Human Resource Management

Human Resource Management (BEBA55A) UNIT-5
Human Resource Management – Unit V

Transfer - Promotion and termination of services
Introduction
Internal mobility is the process of movement of employees which takes place between the jobs
in sections, departments or divisions of the organization. Internal Mobility is necessary to
match the employee’s skill and requirements with the requirements of the job and those of the
organization continuously. The objectives of internal mobility are:
 To improve organizational effectiveness

 To eliminate structural defects and unwanted positions
 To improve employee effectiveness by putting his knowledge, skills and abilities to
better use
 To adjust to changing business operations
 To ensure discipline
 To correct wrong placements and job assignments
Internal mobility can take any or more of the form of promotion, demotion, transfer
Promotion
Promotion is an upward movement of employee in the organization to another job, higher in

organisation’s hierarchy. In the new job, the employee finds a change in salary, status,
responsibility and grade of job or designation. As a whole, the organization perceives the
staffing of vacancy worth more than the employee’s present position. In contrast to promotion
when the salary of an employee is increased without a corresponding change in the job-grade,
it is known as ‘upgrading’. But when promotion does not result in change in pay, it is called
‘dry promotion’. Promotion is a method of internal mobility.
Jawahar Science College, Block-14, Neyveli. Page 1 of 22

Principles of Promotion
Promotion is a double edged weapon. If handled carefully, it contributes to employee

satisfaction and motivation. If mishandled, it leads to discontentment and frustration among
the employees. It is the responsibility of the HR manager to lay down a sound promotional
policy and ensure its implementation.
Policy of promotion
The HRM must make it clear whether to fill up higher positions by internal promotions or
recruit people from outside. Generally speaking top positions in an organisation are filled
through external recruitment. The lower positions are filled by promotions from within.
When it has been decided to fill up higher positions with promotions, a further decision on
determining the basis of promotion should be made by HRM. The basis of promotion may be
seniority or merit or both.
One most important point regarding the policy of promotion is whether to promote employees
against vacancies or non-vacancies. In many organizations promotions are done on a non-
vacancy basis after they complete a minimum period of service. Such promotions are time
bound and not based on vacancies or merit. The other practice is to link promotions to
vacancies. Sometimes these vacancies are created to avoid frustration among the aspirants for
promotion.
A promotion should be preceded by a job analysis and performance appraisal. A job analysis
is important to know what the job demands from the employee and performance appraisal will
enable the management to know whether the employee in question can match the requirements
of the job.
The promotion policy should be discussed with the labour unions and their acceptance must be
obtained in the form of an agreement.
When promotions are made on the basis of competence, openings for promotion should be
displayed at several places to enable interested people to apply.

Bases of promotion
Organisations adopt different bases of promotion depending on their nature, size, managerial
policy etc. The well-established bases of promotion are seniority and merit.
Seniority based promotion

If seniority is the bases for promotion, an employee with the longest period of service will get
promoted, irrespective of whether he is competent or not.
Advantages
 It is easy to administer.
 It is easy to measure the length of service and judge the seniority.
 With the base of seniority there is no scope for favouritism, discrimination and
subjective judgement.
 By seniority everyone is sure of getting promotion one day.
 Subordinates are more willing to work under an older boss who has given many years
of service to the company.
Disadvantages
 The learning capabilities of senior (older) employees may diminish.
 It de-motivates the younger and more competent employees and it results in more
employee turnover.
 The organisation is deprived of external talent which is very necessary due to
technological advancements and multi-culture organisation.
 Judging the seniority is highly difficult as the problems like job seniority, company
seniority, regional seniority, service in different organizations, trainee experience,
research experience etc., will crop up.
Merit or competence based promotion

Merit based promotion occur when an employee is promoted because of superior performance
in the current job. Merit means an individual’s knowledge, skills, abilities as measured from
his educational qualifications, experience, training, and past employment record.
Advantages
 Promotion by merit is a reward to encourage those employees who make a successful
effort to increase their knowledge or skill and who maintain a high level of productivity.
 It helps the employer to focus on talented employees recognize their talent and reward
their contributions.  Efficiency is encouraged, recognized and rewarded.
 Competent people are retained as better prospects are open to them.
 It inspires other employees to improve their standards of performance through active
participation in all activities and putting in more efforts.
Disadvantages
 It is not easy to measure merit. Personal prejudices, biases, and union pressures may
come in the way of promoting the best performer.

