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Bangladesh. 4 . Thailand.58 billion (US$ 79 billion) at March 31. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. Russia and Canada. China. 3. United Arab Emirates. The Bank has a network of about 950 branches and 3. venture capital and asset management.300 ATMs in India and presence in 17 countries.446. Malaysia and Indonesia. 31. life and nonlife insurance. South Africa. Sri Lanka and Dubai International Finance Centre and representative offices in the United States.ABOUT ICICI: ICICI Bank is India's second-largest bank with total assets of Rs. The Bank currently has subsidiaries in the United Kingdom. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation*. Our UK subsidiary has established a branch in Belgium. 2007 and profit after tax of Rs. branches in Singapore. Hong Kong.10 billion for fiscal 2007. Bahrain.

ICICI was formed in 1955 at the initiative of the World Bank. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI transformed its business from a development financial institution offering only project finance to a 5 . ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. In the 1990s.ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE) History ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. and was its wholly-owned subsidiary. an Indian financial institution. the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.

The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. both directly and through a number of subsidiaries and affiliates like ICICI Bank. and the move towards universal banking. higher market share in various business segments. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. entry into new business segments. 6 .diversified financial services group offering a wide variety of products and services. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. and would create the optimal legal structure for the ICICI group's universal banking strategy. seamless access to ICICI's strong corporate relationships built up over five decades. In 1999. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services.

ICICI Personal Financial Services Limited and ICICI Capital Services Limited. and access to the vast talent pool of ICICI and its subsidiaries. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. 7 . both wholesale and retail. have been integrated in a single entity. the ICICI group's financing and banking operations.particularly fee-based services. by the High Court of Gujarat at Ahmedabad in March 2002. In October 2001. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. Consequent to the merger.

2004 NRE Savings A/c NRO Savings A/c NRE Fixed Deposit NRO Fixed Deposit NRE Recurring Deposit FCNR Fixed Deposit RFC Savings A/c RFC Fixed Deposit Home Loans Donate2India Singapore Offshore Branch Bill Payment Shopping Ticket Booking Prepaid Mobile Recharge Smart Money Order Card-2-Card FT Funds Transfer Share Trading Charity I C I C I B a n k i n N e w s Investors Relations Customer Care Queries Feedback Privacy Online Security Terms and Conditions Disclaimer USA Patriot Act Certification Life Cycle Planning What's New Service Charges Account Opening E instruction / Speak to transfer Digitally signed statement Status of request Loans against Securities Farm Equipment Loans Construction Equipment Loan Office Equipment Loan Medical Equipment Loan Pre Approved Loans Life Insurance General Insurance Bahrain Offshore Branch Bank Account Credit Card Demat Loans To Subscribe Charges 8 .Savings A/c Special Savings Account Senior Citizen Services Fixed Deposit Easy FD Recurring Deposit Private Banking Roaming Current A/c Young Stars Bank@campus Salary A/c Womens A/c EEFC A/c RFC A/c Privilege Banking No frills A/c Outward Remittance Credit Cards Debit cum ATM Cards Travel Card Home Loans Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loan ICICI Bank Bonds GOI Bonds Mutual Funds IPO Pure Gold Foreign Ex Services Senior Citizens Savings Scheme.

K. Vaidyanathan ----Executive Director 9 . Anupam Puri Mr. N. Madhabi Puri-Buch ----Executive Director Mr. Nachiket Mor ----Deputy Managing Director Ms. Kamath.V. Mittal Mr. M.S. V. Vinod Rai Mr. Chanda Kochhar ----Deputy Managing Director Dr. Vijayan Mr. Lakshmi N. V. Prem Watsa Mr. Sridar Iyengar Mr. Chairman Mr. Marti G.K. Vaghul.M. ---. Narendra Murkumbi Mr. Sharma Mr.Board Members Mr.Managing Director and CEO Ms. Subrahmanyam Mr. T. P. Sinha Prof.

INTRODUCTION INTRODUCTION MEANING and DEFINITION OF HRM DEFINITION HRM is concerned with the people dimension in management. Since every organization is made of people. motivating them to higher to higher levels of performance and ensuring that they continue to maintain their commitment to the 10 . acquiring their services. developing their skills.

FUNCTION AND SCOPE OF HRM OBJECTIVES The primary objective of HRM is to ensure availability of a competent 11 . The principles are applied to developing. 2 Decisions made by HRM must influence the effectiveness of organization. business. This is true type of organization. OBJECTIVES. or social action. select and develop members for an organization. maintaining and remunerating employees in organizations. 1 HRM involves the application of management function and principle.organization are essential to achieving organizational objectives. Obviously. Effectiveness of an organization must result in betterment of services to customers in the form of high quality products supplied at reasonable costs. HRM is concerned with the dimension of people’s in organization.government. health. MEANING OF HRM Human Resource Management is a management function that helps manager to recruit. train. recreation. acquisition.

and willing work force to an organization.

Societal Objectives To be ethical and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. Organizational Objectives To recognize the role of HRM in bringing about organizational effectiveness. HRM is department which exsists to serve the rest of organization. Functional Objectives To maintain the department’s contribution at a level appropriate to the organization’s needs. Resources are wasted when HRM is either more or less sophistical to suit the organization’s demands. The department’s level of services must be tailored to fit the organization it serves.

In order to realize the objectives stated above, HRM must perform certain functions. These functions have been outlining the scope of HRM. Generally, it may be stated there is a correlation between the objectives and

the functions. In other words, some functions help realize specific objectives. For example, the organizational objective is sought to be met by discharging such functions such as HR planning, recruitment and selection, training and development and performance appraisal. Similarly, the personal objective is sought to be realized through such functions as remuneration, assessment and the like.

The scope of HRM is indeed vast. All major activities in working life of an employee that is from the time he or she, joins the organization till they leave it. This all comes under the purview of HRM. Specifically, the activities included are- HR Planning, Job Analysis and Recruitment and Selection, and Orientation and Placement, Training and Development, Performance Appraisal and Job Evaluation, Employee and Executive Remuneration, Motivation and Communication, Welfare, Safety and Health, Industrial Relation and the like. HRM is categorized under 1. Introduction to HRM


2. Employee Hiring
3. Employee and Executive Remuneration

4. Employee Motivation 5. Employee Maintenance
6. Industrial Relation and

7. Prospects of HRM


But it isn’t true. What we know is that motivation is the result of the interaction of the individual and the situation. 15 . In practice inexperienced managers often label people who lack motivation as lazy. Individuals differ in their motivational drive.MOTIVATION WHAT IS MOTIVATION? People consider it to be a personal trait – that is some have it some don’t.

who are working for their companies .“Employee motivation has been gaining ground and taken its due place in management theories and practices as we are progressing from industrial era to an era of knowledge based services. differentiating between average and great organizations. even eclipsing monetary capital in the process. Corporation are being nurtured and strengthened by quality of their manpower and motivation is pivotal in that. but the same student may be able to read 150 pages of Harry Potter just in one day.” For example: A student may find reading a 2o pages note book very tiring. who will be in instrumental in writing the future of nations and will be responsible for their economic achievement. Personnel hold the key to success and it is level of motivation and employees’ endeavor which is going to be the decisive factor. It is people. Thus we can say that the level of motivation varies both between individuals and within individuals at different times. For the student the change in motivation is driven by the situation. DEFINITION: 16 . employees are the most important factor. In this transition phase and the time to come.

but we narrow our focus on organizational goals. However. If this statement is meant to imply that all people are inherently lazy.Motivation is defined as the processes that account for an individual’s intensity. Finally. This is the element most of us focus on when we talk about motivation. Motivated individuals stay with a task long enough to achieve their goal. Effort that is directed towards and consistent with the organizations goals is the kind of effort that we should be seeking. we have to consider the quality of efforts as well as its intensity. “People are inherently lazy”. 17 . direction. All people are not inherently lazy. General motivation is considered with efforts towards any goal. high-intensity is unlikely to lead to favorable job performance outcomes unless the effort is channeled in a direction that benefits the organization. This is a measure of how long a person can maintain their effort. and ‘laziness’ is more a function of the situation than an inherent individual character. Therefore. This isn’t true. motivation has a persistence dimension. Key elements are: Intensity which is considered with how hard a person tries. and persistence of effort towards attaining a goal.

