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performance appraisal may be understood as the assessment of individual’s
performance in a systematic way, the performance being measured against factors
such as job knowledge, quality and quantity output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the like.
Assessment should be confined to past performance alone. Potentials of the employee
for future performance must also be assessed.
Performance appraisal is a method of evaluating the behavior of employees in the
work spot, normally including both the quantitative and qualitative aspect of job
performance. Performances here refer to the degree of accomplishment of the tasks
that make up an individual’s job. It indicates how well an individual is fulfilling the
job demands. Often the term is confused with effort, but performance is always
measured in terms of result and not efforts.
A formal definition of performance appraisal is “it is the systematic evaluation of the
individual with respect to his or her performance on the job and his or her potential
for development.”


Performance appraisal is the systematic description of an employee’s job relevant

strengths and weaknesses.

The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not job evaluation. It refers to how well someone is doing
the assigned job. Job evaluation determines how much a job is worth to the
organization and there for, what range of pay should be assigned to the job.
Performance appraisal is a continuous process in every large scale organization.


Performance appraisal is planned, developed and implemented through a series of






1) Establish Performance Standards.

Appraisal systems require performance standards, which serve as benchmarks against
which performance is measured. In order to be useful, standards should relate to the
desired results of each job. Appraisals must have a clear- cut criteria. Performance
standards must be both to the appraiser and the appraise. The performance standards
of goals must be developed after a thorough analysis of the job. Goals must be written
down. They must be measurable within certain time and cost considerations.
2) Communicate the Standards.
Performance appraisal involves attract two parties; the appraiser who does the
appraisal and the appraise whose performance is being evaluated. Both are expected
to do certain things. The appraiser should prepare job descriptions clearly, help
appraise set his goals and targets; analysis results objectively; offer coaching and
guidance to appraise whenever required and reward good results. The appraiser
should be very clear about what he is doing and why he is doing. For this purpose, the
performance standards must be communicated to appraise and their reactions are
noted initially. These standards must be revised or modified as and when required.

3) Measure Actual Performance.

After the performance standards are set and accepted, the next step is to measure
actual performance. This requires the use of dependable performance measures, the
ratings used to evaluate performance. Performance measures in order to be helpful
must be easy to use, reliable and report on the critical behaviors that determine
performance. Generally, managers regarding how to measure actual performance use
four common sources of information: personal observation, statistical reports, oral
reports and written reports.

4) Compare Actual Performance with Standards and Discuss the Appraisal.

Actual performance may be better than expected and sometimes it may even go off
the track. The assessment of another person's contribution and ability is not an easy
task. It has serious emotional overtones as it affects the self-esteem of the appraise.
Any appraisal asked on subjective criteria is likely to be questioned by the appraisers
and leave him quite dejected and unhappy when the appraisal turns out to be negative.

5) Taking Corrective Action, if Necessary.

Corrective action is of two types: The one, which puts out the fires immediately and
the other one, which strikes at he root of the problems permanently. Immediate action
sets things right and get things back or track, whereas the basic corrective action gets
to the source of deviations and seems to adjust the difference permanently. Basic
corrective step seek to find out how and why performance deviate.

Methods of Performance Appraisal

A) Traditional Methods B) Modern Methods

Confidential report 1. Human resource accounting
Ranking 2. management by objective
Graphical rating scale 3. Assessment centre
Checklists 4. BARS( Behaviorally
Forced distribution anchored rating scale )
Critical incidents
Essay evaluation
Group appraisals

Traditional methods:
Confidential report method
It is mostly used in government organizations. It is a descriptive report generally
prepared at the end of the year, by the employee’s immediate superior. The report
highlights the strengths, weaknesses, major mistakes, merits, good work done etc. of
the subordinate. The impression of the superior about the superior is merely recorded
here. It does not offer any feedback to appraise. It is a narrative method of
performance appraisal since the report is not made public and hence no freedom is
available, the subjective analysis of the superior is likely to be hotly contested.

Ranking method
This is relatively easy method of performance evaluation. In it, the ranking of an
employee in a work group is against that of another employee. The relative position of
each employee is tested in terms of his or her numerical rank, for example, when there
are five employees (A,B,C,D,E) to be compared, then A’s performance is compared
with that of B’s and decision is arrived at as to whose is the better or worst. Next, B is
also compares with all others. Since A is already compared with B, this time B is to
be compared with only C, D, and E In this evaluation is asked to rate the employees
from highest to lowest on some overall criterion. It is easier to rank the best and the
worst employee, it is very difficult to rank the average employees.

Graphical rating scale

It is the oldest and the most commonly used method of performance in this, a printed
form is used to evaluate the performance of an employee. Four to twelve factors are
selected, depending upon the category to which the employee belongs. Some of these
factors are quantity of out put, quality of out put, initiative, integrity, dependability
etc. these factors and their degrees are marked on a graph paper provided in the form.
The rater has merely to check on the scale where he thinks the employee belongs.

Checklists and weighted checklists

The checklist is a simple rating technique in which the supervisor is given a list of
statement or world and ask to check statement representing the characteristic and
performance of each employee a checklist represents a set of objective statement
about the employee and his behavior. A more recent variation of the checklist is
weighted list. Under this the value of each question may be weighted more heavily
than others.

The following are sample questions in the checklist:

- Is the employee is really interested in the task assigned? Yes/ No
- Is he respected of his colleagues? Yes/ No
- Does he follow instructions properly? Yes/ No
- Does he give respect to his superiors? Yes/ No
- Does he make mistakes frequently? Yes/ No

A rating score from the checklist helps the manager in evaluation of the performance
of the employee.

Forced distribution method

It was developed to eliminate the bias and the preponderance of high ratings that
might occur in some organizations. Its primary purpose is the correct tendency of the
rates to give consistently high and low ratings to all employees. This method makes
those of several sets of pair phases, two of which are positive and two of them are
negative and the rates is asked to indicate which of the four phrase is the most or least
descriptive of a particular employee. Actually the statement items are grounded in
such a way that the rater cannot which statement applies to the most effective
employee. The favorable qualities earn a plus credit and the unfavorable ones earn the
severest. In this the overall objectivity is increased in the employee’s performance
because the rater does not know how high or low he is evaluating the individual, as he
has no access to the storing key.

Critical incident method

The manager prepares test of statements of every effective and ineffective
behavior of an employee. These critical incidents or events represent the outstanding
poor behavior of the employees. The manager prepares records of the critical
incidents of the worker’s behavior. At the end of the rating period, the recorded
critical incidents are used in the evaluation of the workers’ performance.

Essay Appraisal
Under this method the rater is asked to express the strong as well as the weak points
of the employee’s behavior. This technique is normally used with a combination of
the graphical rating scale because the rater an elaborately present the scale by
sustaining an explanation for his rating. In it, the rater considers the following factors:
Job knowledge and potential of the employee.
Employees understanding about the company’s programmes, policies, objective, etc.
The employees general planning, organizing and controlling ability.
The employee’s relation with the co-workers and superiors.
The attitude and perceptions of the worker, in general.

Group appraisal
In this method an employee is appraised by a group of appraisers. This group consists
of the immediate supervisor of the employee, other supervisors who have close
contact with employee’s work, manager or head of department or consultant. The
head of department or manager may be the chairman of the group and the supervisor
may act as the coordinate for the group activities. The immediate supervisor enlighten
other members about the job characteristics, demand, standards or performance etc.
then the group appraise the performance of the employee, compares the performance
with the standards, finds out the deviation, discusses the reasons, therefore suggests
ways for improvement of performance, prepares an action plan, studies the need for
change in the job analysis and standards and recommends changes, if necessary. This
method eliminates “personal bias” to a large extent, as performance is evaluated by
multiple rates. However, it is very time consuming process.

B) Modern Methods:
Human resource accounting
HRA is a sophisticated way to measure in financial terms the effectiveness of the
personal manager activities and the use of people in an organization. It is process of
accounting people as an organization resource. It tries to place a value on the
organizational human resources as assets and not as expenses. This method shows the
investment the organization makes in the people and how the value of these people
change over a time. The acquisition of employee is compared with the replacement
cost from time to time. In brief, in this method the employees’ performance is
evaluated in terms of costs and contributions of employees.
Management by objectives
It is the modern method of evaluating the performance of personnel. Managers have
become increasingly aware that the traditional performance evaluation systems are
characterized by facing goals. The concept of MBO is actually the outcome the
pioneering work of Drucker, Mcgreger and Odioine in management science. MBO
can be described as the process whereby the superior and subordinate manager of an
organization jointly identify its common goals, each individual’s areas of operations,
responsibility in terms of results expected of him and use these measures as a guide
for operating the unit and assessing the contributions of each of its members. MBO
thus represents more than an evaluation process.

The MBO can be described in four steps:

The first step is to establish the goals each subordinate is to attain. The goals typically
refer to the desired outcome to be achieved. The goals can be then used to evaluate
the employee performance
The second step involves setting of the performance standard fro the subordinates in a
previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed
upon. The evaluator explores the reasons or the goals that were not met and the goals
that were exceeded. This step helps to determine the training needs. It also alerts the
superior of the conditions that may affect but over which the subordinate has no
The final step involves establishing new goals and, possibly, new strategies for goals
that previously not attained. At this point, subordinate and superior involvement in the
goal setting may change. Subordinates who successively reach the established goals
may be allowed to participate more in the goal setting process the next time. The
process is repeated.
Assessment center
In this approach individuals from various departments are brought together to
spend two or three days working on an individual or a group assignment similar to the
ones they would be handling when promoted. Observers rank the performance of each
and every participant in order to merit since assessment centers are basically meant
for evaluating the potential of candidates to be considered for promotion, training on
development, they offer an excellent means for conducting evaluation process in an
objective way. All assesses get an equal opportunity to show their talents and
capabilities based on merit.

Behaviorally anchored rating scale

This method is also known as behavioral expectation scale. This method represent he
latest innovation in the performance appraisal. It is the combination of the rating scale
and critical incident techniques of employee performance evaluation. The critical
incidents serve as the anchor statement on a scale and the rating form usually contains
six to eight specifically defined performance dimensions.
The appraisal may be any person who has thorough knowledge about the job contents,
contents to be appraised, standards of contents and who observes the employee's by
performing a job. The appraisal should be capable of determining what is more
important and what is relatively less important. He should prepare reports and made
judgments without bias. Typical appraisals are supervisors, peers. Subordinates,
employees themselves, user of service and consultants. Performance Appraisal by all
these parties is called 360° Performance Appraisal.
Supervisors include superiors of the employee, other superiors having knowledge
about the work of the employee and department head or manager. General practice is
that immediate superior appraises the performance, which in turn is reviewed by the
departmental head/ managers. This is because superiors are responsible free managing
their subordinates and they have the opportunity to observe, direct and control the
subordinate continuously. Moreover, they are accountable for the successful
performance of their subordinates. Sometimes other supervisors, who have close
contact with employee work also appraise with a view to provide additional
Peer appraisal may be reliable of the workgroup is stable over a reasonably long
period of time and performs tasks that require interaction.

In developed countries, the concept of change superiors rated by subordinates in being
used in most organizations. Such a method can be useful provided the relationships
between superiors and subordinates art cordial. Subordinate's ratings in such cases can
be quite useful in identifying competent superiors.
If individuals understand the objectives they are expected to achieve and the standards
by which they are to be evaluated, they are to a great extent in the best position to
appraise their own performance. Also, since employee development means self-
development, employees who appraise their own performance may become highly
Users of Services/Customers
The customers on users of services can, better judge employee performance in service
organizations relating to behaviors, promptness, speed in doing the job and accuracy.
Example, students better judge a teacher’s performance.
Sometimes consultants may be engaged for appraisal when employees or employers
do not trust the supervisory appraisal and management does not trust the self-appraisal
and the appraisal done by subordinates. In such situation, the consultants are trained
and they observe the employee at work for sufficiently long periods for the purpose of

When to appraise?
Informal appraisals are conducted whenever the supervisor or personnel manager feel
it necessary. However, systematic appraisals are conducted on a regular basis; say for
example, every six month or annually.
To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development thought training, self and
management development programmes.
To help the superior to have a proper understanding about their subordinates.
To guide the job changes with help to continuous ranking.
To facilitate fair and equitable compensation based on performance.
To provide information for making decision regarding lay off, retrenchment etc.


It must be easily understandable:

If the system is too much complex or to time consuming, it may be anchored to the
ground by its own dead weight of complicated forms which nobody but the experts

It musty has support of all line people who administer it:

If the line people think that there role is not very important then they will not consider
the system seriously. Similarly, if the people find that the system is too theoretical,
too ambitious, or that has been foisted on them by the ivory-tower staff consultants
who have no comprehension of the demand then they will recent it.

The system should be sufficiently grounded in the requirement of the organization:

It should reflect the value system of the organization. In fact functioning as a
definition of performance, it should tell he employee what set of activities or what
qualities are considered desirable by the organization. As such it should have linkage
with the job description.
The system should be both valid and reliable:
The validity of the ratings is the degree to which they are truly indicative of the
intrinsic merit of the employees. The reliability of the ratings is the consistency with
which the ratings are made, either by different sectors, one by one rater at different
times. Both validity and reliability result from objectivity. The appraisal system of
many organizations lacks this objectivity and bunches all employees into one or two
top ranks without taking into account their merits. This raises outstanding
performances but also raises doubts about the validity of the system.

The system should have built-in incentive:

This means that the reward should follow satisfactory performance. Many authors
however, advocate against the direct linkage between the appraisal and rewards. In
their opinion, such a connection throttles downward communication of performance
appraisal because superiors do not like being questioned by disgruntled subordinates.

The system should be open and participative:

It should involve employees in goal-setting process. This helps in planning
performance better.

The systems should focus more on the development and growth:

Of the employee than on generating data for administrative decision making related to
promotions, increments, etc. the system must help in identifying employee’s strengths
and weaknesses and indicate corrective actions. For example it may reveal that goals
need to be modified on; there is need for classification of duties or for additional
training or job rotation or job enrichment.


The concept ‘Grievance’ has been defined in several ways by different authorities
some of the definition are follows:
Beach defines a grievance as “any dissatisfaction or feeling of injustice in
connection with one’s employment situation that is brought to the notice of the
management”, where as Flippo indicate the grievance as “a type of discontent which
must always be expressed A grievance is usually more formal in character than a
complaint. It can be valid or ridiculous, and must grow out of something connected
with company operations or policy. It must involve interpretation or application of the
provision of the labour contract.”
Jucius defines a grievance as “any discontent or dissatisfaction, whether exposed
or not, whether valid or not, arising out of anything connected with company which
an employee thinks, believes or even feels to be unfair, unjust or inequitable.”
A grievance is more than likely a violation of an employee's rights on the job, a
right that is usually, but not always defined by the contract. In seeing a grievance in
this way, we can understand better that the best place to look for a way to defend the
member is in the language of the contract. So for all practical purposes, every union
officer must go back to the contract first when a member comes in with a complaint or
a problem. The contract provides us with the strongest ammunition in resolving the
issue for our member. Is the contract the only means to resolve member's grievances?
Of course not. But it is probably the strongest leg you have to stand on. Lastly, there
are many grievances that fall into a large category which we say are discipline-related.
The union can challenge certain rules or their application. We may argue that a
member is being disciplined without "just cause" or he or she is suffering from
disparate treatment. The two expressions are simply an arbitrator's or lawyer's way of
saying the member is being disciplined unfairly.
So the best advice that can be offered in handling a member's problem is to
check the contract first. If there is any reasonable way of dealing with the issue as a
contract violation, you ought to use it. You and your local union are only limited by
the contract, the skills of the grievance representatives, and the power of the local


Grievance procedure is necessary for any organization due to the following reason:
Most grievances seriously disturb the employees. This may affect their moral,
productivity and their willingness to cooperate with the organization. If an explosive
situation develops, this can be promptly attended to if grievance handling procedure is
already in existence.
It is not possible that all the complaints of the employees would be settled by first-
time supervisors, for these supervisor may not have had a proper training for the
purpose, and they may lack authority. Moreover, there may be personality conflicts
and other cause as well.
It serves as a check on the arbitrary action of the management because supervisors
know that employees are likely to see to it that their protest dose reach the higher
It serves as an outlet for employees gripes, discontent and frustrations. It acts like a
pressure value on a steam boiler. The employees are entitled to legislative, executive
and judicial protection and they get this protection from the grievance redressal
procedure, which also acts as a means of upward communication.



endorses the ACAS Code of Practice1 for handling disciplinary and grievance issues
summarizes the statutory procedures which came into force in October 2004
includes the CIPD viewpoint.

A summary of issues which can be addressed through the Basic Grievance
Procedure include, but are not limited to, the following: All allegations of
discrimination; allegations of non-compliance with the Personnel Rules; improvement
of systems, practices or procedures; safety; health; working conditions; materials or
equipment; supervisory practices or procedures considered improper or unfair;
disciplinary actions such as suspensions of 40 hours or less, reprimands or memos of
concern; or any other matters subject to the authority of the ADOA Director and for
which no other method of redress is provided or prohibited in the Personnel Rules.