 When young employees get ahead of senior employees in the organization this creates
frustration among senior employees .They feel insecure and may also quit the
organization.
 The past performance may not guarantee future success of an employee.
 Loyalty and length of service is not properly rewarded
Advantages of Promotion Plan
 It provides an opportunity to the present employees to move into jobs that provide
greater personal satisfaction and prestige.
 It offers opportunities to management to provide recognition and incentives to the better
employees, to correct initial mistakes in appointments and to ‘freeze’ inefficient
personnel.
 It generates within an organization beneficial pressures on work performance and
desired behaviour of all its members.
 It serves as an orderly, logical and prompt source of recruitment for management to fill
vacancies as they arise.
 Promotion fulfils the long cherished desires in the lives of employees.
Disadvantages of Promotion Plan

 Promotion promotes “inbreeding” in which the company will not have new blood and
new thinking. Old habits and ideas are perpetuated.
 The system becomes stagnant, repetitious and very conventional.
 The newer employees are introduced at places where they are having little influence.
Demotion
Demotion is the reverse of promotion. It is the downward movement of an employee in
hierarchy with lower status, salary and decreased responsibilities. It is generally used as a
punitive measure for incompetence or a preliminary step to dismissal. It is a downgrading
process where the employees suffer considerable emotional and financial loss. Causes for
demotion
 The employee may be unable to meet the challenges posed by a new job.
 He may have low administrative skills.
 Due to poor business conditions and continuous losses, a firm may decide to layoff
some and to downgrade others.
 It is sometimes used as a disciplinary tool against offending employees.
Transfer
A transfer implies a lateral movement of an employee in the hierarchy of positions with the
same pay and status. Transfers may be either company initiated or employee initiated. In fact,
a transfer is a change in job assignment. It may involve a promotion, demotion or no change at
all in status and responsibility. Transfers from one job to another may be either temporary or
permanent. Temporary transfers may be due to
 temporary absenteeism
 shifts in the workload

 vacations
Permanent transfers may be due to
 Shifts in the workload
 Vacancies requiring the special skill of the transferred employee
 ill-health of the employee
Transfer requests might come from the worker himself, from his superior, from the head of
another department or may be made necessary by changes in the volume of trading activities.
When the transfer request comes from the employee himself, it is because he does not like the
work or the place of work or the co-workers.
Requests for transfers should be favourably considered especially when it comes from an
employee. An unsatisfied employee is more of a liability than an asset. It is true that no
company can comply with all requests for transfers.
Types of Transfers
Different types of transfer in the jobs are listed below.

Production transfer
Transfers from jobs in which labour requirements are declining to jobs in which they are
increasing (through resignation or otherwise) are called production transfer.
This type of transfer is made to avoid lay-off of efficient employees by providing them with
alternative positions in the same organisation.
Replacement transfer
These are transfers in which a long- service employee is transferred to a similar job where he
replaces or “bumps” an employee with shorter service. This type of transfer is made when all
operations are declining but management wants to retain the long-service employee as long as
possible.
Versatility transfer
The versatility transfer (better called ‘rotation’) is for the purpose of providing management
with a more versatile group of employees. This type of transfer will increase the versatility of
the employee by shifting him from one job to another. The employee gets an opportunity for
varied job experience. This helps the employee through job enlargement.
Remedial transfer
These transfers are made to remedy the situation. Remedial transfers provide management with
a procedure whereby an unsatisfactory placement can be corrected. Initial placement might be
faulty or the type of job might not suit his health. In such cases the worker would benefit by
transfer to a different kind of work.
Benefits of transfers
 Improve employee skills
 Remedy faulty placement decisions
 Prepare the employee for challenging future
 Improve employee satisfaction
 Improve employee-employer relations.
Problems with transfers
 Inconvenient to employees.
 Employees may or may not fit in the new location
 Shifting of experienced hands may affect productivity
 Discriminatory transfer may affect employee satisfaction.