maintaining an award-winning garden. and suffer from over exertion. Three specific theories were formulated during this period. which although heavily attacked and now questionable in terms of validity. These are the 18 . Managers frequently draw the conclusion that people are lazy from watching some of their employees. EARLY THEORIES OF MOTIVATION The 1950s were a fruitful period in the development of motivation concepts. overworked. for employers. perfecting bowling skills.the evidence strongly indicates the contrary. Unfortunately. are probably still the best-known explanations for employee motivation. a good portion of the labour force is anything but lazy. People’s need structures differ. So the same employee who shirks responsibility on the job may work obsessively on the conditioning and antique car. who may be lazy at work. But these same employees are often quite industrious in one or more activities off the job. many people today suffer from the opposite affliction-they are overly busy. works often ranks low in its ability to satisfy individual needs. Whether externally motivated or internally driven.

shelter. and other bodily needs 2.Includes security and protection from physical and emotional harm 3. Self-actualization: . 5. Esteem: . acceptance and friendship 4.The drive to become what one is capable of becoming.Includes internal esteem factors such as self-respect. 19 . sex. Social: . These needs are: 1. recognition. belongingness. Hierarchy of Needs Theory It’s probably safe to say that the most well-known theory of motivation is Abraham Maslow’s hierarchy of needs.Includes hunger. Theories X and Y. and external esteem factors such as status. and the two-factor theory.hierarchy of needs theory. autonomy and achievement. and attention.Includes affection. Safety: . and practicing managers still regularly use these theories and their terminology in explaining employee motivation. thirst. These theories represent a foundation from which contemporary theories have grown. He hypothesized that within every human being there exists a hierarchy of five needs. Physiological: .

and self-fulfillment SelfActualization Esteem Social Safety Physiological As each of these needs becomes substantially satisfied. In terms of the figure.includes growth. achieving one’s potential. So if you want to motivate someone. the individual moves up the steps of the hierarchy. a substantially satisfied need no longer motivates. the next need becomes dominant. according to Maslow’s. you need to understand what level of the hierarchy that person is currently on and focus on satisfying the needs at or above that level. the theory would say that although no need is fully gratified. 20 . From the standpoint of motivation.

Maslow separated the five needs into higher and lower orders. particularly among practicing managers. After viewing the way the managers dealt with employees. whereas lower-order needs are predominantly satisfied externally (by things such as pay. labeled Theory X. labeled Theory Y. Maslow’s need theory has received wide recognition. McGregor 21 . This can be attributed to the theory’s intuitive logic and ease of understanding. and the other basically positive. and tenure). however. esteem. and selfactualization as higher-order needs. Physiological and safety needs were described as lower-order and social. The differentiation between the two orders was made on the premise that higher-order needs are satisfied internally (within the person). Theory X and Theory Y Douglas McGregor proposed two distinct views of human beings: one basically negative. Maslow provided no empirical substantiation. research does not generally validate the theory. Unfortunately. and several studies that sought to validate the theory found no support for it. union contracts.

controlled or threatened with punishment to achieve goals. they must be coerced. In contrast to these negative views about the nature of human beings. Employees will avoid responsibilities and seek formal direction whenever possible. 3. Since employees dislike work. McGregor listed the four positive assumptions that he called Theory Y: 1. whenever possible. will attempt to avoid it.concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and that he/she tends to mold his/her behavior toward employees according to these assumptions. 2. People will exercise self-direction and self-control if they are committed to 22 . Employees can view work as being as natural as rest or play. Under Theory X. 4. Most workers place security above all other factors associated with work and will display little ambition. 2. Employees inherently dislike work and. the four assumptions held by managers are: 1.

Theory X assumes the lower-order needs dominate individuals. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions. 4. Hertzberg investigated the question. and good group relations as approaches that would maximize an employee’s job motivation. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. he proposed ideas such as participative decision-making. Two-Factor Theory The two-factor theory (sometimes also called as motivation-hygiene theory) was proposed by psychologist Frederick Hertzberg. even seek. The average person can learn to accept. In the belief that an individual’s relation to work is basic and that one’s attitude toward work can very well determine success or failure. 23 . responsibility. Therefore. responsible and challenging jobs. Theory Y assumes that higher-order needs assume dominate individuals. What are the motivational implications if you accept McGregor’s analysis? The answer is best expressed in the framework presented by Maslow. 3.the objectives.

company policies. managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation. conditions surrounding the job such as quality of supervision. situations in which they felt extremely good or bad about their jobs. in detail.“What do people from their jobs?” He asked people to describe. As a result. the label ERG theory. According to Hertzberg. Relatedness. Therefore. His revised need hierarchy is labeled ERG theory. These responses were then tabulated and categorized. Alderfer argues that there are three groups of core needs-Existence. They will be placating their workforce rather than motivating them. 24 . physical working conditions. relations with others. and job security were characterized by Hertzberg as hygiene factors. the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. MODERN THEORIES OF MOTIVATION ERG theory Clayton Alderfer has reworked Maslow’s need hierarchy to align it more closely with the empirical research. and growth—hence. pay.

ERG theory also contains a frustration-regression dimension. the individual’s desire to increase a lower-level need takes place. McClelland’s Theory of needs 25 .The existence group is concerned with providing our basic material existence requirements. Alderfer isolates growth needs—an intrinsic component from Maslow’s esteem category and the characteristics included under self-actualization. The second group of needs are those of relatedness—the desire we have for maintaining important interpersonal relationships. the desire to satisfy a lower-level need increases. Finally. ERG theory counters by noting that when a higher-order need level is frustrated. In contrast to hierarchy of needs theory. These social and status desires require interaction with others if they are to be satisfied. and they align with Maslow’s social need and the external component of Maslow’s esteem classification. the ERG theory demonstrates that (1) More than one need may be operative at same time. They include the items that Maslow considered to be physiological and safety needs. and (2) If the gratification of a higher-level need is stifled.

They are defined as follows: Need for achievement: The drive to excel. Need for power: The need to make others behave in a way that they would not have behaved otherwise. From research into the achievement need. to achieve in relation to a set of standards. This drive is the achievement need.McClelland’s theory of needs was developed by David McClelland and his associates. to strive to succeed. Goal-Setting theory Gene Broadwater coach of the Hamilton high school cross-country team 26 . McClelland found that high achievers differentiate themselves from others by their desire to do things better. Some people drive to succeed. and affiliation. They are striving for personal achievements rather than rewards of success as per work done. power. Need for affiliation: The desire for friendly and close interpersonal relationships. The theory focuses on three needs: achievements. They have a desire to do something better or more efficiently than it has been done before.

” The research on goal setting theory addresses these issues. and feedback have no performance. No one can ever ask more of you than that. get out there and do your best. More to the point. goal tells an employee what needs to be done and how much effort need to be expended. That is. Now. Goal-setting theory presupposes that an individual is committed to the goal. when the individual has an internal locus of control.gave his squad these last words before they approached the line for the league championship race: “each one of you is physically ready. In late 1960s. The evidence strongly supports the value of goals. and when the goals are self-set rather than assigned. result in higher performance than do easy goals. we can say that specific goals increase performance. and the findings. that difficult goals. when accepted. Edwin Locke proposed that intentions to work toward a goal are a major source of work motivation. are impressive in terms of the effect that goal specificity. is determined not to lower or abandon the goal. as you will see. challenge. Equity Theory 27 . This is most likely to occur when goals are made public. that is. and that feedback leads to higher performance than does no feedback.

It means individuals compare their job inputs and outcome with those of others and then respond to eliminate any inequities. This theory is based on the example of Ms Jane Pearson who graduated from the state university with a degree in accounting and working with 'G5' a public accounting firm with a monthly salary of $4,550. However Jane’s motivational level has dropped dramatically due to the hiring of the fresh college graduate out of the state university who lacks the one year experience which Jane has gained and was paid $4,800 which was more than Jane’s salary. In this case Jane’s situation illustrates the role that equity plays in motivation. Employees make comparisons of their job inputs and outcomes relative to those of others. In other words if we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity is said to be exist. When we see the ratio as unequal we experience equity tension and when over rewarded, the tension creates guilt. The referent that an employee selects adds to the complexity of equity theory. There are 4 referent comparisons that an employee can use:

1. Self-inside. 2. Self-outside.

3. Other-inside. 4. Other-outside.
Which referent an employee chooses will be influenced by the information the employee holds about referents as well as by the attractiveness of the referent. Employees with short tenure in their current organization tend to have little information about others and on the long tenure rely more heavily on coworkers for comparison. Equity theory is also related with the pay of the employees. Thus on these grounds, the theory establishes the following 4 propositions related to in equitable pay: 1. Given payment on time, over rewarded employees will produce more than will equitably paid employees. 2. Given payment by quantity of production, over rewarded employees will produce fewer, but higher-quality, units than equitably paid employees. 3. Given payment on time, under rewarded employees will produce poorer quality of output. 5. Given payment by quality of production, under rewarded employees will produce a large no of low-quality units in comparison with equitably paid employees. These propositions have generally been supported with few minor


Conclusion of equity theory:The equity theory demonstrates that, for most employees, motivation is influenced significantly by relative rewards as well by absolute rewards. But some key issues related to this theory are still unclear.

