurs is to have employees conduct self-evaluation. You should actively listen to their
assessment. This involvement helps to create an environment of participation.
(5) Focus Discussion of Work Behaviors, Not on the Employees: One way of creation
emotional difficulties is to attack the employee. Being such, you should keep your
discussion on the behaviors youve observed. Telling an employee, for instance that his
report stinks doesnt do a thing. Thats not focusing on behaviors. Instead, indicating that
you believe that not enough time was devoted to proofreading the report describes the
behavior you may be having a problem with.
(6) Support Your Evaluation with Specific Examples: Specific performance behaviors
help clarify to employees the issues you raise. Rather than saying something wasnt
good (subjective evaluation) you should be as specific as possible in your explanations.
So, for the employee who failed to proof the work, describing that the report had five
grammatical mistakes in the first two pages alone would be a specific example.
(7) Give Both Positive and Negative Feedback: Performance appraisals neednt be all
negative. Although there is a perception that this process focuses on the negative, it
should also be used to compliment and recognize good work. Positive, as well as
negative, feedback helps employees to gain a better understanding of their performance.
For example, although the report was not up to the quality you expected, the employee
did do the work and completed the report in a timely fashion. Thats behavior that
deserves some positive reinforcement.

(8) Ensure Employees Understand What Was Discussed in the Appraisal: At the end of
the appraisal, especially where some improvement is warranted, you should ask
employees to summarize what was discussed in the meeting. This will help you to ensure
that you have gotten your information through to the employee.

Generate a Development Plan: Most of the performance appraisal revolves around

feedback and documentation. But, another component is needed. Where development efforts are
encouraged, a pain should be developed to describe what is to be done, by when, and what you,
the supervisor, will commit to aid in the improvement enhancement effort.

Week: 13
Lecture No. : 26

Lecture Topic: Factors that can distort appraisal

Leniency Error
Halo Error
Similarity Error
Low Appraiser Motivation
Central Tendency


The performance appraisal process and techniques that we have suggested present systems in
which the evaluator is free from personal biases, prejudices, and idiosyncrasies. This is defended
on the basis that objectivity minimizes the potential arbitrary and dysfunctional behavior of the
evaluator, which may be detrimental to the achievement of the organizational goals. Thus, our
goal should be to use direct performance criteria where possible.

It would be native to assume, however, that all evaluators impartially interpret and standardize
the criteria upon which their employees will be appraised. This is particularly true of those jobs
that are not easily programmable and for which developing hard performance standards is most
difficult if not impossible. These would include, but are certainly not limited, to such jobs as
researcher, teacher, engineer, and consultant. In the place of such standards, we can expect
appraisers to use nonperformance or subjective criteria against which to evaluate individuals.

A completely error-free performance appraisal is only an ideal we can aim for. In reality, most
appraisals fall short of this ideal. This is often due to one or more actions that can significantly
impede objective evaluation. Weve briefly described them below.


Leniency Error:
Every evaluator has his or her own value system that acts as a standard against which appraisals
are made. Relative to the true or actual performance an individual exhibits, some evaluators mark
high, while others mark low. The former is referred to as positive leniency error, and the latter as
negative leniency error. When evaluators are positively lenient in their appraisal, an individuals
performance becomes overstated. In doing so, the performance is rated higher than it actually
should be. Similarly, a negative leniency error understates performance, giving the individual a
lower appraisal.

If all individuals in an organization were appraised by the same person, there would be no
problem. Although there would be an error factor, it would be applied equally to everyone.

The difficulty arises when we have different raters with different leniency errors making
judgments. For example, assume a situation where both Jones and Smith are performing the
same job for a different supervisor, with absolutely identical job performance. If Joness
supervisor tends to err toward positive leniency while Smiths supervisor errs towards negative
leniency, we might be confronted with two dramatically different evaluations.

Halo Error
The halo error or effect is a tendency to rate high or low on all factors due to the impression of a
high or low rating on some specific factor. For example, if an employee tends to be conscientious
and dependable, we might become biased toward that individual to the extent that we will rate
him or her positively on many desirable attributes.

People who design teaching appraisal forms for college students to fill out in evaluating the
effectiveness of their instructor each semester must confront the halo effect. Students tend to rate
a faculty member as outstanding on all criteria when they are particularly appreciative of a few
things he or she does in the classroom. Similarly, a few bad habits like showing up late for
lectures, being slow in returning papers, or assigning an extremely demanding reading
requirement might result in students evaluating the instructor as lousy across the board.

One method frequently used to deal with the halo error is reserve working the evaluation
questions so that a favorable answer for, say, question 17 might be 5 on a scale of 1 to 5, while a

favorable answer for question number 18 might be 1 on a scale of 1 through 5. Structuring the
questions in this manner seeks to reduce the halo error by requiring the evaluator to consider
each question independently. Another method, which can be used where there is more than one
person to be evaluated, is to have the evaluator appraise all rates on each dimension before going
on the next dimension.

Similarity Error:
When evaluators rate other people in the same way that the evaluators perceive themselves, they
are making a similarity error. Based on the perception that evaluators have of themselves, they
project those perceptions onto others. For example, the evaluator who perceives himself or
herself as aggressive may evaluate others by looking for aggressiveness. Those who demonstrate
this characteristic tend to benefit, while others who lack it may be penalized.