CAREER MANAGEMENT
Career development is an organized approach used to match employee goals with the business
needs of the agency in support of workforce development initiatives. The purpose of career
development is to:
 Enhance each employee‘s current job performance.
 Enable individuals to take advantage of future job opportunities.
 Fulfil agencies‘ goals for a dynamic and effective workforce.
Career development involves managing your career either within or between organizations. It
also includes learning new skills, and making improvements to help you in your career. Career
development is an ongoing, lifelong process to help you learn and achieve more in your career.
Whether you are looking at making a career change, or moving up within a company, planning
your own career development will help you succeed. By creating a personal career
development plan, you can set goals and objectives for your own personal career growth. Don‘t
make the mistake of leaving your career development future in the hands of your employer,
hoping that you will get the next promotion or pay raise.
This misconception can lead to job dissatisfaction and resentment. Career planning is a lifelong
process, which includes choosing an occupation, getting a job, growing in our job, possibly
changing careers, and eventually retiring. The Career Planning Site offers coverage of all these
areas. This article will focus on career choice and the process one goes through in selecting an
occupation. This may happen once in our lifetimes, but it is more likely to happen several times
as we first define and then redefine ourselves and our goals.
Managers are responsible for linking the organization‘s needs to employee career goals, and
can assist employees in the career planning process. Human Resources is responsible for
designing career paths and employee development programs that help employees reach their
goals. Each employee is responsible for planning and managing his/her career.
Objective Career Management is the combination of structured planning and the active
management choice of one‘s own professional career. The outcome of successful career
management should include personal fulfilment, work/life balance, goal achievement and
financial assurance. The word career refers to all types of employment ranging from semi-
skilled through skilled, and semi-professional to professional. The term career has often been
restricted to suggest an employment commitment to a single trade skill, profession or business

firm for the entire working life of a person. In recent years, however, career now refers to
changes or modifications in employment during the foreseeable future. There are many
definitions by management scholars of the stages in the managerial process. The following
classification system with minor variations is widely used:
1. Development of overall goals and objectives,

2. Development of a strategy (a general means to accomplish the selected
goals/objectives),
3. Development of the specific means (policies, rules, procedures and activities) to
implement the strategy, and
4. Systematic evaluation of the progress toward the achievement of the selected
goals/objectives to modify the strategy, if necessary.
The career management process begins with setting goals/objectives. A relatively specific
goal/objective must be formulated. This task may be quite difficult when the individual lacks
knowledge of career opportunities and/or is not fully aware of their talents and abilities.
However, the entire career management process is based on the establishment of defined
goals/objectives whether specific or general in nature. Utilizing career assessments may be a
critical step in identifying opportunities and career paths that most resonate with someone.
Career assessments can range from quick and informal like those on CareerBuilder or may be
more in depth like those such as Myers-Briggs and Career Leader supported assessments found
on My Path. Regardless of the ones you use, you will need to evaluate them. Most assessments
found today for free (although good) do not offer an in-depth evaluation.
1. The time horizon for the achievement of the selected goals or objectives- short term,
medium term or long term – will have a major influence on their formulation.
1. Short term goals (one or two years) are usually specific and limited in scope. Short term
goals are easier to formulate. Make sure they are achievable and relate to your longer
term career goals.
2. Intermediate goals (3 to 20 years) tend to be less specific and more open ended than
short term goals. Both intermediate and long term goals are more difficult to formulate
than short term goals because there are so many unknowns about the future.
3. Long term goals (more than 100 years), of course, are the most fluid of all. Lack of life
experience and knowledge about potential opportunities and pitfalls make the
formulation of long term goals/ objectives very difficult. Long range goals/objectives,

however, may be easily modified as additional information is received without a great

loss of career efforts because of experience/knowledge transfer from one career to
another.
4. Making career choices and decisions – the traditional focus of careers interventions.
The changed nature of work means that individuals may now have to revisit this process
more frequently now and in the future, more than in the past.
5. Managing the organizational career – concerns the career management tasks of
individuals within the workplace, such as decision-making, life-stage transitions,
dealing with stress etc.
6. Managing boundary less‘ careers – refers to skills needed by workers whose
employment is beyond the boundaries of a single organization, a work style common
among, for example, artists and designers.
7. Taking control of one‘s personal development – as employers take less responsibility,
employees need to take control of their own development in order to maintain and
enhance their employability.
Career development, as both a field of study and a practical form of training for workers, is
primarily concerned with producing better employees and maximizing employee potential.
Career development programs can help the unemployed find jobs or provide workers with the
skills and tools they need to advance within a government agency, corporation or organization.
Self-Awareness- One of the major objectives of any career development program is a