Expectancy Theory:Currently, one of the most widely accepted explanations of motivation is victor vroom's Expectancy Theory. Although it has its critics, most evidence is supportive of the theory.

Meaning:"The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual". In more practical terms, expectancy theory says that an employee will be motivated to accept a high level of pressure when he or she believes that effort will lead to a good performance appraisal; which will lead to good org rewards such as


the key to expectancy theory is the understanding of an individual's goals and the linkage b/w effort and performance. 31 . As a contingency model. Because of complications like methodological. 2. just because we understand what needs a person seeks to satisfy does not ensure that the individual perceives high performance as necessarily leading to the satisfaction to these needs. Rewards-personal goals relationship. or a promotion. The theory therefore focuses on three relationships:1. In summary. criterion. between the rewards and individual goal satisfaction.bonus. Effort performance relationship. a salary increase. Performance-reward relationship. Thus expectancy theory helps to explain why lot of workers aren't motivated on their job and do only the minimum necessary to get by. expectancy theory recognizes that there is no universal principle for explaining everyone's motivation. finally. between performance and rewards and. and that the rewards will satisfy the employee's personal goals. In addition. 3. and measurement problems. this theory is viewed with caution.

In spite of all the attention focused by the media. Even after adjusting for changing work attitudes and the growth in white-collar jobs. The individual-difference variable that seems to gain the greatest support for explaining who prefers a challenging job and who doesn’t is the strength of an individual’s higher-order needs. But what percentage of rank-and-file workers actually desire higher-order need satisfaction and will respond positively to challenging jobs? No current data are available. Some individuals prefer highly complex and challenging jobs. it seems unlikely that the number today exceeds 40% The strongest voice advocating challenging jobs has not been workers-it’s been professors. but a study from the 1970s estimated the figure at about 15%. because 32 . academics and social scientists on human potential and the needs of individuals. social-science researchers. and journalists. Professor’s researchers and journalists undoubtedly made their career choices. Individuals with high growth needs are more responsive to challenging work. reutilized work. to some degree. other prospers in simple.Myth or Science? Everyone wants a challenging job? This statement is false. there is no evidence to support the vast majority of workers want challenging jobs.

Work rarely consumes more than 30% of this time. even for individuals with strong growth needs. And typical rewards.. accountants. and they’re more difficult to motivate. Many workers meet their higher-order needs off the job. They have strong and a long term commitment to their field of expertise. and challenge. That leaves considerable opportunity. Their loyalty is more towards their profession than to their employer. For 33 . Not every employee is looking for a challenging job.they wanted jobs that gave them their autonomy. That. are rarely effective in encouraging professionals to exert high levels of effort. is their choice. to find higher-order need satisfaction outside the workplace. and software designers are different from nonprofessionals. nurses. of course. Why? Because professionals don’t respond to the same stimuli that non-professionals do. Professional like engineers. identity. Professional employees are different than your average employees. Usually they tend to be well paid already and they enjoy what they do. But for them to project their needs onto the workforce in general is presumptuous. There are 168 hours in every individual’s week. Professional Employees are more difficult to motivate. like money and promotions. lawyers.

They also invest regularly . This loyalty to the profession and less interest in typical organizational rewards makes motivating professionals more challenging and complex. attending terms of reading. Moving into management often means cutting off their ties to their profession. and attending conferences – that allow them to keep current in their field. professionals are not typically anxious to give up their work to take on managerial keep their skills current. Reward them with educational opportunities – training. losing touch with the latest advances in their field and having to let the skills that they’ve spent years developing become obsolete. They’ve have invested a great deal of time and effort in developing their professional skills. taking courses. So how do you motivate professionals? Provide them with ongoing challenges projects. Provide them with lateral moves that allow them to broaden their experiences. In addition 34 . Give them autonomy to follow their interests and allow them to structure their work in ways they find productive. and the like . workshops.instance. They’ve have typically gone to professional schools for years and undergone specialized training to build their proficiencies.

For example. interesting work becomes more of a motivator. research suggests that as employees' income increases. 1987). Of all the functions a manager performs. All you need to do is to utilize their natural ability. This is due. Motivated employees are more productive. The employees who work for your company are naturally motivated. In fact. That's right. in part. No money. managers need to understand what motivates employees within the context of the roles they perform.reward them with recognition. 1994). as employees get older. Why do we need motivated employees? The answer is survival (Smith. Motivated employees are needed in our rapidly changing workplaces. motivating employees is arguably the most complex. to the fact that what motivates employees changes constantly (Bowen & Radhakrishna. To be effective. The second step your organization can take is to develop true 35 . Motivated employees help organizations survive. money can actually decrease an employee's motivation and performance. which you can do without spending a dime. money becomes less of a motivator (Kovach. 1991). without assuming managerial responsibilities. The first step in utilizing your employees' natural abilities is to eliminate your organization's negative practices that zap away their natural motivation. And consider creating alternative career paths that allow them to earn more money and status. Also.

achievement. recognition. failure to communicate. By decreasing negative zapping demotivators and by adding true motivators. insufficient training. endless paperwork. if not outright destroys.they have to motivate themselves. Some common myths about employee motivation Myth Number One: "I can motivate people" Not really -. and for control and power over their work. Many companies treat employees as disposable. infrequent delegation of authority. they have desires for ownership. and a lack of a credible vision contribute to employees' frustration. Excessive levels of required approvals. You can't motivate people anymore than you can empower them.motivators. At the first sign of business difficulty. Management inadvertently makes it difficult for employees to do their jobs. Your employees' natural motivation relies on the fact that all people have human desires for affiliation. employees-who are usually routinely referred to as "our greatest asset"-become expendable. Employees generally receive inadequate recognition and reward: About half of the workers in our surveys report receiving little or no credit. But there are several ways that management unwittingly demotivates employees and diminishes. which can spark all your employees into being motivated. competence. In addition. 36 . their enthusiasm. and meaning in their work. and almost two-thirds say management is much more likely to criticize them for poor performance than praise them for good work. you will tap into your employees' natural motivation.

I may be greatly motivated by earning time away from my job to spend more time my family. The key is knowing how to set up the environment for each of your employees. a nice office and job security can help people from becoming less motivated. but they usually don't help people to become more motivated. A key goal is to understand the motivations of each of your employees. However. Different people are motivated by different things. Myth Number Four: "I know what motivates me. Myth Number Two: "Money is a good motivator" Not really. so I know what motivates my employees" Not really. you can set up an environment where they best motivate and empower themselves. That's why a lot of yelling from the boss won't seem to "light a spark under employees" for a very long time.for a very short time. You might be motivated much more by recognition of a job well done. Certain things like money.Employees have to motivate and empower themselves. 37 . People are not motivated by the same things. Myth Number Three: "Fear is a damn good motivator" Fear is a great motivator -.

If the goals of the organization are not aligned with the goals of employees. If you're enthusiastic about your job. you'll have much clearer perspective on how others are doing 38 . Enthusiasm is contagious.Again. it seems like everyone else does. too. it seems like everyone else is. (More about these steps is provided later on in this's a science" Nah. a key goal is to understand what motivates each of your employees. if you're doing a good job of taking care of yourself and your own job. then employees aren't effectively working toward the mission of the organization.) Basic Principles to be kept in mind…while working on "Employee Motivation" Motivating employees starts with motivating yourself: It's amazing how. If you are very stressed out. too. it's much easier for others to be. too. There are some very basic steps you can take that will go a long way toward supporting your employees to motivate themselves toward increased performance in their jobs. Also. Increased job satisfaction does not necessarily mean increased job performance. if you hate your job. Not true. Myth Number Five: "Increased job satisfaction means increased job performance" Research shows this isn't necessarily true at all. Myth Number Six: "I can't comprehend employee motivation -.

These preferences should be worded in terms of goals for the organization. More about this later on below. employees can be all fired up about their work and be working very hard. a job well done. service. However. etc. recognition. time with family. they should first include finding out what it is that really motivates each of your 39 . Identifying the goals for the organization is usually done during strategic planning. then the organization is not any better off than if the employees were sitting on their hands -. for example. learning. ensure that employees have strong input to identifying their goals and that these goals are aligned with goals of the organization. if the results of their work don't contribute to the goals of the theirs.maybe worse off! Therefore. Whatever steps you take to support the motivation of your employees (various steps are suggested below). So what motivates you? Consider. A great place to start learning about motivation is to start understanding your own motivations. it's critical that managers and supervisors know what they want from their employees. The key to helping to motivate your employees is to understand what motivates them.) Key to supporting the motivation of your employees is understanding what motivates each of them: Different things motivate each person. (Goals should be worded to be "SMARTER". Whatever steps you take to support the motivation of your employees. How is your job configured to support your own motivations? What can you do to better motivate yourself? Always work to align goals of the organization with goals of employees: As mentioned above.