Low Appraiser Motivation:

What are the consequences of the appraisal? If the evaluator knows that a poor appraisal could
significantly hurt the employees future particularly opportunities for promotion or a salary
increase the evaluator may be reluctant to give a realistic appraisal. There is evidence that it is
more difficult to obtain accurate appraisals when important rewards depend on the results.

Central Tendency:
It is possible that regardless of who the appraiser evaluates and what traits are used, the pattern
of evaluation remains the same. It is also possible that the evaluators ability to appraise
objectively and accurately has been impeded by a failure to use the extremes of the scale. When
this happens, we call the action central tendency. Central tendency is the reluctance to make
extreme ratings (in either direction) the inability to distinguish between and among ratees; a form
of range restriction. Rates who are prone to the central tendency error are those who continually
rate all employees as average. For example, if a supervisor rates all employees as 3, on a scale of
1 to 5, then no differentiation among the employees exists. Failure to rate employees as 5, for
those who deserve that rating, and as 1, if the case warrants it, will only create problems,
especially if this information is used for pay increases.

Week: 14
Lecture No. : 27

Lecture Topic: Compensation Administration

The types of employee rewards
Intrinsic versus Extrinsic Rewards
Financial versus Non-financial Rewards

Compensation Administration:
Employees exchange work for rewards. Probably the most important reward, and certainly the
most obvious, is money. In this section we want to answer the question. How much should an
employee be paid? The search for this answer throws us directly into the topic of compensation
The goals of compensation administration are to design the lowest-cost pay structure that will
attract, motivate, and retain competent employees, and that also will be perceived as fair by these
employees. Fairness is a term that frequently arises in the administration of an organizations
compensation program. Organizations generally seek to pay the least that they have to in order to
minimize costs. So fairness means a wage or salary that is adequate for the demands and
requirements of the job. But, of course, fairness is a two-way street. Employees also want fair
compensation. If employees perceive an imbalance in the discussion of their input-outcome ratio
to some comparative standard, they will act to correct the inequity. So the search for fairness in
pursued by both employers and employees.
The types of employee rewards:
There are several ways to classify rewards. We have selected three of the most typical
dichotomies: intrinsic versus extrinsic rewards, financial versus non-financial rewards, and
performance-based versus membership-based rewards. As you will see, these categories are far
from being mutually exclusive, yet all share one common thread they assist in maintaining
employee commitment.

Intrinsic versus Extrinsic Rewards:

Intrinsic rewards are the personal satisfaction one gets from the job itself. These are self-initiated
rewards, such as having pride in ones work, having a feeling of accomplishment, or being part
of a work team. Job enrichment, can offer intrinsic rewards to employees by making work seem
more meaningful. Extrinsic rewards, on the other hand, external to the job and come from an
outside source, mainly management. For example, Apple Computer gives a PC to each of its
employees. After one year on the job, the PC becomes the employees personal property.
Consequently, if an employee experiences feelings of achievement or personal growth from a
job, we would label such rewards as intrinsic. If the employee receives a salary increase or a
write-up in the company magazine, we would label these rewards as extrinsic. The general
structure of rewards has been summarized in Exhibit 1.1.





Participate in
decision making

Greater job


freedom and

Performanced-based membership-based






Cost of living














Pay for time


for personal

not worked
















Merit pay




Exhibit 1.1: Structure of rewards

Financial versus Nonfinancial Rewards:

Rewards may or may not enhance the employees financial well-being. If they do, they can do
this directly through for instance, wages, bonuses, or profit sharing or indirectly through
employer-subsidized benefits such as pension plans, paid vacations, paid sick leaves, and
purchase discounts.


Nonfinancial rewards cover a smorgasbord of desirable extras that are potentially at the
disposal of the organization. Their common link is that they do not increase the employees
financial position. Instead of enhancing the employees finances, nonfinancial rewards
emphasize making life on the job more attractive. The nonfinancial rewards emphasize that we
will identify represent a few of the more obvious; however, the creation of these rewards is
limited only by HRMs ingenuity and ability to use them to motivate desirable behavior.
The saying, One persons food is another persons poison, applies to the entire subject of
rewards, but specifically to the area of nonfinancial rewards. What one employee views as
something Ive always wanted, another might find relatively useless. Therefore, HRM must
take great care in providing the properly, the benefits by way of increased performance to the
organization should be significant.
Some, workers, for example, are very status conscious. A plush office, a carpeted floor, a large
cherry desk, or signed artwork may be just the office furnishing that simulates an employee
toward top performance. Similarly, status-oriented employees may value an impressive job title,
their own business cards, their own administrative assistant, or a well-located parking space with
their name clearly pained underneath the Reserved sign. In another case, the employee may
value the opportunity to dress casually while at work, or even do a portion of ones job at home.
Irrespective of the incentive, these are within the organizations discretion. And when carefully
used, they may provide a stimulus for enhanced performance.


Week: 14
Lecture No. : 28

Lecture Topic: Insurance policy & Insurance Contract

Job Evaluation
Methods of Job Evaluation

Performance-based versus Membership-based Rewards

The rewards that the organization allocates can be said to be based on either performance or
membership criteria. While HR representatives in many organizations will vigorously argue that
their reward system pays off for performance, you should recognize that this isnt always the
case. Few organizations actually reward employees based on performance a point we will
discuss later in this chapter. Without question, the dominant basis for reward allocations in
organizations is membership.
Performance-based rewards are exemplified by the use of commissions, piecework pay plans,
incentive systems, group bonuses, merit pay, or other forms of pay-for-performance plans. On
the other hand, membership-based rewards include cost-of-living increases, benefits, and salary
increases attributable to labor market conditions, seniority or time in rank, credentials (such as
a college degree or a graduate diploma), or future potential (e.g. the recent MBA out of a
prestigious university). The key point here is that membership-based rewards are generally
extended regardless of an individuals groups, or organizations performance. The difference
between the two is not always obvious. In practice, performance may be only a minor
determinant of rewards, despite academic theories holding that high motivation depends on
performance-based rewards.

Job Evaluation:
Job analysis as the process of describing the duties of a job, authority relationships, skills
required, conditions of work, and additional relationships, skills required, conditions of work,
and additional relevant information. We stated that the data generated from job analysis could be
used to develop job descriptions and specifications, as well as to do job evaluation. By job

evaluation, we mean using the information in job analysis to systematically determine the value
of each job in relation to all jobs within the organization. In short, job evaluation seeks to rank all
the jobs in the organization and place them in a hierarchy that will reflect the relative worth of
each. Importantly, this is a ranking of jobs, not people. Job evaluation assumes normal
performance of the job by a typical worker. So, in effect, the process ignores individual abilities
or the performance of the jobholder.

The ranking that results from job evaluation is the means to an end, not an end in itself. It should
be used to determine the organizations pay structure. Note that we say should. In practice, we
will find that this is not always the case. External labor market conditions, collective bargaining,
and individual differences may require a compromise between the job evaluation ranking and the
actual pay structure. Yet even when such compromises are necessary, job evaluation can provide
an objective standard from which modifications can be made.

Methods of Job Evaluation:

There are four basic methods of job evaluation currently in use: ranking, classification, factor
comparison, and point method.

Ranking method:
The ranking method requires a committee typically composed of both management and
employee representatives to arrange jobs in a simple rank order, from highest to lowest. No
attempt is made to break the jobs down by specific weighted criteria. The committee members
merely compare two Jobs and judge which one is more important or difficult. Then they
compare another job with the first two, and so on until all the jobs have been evaluated and

The most obvious limitation to the ranking method is its sheer unmanageability when there are a
large number of jobs. Imagine the difficulty of trying to rank hundreds or thousands of jobs.
Other drawbacks to be considered are the subjectivity of the method there are no definite or
consistent standards by which to justify the rankings and because jobs are only ranked in terms
of order, we have no knowledge of the distance between the ranks.

Classification Method:

The classification method was made popular by the U.S. Civil Service Commission. The
commission requires that classification grades be established. These classifications are created by
identifying some common denominator skills, knowledge, responsibilities-with the desired
goal being the creation of a number of distinct classes or grades of jobs. Examples might include
shop jobs, clerical jobs, sales jobs, and so on, depending, of course, on the type of jobs the
organization requires.
Once the classifications are established, they are ranked in an overall order of importance
according to the criteria chosen, and each job is placed in its appropriate classification. This latter
action is generally done by comparing each positions job description against the classification
description. In the civil service, for example, evaluators have classified both Accounting Clerk I
and Typists II positions as GS 3 grades, while Engineer VI and Attorney IV Jobs have both been
graded as GS-13.
The classification method shares most of the disadvantages of the ranking approach, plus the
difficulty of writing classification descriptions, judging which jobs go where, and dealing with
jobs that appear to fall into more than one classification. On the plus side is the fact that the
classification method has proved itself successful and viable in classifying millions of kinds and
levels of jobs in the civil service.

Week: 15
Lecture No. : 29

Lecture Topic: Benefit

Definition of Benefit
Objectives of the emloyee benefits
Inflation protection
Coverage for domestic partners

Definition of Benefit:
When an organization is designing its overall compensation program, one of the critical areas of
concern is what benefits should be provided. Todays workers expect more than just an hourly
wage or a salary from their employer; they want additional considerations that will enrich their
lives. These considerations in an employment setting are called employee benefits. Employee
benefits have grown in importance and variety over the past several decades. Once perceived as
an added feature for an organization to provide its employees, employee benefits administration
has transformed itself into a well-thought-out, well organized package. Employers realize that
the benefits provided to employees have an effect on whether applicants accept their employment
offers or, once employed, whether workers will continue to stay with the organization. Benefits,
therefore, are necessary components of an effectively functioning compensation program.
The irony, however, is that while benefits must be offered to attract and retain good workers,
benefits as a whole do not directly affect a workers performance. Benefits are generally
membership-based, offered to employees regardless of their performance levels. While this does
not appear to be a logical business practice, there is evidence that the absence of adequate
benefits and services for employees contributes to employee dissatisfaction and increased
absenteeism and turnover. Accordingly, because the negative effect of failing to provide adequate
benefits is so great, organizations spend tens of billions of dollars annually to ensure that
valuable benefits are available for each worker.