heightened sense of self-awareness for participants. Employees should be able to identify their
strengths and weaknesses, in order to apply their skills more effectively. Understanding
shortcomings is also useful in teaching employees where to focus efforts toward improvements.
Self-awareness is also related to understanding the difference between real and perceived
career advancement limitations. By examining available opportunities and making an honest
assessment of an employee‘s skills, career development seeks to give every employee a
realistic outlook on the future.
Flexibility- Career development also sets enhanced flexibility as a goal. Employees work in a
changing world and adaptation is an essential skill. This may mean abandoning practices that
have worked in the past, or devoting time to education and new training. Employees who find
themselves unable to adapt in a changing workplace may suffer from decreased productivity
or be unable to compete with workers whose skills are more flexible and easier to apply across
a range of tasks.

Education- Education is among the more straightforward objectives of career development.

Such programs attempt to give employees, or prospective employees, access to information
about job opportunities and options for skills training. Following up with such employees is an
important objective as well, since this gives those who work in career development a way of
measuring the program‘s effectiveness.
Sensitivity to Diversity- Many career development programs make sensitivity to diversity in

the workplace a top priority. With ever-increasing globalization, workers are frequently put
into contact with members of different backgrounds and cultures. Understanding the value of
diverse work habits and viewpoints can prevent this from becoming a point of confusion or
misunderstanding. At the same time, educating workers about the customs and concerns of
others can help prevent social problems or embarrassment in a diverse workplace.
The Career Management Process
Career development and the career planning process include a number of specific steps that
help to identify personal skills and attributes. Finding out how those skills can be utilized in
the job market is accomplished by researching a number of career fields that are of interest to
you and then by gaining experience in those fields and/or speaking to people currently working
in the field. Participating in some form of experiential education will help you to identify if the
field is the right choice for you.
Step #1: Self-Assessment
Evaluating who you are as a person. This involves taking a personal inventory of who you are
and identifying your individual values, interests, skills, and personal qualities. What makes you
tick as a person? You will look at those personal attributes under a microscope and come up
with key qualities you can identify and use in your search for the perfect career. Career
assessments may be required to promote a better understanding of personal attributes and skills.
Contact your Career Services Office at your college to discuss if a career assessment may be
right for you
Self-Assessment Reality Check Goal Setting Action Planning
The Career Management Process
Step #2: Research (Career Exploration)
Obtain an insider‘s perspective about the career field you are considering. Conduct
Informational Interviews in person, phone, or by email. Professionals enjoy sharing their
expertise with people interested in the field. Perform informational interviews with alumni
from your college to gain their perspective of the field and to listen to what they have to say.
This strategy provides first-hand knowledge from someone currently working in the field and
gives you an opportunity to ask about their experiences as well as potential jobs and what one
might expect if just entering the field. Gain experience through internships or by job shadowing
for one to several days to see what a typical work day entails and to gain perspective of what
the environment is like and the typical job responsibilities of someone working in the field.
Research what types of jobs are available in your area of interest by checking out Majors to
Career Converter, The Occupational Outlook Handbook and The Career Guide to Industries.
The Occupational Outlook Handbook offers a wealth of information for those currently just
entering the job market and for those anticipating making a career change.
Step #3: Decision-Making
Once you‘ve made a thorough self-assessment and have done some research of career options,
it‘s time to make a decision. This can be difficult since there may still be many unknowns and
a fear of making the wrong choice. One thing for sure is that although we can do all the
necessary steps to making an informed decision, there is no absolute certainty that we are
unquestioningly making the right decision. This uncertainty is easier for some people than
others but a key point to remember is that you can always learn from any job you have and take
those skills and apply them at your next job.
Step#4: Search (Taking Action)
It‘s now time to look for prospective jobs and/or employers, send out cover letters and resumes,
and begin networking with people in the field. Keep in mind that cover letters and resumes are
designed to make a favourable impression on employers (if done properly) and the interview
process is what will ultimately land you the job. In other words, make sure your cover letter
and resume highlight your skills and strengths based on the employer‘s needs and that you are
fully prepared to knock their socks off at the interview. Take time to research the employer‘s
website prior to the interview, and be prepared to ask thoughtful questions based on your
research.
Step #5: Acceptance
Wow! You‘ve completed all of the steps above and you‘ve been accepted into a new and
exciting or different job. Congratulations! According to the Bureau of Labor Statistics, 64.1%
of people change jobs between 5 and 14 times in their lifetime. Consequently, learning the