Sullivan.) Recognize that supporting employee motivation is a process. establishing various systems and structures helps ensure clear understanding and equitable treatment of employees. Support employee motivation by using organizational systems (for example.. Also. a professor of management at San Francisco State University. Instead. Indeed. policies and procedures) -. employee performance systems. (More about this later on below. If you look at sustaining employee motivation as an ongoing process. Process of Employee Motivation Personalized Motivation. When managers don't know what motivates an individual. it is an ongoing process to sustain an environment where employees can strongly motivate themselves. establish compensation systems. for example.don't just count on good intentions: Don't just count on cultivating strong interpersonal relationships with employees to help motivate them. not a task: Organizations change all the time. they 40 . As per. You can find this out by asking them. For example. etc. as do people. then you'll be much more fulfilled and motivated yourself. simply put. most managers are terrible at motivating their employees. listening to them and observing them. organizational policies and procedures. during times of stress. The need to identify employees' critical motivators is important because.employees. The nature of these relationships can change greatly. use reliable and comprehensive systems in the workplace to help motivate employees. to support employee motivation.

That someone could. human resources professionals must accept the responsibility of providing managers with a list of what motivates and frustrates a new or recently transferred employee. what are the elements of any job that frustrate you or inhibit your productivity? How would you like to be managed? Help me understand the best approach to get the most productivity out of you. so that I can avoid repeating the same mistakes that your previous managers made. It's not unusual to just not like someone who works for you.mistakenly assume that all workers want the same thing. what are the elements of any job that excite. Admit to yourself (and to an appropriate someone else) if you don't like an employee Managers and supervisors are people. If we expect managers to successfully motivate their individual employees. This will help a lot in motivating your employees towards the desired goal. or they make random guesses about what motivates an individual. Just ask your employees the following questions: What would you like more of? That is. In this case. look like an uncle you don't like. Both are serious errors. can become "good" managers in as short as a month. challenge and motivate you to be more productive? What would you like less of? That is. I have found that even "bad" managers. when they are educated about what excites and challenges an individual worker. Why did you quit your last few jobs? Help me understand why you quit. admit to yourself 41 . for example.

Have one-on-one meetings with each employee.that you don't like the employee. etc. your boss. It was developed by a three-person benefits group in a midsize firm. even if you sincerely want to get to know each of your employees. Indicate to the appropriate person that you want to explore what it is that you don't like about the employee and would like to come to a clearer perception of how you can accomplish a positive working relationship with the employee. a peer. A critical condition for employee enthusiasm is a clear. Every manager should be able to expressly state a strong purpose for his unit. Then talk to someone else who is appropriate to hear about your distaste for the employee. your spouse. As noted above. you'll go a long way toward ensuring that your treatment of employees remains fair and equitable. Get to know your employees. 42 . and inspiring organizational purpose: in effect. if you continue to focus on what you see about employee performance. names of their children. Employees are motivated more by your care and concern for them than by your attention to them. credible. What follows is one purpose statement we especially admire. However. their families. This can sound manipulative -and it will be if not done sincerely. for example. it may not happen unless you intentionally set aside time to be with each of them. etc. a "reason for being" that translates for workers into a "reason for being there" that goes above and beyond money. Instill an inspiring purpose. their favorite foods. It often helps a great deal just to talk out loud about how you feel and get someone else's opinion about the situation.

It's whether the people are cared for when they're sick. helped when they're in trouble. the people who are relying on the stockroom being properly maintained. But equally important is the manager's ability to explain and communicate to subordinates the reason behind the mission. Can the manager of stockroom workers do better than telling her staff that their mission is to keep the room stocked? Can she communicate the importance of the job. both inside and outside the company? The importance for even goods that might be considered prosaic to be where they need to be when they need to be there? That manager will go a long way towards providing a sense of purpose.Benefits are about people. 43 . Stating a mission is a powerful tool. It's not whether you have the forms filled in or whether the checks are written.


The result is a pool of applicants from which selections for new employees are made. The overall purpose of the Human Resource Management is to ensure that the organization is able to achieve the success though people. procedure & method relating to an individual of an organization which should be linked with the business & cooperate strategy.” HRM is one of the Primary Objectives. rapid changing circumstances are forcing to rethink on Human Resource Management practices. SHRM practices comprises the procedure & evaluation policies. in practice. The strategic Human Resource frame work aims to leverage or align the human resource 45 . such as employee’s development performance & rewards management. Though theoretically recruitment process is said to end with the receipt of applications. HRM is the creation of the condition where by the talent potential of employee will be realized and their commitment to the causes of the organization is secured. the activity extends to the screening of applications so as to eliminate those who are not qualified for the job.“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”. industry relationship. The Process begins when new recruits are sought and ends when their applications are submitted.

practices to build critical capacities that enable an organization to achieve its goals The human resources should be focusing on the improvement of contribution of the workface to the business results & how it can be improved STRTEGIC HUMAN RESOURCE MANAGEMENT is the pattern of planned HR development & activities intended to enable an organization to achieve its goals. new development strategies and careers schemes for individuals. Increase the pool of job candidates at minimum cost 46 . it is often useful for the HR department & HR professional to be closely involved. The Strategic Human Resources Management depends on the detailed understanding of HR policies & HR Practices. 2. The effective implementations of Strategic Human Resources Management can be done by integrating the HR activities to be strategized with the long term business or cooperate strategy. who are closely directly involved in the firm strategic formulation and implementation. actually working partnership with line managers. new core competencies and new physiological contract. HR professional must be strategic partner both in running the business as well as in running HR. new organization learning capabilities. new people management challenges such as need to development high performance system. PURPOSE AND IMPORTANCE 1. The two important function of HRM are Recruitment & Development. The rapid changes occurring in the business environment has resulted in new organization form. To broad base the applicant pool in order to get the right talent at the affordable cost.

4. 5. 4. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications. 5. 2. Recruitment Strategy Development 47 . Meet legal and social obligations Identify and prepare potential job applicants FACTORS AFFECTING RECRUITMENT External Factors: 1. 5. 2. Unemployment Rate (Area-wise) Labour Market Conditions Political and Legal Environment (Reservations. 3.3. Labour laws) Company’s Image Internal Factors: 1. 3. 4. Demand and Supply status of specific skills set. Recruitment Policy (Internal Hiring or External Hiring?) Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans RECRUITMENT PROCESS 1.

Competitors Technological tools to be used for advertising Where to look How to look Recruitment Planning (a) Number of applicants sought (Based on past experience) 48 .(a) (b) Trained or untrained (to be trained at company’s expense) Internal or external sourcing Internal Recruitment (Source 1) (i) (ii) (iii) Present employees Employee referrals Transfers and Promotions Former Employees Previous Applicants (iv) (v) External Recruitment (Source 2) (i) (ii) (iii) (iv) (v) (vi) Professionals or Trade Associations Advertisements Employment Exchanges Campus Recruitment Walk-ins Interviews Consultants (vii) Contractors (viii) Displaced Persons (ix) (x) Radio and Television Acquisitions and Mergers (c) (d) (e) (f) 2.

Recruitment Cost 5. Image projection 49 . Types of applicants to be called (Qualification. Selection rate from each source 3. Screening of Applications Evaluation and Cost Control (a) (b) Salary Cost Management and Professional Time spent Advertisement Cost Producing Supporting literature Recruitment Overheads and Expenses Cost of Overtime and Outsourcing Consultant’s fees (c) (d) (e) (f) (g) EVALUATION OF RECRUITMENT PROCESS 1. Time lapsed data 6. category. etc) Searching (a) (b) Source activation Selling 4. Retention and Performance of selected candidates 4.(b) 3. 5. Return rate of each source of recruitment 2. area.


The purpose of preliminary interviews is to weed out the prima facie misfit applicants. Preliminary Interview : This is a short interview. Selection Tests : Jobseekers who pass the preliminary interviews are called for tests. Graphology Test (Handwriting).MEANING OF SELECTION Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. 2. Personality Tests and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. 51 . It is also called courtesy interview and is a good public relations exercise. Besides this. These tests can be Aptitude Tests. there are some other tests also like Interest Tests (activity preferences).” PROCESS / STEPS IN SELECTION 1. There are various types of tests conducted depending upon nature of job and the company. Psychometric Tests etc. Medical Tests. A formal definition of Selection is as under: “Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.