An employee may not submit a grievance challenging the following management

rights, but may submit a grievance concerning the manner of their administration,
insofar as these personally affect the employee: The agency's right to direct its
employees; to hire, promote, transfer, assign, and retain employees; and, to maintain
efficiency of government operations, and to determine the methods, means, and
personnel by which these operations are to be conducted.
An employee may submit a grievance concerning a specific performance factor rating
by utilizing the EPAS Grievance Procedure. An employee may not submit a
grievance concerning the receipt of a performance decrease, the non-receipt of a
performance increase or special performance award, the amount of any increase or
decrease, or the use of any job-related supplemental rating factors to determine the
receipt or amount of an increase, decrease, or special performance award. An
employee may submit a grievance using the Basic Grievance Procedure within 10
days of receipt of a planning EPAS or within 10 days of failing to receive, after
written request, a planning document.

Non-Applicable Matters

A summary of issues which cannot be addressed through either the Basic or the
EPAS Grievance Procedure, include, but are not limited to, the following: Retirement
issues; life insurance or health insurance issues; suspension for more than 40 working
hours, demotion, or dismissal resulting from disciplinary action; any examination,
certification or appointment; any classification action; and any reduction in force
action and matters not subject to the Department of Administration control. Other
avenues exist to seek redress or remedy involving these actions.


Once a grievance is referred to any step beyond the immediate supervisor, it may
not be amended. If additional documentation is submitted by the grievant after the
initiation of the grievance, the reviewing official may remand the grievance to the
appropriate previous level for reconsideration. It is the employee's responsibility to
provide documentation to support the allegations raised in the grievance.

Confidentiality and Use of Official Authority

The preparation, submittal, review and response to a grievance are confidential.

Correspondence regarding a grievance should be handled in a confidential manner,
and envelopes containing grievance material should be clearly labeled "confidential."
No reference to the complaint shall be included in the employee's official personnel
Copies of written responses sent at each step of the procedure are limited to
respondents at the preceding steps, the agency head or the agency head's designee
unless it is necessary to notify additional personnel because the response requires
another individual to take some action.
No person shall directly or indirectly use any official authority or influence in any
manner to discourage the use of this procedure. Any person found guilty may be
subject to penalty under ADOA Personnel Rule R2-5-501.


At any step of the grievance procedure after the mandatory pre-grievance oral
discussion (see below), grievant may select one representative to provide advice
and/or speak for the grievant at any meetings determined necessary by management in
the course of the grievance process. An ADOA employee who serves as a
representative is required to request and obtain prior approval for annual or
compensatory leave for any time devoted as a representative during regular working
hours. If a representative is chosen, the representative shall be identified on the
grievance form

Group Grievance

Should a group of employees file a grievance, all employees of the group are
required to sign the grievance and to clearly designate, on the grievance form, one
member who will act as the group's contact person. The contact person will act as a
speaker for the group in any meetings determined necessary by management.

Preparation Time

During the entire formal grievance process (after the oral discussion at Step I),
employees are allowed up to four hours with pay to prepare the grievance and/or
confer with their official representative on the grievance. Employees cannot use state
equipment for this process. Employees must request and obtain prior supervisory
approval for time off, which will be subject to the operational needs of the unit. The
time an employee devotes to attending any meetings scheduled by management to
discuss the grievance is considered work time and is not included in the four-hour
limitation specified above.


The ADOA Personnel Rules require that the agency head respond to a grievant not
later than 40 working days after receipt of the grievance at the first step. Within the
40 working days requirement, the time at any step may be extended by the agency
head with concurrence of the grievant. If at any step the response is not made within
the prescribed time and no extension has been agreed upon, the employee may submit
to the next step.

Mandatory Oral Discussion

In accordance with Personnel Rule R2-5-702.A.1, the employee is REQUIRED to

have an oral discussion with the immediate supervisor prior to initiating a formal
grievance. The employee must clearly state to the supervisor the employee's
intentions of filing a formal grievance, the issues involved, and the requested
resolution. The purpose of the meeting is for both parties to explore the issues and the
requested resolution. If the employee fails to take this step, the grievance WILL NOT
be accepted through the formal grievance procedure. It is the employee's
responsibility to remember that the Step I grievance must be submitted within 10
working days after the occurrence of the action being grieved, and that these 10 days
are not extended by the date on which the oral discussion takes place.
The employee may select a representative at any step after the oral discussion with the


When an employee wants to submit a basic grievance, the employee must: Use the
appropriate form; state the problem and outline all of the specific facts, circumstances
and issues involved; provide all the appropriate documentation to support the
allegations; state the specific resolution which is sought; of a Personnel Rule violation
is alleged, the specific rule alleged to have been violated must be stated as well as an
explanation of how the rule was violated; and, the employee must sign the grievance
at each step and state why the response at the previous level was not satisfactory.
The employee must also meet the mandatory oral discussion requirement prior to
submitting the complaint and adhere to the required time limitation for submitting a
Step I
The Step I responding authority is the employee's immediate supervisor.
The time limit for submitting the grievance is 10 working days from the date of the
action being grieved. If a suspension is being grieved, the date of the action is
considered to be the first day of the suspension. The date the action occurred is not
counted when determining


Disciplinary and grievance procedures provide a clear and transparent framework
to deal with difficulties which may arise as part of their working relationship from
either the employer's or employee's perspective.
They are necessary to ensure that everybody is treated in the same way in similar
circumstances, to ensure issues are dealt with fairly and reasonably and that they are
compliant with current legislation.
Disciplinary procedures are needed:
So employees know what is expected of them in terms of standards of performance or
conduct (and the likely consequences of continued failure to meet these standards).
To identify obstacles to individuals achieving the required standards (e.g. training
needs, lack of clarity of job requirements, additional support needed) and take
appropriate action.
As an opportunity to agree suitable goals and timescales for improvement in an
individual's performance or conduct.
As a point of reference for an employment tribunal should someone make a complaint
about the way they have been dismissed

Grievance procedures are needed:

To provide individuals with a course of action should they have a complaint

(which they are unable to resolve through regular communication with their line
To provide points of contact and timescales to resolve issues of concern.

The legal position

Most of the provisions governing discipline and grievances at work are to be found
in the Employment Act 2002 and the detailed regulations made to implement the
provisions of that Act namely the Employment Act 2002 (Dispute Resolution)
Regulations 2004 (SI2004/752).
Numerous other pieces of legislation cross refer to discipline and grievance issues.
Some important examples include the:
Employment Rights Act 1996 as amended
Employment Rights Dispute Resolution Act 1998
Employment Relations Act 1999.
The statutory disciplinary, dismissal and grievance procedures
From 1 October 2004, the Employment Act 2002 made it a legal requirement for all
organizations to follow minimum disciplinary, dismissal and grievance procedures in
certain circumstances. These statutory procedures amount to a minimum standard that
must be followed by all employers and employees.

The Main Features Of The Procedures Are:

Three step statutory disciplinary, dismissal and grievance procedures which must
be followed in most cases
failure to follow the statutory procedures by the employer prior to dismissal will
render that dismissal automatically unfair
employers will pay a potential increase in compensation of between 10-50% if the
procedures are not followed by the employer
an employee may be prevented from presenting some types of claim in the
employment tribunal if they have not followed the grievance procedure first
the procedures are non-contractual until further notification by the Department of
Trade and Industry unless an organization chooses to incorporate the statutory
minimum into their own contractual procedures.
There are two sets of procedures: standard, and modified. It is envisaged that the
standard procedure will be used in all but the most exceptional circumstances. These
procedures apply in a wide range of circumstances which are not limited to issues
relating to the capability or conduct of the employee but, for example, to dismissals
which occur on the expiry of a fixed-term contract and in a smaller scale
There are some exemptions to the statutory procedures, for example if one party
reasonably believes there is a significant threat, harassment or it is not practical to go
through the procedures for reasons beyond their control, or if there are issues of
national security.
The ACAS Code of Practice Disciplinary and Grievance Procedures1 provides
detailed guidance for employers. CIPD endorses this Code.
CIPD members can find out more on the legal aspects of this topic from our FAQ on
in the Employment Law at Work area of our website.
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Grievance policy and practice

It is essential that grievances from employees are treated in the same fair manner.
Failure to address grievances leaves employees with ‘residual anger’ and can lead to
general unrest and disputes in the workplace.
Employees must know to whom they can turn in the event of a grievance and the
support, such as counseling or sources of advice, that is available to them. All line and
senior managers must be familiar with their organization’s grievance procedure.
There are a number of additional factors to bear in mind when dealing with grievances
concerning harassment. For further details see our fact sheet on

Handling grievances informally

Individuals should be encouraged to discuss ordinary, day-to-day issues informally

with their line manager. This helps concerns to be heard and responded to as soon as
Where this has been unsuccessful, or circumstances make this route inappropriate for
the individual, then matters should raised formally through the grievance procedure.

Handling grievances formally

Employees should also be aware of the formal route open to them, including:
the three stages of the statutory procedure and any further elements of the
organization’s additional procedures
with whom to raise the complaint and appropriate sources of support
timescales within which the organization will seek to deal with the complaint
details of the stages of the grievance procedure e.g. how a complaint may be raised
with the next level of management if a satisfactory resolution is not reached.
An employee should be given the right to be accompanied to grievance hearings by a
colleague or trade union representative as explained above.
As in disciplinary matters, record keeping is important

Your employer’s grievance procedure may have more than three steps, but it must
include the following.
1. Written statement
You must set out your grievance in writing (often called a ‘step one letter’). Your
employer’s grievance procedure should say who to send your letter to. If that’s the
person causing the problem, or if they’ve ignored previous complaints, send it to the
HR department or to the person’s boss.
2. Meeting:
Your grievance should be looked into in a fair and unbiased way. Your employer
should invite you to a meeting (sometimes called a hearing) to discuss the problem,
and you should attend if you can. If there is someone else involved, they might also be
there (but you should tell your employer if you are uncomfortable with this).The
meeting should be at a convenient time for you and anyone else involved. If you think
you’ve not had enough time to prepare, ask for more time. If your employer doesn’t
agree (and they don’t have to), you should go to the hearing, but make sure that your
lack of preparation time is noted. Gather your thoughts before the meeting. Don’t be
afraid to write down what it is you want to say. There is nothing wrong with reading
this out at the meeting. It is up to your employer what format the meeting takes but
they will normally go through the issues that have been raised and give you the
opportunity to comment. The main purpose of the meeting should be to try to
establish the facts and find a way to resolve the problem. The Advisory, Conciliation
and Arbitration Service (Aces) have a code of practice which sets out how your
employer should carry out a grievance procedure. If you ask your employer
beforehand, you have a legal right to take a ‘companion’ (who is a colleague or trade
union representative) to the meeting with you. If no colleague is willing to accompany
you, and you’re not a union member, ask if you can bring a family member or a
Citizen’s Advice Bureau worker (but your employer does not have to agree to this).
The companion can present and/or sum up your case, talk on your behalf and confer
with you during the hearing. They’re protected from unfair dismissal or other
mistreatment for supporting you. The meeting must be at a convenient time for your
companion. You can ask for a postponement of up to five days if necessary to get
your chosen companion there. You should be given notes of the meeting, and copies
of any information given by other people. Unless they need to investigate further,
your employer should tell you reasonably quickly what’s been decided, and about
your right to appeal if you’re not satisfied. You might be told of the outcome verbally
at first but it will usually be confirmed in writing.
3. Appeal meeting:
If you’re not satisfied with the decision, or you think the procedure followed was
seriously flawed, you have the right to an appeal. This is usually heard by a higher
level of management. If that isn’t possible, your employer could ask an Aces
mediator or other independent person to hear it. The appeal hearing is similar to the
original meeting, and you have a right to a companion, as before. Your employer
should give you enough time to appeal. If they don’t, make your appeal anyway, and
say that you’ll provide more information later. If you are considering taking your
issue to an Employment Tribunal you may want to appeal even if it seems pointless,
because a tribunal award could be reduced if you don’t. If you can’t sort out the
dispute, you can get help through mediation, conciliation or arbitration, if your
employer agrees to it.



Discipline is required for both the organization and the individual. In the
organization it is needed to regulate the behavior of people, maintain peace and
channel their efforts towards organizational goal. Sad to sate, most people do not
exercise self discipline and this fact makes external control necessary for brining
order within an organization.

Discipline is not a glamorous term. It is viewed with fear and suspicion in
organization. The multiple explanation advanced by different expert in the filed have
only added to the prevailing confusion.


Traditionally, discipline is interpreted as a sort of check or restraint on the freedom

of person. Discipline is used to the act of imposing penalties for wrong behavior. If
employees fail to observe rules, they are punished. “Discipline is the force that
prompts an individual or a group to observe the rules, regulations and procedures
which are deemed to be necessary to the attainment of an objective,”


Employees comply with rules not out fear of punishment but out of an inherent
desire to cooperate and achieve goals. Where the organizational climate is market by
two-way communication, clear goals, effective leadership, adequate compensation
employees need not be discipline in the traditional way. Positive discipline, according
to Spriegel enables an employee, “to have a greater freedom in that he enjoys a
greater degree of self-expression in striving to achieve the objective, which he
identifies as his own.”


Point Negative Discipline Positive Discipline

Concept It is adherence to established It is the creation of a

norms and regulation, out of conductive climate in an
fear of punishment. organization so that employees
willingly confirm to the
established rules
Conflict Employees do not perceptive There is no conflict between
the corporate goals as there individual and organizational
own. goals.
Supervision Require intense supervisory Employees exercise self-
control to prevent employees control to meet organizational
from going off the track. object ivies.


Behavioral scientist view discipline as a self- control to meet organizational

objectives. Megginson clarified the term thus. “By self- discipline he mans the
training that correct, moulds and strengthens. It refers to one’s efforts at self control to
certain needs and demands. This form of discipline is raised on to psychological
principles. First, punishment seldom produce the desired result. Often, it produce
undesirable result. Second, a self- respecting person tends to be a better worker than
one who is not.”


The concept o progressive discipline states that penalties must be appropriate to

the violation. If inappropriate behaviour is minor in nature and has not previously
occurred an oral may be sufficient. If the violation requires a written warning, it must
be done according to a procedure. After written warnings, if the conduct of the
employees is still not along desired lines, serious punitive steps could be initiated. In
case of major violations such has hitting a supervisor may justify the termination of an
employee immdiately. In order to assist a manager to recognize the proper level of
disciplinary action, some firms have formalized the procedure.


Without the continual support of the subordinate, no manager can get things done.
But disciplinary action against a delinquent employee is painful and generates
resentment on his part.
According to the Red Hot Stove rule disciplinary action should have following
A} Burns immediately: If disciplinary action is to be taken, it must occur
immediately so the individual will understand the reason for it. With the passage of
time, people have tendency to convince themselves that they are not fault.

B} provides warning: It is very important to provide advance warning that

punishment will follow unacceptable behaviour. As you move closer to hot stove you
are warned by its heat that will be burned.

C} Burns impersonally: Disciplinary action should be impersonal. There are no

favorites when this approach is followed.


The Industrial Employment Act was passed in 1946 with a view to improve the
industrial relation climate. The Act requires that all establishment must define the
service rules and prepare standing order. The term Standing order refers to the rules
and regulation which governs the condition of employment of workers. They indicate
duties and responsibility on the part of both the employer and the employees. The
standing order contains rules relating to classification of employees, working hours,
holidays, shift working, attendance, leave, suspension, stoppage of work, redreassal of
these terms and condition may lead to misconduct or indciplpine.


Though there is no rigid and specific procedure for taking disciplinary action, the
disciplinary procedure followed in Indian industries usually consist of the following
a. Issuing the letter of charge: When a employee commits an act of misconduct
that required disciplinary action, the employee concerned should be issue a charge
sheet. Charges of misconduct or indiscipline should be clearly and precisely stated
in the charge sheet.

b. Consideration of explanation: On getting the answer for the letter of charge

served, the explanation furnished be consider and if it is a satisfactory, no
disciplinary action need be taken. On the contrary when the management is not
satisfied with the employees explanation there is a need for serving a show-cause

c. Show-cause notice: Show-cause notice is issued by the manager when he believes

that there is a sufficient prima facie evidence of employees misconduct. Enquiry
should also initiated by first serving him a notice of enquiry indicating clearly the
name of enquiring officer, time, date and place of enquiry etc.

d. Holding of a full fledge enquiry: These must be in conformity with the principle
of natural justice, that is the employee concerned must be given an opportunity, of
being heard. When the process of enquiry is over an findings of the same are
record, the enquiry officer should suggest the nature of disciplinary action.


Using the disciplinary process

There are two main areas where the disciplinary system is used:
capability/performance and conduct.


It is inevitable that at some stage all employers will encounter difficulties with the
performance of their employees in the workplace (these can stem from difficulties on
the part of the organization such as insufficient training and support, or a lack of
leadership or inappropriate systems of work, as well as the individual who is
struggling to fulfill their responsibilities). It is good practice and also more efficient
that such issues are addressed informally, as and when they arise, by managers via
discussions which clarify 'what good performance looks like', goal setting, support
and timely positive feedback where appropriate. Only when these options have been
exhausted and where there is no alternative should managers should enter a more
formal disciplinary procedure.
Situations where an individual is unable to do their job because of ill-health also fall
into this category. In these instances an employee should be dealt with
sympathetically and offered support. However, unacceptable levels of absence could
still result in the employer making use of warnings.