skills above will increase your chances of gaining meaningful and satisfactory work as well as
help you to avoid many of the stresses that occur with changing jobs. By recognizing that
change is good (even advantageous), changing jobs can be viewed as a positive experience and
need not be as anxiety provoking as it may initially seem. You will continue the process of
self-assessment, research, decision-making, and job searching in order to make effective and
fulfilling career changes throughout your lifetime
The impact of career development/ succession planning programmes can be seen through the
productivity indicator, engagement surveys and reduction in attrition rate. It is in fact a win-
win situation for all.
Mentoring
Mentoring is the Employee training system under which a senior or more experienced person
(the mentor) is assigned to act as an advisor, counsellor, or guide to a junior or trainee.
The mentor is responsible for providing support to, and feedback on, the person in his or her
charge.
Meaning:
Mentoring is a process of using specially selected and trained individuals to provide guidance,
pragmatic advice, and continuing support that will help the people in their learning and
development process. The best example of a mentor is Mr N. R. Narayan Murthy of Infosys.
Mentoring is a method of helping people acquire skills and knowledge from experienced
managers who are wise in the way of the organization.
Mentors provide people with:
1. Advice in drawing up self-development programmes.
2. Guidance on how to acquire the necessary knowledge and skills to do a new job.
3. Information on corporate culture.
4. Help in the right direction.
5. Coaching in specific skills.
Mentors are a parental figure with whom individuals can discuss their aspirations, and who
will lend a sympathetic ear to their problems.
Definitions:
1. According to David Clutterbuck, ‘mentoring involves primarily listening with empathy,
sharing experience, professional friendship, developing insight through reflection, being a
sounding board, encouraging’.

2. According to Jacobi, ‘mentoring is a one to one helping relationship or nurturing process’.

3. According to Vickie L. Nadolski, ‘mentoring is linking an experienced person (mentor)
with a less experience person (mentee) to help their personal and professional growth’.
Characteristics of Mentoring:
1. Mentoring requires a high degree of mutual trust between the mentor and the mentee.
2. Effective communication is the key to the mentoring programmes.
3. The success of mentoring depends on the availability of the mentor and predictability.
4. It is a systematic process of building a partnership.
5. Self-esteem and confidence is necessary for effective mentoring.
6. Mutual respect between each other is also required.
Types of mentoring:
1. Formal mentoring: Formal mentoring also referred as classic mentoring. This type
of mentoring pairs a senior faculty member with a junior member, usually from the
same department, for a specified period of time.
2. Informal mentoring: Voluntary mentoring relationships that are not assigned and
lack structure about how mentors work with mentees constitute ‘informal mentoring’.
3. Peer mentoring: Members with equal ranks form either the same or different
departments develop supportive networks. They meet regularly to discuss issues and
challenges they are facing as well as share advice, information and strategies.
4. Group or Team mentoring: In group mentoring, senior faculty members serve as

mentors for a group of junior mentees who meet regularly as a team. For example, a
senior member may meet with a group of junior faculty on a monthly basis.
5. Special project mentoring: Here mentor helps to guide mentees for short term
project or task (normally lasting a few weeks to a few months).
6. Reverse mentoring: Here, the roles of traditional mentoring are reversed. A young
employee takes on the role of the mentor while the mentee is an older and often more
experienced employee. This relationship closes the knowledge gap for both parties.

Benefits of mentoring:
The benefits of mentoring process observed in the following areas
a. mentors
b. mentees
c. organization
Benefits for mentors:

The benefits of mentoring for mentors given here as follows;
 Mentoring process strengthens mentor’s active listening skills.
 Mentoring encourages knowledge sharing that increases self-worth (self-value) of
mentor.
 A sense of fulfilment and achievement is established to the mentor with mentoring.
 Mentoring process helps to enhance mentor’s relationship building skills.
 The process of mentoring provides an added sense of responsibility and purpose for
one’s career.
Benefits for Mentees:
The benefits for mentee given here under;
 Skills or competency levels of mentees developed with mentoring process.
 Mentoring improves mentees confidence in their ability.
 Communication skills of mentee will enhanced with process of mentoring.
 With mentoring process, mentee comes to know how to maintain professional
relationship.  Mentee’s network of contacts enhanced.
Benefits for organization:
With mentoring process, an organization will have following benefits;
 The process of mentoring helps an organization to achieve its talent development goals
like succession planning and strong leadership development.
 Mentoring process improves employee retention keeping an employee for a long period
in organization there by reducing turnover rates.
 The training costs get reduced by one to one interaction.
 By mentoring process it is possible to inform everyone throughout the company that
leadership is willing to in its employees.
 Mentoring improves talent acquisition efforts (acquiring skilled human labour to meet
organizational needs) New hires are aware of this organization’s career development
opportunities.