Reference and Background Checks : Reference checks and background checks are conducted for provisionally identified candidates to verify the information provided by them. Considering the job climate. or Sequential Interviews. 52 . it is more of a formality and selections decisions are very seldom affected by it. b. Reference checks can be through formal letters or telephonic. Besides there can be Structured and Unstructured interviews.3. Selection Decision : After obtaining all the information. Interviews can be One-to-One. The final decision has to be made out of applicants who have been identified as suitable. However. 5. Interview type and pattern can vary greatly. Stress Interviews. selection decision is made. Panel Interview. 4. a. interview is a formal and in-depth conversation to assess applicant’s suitability. Behavioural Interviews. It is considered to be an excellent selection device. Employment Interview : The next step in selection is employment interview. The views of line managers carry much weight at this stage because it is they who are eventually responsible for the performance of the new employee. Here.

Physical Examination : After the selection decision is made. containing written contractual terms of employment etc are signed by both sides. It is made by way of letter of appointment. 6. the candidate is required to undergo a physical fitness test. Contract of Employment : After the job offer is made and candidates accept the offer. A job offer is often contingent upon the candidate passing the physical examination. 8. Job Offer : The next step in selection process is job offer to those applicants who have successfully passed all tests. 7. certain documents are needed to be executed by the employer and the candidate. GOOD SELECTION PRACTICE: ESSENTIALS 53 . A formal contract of employment.often more than required number is selected to cater for any selected candidate withdrawing at the job offer stage.

54 . politicians. Yet. 2. 4. Involve line managers at all stages 6. race or gender. bureaucrats. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people. Attempt to validate the procedure regularly 7. 3. Determine aids to be used for selection process. region. Plethora of Human Traits : Success in any job is more a function of attitude than aptitude. Pressure : Pressure brought on selectors by management. no test can claim 100% success in finding the right employee. Check competence of recruitment consultants before hiring their services. caste.1. Perception : We all perceive the world differently. 3. 2. 4. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board. relatives. 5. friends and peers to select particular candidate are also barriers to effective selection. Fairness : Barriers of fairness includes discrimination against religion. Help the appointed candidate to succeed by training and management development BARRIERS TO EFFECTIVE SELECTION 1. etc. Train the selectors to assess the right attributes in applicants.

5. Time and Cost : Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests. 55 .


Thus. loyalty. like Communication Skills course for telephone attendant or receptionist. or to perform a new operation in the same machine. etc. though are spoken in the same breadth. meditation exercises. improved intra-departmental relations. It may be to help an employee to grow. At the best. soft skills training. Dividing line between training and development is expectation of immediate benefits. yoga lessons. etc. in case a program. like improved motivation. there might be some intangible benefits in the long run. Development does not lead to any immediate and tangible benefits to the company. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. is directly related to employee’s job skills. Like stress management techniques. While training is expected to reward the company immediately in terms of better productivity of employee. are quite different. reduced absenteeism on medical ground. generally qualifying as development program. Like an employee being taught to operate another machine. will qualify as training 57 .Training and development. Training generally refers to teaching of new skill in professional field of the employee.

The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. making training inventions and planning conducting training programs. It is essential to a strategies process. Education: It is a theoretical learning in classrooms. Human Resource Development is concerned with providing learning and development opportunities. Any training and development program must contain an element of education. Human Resource Development is concerned with providing of learning development opportunities in order to improve individual team and organization performance. which is concerned with meeting both business and individual needs. Human Resource Development involves the following activities: 58 . Same program for some one in back office would be termed as Development program.and not as development.

Human resources Plans ↓ Abilities and capabilities necessary to carry out the plan ↓ Succession Planning ↓ Development needs assessments 59 . forecasting and identification the organization needs for human resources. programs and instruction which enable individual to achieve the levels of knowledge. Education: The development of the knowledge values understanding required in all skill relating to particular areas of activity. Human Resource Development should begin with HR plans of an organization of HR plans deals with analyzing. Training: Planned and systematic modification of behaviors through learning events.Learning: Means a relatively permanent change in behaviors that occurs as a result of practice or experience. Developments: Growth of a person’s ability and potential through the provision of hearing and education exp. skill and competence to carry out their work efficiency.

Human Resource Developments strategy of an organization should be designed in such a way that it helps to acquire competitive celege for the organization. ↓ Individual The Human Resource Development managers should assist the union and promote the sprit of collaboration. Human Resource Developments at enterprises level and national levels has become utmost importment in the present globalization markets. 60 . Human Resource is most valuable and dynamic resource of the organization.↓ Development Planning ↓ ←←←←←←→→→→→→→→ ↓ Organization ↓ Developmental Approaches ↓ Evaluation of Development Success.

In all. It is significant that good pay was considered as the most important factor by the blue-collar workers. interdepartmental relationship etc. yet with the exception of two items (white-collar workers' choice (B) and bluecollar workers' choice (C)) groups selected the same top ten factors. but it ranked as the least important for white-collar workers. This explains the relationship between a manager and his/her subordinate. Interpersonal relationships: This depicts the pattern of interactions employees have within the organization.White-collar workers A Interesting work B Opportunities for development C D E F Enough information Enough authority Enough help and resources Friendly. helpful co-workers Clearly defined responsibilities See results of own work Enough Authority Competent supervision G See results of own efforts H Competent supervision I Clearly defined responsibilities J Good pay It is interesting that out of the job factors listed for the survey. although with different rankings. motivation and productivity in an organization. helpful coworkers Blue-collar workers Good pay Enough help and resources Job security Enough information Interesting work Friendly. The correct handling of interpersonal relationships can improve an organization’s attrition levels dramatically. there are nine to twelve parameters that exist in an organizational environment that shape employee perceptions. Some of these are detailed below. 61 . peer equation.

Brainstorming before major decisions could be a motivator that could increase the sense of belonging for an organisation. Interventions to keep up the image is critical as attrition is believed to have a keen relationship with the “brand image”. it is also true that it is the management’s fault for not keeping the employees involved to whatever extent possible or permissible. And these are essentially perceptions. Company image: The company image is a composite of various factors. This could contribute to a negative morale thereby affecting productivity. While this may be true in certain instances. Sharing of ideas through common forums could be another method to foster good communication across all levels of employees. strategies and future growth plans be shared regularly.Communication within the company: In many cases. While every individual in the organization does not need to be involved at the board or management level discussions. When the leadership of a company is questioned by the employees and there are no satisfactory answers. A blame that could represent itself through an active grapevine. stability of top management. employees believe that decisions that are taken at a “corporate” level are not to their benefit. 62 . fiscal health of the company etc. Organizations that do not practice open communication could end up being blamed for lacking transparency. one can be rest assured that it will have an impact on the “Brand” that the employees work for. Managing the company image is extremely critical. Perceptions about the personal image of senior management. particularly when the employees who have joined the organisation have a certain perception of the organisation from outside. it’s imperative that the company’s vision.

And there are many parameters that include leadership. would add to the sense of security and motivation among employees. and assignments as per interests and skills. or move on to the next best one that comes along their way. integrity and opportunities to contribute in strategic decisions. if addressed on an ongoing basis. these are not independent parameters. However. Job content and career development: Opportunities for personal and professional growth are what makes employees stay with their current organisation. there are certain basic thoughts. Once an organisation tackles the issues of autonomy in decisionmaking and implementation. Usually seen as a unique identity of any organisation. which. fair assignment of work load. It’s upon the organisation and its senior managers to benchmark against what would be the expected standards from the employee perspective. 63 . It creates a working environment that people thrive in — the feel good factor of working.Work climate and organisation culture Am I being treated in the organisation with fairness and respect? Does the workplace encourage ethical practices and values? Will I be awarded for good work? Do I have the freedom to express views without fear of retribution? These are the few basic questions that employees always carry in their minds when it comes to judging work climate and organizational culture. relevance of role assigned as per an individuals’ capability. one can see a largely motivated work force driving the company’s bottomline and topline.