Employee misconduct could range from continued lateness, failure to follow a

reasonable management instruction, abuse of the organization’s computer system or
Internet access, bullying behaviour or creating a hostile work environment, through to
theft, fighting and committing criminal offences. The more grave offences may
constitute gross misconduct. In all cases, even gross misconduct, an employer should
attempt to follow the statutory procedures.
Stages of the process
If disciplinary action is to be taken, it should always have three main stages:
1] Letter
2] Meeting
3] Appeal.
There must always be a full and fair investigation to determine the facts and to decide
if further action is necessary.


All records should be kept meticulously, as this will be vital should a case be
perused at an employment tribunal. Since the burden of proof is on the employer to
show that the dismissal is not unfair or unreasonable, keeping records is vital. Type of
records that should be kept by employers is minutes of meetings, attendance, notes of
telephone calls, copies of correspondence etc.
Handing disciplinary interviews

All line managers should be trained and supported so that they are able to carry out
disciplinary meetings with their team. The HR department should be able to assist
them by providing a source of independent advice on preparing for and conducting
the interview, as well as sharing knowledge about similar cases in the organization
and relevant legislation.

The key points to consider are:

Ensure you have investigated all the facts in advance (including consulting the
individual's personal file for relevant information) and plan how you will approach
the meeting.
Make sure the employee knows from the letter inviting them to the meeting why they
have been asked to attend and that they have a right to have a companion present.
Make sure the individual has reasonable notice, ideally more than 48 hours; so that
they have a chance to arrange an appropriate representative if they wish.
Make sure another member of management can be there to take detailed notes and

Conduct the interview.

Never pre-judge the outcome of the interview before hearing the employee's
Start the interview by stating the complaint to the employee and giving appropriate
statements from people involved.
Give the employee ample opportunity to put forward their side of the story and call
any supporting witnesses.
You can also call witnesses, but they can only be in the room for the relevant part of
the interview - not the duration.
Make use of adjournments: always take a break to consider and obtain any extra
information you need before reaching your decision. You can also use if things
become heated or people are upset during the interview.
Deliver the decision (and give reasons, taking into account any mitigating
circumstances), confirm review periods and ensure you give details of how to appeal.
Confirm the decision in writing.
It is important that everyone involved in disciplinary action understand the
importance of following the correct procedure, as even if the case against an
employee seems proven, they can still be deemed to have been treated unfairly if the
correct procedures are not followed.
An individual is entitled to be accompanied by a work colleague or trade union
official at formal disciplinary and grievance interviews, and to select a companion of
their choice. It would be good practice for an employer also to offer this at any purely
investigatory meeting.

No action

After the meeting, the employer may decide that no action is necessary. For
example, if an employee was unclear about what was expected from them and they
agree to try to resolve the issue via additional support or counseling.


Alternatively, the employer may decide to give the employee a warning. An

organization’s policy should outline exactly what warnings will be given, but the
following are likely:
Recorded oral warning
First written warning
Final written warning.
Clearly these stages represent an increase in seriousness. With the exception of
extreme examples of misconduct, it would be inappropriate to 'skip stages' in the
process. Ultimately, failure to reach the organization’s standards may result in
Any warning should also specify a review period during which the individual receives
appropriate support and their performance can be monitored.
Disciplinary warnings should normally have a specified 'life' after which they are
disregarded when considering any subsequent warnings. Typical timescales for the
types of warning are:
recorded oral warning - 6 months
first written warning - 1 year
final written warning - 2 years.
Where misconduct has been very serious, it may be appropriate for the warning to
continue to be regarded indefinitely.


Recruitment means to estimate the available vacancies and to make suitable

arrangements for their selection and appointment. Recruitment refers to “Discovering
potential applicants for actual or anticipated organizational vacancies. Recruitment is
a process “To discover the source of manpower to meet the requirements of staffing,
to employ effective measures for attracting potential manpower in adequate number”.
Recruitment is the process of identifying the sources for prospective candidates and to
stimulate them to apply for the job. It’s linking activity bringing together those with
jobs and those seeking jobs. It locates the source of manpower to meet the
requirements and job specifications. In recruitment process available vacancies are
given wide publicity and suitable candidates are encouraged to submit application so
as to have a pool of eligible candidates for scientific selection.
In recruitment, information is collected from interested candidates. For these different
sources of recruitment such as newspaper advertisement, employment exchange,
internal promotions, etc. are used. In the recruitment, a pool of eligible and interested
candidates is created for the selection of most suitable candidate. Recruitment
represents the first contact that a company makes with potential employees.
Recruitment is a positive function in which publicity is given to the jobs available in
the organization and interested candidates (qualified job applicants) are encouraged to
submit applications for the purpose of selection.

According to Edwin Flippo, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.

The objectives of recruitment are as follows:
(i) To attract people with multi-dimensional skills and experiences that suit
the present and future organizational strategies,
(ii) To induct outsider with a new perspective to lead the company,
(iii) To infuse fresh blood at all levels of the organization,
(iv) To develop an organizational culture that attracts competent people to the
(v) To search or head hunt/head pouch people whose skills fit the company’s
(vi) To search for talents globally and not just within the company.

Recruitment has three major purposes:
1) to increase the pool of job applicants with minimum cost.
2) To meet the organization’s legal and social obligations regarding the
demographic composition of its workforce.
3) To help increase the success rte of the selection process by reducing the
percentage of applicants who are either poorly qualified or have the wrong


The need for recruitment may be due to the following reasons/situations:
(a) Vacancies due to promotions, transfers, retirement, termination, permanent
disability, death and labour turnover.
(b) Creation of new vacancies due to growth, expansion and diversification of
business activities of an enterprise. In addition, new vacancies are possible due
to job respecification.

The sources of recruitment may be grouped into:

Internal sources
External sources

INTERNAL SOURCES: As the term implies internal source of recruitment is for

those who are currently members or the organization. Whenever any vacancy arises,
somebody from within the organization may be looked into, following are the internal
sources of recruitment.

1) Promotions: - In order to motivate the existing employees, management

follows the policy of internal promotions. Promotion means shifting of an
employee to a higher position carrying higher responsibilities, facilities, status
and salaries. Various positions in the organization are usually filled up by
promotions of existing employees on the basis of merit or seniority or a
combination of both.
2) Transfers: - Transfer refers to a change in job assignment. It may involve a
promotion or demotion, or no change in terms of responsibility or status. A
transfer may be either temporary or permanent, depending the necessity of
filling jobs. E.g. transfer from head office to branch office.
3) Retirements: - At times, management may not find suitable candidate in place
of the one who had retired, after meritorious service. Under this circumstances
management may decide to call retired manager with new extension.
4) Recalls: - When management faces a problem, which can be solved only by a
manager who has proceeded on long leave, it may be decided to recall that
person. After the problem is solved, his leave may be extended.
5) Former employees: - Individuals who left for some other job, might be
willing to come back for higher wages incentives. An advantage with these
sources is that the performance of the person/employee is already known.

As the term implies the external source of recruitment is of potential workers who are
not currently member of the organization. It usually includes new entrants to the
labour force the unemployed and people employed in the other organization seeking
the change. Company managements have to use eternal sources for the recruitment of
supervisory staff and managers as and when necessary. This may be with a view to
introducing the ‘new blood’ in the organization. External recruitment is one way of
bringing into the organization that has new skills or abilities and different way of
approaching job task. Following are the most common external source of managerial

1) Newspaper Advertisement:-Newspaper advertisements are overwhelmingly

popular source of recruitment. A message containing general information
about the job and the organization is placed in various newspapers. Newspaper
advertising typically generates a large applicant flow. Though costly, it
provides wide choice as it attracts a large number of suitable candidates from
all over the country. The best example for newspaper advertisement is the
Times of India’s Asscent supplement which comes on every Wednesday and
contains both domestic as well as international jobs.
2) Campus Recruitment: - College Campuses are another very popular
recruitment source. The growth of Management institutes, IIts and Regional
Engineering Colleges has provided a popular source of recruitment. Private
sector is able to attract many aspirants. It is an excellent source of recruiting
management trainees. The promising students get job security immediately
after securing degrees due to such campus interviews/recruitment.
3) Recruitment through internet: - The Internet has quickly become a very
popular source of employment advertising. This source is quickly growing in
popularity. Currently employers can post their openings to any of several
newsgroups for free. Most employment advertisement firms can also post the
jobs on the Internet; however, they charge a fee. A large and fast growing
proportion of employers use the internet as a recruitment tool. More and more
organizations are placing information about open positions on the World Wide
web. There are many web sites through which recruitment takes place. Some
of the examples are,, etc.

4) Job Fairs: - Job fairs are very effective. A job fair is an event sponsored by a
"job fair" company who charges a fee to participating employers. The "job
fair" company will typically advertise in local media to attract qualified
applicants. Hiring managers can meet multiple candidates and conduct on-the-
spot interviews. Because the applicants may be interviewing with multiple
employers, it is imperative to respond quickly with invitations for in-plant
interviews of qualified candidates. If a job fair results in just one hire it is
usually cost effective.
5) Employment Agencies: - The firm contacts an organization whose main
purpose is locate job seekers. The company provides the agency with
information about the job, which the agency then passes along to its clients.
Clients may be either employed or unemployed. Agencies can either be public
or private. Fees may be charged to either or both the client seeking a job and
the company seeking applicants.
6) Walk-ins, Write-ins and Talk ins:- The most economical approach for
recruitment of candidates is direct applications. The job seekers submit
applications or resumes directly to the employer. The advertisement mentions
date, day and timing during which the applicant can ‘walk in’ for an interview.
Write-ins are those who send written inquiries. These applicants a raked to
complete application forms for further processing. Talk-ins is now becoming
popular and the applicants are required to meet the employer for detailed talks.
The applicant is not required to submit any applications.
1) Internal recruitment is economical.
2) The present employees already know the company well and are likely to
develop a loyalty for the same.
3) It tends to encourage existing employees to put in greater efforts and to
acquire additional qualification. This means there is motivation to employee
to develop and reach to higher positions.
4) It provides security and continuity of employment.
5) Internal recruitment helps to raise the morale of employees and develop
cordial relations at the managerial levels.
6) It reduces labour turnover as capable employees get promotion within the
7) Internal recruitment is a quick and more reliable method.
8) People recruited from within the organization do not need induction or


1) Internal promotions create a feeling of discontent among those who are not
2) It prevents the entry of young blood in the organization.
3) Promotion to certain key post may not be possible due to non-availability of
competent persons.
4) The organization will not be able to attract capable persons from outside if
internal sources are used extensively.
5) It may encourage favoritism and nepotism.
6) Promotions by seniority may not be always beneficial to the organization.

In brief, internal methods of recruitment should be used to extent possible but too
much dependence on internal methods is undesirable and may prove costly to the
organization in the long run.


1) Entry of young blood in the organization is possible.
2) Wide scope is available for selection. This facilitates selection of people with
rich and varied experience.
3) Selection can be made in an impartial manner as large number of qualified and
interested candidates are available.
4) Scope for heartburn and jealousy can be avoided by recruiting from outside.
5) The management can fulfill reservation requirements in favour of the
disadvantaged section of he society.


1) External recruitment leads to labour turnover particularly of skilled,
experienced and ambitious employees.
2) The relations between employer and employee deteriorate leading to
industrial disputes and strikes.
3) The present employees may lose their sense of security. Their loyalty to the
organization may be adversely affected.
4) Employees feel frustrated due to external recruitment and their morale is
adversely affected.



Selection is one of the most important of all functions in the management of
personnel. Selection is more closely related to recruitment because both are
concerned with processing individuals to place them in a job. Selection is next to
recruitment. After identifying the sources of human resources, searching for
prospective employees and stimulating them to apply for jobs in an organization,
the management has to perform the function of selecting the right employees at
the right time. “Right man at the right job” is the basic principle in selection.
Selection is the process of collecting and evaluating information about an
individual in order to extend an offer of employment. It is the process of logically
choosing individuals who posses the necessary skills, abilities and personality to
successfully fill specific jobs in the organization.
Selection means a process by which the qualified personnel can be choosen from
the applicants who have offered their services to the organization for employment.
Thus selection process is negative function because it attempt to eliminate
applicants, leaving the best to be selected. In the words of Dale Yodev, “Selection
is the process in which candidates for employment are divided into two classes –
those who are to be offered employment and those who are not”. In short,
selection is the process of choosing a person suitable for the job out of several
The objective of the selection decision is to chose the individual who can most
successfully perform the job from the pool of qualified candidates. The selection
procedures are the system of functions and devices adopted in a given company to
ascertain whether the candidate’s specification is matched with the job
specification and requirements or not. The selection procedures cannot be
effective until and unless:
1) Requirements of the job to be filled, have been clearly specified (job analysis,
2) Employee specifications (physical, mental, social, and behavioral, etc) have
been clearly specified.
3) Candidates for screening have been attracted.
Thus, the development of job analyses, human resource planning and recruitment
are necessary prerequisites to the selection process. The breakdown in any of
these processes can make even the best selection system ineffective.
The importance of selection may be judged from the following facts:-

1) Procurement of Qualified and Skilled Workers: - Scientific selection

facilitates the procurement of well qualified and skilled workers in the
organization. It is in the interest of the organization in order to maintain the
supremacy over the other competitive firms. Selection of skilled personnel
reduces the labour cost and increases the production. Selection of skilled
personnel also facilitates the expansion in the size of the business.

2) Reduce Cost of Training and Development:- Proper selection of candidates

reduces the cost of training because qualified personnel have better grasping
power. They can understand the technique of work better and in less time.
Further, the organization can develop different training programmes for
different persons on the basis of their individual differences, thus reducing the
time and cost of training considerably.

3) Absence of Personnel Problems: - Proper selection of personnel reduces

personnel problems in the organization. Many problems like labour turnover,
absenteeism and monotony shall not be experienced in their severity in the
organization. Labour relation will be better because workers will be fully
satisfied by the work. Skilled workers help the management to expand the
business and to earn more profits and in turn management compensates, the
workers with high wages, benefits etc.


Selection procedure employs several methods of collecting information about the

candidate’s qualification, experience, physical and mental ability, nature and
behaviour, knowledge, aptitude and the like for judging whether a given applicant is
or is not suitable for the job. Therefore, the selection procedure is not a single act but
is essentially a series of methods or stages by which different types of information can
be secured through various selection techniques. At each step, facts may come to light
which are useful for comparison with the job requirement and employee
Selection procedure is lengthy and time consuming particularly in the case of
supervisory post.
Following are the steps/ procedures of selection:

1) Job Analysis: - Job analysis is the basis for selecting the right candidate.
Every organization should finalize the job analysis, job description, job
specification and employee specification before proceeding to the next step of

2) Application Form: - Application Form is also known as application blank.

The technique of application blank is traditional and widely accepted for
securing information from the prospective candidates. Where application
forms are use, the data become a part of the employee’s record. The
information is generally required on the following items in the application
forms: Personal background information, Educational information, Work
experiences, salary, personal details, expected salary and allowances etc.

3) Preliminary Interview: - Preliminary or initial interview is often held in case

of “at the gate” candidate. This interview usually of short duration and is
aimed at obtaining certain basic information with a view to identifying the
obvious misfits or unqualified. Thus preliminary interview is useful as a
process of eliminating the undesirable and unsuitable candidate. If the
candidate seems to possess the basic minimum requirements for efficient job
performance, he is given an application form for being filled out by him.

4) Screening Application Form: - Information given in the application form is

used for selection purposes. The applicant who seems to be not fit for the job
on the basis of information given in the application blank is rejected out
rightly at this stage. The applicants who have not furnished the required
information may also be rejected. Applications will not be accepted after the
close date. After the close date of the recruitment, the Job Expert for the
hiring department and Human Resources will screen the application forms for
minimum education and qualification requirements. A recruitment date may
be extended if there are no qualified candidates. Recruitments can also be
open until the position is filled; in this situation, applicants are reviewed and
interviewed on a regular basis until an eligible candidate can be selected and
appointed to the available position.

5) Written test:- The organization have to conduct written examination for the
qualified candidates after they are screened on the basis of the application
blanks so as to measure the candidate’s ability in arithmetical calculations, to
know the candidate’s attitude towards job, to measure the candidates aptitude,
reasoning, knowledge in various disciplines, general knowledge and English
language. Intelligence test measures the individuals capacity or reasoning,
verbal comprehension, numbers, vocabulary, word fluency etc. aptitude test
measures individuals capacity or talent ability to learn a job if he is given
adequate training.

6) Final interviewing: - Final interview is usually followed by testing. This is

the most essential step in the process of selection. In this step the interviewer
matches the information obtained about the candidate through various means
to the job requirements and to the information obtained through his own
observation during the interview. The basic objective of the interview is to
measure the applicant against the specific requirements of the job. Interview
must be conducted in a friendly atmosphere and the candidate must be made to
feel at ease. The interviewer should not ask unwarranted questions which
make the candidate nervous. It being the two way communication, the
interviewee should also be given a chance to ask questions if he so likes, about
the job and the organization.