WORKING MODEL FOR MENTORING:
The working model for mentoring includes the following stages.
Stages 1: Introduction:
The objective of introduction is to build a connection and start the relationship between mentor
and mentee. This is a good time to get to know each other better before starting mentoring
sessions.
Stage 2: Foundation:
This entails an agreement about the mentor and mentee roles and sets the expectations for
mentoring process.
Stage 3: Orientation:
The mentee is oriented to the process in order to lessen the tension and increased motivation.
Stage 4: Collaboration:
In this stage, the mentor works together with the mentee and is seen as a caring partner.
Stage 5: Problem solving:
At this stage, mentor helps the mentee to identify the issue about his skills and performance.
This issue are rectified by corrective actions.
Stage 6: personal framework:
Here the mentoring relationship is strengthened and the mentor is regarded as a trustworthy
partner. The mentor makes an effort to help mentees in developing confidence and self-esteem.
Stage -7 professional frame work:
At this stage mentee views the mentor as a role model and now the focus is on skills
improvement and performance improvement.
Stage 8 Transitions:
Transition refers to change. This is the last stage encourages the interdependence of mentor
and mentee. The mentee is taught to work independently but the guidance of mentor is still
there.

ROLES AND RESPONSIBILITIES OF MENTOR AND MENTEE:
A) Mentor roles and responsibilities:
1. Identifying roles
 Have a clear understanding of why he /she want to be mentor

 Mentor with a realistic assessment of mentees skills and experiences
2. Communicating expectations
 Have a clear understanding of mentor’s expectations for mentee

 Clearly communicating those expectations
 Stay flexible in changing expectations
 Adopt feedback to mentee’s leering style
 Be realistic about setting timelines
3. Working together
 Advice , don’t dictate

 Advice on what mentor know and admit things he/she don’t know
 Give good examples
 Offer constructive feedback
 Evaluate progress
 Be supportive to mentees, be reliable
4. Meeting all the goals:
 After mentoring is completed, follow up on successes

 Provide an evaluation of the experience
 Repeat the mentoring process with others
B) Mentee roles and responsibilities:
1. Identifying roles
 Have a understanding about what mentee want to be mentored

 Select a mentor based on his /her goals
2. Communicating expectations
 Have a clear understanding of mentee’s expectations for mentor

 Clearly communicate those expectations

 Stay flexible in changing expectations
 Inform mentor about learning style that mentee preferred
 Be realistic about setting timelines
3. Working together
 Listen and contribute to the conversation
 Understand that mentors will not have all the answer
 Accept constructive feedback
 Evaluate progress
 Celebrate success
 Be reliable
4. Meeting the goals
 Provided updates to the mentor after mentoring is completed

 Provide evaluation of the experience
 Say thank you
Human Resource (HR) Audit:

Meaning:
HR audit is an important management control device. It is a tool to judge organisations
performance and effectiveness of HR management. According to Dale Yoder, “Personnel audit
refers to an examination and evaluation of policies, procedures and practices to determine the
effectiveness of personnel management.”
It is an analytical, investigative and comparative process. It gives feedback about HR functions
to operating managers and HR specialists. It enables to know about the effectiveness of
personnel programmes. It further provides feedback about how well managers are meeting their
HR duties. It provides quality control check on HR activities. It refers to determine the
effectiveness and efficiency of HRM.
Definition
According to R.D. Gray, “the primary purpose of audit is to know how the various units are
functioning and how they have been able to meet the policies and guidelines which were agreed
upon; and to assist the rest of the organization by identifying the gap between objectives and
results for the end product of an evaluation should be to formulate plans for corrections or
adjustments.”
The essential features of HR audit are:
(1) The measurement and effectiveness HR management’s mission, goals, strategies, policies,
programmes and activities, and
(2) To determine the action plan for future in response to the results from such measurement.
Objectives of HR Audit:
(1) To review every aspect of management of HR to determine the effectiveness of each

programmes in an organisation.
(2) To seek explanation and information in respect of failure and success of HR.
(3) To evaluate implementation of policies.
(4) To evaluate the performance of personnel staff and employees.
(5) To seek priorities, values and goals of management philosophy.
Need for Human Resource Audit:

Though there is no legal obligation to have HR audit as in case of financial accounts but the
managements have realized its need and usefulness. Therefore they have taken up HR audit
voluntarily.
It is done to fulfil the following needs:
(1) The managements of organisations have realized the need for HR audit because of powerful
influence on motivation of employees at work due to participation of employees in decision
making.
(2) Growth of organisation needs HR audit. Large organisation requires continuous feedback
for improvement in performance of its employees.
(3) Mounting pressures from trade unions of employees and their participation in formulating
employment policy and questioning of managerial competence have raised the need for HR
audit.
(4) An effective two way communication system has also facilitated the need for HR audit.
(5) Many plants are located at large distances. This also made the HR audit compulsory.
(6) The HR audit becomes essential because of delegation of authority and decentralization of
power.

Approaches to HR Audit:
According to William Werther and Keith Davis, there are five approaches for the purpose of
evaluation.
These are briefly outlined as under:
(1) Comparative Approach:
Under this approach auditors identify one model company and the results obtained of the
organisation under audit are compared with it.
(2) Outside Authority Approach:
In outside authority approach a benchmark is set to compare own results. A standard for audit
set by outside consultant is used as benchmark.
(3) Statistical Approach:
Under statistical approach the statistical information maintained by the company in respect of
absenteeism, employee turnover etc. is used as the measures for evaluating performance.
(4) Compliance Approach:
Under compliance approach the auditors make a review of past actions to determine to see
whether those activities are in compliance with the legal provisions and in accordance with the
policies and procedures of the company.
(5) MBO Approach:
Under MBO approach specific targets are fixed. The performance is measured against these
targets. The auditors conduct the survey of actual performance and compare with the goals set.
Scope of Human Resources Department Audit
Purpose: Human Resources Audit is a comprehensive method to review current human

resources policies, procedures, documentation and systems to identify needs for enhancement
and improvement of the HR function as well as to ensure compliance with the changing rules
and regulations.
Scope:
i. Department Structure and Roles

i. The Department structure and job role of the staff.
ii. Sanction Powers and Authority as per delegation of non-lending power.

2. Human Resource Planning
i. Verify Human Resource Planning w.r.t. forecasting, estimation and proper

deployment of staff in various departments/branches of the bank to ensure the
bank activities and operations are conducted in an efficient and economic manner.
ii. Verify the staff deployed in the various departments and branches of the Bank are
adequately qualified and trained for their job roles.
iii. Verify the job roles issued to Heads of departments to ensure proper and clear
allocation of job responsibilities without ambiguity and over lapping.
3. Recruitment and Selection
i. Verify the Bank’s policy with regards to recruitment and selection of new
employees.
ii. Documentation and adequate checks (KYC, background, medical, etc.) with
regards to new recruitment.
4. Compensation and Benefits
i. Verify the compensation and benefits to employees is as per Bank’s Policy.

ii. Calculation of arrears, allowances and perquisites paid to employees as per their
eligibility.
iii. Documentary evidence supporting the allowances are held on record (bills,
declarations, rent receipts, premium copies, etc.)
5. Training and Development
i. Training and Development is as per Plan.

ii. Process for assessing the organization’s immediate and future training needs and
individual development needs.
iii. Procedure for identification and nomination of staff for the training and
development programmes.
iv. Process of evaluation of the effectiveness of the training and development
programmes.
v. Orientation programmes and trainings for new recruits.
vi. Verify the code of conduct and business ethics policies for employees and its
implementation.

