Chapter 2 MS

Management Science Notes by N.Aruna Kumari, Asst. Prof.
Humanities & Sciences
CHAPTER-2: HUMAN RESOURCE MANAGEMENT
Concepts of HRM;Basic functions of HR manager - human resource planning (definition;

objectives; process), recruitment (definition; sources; techniques), selection (definition;
process), induction and orientation, training and development (definition; need; methods),
employee exit process, employee relations management, employee compensation and benefits
administration, job evaluation (objectives; process; methods), and performance appraisals
(objectives; process; methods).
Human Resource Management Functions:

The major functions of human resource management are as follows:
1. Managerial Functions
2. Operative Functions
3. Advisory Functions.
Human Resource or Personnel Department is established in most of the organisations,
under the charge of an executive known as Human Resource/Personnel Manager. This
department plays an important role in the efficient management of human resources.
The personnel department gives assistance and provides service to all other departments
on personnel matters. Though personnel or human resource manager is a staff officer in
relation to other departments of the enterprise, he has a line authority to get orders
executed within his department.
(i) Managerial functions
(ii) Operative functions
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must
perform the basic managerial functions of planning, organising, directing and controlling in
relation to his department.
1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is
necessary to determine the goals of the organisation and lay down policies and procedures
to reach the goals. For a human resource manager, planning means the determination of
personnel programs that will contribute to the goals of the enterprise, i.e., anticipating
vacancies, planning job requirements, job descriptions and determination of the sources of
recruitment.
The process of personnel planning involves three essential steps.
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Management Science Notes by N.Aruna Kumari, Asst. Prof. Humanities & Sciences
Firstly, a supply and demand forecast for each job category is made. This step requires
knowledge to both labour market conditions and the strategic posture and goals of the
organisation.
Secondly, net shortage and excess of personnel by job category are projected for a specific
time horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of particular
categories of human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and
programs to reach them, he must design and develop organisation structure to carry out
the various operations.
The organisation structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities involved;
(iv) Co-ordination of activities of different individuals.
3. Directing:
The direction function is meant to guide and motivate the people to accomplish the
personnel programs. The personnel manager can motivate the employees in an
organisation through career planning, salary administration, ensuring employee morale,
developing cordial relationships and provision of safety requirements and welfare of
employees.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans,
which in turn have been formulated on the basis of the objectives of the organisation. Thus,
controlling completes the cycle and leads back to planning. It involves the observation and
comparison of results with the standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of the
personnel department in terms of various operative functions. It involves performance
appraisal, critical examination of personnel records and statistics and personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the
human resource or personnel department. These are concerned with employment,
development, compensation, integration and maintenance of personnel of the organisation.
The operative functions of human resource or personnel department are discussed
below:
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1. Employment:
The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the objectives of
the organisation. This involves recruitment, selection, placement, etc. of the
personnel.Before these processes are performed, it is better to determine the manpower
requirements both in terms of number and quality of the personnel.
2. Development:
Training and development of personnel is a follow up of the employment function. It is a
duty of management to train each employee property to develop technical skills for the job
for which he has been employed and also to develop him for the higher jobs in the
organisation.
Proper development of personnel is necessary to increase their skills in doing their jobs
and in satisfying their growth need.For this purpose, the personnel departments will device
appropriate training programs..
3. Compensation:
This function is concerned with the determination of adequate and equitable remuneration
of the employees in the organisation of their contribution to the organisational goals. The
personnel can be compensated both in terms of monetary as well as non-monetary
rewards.Factors which must be borne in mind while fixing the remuneration of personnel
are their basic needs, requirements of jobs, legal provisions regarding minimum wages,
capacity of the organisation to pay, wage level afforded by competitors etc. For fixing the
wage levels, the personnel department can make use of certain techniques like job
evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided with
good working, conditions so that they may like their work and workplace and maintain
their efficiency. Working conditions certainly influence the motivation and morale of the
employees.These include measures taken for health, safety, and comfort of the workforce.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases,
it is found that they do not contribute towards the organisational goals as much as they can.
This happens because employees are not adequately motivated. The human resource
manager helps the various departmental managers to design a system of financial and non-
financial rewards to motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the records of the employees
working in the enterprise. It keeps full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to the behaviour of personnel
like absenteeism and labour turnover and the personnel programs and policies of the
organisation.
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7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly discharged
by the human resource manager. The human resource manager can help in collective
bargaining, joint consultation and settlement of disputes, if the need arises. This is because
of the fact that he is in possession of full information relating to personnel and has the
working knowledge of various labour enactments.
8. Separation:
Since the first function of human resource management is to procure the employees, it is
logical that the last should be the separation and return of that person to society. Most
people do not die on the job. The organisation is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned person is
in as good shape as possible. The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.
3. Advisory Functions:
Human resource manager has specialised education and training in managing human
resources. He is an expert in his area and so can give advise on matters relating to human
resources of the organisation.
He offers his advise to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation and evaluation of
personnel programs, policies and procedures. He also gives advice for achieving and
maintaining good human relations and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various departments on matters such as
manpower planning, job analysis and design, recruitment and selection, placement,
training, performance appraisal, etc
Human Resource Planning:

 Human resources planning is a process that identifies current and future human
resources needs for an organization to achieve its goals.
 Human resources planning should serve as a link between human resources
management and the overall strategic plan of an organization
Objectives of Human Resource Planning:
 To predict the employee turnover and make the arrangements for minimizing
turnover and filing up of consequent vacancies.
 To meet the requirements of the programmes of expansion, diversification etc.
 To anticipate the impact of technology on work, existing employees and future
human resource requirements.
 To progress the knowledge, skill, standards, ability and discipline etc.
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 To appraise the surplus or shortage of human resources and take actions