7) Reference Checks: - After completion of the final interview, the personnel

department will engage in checking references. Candidates are required to
give the name of reference in their application forms. These references may be
from the individuals who are familiar with the candidate’s academic
achievement or from the applicant’s previous employer, who is well versed
with the applicant’s job performance, and sometime from co-workers. If
reference is checked in the correct manner, a great deal can be learned about a
person that an interview or tests cannot elicit. A good reference check used
sincerely fetches useful and reliable information to the organization.

8) Physical Examination: - The candidates who have crossed the above hurdles
are required to go for the medical examination. This is very important because
of a person of poor health cannot work competently and the investment in him
may go waste. Thus, a thorough medical examination is essential.

9) Selection: - If a candidate successfully overcomes all the obstacles or tests

given he would be declared selected. A appointment letter will be given to him
mentioning the terms of employment, pay scales, post on which selected etc.
Placement means offering of the job to the finally selected candidate. One the
employee is selected he should be placed on a suitable job. According to Pigors
and Myres, placement may be defined as “the determination of the job to which an
accepted candidate is to be assigned, and his assignment to that job. It is matching
of what the supervisor has reason to think he can dos with the job demands(job
requirements); it is matching of what he imposes(in strain, working condition) and
what offers is the form of pay roll, companionship with other promotional
possibilities etc.” A proper placement reduced the employee turnover,
absenteeism and accident rate and improves the morale. Placement is not an easy
process. It is very difficult for a new employee who is quite unknown to the job
and environment. For this reason, the employee is generally put on a probation
period ranging from one year to two years. At the end of the probation period, if
the employee show a good performance, he is confirmed as a regular employee of
the organization. Thus, the probation period or trial period is a transition period at
the end of which management has to take decision whether the employee should
be made regular or discharged from the job.

Following principles are followed at the time of placement of an employee:

1) The man should be placed on the job according to requirements of the job. The
job should not be adjusted according to the qualifications or requirements of
the man. “Job first, man next” should be the principle of placement.

2) The job should be offered to the man according to his qualifications. Neither
higher, nor lower job should be offered to the new employee.
3) The employee should be made conversant with the conditions prevailing in the
industry and all things relating to the job. He should also be made aware of the
penalties if he commits a wrong.

4) While introducing the job to the new employee, an effort should be mad to
develop a sense of loyalty and cooperation in him so that he may realize his
responsibilities better towards the job and the organization.

The term career planning is frequently used in relation young boys and girls
studying at the college level. College students are expected to consider their qualities
(physical and mental), psychological make-up, likes and dislikes, inclinations, etc.
and decide what they want to be in their life. In other words, they should decide what
they want to achieve in their life and adjust their education and other activities
accordingly. This means they have to plan their career. In such career planning,
parents, family members and college teachers offer helping hand and guide young
boys and girls in selecting the most suitable career. Lot of literature, psychological
tests etc. are also available on career planning. Even lectures, workshops and TV
programmes are arranged for guiding students on career selection (particularly after
the declaration of HSC results). Career planning enables them to use their
abilities/qualities fully and make their life happy, prosperous and rich in quality. At
present, even experts are available to help youth in their career planning. IQ and other
tests are also conducted for this purpose.
The term career planning and development is used extensively in relation to
business organizations. It is argued that if the organizations want to get the best out of
their employees, they must plan the career development programmes in their
organization effectively. Such programmes offer benefits to employees and also to the
organizations. The employees will develop new skills will be available to the
organization. This type of career planning can be described as organizational career


A career is a sequence of positions/jobs held by a person during the course of his
working life. According to Edwin B. Flippo “a career is a sequence of separate but
related work activities that provide continuity, order and meaning to a person’s life”.
Career of an employee represents various jobs performed by him during the course of
his working life. This is described as career path. In the case of an ordinary worker,
the career path includes the following job positions:
Unskilled worker – Semi-skilled worker – Skilled worker – Highly skilled
worker – Assistant foreman – Foreman.

Employees (of all categories) want to grow in their careers as this provides more
salary, higher status and opportunity to use knowledge, education and skills
effectively. An individual with potentials joins a firm not for job but for career
development. An organization has to provide better opportunities to its employees in
their career development and also use their efficient services for the benefit of the


Career planning is one important aspect of human resource planning and
development. Every individual who joins an organization desires to make a good
career for himself within the organization. He joins the organization with a desire to
have a bright career in terms of status, compensation payment and future promotions.
From the point of view of an organization, career planning and development have
become crucial in management process. An organization has to provide
facilities/opportunities for the career development of individual employees.
If the organizations want to get the best out of their employees, they must plan
regularly the career development programmes in their organizations. In brief, career
planning refers to the formal programmes that organizations implement to increase
the effectiveness and efficiency of the human resources available. Career planning
and development is the responsibility of the HR department of the organization. As
already noted, every person joining an organization has a desire to make career as per
his potentiality, ability, skills and so on.


1) To map out careers of employees as per their ability and willingness and to
train and develop them for higher positions.
2) To attract and retain the right type of persons in the organization.
3) To utilize available managerial talent within the organization fully.
4) To achieve higher productivity and organizational development.
5) To provide guidance and assistance to employees to develop their potentials to
the highest level.
6) To improve employee morale and motivation by providing training and
opportunities for promotion.


The following activities/areas are covered within the scope of organizational career
Here, efforts will be made to identify the number of employees required in
future. In addition, the selection procedure will be adjusted with the overall
strategic goals of the organization.
Here, information relating to career opportunities (promotions, training for self
development, etc) will be supplied to employees. Supplying career
information/opportunities has special significance as this motivates employees
to grow and reach to higher position.
Such counselling is next to supplying career information. Career counselling is
possible by senior executives through periodic discussions with their
subordinates. Such career guidance encourages subordinate employees to take
interest in certain areas where suitable opportunities of career development are
available. It is a type of internal guidance and motivation of employees for the
selection of possible career paths. Such counselling is needed when employees
have to plan their own careers and develop themselves for career progress.
Management now plans job sequences for transfers and promotions of their
employees. This makes transfers and promotions systematically with advance
information to employees. Career pathing creates suitable mental make up of
employees for self development.
Training is essential for career planning and also for manpower development.
Along with job analysis, organizational and job manpower requirement
analysis should be undertaken by the management. This prepares proper
background for the introduction of career planning programmes for


A properly designed system of career planning can provide the following benefits:
i. Career planning helps an employee to know the career opportunities available
in an organization.
ii. Career planning encourages him to avail of the training and development
facilities in the organization so as to improve his ability to handle new and
higher assignments.
iii. Career planning involves a survey of employee abilities and attitudes. It
becomes possible, therefore to group together people talking on a similar
wavelength and place them under supervisors who are responsive to that
iv. Career planning anticipates the future vacancies that may arise due to
retirement, resignation, death, etc. at managerial level. Therefore, it provides a
fairly reliable guide for manpower forecasting.
v. Career planning facilitates expansion and growth of the enterprise. The
employees required to fill job vacancies in future can be identified and
developed in time.


The main problems in career planning are as follows:
i. Career planning can become a reality when opportunities for vertical ability
are available. Therefore, it is not suitable for a very small organization.
ii. In a developing country like India, environmental factors such as government
policy, public sector development, growth of backward areas, etc. influence
business and industry. Therefore, career plans for a period exceeding a decade
may not be effective.
iii. Career planning is not an effective technique for a large number of employees
who work on the shop floor, particularly for illiterate and unskilled workers.
iv. In family business houses in India, members of the family expect to progress
faster in their career than their professional colleagues. This upset the career
planning process.
v. Systematically career planning becomes difficult due to favouritism and
nepotism in promotions, political intervention in appointments and
reservations of seats for scheduled castes/tribes and backward classes.


It is not easy to introduce career development programme at the level of an
organization. Moreover, such career development planning is a continuous activity.
What is happening in most of the organizations is that this concepts is given only lip
service and theoretical importance. If the organization wants to get the best out of
their employees, it must plan the career developments programmes continuously and
effectively in its organization.
This is the first step which needs to be completed before the introduction of
career planning programme. This relates to a time from which career planning
is to be introduced. Here, the base line will be prepared to help the planners to
make projections for the planning period and to help in the evaluation of
plans. In order to analyze the present career situation, the following
information will be required:
i. Total number of employees – their age distribution, qualifications,
positions, specializations, etc.
ii. Structure – broad as well as detailed and the qualifications required for
each grade.
iii. Personnel need of the organization. (Category wise)
iv. Span of control available within the organization.
v. Field staff at head office with necessary details, and
vi. Facilitates available for training and development within and outside
the organization.

The information collected on these aspects serves as the base for the preparation of
career development plan for the future period.











In this second step, an attempt is being made to find out the situation likely to
develop after the completion of career development plan. This can be done on
the basis of assumption which can predict what is likely to happen at the close
of the career development plan.
In this third step of career development plan, efforts are made to find out
precisely the career development needs of the future period. It is possible to
identify the scope and limitations of career development needs on the basis of
the data collected (through personnel inventory of the organization, employee
potentials, and appraisal of employees).
It is rather difficult to meet all the needs of the employees and the organization
for career development immediately i.e. through one career development plan.
Naturally, there is a need to select the pressing and urgent problems of
employees and organization. In addition, other factors such as technical,
financial and administrative must be taken into consideration while finalizing
the priorities.
This is the most important step in the whole process of career developing plan.
Such plan must describe the following in concrete form/forms:
a. What is to be attained/achieved?
b. The extent to which it is to be attained,
c. The employees involved,
d. The department in which the proposed plan will operate;
e. The length of time required the achieving the goals.
In order to execute the career development plan, the organization should:
a) Introduce systematic policies and programmes of staff training and
career development for all categories of employees so as to enable
them to:
I. Improve their level of skill and knowledge;
II. Gain wider experiences; and
III. Assume higher responsibilities.
b) Establish and effectively implement a system of study
c) Develop the experience of the employees by encouraging
their rotation from one region to another;
d) Take positive steps to encourage career development, such
I. Providing within the organization;
II. Giving priorities in the filling of vacancies in the following order
1. promotion within the organization;
2. Transfer within the organization;
3. Outside recruitment.
III. Removing artificial barriers to promotion;
IV. Establishing a register of employees for promotion on merit-cum-
seniority basis;
After deciding the priorities of career development plan, the next major step is
to prepare a write up (brief report) of the career plan. This writ-up should
contain all necessary details such as schedule (time sequence of plan),
procedures and other details so that the evaluation of the plan will be easy and
Monitoring of the plan is essential for its effective execution. Expected
results/benefits will be available only when the plan is implemented properly.
Planned (expected) targets and targets actually achieved can be compared
through suitable monitoring of the plan. The gap between the two (i.e. short
falls) can be located quickly. In addition, suitable remedial measures can be
taken to rectify the shortfalls.
Implementation/execution of the plan is an integral aspect of planning process
itself. For effective implementation, co-operation and co-ordination at all
levels is necessary. The implementation needs proper monitoring so as to
avoid possible shortfalls.
A plan needs periodical review. Such evaluation avoids mistakes, deficiencies,
etc during the implementation stage. It is built-in device to measure the
effectiveness of the plan. Actual benefits available will be known only through
such review and evaluation. Such evaluation should be done by experts. It
should be conducted systematically and also impartially.
This is the last step/stage of the current career development plan and the first
step/stage of the next plan. Here, on the basis of the achievements of the
current plan, the career needs of the future period (of employees and also of
the organization) are estimated. The new priorities are decided and the details
of the new career development plan are prepared. Planning is a continuous
process/activity. This rule is applicable to career development plans of an

Education is thought of in terms of employment. People go for school and college
education and prepare for their occupation. Very few people stick to the same job
throughout their life. Most of them switch job either within the organization or in
some other organization. Chances are they change jobs, depending on available
opportunity, several times before retirement. Where opportunity is restricted they
continue with the same job. They go through the following stages:
Almost all candidates who start working after college education start around
mid-twenties. Many a time they are not sure about future prospects but take up
a job in anticipation of rising higher up in the career graph later. From the
point of view of organization, this stage is of no relevance because it happens
prior to the employment. Some candidates who come from better economic
background can wait and select a career of their choice under expert guidance
from parents and well-wishers.
This career stage begins with the candidate getting the first job getting hold of
the right job is not an easy task. Candidates are likely to commit mistakes and
learn from their mistakes. Slowly and gradually they become responsible
towards the job. Ambitious candidates will keep looking for more lucrative
and challenging jobs elsewhere. This may either result in migration to another
job or he will remain with the Same job because of lack of opportunity.
This career stage represents fastest and gainful leap for competent employees
who are commonly called “climbers”. There is continuous improvement in
performance. On the other hand, employees who are unhappy and frustrated
with the job, there is marked deterioration in their performance. In other to
show their utility to the organization, employees must remain productive at
this stage. “climbers” must go on improving their own performance.
Authority, responsibility, rewards and incentives are highest at this stage.
Employees tend to settle down inn their jobs and “job hopping” is not
This career stage is pleasant for the senior employees who like to survive on
the past glory. There is no desire to improve performance and improve past
records. Such employees enjoy playing the role of elder statesperson. They are
expected to train younger employees and earn respect from them.
This career stage represents the completion of one’s career usually
culminating into retirement. After decades of hard work, such employees have
to retire. Employees who were climbers and achievers will find it hard to
compromise with the reality. Others may think of “life after retirement”.


LOW 25 35 45 55 60
Career development consists of the personal actions one undertakes to achieve a
career plan. The terms ‘career development’ and ‘employee development’ need to be
differentiated at this stage. Career development looks at the long-term career
effectiveness of employees where as employee development focuses of effectiveness
of an employee in the immediate future. The actions for career development may be
initiated by the individual himself or by the organization.


Career progress and development is largely the outcome of actions on the part of
an individual. Some of the important steps that could help an individual cross the
hurdles on the way ‘up’ may include:
Career progress rests largely on performance. If the performance is sub-
standard, even modest career goals can’t be achieved.

Career development comes through exposure, which implies becoming known
by those who decide promotions, transfers and other career opportunities. You
must undertake actions that would attract the attention of those who matter
most in an organization.
Networking implies professional and personal contacts that would help inn
striking good deals outside (e.g., lucrative job offers, business deals, etc.). for
years men have used private clubs, professional associations, old-boy
networks to gain exposure and achieve their career ambitions.
Resigning to further one’s career with another employer is known as
leveraging. When the opportunity is irresistible, the only option left is to
resign from the current position and take up the new job (opportunity in terms
of better pay, new title, a new learning experience, etc.). however, jumping the
jobs frequently (job-hopping) may not be a good career strategy in the long-
Professionals and recent college graduates generally jump jobs frequently
when they start their career. They do not think that career-long dedication to
the same organization may not help them further their career ambitions. To
overcome this problem, companies such as Infosys, NIIT, WIPRO (all
information technology companies where the turnover ratios are generally
high) have come out with lucrative, innovative compensation packages in
addition to employee stock option plans for those who remain with the
company for a specified period.
A mentor is, generally speaking, an older person in a managerial role offering
informal career advice to a junior employee. Mentors take junior employees
under their protégé and offer advice and guidance on how to survive and get
ahead in the organization. They act as role models. A sponsor, on the other
hand, is someone in the organization who can create career development


The assistance from managers and HR department is equally important in
achieving individual career goals and meeting organizational needs. A variety of tools
and activities are employees for this purpose.
Here the employees go through a process in which they think through their
life roles, interests, skills and work attitudes and preferences. They identify
career goals, develop suitable action plans and point out obstacle that come in
the way. Two self-assessment tools are quite commonly used in the
organizations. The first one is called the career-planning workshop. After
individuals complete their self-assessment, they share their findings with
others in career workshops. These workshops throw light on how to prepare
and follow through individual career strategies. The second tool, called as a
career workbook, consists of a form of career guide in the question-answer
format outlining steps for realizing career goals. Individuals use this company
specific, tailor-made guide to learn about their career chances. This guide,
generally throws light on organization’s structure, career paths, qualifications
for jobs and career ladders.
Employee counselling is a process whereby employees are guided in
overcoming performance problems. It is usually done through face-to-face
meetings between the employee and the counselor or coach. Here discussions
of employees’ interests goals, current job activities and performance and
career objectives take place. Counselling is generally offered by the HR
department. Sometimes outside experts are also be called in. if supervisors act
as coaches they should be given clearly defined roles and training. This is,
however, a costly and time-consuming process.


These consist of skill assessment and training efforts that organizations use to
groom their employees for future vacancies. Seminars, workshops, job
rotations and mentoring programmes are used to develop a broad base of
skills as a part of such developmental activities.
In recent years, there is growing evidence regarding dual career families
developing tensions and frictions owing to their inability to reconcile the
differences between the family roles and work demands. When we talk of
dual career couples (a situation where both husband and wife have distinct
careers outside the home) certain puzzling questions arise naturally: whose
career is important; who takes care of children; what if the wife gets a
tempting promotion in another location; who buys groceries and cleans the
house if both are busy, etc. realizing these problems, organizations are
providing a place and a procedure for discussing such role conflicts and
coping strategies. They are coming out with schemes such as part-time work,
long parental leave, child care centers, flexible working hours and promotions
and transfers in tune with the demands of dual career conflicts.
Employee must prove that his performance on the job is to the level of
standards established, if he wants career progress.
Employee’s desire for career progress should expose their skills, knowledge,
qualifications, achievements, performance etc., to those who take the decision
about career progress.

Employees may resign the present job in the organization, if they find that
career opportunities elsewhere are better than those of the present
Employees who put organizational loyalty above career loyalty may change
the job in the same organization are better than those in the present job.
And counselling provides information, advice and encouragements to switch
over to other career or organization, where career opportunities are better.

Training plays an important role in human resource development. It comes next to
recruitment and selection. In fact, the main purpose of training is to develop the
human resources present within the employees. In brief, training is the watchword of
present dynamic business world. Training is necessary due to technological changes
rapidly taking place in the industrial field. New machines, new methods and new
techniques are introduced in the production, marketing and other aspect of business.
Training is for developing overall personality of an employee. It also creates
positive attitude towards fellow employees, job and the organization where he is
working. Training is the responsibility of the management as it is basically for raising
the efficiency and productivity of employees.
The purpose of training is to achieve a change in the behaviour of those trained and
to enable them to do their jobs in a better way. The trainees will acquire new
manipulative skills, technical knowledge, problem solving ability or attitudes etc.
training is not a one step process but is a continuous or never-ending process.
Training makes newly recruited workers fully productive in the minimum of time.
Even for old workers, training is necessary to refresh them and enable them to keep
up with new methods and techniques. In short training is the act of improving or
updating the knowledge and skill of an employee for performing a particular job.

According to Edwin Flippo, training is “the act of increasing the knowledge and
skill of an employee for doing a particular job”.


A sound training programme must possess the following characteristics:
1. Training programme should be less expensive.
2. Training programme should be developed for all in the organization and not
for a particular group.
3. The programme should be conducted by a senior and experienced supervisor
or executive of the concern or by the training director who is incharge of the
training section under personnel department.
4. Training programme should be designed taking in view the interests of both
employer and employees.
5. It is not essential to follow the single method of training for all the employees.
The purpose of training is to develop the men and therefore more than one
method may be followed for different groups.
6. Training should be followed by a reward. A reward should be provided at the
conclusion of the training such as promotion or a better job so that employees
may be motivated.
7. Sufficient time should be provided to practice what has been learned by the


After an employee is selected, placed and introduced he or she must be provided
with training facilities. Training is the act of increasing the knowledge an skill of an
employee for doing a particular job. Training is a short-term educational process and
utilizing a systematic and organized procedure by which employees learn technical
knowledge and skills for a definite purpose. In other words training improves,
changes, moulds the employee’s knowledge, skill, behaviour, aptitude, and attitude
towards the requirements of the job and organization. Training refers to the teaching
and learning activities carried on for the primary purpose of helping members of an
organization, to acquire and apply the knowledge, skills, abilities and attitudes needed
by a particular job and organization.
Training is the most important technique of human resource development. As
stated earlier, no organization can get a candidate who exactly matches with the job
and the organizational requirements. Hence, training is important to develop the
employee and make him suitable to the job. Trained employees would be a valuable
asset to an organisation. Organizational efficiency, productivity, progress and
development to a greater extent depend on training. Organizational objectives like
viability, stability and growth can also be achieved through training.


The need for training of employee is universally accepted and practical training in
the form of information, instructions and guidance is given to all categories of
employees. It is a must for raising efficiency of employees. Training is necessary in
the present competitive and ever changing industrial world. Specifically, the need for
training arises due to the following reasons:
I. To match the employee specifications with the job requirements and
organizational needs: Management finds deviations between employee’s
present specifications and the job requirements and organizational needs.
Training is needed to fill these gaps by developing and moulding the
employee’s skill, knowledge, attitude, behaviour etc. to the tune of the job
requirements and organizational needs.
II. Organizational viability and the transformation process: The primary goal
of most of the organizations is that their viability is continuously influenced by
environmental pressure. If the organisation does not adapt itself to the
changing factors in the environment, it will lose its market share. If the
organisation desires to adapt these changes, first it has to train the employees
to impart specific skills and knowledge in order to enable them to contribute to
the organizational efficiency and to cope with the changing environment.
III. Technological advances: Every organization in order to survive and to be
effective should adopt the latest technology, i.e., mechanization,
computerization and automation. Adoption of latest technological means and
methods, will not be complete until they are manned by employees possessing
skill to operate them. So, organization should train the employees to enrich
them in the areas of changing technical skills and knowledge from time to
IV. Organizational complexity: With the emergence of increased mechanization
and automation, manufacturing of multiple products and by-products or
dealing in services of diversified lines, extension of operations to various
regions of the country or in overseas countries, organisation of most of the
companies has become complex. This creates the complex problems of co-
ordination and integration of activities adaptable for and adaptable to the
expanding and diversifying situations. This situation calls for training in the
skills of co-ordination, integration and adaptability to the requirements of
growth, diversification and expansion.
V. Human relations: Trends in approach towards personnel management has
changed form the commodity approach to partnership approach, crossing the
human relations approach. So today, managements of most of the
organizations has to maintain human relations besides maintaining sound
industrial relations although hitherto the managers are not accustomed to deal
with the workers accordingly. So training in human relations is necessary to
deal with human problems (including alienation, inter-personal and inter-
group conflicts etc.) and to maintain human relations.
VI. Change in the job assignment: Training is also necessary when the existing
employee is promoted to the higher level in the organisation and when there is
some new job or occupation due to transfer. Training is also necessary to
equip the old employees with the advanced disciplines, techniques or


1) To raise efficiency and productivity of employees and the organization as a
whole. This means to maintain and improve the work performance of
2) To create a pool of well trained, capable and loyal employees at all levels and
thereby to make provision to meet the future needs of an organization.
3) To provide opportunities of growth and self-development (career planning) to
employees and thereby to motivate them for promotion and other monetary
benefits. In addition, to give safety and security to the life and health of
4) To avoid accidents and wastages of all kinds. In addition, to develop balanced,
healthy and safety attitudes among the employees.
5) To meet the challenges posed by new developments in the field of science and
6) To improve the quality of production and thereby to create market demand and
reputation in the business world.
7) To develop positive attitude and behaviour pattern required by an employee in
order to perform a given job efficiently. In other words, the purpose of training
is to improve the culture of the organisation.
8) To develop certain personal qualities among employees which can serve as
personal assets on long term basis.


Induction training is basically for introducing the organisation to newly
appointed employees. It is a very short informative type of training given
immediately after joining the organization. It creates a feeling of involvement
in the minds of newly appointed employees. For induction training,
information booklets are issued and short informative films are shown. In
addition, lecture by personnel manger/HRD manger is also arranged.
Induction training creates favourable impression on the newly appointed
employees and this impression remains in their mind over a long period.
Job training relates to specific job which the worker has to handle. It gives
information about machines, process of production, instructions to be
followed, methods to be used and precautions to be taken while performing
the job. This training develops skills and confidence among the workers and
enables them to perform the job efficiently.
Promotion means giving higher position. Training must be given for
performing duties at a higher level efficiently. This facilitates easy and quick
adjustment with the new job and also develops new insight into the duties and
responsibilities assigned. For this, training is given after promotion and before
actually joining the new assignment. This training is specific, precise and of
short duration.
The purpose of refresher training is to refresh the professional skills,
information and experience of persons occupying important executive
positions. It gives information about new developments and techniques to
trainees and enables them to use new methods, techniques and procedures for
raising efficiency.
Corrective training is necessary when employees violate company rules and
procedures. For example, absence without prior sanction or smoking in a “No
smoking” area or not using safety devices while operating dangerous
machines. Here, the behaviour of employee cannot be changes simply by
disciplinary action. The manager should handle the problem with treatment
that corrects the outlook rather than giving punishment. The manager should
criticize the act and not the individual. He should motivate concerned
individual to correct his behaviour.

Once you have decided what training is necessary and where it is needed, the next
decision is who should be trained? For a small business, this question is crucial.
Training an employee is expensive, especially when he or she leaves your firm for a
better job. Therefore, it is important to carefully select who will be trained.
Training programs should be designed to consider the ability of the employee to
learn the material and to use it effectively, and to make the most efficient use of
resources possible. It is also important that employees be motivated by the training
experience. Employee failure in the program is not only damaging to the employee
but a waste of money as well. Selecting the right trainees is important to the success
of the program.

The goals of the training program should relate directly to the needs outlined
above. Course objectives should clearly state what behavior or skill will be changed
as a result of the training and should relate to the mission and strategic plan of the
company. Goals should include milestones to help take the employee from where he
or she is today to where the firm wants him or her in the future. Setting goals helps to
evaluate the training program and also to motivate employees. Allowing employees to
participate in setting goals increases the probability of success.


As a result of research in the field of training, a number of programmes are
available. Some of these are new methods, while others are improvements over the
traditional methods. The training programmes commonly used to train operative and
supervisory personnel are discussed below. These programmes are classified into on-
the-job and off-the-job training programmes.
This type of training, also known as job instruction training, is the most commonly
used method. Under this method, the individual is placed on a regular job and taught
the skills necessary to perform that job. The trainee learns under the supervision and
guidance of a qualified worker or instructor. On-the-job training has the advantage of
giving first hand knowledge and experience under the actual working conditions. The
problem of transfer of trainee is also minimized as the persons learns on-the-job. On-
the-job training methods include job rotation, coaching, job instruction or training
through step-by-step and committee assignments.
This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his
supervisor or trainer in each of the different job assignments. Though this
method of training is common in training managers for general management
positions, trainees can also be rotated from job to job in workshop job. This
method gives an opportunity to the trainee to understand the problems of
employees on other jobs and respect them.
The trainee is placed under a particular supervisor who functions as a coach in
training the individual. The supervisor provides feedback to the trainee on his
performance and offer him for suggestions for improvement. Often the trainee
share some of the duties an responsibilities of the coach and relieves him of
his burden. A limitation of this method of training is that the trainee may not
have the freedom or opportunity to express his own ideas.
This method is also known as training through step by step. Under this
method, the trainer explains to the trainee the way of doing the job, job
knowledge and skills and allow him to do the job. The trainer appraises the
performance of the trainee, provides feedback information and corrects the
Under the committee assignments, a group of trainees are given and asked to
solve an actual organizational problem. The trainees solve the problem jointly.
It develops team work.
Under this method of training, the trainee is separated form the job situation and
his attention is focused upon learning the material related to his future job
performance. Since the trainee is not distracted by job requirements, he can place his
entire concentration on learning the job rather than spending his time in performing it.
There is an opportunity for freedom of expression for the trainees. Off-the-job
training methods are as follows:
In this method, actual work conditions are simulated in a class room. Material,
files and equipments those are used in actual job performance are also used in
training. This type of training is commonly used for training personnel for
clerical and semi-skilled jobs. The duration of this training ranges from days
to a few weeks. Theory can be related to practice in this method.
It is defined as a method of human interaction that involves realistic behaviour
in imaginary situations. This method of training involves action, doing and
practice. The participants play the role of certain characters, such as the
production manager, mechanical engineer, superintendents, maintenance
engineers, quality control inspectors, foreman, workers and the like. This
method is mostly used for developing interpersonal interactions and relations.
The lecture is a traditional and direct method of instruction. The instructor
organizes the material and gives it to a group of trainees in the form of a talk.
To be effective, the lecture must motivate and create interest among the
trainees. An advantage of lecture method is that it is direct and can be used for
a large group of trainees. Thus, costs and time involved are reduced.
It is a method in training the clerical, professional and supervisory personnel.
This method involves a group of people who pose ideas, examine and share
facts, ideas and data, test assumptions, and draw conclusions, all of which
contribute to the improvement of the job performance. Discussion has the
distinct advantage over the lecture method, in that the discussion involves two-
way communication and hence feedback is provided. The participants feel free
to speak in small groups. The success of this method depends on the
leadership qualities of the person who leads the group.


Training is advantageous not only to the organization but also to the employees.
Training helps the employees in acquiring new knowledge and job skills. In
this way, training increases their market value and wage earning power. This
increases their pay and status.
Continued training can help an employee to develop his ability to learn-
adapting himself to new work methods, learning to use new kinds of
equipment and adjusting to major changes in job contents and work
Training also qualifies the employees for promotion to more responsible jobs.
Training is a follow up of selection procedure. It helps in choosing the most
appropriate individuals for different jobs. Training can be used in spotting out
promising men and in removing defects in selection process.
Training brings about an improvement of the quality and quantity of output by
increasing the skill of the employees. Training makes the fresh and old
employees more skilled and accurate in performance of their work.


If the employees are given proper training the need for supervision is lessened.
Training does not eliminate the need for supervision but it reduces the need for
detailed and constant supervision. A well trained employee is self-reliant in his
work because he knows what to do and how to do it.


The process of training evaluation has been defined as “any attempt to obtain
information on the effects of training performance, and to assess the value of training
in the light of that information.” Evaluation leads to controlling and correcting the
training programme. Hamblin suggested five levels at which evaluation of training
can take place, viz., reactions, learning, job behaviour, organization and ultimate
Training programme is evaluated on the basis of trainee’s reactions to the
usefulness of coverage of the matter, depth of the course content, method of
presentation, teaching methods etc.
Training programme, trainer’s ability and trainee ability are evaluated on the
basis of quantity of content learned and time in which it is learned and the
learner’s ability to use or apply, the content he learned.
This evaluation includes the manner and extent to which the trainee has applied
his learning to his job.
This evaluation measures the use of training, learning and change in the job
behaviour of the department/organization in the form of increased productivity,
quality, morale, sales turnover and the like.
It is the measurement of ultimate result of the contributions of the training
programme to the company goals like survival, growth, profitability etc., and to
the individual goals like development of personality and social goals like
maximizing social benefit.


It is not possible to suggest a training programme equally good for each and every
organisation. Training programmes differ on the basis of many individual
characteristics of the organisations and the employees usually in the organisation of
training programmes. The following steps are taken to organise the training
Training programme should be set up only after having decided the decided the
clear-cut objective in mind. A training programme should be established only
when it is felt that it would assist in the solution of specific operational problems.
The most important step is to make a thorough analysis of the entire organisation,
its operations and manpower resources available in order to find out “the trouble
spots” where training may be needed.
If the men are less capable to perform the particular jobs they can be
given training to increase their skills. Jobs and worth of the men should
be analysed through job analysis and performance appraisal.
Production problems like low productivity, poor quality, high cost,
high rate of absenteeism, labour turnover etc. should be identified to
indicate the need for training.
Opinions should be obtained from the management and the working
people through interviews or through questionnaire regarding
necessary and desirable training programmes.


Following are the steps taken in this regard:
Under this step it is to be decided who is to be trained. who is to be
trained – the new comer or the older employee or the supervisory staff
or all of them selected from different departments. The proper
selection of trainees is very important to obtain permanent and gainful
results of training. A trainee should be trained for the kind of job he
likes and is suitable to perform. Careful screening of candidates for
training raises the effectiveness of the training work. Trainee should be
given the proper background information before he starts learning new
job skills and knowledge. Trainer should explain the trainee the
importance of the job, its relationship with the work flow and the
importance of training.
Now it is advisable to lay down which method is to be adopted fro the
training. Different methods of training may be suggested for the
different levels of personnel. Unskilled workers may be trained on the
job. On-the-job and apprenticeship training may be awarded, to skilled
and semi-skilled workers. For supervisory and executive personnel On-
the-job and Off-the-job methods such as role-playing, lectures and
seminars etc. may be recommended.
The success of the training programme much depends upon the
instructor. Instructor must be well-qualified and may be obtained from
within or outside the organization. It should be decided beforehand
what is to be taught and how. He should be able to divide the job into
logical parts so that he may teach one part at a time without losing his
perspective of the whole.
As because training must be based upon the needs of the organization
therefore, the trainer must have a clear-cut picture of the objectives of
training in mind. It should not be in a vacuum. Trainer needs
professional expertise in order to fulfill his responsibility. He should
also encourage the question from the trainees.
There should always be the training material with the instructor.
Training materials may include some text or written materials as a
basis for instruction, review and reference. This may be prepared in the
training section with the help of supervisors. The written material
should be distributed among the trainees so that they may come
prepared in the lecture class and may be able to understand the
operation quickly and remove their doubts, if any.
The length of training period depends upon the skill of the trainees,
purpose of the training, trainee’s learning capacity and the training
media used. Generally no single session should last longer than two
hours. The time of training whether before or after or during working
hours should be decided by the personnel manager taking in view the
loss of production and benefits to be achieved by training.
This step consists:
i. The putting the learner at case so that he does not feel nervous because
of the fact that he is on a new job,
ii. In stating the importance of ingredients of the job and its relationship
towards flow,
iii. In explaining he is being taught,
iv. In creating interest and encouraging questions, finding out what the
learner already knows about his job or other jobs,
v. In explaining why of the whole job and relating it to some job the
worker already knows,
vi. In planning the learner as close to his normal working position as
possible, and
vii. In familiarizing him with the equipment, materials tools and trade
This is the most important step in a training programme. The trainer should
clearly tell, show, illustrate and question I order to put over the new
knowledge and operations. The learner should be told of the sequence of the
entire job and why each step in its performance is necessary instructions
should be given clearly, completely and patiently. Trainer should demonstrate
or make use of audio-visual aids and should ask the trainee to repeat the
Under this, the trainee is asked to go through the job several times slowly,
explaining him each step. Mistakes are corrected and if necessary some
complicated steps are taken for the trainee for the first time. Then the trainee is
asked to do the job, gradually building up skill and speed. The trainee is then
tested and the effectiveness of a training programme evaluated.
On the completion of training programme trainees should be placed to the job.
The supervisor should have a constant vigil on the person still facing any
difficulty on the job, he must be given full guidance by the immediate
supervisor and should be initiated to ask questions to remove the doubts.

The phrase ‘Collective bargaining’ is coined by Sydney & Beatrice Webb.
According to them collective bargaining is a method by which trade unions
protect & improve the conditions of their members’ working lives.
Before the Industrial Revolution, the employer, more or less, enjoyed
unquestioned powers on matters relating to wage, working conditions & other
matters affecting employees. The week bargaining strength of employees
tempted them, on occasions, to exploit the vulnerable situation to their
advantage. Workers as a result became restless & widespread protests
followed. Governmental intervention was of little help. Workers realized the
importance of fighting jointly on all work-related matters. This collective
fighting spirit is behind the back of collective bargaining. With the growth of
union movement all over the globe & the emergence of employers’
associations, the collective bargaining process has undergone significant
changes. Both parties have, more or less, realized the importance of peaceful
co-existence for their mutual benefit & continued progress.

The main objectives of Collective bargaining are given below:
 To settle disputes / conflicts relating to wages & working conditions.
 To protect the interests of workers through collective plan.
 To resolve the differences between workers & management though
voluntary negotiations & arrive at a customer.
 To avoid third party intervention in matters relating to employment.
Functions of Collective Bargaining

Collective bargaining plays an important role in preventing industrial disputes,

setting these disputes & maintaining industrial peace by performing the
following functions:
 Increase the economic strength of employees & management.
 Establish uniform conditions of employment.
 Secure a prompt & fair redressal of grievances.
 Lay down fair rates of wages & other norms of working conditions.
 Achieve an efficient functioning of the organization.
 Promote the stability & prosperity of the company.
 It provides a method of the regulation of the conditions of
employment of those who are directly concerned about them.
 It provides a solution to the problem of sickness in the industry &
ensures old age pension benefits & other fringe benefits.
 It builds up a system of industrial jurisprudence by introducing civil
rights I the industry. In other words, it ensures that the management is
conducted by rules rather than by arbitrary decisions.

There are two stages in collective bargaining, viz., (i) the negotiation stage &
(ii) the stage of contract administration.
1. Negotiation
(a) Identification of Problems
The nature of the problem influences the whole process-whether the problem is
very important that is to be discussed immediately or it can be postponed for
some other convenient time, whether the problem is minor that it can be solved
with the other party’s acceptance on its presentation & does not need to involve
the long process of collective bargaining process etc.
(b) Preparing for Negotiations
When it becomes necessary to solve the problem through collective bargaining
process, both the parties prepare themselves for negotiations.
(c) Negotiations of Agreement
Usually there will be a chief negotiator who is form the management side. He
directs & presides over the process. The chief negotiator presents the problem,
its intensity & nature & the views of both parties. When a solution is reached
at, it is put on the paper, taking concerned legislations into consideration. Both
parties concerned sign the agreement which, in tern, become a binding contract
for both the parties.
2. Contract Administration
Implementation of the contract is as important as making a contract.
Management usually distributes the printed contract, its terms & conditions
throughout the organization. The union takes steps to see that all the workers
understand the contract & implement it. From time to time depending upon
changing circumstances, both the parties can make mutually acceptable

 Unions should be made strong by creating awareness among

 Interference of political leaders should be avoided. The unions
should separate themselves from politics.
 Govt. should make efforts for the growth of collective
bargaining. Adjudication should be used only as a last resort. Govt. can
make legislation for compulsory collective bargaining before resorting to
 Management should develop a positive attitude toward unions.
Much headway has already been made in this direction. Presently, managers
are mostly aware of the rights of workers. They are also realizing how
important cooperation between management & workers for the effective
functioning of an organization. As such, they are now encouraging
negotiations & amicable solutions.

All the issues refer to collective bargaining may not be settled to the
satisfactions of both the parties. Such issues result in Industrial Conflicts.


According to the Industrial Disputes Act, 1947, Section 2(k), “Industrial
dispute means any dispute or difference between employers & employers, or
between employers & workmen or between workmen & workmen, which is
connected with the employment or non employment or term of employment or
with the conditions of labour of any person.”
It is not easy to identify a single factor as a cause of industrial conflicts as
multifarious causes blended together result in industrial disputes. Deep seated
& more basic causes of disputes can be identified through in depth probe,
though surface manifestations appear to be responsible for conflicts. The
relative importance of these causes, when more than presents, is often very
difficult to gauge.
According to Mukherjee, “The development of capitalistic enterprise, which
means the control of the tools of production by the small entrepreneur class has
brought to the fore the acute problem of friction between management & labour
throughout the world.”
Causes of industrial conflicts may be grouped into four categories,
⇒ Industrial factors,
⇒ Management’s attitude towards workers,
⇒ Government machinery &
⇒ Other causes.

A strike is a spontaneous and concerted withdrawal of the labour from
production temporarily. It is a collective stoppage of work by group of workers
for pressuring their employer to accept certain demands. The industrial disputes
act 1947 has define a strike as “an assertion of work by a body of persons.”
employed in an industry acting in combination, or a concerted refusal or a
refusal under a common understanding of any no of persons who are or have
been so employed to continue to work or to accept employment. Strikes are of
several types,
 Sympathetic strike
When a strike is undertaken to show sympathy with workers in other industries,
it is called as sympathetic strike.
 General strike
It is a strike by all or most of the unions in a industry or a region
 Unofficial strike
It is a strike undertaken without the consent of the unions.
 Sectional strike
It is refusal of a section of a given class of workers to perform their normal
 Bumper strike
It is a strike when the unions plan to paralyse the industry, firm by firm, the
order being chosen by the union. Such strikes are supported by the
contributions of those who are still in work.
 Sit down strike (also called stay-in, tool down, pen down strike)
It is a strike in which workers cease to perform this duties but do not leave the
place of work.
 Slow-down strike
Known as a ‘go-slow’ tactic the workers do not stop working but put brakes to
the normal way of doing things.
 Lightning strike
Out of provocation, workers may go on strike without notice or at very short
notice. There is an element of surprise in such cat-call strikes.
 Hunger strike
To gain sympathy from the public & get noticed by the employer, workers may
decide to forego food for a specified period. Small batches of workers may also
go on a relay hunger strike in a sequential order. Such non-violence protests
generally bring moral pressure on employers to iron out the differences with
Lock-out is the counterpart of strike. It is a weapon available to the employer to
close down the factory till the workers agree to resume work on the conditions
lead down by the employer. The industrial Dispute Act of 1947 defined it as
“the closing of a place of an employment, or the suspension of work or the
refusal of an employer to continue to employ any number of persons employed
by him”. If it is impossible to meet the demand of workers, employers may
decide to go for lock-out. He may also draw the shutter down so as to bring
psychological pressure on the workers to agree to his condition or face closure
of the unit.
Gherao means to surround. In this method a group of workers initiate collective
action aimed at preventing members of the management from leaving the
office. This can happen outside the factory premises too. The persons who are
‘gheraoed’ are not allowed to move for a long time, sometimes without food or
water. The National Commission on Labour, while refusing to accept it as a
form of industrial protest, opined that gheraos tend to inflict physical duress (as
against economic pressure) on the persons affected & endanger not only
industrial harmony but also create problems of law & order.

Picketing & Boycott

In picketing workers carry / display signs, banners & play card (in connection
with the dispute) & prevent others from entering the place of work & persuade
others to join the strike.
Boycott aims at disrupting the normal functioning of an enterprise. Through
forceful appeals & negative behavioral acts, striking workers prevent others
from entering the place of work & persuade them not to cooperate with the

Prevention of industrial disputes may have different methods. These methods

“cover the entire field of relations between industry & labour & include
enactment & enforcement of progressive legislation, works committees &
councils, wage boards, & trade boards, profit sharing & co-partnership,
education, housing, welfare work & all such measures which can bridge the
gap between the employers & the employed.” The significant preventive
measures may be broadly outlined as below:

Prevention Measures of Industrial Conflicts

Labour Standing Grievances Joint

Welfare Orders Procedure Consultation

Strong Joint Collective Labour Co-partnership

Trade Consultations Bargaining & Profit Sharing

Labour welfare Officer

Sec. 49 (1) & (2) of the factories act, 1948, specifies that every factory wherein
500 or more workers are ordinarily employed, at least 1 officer must be
appointed, where the number of workers are in excess of 2,500, the assistance
& or additional welfare officers are required to be appointed to assist the
welfare officer.

Standing orders
Majority of the industrial disputes are related to conditions of employment. To
prevent the industrial conflict relating to employment conditions, standing
orders are formulated. It was made obligatory that standing orders should
govern the conditions of employment under the industrial employment
(standing orders) act of 1946. The standing orders regulate the conditions of
employment from the stage of entry to the stage of exit or retirement. Standing
orders act as a code of conduct for the employees during the working life of
employees as they provide do’s & do nots.
Grievance procedure
Grievances generally arise from day – to – day working relations. Grievances
of the employees are redressed by the management. Management can prevent
the occurrence of industrial disputes by solving the individual problems.
Collective bargaining
As discussed earlier, collective bargaining helps for settlement of issues &
prevention of industrial disputes. Government also helps trade unions & govt.
to come closer to each other & come to an agreement.
Strong trade unions
Strong trade unions have the stability of membership, sound financial position
& healthy polices. Such unions think & act constructively for the mutual
benefit of the employees & the management. These practices naturally prevent
the industrial conflicts.
Labour co – partnership & profit sharing
Labour co – partnership & profit sharing create a sense of belongness among
the employees & they fill that they are the partners in the company. As such,
they think & act for the benefit of the company.
Joint consultations
A Joint consultation between the employees & employer are the differences
between them & prevents industrial conflicts.


The methods of the settlement of conflicts generally include those mentions in

the below
1. Investigation
This is conducted by a board or court appointed by the government. It may be
voluntary or compulsory. If the investigation is conducted on an application by
either or both the parties to the dispute, it is voluntary. If the Government
appoints a Court of Inquiry to investigate into a dispute without the consent of
the parties, it is compulsory. Investigations do not aim at bringing about the
settlement of disputes directly, but by analyzing the facts, they aim at bringing
about an amicable solution. When the investigation is compulsory, the strikes
& lock-outs are required to be stopped & employers should not make any
change in the conditions of employment. The result of investigation has no
serious effect on the dispute because the general public is least bothered to
make note of the dispute.
2. Meditation
Another attempt to settle disputes is Meditation. In this method, an outsider
assists the parties in their negotiation. It takes place with the consent of both
the parties. The mediator performs the messenger’s job for both the parties &
he neither imposes his will nor his judgment upon them. The main aim of
meditation is the settlement of disputes by brining about a voluntary agreement.
There may be three kinds of meditation:
a. The Eminent Outsider;
b. Non-Government Board; &
c. Semi-Government Board.
If meditation is conducted skillful & sympathetically along proper lines, it can
bring about the adjustment of differences that might otherwise contribute to
stoppage of work.

3. Conciliation
The main objective of a condition & arbitration is to reunite the two conflicting
groups in the industry in order to avoid interruption of production, distrust etc.
Conciliation is a process by which representatives of both workers &
employers are brought together before a third party with a view to persuading
them to arrive at some sort of settlement. It is an extension of collective
bargaining with third party assistance. It is the practice by which the services of
the neutral third party as used in a dispute as a means of helping the disputing
parties to reduce the extent of their differences & to arrive at an amicable
settlement or agreed solution. It is a process of rational & orderly discussions
of differences between the parties to a dispute under the guidance of a
Conciliation machinery consists of a conciliation officer & board of
conciliations. The conciliator induces the parties to a course of action. He plays
the role of an innovator, protector, discussion leader, stimulator, advisor, face
saver. He acts as a safety value & a communication link.
The task of conciliation is to offer advice & make suggestions to the dispute on
controversial issues.
4. Voluntary Arbitration
If the two parties to the dispute fail to come to an agreement, either by
themselves or with the help of a mediator or conciliator, who agrees to submit
the dispute to an impartial authority, whose decision, they are ready to accept.
The essential elements in voluntary arbitration are:
 The voluntary submission of dispute to an arbitration;
 The subsequent attendance of witness & investigations &
 The enforcement of an award may not be necessary.
5. Compulsory Arbitration / Adjudication
Where trade unions are week, the method of Compulsory Arbitration is used.
Compulsory Arbitration is utilized generally when the parties fail to arrive at a
settlement though the voluntary methods.
In India, Compulsory Arbitration is enforced because collective bargaining was
not used for regulating wages & other conditions of employment.
It may be said that Compulsory Arbitration may be at times & under certain
circumstances, necessary & desirable. The nature, scale & timing of state
intervention should be suited to the needs of different occasions. The objective
of state intervention in the field of industrial relations should be to do social
justice & make the weaker party equally strong to enable it ultimately to stand
& survive on its own & settle its differences through negations & collective
Compulsory Arbitration is one where the parties are required to arbitrate
without any willingness on their part. Any one of the parties may apply to the
appropriate governments to refer the dispute to adjudication machinery.

When there are vacancies in an organization, they can be filled up by the internal or
external candidates. Though the organization prefers to fill up the vacancies by the
external candidates through the selection procedure, the internal candidates may also
apply for post and may be tested and selected for higher level job in the organizational
hierarchy at par with external candidates. Is such upward movement of an employee a
promotion? Or it is purely selection? It is purely a selection. If the organization
prefers to fill a vacancy only by the internal candidates, it assigns that higher level job
to the selected employee from within through promotion tests. Such upward
movement can be said as promotion.

► Definition:-
“Promotion is advancement of an employee to a better job- better in terms of
grater responsibility, more prestige or status, greater skills and especially increased
rate of pay or salary.”
- Paul Pigors and Charles A. Myers.

“The upward reassignment of an individual in an organizational hierarchy,

accompanied by increased responsibilities, enhanced status and usually with increased
income though not always so.”
- Arun Monappa and Mirza S. Saiyadain.

Promotion is the reassignment of a higher level job to an internal employee with

delegation of responsibilities and authority required to perform that higher job and
normally with higher pay. Thus, the main conditions of promotion are:-
1) Reassignment of higher level job to an employee than what he is presently
2) The employee will naturally be delegated with greater responsibility and authority
than what he has had earlier.
3) Promotion normally accompanies higher pay.
Promotion may be temporary or permanent depending upon the organizational needs
and employee performance.
► Purpose of promotion:-
Organizations promote the employee with a view to achieve the following purposes:-
1) To utilize the employee’s skills, knowledge at the appropriate level in the
organizational hierarchy resulting in organizational effectiveness and employee
2) To develop competent spirit and inculcate the zeal in the employees to acquired
the skills, knowledge etc. required by higher level jobs.
3) To develop competent internal source of employees ready to take up jobs at higher
level in the changing environment.
4) To promote employee’s self development and make them await their turn of
promotions. It reduces labour turnover.
5) To promote a feeling of content with the existing conditions of the company and a
sense of belongingness.
6) To promote interest in training, development programmers and in team
development areas.
7) To build loyalty and to boost morale.
8) To reward committed and loyal employees.
9) To get rid of the problems created by the leader of workers’ unions by promoting
them to the officer’ levels where they are less effective in creating problems.

Merit as a basis of promotion:-

Merit is taken to denote an individual employee’s skills, knowledge, ability,
efficiency and aptitude as measured from educational, training and past employment
record. The merits of merit system of promotion are:
1) The resources of higher order of an employee can be better utilized at a higher
level. It result in maximum utilization of human resources in an organization
2) Competent employees are motivated to exert all their resources and contribute
them to the organizational efficiency and effectiveness
3) It works as golden hand-cuffs regarding employee turnover,
4) Further it continuously encourages the employees to acquire new skill, knowledge
etc. for all-round development.
Despite these advantages the merit systems suffer from some demerit. They are:
1) Measurement or judging of merit is highly difficult.
2) Many people, particularly trade union leaders, distrust the management’s integrity
in judging merit.
3) The techniques of merit measurement are subjective.
4) Merit denotes mostly the past achievement, efficiency but not the future success.
Hence, the purpose of promotion may not be served if merit is taken as sole
criteria for promotion.

Senior as a basis of promotion

Seniority refers to relative length of service in the same job and in the same
organization. The logic behind considering the seniority as a basis of promotion is that
there is a positive correlation between the length of service in the same job and the
amount of knowledge and the level of skill acquired by an employee in an
organization. This system is also based on the custom that the first in should be given
first chance in all benefit and privileges.

► Advantages of seniority as a basis of promotion are:

1) It is relatively easy to measure the length of service and judge the seniority.
2) There would be full support of the trade unions to this system.
3) Every party trust the management’s action as there is no scope for favoritism and
discrimination and judgment.
4) It gives a sense of certainty of getting promotion to every employee and of their
turn of promotion.
5) Senior employees will have a sense of satisfaction to this system as the older
employees are respected and their inefficiency cannot be pointed out.
6) It minimizes the scope for grievances and conflicts regarding promotion.
7) This system seems to reserve the purpose in the sense that employees may learn
more with increase in the length of service.
► In spite of these merits, this system also suffers from certain limitations. They

1) The assumption that the employees learn more relatively with length of service is
not valid as this assumption has reverse effect. In other words employees learn up
to a certain age and beyond that stage the learning ability of the cognitive process
2) It denominates the young and more competent employees and results in employee
turnover particularly among the dynamic force.
3) It kills the zeal and interest to develop as everybody will be promoted with or
without improvement.
4) Organizational effectiveness may be diminishes through the deceleration of the
human resource effectiveness as the human resource consists of mostly
undynamic and old blood.
5) Judging the seniority though it seems to be in the theoretical sense. it is highly
difficult in practice as the problems like job seniority, company seniority,
zonal/regional seniority, service in different organizations, experience as
apprentice trainee, trainee, researcher, length of service not only by days but hours
and minutes will crop up.

Thus the two main basic of promotion enjoy certain advantages and at the same time
suffer from certain limitations. Hence, a combination of both of them may be
regarded as an effective basis of promotion.

Management mostly prefers merit as the basis of promotion as they are interested in
enriching its human resources. But trade union favour seniority as the sole basis for
promotion with a view to satisfy the interests of majority of their members.
Hence a combination of both seniority and merit can be considered as the basis for
promotion satisfying the management for organizational effectiveness and employees
and trade union for respecting the length of service. A balance between seniority and
merit should be struck and a new basis is to be developed. There are several ways in
striking the balance between these two basis.viz:-
1) Minimum length of service and merit:-
Under this method all those employees who complete the minimum service, say five
years, are made eligible for promotion and then merit is taken as the sole criteria for
selecting the employee for promotion from the eligible candidates. Most of the
commercial bank in India has been following this method for promoting the
employees from clerk’s position to officer’s position.

2) Measurements of seniority and merit through a common factor.

3) Minimum merit and seniority:-

In contrast to the earlier methods, minimum score of merit which is necessary for the
acceptable performance on the future job is determined and all the candidates who
secure minimum score are declared as eligible candidates. Candidates are selected for
promotion based on their seniority only from the eligible candidates.

► Benefit of promotion:-
1) Promotion places the employees in a position where an employee’s skills and
knowledge can be better utilized.
2) It creates and increases the interest of the other employees in the company as they
believe that they will also get their turn.
3) It creates among employees a feeling of content with the existing conditions of
work and employment.
4) It increases interest in acquiring higher qualifications, in training and in self
development with a view to meet the requirement of promotion
5) Promotion improves employee morale and job satisfaction.
6) Ultimately it improves organizational health.

► Problems with promotion:-

Though promotions benefit the employee and the organization, it creates certain
problems. They are disappointment of the candidates, refusal of promotions etc.

Promotion disappointment some employees:-

Some employees who are not promoted will be disappointed when their colleagues
with similar qualifications and experience are promoted either due to favoritisms or
due to lack of systematic promotion policy. Employee may develop negative attitude
and reduce their contributions to the organization and prevent organizational and
individual advancement.

Some employee refuse promotion:-

There is a general tendency that employee accept promotion. But their are several
incidents where employees refuse promotions. These include promotion together with
transfer to an upward place, promotion that level where the employee feels that he
will be quite incompetent to carry out the job, delegation of unwanted responsibilities,
and when trade union leader feel that promotion causes damage to their position in
trade union.
The other problems associated with the promotion are: some superiors will not
relieve their subordinates who are promoted because of their indispensability in the
present job and inequality in promotional in different departments, regions and
categories of jobs.
Promotion problems can be minimized though a career counseling by the
superiors and by formulating a systematic promotion policy.
► Promotion policy
Every organizational has to specify clearly its policy regarding promotion based on its
corporate policy. The characteristics of a systematic promotion policy are:
1) It should be considered the sense that policy should be applied uniformly to all
employees irrespective of the background of the persons,
2) It should be fair and impartial. In other words it should not give room for
nepotism, favoritism etc.,
3) Systematic line of promotion channel should be incorporated
4) It should provide equal opportunities fro promotion in all categories of jobs,
departments, and regions of an organization
5) It should insure open policy in the sense that every eligible employee should be
considered for promotion rather than a closed system which consider only a class
of employees
6) It should contain clear cut norms and criteria for judging merit, length or service,
potentiality etc.
7) Appropriate authority should be entrusted with the task of making final decision
8) Favoritism should not be taken as a basis for promotion
9) It should contain promotional counseling, encouragement, guidance and follow-up
regarding promotional opportunity, job requirement and acquiring the required
skills, knowledge etc. it should also contain reinforcing the future chances in the
mind of rejected candidates and a provision for challenging the managements
decision and action by employee or union within the limits of promotion policy.
► Types of Promotion

As already noted, a promotion involves an increase in status, responsibilities and pay. But, in
certain cases, only the pay increases, and the other elements remain stagnant. In other cases,
the status only increases without a corresponding increase in pay or responsibilities. Depending
on which elements increase and which remain stagnant, promotions may be classified into the
following types:

1) Horizontal Promotion:-

This type of promotion involves an increase in responsibilities and pay, and a change in
designation. But the employee concerned does not transgress the job classification. For example,
a lower division clerk is promoted as an upper division clerk. This type of promotion is referred to
as upgrading' the position of an employee.

2) Vertical Promotion:-

This type of promotion results in greater responsibility, prestige and pay, together with a
change in the nature of the job. A promotion is vertical when a canteen employee is promoted
to an unskilled job. The concerned employee naturally transgresses the job classification.

3) Dry Promotions:-

Dry promotions are sometimes given in lieu of increases in remuneration. Designations are
different but no change in responsibilities. The promotee may be given one or two annual

► Meaning:-
Transfer is defined as “ a lateral shift causing movement of individuals from one
position to another usually without involving any marked change in duties,
responsibility, skills needed or compensation”

Transfer is also defines as “the moving of an employee from one job to another. It
may involve a promotion, demotion or no change in job status other than moving
from one job to another.”

However transfer is viewed as change in assignment in which the employee moves

from one job to another in the same level of hierarchy requiring similar skill involving
approximately same level of responsibility, same status and same level of pay. Thus
promotion is upward reassignment of job; demotion is a downward job reassignment
whereas transfer is a latter or horizontal job reassignment.

► Purposes of transfer:-
The transfer in an organization may be due to any one of the following reasons:

(1) Variation in the volume of work: Transfers are necessary due to variation in the
volume of work in .different departments/sections. Shortage of employees or increase
in the work in one department due to different reasons leads to transfer of employees
from other departments to that department. Workers are transferred from surplus
department to another department where there is shortage of staff.

(2) Providing training to employees: Transfers are made for providing opportunities to
employees for training and development.

(3) Rectification of poor placement: Transfers are necessary for the rectification of poor
placement made in the initial period. Similarly, transfers are necessary in order to utilize
the services of an employee in the best possible manner.
(4) Satisfying personal needs of employees: Transfers are necessary in order to satisfy the
personal needs (personal difficulties) of the employees. They include family
problems, sickness, and education of children and so on. Such transfers take place
especially among female employees. Female employees want transfer to join their
husbands. This leads to transfers. Workers demand transfers when the climate of the
place of work is not suitable to them. Here, transfers are basically for the convenience
of employees.

(5) Meeting mutual needs of employees: Transfers are, sometimes, made in order to
meet the mutual needs of two employees. It is a type of mutual exchange and is usually
accepted by the management.

(6) Meeting organizational needs: Transfers are necessary in order to meet the
organizational needs developed out of expansion programmers or fluctuations in work
requirements or changes in the organizational structure or dropping of
existing product lines. For example, senior and experienced workers and
supervisors are transferred to new plants/factories in order to manage the work

(7) Solution to poor performance: Transfers are, sometimes, made when the worker
fails to perform his job efficiently. He is transferred to a new place or post and is given
an opportunity to improve his performance at a new place. Here, transfer is treated as a
better alternative to outright dismissal.

(8) Avoiding fatigue and monotony: Transfers are made for avoiding fatigue and
monotony of work in the case of employees. The productivity of an employee may decline
due to monotony of his or her job. To break this monotony, the employee is transferred.

(9) Giving punishment for negligence: Transfers are sometimes made as a punishment for
negligence and indiscipline on the part of an employee.
(10) Rectification of poor personal relations: The relations between the worker and his
superior may not be smooth and cordial. This may affect the work of the department.
One method to solve this problem is to transfer the worker from that department to
some other suitable department. This transfer may be necessary for removal of the
incompatibilities between the worker and his/her boss or between one worker and the

(11) Providing convenience to employees: Transfers are made to help employees to

work according to their convenience. Such transfers are also called shift transfers.

(12) To provide relief and to punish employees: Transfers may be made in order to
give relief to the employees who are overburdened or are working under heavy risks
or tension over a long period. Similarly, on certain occasions transfers are made for
indulging in undesirable activities. They may be made as a disciplinary action for
serious mistakes on the part of employees. This practice is widespread mainly in
government offices and police department. Problem employees are transferred to some
other jobs or to remote places.

► Types of Transfers

Broadly speaking, transfers may be classified into three types:

1. Those designed to enhance training and development.
2. Those making possible adjustment to varying volumes of work within the firm.
3. Those designed to remedy the problem of poor placement.

Specifically, transfers may be production, replacement, versatility, shift and remedial.

1) Production Transfers:-

As mentioned earlier, a shortage or surplus of the labour force is common in different

departments in a plant or several plants in an organization. Surplus employees in a department
have to be laid off, unless they are transferred to another department. Transfers affected to
avoid such imminent lay-offs are called production transfers.

2) Replacement Transfers:-
Replacement transfers, too, are intended to avoid imminent lay-offs, particularly, of senior
employees. A junior employee may be replaced by a senior employee to avoid laying off the
latter. A replacement transfer programmed is used when all the operations are declining, and
is designed to retain long-service employees as long as possible.

3) Versatility Transfers:-

Versatility transfers are effected to make employees versatile and competent hi more than
one skill. Clerical employees in banks, for example, are transferred from one section to
another over a period of time so that they may acquire the necessary skills to attend to the
various activities, at the bank. Versatile operations are valuable assets during rush periods
and periods when work is dull. Versatile transfers may be used as a preparation for
production or replacement transfers

4) Shift Transfers:-

Generally speaking, industrial establishments operate more than one shift. Transfers
between shifts are common, such transfers being made mostly on a rotation basis. Transfers
may also be affected on special requests from employees. Some request a transfer to the
second shift or the night shift in order to avail the free time during the day to take up part time
jobs, although this is not permitted by law.

5) Remedial Transfers:-

Remedial transfers are affected at the request of employees and are, therefore, called
personal transfers. Remedial transfers take place because the initial placement of an
employee may have been faulty or the worker may not get along with his or her supervisor
or with other workers in the department. He or she may be getting too old to continue in his or
her regular job, or the type of job or working conditions may not be well-adapted to his or her
present health or accident record. If the job is repetitive, the worker may stagnate and would
benefit by transfer to a different kind of work.

► Reasons for transfer:

Transfers are of basically of three categories, viz, employee initiated transfer, and
company initiated transfer and public initiated transfers.

1) Employee initiated transfer:-

These transfers are also known as personal transfers. These transfers are primarily in
the interest of the employee and according to his convenience and desire. Further, this
transfer can be classified into temporary and permanent transfers.
a) Temporary transfers: -
The reasons for employee initiated temporary transfers are:
1) Due to ill health or involvement of employee in accidents,
2) Due to family problem like taking care of old parents,
3) Due to other adhoc problem like pursuing higher education,
b) Permanent transfers:-
There are several reasons for employee initiated permanent transfers. Employee
prefers transfers:
1) Due to chronic ill health or permanent disablement caused by accident,
2) Due to family problems like taking care of domestic affairs in his native place,
3) With a view to correct his wrong placement. Employee may not be interested with
the work or working condition or environment of his present job and hence may
require a transfer,
4) In order to relive him from the monotony or boredom caused due to doing the same
job for year together,
5) To avoid conflict with his superior. If most of the employees working under the
same superior request for a transfer, the situation should be corrected by other means
like developing that superior in interpersonal skills etc. rather than transferring the
6) With a view to search for challenging and creative job,
7) With a view to search for job with opportunities for advancement to a higher level
job, opportunities for advancement to a higher level job, opportunities for financial
gains etc.

2) Company initiated transfer:-

Transfer is also at the initiative of the company. They can be classified into temporary
and permanent.
a) Temporary transfers: reasons for the company initiated temporary transfers are:
1) Due to temporary absenteeism of employees,
2) Due to fluctuation in quality of production and thereby in work load,
3) Due to short vacations.
b) Permanent transfer: - reasons for the company initiated permanent transfer are:
1) Changes in the quality of production, lines of activity, technology, organizational
structure as discussed earlier,
2) To improve the versatity of employees,
3) To improve the employee job satisfaction,
4) To minimize bribe order-processing corruption.

3) Public initiated transfers:-

Public also initiate the transfers generally through the politicians/ government for the
following reasons:
1) If an employee’s behavior in the society is against the social norms order-
processing if he indulges in any social evils.
2) If the function of an employee is against the public interest.
The majour drawback of public initiated transfer is the politicalisation of the issue.
Some employees may be transferred frequently because of political victimization and
company initiated transfer of some employees may be stopped due to political
favoritism. This drawback is more severe in government departments and public
sector unit.

Benefit of transfer:
Transfers benefit both the employees and the organization. Transfer reduce
employee’s monotony, boredom etc. and increase employees job satisfaction. Further
they improves employee’s skills, knowledge etc. they correct erroneous placement
and interpersonal conflicts. Thus, they improve employee’s morale. Further they
prepare the employee to meet the organizational exigencies and meet the fluctuation
in business and organizational requirements. Thus, they enhance human resource
contribution to organizational effectiveness.

Problems of transfer:
Despite these benefit some problems are associated with transfers. They are:
1) Adjustment problem to the employee to the new job, place, environment, superior
and colleageoues,
2) Transfer from one place to another cause which inconvenience and cost to the
employees and his family members relating to housing, education to children etc.
3) transfer from one place to another result in loss of Mondays,
4) Company initiated transfer result in reduction in employee contribution
5) Discriminatory transfer affects employees’ morale, job satisfaction, commitment
and contribution.

However, these problems can be minimized through formulating a systematic transfer

Transfer policy: organization should specify their policy regarding transfers.
Otherwise superiors may transfer their subordinates arbitrarily if they do not like
them. It causes frustration among employees. Similarly, subordinates may also
request fro transfer even for the petty issues. Most of the people may ask for transfer
to risk less and easy job and places. As such organization may find it difficult to
manage the transfer policy. Systematic transfer policy should contain the following
1) Specification of circumstances under which an employee will be transferred in the
case of company initiated transfer.
2) Specification of superior who is authorized and responsible to initiate a transfer
3) Jobs from and to which transfers will be made based on the job specification,
description and classification etc.
4) The region order-processing unit of the organization within which transfer will be
5) Reasons which will be considered for personal transfers their order of priority etc.
6) Reasons for mutual transfer of employees.
7) Norms to decide priority when two order-processing more employees request for
transfer like priority of reasons, seniority.
8) Specification of basis for transfer like job analysis. Merit, length of service.
9) Specification of pay, Allowances, benefit etc. that are to be allowed to the
employee in the new job.
10) Other facility to be extended to the transferee like special leave during the period
of transfer. Special allowance for packaging luggage, transportation etc.
Generally, line managers administer the transfers and personnel managers assist the
line managers in this respect.

The remaining type of internal mobility is demotion. It is the opposite of promotion.
Demotion is the reassignment of a lower level job to an employee with delegation of
responsibility and authority required to perform that lower level job and normally
with lower level pay. Organizations use demotion less frequently as it affects
employee career prospects and morale.

► Need for demotions:

Demotions are necessary for following reasons:
1) Unsuitability of the employee to higher level jobs:
Employees are promoted based on the seniority and past performance. But, some of
the employees promoted on those bases may not meet the job requirements of the
higher level job. In most cases employees are promoted to the level of the
incompetence. Some employees selected for higher level jobs may prove to be
incompetent I doing that job. Such employees may be demoted to the lower level jobs
where their skill, knowledge and aptitude suit to the job requirements.

2) Adverse business conditions:

Generally adverse business conditions force the organization to reduce quality of
production, withdrawal of some lines of products, closure of certain department order-
processing plants. In addition, organizations resort to economy drives. Consequently
organizations minimize the number of employees. Junior employees will be
retrenched and senior employees will be demoted under such conditions.

3) New technology and new methods of operation demand new and higher level
skills. If the existing employees do not develop themselves to meet those new
requirements, organizations demote them to the lower level jobs where they are
suitable. For example, teacher handling 10TH class were demoted to the level of 8TH
class teachers when the syllabus were revised and the teachers were found misfit even
after training in one school in Andhra Pradesh.

4) Employees are demoted on disciplinary grounds. This is one of the extreme steps
and as such organizations rarely use this measure.
Though the demotion seems to be simple it adversely affects the employee morale.
Job satisfaction etc. as it reduces employee status not only in the organization but also
in the society in addition to reduction in responsibility authority and pay. Hence, there
should be a systematic demotion policy.

► Demotion policy:
Organization should clearly specify the demotion policy. Otherwise the superiors
demote the employees according to their whims and fancies. Systematic demotion
policy should contain following items:
1) Specification of circumstances under which an employee will be demoted, like
reduction in operations, indisciplinary cases.
2) Specification of a superior who is authorized and responsible to initiated a
3) Jobs from and to which, demotions will be made and specification of lines order-
processing ladders of demotion.
4) Specification of basis for demotion like length of service, merit order-processing
5) It should provide for open policy rather than a closed policy.
6) It should contain clear cut norms for judging merit and length of service.
7) Specification of nature of demotion i.e., whether it is permanent order-processing
temporary if it as a disciplinary action it should also specify the guidelines for
determining the seniority of such demoted employee.


Meaning of Participative Management

The concept of participative management is closely related with the concept of
industrial democracy. Employee’s participation in management means associating
workers with the decision-making process. It is a type of mental & emotional
involvement of workers in industrial management. In industrial democracy, the
opinion & suggestions of workers are taken into account while framing policies
particularly those, which are directly connected with them or affect them directly.
The concept of participative management developed in Western countries & has
proved to be successful. As a result, it acquired world-wide recognition & popularity.
Participation in an emotional involvement of employees in the working of their
company. It is a process of giving & sharing views, ideas & information in between
the employer & employees through certain channels / mechanism.

Features of Participative Management

1. Higher status to employees: In participative management, employees are
given higher status with power of participate in the decision-making &
running of their business enterprise.
2. Provides psychological satisfaction to employees: Participation is an
emotional involvement of employees in the working of their company. As a
result, some management decisions are as per the expectations of employees.
This gives psychological satisfaction to employees. They feel that they are
given better status & treatment & not treated merely as wage earners.
3. Special attention to view of employees: The views of employees are given
special attention in regard to following matters:
• Social Matters: Hours of work, work rules, welfare facilities, safety,
sanitation, health, etc.
• Personnel: Recruitment, promotions & transfers, settlement of
grievances, work distribution, holidays, etc.
• Economic: Automation, lay-offs, production schedule, production
methods, etc.
4. Universally recognized concept: It is introduced in different countries in
different forms.
5. Participation is indirect: Employees participation in the management is
indirect i.e. through the representatives of employees. E.g.
Works comities, etc.
6. Brings employees & management closure: It facilitates meaningful
communication between management & employees, which ensures cordial
industrial relations.
7. Beneficial to both parties: The participative management will be beneficial
to both parties only when company’s management is professional or
8. Revolutionary concept: It is a powerful tool, which can make industrial
democracy a reality.
9. Concept has limitations: Employees will not be allowed to participate in
financial & other decisions of the management. It is restricted to those aspects
of management where employees are directly involved.

Objectives or Purposes of Participative Management:

⇒ To create uniform approach of employer & workers.

⇒ To establish cordial industrial relation.
⇒ To raise industrial productivity.
⇒ To workers in confidence.
⇒ To introduce industrial democracy.

Needs of Participative Management:

1) Giving higher status & psychological satisfaction to workers: Employees

are important & that their views are being taken into account while taking
decisions on the matters relating to them. Such participation satisfies the urge
of self-expressions. Even for maturity & personality development of workers.
2) Cordial labour-management relations: The participation of the workers in
management can act as an effective means for preventing industrial disputes.
So there needs to establish cordial labour-management relations through
mutual understanding.
3) Creating uniform approach of employer & workers: This avoids possible
4) Raising industrial production: As workers generally take interest in their
work when they are given due importance, respect & opportunity of self-
5) Creating platform for direct negotiations: It is needed in order to create a
platform for direct negotiations & collective decisions.
6) Creating responsible approach among workers: To make workers more
responsible, disciplined & constructive in their approach in relation to the
activities of the company.
7) Encouraging communication between employer & workers: It enables
management to understand the workers point of view at the time of decision-
making. It removes suspicion among workers.
8) Raising employee’s morale: For raising the morale of employees & in order
to use their knowledge, skills & talents for the benefit of the company.
9) Introducing industrial democracy: Workers participation acts as a means for
achieving the dream of industrial democracy. They are consulted as equal
partners in the production process. This leads to industrial democracy, which
is one useful supplement of political democracy.

Methods of participative management

Participative management is possible by creating suitable agencies, forums or

platforms through which effective communication between workers and management
will be possible and joint decision will be arrived at the methods of Participative
management are different alternative. Employees and workers can select any one of
the method popular and also purposeful. This is the nature as the method selected is
not important but the result oriented Participative is important. The method used is
means while effective participation is the end.

1. Works committees:
The industrial disputes act 1947 provided for the setting up of a work committees
consisting of representative of management and employees in every undertaking
employee 100 or more employees. The committees are for the removing the causes of
friction between employers and the workers in the day to day working in factory
level. This joint consultative committee meets frequently for discussion on common
problem before workers and the company. After discussion, joint decisions are taken
and such decisions are binding on both the parties. Matters like wage payment, bonus,
training, discipline, welfare facility, working conditions etc. are discussed in such

Workers committees are extremely popular and effective in France and England. In
India, there is statutory provision for the establishment of worker committees under
the industrial disputes act, 1947. Such committees are constituted in large number of
industrial unit. Meeting of such committees are also arranged. However, they are
neither effective nor popular in India. As a result, participative management through
this mechanism is not effective or purposeful in India. Many managers feel that such
committees have only a nuisance value. In addition to works committee, many other
committees are formed. However, they are not effective as agencies of participative

2. Joint management councils (JMCs):

These council are similar to works committees with equal representation to employer
and employees. Workers express their views, problems such as welfare facility;
discipline, training, removal of workers, common grievances, holidays,
rationalization, expansion programmes, etc. are discussed in the meetings of JMCs.
Such joint consultative committees exist in UK and Sweden. In India, participative
management is mainly through joint management councils.

JMCs are in addition to works committees which are statutory in nature.

Unfortunately, the JMCs are not operation effectively in India due to limited interest
and initiative in their functioning by managements and workers. They are not used for
exchange of information, views, suggestions, etc. but for quarrels and heated
exchanges between the representatives of management and workers. Absence of
cordial industrial relations in spite of JMCs indicates their overall failure. JMCs are
mostly consultative bodies and this type of workers participation is of loose type. The
suggestions put forward by representatives are not binding on the management. Such
councils serve no useful purpose. They only provide platform for discussions.

3. Co-partnership ( Participation through ownership) :

In co-partnership, workers are converted into shareholders of the company (by
offering equity shares to them) and are allowed to participate in the management like
other shareholders. The company may give financial assistance to workers to purchase
equity shares. They can elect their representatives on the Board of Directors. Workers
are also allowed to attend meetings of the company and participate in the discussions.
Voting rights are also given to employees.

In this method, employees participate in the management as co-owners i.e.

shareholders. This gives them an opportunity to participate in the decision making and
policy framing of their company at the highest level. Co-partnership is also a method
for introducing industrial democracy. Here, workers are given higher status. They
work in two different capacities as workers and as co-owners.

In India, the experiment of co-partnership is not popular. Workers show limited

interest in purchasing shares of their company as and when offered. Very few workers
purchase the shares and join the company as members. Naturally, the participation of
workers in the management is weak and ineffective.

Many companies in India offer their shares to employees but the response of the
employees is not encouraging. This suggests that co-partnership as a method of
participative management is not effective / popular in India.

4. Employee Directors:
Here, two or three representatives of workers are taken on the Board of Directors of
the company. The employee directors / workers directors are elected by workers and
they express the views of workers in the meetings of the Board. Here, employee
directors act as connecting link between workers and top level management. Such
participation ensures cordial industrial relations. The representative of workers can
put the views of workers before the directors and can also safeguard the interests of
workers. As a result, the personnel policies will be fair and favourable to workers.
Unfavourable decisions to workers will be avoided and better treatment will be
ensured to them.

This mechanism of workers participation is now used extensively in the public sector
undertaking in India as per the initiative taken by the government. Workers directors
are now appointed in companies like Hindustan Antibiotics Ltd., and HMT Ltd. This
scheme also exists in the case of nationalized banks, co-operative banks. DCM, Tatas
and some more companies from the private sector.

This method of participative management has many limitations. Representation on the

Board does not substantially enhance the participation of workers in the management
of the company. In addition, the worker director may not be able to play a
constructive role due to limited knowledge and experience. The worker director may
enjoy the status on par with other directors but will feel inferior to others due to his
shortcomings. His contribution may not be satisfactory for the workers and also for
the management. Finally, Workers representatives on the Board are minority. They
may not be able to protect the interests of workers as decisions are taken on the basis
of majority vote.

5. Suggestion Programme / Scheme:

Under suggestion programme, workers are asked to give their suggestion to the
management on various administrative and other matters such as machine utilization,
waste management, energy conservation and safety measures. Their suggestions are
considered by a joint committee representing workers, heads of departments and
technical experts. The suggestions which are suitable are accepted. Such suggestions
are for improvement in the existing organizational setup. Suitable suggestions relating
to production activities, cost control, quality improvement, working conditions, etc.
are promptly accepted and executed. In addition, rewards are also given to those who
make constructive suggestions. For collecting suggestions, suggestion boxes are kept
in all departments.

Suggestion scheme of participative management encourages workers to think

(individually or collectively) and participate in raising the efficiency of the
organization. In India, Tatas, DCM and other industrial groups have introduced
suggestion scheme. On May occasions, workers directly connected with work give
creative and practical suggestions which are useful to the management in different
ways. They may raise productivity or reduce the cost of production. Suggestion
scheme will give good results if workers are encouraged to think and make concrete
suggestions. This idea of participative management is now put into operation through
quality circles which are popular in Japan and now function in may Indian

6. Workers co-partnership / Auto Management:

In this extreme form of labour participation, workers take over the industrial unit and
manage it completely on co operative basis. Naturally, the entire management is by
the workers themselves. This method is called “Auto-management”. One example in
India under this category is that of Kamani Tubes Limited. This leading unit was
closed down in 1985 due to sickness. Workers suffered heavy loss. Now, workers
have contributed to its capital and have become its owners. The Kamani Employees’
Union took initiative in starting this unit with the co-operation of financial institution
form 6th April, 1989. The Supreme Court also allowed the workers to run the unit.
This is the first example of participative management in the manufacturing sector in
India. It is one significant constructive development in the field of trade unionism in
India. The Government of Maharashtra has taken a decision to hand over sick
industrial units to workers for regular functioning on co-operative basis.

7. Quality Circle:
Quality circle consist of a small number of employees who comes together on
voluntary basis with one item on the agenda i.e. to improve quality or to raise
productivity or to avoid wastages, etc. this form of participation is voluntary. As a
practice, meetings are held once in the week lasting for about as hour. Member of
quality circle is given free hand to solve problem related to the quality, if they fail
they can request to management to depute an expert to sort out the problem. This
circle highly proved to be highly successful because the problem is solved by member
themselves through two way communication and brainstorming seriously and studies
them effectively and promptly. The suggestion should be implemented, if found

8. Collective Bargaining:
Collective bargaining is the process in which the representative of the employer and
employer and employees meet together to negotiate a contract government both the
parties. It results into signing an agreement thereby restricting each party that it
cannot take unilateral decision harming the interest of the other party. This sort of
joint meeting can bring fruits proved barraging is done in the right spirit with positive
attitude. Participation brings both the parties together and improves the understanding
thus making the way for the two way dialogue to sort out the problems.
Collective bargaining is a better alternative to strike and industrial disputes. It is
peaceful and democratic method for solving the problem and demands for workers
through direct negotiation between the representative of workers and management. A
strong trade union can protect the interest of worker can more effectively through
direct negotiation and consultation rather than through disputes and strike which are
normally harmful to workers, employer and society at large.

9. Empowered Team:
When the authority is delegated to the employees its called empowering. In this sense,
employment takes place when employees enjoy power and they experience a sense of
ownership and control over the jobs. Employees when empowered, understanding that
the job belong to them. As they are competent to speak on the job, they feel
responsible. This happens to motivate them and they go out of the way to work.
Employees become quality conscious and contribute to quality improvement in
product and services. Information is shared at every level leading to improved

10. Job enlargement and job evaluation:

Job enlargement is the process of increasing the scope of the job by adding more tasks
to it. As tasks are related, employees to get the opportunity to make grater use of their
mental and physical skills.

Job enrichment is designing a job in such a way that it provide the employee grater
autonomy for planning and control his own performance. Job enrichment makes the
jobs more interesting and challenging.

The main objective of job enrichment and job enlargement is to force the worker from
boredom which occurs because of excessive specialization. Both the job enrichment
and job enlargement are considering method of participative management as they
provide freedom to each employee to use his judgment. This freedom is course
limited and restricted.
The basis purpose of above noted scheme of participative management is to associate
the worker with the decision-making process. Difference methods are use in the
different countries as per the situation available. The method used for workers
participation is not impotent. Workers participation in management may be voluntary
or statutory. Voluntary participation is always better and more effective. Statutory
labour participation is not effective as it is mechanical and also imposed on both the
parties by force.


1. Strong trade unions:

Existing of strong trade with creative and enlightened leadership is necessary for
participative management. Workers and their union must have genuine desire and
interest in such participation. They also need information, proper training and ability
to participate in the discussions in an effective manner. Workers participation will be
ineffective if these pre-request are absent. Politicisation and multiplicity of trade
union defeat the very purpose of participative management

2. Favourable attitude of management:

The attitude of the management should be progressive and democratic. He must be
mentally willing to associate with his workers on equal level and discus the problem
freely and frankly with them. The conservative and autocratic outlook of management
will defeat participative management in practice. Management have to accept due
importance of employees and their status as their partners and not merely as wage
earners. Management should not feel that its position it’s threatened by such

3. Mutual trust and confidence:

Existence of atmosphere of mutual trust and confidence is the sine quo non of
participative management. Fair participation is not possible when the mutual
confidence is absent. Both parties are agree to stay together in an atmosphere of
understanding. This facilitates participative management in practice.

4. Genuine urge for co-operation:

Genuine desire on the part of employer and worker to discuss, understand the views
and come to certain acceptable decision is necessary for success of participative
management. This must be supplemented by desire to genuine desire to share
authority and responsibility in mutually agreed to sphere. The outlook of employer
and worker must change and become favourable for mutual trust and understanding.

5. Peaceful atmosphere:
Labour management relation should be a cardinal or at least there should be a no
tension in the relation. Active participation of workers in management is possible
under such peaceful atmosphere. It is just not possible when there are disputes and
strike in the industrial unit.

6. Clear understanding of objective:

Employers and workers must understand clear the objective of such participation. The
objective must be clearly define and complementary in characters. Employer should
not take such participation as an imposed liability and worker should not use it merely
for expressing there grievances and demands. Participation should be for achieve the
objective which are accepted by both the parties and also beneficial for both the

7. Meaningful sharing of information:

Worker representative should have adequate technical, financial and managerial
knowledge and information. This will make labour participation effectively. For this,
a suitable training needs to be given to the workers representatives. Management
should also provide all relevant information to employees for their consideration.
There must be a free flow of information and communication between management
and worker. This avoids suspicion and distrust and ensures purposeful participative

8. Participation of supervisory staff:

Supervisory staff should be given a place on the join management council. Similarly,
subject earmarked for collective bargaining must be kept outside for the joint
consultation. Participative management will be effective if the entire labour force
covered by such participation. In addition, the representative of the worker must be
drawn from themselves. The participation of trade union leaders should be discourage
as the approach of such leaders may not be positive or fair. Real representative of
workers can put forward the views of all workers with confidence.

9. Education and training of workers:

Workers education and training should be make significant contribution to meaningful
participative management. Trade union and government should provide such
education and training to the workers. This will make the concept of participative
management among popular among the workers and will ensure its success.

10. Voluntary character desirable:

Participative management should not be made compulsory but should be kept
voluntary in character. It should not be government sponsored. It will not work
fruitfully if it is imposed on the both the parties. Thus voluntary condition character is
one pre-condition for the success of participative management. The need of such
participation must be felt by both the parties and they should introduce the scheme of
participation on voluntary basis.
Importance of participative management:

The importance of participative management is universally accepted and efforts are

being made for introducing such participation through suitable agencies and
methods. Participative management has wider socio-economic importance as it given
various advantages to workers, employers and society at large. Such participation
gives higher status to workers and enable them to think and express their view on the
working of their company. Industrial peace and cordial industrial relation are also
established through participative management. In addition, workers’ participation
brings industrial democracy in reality. Participative management is important it
satisfies the psychological needs of self expression of workers. Even the process of
decision making is made democratic through the workers participation. It bring
human element in industrial management.

Participative management introduces a new set of volume for the workers and
employers in which power is to be replaced by persuasion and compulsion by co-
operation. Employee participation is useful for raising industrial production and
productivity. It helps consumer in an indirect manner. The national economy also gets
certain benefits when industrial peace and harmony exits over a long period. In brief,
the concept of participative management is important because of economics, social
and human values connected with it.

The ILO has given morale support to employee’s participation and has advocated its
adoption in all countries. Efforts are being made in all countries in this regards. In the
countries of west, this experiment is reasonable successful while in developing
countries including India, the progress is not satisfactory even when consultative
machinery exists in many countries.