Facilities. Training and development normally balances the personal enrichment and professional development of any employee within the organisation. but with the employees. Performance management systems: This explains the yardstick on which employees are measured on their performance and classified under good/average/poor performers. They have now been replaced by “Electronic City(s)” and “Software Campuses” of various companies. This helps the management chalk out the improvement plan for all employees. What this has done is to 64 . Training and development: This takes into consideration the fact that every employee of any organisation needs to be constantly learning and improving.Compensation and HR services: In the present day. compensation and HR services are increasing to come under microscopic scrutiny. some emotional quotient. Some call it talent management. Employees today are not only concerned about the compensation and benefits they get annually. it’s not an independent body of thought. Performance management systems ensure that the employees’ goals are linked directly to the business goals of the organisation. their being paid according to their roles and responsibility. their performance linked reward systems and how progressive HR policies are in their organization. with organizations stressing on EVA (Economic Value Added) and employees as brand ambassadors. It works in continuum with all the factors mentioned above. tools & infrastructure Gone are the days of industrial age when factories used to be on the outskirts of big cities or towns. they are also bothered about what their compensations are as per industry standards. support.

an organisation can detail all of the factors mentioned above and break them into 90 – 100 sub-factors.add a slew of parameters that affects performance levels. Perhaps the money that a company saves from cutting back on unnecessary frills may add its bit to the bottomline. Who decided what’s the best aesthetics? What constitutes a great ambience? It’s critical to gauge how important these parameters are in an employees’ mind and arrive at exactly what is required to keep them happy with the workplace. data analysis can actually help one arrive at a conclusion on what are the exact factors that need the company’s attention from the people management perspective. viz. This can be used to propose HR interventions that 65 . Importance signifies how important the factor is at a workplace and satisfaction signifies how satisfied they are on the given parameters with respect to the company they work for. these are very subjective issues. Employees today believe that these are a given. physical location of office. availability of facilities for recreation and access to high speed internet connections. one can pinpoint the areas that require short and long-term solutions. And these are seemingly simple things. But on the other hand. How does one do this? Using research. While the perceptions are bound to vary among individuals. appearance and aesthetics of a workplace. following which the employees can rank each factor on an “Importance” and “Satisfaction Scale”.. These have become hygiene factors. The motivational level of employees is a sum of many of these factors and how these are perceived. Analysing the gap between importance and satisfaction.

one is never surprised or shocked. As a brief review of terms. and the best form of leadership is designated as SAL. training involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs.would address the concern areas and consequently. Typical Reasons for Employee Training and Development 66 . Development is a broad. it is the leadership quality which leads to the success of a company through team building and motivating its people. leadership must begin with the chief executive and it is more a matter of adaptation than of imparting knowledge. This is mainly for convenience and ease compared to catering for individual oddities (Lindstone (1978)). Individualize motivation policies It is well known that individual behavior is intensely personal and unique. yet companies seek to use the same policies to motivate everyone. Ultimately. an actionable plan to boost motivation and productivity can be implemented. giving praise and constructive criticism can be more effective than money in the matter of motivation. situation adaptable leadership. often to perform some job or new role in the future. ongoing multi-faceted set of activities (training activities among them) to bring someone or an organization up to another threshold of performance. decisiveness. In this style of leadership. 'Tailoring' the policy to the needs of each individual is difficult but is far more effective and can pay handsome dividends. Fairness. Leadership is considered synonymous (Tack (1979)) with motivation.

e.Training and development can be initiated for a variety of reasons for an employee or group of employees. 2. the operation of a new performance management system f.) To "benchmark" the status of improvement so far in a performance improvement effort c. 4.) To train about a specific topic (see below) Typical Topics of Employee Training 1. and includes techniques to value diversity 5. Computer skills: Computer skills are becoming a necessity for conducting administrative and office tasks.) As part of succession planning to help an employee be eligible for a planned change in role in the organization e..) As part of an overall professional development program d.) To "pilot". 67 .) When a performance appraisal indicates performance improvement is needed b. 3. Customer service: Increased competition in today's global marketplace makes it critical that employees understand and meet the needs of customers.: a. Communications: The increasing diversity of today's workforce brings a wide variety of languages and customs. Also. Diversity: Diversity training usually includes explanation about how people have different perspectives and views.g. today's diverse workforce brings a wide variety of values and morals to the workplace. Ethics: Today's society has increasing expectations about corporate social responsibility. or test.

7. benchmarking. etc. Training can people to get along in the workplace.. These reasons include: 1. etc. especially about what are inappropriate behaviors. Increased employee motivation 3. Quality initiatives: Initiatives such as Total Quality Management. repetitive activities. but can also be useful with practical advice for avoiding assaults. Human relations: The increased stresses of today's workplace can include misunderstandings and conflict. etc. Safety: Safety training is critical where working with heavy equipment . General Benefits from Employee Training and Development There are numerous sources of on-line information about training and development. Increased efficiencies in processes.. Increased capacity to adopt new technologies and methods 5. guidelines and standards for quality. Increased job satisfaction and morale among employees 2. hazardous chemicals. Enhanced company image.g. Reduced employee turnover 7. etc. Increased innovation in strategies and products 6. Sexual harassment: Sexual harassment training usually includes careful description of the organization's policies about sexual harassment. 9. Quality Circles. Several of these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training among employees. require basic training about quality concepts.. resulting in financial gain 4.6. e. conducting ethics training (not a good reason for ethics training!) 68 . 8.

To make the managers • Self-starters • Committed • Motivated • Result oriented 69 . Risk management. training about sexual harassment.” The need for Training and Development is determined by the employee’s performance deficiency.g. diversity training Definition of Training and Development “Training and Development is any attempt to improve current or future employee performance by improving his performance capabilities and potential through learning. e. computed as follows.. usually by changing the employee’s attitude or increasing his or her skills and knowledge. Training and Development Need = Standard Performance – Actual Performance OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP) 1.8.

Performance Appraisals 2. Teach them about effective communication 6. Interviews 3. Creating self awareness 3. Helps remove performance deficiencies in employees 2. Develop inspiring leadership styles 4. Work Sampling 7. Accidents. flexibility and capacity for growth in an organization 3. Rating Scales 70 . scraps and damages to machinery can be avoided 4. Greater stability. To subordinate their functional loyalties to the interests of the organization IMPORTANCE OF TRAINING AND DEVELOPMENT 1. Reduces dissatisfaction. Serves as effective source of recruitment 5. Instil zest for excellence 5. Attitude Surveys 5.• Sensitive to environment • Understand use of power 2. absenteeism. Questionnaires 4. complaints and turnover of employees IDENTIFICATION OF TRAINING NEEDS Individual Training Needs Identification 1. It is an investment in HR with a promise of better returns in future 6. Training Progress Feedback 6.

Diagnosis of causes of performance deficiencies can be done METHODS OF TRAINING On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation. Exit Interviews 6. Small boys working there as helpers learn while helping the head mechanic. Quality Circles 8. Analysis of Current and Anticipated Changes Benefits of Training Needs Identification 1. Trainers can be informed about the broader needs in advance 2. Organizational Goals and Objectives 2. Employee learns while working. Trainers Perception Gaps can be reduced between employees and their supervisors 3. Organizational Climate Indices 4. it is called OJT. Customer Satisfaction Survey 9. MBO / Work Planning Systems 7. Take the instance of roadside mechanics. Efficiency Indices 5. Trainers can design course inputs closer to the specific needs of the participants 4. Personnel / Skills Inventories 3.Group Level Training Needs Identification 1. They do not learn the defect 71 . and not simulated environment.

It is free from artificial classroom situations Disadvantages of On-the-Job Training: 1. Trainer may not be experienced enough to train or he may not be so inclined. Internships and Assistantships: Interns or assistants are recruited to perform specific time-bound jobs or projects during their education. Job Rotation: Job Coaching: Refer page 29. Trainees are highly motivated 6. Job Instruction: It may consist of an instruction or directions to perform a particular task or a function. It is most effective because it is learning by experience 4.analysis and engine repairing skills in any classroom on engine models. 3. It may be in the form of orders or steps to perform a task. Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job. It is often informal 3. It is not systematically organized 3. An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job. It is directly in the context of job 2. 2. It is least expensive 5. 72 . 2. Advantages of On-the-Job Training: 1. 4. 5. Poorly conducted programs may create safety hazards “On the Job Training” Methods 1.

Video. 4. Classroom Lectures: Advantage – It can be used for large groups. Likely to lead to boredom for employees. It is artificial in nature “Off the Job Training” Methods 1. Advantages – Wide range of realistic examples. No flexibility for different audience. 5. Efficiently created programs may add lot of value Disadvantages of Off-the-Job Training: 1. Ensures active 73 . It is often formal 3. etc are called Off the Job Training. 3. classrooms. Televisions. No authentic feedback mechanism. quality control possible. It is not directly in the context of job 2. Disadvantages – One-way communication. It is not learning by practice. Trainees may not be much motivated 6. and Presentations etc. It may not be based on experience. It is systematically organized 3.Off the Job Training: Trainings conducted in simulated environments. Cost per trainee is low. Trainers are usually experienced enough to train 2. Audio-Visual: It can be done using Films. Disadvantages – Low interest of employees. It is One-way communication. 2. seminars. Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. No feedback mechanism. Advantages of Off-the-Job Training 1. It is expensive.

manuals or machinery is 74 . i. Attitudinal change is another result. Case Studies: It is a written description of an actual situation in the past in same organisation or some where else and trainees are supposed to analyze and give their conclusions in writing. Disadvantage – Participants may resort to their old habits after the training. listening skills. It is more emotional orientation and improves interpersonal relationships. Advantages – increased ability to empathize. There is no pre-planned agenda and it is instant. ii. 5. cost of books. 7. material is structured and self-contained. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. strong motivation for repeat learning. It is an ideal method to promote decision-making abilities within the constraints of limited data.participation of all trainees. Disadvantages – Scope for learning is less. 6. Sensitivity Trainings: This is more from the point of view of behavioural assessment as to how an individual will conduct himself and behave towards others under different circumstances. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. trainees can progress at their own speed. Case is later discussed by instructor with all the pros and cons of each option. These are generally used in MDP. Can be very effective but needs good conductors. openness. and conflict resolution skills. 4. tolerance. Advantages – Self paced.

Advantages – Provides accountabilities. 75 . Computer Aided Instructions: It is extension of PI method. 8. 9. modifiable to technological innovations. flexible to time. Laboratory Training.expensive. Disadvantages – High cost. by using computers.


routine. colleagues. Orientation conveys following information: 77 . Definition “It is a Planned Introduction of employees to their jobs. On the day of reporting. and so on. physical fitness. before a new recruit is sent to border.INDUCTION AND ORIENATION Induction and Orientation are the procedure that a new employee has to go through in the organisation. weapon handling. etc.where the facilities are. functional and reporting channels. A new employee carries with him a lot of apprehension about place. This is called Induction. he needs to know his office/work place. from peon to CEO.” Difference Between Induction and Orientation Induction refers to formal training programs that an employee has to complete before he is put on job. need orientation course when they join the organisation. amenities. Every employee starting from the lower most. job. who are the people he would be working with and so forth. organisational culture. their co-workers and the organization per se. Orientation is the information given to the new employees to make him aware of the comfort issues . say. what time lunch is. etc. Like in Military. he is trained for a few months in Drill/Parade.

Detailed Orientation Presentation covering policies.1. etc 5. in formal orientation. Formal or Informal: In informal orientation. his work place. Objectives. History. In contrast. Daily Work Routine 4. etc. Products and Services. 78 . Importance of Jobs to the organization 7. A structured information and introduction system will make his transitory period short and reduce his anxiety quickly. new employees are put on the jobs and they are expected to acclimatise themselves with the work and the organisation. an employee goes through a structured introduction programme. his exact responsibilities. Organisation’s geography/layout 2. PURPOSE OF ORIENTATION The idea of Orientation programme is to make the new employees feel “at home” in new environment. Organisational set up (Structure) 3. work rules and employee benefits. TYPES OF ORIENTATION PROGRAMS 1. 6. Introduction to colleagues/immediate superiors and subordinates. He will begin to perform to his potential quickly. Any employee while joining a new organisation is anxious about the new set-up. new colleagues. his own performance vise a visa other more experienced employees in the organisation. Organization Profile.

It becomes disjunctive when the new employee occupies a vacant position with no one to hand him over the position.2. This is more applicable to high positions who may have been hired with a view to bring in their experiences and methods of management to the organisation. He learns the prevalent practices and history slowly from his subordinates and superiors on gradual basis. Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over the position to the new incumbent. 79 . 3. Investiture or Divestiture: This is the final strategic choice which relates to decision regarding allowing the new employees to affect the organisation with his identity/ideas/functional methods or asking him to modify his identity to merge with existing culture of the organisation. Individual or Collective: Another choice is to be made whether new employees are to be inducted in group or individually. 4.


(a) General personality such as initiative. Professional qualities like job knowledge.” Definition 2: “It is formal. courage and endurance are more important factors. team spirit. Definition 1: “It is a systematic evaluation of an individual with respect to present performance on the job and his potential. On the other side. dependability. versatility and so on.PERFORMANCE APPRAISALS WHAT IS PERFORMANCE APPRAISAL? Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. Assessment is often not confined to past performance but checks for potential performance also. etc. a foreman in a factory would never be assessed for his courage. his tactical abilities are more important. quality and quantity of output. Factors vary from organization to organization and job to job. The performance is measured against a number of factors. But for the Army General. structured system of measuring/evaluating job related (b) 81 . The second definition brings in focus behaviour because behaviour affects not only employee’s performance but even his peers’ and subordinates’. For a soldier. leadership qualities. These factors can be divided into two groups.

Objectives: Performance appraisals are used as a basis for following activities: 1. Competency building 6. Confirmations 3. Feedback and Grievances PERFORMANCE APPRAISAL PROCESS 1. suitability and potential. Compensation reviews 5. Training and Development program planning 4.behaviours and outcomes to discover how an employee has performed on the job and how he can perform more effectively in future so that employee. Promotions 2.” PERFORMANCE APPRAISALS AND JOB ANALYSIS RELATIONSHIP Job Analysis  Describes the work and personnel requirement of a particular job Performance Standard  Translate job requirements into levels of acceptable or unacceptable performance Performance Appraisal Describe the individual’s past performance. Evaluation of HR Programs 7. organization and society. all benefits. Setting Objectives and Standards of performance 82 .

Appraise and record the performance 5. low cost. Broadly all methods of appraisals can be divided into two different categories. 2. Checklist: 83 . easy to use. • • Past Oriented Methods Future Oriented Methods PAST ORIENTED METHODS 1. Each of the selected performance attribute is numerically marked and then totalled to arrive at the final figure. Rating scales consist of grading an employee’s past performance on a scale of say 1 -10. Each of the methods is effective for a particular class of employees in certain types of organization only. Use and store data for appropriate purposes 6. large number of employees covered.2. Disadvantages – Rater’s biases. Rating Scales: This is simplest and most popular method. every type of job can be evaluated. Design an appropriate appraisal program – Appraisal program for different levels of employees would be different. Advantages – Adaptability. no formal training required. 3. Performance Interviews 4. Identify opportunities variables TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS Numerous methods have been devised to measure the quantity and quality of performance appraisals.

Disadvantages – Rater’s biases. 20% in Good Grade. 3. The rater is forced to make a choice. Forced Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false.Under this method. Advantages – economy. HR department does actual assessment. limited training required. 84 4. Here. use of improper weights by HR Deptt. does not allow rater to give relative ratings. Advantages – Absence of personal biases because of forced choice. Disadvantages – Statements may not be correctly framed. standardization. . Forced Distribution Method: One of the problems faced in large organizations is relative assessment tendencies of raters. checklist of “Statements of Traits” of employee in the form of Yes or No based questions is prepared. Say 10% employees in Excellent Grade. ease of administration. 40% in Average Grade. the rater only does the reporting or checking and HR department does the actual evaluation. 20% in Below Average Grade and 10% in Unsat grade. This method \ overcomes that problem. It forces every one to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. Some are too lenient and others too severe.

Advantages – Evaluations are based on actual job behaviours. 10% 20% Unsat Below Avg Excellent 5. Disadvantages – Negative incidents may get priority or incidences could be forgotten. Relatively good employees of key departments get poor rating and relatively poor employees of laggards’ departments get good rating. Ratings are supported by descriptions. 40% Average 20% Good 10% Critical Incidents Method: It takes cognisance of abnormal incidences only. thus favouritism is beaten.The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. 85 . good or bad. Feedback is easy and reduces recency biases. Supervisors record such incidents as and when they occur.

Actual performance is more a function of attitude of person than potential. 8. Field Review Method: This method is useful only for senior positions in a large organisation spread over cities and countries. Confidential Reports: Though popular with government departments. Appraisal is done by someone outside employees’ own department usually from corporate or HR department. Advantage – Tests only measure potential and not attitude.6. Performance Tests and Observations: This is based on the test of knowledge or skills. Observation of actual behaviours not possible. 7. Disadvantages – Some times costs of test development or administration are high. its application in industry is not ruled out. Advantages – Useful for managerial level promotions. when comparable information is needed. Disadvantages – Outsider is generally not familiar with employees’ work environment. on employees working at distant locations in different set of conditions. Here the report is given in the form of Annual Confidentiality Report (ACR). The tests may be written or an actual presentation of skills. Feedback to the 86 . Tests must be reliable and validated to be useful. The system is highly secretive and confidential.

good postings. Essay Method: In this method the rater writes down the employee description in the form of an essay. 87 . Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Comparative Evaluation Method (Ranking and Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. etc. Moreover. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. comparative or relative performance among employees is not clearly demarcated. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions. Hence. it is more dependent upon cost and benefit analysis. 11. 9. The usual techniques used may be ranking methods and paired comparison method. and benefit the organization derives is ascertained. it is also time consuming and therefore affects full assessment. Also.assessee is given only in case of an adverse entry. Cost Accounting Method: Here performance is evaluated from the monetary returns yield to his or her organization. Cost to keep employee. 10.

Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. 13. and discussion with supervisors and review of other 88 . It is easy to administer. • Paired Comparison Method: In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula – N x (N-1) / 2. Advantage – It is direct and accurate and transparent. psychological tests. FUTURE ORIENTED METHODS 12. Disadvantages – Applicable only to quantifiable jobs. However how best and why best are not elaborated in this method. Management By Objectives (MBO): Performance is rated against the achievement of objectives mutually agreed by the employee and the management. from best to worst. The method is too tedious for large departments and often such exact details are not available with rater. It is done in the form of in-depth interviews. Short-term goals given preference at the cost of long-term goals etc.• Ranking Method: Superior ranks his worker based on merit.

Costs of employees travelling and lodging. Solid performers may feel suffocated in simulated situations. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. Advantages – Well-conducted assessment centre can achieve better 89 . Assesses are requested to participate in in-basket exercises. and motivational and other personal characteristics affecting his performance. role playing and other similar activities which require same attributes for successful performance in actual job. Disadvantages – Concentrates on future performance potential. No assessment of past performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. work groups.evaluations. computer simulations. It is more focused on observation of behaviours across a series of select exercises or work samples. Assessment Centres: This technique was first developed in USA and UK in 1943. 14. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation. It is more focused on employees emotional. Ratings strongly influenced by assessee’s inter-personal skills. psychologists. intellectual.

This technique has been found to be extremely useful and effective. 90 . expensive and time consuming. 15. team members. threatening. subordinates and self with different weightage to each group of raters. 360-Degree Feedback: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors. It is especially useful to measure inter-personal skills. receiving feedback from multiple sources can be intimidating. Purpose of performance evaluation is to make sure that employee’s goals. customers. content validity and predictive ability are said to be high in Assessment Centres. customer satisfaction and team building skills. One of the biggest advantage of this system is that assesssees can not afford to neglect any constituency and has to show all-round performance. on the negative side. The tests also make sure that the wrong people are not hired or promoted. it clearly defines the criteria for selection and promotion. Finally.forecasts of future performance and progress than other methods of appraisals. However. employees behaviour and feedback about performance are all linked to the corporate strategy. Also reliability. peers.

Total Quality Management 12. Job Enlargement and Enrichment 8. religion. severity etc. Uniformity of appraisals 4. Avoid rating problems like halo effect. Standardized Performance Appraisal System 2. Use of objectively verifiable data 8. Defined performance standards – Bench Marks 3. creed. Collective Bargaining 7. Joint Councils 6. leniency. Empowered Teams 11. Ownership (share allocation) 3. Use of relevant rating tools or methods 6. Trained Raters 5. Staff Councils 5. region etc. Consistent Documentations maintained 10. race.ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM: 1. Should be based on job analysis 7. Financial Participation 91 . No room for discrimination based on cast. 9. Quality Circles 10. Complete Control 4. central tendency. Board Level 2. METHODS OF WORKERS’ PARTICIPATION IN MANAGEMENT 1. Suggestion Schemes 9.

Self-esteem. Better quality suggestions expected A critical lesson for new managers and supervisors is to learn to focus on employee behaviors. Reward it soon after you see it This helps to reinforce the notion that you highly prefer the behaviors that you're currently seeing from your employees. Performance in the workplace should be based on behaviors toward goals. the shorter the time between an employee's action and your reward for the action. you leave it up to 92 .BENEFITS OF PARTICIPATION 1. Reduced conflicts and stress between Management and workers 5. the clearer it is to the employee that you highly prefer that action. not on popularity of employees. More commitment to goals 6. morally and interpersonally) for focusing only on how you feel about your employees rather than on what you're seeing with your eyeballs. Cultivate strong skills in delegation: Delegation includes conveying responsibility and authority to your employees so they can carry out certain tasks. Less resistance to change 7. Often. However. Gives identity to an employee 2. not on employee personalities. Less labour problems 8. Motivates employee 3. job satisfaction and cooperation improves 4. You can get in a great deal of trouble (legally.

Such teams require less management and normally result in a healthy reduction in management layers and costs. which usually means more fulfillment and motivation in their jobs. most workers get a motivation boost from working in teams. New managers and supervisors are often focused on a getting "a lot done". Research shows repeatedly that the quality of a group's efforts in areas such as problem solving is usually superior to that of individuals working on their own.your employees to decide how they will carry out the tasks. Skills in delegation can free up a great deal of time for managers and supervisors. This usually means identifying and solving problems. as well. 93 . scheduling. It also allows employees to take a stronger role in their jobs. Whenever possible. employees become frustrated. Without ongoing acknowledgement of success. with the teams having authority over matters such as quality control. Celebrate achievements: This critical step is often forgotten. skeptical and even cynical about efforts in the organization. Most work requires a team effort in order to be done effectively. Experienced managers come to understand that acknowledging and celebrating a solution to a problem can be every bit as important as the solution itself. and many work methods. managers should organize employees into selfmanaged teams. In addition. Promote teamwork.

then have other employees express their gratitude to the employee. If an employee is providing a product or service to external customers. Performance management can focus on organizations. processes in the organization and employees. ongoing attention and feedback about measures toward the goals. then bring in a customer to express their appreciation to the employee. A manager needs to carefully assess who works best with whom. Let employees hear from their customers (internal or external) Let employees hear customers proclaim the benefits of the efforts of the employee. redefine your primary role as serving as your 94 . Incorporating a command-and-control style is a sure-fire path to demotivation. and approaches. and your expectations for its output. methods. groups. Good performance management includes identifying goals. how it will operate. At the same time. Be clear with the new team about its role. Be an expediter for your employees. and corrective actions to redirect activities back toward achieving the goals when necessary. if the employee is working to keep internal computer systems running for other employees (internal customers) in the organization. measures to indicate if the goals are being met or not. For example. Implement at least the basic principles of performance management. Instead.Creating teams has as much to do with camaraderie as core competences. it is important to create the opportunity for crosslearning and diversity of ideas.

95 . How do you know. beyond what's obvious. This is a great way to build trust. And if. including serving as a linchpin to other business units and managerial levels to represent their best interests and ensure your people get what they need to succeed. for whatever reason.employees' expediter: It is your job to facilitate getting their jobs done. you can't immediately address a particular need or request.. your "customers. what is most important to your employees for getting their jobs done? Ask them! "Lunch and schmooze" sessions with employees are particularly helpful for doing this." Your role as an expediter involves a range of activities. be open about it and then let your workers know how you're progressing at resolving their problems. in this sense. Your reports are.


and motivation has to be 'tailored' to each individual. attitude of the candidate. There is no simple answer to the question of how to motivate people. and the method which is used. experience. Human resource remains the focal point and leadership the critical component. is based on communication skills.CONCLUSION: From the observation we can know that the company follows both internal and external source of recruitment. but money alone is not enough. which the company follows. 97 . aggregate marks. The factor which attracts people both internally and externally is growth prospects. namely financial aspects of rewarding employees. Criteria on which selection of the candidate is selected. Next step is selection. We have discussed some of the pertinent theories bearing on human motivation and this is balanced by some of the practical factors which can lead to excellence. knowledge and their ability to do the job. is advertisement and the method followed to recruit the people in the company is direct method that is by conducting face to face in depth interviews in the company premises to know the people skills. though it does help. Brand image and working atmosphere in the company. The external source. The next section deals with an important mode of motivation. Can money motivate? Yes. and knowledge. for selection in the company is through written and oral test.

each of the above mentioned practices will play a key role in supporting your employees' goals for achievement. and will enable them to retain the enthusiasm they brought to their roles in the first place. But security is just the beginning.The most important thing is to provide employees with a sense of security. one in which they do not fear that their jobs will be in jeopardy if their performance is not perfect and one in which layoffs are considered an extreme last resort. and camaraderie. not just another option for dealing with hard times. Many rounds of Interviews are held which tries to bring best out of a candidate. The over all process of the hiring in ICICI is satisfactory. No changes are required in the actual process and the tools used. 98 . Candidates with high energy levels and can win attitude are preferred. equity. but changes in using those tools would be helpful. When handled properly.

RECOMMENDATIONS 99 . 100 .Rao Human Resource Management By Fisher Schoenfeldt Shaw Websites: www.RECOMMENDATIONS Books referred: Human Resource Management By Gupta Rosy Joshi Human Resource Management By