accordingly.
 To maintain pleasant industrial relations by maintaining optimum level and
structure of human resource.
 To minimize imbalances caused due to non-availability of human resources of right
kind, right number in right time and right place.
 To make the best use of its human resources; and
 To estimate the cost of human resources.
Principles of HRM
1. Individual Development
2. Scientific Selection Process
3. Incentives
4. Effective Utilization
5. Adequate Communication
6. Participation
7. Dignity of Labour
8. High Morale
9. Team Spirit
10. Labour and Management
HR Process:
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1. Manpower Planning: The process by which management ensures, it has the right
number and kinds of people in the right places at the right time, who are capable of
helping the organization to achieve its goals.
Assessing Human Resources
 The assessment of HR begins with environmental analysis, under which the external
(PEST) and internal (objectives, resources and structure) are analyzed to assess the
currently available HR inventory level.
Demand Forecasting
 HR forecasting is the process of estimating demand for and supply of HR in an
organization. Demand forecasting is a process of determining future needs for HR in
terms of quantity and quality.
Supply Forecasting
 Supply is another side of human resource assessment. It is concerned with the
estimation of supply of manpower given the analysis of current resource and future
availability of human resource in the organization
Action Plan
 It is the last phase of human resource planning which is concerned with surplus and
shortages of human resource. Under it, the HR plan is executed through the
designation of different HR activities.
 The major activities which are required to execute the HR plan are recruitment,
selection, placement, training and development, socialization etc.
2. RECRUITMENT: The Process by which a Job Vacancy is identified and potential

employees are notified where the process is regulated subject to employment law.
Requirements in Recruitment Process:
• Job description: Outline of the role of the job holder
• Person specification: Outline of the skills and qualities required
of the post holder
• Job enlargement: Job design that expands an employee’s responsibilities by
increasing the number and variety of tasks assigned to the worker.
• Job enrichment: Change in job duties to increase employees’ authority in planning
their work, deciding how it should be done, and learning new skills.
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Steps in Recruitment Process:
The modern sources of Recruitment are:

1. Employee Referrals: Present employees are well aware of the qualifications, attitudes,
experience and emotions of their friends and relatives. They are also aware of the job
requirements and organizational culture of their company. As such they can make
preliminary judgment regarding the match between the job and their friends and relatives.
2. Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is
concerned.
3 Private Employment Agencies/Consultants: Public employment agencies or consultants
like ABC Consultants inIndia perform recruitment functions on behalf of a client company
by charging fees. Line managers are relieved from recruitment functions and can
concentrate on operational activities.
4 Public Employment Exchanges: The Government set up Public Employment Exchanges
in the country to provide information about vacancies to the candidates and to help the
organization in finding out suitable candidates. As per the Employment Exchange act 1959,
makes it obligatory for public sector and private sector enterprises inIndia to fill certain
types of vacancies through public employment exchanges.
5. Professional Organizations: Professional organizations or associations maintain
complete bio-data of their members and provide the same to various organizations on
requisition. They act as an exchange between their members and recruiting firm.
6 Data Banks: The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc and
feed them in the computer. It will become another source and the co can get the particulars
as and when required.
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7 Casual Applicants: Depending on the image of the organization its prompt response
participation of the organization in the local activities, level of unemployment, candidates
apply casually for jobs through mail or handover the application in the Personnel dept. This
would be a suitable source for temporary and lower level jobs.
8 Similar Organizations: Generally experienced candidates are available in organizations
producing similar products or are engaged in similar business. The Management can get
potential candidates from this source.
9. Trade Unions: Generally unemployed or underemployed persons or employees seeking
change in employment put a word to the trade union leaders with a view to getting suitable
employment due to latter rapport with the management.
10.Walk In: The busy organization and rapid changing companies do not find time to
perform various functions of recruitment. Therefore they advise the potential candidates to
attend for an interview directly and without a prior application on a specified date, time
and at a specified place.
11.Consult In: the busy and dynamic companies encourage the potential job seekers to
approach them personally and consult them regarding the jobs. The companies select the
suitable candidates and advise the company regarding the filling up of the positions. Head
hunters are also called search consultants.
12.Body Shopping: Professional organizations and the hi-tech training develop the pool of
human resource for the possible employment. The prospective employers contact these
organizations to recruit the candidates. Otherwise the organizations themselves approach
the prospective employers to place their human resources. These professional and training
institutions are called body shoppers and these activities are known as body shopping. The
body shopping is used mostly for computer professionals. Body shopping is also known as
employee leasing activity.
13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over
help in getting human resources. In addition the companies do also alliances in sharing
their human resource on adhoc basis.
14.E_recruitment: The technological revolution in telecommunications helped the
organizations to use internet as a source of recruitment. Organizations advertise the job
vacancies through the world wide wed (www). The job seekers send their applications
through e-mail using the internet.
15.Outsourcing: Some organizations recently started developing human resource pool by
employing the candidates for them. These organizations do not utilize the human
resources; instead they supply HRs to various companies based on their needs on
temporary or ad-hoc basis.
Techniques of Recruitment:
Recruitment techniques are the means or media by which management contacts
prospective employees or provide necessary information or exchanges ideas in order to
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stimulate them to apply for jobs. Management uses different types of techniques to
stimulate internal and external candidates.
Techniques of Recruitment are divided into two viz Traditional and Modern:
• Traditional Techniques
• Modern Techniques
• Promotions Scouting
• Transfers Salary & Perks
• Advertising ESOP’s
Traditional Techniques of Recruitment:
Promotions: Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher level jobs if the
management gives them the assurance that they will be promoted to the next higher level.
Transfers: employees will be stimulated to work in the new sections or places if the
management wishes to transfer them to the places of their choice.
Advertising: Advertising is a widely accepted technique of recruitment, though it mostly
provides one way communication. It provides the candidates in different sources, the
information about the job and company and stimulates them to apply for jobs. It includes
advertising through different media like newspapers, magazines of all kind, television etc.
The technique of advertising should aim at attracting attention of the prospective
candidates ii) creating and maintaining interest and stimulating action by the candidates.
Management in order to achieve these objectives of advertising has to:
– Analyse job requirements
– Decide who does what
– Write the copy
– Design the advertisement
– Plan and select the media and
– Evaluate response.
Modern Techniques of Recruitment:
Scouting: Scouting means sending the representation of the organizations to various

sources of recruitment with a view to persuading or stimulating the candidates to apply for
jobs. The representatives provide information about the company and exchange
information and ideas and clarify the doubts of the candidates.
Salary and Perks: Companies stimulate the prospective candidates by offering higher level
salary, more perks, quick promotions etc.
ESOP’s: Companies recently started stimulating the employees by offering stock ownership
to the employees through their Employees Stock Ownership Programmes (ESOPs)
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3. SELECTION: It is the process by which a firm uses specific instruments to choose from
a pool of applicants a person or persons most likely to succeed in the job(s), given
management goals and legal requirements.
Definition of Selection: Process of differentiating
“Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.”
Definition: Recruitment (hiring) is a core function of human resource management.

Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs (either permanent or temporary) within an organization.
The classic trio of selection techniques
• Application forms
• Interviews
• References
PROCESS / STEPS IN SELECTION
1. Preliminary Interview : The purpose of preliminary interviews is basically to
eliminate unqualified applications based on information supplied in application
forms. The basic objective is to reject misfits. On the other hands preliminary
interviews is often called a courtesy interview and is a good public relations
exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for
tests.There are various types of tests conducted depending upon the jobs and
the company. These tests can be Aptitude Tests, Personality Tests, and Ability
Tests and are conducted to judge how well an individual can perform tasks
related to the job. Besides this there are some other tests also like Interest Tests
(activity preferences), Graphology Test (Handwriting), Medical Tests,
Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview.
Here interview is a formal and in-depth conversation between applicant’s
acceptability. It is considered to be an excellent selection device. Interviews can
be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be
Structured and Unstructured interviews, Behavioral Interviews, Stress
Interviews.
4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference
checks can be through formal letters, telephone conversations. However it is
merely a formality and selections decisions are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is
the selection decision is to be made. The final decision has to be made out of
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applicants who have passed preliminary interviews, tests, final interviews and
reference checks. The views of line managers are considered generally because
it is the line manager who is responsible for the performance of the new
employee.
6. Physical Examination: After the selection decision is made, the candidate is
required to undergo a physical fitness test. A job offer is often contingent upon
the candidate passing the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who
have crossed all the previous hurdles. It is made by way of letter of appointment.
8. Final Selection
DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

Recruitment Selection
1. Recruitment refers to the process of 1. Selection is concerned with picking
identifying and encouraging up the right candidates from a pool
prospective employees to apply for of applicants.
jobs. 2. Selection on the other hand is
2. Recruitment is said to be positive in negative in its application in as
its approach as it seeks to attract much as it seeks to eliminate as
as many candidates as possible. many unqualified applicants as
possible in order to identify the right
candidates.
4. Induction & Orientation:

In Human resource management, the term induction can be defined as the introduction of
the newcomer to their job. It is not exactly same as an orientation, which provides basic
information about the employer organisation to the fresher.
Induction and Orientation are the two programs designed to provide new joined with the
information they require to function comfortably and efficiently in the organisation.
As the programs take place in the initial days, when the new hires join the organisation, it is
quite hard for people, to differentiate the two. However, there exist a fine line of differences
between induction and orientation, which is described in this article in a detailed manner.
Definition of Induction
Welcoming new hire to the company is induction. It is a well-planned program to socialise
the new joinee with the co-workers and the workplace. The term induction is derived from
a Latin term ‘inducere’ which refers ‘to bring or introduce’. In this process, a person is
formally admitted to the company as an employee, to take charge of a particular post.
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In short, it is a process of introducing an employee that takes place on the day when he
joins the organisation and provided with basic information needed to adjust as soon as
possible in the new organisation to gain maximum efficiency in the minimum time. The
process helps in making a positive first impression on the new recruits that they belong to
the company.
Under this process, the employee is made aware of the organisational hierarchy and a
review is given in the firm’s history. The overview is related to the company’s mission,
vision, values, policies, norms, history of the employer, clients and partners, dress code and
so on.
Definition of Orientation
Orientation is a process of helping the new entrant, to gel up in the organisation, easily and
quickly. In this process, a practical overview of the organisation is given, in which the new
joinee is introduced to different people working in the organisation, to make him feel ‘at
home’ in the new environment. Companies spend a few weeks or even months on the
orientation of the new recruits.
The objective of the program is to remove the anxiety and fear from the minds of the new
hires. It is quite a known fact that employees feel anxious when the first join an
organisation, they worry about how they will be able to perform the new job. Many
employees feel inadequate because they compare themselves with more experienced
employees. The orientation program aims at reducing the anxiety of new employees by
giving them the necessary information regarding job environment, by introducing them to
other employees.
Some common topics included in the employee orientation program are:
Organizational Issues: Probationary period, Disciplinary regulation, Layout of physical

facilities, Company policies and rules, etc.
Employee Benefits: Pay scale and pay days, Retirement program, Counseling, Vacations and
holidays, etc.
Introduction To: Supervisor, co-workers, team leader, manager, etc.
Job Duties: Job location, job objectives, job safety requirements, an overview of the job, etc.
Key Differences Between Induction and Orientation

The difference between induction and orientation can be drawn clearly on the following
grounds:
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Induction is a process takes place to welcome newcomer to the organisation, to make them
ready for their job. A process which involves the assimilation of new joinee into the
organisation to rehabilitate him at the new workplace and provided with basic information
about the company.
Induction involves the planned introduction of the employee with the organisation.
Conversely, Orientation is the integration of the employee in the organisation.
Induction is a short term process, whereas orientation lasts for a longer period.
Induction is done at the introductory stage, which is then followed by the orientation.
Induction is in the form detailed presentation or brochure of the company’s rules, policies
and employee benefits are provided. On the other hand, orientation includes the
interaction of employee to different people of the organisation.
Conclusion
The induction and orientation program may differ from organisation to organisation, but
their whole-sole aim is just to facilitate smooth rehabilitation of the employee into the new
organisation. The program helps to build up trust, confidence, morale and a sense of
belongingness in employees towards the organisation. So that, he will give his best to the
organisation.
5. Training & Development:

▪ Training - Designed to provide learners with the knowledge and skills needed for
their present jobs – formal and informal
▪ Development - Involves learning that goes beyond today's job – more long-term
focus
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The Training and Development (T&D) Process:
Methods of Training:
There are seve ral T&D methods a vaila ble. The use of a p a rt icula r me t hod
de pen ds whi ch me t hod accomplishes t he training needs and objectives.
Training methods can be classified into two categories:
I. On-the-Job Methods
This refers to the methods of training in which a person learns a job by
actually doing/performing it. A person works on a job and learns and develops
expertise at the same time.
1. Understudy
In this the employee is trained by his or her supervisor. The trainee is
attached with his or her senior and called understudy or assistant. For
example, a future manager might spend few months as assistant to the present
manager.
2. Job rotation
This refers to shifting/movement of an employee from one job to another on
regular intervals.
3. Special projects
The trainees' may ask to work on special projects related with departmental
objectives. By this, the trainees will acquire the knowledge of the assigned work
and also learn how to work with others.
4. Experience
It refers to learning by doing. This is one of the oldest methods of on-the-job training.
Although this is very effective method but it also very time-consuming and
wasteful. Thus it should be followed by other training methods.
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5. Committee assignment
In this, the trainees become members of a committee. The c o m m i t t e e i s
a s s i g n e d a p r o b l e m t o d i s c u s s a n d m a k e recommendations.
6. Coaching
In this, the supervisor or the superior acts as a guide and instructor of the
trainee. This involves extensive demonstration and continuous critical evaluation and
correction.
II. Off-the-Job Methods
These methods require trainees to leave their workplace and concentrate their entire time
towards the training objectives. These days off-the-job training methods have become
popular due to limitations of the on-the-job training methods such as facilities and
environment, lack of group discussion and full participation among the trainees from
different disciplines, etc. In the off-thejob methods, the development of trainees is the
primary task rest everything is secondary. Following are the main off-the-job training
methods:
1. Special courses and lectures
These are the most traditional and even famous today, method of developing personnel.
Special courses and lectures are either designed by the company itself or by the
management/professional schools. Companies then sponsor their trainees to attend these
courses or lectures. These are the quick and most simple ways to provide knowledge to a
large group of trainees.
2. Conferences and seminars
In this, the participants are required to pool their thoughts, ideas, viewpoints, suggestions
and recommendations. By attending conferences and seminars, trainees try to look at a
problem from different angles as the participants are normally from different fields and
sectors.
3. Selected reading
This is the self-improvement training technique. The persons acquire knowledge and
awareness by reading various trade journals and magazines. Most of the companies have
their own libraries. The employees become the members of the professional associations to
keep abreast of latest developments in their respective fields.
4. Case study method
This technique was developed by Harvard Business School, U.S.A. It is used as a supplement
to lecture method. A case is a written record of a real business situation/problem faced by
a company. The case is provided to the trainees for discussion and analysis. Identification
and diagnose of the problem is the aim in case study method. Alternate courses of action
are suggested from participants.
5. Programmed instruction/learning
This is step-by-step self-learning method where the medium may be a textbook, computer
or the internet. This is a systematic method for teaching job skills involving presenting
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questions or facts, allowing the person to respond and giving the learner immediate
feedback on the accuracy of his or her answers."
6. Brainstorming
This is creativity-training technique, it helps people to solve problems in a new and
different way. In this technique, the trainees are given the opportunity to generate ideas
openly and without any fear of judgement. Criticism of any idea is not allowed so as to
reduce inhibiting forces. Once a lot of ideas are generated then they are evaluated for their
cost and feasibility.
7. Role-playing
In this method, the trainees are assigned a role, which they have to play in an artificially
created situation. For example, a trainee is asked to play the role of a trade union leader
and another trainee is required to perform the role of a HR manager. This technique results
in better understanding of each other's situation by putting foot in other's shoes.
8. Vestibule schools
Large organisations frequently provide what are described as vestibule schools a
preliminary to actual shop experience. As far as possible, shop conditions are duplicated,
but instruction, not output is major objective." A vestibule school is operated as a
specialised endeavor by the personnel department. This training is required when the
amount of training that has to be done exceeds the capacity of the line supervisor; a portion
of training is evolved from the line and assigned to staff through a vestibule school." The
advantage of a vestibule school is specialisation.
9. Apprenticeship training
This training approach began in the Middle Ages when those who wanted to learn trade
skill bound themselves to a master craftsman and worked under his guidance.
Apprenticeship training is a structured process by which people become skilled workers
through a combination of classroom instruction and on-the-job training.
10. In-basket exercise
In this technique, the trainees are provided background information on a simulated firm
and its products, and key personnel. After this, the trainees are provided with in-basket of
memos, letters, reports, requests and other documents related with the firm. The trainee
must make sense out of this mass of paperwork and prepare memos, make notes and
delegate tasks within a limited time period."
11. Business games
Business games involve teams of trainees. The teams discuss and analyse the problem and
arrive at decisions. Generally, issues related with inventories, sales, R&D, production
process, etc. are taken up for consideration.
12. Behaviour modeling
This is structured approach to teach specific supervisory skill. This is based on the social
learning theory in which the trainee is provided with a specific model of behaviour and is
informed in advance of the consequences of engaging in that type of behaviour.
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13. Sensitivity (T-group) training

In this type of training, a small group of trainees consisting of 10 to 12 persons is formed
which meets in an unstructured situation. There is no set agenda or schedule or plan. The
main objectives are more openness with each other, increased listening skills, trust,
support, tolerance and concern for others. The trainers serve a catalytic role. The group
meets in isolation without any formal agenda. There is great focus on inter-personal
behaviour. And, the trainer provides honest but supportive feedback to members on how
they interacted with one another.
14. Multiple management
This technique of training was first introduced by McCormick, President of McCormick &
co. of Baltimore in 1932. He gave the idea of establishing a junior board of directors.
Authority is given to the junior board members to discuss any problem that could be
discuss in senior board and give recommendations to the senior board. Innovative and
productive ideas became available for senior board.
6. Wage & Salary Administration:

A process of fixing wage/salary for different jobs in the organization through job
evaluation.
• Methods of Wage Fixation:
• Minimum Wage(Needs)
• Real Wage(Past/Present)
• Fair Wage(Comparison)
• Statutory Wage(Rule)
• Standard Wage(Common)
Salary fixation methods:
• Comparative Organization pay
• Ability pay
• Cost of living pay
• Collective bargaining pay
• Govt. Legislation pay
• Productivity pay
• Competent pay
• Field Job and Market Pay
7. Job Evaluation & Merit Rating:

Job Evaluation:
Systematic analysis & classification of a job on the basis of the varying factors which
it demands from the workers, is known as Job evaluation. Jobs are of different types.
Physical strength is required by one group of job whereas second group requires brain;
17 | P a g e
third group may require education, skill & experience, on the other hand, brain, education,
skill & experience may be required by the fourth group & so on. Job evaluation, in other
words, means classification of jobs into different grades on the basis of their main
characteristics so that the merit of each job in terms of work value can be determined.
Procedure for Job Evaluation:
Evaluation is done in the following manner, under the points value method:-
1. A number of points are allotted to each job.
2. The factors required for performing a job are considered.
3. The allotted points are given to the respective factors required by the job.
4. Rank is decided by the total of the points which have been scored by the job.
The rank of one job will be higher than the other if the points scored by the former
job are higher than the points scored by the later. If there are two jobs of completely
different character, but each of them scored the same number of points, they may have the
same rank. Job evaluation is connected with the ratings assigned to the jobs on the basis of
their characteristics & not with the ratings of the workers by whom jobs are being
performed.
Grading method & ranking method are other two methods of job evaluation.
Under the grading method, on the basis of importance, a number of grades like
'unskilled', 'semi-skilled', 'highly skilled', 'administrative', 'supervisory' etc. are fixed.
According to the requirements, review & placement of each job in one of the grades is done.
For each job, a pay scale is also fixed by the committee for the purpose.
Under the ranking method, according to the requirements & responsibility, jobs are
graded, from below upward. Valuation of each job in terms of other jobs is done & on the
basis of rates of wages prevailing in the locality, a wage rate is fixed.
Advantages of Job Evaluation:

1. Fixation of proper wage for the proper job is helped.
2. Selection, training & promotion of workers is facilitated.
3. Detection of anomalies in pay-structure can be done by a scatter diagram by putting
actual wages against points secured by different jobs.
4. On the basis of job evaluation, justice is given to the workers in respect of wage
rates fixation.
5. Management gets help from job evaluation for allocation of personnel to different
jobs.
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8. PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the individual with respect to his
or her performance on the job and his or her potential for development.
Objectives:
1. Training and development
2. Identification of potential
3. Promotion decision
4. Compensation administration
5. Work force planning
6. Validation of selection procedure
Process:
Step-1: Setting performance standards
Step-2: Communicating standards set to the employee
Step-3: Measuring performance
Step-4: Comparing performance with standard
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Step-5: Discussing result

Step-6: Collective action
Step-7: Implementation and review
Methods:
Traditional Methods:
Ranking Method:
It is the oldest and simplest formal systematic method of performance appraisal in which
employee is compared with all others for the purpose of placing order of worth. The
employees are ranked from the highest to the lowest or from the best to the worst.
ADVERTISEMENTS:
In doing this the employee who is the highest on the characteristic being measured and
also the one who is L lowest, are indicated. Then, the next highest and the next lowest
between next highest and lowest until all the employees to be rated have been ranked.
Thus, if there are ten employees to be appraised, there will be ten ranks from 1 to 10.
However, the greatest limitations of this appraisal method are that:
(i) It does not tell that how much better or worse one is than another,
(ii) The task of ranking individuals is difficult when a large number of employees are rated,
and
(iii) It is very difficult to compare one individual with others having varying behavioural
traits. To remedy these defects, the paired comparison method of performance appraisal
has been evolved.
Paired Comparison:
In this method, each employee is compared with other employees on one- on one basis,
usually based on one trait only. The rater is provided with a bunch of slips each coining pair
of names, the rater puts a tick mark against the employee whom he insiders the better of
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the two. The number of times this employee is compared as better with others determines
his or her final ranking.
The number of possible pairs for a given number of employees is ascertained by the
following formula:
N (N-1)/2
ADVERTISEMENTS:
Where N = the total number of employees to be evaluated. Let this be exemplified with an
imaginary example.
If the following five teachers have to be evaluated by the Vice Chanceller of a University:
(K), Mohapatra (M Raul (R), Venkat (V), and Barman (B), the above formula gives 5 (5 -1) /
2 or 10 pairs.
These are:
Thus, the pairs so ascertained give the maximum possible permutations and combinations.
The number of times a worker is considered better makes his/her score. Such scores are
determined for each worker and he/she is ranked according to his/her score. One obvious
disadvantage of this method is that the method can become unwieldy when large numbers
of employees are being compared.
Grading Method:
In this method, certain categories of worth are established in advance and carefully
defined. There can be three categories established for employees: outstanding, satisfactory
and unsatisfactory. There can be more than three grades. Employee performance is
compared with grade definitions. The employee is, then, allocated to the grade that best
describes his or her performance.
Such type of grading is done is Semester pattern of examinations and in the selection of a
candidate in the public service sector. One of the major drawbacks of this method is that
the rater may rate most of the employees on the higher side of their performance.
Forced Distribution Method:
This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale. The method assumes that employees’ performance
level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is
useful for rating a large number of employees’ job performance and promo ability. It tends
to eliminate or reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance of
employees in organisations. It suffer from the drawback that improve similarly, no single
grade would rise in a ratings.
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Forced-Choice Method:
The forced-choice method is developed by J. P. Guilford. It contains a series of groups of
statements, and rater rates how effectively a statement describes each individual being
evaluated. Common method of forced-choice method contains two statements, both
positive and negative.
Examples of positive statements are:
1. Gives good and clear instructions to the subordinates.
2. Can be depended upon to complete any job assigned.
A pair of negative statements may be as follows:
1. Makes promises beyond his limit to keep these.
2. Inclines to favour some employees.
Each statement carries a score or weight, which is not made known to the rater. The human
resource section does rating for all sets of statements— both positive and negative. The
final rating is done on the basis of all sets of statements. Thus, employee rating in this
manner makes the method more objective. The only problem associated with this method
is that the actual constructing of several evaluative statements also called ‘forced-choice
scales’, takes a lot of time and effort.
Check-List Method:
The basic purpose of utilizing check-list method is to ease the evaluation burden upon the
rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’
are prepared by the HR department (see Figure 28-2). The check-list is, then, presented to
the rater to tick appropriate answers relevant to the appraisee. Each question carries a
weight-age in relationship to their importance.
When the check-list is completed, it is sent to the HR department to prepare the final scores
for all appraises based on all questions. While preparing questions an attempt is made to
determine the degree of consistency of the rater by asking the same question twice but in a
different manner (see, numbers 3 and 6 in Figure 28-2).
However, one of the disadvantages of the check-list method is that it is difficult to assemble,
analyse and weigh a number of statements about employee characteristics and
contributions From a cost stand point also, this method may be inefficient particularly if
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there are a number of job categories in the organisation, because a check-list of questions
must be prepared for each category of job. It will involve a lot of money, time and efforts.
Critical Incidents Method:
In this method, the rater focuses his or her attention on those key or critical behaviours
that make the difference between performing a job in a noteworthy manner (effectively or
ineffectively). There are three steps involved in appraising employees using this method.
First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is
prepared. Second, a group of experts then assigns weightage or score to these incidents,
depending upon their degree of desirability to perform a job. Third, finally a check-list
indicating incidents that describe workers as “good” or “bad” is constructed. Then, the
check-list is given to the rater for evaluating the workers.
The basic idea behind this rating is to apprise the workers who can perform their jobs
effectively in critical situations. This is so because most people work alike in normal
situation. The strength of critical incident method is that it focuses on behaviours and, thus,
judge’s performance rather than personalities.
Its drawbacks are to regularly write down the critical incidents which become time-
consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are
positive ones. It is rater’s inference that determines which incidents are critical to job
performance. Hence, the method is subject to all the limitations relating to subjective
judgments.
Graphic Rating Scale Method:

The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal
form is used to appraise each employee.
The form lists traits (such as quality and reliability) and a range of job performance
characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the
basis of points on the continuum. The common practice is to follow five points scale.
The rater rates each appraisee by checking the score that best describes his or her
performance for each trait all assigned values for the traits are then totaled. Figure 28-3
shows a typical graphic rating scale.
This method is good for measuring various job behaviours of an employee. However, it is
also subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of
ambiguity in design- mg the graphic scale results in bias in appraising employee’s
performance.
Essay Method:
Essay method is the simplest one among various appraisal methods available. In this
method, the rater writes a narrative description on an employee’s strengths, weaknesses,
past performance, potential and suggestions for improvement. Its positive point is that it is
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simple in use. It does not require complex formats and extensive/specific training to
complete it.
However, essay method, like other methods, is not free from drawbacks. In the absence of
any prescribed structure, the essays are likely to vary widely in terms of length and
content. And, of course, the quality of appraisal depends more upon rater’s writing skill
than the appraiser’s actual level of performance.
Moreover, because the essays are descriptive, the method provides only qualitative
information about the employee. In the absence of quantitative data, the evaluation suffers
from subjectivity problem. Nonetheless, the essay method is a good start and is beneficial
also if used in conjunction with other appraisal methods.
Field Review Method:
When there is a reason to suspect rater’s biasedness or his or her rating appears to be quite
higher than others, these are neutralised with the help of a review process. The review
process is usually conducted by the personnel officer in the HR department.
The review process involves the following activities:
(a) Identify areas of inter-rater disagreement.
(b) Help the group arrive at a consensus.
(c) Ensure that each rater conceives of the standard similarity.
However, the process is a time-consuming one. The supervisors generally resent what they
consider the staff interference. Hence, the method is not widely used.
Confidential Report:
It is the traditional way of appraising employees mainly in the Government Departments.
Evaluation is made by the immediate boss or supervisor for giving effect to promotion and
transfer. Usually a structured format is devised to collect information on employee’s
strength weakness, intelligence, attitude, character, attendance, discipline, etc. report.
Modern Methods:
Management by Objectives (MBO):
Most of the traditional methods of performance appraisal are subject to the antagonistic
judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a
new concept, namely, management by objectives (MBO) way back in 1954 in his book.
The Practice of management. The concept of MBO as was conceived by Drucker, can be
described as a “process whereby the superior and subordinate managers of an organization
jointly identify its common goals, define each individual’s major areas of responsibility in
terms of results expected of him and use these measures as guides for operating the unit
and assessing the contribution of each its members”.
In other words, stripped to its essentials, MBO requires the manager to goals with each
employee and then periodically discuss his or her progress toward these goals.
In fact, MBO is not only a method of performance evaluation. It is viewed by the Practicing
managers and pedagogues as a philosophy of managerial practice because .t .s a method by
wh.ch managers and subordinates plan, organise, communicate, control and debate.
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An MBO programme consists of four main steps: goal setting, performance standard,
comparison, and periodic review. In goal-setting, goals are set which each individual, s to
attain. The superior and subordinate jointly establish these goals. The goals refer to the
desired outcome to be achieved by each individual employee.
In performance standards, the standards are set for the employees as per the previously
arranged time period. When the employees start performing their jobs, they come to know
what is to be done, what has been done, and what remains to be done.
In the third step the actual level of goals attained are compared with the goals agreed upon.
This enables the evaluator to find out the reasons variation between the actual and
standard performance of the employees. Such a comparison helps devise training needs for
increasing employees’ performance it can also explore the conditions having their bearings
on employees’ performance but over which the employees have no control.
Finally, in the periodic review step, corrective measure is initiated when actual
performance deviates from the slandered established in the first step-goal-setting stage.
Consistent with the MBO philosophy periodic progress reviews are conducted in a
constructive rather than punitive manner.
The purpose of conducting reviews is not to degrade the performer but to aid in his/her
future performance. From a motivational point of view, this would be representative of
McGregor’s theories.
Figure 28.4 present the MBO method of performance appraisal presently used by an
engineering giant i.e., Larsen and Turbro Limited.
Limitation of MBO:
MBO is not a panacea, cure for all organisational problems.
As with other methods, it also suffers from some limitations as catalogued below:
(i) Setting Un-measurable Objectives:
One of the problems MBO suffers from is unclear and un-measurable objectives set for
attainment. An objective such as “will do a better job of training” is useless as it is un-
measurable. Instead, “well have four subordinates promoted during the year” is a clear and
measurable objective.
(ii) Time-consuming:
The activities involved in an MBO programme such as setting goals, measuring progress,
and providing feedback can take a great deal of time.
(iii) Tug of War:
Setting objectives with the subordinates sometimes turns into a tug of war in the sense that
the manager pushes for higher quotas and the subordinates push for lower ones. As such,
goals so set are likely to be unrealistic.
(iv) Lack of Trust:
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MBO is likely to be ineffective in an environment where management has little trust in its
employees. Or say, management makes decisions autocratically and relies heavily on
external controls.
Behaviourally Anchored Rating Scales (BARS):

The problem of judgmental performance evaluation inherent in the traditional methods of
performance evaluation led to some organisations to go for objective evaluation by
developing a technique known as “Behaviourally Anchored Rating Scales (BARS)” around
1960s. BARS are descriptions of various degrees of behaviour with regard to a specific
performance dimension.
It combines the benefits of narratives, critical incidents, and quantified ratings by
anchoring a quantified scale with specific behavioural examples of good or poor
performance. The proponents of BARS claim that it offers better and more equitable
appraisals than do the other techniques of performance appraisal we discussed so far.
Developing BARS typically involves five steps:
1. Generating Critical Incidents:
Critical incidents (or say, behaviours) are those which are essential for the performance of
the job effectively Persons who are knowledgeable of the job in question (jobholders
and/or supervisors) are asked to describe specific critical incidents of effective and
ineffective performance. These critical incidents may be described in a few short sentences
or phrases using the terminology.
2. Developing Performance Dimensions:
The critical incidents are then clustered into a smaller set of performance dimensions,
usually five to ten. Each cluster, or say, dimension is then defined.
3. Reallocating Incidents:
Various critical incidents are reallocated dimensions by another group of people who also
know the job in question. Various critical incidents so reallocated to original dimensions
are clustered into various categories, with each cluster showing similar critical incidents.
Those critical incidents are retained which meet 50 to 80% of agreement with the cluster
as classified in step 2.
4. Scaling Incidents:
The same second group as in step 3 rates the behaviour described in each incident in terms
of effectiveness or ineffectiveness on the appropriate dimension by using seven to nine
points scale. Then, average effectiveness ratings for each incident are determined to decide
which incidents will be included in the final anchored scales.
5. Developing Final BARS Instrument:
A subset of the incidents (usually six or seven per cluster) is used as a behavioural anchor
for the final performance dimensions. Finally, a BARS instrument with vertical scales is
drawn to be used for performance appraisal, as in Figure 27-5.
26 | P a g e
How BARS is developed can be exemplified with an example of grocery checkout clerks
working in a large grocery chain.
A number of critical incidents involved in checking out of grocery can be clustered
into seven performance dimensions:
1. Knowledge and Judgment
2. Conscientiousness
3. Skill in Human Relations
4. Skill in Operation of Register
5. Skill in Bagging
6. Organisational Ability of Check stand Work
7. Skill in Monetary Transactions
8. Observational Ability
Now, a BARS for one of these performance dimensions, namely, “knowledge and judgment”
can be developed, as in Figure 28-5. Notice how the typical BARS is behaviourally anchored
with specific critical incidents.
BARS method of performance appraisal is considered better than the traditional ones
because it provides advantages like a more accurate gauge, clearer standards, better
feedback, and consistency in evaluation. However, BARS is not free from limitations.
The research on BARS indicates that it too suffers from distortions inherent in most rating
scales. The research study concluded that “it is clear that research on BARS to date does not
support the high promise regarding scale independence In short, while BARS may
outperform conventional rating techniques, it is clear that they are not a panacea for
obtaining high interrater reliability”
Assessment Centres:
The introduction of the concept of assessment centres as a method of performance method
is traced back in 1930s in the Germany used to appraise its army officers. The concept
gradually spread to the US and the UK in 1940s and to the Britain in 1960s.
The concept, then, traversed from the army to business arena during 1960s. The concept of
assessment centre is, of course, of a recent origin in India. In India, Crompton Greaves,
Eicher, Hindustan Lever and Modi Xerox have adopted this technique of performance
evaluation.
In business field, assessment centres are mainly used for evaluating executive or
supervisory potential. By definition, an assessment centre is a central location where
managers come together to participate in well-designed simulated exercises. They are
assessed by senior managers supplemented by the psychologists and the HR specialists for
2-3 days.
Assessee is asked to participate in in-basket exercises, work groups, simulations, and role
playing which are essential for successful performance of actual job. Having recorded the
assessee’s behaviour the raters meet to discuss their pooled information and observations
27 | P a g e
and, based on it, they give their assessment about the assesee. At the end of the process,
feedback in terms of strengths and weaknesses is also provided to the assesees.
The distinct advantages the assessment centres provide include more accurate evaluation,
minimum biasedness, right selection and promotion of executives, and so on. Nonetheless,
the technique of assessment centres is also plagued by certain limitations and problems.
The technique is relatively costly and time consuming, causes suffocation to the solid
performers, discourages to the poor performers (rejected), breeds unhealthy competition
among the assessees, and bears adverse effects on those not selected for assessment.
360 – Degree Appraisal:
Yet another method used to appraise the employee’s performance is 360 – degree
appraisal. This method was first developed and formally used by General Electric Company
of USA in 1992. Then, it travelled to other countries including India. In India, companies
like Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax, Thomas Cook
etc., have been using this method for appraising the performance of their employees. This
feedback based method is generally used for ascertaining training and development
requirements, rather than for pay increases.
Under 360 – degree appraisal, performance information such as employee’s skills, abilities
and behaviours, is collected “all around” an employee, i.e., from his/her supervisors,
subordinates, peers and even customers and clients.
In other worlds, in 360-degree feedback appraisal system, an employee is appraised by his
supervisor, subordinates, peers, and customers with whom he interacts in the course of his
job performance. All these appraisers provide information or feedback on an employee by
completing survey questionnaires designed for this purpose.
All information so gathered is then compiled through the computerized system to prepare
individualized reports. These reports are presented to me employees being rated. They
then meet me appraiser—be it one’s superior, subordinates or peers—and share the
information they feel as pertinent and useful for developing a self-improvement plan.
In 360 – degree feedback, performance appraisal being based on feedback “all around”, an
employee is likely to be more correct and realistic. Nonetheless, like other traditional
methods, this method is also subject to suffer from the subjectivity on the part of the
appraiser. For example, while supervisor may penalise the employee by providing negative
feedback, a peer, being influenced by ‘give and take feeling’ may give a rave review on
his/her colleague.
Cost Accounting Method:
This method evaluates an employee’s performance from the monetary benefits the
employee yields to his/her organisation. This is ascertained by establishing a relationship
between the costs involved in retaining the employee, and the benefits an organisation
derives from Him/her.
While evaluating an employee’s performance under this method, the following
factors are also taken into consideration:
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1. Unit wise average value of production or service.

2. Quality of product produced or service rendered.
3. Overhead cost incurred.
4. Accidents, damages, errors, spoilage, wastage caused through unusual wear and tear.
5. Human relationship with others.
6. Cost of the time supervisor spent in appraising the employee.
9. GH & Welfare Administration
As per Industrial Disputes Act, 1947
A complaint from the employee, when ignored, takes the for of grievance in all levels. Steps
in Handling Grievance:
Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an
employee experiences about his job and it’s nature, about the management policies and
procedures. It must be expressed by the employee and brought to the notice of the
management and the organization.
Grievances take the form of collective disputes when they are not resolved. Also they will
then lower the morale and efficiency of the employees. Unattended grievances result in
frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc. In
short, grievance arises when employees’ expectations are not fulfilled from the
organization as a result of which a feeling of discontentment and dissatisfaction arises. This
dissatisfaction must crop up from employment issues and not from personal issues.
Grievance may result from the following factors-
Improper working conditions such as strict production standards, unsafe workplace, bad
relation with managers, etc.
Irrational management policies such as overtime, transfers, demotions, inappropriate
salary structure, etc.
Violation of organizational rules and practices
The manager should immediately identify all grievances and must take appropriate steps
to eliminate the causes of such grievances so that the employees remain loyal and
committed to their work. Effective grievance management is an essential part of personnel
management. The managers should adopt the following approach to manage grievance
effectively-
Quick action- As soon as the grievance arises, it should be identified and resolved. Training
must be given to the managers to effectively and timely manage a grievance. This will lower
the detrimental effects of grievance on the employees and their performance.
29 | P a g e
Acknowledging grievance- The manager must acknowledge the grievance put forward by
the employee as manifestation of true and real feelings of the employees.
Acknowledgement by the manager implies that the manager is eager to look into the
complaint impartially and without any bias. This will create a conducive work environment
with instances of grievance reduced.
Gathering facts- The managers should gather appropriate and sufficient facts explaining the
grievance’s nature. A record of such facts must be maintained so that these can be used in
later stage of grievance redressal.
Examining the causes of grievance- The actual cause of grievance should be identified.
Accordingly remedial actions should be taken to prevent repetition of the grievance.
Decisioning- After identifying the causes of grievance, alternative course of actions should
be thought of to manage the grievance. The effect of each course of action on the existing
and future management policies and procedure should be analyzed and accordingly
decision should be taken by the manager.
Execution and review- The manager should execute the decision quickly, ignoring the fact,
that it may or may not hurt the employees concerned. After implementing the decision, a
follow-up must be there to ensure that the grievance has been resolved completely and
adequately.
An effective grievance procedure ensures an amiable work environment because it
redresses the grievance to mutual satisfaction of both the employees and the managers. It
also helps the management to frame policies and procedures acceptable to the employees.
It becomes an effective medium for the employees to express t feelings, discontent and
dissatisfaction openly and formally.
10. Employee Exit Process:

The purpose of an employee exit policy is to have a process in place when an employee is
leaving your employment (resignation, retirement, end of contract etc) When an employee
resigns from their position, they should submit a written letter of resignation to their
immediate supervisor based on what their notice period is. This could be stated in the
employee’s letter of engagement or (if no letter exists) be linked to the National
Employment Standards notice table…. During the employee’s notice period; they must
continue to assume their normal responsibilities and should assist with a handover to the
existing team or their replacement if in place.
Conduct and Exit Interview
An exit interview is often overlooked but is an extremely valuable organizational

effectiveness tool. The purpose of exit interviews is to understand the employee’s
perceptions and experiences and get feedback about the job the employee held, their work
environment, and your place.
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***
***
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Management Science Notes by N.Aruna Kumari, Asst. Prof.

Humanities & Sciences

CHAPTER-2: HUMAN RESOURCE MANAGEMENT

Concepts of HRM;Basic functions of HR manager - human resource planning (definition;

Human Resource Management Functions:

Human Resource Planning:

 To appraise the surplus or shortage of human resources and take actions

2. RECRUITMENT: The Process by which a Job Vacancy is identified and potential

Steps in Recruitment Process:

The modern sources of Recruitment are:

Scouting: Scouting means sending the representation of the organizations to various

Definition: Recruitment (hiring) is a core function of human resource management.

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

4. Induction & Orientation:

Some common topics included in the employee orientation program are:

Organizational Issues: Probationary period, Disciplinary regulation, Layout of physical

Key Differences Between Induction and Orientation

5. Training & Development:

The Training and Development (T&D) Process:

13. Sensitivity (T-group) training

6. Wage & Salary Administration:

7. Job Evaluation & Merit Rating:

Procedure for Job Evaluation:

Advantages of Job Evaluation:

Online Live Tutor Job Evaluation, Merit Rating:

Online Procedure for Job Evaluation, Advantages of Job Evaluation Help:

Step-5: Discussing result

Graphic Rating Scale Method:

Behaviourally Anchored Rating Scales (BARS):

1. Unit wise average value of production or service.

Grievance may result from the following factors-

10. Employee Exit Process:

Conduct and Exit Interview

An exit interview is often overlooked but is an extremely valuable organizational

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