6. Performance Management and Evaluation
i. Verification of procedure and format of performance appraisal. Comment on its

adequacy, applicability cadre wise, job functionality wise, etc.
ii. Does the performance appraisal include a written plan to improve employees
knowledge and skills
iii. Verification of performance linked bonus
iv. Verify the policy adopted for promotions and its implementation.
7. Verify the process of terminations and exit policy and its implementation
i) Adherence to Exit Policy.
8. Staff Rotation and Transfer
i. Is there a policy in place for rotation of staff in sensitive areas of bank

operations? Comment on its implementation
ii. Transfer of employees is as per policy laid down by the Bank
iii. Is there frequent transfer of employees affecting the continuity of bank/branch
operations?
9. Staff Safety and Security
i. Work place accidents, injuries and illness is reported and investigated.

ii. Insurance cover for employees meeting untimely deaths in the course of duty.
iii. Bankers Indemnity policy: Insurance cover for employees covering loss occurring due
to work related operations.
10. Staff Benefits pertaining to Loans & Advances
i) Staff loan sanctions are as per Staff Loan Policy in force. Any loans sanctioned with
deviations from the policy to be reported along with requisite sanctions from the
appropriate authority.
11. Staff Sanctions
i) Staff Leave Policy and Leave Sanctions

ii) Re-imbursements sanctioned. (Bills/sanctioning authority)

12. Recordkeeping and other Documentation
i) Personnel files are updated and filed in an organized manner

ii) Documents regarding employees are kept for their required duration
iii) All appropriate labour notices and circulars are displayed in an easily visible
location.
iv) Minutes Book of the Personnel Committee

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Human Resource Management (BEBA55A) UNIT-5

Human Resource Management – Unit V

 To improve organizational effectiveness

Promotion is an upward movement of employee in the organization to another job, higher in

Jawahar Science College, Block-14, Neyveli. Page 1 of 22

Promotion is a double edged weapon. If handled carefully, it contributes to employee

Jawahar Science College, Block-14, Neyveli. Page 2 of 22

Seniority based promotion

Merit or competence based promotion

Jawahar Science College, Block-14, Neyveli. Page 3 of 22

Disadvantages of Promotion Plan

Jawahar Science College, Block-14, Neyveli. Page 4 of 22

Jawahar Science College, Block-14, Neyveli. Page 5 of 22

Jawahar Science College, Block-14, Neyveli. Page 6 of 22

 Enhance each employee‘s current job performance.

 Enable individuals to take advantage of future job opportunities.

 Fulfil agencies‘ goals for a dynamic and effective workforce.

Jawahar Science College, Block-14, Neyveli. Page 7 of 22

1. Development of overall goals and objectives,

Jawahar Science College, Block-14, Neyveli. Page 8 of 22

however, may be easily modified as additional information is received without a great

Self-Awareness- One of the major objectives of any career development program is a

Jawahar Science College, Block-14, Neyveli. Page 9 of 22

Education- Education is among the more straightforward objectives of career development.

Sensitivity to Diversity- Many career development programs make sensitivity to diversity in

The Career Management Process

Step #1: Self-Assessment

Self-Assessment Reality Check Goal Setting Action Planning

The Career Management Process

Step #2: Research (Career Exploration)

Step #3: Decision-Making

Step#4: Search (Taking Action)

Step #5: Acceptance

Jawahar Science College, Block-14, Neyveli. Page 11 of 22

Jawahar Science College, Block-14, Neyveli. Page 12 of 22

2. According to Jacobi, ‘mentoring is a one to one helping relationship or nurturing process’.

4. Group or Team mentoring: In group mentoring, senior faculty members serve as

Jawahar Science College, Block-14, Neyveli. Page 13 of 22

Benefits for mentors:

Jawahar Science College, Block-14, Neyveli. Page 14 of 22

WORKING MODEL FOR MENTORING:

The working model for mentoring includes the following stages.

Stage 5: Problem solving:

Stage 6: personal framework:

Stage -7 professional frame work:

Jawahar Science College, Block-14, Neyveli. Page 15 of 22

ROLES AND RESPONSIBILITIES OF MENTOR AND MENTEE:

A) Mentor roles and responsibilities:

 Have a clear understanding of why he /she want to be mentor

 Have a clear understanding of mentor’s expectations for mentee

 Advice , don’t dictate

4. Meeting all the goals:

 After mentoring is completed, follow up on successes

B) Mentee roles and responsibilities:

 Have a understanding about what mentee want to be mentored

 Have a clear understanding of mentee’s expectations for mentor

Jawahar Science College, Block-14, Neyveli. Page 16 of 22

 Clearly communicate those expectations

4. Meeting the goals

 Provided updates to the mentor after mentoring is completed

Human Resource (HR) Audit:

The essential features of HR audit are:

(1) To review every aspect of management of HR to determine the effectiveness of each

Need for Human Resource Audit: