Professional Documents
Culture Documents
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act of 1942 made it compulsory to appoint a labour welfare officer if the
factory had 500 or more than 500 workers.
The international institute of personnel management and national
institute of labour management were set up to look into problems faced
by workers to provide solutions to them. The Second World War created
awareness regarding workers rights and 1940s to 1960s saw the
introduction of new technology to help workers.
The 1960s extended the scope of human resource beyond welfare.
Now it was a combination of welfare, industrial relation, administration
together it was called personnel management.
With the second 5 year plan, heavy industries started and
professional management became important. In the 70s the focus was on
efficiency of labour wile in the 80s the focus was on new technology,
making it necessary for new rules and regulations. In the 90s the
emphasis was on human values and development of people and with
liberalization and changing type of working people became more and
more important there by leading to HRM which is an advancement of
personnel management.
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4. Orientation and induction :-
Once the employees have been selected an induction or
orientation program is conducted. This is another important area of
HRM. The employees are informed about the background of the
company, explain about the organizational culture and values and
work ethics and introduce to the other employees.
6. Performance appraisal :-
Once the employee has put in around 1 year of service,
performance appraisal is conducted that is the HR department
checks the performance of the employee. Based on these appraisal
future promotions, incentives, increments in salary are decided.
9. Industrial relations :-
Another important area of HRM is maintaining co-ordinal
relations with the union members. This will help the organization
to prevent strikes lockouts and ensure smooth working in the
company.
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Challenges before the HR manager/before modern personnel
management
4. Handicapped employees :-
This section of the population normally faces a lot of
problems on the job, very few organization have jobs and facilities
specially designed for handicapped workers. Therefore the
challenge before the HR manager lies in creating atmosphere
suitable for such employees and encouraging them to work better.
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before the HR manager lies in implementing the retrenchment
policy without hurting the sentiments of the workers, without
antagonizing the labour union and by creating positive attitude in
the existing employees.
1. Objective :-
HRM helps a company to achieve its objective from time to
time by creating a positive attitude among workers. Reducing
wastage and making maximum use of resources etc.
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start realizing that the company is also interested in the workers
and will not go against them therefore chances of going on strike
are greatly reduced.
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Chapter 2 Job analysis, job design, job evolution
Job analysis
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The following are the benefits of job analysis.
4. Job evaluation :-
Job evaluation refers to studying in detail the job
performance by all individual. The difficulty levels, skills required
and on that basis the salary is fixed. Information regarding qualities
required, skilled levels, difficulty levels are obtained from job
analysis.
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7. Labour relations :-
When companies plan to add extra duties or delete certain
duties from a job, they require the help of job analysis, when this
activity is systematically done using job analysis the number of
problems with union members reduce and labour relations
improve.
1. Personal observation :-
In this method the observer actually observes the concerned
worker. He makes a list of all the duties performed by the worker
and the qualities required to perform those duties based on the
information collected, job analysis is prepared.
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3. Interview method :-
In this method an interview of the employee is conducted. A
group of experts conduct the interview. They ask questions about
the job, skilled levels, and difficulty levels. They question and
cross question and collect information and based on this
information job analysis is prepared.
5. Questioner method :-
In this method a questioner is provided to the employee and
they are asked to answer the questions in it. The questions may be
multiple choice questions or open ended questions. The questions
decide how exactly the job analysis will be done. The method is
effective because people would think twice before putting anything
in writing.
7. HRD records :-
Records of every employee are maintained by HR
department. The record contain details about educational
qualification, name of the job, number of years of experience,
duties handled, any mistakes committed in the past and actions
taken, number of promotions received, area of work, core
competency area, etc. based on these records job analysis can be
done.
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Job design
Definitions: - (2marks)
Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization.
Job analysis helps to develop job design and job design matches the
requirements of the job with the human qualities required to do the job.
Factors affecting job design: - There are various factors which affect job
design in the company. They can be explained with the help of diagram.
I] Organizational factors :-
Organizational factors to refer to factors inside the organization
which affect job design they are
a) Task characteristics :-
Task characteristics refer to features of the job that is
depending on the type of job and the duties involved in it the
organization will decide, how the job design must be done. Incase
the company is not in a position to appoint many people; a single
job may have many duties and vice versa.
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b) The process or flow of work in the organization :-
There is a certain order in which jobs are performed in the
company. Incase the company wishes it could combine similar job
and give it to one person this can be done if all the jobs come one
after the other in a sequence.
d) Work practices :-
Every organization has different work practices. Although
the job may be the same the method of doing the job differs from
company to company. This is called work practice and it affects
job design.
a) Feedback :-
Job design is normally prepared on the basis of job analysis
and job analysis requires employee feedback based on this
employee feedback all other activities take place. Many employees
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are however not interested in providing a true feedback because of
fear and insecurity. This in turn affects job deign.
b) Autonomy :-
Every worker desires a certain level of freedom to his job
effectively. This is called autonomy. Thus when we prepare a job
design we must see to it that certain amount of autonomy is
provided to the worker so that he carries his job effectively.
c) Variety :-
When the same job is repeated again and again it leads to
burden and monotony. This leads to lack of interest and
carelessness on the job. Therefore, while preparing job design
certain amount of variety must be provided to keep the person
interested in the job.
I. Job rotation
II. Job enlargement
III. Job enrichment
Job rotation is done to decide the final posting for the employee e.g.
Mr. A is assigned to the marketing department whole he learns all
the jobs to be performed for marketing at his level in the
organization .after this he is shifted to the sales department and to
the finance department and so on. He is finally placed in the
department in which he shows the best performance
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Job rotation gives an idea about the jobs to be performed at
every level. Once a person is able to understand this he is in a better
understanding of the working of organization
1. Avoids monopoly :-
Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job
1. Frequent interruption :-
Job rotation results in frequent interruption of work .A
person who is doing a particular job and get it comfortable
suddenly finds himself shifted to another job or department .this
interrupts the work in both the departments
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Job enlargement
There are various methods in which job design can be carried out. These
methods help to analysis the job, to design the contents of the and to
decide how the job must be carried out .these methods are as follows :- (5
marks each)
I. Job rotation
II. Job enlargement
III. Job enrichment
1. Variety of skills :-
Job enlargement helps the organization to improve and
increase the skills of the employee due to organization as well as
the individual benefit.
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3. Wide range of activities :-
Job enlargement provides wide range of activities for
employees. Since a single employee handles multiple activities the
company can try and reduce the number of employees. This
reduces the salary bill for the company.
Job enrichment
There are various methods in which job design can be carried out. These
methods help to analysis the job, to design the contents of the and to
decide how the job must be carried out .these methods are as follows :- (5
marks each)
I. Job rotation
II. Job enlargement
III. Job enrichment
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In other words we can say that job enrichment is a method of
adding some motivating factors to an existing job to make it more
interesting. The motivating factors can be
b) Encouraging participation.
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4. Identifies higher order needs of employees :-
This method identifies higher order needs of the employee.
Abraham maslows theory of motivation speaks of these higher
order needs e.g. ego and esteemed needs, self actualization etc.
These needs can be achieved through job enrichment.
3. Superiors may feel that power is being taken away from them and
given to the juniors. This might lead to ego problems.
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Chapter 3 Human resource planning/manpower planning
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Human resource planning
Comparison
Differences
Yes No
Personal Personal
Surplus Shortage
(100=125) (100=75)
Layoff Overtime
Termination Recruitment/hiring
VRS Subcontracting
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1. Personnel requirement forecast :-
This is the very first step in HRP process. Here the HRP
department finds out department wise requirements of people for
the company. The requirement consists of number of people
required as well as qualification they must posses.
3. Comparison:-
Based on the information collected in the 1st and 2nd step, the
HR department makes a comparison and finds out the difference.
Two possibilities arise from this comparison
a. No difference :-
It is possible that personnel requirement = personnel
supplied. In this case there is no difference. Hence no
change is required.
4. Personnel surplus :-
When the supply of personnel is more than the requirement,
we have personnel surplus. We require 100 people, but have 125
people. That is we have a surplus of 25 people. Since extra
employees increase expenditure of company the company must try
to remove excess staff by methods of
i. Layoff
ii. Termination
iii. VRS/CRS
5. Personnel shortage :-
When supply is less than the requirement, we have personnel
shortage. We require 100 people; we have only 75 i.e. we are short
of 25 people. In such case the HR department can adopt methods
like Overtime, Recruitment, Sub-contracting to obtain new
employee
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Advantages of HRP/need/importance/role/benefits
3. Placement of personnel :-
Since the HRP process is conducted for the entire
organization, we can identify the requirements for each and every
department. Based on the requirement, we can identify existing
employees and place them on those jobs which are vacant.
4. Performance appraisal :-
HRP make performance appraisal more meaningful. Since
feedback is provided in performance appraisal and employee is
informed about his future chances in same company, the employee
is motivated to work better. Information for all this is collected
from HRP process.
5. Promotion opportunity :-
HRP identifies vacancies in the entire organization including
all the branches of all the company. Therefore when the company
implements promotion policy it can undertake its activities in a
very smooth manner.
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Limitations of human resource planning
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5. Expensive process :-
The solution provided by process of HRP incurs expense.
E.g. VRS, overtime, etc. company has to spend a lot of money in
carrying out the activity. Hence we can say the process is
expensive.
1. Employment :-
HRP is affected by the employment situation in the country
i.e. in countries where there is greater unemployment; there may be
more pressure on the company, from government to appoint more
people. Similarly some company may force shortage of skilled
labour and they may have to appoint people from other countries.
3. Organizational changes :-
Changes take place within the organization from time to time
i.e. the company diversify into new products or close down
business in some areas etc. in such cases the HRP process i.e.
appointing or removing people will change according to situation.
4. Demographic changes :-
Demographic changes refer to things referring to age,
population, composition of work force etc. A number of people retire
every year. A new batch of graduates with specialization turns out
every year. This can change the appointment or the removal in the
company.
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5. Shortage of skill due to labour turnover :-
Industries having high labour turnover rate, the HRP will
change constantly i.e. many new appointments will take place. This
also affects the way HRP is implemented.
6. Multicultural workforce :-
Workers from different countries travel to other countries in
search of job. When a company plans its HRP it needs to take into
account this factor also.
7. Pressure groups :-
Company has to keep in mind certain pleasure. Groups like
human rights activist, woman activist, media etc. as they are very
capable for creating problems for the company, when issues
concerning these groups arise, appointment or retrenchment
becomes difficult.
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Chapter 4: Recruitment selection and induction
Objectives of recruitment
The sources can be further explained with the help of following diagram
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Internal sources of recruitment :-
1. Promotion :-
Companies can give promotion to existing employees. This
method of recruitment saves a lot of time, money and efforts
because the company does not have to train the existing employee.
Since the employee has already worked with the company. He is
familiar with the working culture and working style. It is a method
of encouraging efficient workers.
3. Transfer :-
Many companies adopt transfer as a method of recruitment.
The idea is to select talented personnel from other branches of the
company and transfer them to branches where there is shortage of
people.
4. Retirement :- (2 marks)
Many companies call back personnel who have already
retired from the organization. This is a temporary measure. The
method is beneficial because it gives a sense of pride to the retired
when he is called back and helps the organization to reduce
recruitment selection and training cost.
5. Internal advertisement :-
In this method vacancies in a particular branch are advertised
in the notice board. People who are interested are asked to apply
for the job. The method helps in obtaining people who are ready to
shift to another branch of the same company and it is also
beneficial to people who want to shift to another branch.
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6. Employee recommendation :- (2 marks)
In this method employees are asked to recommend people
for jobs. Since the employee is aware of the working conditions
inside the company he will suggest people who can adjust to the
situation. The company is benefited because it will obtain.
2. Employment agencies :-
Companies may give a contract to employment agencies that
search, interview and obtain the required number of people. The
method can be used to obtain lower level and middle level staff.
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candidates who have applied are made to go through a series of
selection test and interview before final selection.
5. Internet advertisement :-
With increasing importance to internet, companies and
candidates have started using the internet as medium of
advertisement and search for jobs. There are various job sites like
naukri.com and monster.com etc. candidates can also post their
profiles on these sites. This method is growing in popularity.
6. Walk in interview :-
Another method of recruitment which is gaining importance
is the walk in interview method. An advertisement about the
location and time of walk in interview is given in the news paper.
Candidates require to directly appearing for the interview and have
to bring a copy of their C.V. with them. This method is very
popular among B.P.O and call centers.
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Selection
Process of selection
Job analysis
Advertisement
Application blank/form
Written test
Interview
Medical examination
Acceptance/rejection letter
Induction
1. Job analysis :-
The very first step in the selection procedure is the job
analysis. The HR department prepares the job description and
specification for the jobs which are vacant. This gives details for
the jobs which are vacant. This gives details about the name of the
job, qualification, qualities required and work conditions etc.
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2. Advertisement :-
Based on the information collected in step 1, the HR
department prepares an advertisement and publishes it in a leading
news papers. The advertisement conveys details about the last date
for application, the address to which the application must be sent
etc.
3. Application blank/form :-
Application blank is the application form to be filled by the
candidate when he applies for a job in the company. The
application blank collects information consisting of 4 parts- 1)
Personal details 2) Educational details 3) Work experience 4)
Family background.
4. Written test :-
The application which have been received are screened by
the HR department and those applications which are incomplete are
rejected. The other candidates are called for the written test.
Arrangement for the written test is looked after the HR department
i.e. question papers, answer papers, examination centers and hall
tickets etc.
5. Interview :-
Candidates who have successfully cleared the test are called
for an interview. The entire responsibility for conducting the
interview lies with the HR department i.e. they look after the panel
of interviewers, refreshments, informing candidates etc.
6. Medical examination :-
The candidates who have successfully cleared the interview
are asked to take a medical exam. This medical exam may be
conducted by the organization itself (army). The organization may
have a tie up with the hospital or the candidate may be asked to get
a certificate from his family doctor.
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8. Acceptance/ rejection :-
Candidates who are happy with the offer send their
acceptance within a specified time limit to show that they are ready
to work with the company.
10.Induction :-
On the date of joining the employee is introduced to the
company and other employees through am elaborate induction
program.
Mental ability/
Intelligence test
Medical aptitude
test
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I. Aptitude test :-
Aptitude tests are test which assess the potential and ability
of a candidate. It enables to find out whether the candidate is
suitable for the job. The job may be managerial technical or
clerical. The different types of aptitude test are
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Induction
Induction = orientation
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Chapter 5 Training and Development
3. Prevents obsolescence :-
Through training and development the employee is up to
date with new technology and the fear of being thrown out of the
job is reduced.
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4. Assisting new comer :-
Training and development programs greatly help new
employees to get accustomed to new methods of working, new
technology, the work culture of the company etc.
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1. On the job training method :-
In this method workers who have to be trained are taken to
the factory, divided into groups and one superior is allotted to
every group. This superior or supervisor first demonstrates how the
equipment must be handled, and then the worker is asked to repeat
whatever he has observed in the presence of the supervisor. This
method makes it easy for the employee to learn the details about
specific equipment. Once the worker studies the first equipment
thoroughly the supervisor moves on to the next equipment and so
on.
2. Apprenticeship training :-
In this method both theory and practical session are
conducted. The employee is paid a stipend until he completes
training. The theory sessions give theoretical information about the
plant layout, the different machines, their parts and safety measures
etc. The practical sessions give practical training in handling the
equipment. The apprentice may or may not be continued on the job
after training.
3. Vestibule training :-
In this method of training an atmosphere which is very
similar to the real job atmosphere is created. The surroundings,
equipment, noise level will be similar to the real situation. When an
employee is trained under such conditions he gets an idea about
what the real job situation will be like. Similarly when he actually
starts doing the job he will not feel out of place. This method is
used to train pilots and astronauts. In some places graphics are also
used to create the artificial surroundings. This method involves
heavy investment.
4. Job rotation :-
In this method the person is transferred from one equipment
to the other for a fixed amount of time until he is comfortable with
all the equipments. At the end of the training the employee
becomes comfortable with all the equipment. He is then assigned a
specific task.
5. Classroom method :-
In this method the training is given in the classroom. Video,
clippings, slides, charts, diagrams and artificial modules etc are
used to give training.
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Methods of training for managers/methods of development/managerial
development/executive development (10/5/2 marks very imp)
Methods of training
Readings
In-basket training
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On the job method :- (5 marks)
On the job method refers to training given to personnel inside the
company. There are different methods of on the job training.
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This method improves team work and decision making ability. It
gives an idea about the intensity of problem faced by the company.
Only promising and capable junior level managers are selected for
this method.
2. Simulation :- (2 marks)
Simulation involves creating atmosphere which is very
similar to the original work environment. The method helps to train
manager handling stress, taking immediate decisions, handling
pressure on the jobs etc. An actual feel of the real job environment
is given here.
4. Committee :- (2 marks)
A committee refers to a group of people who are officially
appointed to look into a problem and provide solution. Trainee
managers are put in the committee to identify how they study a
problem and what they learn from it.
5. Conference :- (2 marks)
Conferences are conducted by various companies to have
elaborate discussions on specific topics. The company which
organizes the conference invites trainee manager and calls for
experts in different fields to give presentation or lecture. The
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trainee manager can ask their doubts to these experts and
understand how problems can be solved on the job.
6. Readings :- (2 marks)
This method involves encouraging the trainee manager to
increase his reading related to his subject and then ask him to make
a presentation on what he has learned. Information can be collected
by trainee manager from books, magazines and internet etc.
Process/procedure of training
Preparing trainers
Presentation
Performance
Follow up
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1. Determining training needs of employee :-
In the very 1st step of training procedure, the HR department,
identifies the number of people required training, specific area in
which they need training, the age group of employee, the level in
organization etc. in some cases the employee may be totally new to
the organization. Here the general introduction training is required.
Some employees may have problems in specific areas; here the
training must be specific. This entire information is collected by
HR department.
3. Preparing trainers :-
Once the employees have been divided into groups, the HR
department arranges for trainers. Trainers can be in house trainers
or specialized trainers from outside. The trainers are given details
by HR department, like number of people in group, their age, their
level in organization, the result desired at the end of training, the
area of training, the number of days of training, the training budget,
facilities available etc.
5. Presentation :-
On the first day of training program the trainer introduces
himself and specifies the need and objective of the program and
then actually stars the program. The performance of each employee
is tracked by the trained and necessary feedback is provided.
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6. Performance :-
At the end of training program the participants reports back
to their office or branches. They prepare report on the entire
training program and what they have learned. They the start using
whatever they have learned during their training. Their progress
and performance is constantly tracked and suitable incentives are
given if the participant is able to use whatever he has learned in
training.
7. Follow up :-
Based on the em0ployee performance, after training, the HR
department is able to identify what is exactly wrong with training
program and suitable correction is made.
1. Reaction :-
Reaction refers to attitude of employee about the training, whether
the employee considers training to be +ve or ve one. If reaction
are +ve then people have accepted the program and changes will be
possible.
2. Learning :-
Another method of judging effectiveness is to identify levels
of learning i.e. how much the people have learnt during the
training. This can be found out by trainers mark sheet, the report
submitted by the employee, and actual performance.
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3. Behavior :-
The HR department needs to understand behavior of the
employees, to understand the effectiveness of training. The
behavioral change can be seen in how the person interacts with
juniors, peer groups and seniors. They mark change in behavior
and inform the HR department of the success of training program.
4. Result :-
Results provided by employee in monetary terms also
determines effectiveness of training program i.e. employee success
in handling the project, the group performance before and after
training etc.
2. Reduced supervision :-
When workers have been formally trained they need not be
supervised constantly. This reduces the work load on the
supervisor and allows him to concentrate on other activities in the
factory.
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3. Reduction in wastage :-
The amount of material wasted by a trained worker is
negligible as compared to the amount of material wasted by an
untrained worker. Due to this the company is able to reduce its cost
its cost of production.
2. High rewards :-
Effective training programs result in improved performance.
When performance appraisal is done excellent performance from
the employee is rewarded by giving him incentives and bonus.
3. Increased motivation :-
Employees who have been trained are generally more
confident as compared to others. Since their efforts will be
rewarded in future they are very much interested in improving their
performance. Therefore we can say that their motivation levels are
very high.
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4. Group efforts :-
Training programs are not only technical programs but are
also conducted in areas like conflict management, group dynamics
(formal and informal groups), behavioral skills, stress management
etc. this enables employees to put in group effort without facing
problems that groups normally face. In other words training
teaches people to work in a group.
5. Promotion :-
People who attend training programs learn from them and
improve themselves are generally considered for promotion. Thus
training increases chances of promotion.
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Chapter 6 Performance appraisal
Definition :- (2 marks)
Performance appraisal is defined by Wayne Cascio as the
systematic description of employees job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months
or once in a year. The basic idea of the appraisal is to evaluate the
performance of the employee, giving him a feed back. Identify areas
where improvement is required so that training can be provided. Give
incentives and bonus to encourage employees etc.
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1. Check list method :- (2 marks)
In this method the senior, the boss is given a list of questions
about the junior. These questions are followed by check boxes. The
superior has to put a tick mark in any one of the boxes
This method can be explained with the following eg.
Y N
Does the employee have leadership qualities?
Y N
Is the employee capable of group efforts?
Y N
Has the employee shown analytical skills?
on the job
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Simple ranking method
Alternate ranking method
Paired comparison method
Eg. Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor
The senior has to put a tick mark for a particular quality along with the
ranking. Such charts are prepared for every employee. According to the
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department in which they work. Sometimes the qualities which are
judged may change depending upon the department.
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the department starting from the lowest level employee to the
highest level employee together discus, fix target goals to be
achieved, plan for achieving these goals and work together to
achieve them. The seniors in the department get an opportunity to
observe their junior- group efforts, communication skills,
knowledge levels, interest levels etc. based on this appraisal is
done.
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Process of performance appraisal
Measuring performance
Discussing result
Collective action
3. Measuring performance :-
The performance of the employee is now measure by the HR
department, different methods can be used to measure performance
i.e. traditional and modern method. The method used depends upon
the companys convenience.
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4. Comparing performance with standard :-
The performance of the employee is now judged against the
standard. To understand the score achieved by him. Accordingly
we come to know which category of performance the employee
falls into i.e. excellent, very good, good, satisfactory etc.
5. Discussing result :-
The results obtained by the employee after performance
appraisal are informed or conveyed to him by the HR department.
A feedback is given to the employee asking him to change certain
aspects of his performance and improve them.
6. Collective action :-
The employee is given a chance or opportunity to improve
himself in the areas specified by the HR department. The HR
department constantly receives or keeps a check on the employees
performance and notes down improvements in performance.
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3. Central tendency :- (2 marks*)
In this case the superior gives an appraisal by giving central
values. This prevents a really talented employee from getting
promotions he deserves and some employees who do not deserve
any thing may get promotion.
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Advantages/needs/importance/use/purpose of performance appraisal
(5 marks)
Performance appraisal is defined by Wayne Cascio as the
systematic description of employees job relevant, strength, weakness.
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