Objectives of the emloyee benefits:


Societal, organizational, and employee objectives are sought through the use of indirect

Societal Objectives:
Within the last century, Europe, Japan, and North America have changed from rural nations of
independent farmers and ranchers to urban nations of interdependent wage earners. This
interdependence was illustrated forcefully by massive unemployment during the Great
Depression of the 1930s and the recession of the early 1990s. To help provide security,
governments rely on the support of employers. Through favorable tax treatment, employees can
receive most benefits tax-free, while employers can deduct the cost of benefits as a business
expense. Although tax breaks reduce government receipts, health-care, disability, life insurance,
and retirement benefits lower the burden on society when ill health, retirement, or death occurs.
Even if these tax breaks are eliminated, benefits are so widely used that they are almost certain to

The great struggle for the American society during the 1990s will be the continued assault on
rising medical costs. As fortune noted, An aging population with nearly unlimited access to
high-priced doctors and technology is pushing medical costs skyward.

Organizational Objectives:
Time-off benefits such as vacations, holidays, and rest breaks help employees reduce fatigue,
enhancing productivity during the hours when the employees do work. Similarly, retirement,
health-care, and disability benefits may allow workers to be more productive by freeing them of
concern about medical and retirement costs. If these benefits were not available, employees
might elect to form a union and collectively bargain with the employer. (Although collective
action is legal, employers such as Intel prefer to remain nonunion).

Reduce Fatigue

Discourage labor unrest

Satisfy employee objectives

Aid recruitment

Reduce turnover

Minimize overtime costs

Employee Objectives:
The real advantages to employees of employer-provided benefits are lower costs and availability.
For example, insurance benefits are usually less expensive because the employer may pay some
or all of the costs, as Intel does. Group plans save the cost of administering and selling many
individual policies. The insurer also can reduce the risk of adverse selection, which occurs when
individuals sign up for insurance because they are heavy users. Actuaries the specialists who
compute insurance rates can pass on these savings in the form of smaller premiums even if
workers pay the entire premium.
Inflation protection: Inflation protection also results when the employer pays for a benefit.
For example, a two-week paid vacation is not reduced in value by inflation.
Preexisting conditions often prevent people from obtaining insurance because it is unavailable
or unaffordable although health-care reform in the United States is likely to reduce the incidence
of unavailability. In the European Union, Canada, Sweden, and other developed nations, healthcare insurance may be of less importance because of government-provided health insurance or
Coverage for domestic partners: Domestic partnership coverage is emerging as a new
benefit for employees, especially with the growing diversity of workers and their relationships.
Usually benefit coverage is extended to the employee, spouse, and children, depriving nonfamily
members of coverage regardless of their relationship with the employee. Some employers extend
benefit coverage to domestic partners regardless of whether they are married.
The objectives of society, organizations, and employees have encouraged the rapid growth of
benefits and services. This growth has affected all areas of fringe benefits and services. This
growth has affected all areas of fringe benefits and services, including insurance, security, timeoff, and work scheduling benefits.

Week: 15
Lecture No. : 30

Lecture Topic: Categories of benefit plans


Required/Mandatory Security
Voluntary security
Time-off related benefits
Holiday Pay


Most companies today offer a wide variety of benefits, especially larger companies. Some of the
benefits are compulsory. For the composition of benefit plans there are many major categories of
benefit plans may be offered. They are as follows:

Required or mandatory security


Voluntary security


Retirement - related security


Time-off security


Health insurance


Financial service


Social & recreational service

Required/Mandatory Security:
Federal & state government requires that employers provide a certain limit of protection or a
security floor for each employee. There are three primary area of compulsory security:


Workers compensation
Unemployment compensation
Social security benefit

Voluntary security:
Two of the major security benefit programs used by employers are voluntary severance pay and
supplemental unemployment benefits. Severance pay is pay given to the employee at
termination. Its purpose is to provide funds to tide the employee over until he or she finds
another job. The amount varies from several weeks of pay for hourly workers to several workers
to several year worth of salary for executive.

Golden parachutes, a form of severance pay, are paid to execute as a form of compensation if
they are terminated during a hostile takeover. Executives who fears hostile takeover often are
able to obtain a golden parachute clause in their contact.
The second form of voluntary security is supplemental unemployment benefits. These are
payments made by the employer to employees who are temporarily laid off. They are made in
addition to unemployment compensation received from the state.

Over 90 percent of full-time workers at companies with more than 100 employees are covered by
retirement plans, according to the employee benefits Research institute. Pension plan are
considered rewards for long service and are not incentives to work more efficiently of effectively
unless the premium is tied to a stock option plan , as scars is . Pension plans are used primarily to
retain a loyal workforce.

Time-off related benefits:

Holiday pay


Leave of absence
Holiday Pay:
Most employers provide pay for all established holidays such as New Year's. Day, Memorial
Day, and Fourth of July. Other firm also provides holiday pay for Christmas.

Most employers offer paid vacations that range from one to six weeks per year. Depending on
length of time with the company. in one poll, employees rated paid vacations and holidays as the
third most important benefit behind medical insurance and pension.

Week: 16
Lecture No. : 31

Lecture Topic: Leave Of Absence

Health and insurance related benefit

Health Benefit
Non medical insurance benefit
Financial, Social, and Recreational benefits
Non-financial benefits
Stock benefit
ESOP (Employee Stock Ownership Plan)

Leaves are given for military service, jury duty, election, disability, sickness and maternity.
Longer leaves called sabbaticals are also given for renewal or special service.

Health and insurance related benefit:

Employers offer are various types of coverage including medical, disability, dental, life, and auto
insurance. Maintaining adequate coverage while keeping cost within bound is a challenge for

Health Benefit:

Cost containment method

Employee co-payment

Employee payment of deductible

Self funded insurance

Wellness program


Providing more information

Restriction on psychiatric and substance abuse program

Non medical insurance benefit:

Besides health related insurance employees also provide can other forms of insurance. According
to a recent survey by the international certified society. of employee benefit specialists, life
insurance is offered by more employers than any other product.

Financial, Social, and Recreational benefits:

Non financial benefits
Stock benefits
Educational benefits
Child-care benefits
Elder care
Cafeteria plan
Family friendly benefits
Non-financial benefits:
The use of a company car, company expense account, club membership, help in buying and
selling a home and the use of company owned resort condominiums are example of perks
available to manager, executives, and some employees.

Stock benefit:

Employee thrift, saving, or stock purchase investment plan are also popular. For example in a
stock option plan an employee is often guaranteed the right to buy share of company stock at a
discount or a certain price.

ESOP (Employee Stock Ownership Plan):

When stock is provided as a pan of profit-sharing plan an employee stock ownership plan is

Educational Benefit:
Many firms offer. a tuition reimbursement plan for employees who attend a school, college or
university. Usually the firm requires that the employee take a course related to work.

Child care benefit:

Working women with small children have become very common in our society. Although only
six percent of surveyed employees offered sponsored child care in 1987, one study shows that 66
percent of surveyed benefit directors saw child care as a major growth area.

Elder care:
A study of benefit directors in 1988 indicated that 77 percent of them believed that elder care
-care of the elderly-will is a major growth benefit in the 1900s.

Cafeteria plan:
Because of the variety of options in the benefit area many employers have shifted to or are
considering cafeteria plan. As noted earlier cafeteria plan allows employees to pick and choose
from a variety of benefit options much as a person choose food at a cafeteria.

Trends in Benefits and Services:


Benefits have become something other than the once thought of fringe. Employees expect
certain extras to be the norm rather than the exception. Cognizant of these requirements and
competition from other business, management has had to develop cost-effective methods to offer
and service these benefits. The most widely used prescription has been the cafeteria style of
benefits. The cafeteria approach allows employees to pick and choose those benefits that are
desirable. The use of the cafeteria style approach to benefits will undoubtedly continue, with the
most popular offering being some core benefits to be are required for all employees, and the
remainder of the monies to be spent on benefits left to the decision of each employee. The
advantages of the cafeteria approach to benefits has been supported by many research studies, as
we can show that people do have different needs according to their age, financial and family
position, attitudes, and life style. Younger employees tend to favor benefits that can be of
frequent or immediate use, such as vacation days, holidays, and flexible working hours. Older
employees are usually security conscious, preferring life insurance and retirement related

As for the other trends we can expect the burden of paying for these benefits to shift to one that
is more equitably shared between the employee and the employer. Health care is a primary
example. While it may cost more to subscribe to health coverage, the cost is still minimal
compared with the costs of a disastrous illness.

Finally, we must realize that employees may be paying more for or getting less of the benefits
that employees may be paying more for or getting less of the benefits that employers offer.
Economic hardships are a reality, and cost-cutting measures are mandated. Employees must be
willing to accept less if they are to progress in the future. The paternalistic perception of an
organization must be changed, and employees must be willing to share more responsibility for
their well-being.

Week: 16
Lecture No. : 32

Lecture Topic: Stress & Burnout

Definition of Stress
Causes of stress

Symptoms of Stress
Physiological Symptoms
Psychological Symptoms
Behavioral Symptoms


Definition of Stress:
Stress is a dynamic condition in which an individual is confronted with an opportunity,
constraint, or demand, related to what he or she desires, and for which the outcome is perceived
to be both uncertain and important. This definition is complicated, so lei us look at it more
Stress can manifest itself in both a positive and a negative way. Stress is said to be positive when
the situation offers an opportunity for one to gain something. The "psyching-up" that an athlete
goes through can be stressful, but this can lead to maximum performance. It is when constraints
of demands are placed on us that
become negative. Let us explore those two features-constraints and demands.

Causes of stress:
Stress can be caused by a number of factors called stressors. These stressors can be grouped into
two major categories-personal factors and organizational factors. Both of these areas directly
affect the person and, ultimately, the job. For that reason, we will postpone our discussion of
organizational factors and cover them in the "burnout" section of this chapter. However, because
personal factors affect and are affected by organizational factors, we will address them now.
Almost anything can cause stress for an individual. We all have our levels of resistance, but once
the stressors become too great, we exhibit some different behavior. The main fact to remember
about stress from, personal factors is that the good can cause as much stress as the bad. Certainly
we all know that the death of a family member, a divorce, or being fired from work can cause
undue stress, but so can the birth of a child, getting married, or landing that new job. For ex140

ample, remember the time you finally got that date with the person of your dreams? A happy
time? Yes. But what did you go through to get ready for it? You debated over what clothes to
wear, where to go, whether you looked good, and so on. You were nervous when you finally
arrived to get your date, or when the doorbell rang and your date arrived. At the end it was such a
good time, but this good time caused you a lot of stress.
If we are under stress, we can exhibit one or more of three symptoms: physiological,
psychological, or behavioral.

Symptoms of Stress:
Because stress can show itself in many ways, it is important for us to recognize how stress can,
be identified.

Physiological Symptoms: This type of stress is difficult to detect with the naked eye. It relates
to the medical changes that can occur internally in the individual. Such changes as increased
heart and breath rates, higher blood pressure, headaches, and heart attacks can be brought on by
stress but are not easy for us to spot early. Accordingly, they become less important for us with
respect to helping individuals change their actions.

Psychological Symptoms: This type of stress can cause harm in an organization because it leads
to significant dissatisfaction with the job. This symptom manifests itself as tension, anxiety,
boredom, and procrastination.

Behavioral Symptoms: This type of stress has the greatest impact on the organization. It
produces productivity changes, absenteeism, turnover-and increased smoking and alcohol

If you are in an oirganizati6n where these symptoms are evident, there may be some action you
can take to help reduce these levels. For personal factors, we can try to get people to recognize
the need for assistance and provide that assistance for them. This may include special programs
such as stress management or sponsoring physical activities. Whatever is chosen, the emphasis
on the result should be the same-try to keep the employees healthy.


Between 1974 and 1982, forty-eight attempts were made to define burnout. While each of these
attempts focused on a specific aspect of burnout, it was not until 1982 that a coalesced definition
appeared. This definition views burnout as a function of three concerns: Chronic emotional
stress with

(a) emotional and/or physical exhaustion,

(b) lowered job productivity, and
(c) over depersonalization.
Note that none of the three concerns include long-term boredom. While this is often referred to
as burnout, it is not. Let us look at these three concerns in more depth.

Emotional and/or physical exhaustion is an inner condition caused by various personal and
organizational factors. Personal factors. such as marital, legal, or financial problems, may
become so paramount in a worker's life that he or she tends to give up. As these problems
become manifest, the worker begins to feel even more helpless and loses sight of reality,
resulting in a change of behavior. Emotional exhaustion can also manifest itself when workers
who are in the business of dealing with other people lose their ability to, be at peak performance
in dealing with others. When this results, they begin to feel inadequate in handling various
situations and ultimately change their behavior. Physical exhaustion, on the other hand, speaks
for itself. When high-energy is needed but lacking, performance will be affected. Think of the
professional boxer who in order to get a title shot, schedules one fight after another. This
physical torture, whether the fighter wins or not, may take its toll and affect the final goal.

Lowered job productivity can be a cause and a result. As a cause, it becomes demeaning.
Workers generally like to produce. When workers keep busy, they find they can achieve positive
results-salary increases, recognition, advancement-and the time spent at work seems shorter. The
adage that productive workers are happy workers has an impact, as workers are motivated by the
challenge. However, as constraints and demands emerge and lower this productivity, problems
occur. These constraints and demands impinge on the workers' welfare, making them less,
productive, less happy, and, ultimately, less motivated.

The final concern is over depersonalization. After years of technological advancements, we are
finding that by dehumanizing jobs we are causing an undue hardship on the remaining workers.

This automation, coupled with many rules and regulations and lack of interpersonal
relationships, has led to the early burnout of workers.

Week: 17
Lecture No. : 33

Lecture Topic: Reducing Burnout

Safety and Health Program
The Occupational Safety and Health Act
Safety Programs


Realizing that stress is a fact of life and must be channeled properly, organizations must establish
procedures for reducing these stress levels before workers burnout. Although no clear-cut
remedies are available, four techniques have been proposed:

1. Identification: Identification techniques for the analysis of the incidence, prevalence, and
characteristics of burnout in individuals, work groups, subunits, or organizations.
2. Prevention: Attempts to prevent the burnout process before it begins.
3. Mediation: Procedures for slowing, halting, or reversing the burnout process.
4. Remediation: Techniques for individuals who already burned out or are rapidly
approaching the end stages of this process.

Safety and Health Program:

Management has a responsibility to ensure that the workplace is free from unnecessary hazards
and that conditions surrounding the workplace are not hazardous to employees physical or
mental health. Of course, accidents can and do occur on many jobs, and the severity of these may
astound you. There are approximately 20 million work-related injuries each year, 390,000 workrelated illnesses, and 100,000 work-related deaths. These numbers have an even greater impact
when you consider that 48,380 individuals died a violent death in 1983 as a result of a crime, or
that 47,318 individuals were killed in combat during the entire Vietman War Period, 1959-83. So,
while it may sound heartless, all employers are concerned about employees health and safety if
for no other reason than accidents cost money. However, from a moral standpoint employers
have an obligation to maintain a workplace that will facilitate the operation of the work tasks
employees are assigned and will minimize any negative aspects of situations affecting the
employees health and safety.

From the turn of the century through the late 1960s, remarkable progress was made in reducing
the rate and severity of job-related accidents and diseases. Yet the most significant piece of
federal legislation in the area of employee health and safety was not enacted until 1970.

The Occupational Safety and Health Act:


Any discussion of employee health and safety is clearly different today from what it would have
been thirty years ago. The passage of the Occupational Safety and Health Act (OSHA) in 1970
dramatically changed the role that management must play in ensuring that the physical working
conditions meet adequate standards. What the Civil Rights Act did to alter the organizations
commitment to affirmative action OSHA has done to alter organizations health and safety

Safety Programs:
Managers are not exempt from acting within the law. As a result, they must ensure that the
physical working conditions in their organizations meet the minimum standards of the law.
Specifically, this includes OSHAs standards, plus all state and community requirements that may
exist. On close examination we find that a vast number of organizations go considerably beyond
the minimum standards of the law.

If businesses are concerned with efficiency and profits, you may ask, why would they spend
money to create conditions that exceed those required by law? The answer is the profit motive
itself. The cost of accidents can be, and for many organizations is, a substantial additional cost of
doing business.

The direct cost of an accident to an employer shows itself in the organizations workers
compensation premium. This cost, as noted in the preceding chapter, is determined by the
insureds accident history. Indirect costs, which generally far exceed direct costs, must also be
borne by the employer. These include wages paid for time lost due to injury, damage to
equipment and materials, personnel to investigate and report on accidents, and lost production
due to work stoppages and personnel changeover. The impact of these indirect costs can be seen
from statistics that describe the costs of accidents for American industry as a whole. In 1983,
workers compensation cost employers approximately $ 18 billion. Accidents additionally cost
employers billions in wages and lost production. The significance of this latter figure is
emphasized when we note that this cost is approximately ten times greater than losses caused by
strikes, an issue that has historically receive much more public attention.


Week: 17
Lecture No. : 34

Lecture Topic: Industrial relation

Definition of Industrial Relation
Definition of Trade Union
Specific Goals
Maintenance of Membership


Definition of Industrial Relation:
The term Industrial relations has been variously defined by different writers. Industrial
relations means the nature of relationship between the employer and employee in an industrial

According to Prof. Dunlop, Industrial relations defined as the complex of interrelations among
workers, managers and Government.
According to V.B Singh, IR is a set of functional interdependence involving historical, economic
,social, psychological, demographic, technological, occupational, political and legal variables.
According to Encyclopedia Britannica, Industrial relations include individual relations and
joint consultation between employers and work people at the place of work, collective relations
between employers and the organizations and the trade unions and the part played by the state in
regulating these relations.

According to Biswanath Ghosh Industrial relations is an art, the art of living together for
purposes of production.

It may be seen that the basic feature of the various definitions of IRs mentioned above, in spite of
the differences in words, remain the same. Thus industrial relations includes-

the relations between employers and employees at the plant level.

the relation between the various unions.

the relations between employers or their organizations and trade unions at various level
(Level of plant, region or industry and national level)

the relation between the state and the unions.


the relation between the employers and the government.

Definition of Trade Union:

A union is an organization of workers acting collectively, who seek to protect and promote their
mutual interests through collective bargaining.

Specific Goals:
We began this chapter by describing unions as organizations that seek to protect and promote
their members interests. Union protection and promotion basically revolve around four specific
goals. We can say that any labor union will seek to

1. Influence the wage and effort bargain

2. Establish a security system for members
3. Influence the administration of rules
4. Obtain political power in the state and over the economy
Wages and Effort: We traditionally view unions as bargaining for their members in the areas of
wages, hours, and working conditions. The result of this bargaining determines the amount of
pay, the hours of employment, the amount of work required during a given period, and the
conditions of employment. The unions ability to influence final negotiation is determined by the
unions power relative to that of management.

Employment security: The ideal agreement, from a union standpoint, would be a situation
where workers could not be hired by an employer unless, at the time of hiring, they were already
members of the union. In such a case, the union is the only source of labor for the employer.
Complete monopoly power ca be exerted, since the employers alternatives have been reduced to
one. This type of arrangement is referred to as a closed shop and was declared illegal by the TaftHartley Act in 1947. Yet, in many construction and printing jobs, and arrangement exists that
closely resembles the closed shop; in those cases, it is called a hiring hall.

The most powerful relationship legally available to a union is a union shop, which stipulates that
employers, while free to hire whomever they choose, may retain only union members. That is all

employees must, after a specified probationary period usually thirty to sixty days join the
union or give up their positions. However, in right-to-work states, compulsory union membership
is forbidden. At present, this legislation exists in twenty states, though right-to-work laws are
most heavily concentrated in the South, the farm block, and the Mountain States.

If a union shop does not exist, then there can be no requirement that the employee join the union.
All other types of security, therefore, are clearly inferior from a unions standpoint. These other
types of security arrangements include maintenance of membership and preferential, agency, and
open shops.

Maintenance of Membership: A maintenance of membership agreement states that no worker is

required to join the union as a condition of employment, but it stipulates that should an employee
join the union, he or she then becomes locked in. This locked in status compels the employee to
remain in the union for the extent of the contract. When the contract expires, most maintenance
of membership agreements provide an escape clause a short interval of time, usually ten days
to two weeks, in which the employee may choose to withdraw his or her membership without

Preferential Shop: When a union member is given preference over a nonunion member, we
have a preferential shop. This type of agreement must be carefully monitored to ensure that
preferential treatment is not interpreted to mean union members exclusively. When preference
results in decisions that consistently exclude nonunion members, we do not have a preferential
shop, but rather a closed shop.

Agency Shop: An agreement that requires nonunion employees to pay the union a sum equal to
union fees and dues as a condition of continuing employment is referred to as an agency shop. It
was designed as a compromise between the unions desire to eliminate the free rider and
managements desire to make union membership voluntary.

Open Shop: The least desirable form of security, again from the union standpoint, is the open
shop. This is where there is, technically, no union, but it is sometimes applied to places of work
in which there is a union but membership is not a condition of employment.


Guaranteed Annual Income: In addition to the unions desire to develop a security agreement
with an employer, unions have recently begun also to press for job and income security for their
members. Ideally, a union would like to be able to provide its members with complete job
security. While union officials may use the phrase guaranteed lifetime security to describe their
goal, what they actually want is the same kind of job security most managers have. This is not
lifetime security, but rather significant reductions in the practice of instant layoffs during even
minor economic slumps or cutting workers adrift when a plant or office is closed down. Unions
in recent years have sought to have management vest jobs rights to union members. After a
stipulated number of years of service, a worker would have earned the right to be kept on the job.
Workers with high seniority could be guaranteed work even during slumps or at least be
guaranteed a certain number of hours of work or pay in lieu of work per year.

As indicated above, security can include such arrangements as a guaranteed annual income.
Probably the best-known guarantee is that between the members of Longshoremens Union and
their employers. The dockworkers in New York are guaranteed 2,080 hours of work a year so
long as they meet one stipulation, that is, being available to work. With current wages
approximately $ 15 per hour, this guaranteed annual income amounts to $ 31,200 per worker. In
other ports, the number of hours guaranteed is less, 1,900 in Baltimore for a worker with ten
years seniority, but the impact is the same. The guaranteed annual income provision costs
millions of dollars.

Rules: Where a union exists, workers are provided with an opportunity to participate in
determining the conditions under which they work, and an effective channel whereby they can
protest conditions they believe are unfair. Therefore a union not only is a representative of the
worker but also provides rules that define channels in which complaints and concerns of workers
can be registered.

Grievance Procedures: Grievance procedures and rights to third-party arbitration of

management-labor disputes are examples of practices that are frequently defined and regulated as
a result of union efforts,

Union Power: A final objective of a union is to obtain political power in the state and over the
economy. The union movement has not been reluctant to exert political muscle to gain through
legislation what it has been unable to win at the bargaining table.


The AFL-CIO, for example, is a potent lobbying group. No national politician can ignore the
needs of the union movement as articulated by the AFL-CIO. Those who seek election to public
office, or who want to maintain the positions they already hold, find that labors interests must be
heard. The winning of labor support can be a valuable aid, often a necessary requirement, in
attaining important positions at the local, state and national levels.

Definition of Collective Bargaining:

The term collective bargaining typically refers to the negotiation, administration, and
interpretation of a written agreement between two parties that covers a specific period of time.
This agreement or contract lays out in specific terms the conditions of employment; that is, what
is expected of employees and what limits there are on managements authority. In the discussion
that follows, we will take a somewhat larger perspective than this definition in that we will also
consider the organizing, certification, and preparation efforts that precede actual negotiation.

Collective Bargaining Process: Figure 1.1 summarizes the collective bargaining process.
Preparation for contract negotiations is often an ongoing activity in sophisticated companies such
as AT&T. In other organizations, serious preparations begin three to six months before the
expiration of the old contract or as soon as it looks like a union will successfully organize a
previously nonunionized employer. The HR department starts by studying recent trends in the
economy and other labor negotiations. A plan is developed that outlines the companys position
on wages, hours, and other terms and conditions of employment. The companys bargaining team
may be supplemented by outsiders, most often a labor attorney. Once top management has
approved the plan and strike preparations are under way, negotiations begin several weeks or
months before the expiration date of the labor agreement.



Monitor the


bargaining plan and

Secure topmanagement

Check strike status

Negotiate with

Approve the
agreement by

Administer the
labor agreement

Explain through

compensation and

Ensure union
and management


Figure 1.1: Stage of Collective Bargaining

Negotiations with the union bargaining committee continue until a mutually satisfactory
agreement is reached. Figure 1.2 identifies some of the traditional guidelines for negotiating a
labor contract. If the old contract expires, the union may elect to strike in an attempt to increase
the pressure for its position. Once he contract is approved by top management and by a vote of
the union members, the contract administration phase begins.



Do seek more (or offer less) than you plan to receive (or give).
Do negotiate in private, not through the media.
Do let both sides win; otherwise the other side may retaliate.
Do start with easy issues.
Do remember that negotiations are seldom over when the agreement is concluded;
eventually the contract will be renegotiated.
6. do resolve deadlocks by stressing past progress, another point, or counterproposals.
7. Do enlist the support of the Federal Mediation and Conciliation Service if a strike seems



1. Do not make your best offer first; that is so uncommon that the other side will expect
2. Do not seek unwanted changes; you may get them.
3. Do not say no absolutely unless your organization will back you up absolutely.
4. Do not violate a confidence.
5. Do not settle too quickly; union members may think a quick settlement is not a good one.
6. Do not let the other side bypass your team and go directly to top management.
7. Do not let top management actually participate in face-to-face negotiations; they are often
inexperienced and poorly informed.