UNIT III

Productivity & improvement of Human Resource

1. Adjust lighting
Ample lighting not only makes it easier to see what you’re doing, but it’s also much healthier than a
dimly lit office. Having to strain your eyes to read text, and sitting in front of a computer screen for
hours on end, will not only result in lower productivity but can also cause headaches and drowsiness.
It’s vital to have the right type of lighting, too. Natural light is most desirable; a 2014 study by
Northwestern Medicine and the University of Illinois at Urbana-Champaign found that workers that
were exposed to higher levels of natural light slept for longer (an average of 46 minutes per night),
slept better, and were more physically active than those workers who were not exposed to natural light
in their workplace. Many migraine sufferers also identify artificial light as a trigger for their attacks.
2. Ensure employees are sitting comfortably
Standing desks have, in recent years, been touted as a cure-all for everything from back pain to obesity.
Discomfort at our desks – whether they are standing or conventional sitting ones – is important for
maintaining productivity and concentration levels. Constantly fidgeting, getting up and moving around
to escape an uncomfortable seat, and having to frequently adjust a chair, will all eat into valuable time.
Investing in good chairs is a start, but HR should also make sure that employees know how to set up
their desk environment for maximum productivity and safety, as back pain and headaches can often be
attributed to poor desk ergonomics. Investing in online desk assessments and elearning courses is a
good way to ensure that your staff are aware of the health considerations when working with computer
equipment and have set up their desks appropriately.
Comfort can also be affected by the amount of unnecessary clutter you have on your desk. A study by
furniture retailer OKA found that untidy desks are linked to a 77% decline in productivity and a 53%
fall in motivation among British workers. Encouraging employees to keep their desks tidy could make
a significant difference to their productivity levels.
3. Set the perfect temperature
Getting the temperature right in an office isn’t easy – there will almost always be someone who is too
hot or too cold. But this seemingly innocuous trial of office life can make a serious dent in your
organisation’s productivity; a 2014 survey found that nearly a third (29%) of workers estimate they
spend between 10-30 minutes each day not working because of an uncomfortable temperature.
Meanwhile, a 2004 study by Cornell University linked warmer office temperatures to fewer errors and
higher productivity levels. When office temperatures were increased from 68 degrees Fahrenheit to 77
degrees Fahrenheit (20C to 25C), typing errors dropped by 44% and output increased by 150%.
4. Reduce noise levels
A steady hum of background chatter is part and parcel of working in most offices. But office noise
levels – which usually range from between 60 to 65 decibels – can make it hard to concentrate. The
German Association of Engineers specifies 70 decibels as an acceptable volume for carrying out
simple, transactional office-based work, while just 55 decibels is the limit for what they term “mainly
intellectual work” that is complex and demands creative thinking and problem solving.
A 2011 study by Cornell University found that office workers who were exposed to higher levels of
office noise had higher levels of epinephrine – a stress hormone more commonly known as adrenaline
– compared to those working in a quieter environment.
5. Support flexible working
Knowing that an employer is open to flexible working is great for employee morale and engagement,
and is a sign that your organisation understands that employees have lives outside of work, and that
you trust them to manage their time and workloads appropriately.
As well as potentially cutting down on time spent commuting, and financial and environmental costs,
the ability to work from home (or other locations) also gives employees the opportunity to do the
deeper work that they might struggle to complete in a busy office environment.
6. Encourage healthy eating choices
Making the wrong choice at lunchtime can have a profound effect on an employee’s productivity level
later that afternoon. Tuck into foods such as pasta, bread and fizzy drinks – all of which release
glucose quickly – and you could be heading for a sugar crash come 3pm.
It’s far better to encourage employees to choose healthy, filling foods that are a source of energy, fibre
and nutrients and release glucose comparatively slowly, such as baked potatoes and pulses (such as
beans and lentils). Don’t forget about snacks, too; consider making fresh fruit available on the house so
staff aren’t tempted to graze on chocolate, sweets and energy drinks.

7. Invest in employee happiness

In a recent study by researchers at the University of Warwick, a boost in employee happiness led to a
12% increase in productivity, while unhappy employees were found to be 10% less productive.
Commenting on the findings, the research team said: “We find that human happiness has large and
positive causal effects on productivity. Positive emotions appear to invigorate human beings.”
Creating a culture of mindfulness, communication and collaboration will improve morale and
motivation among a workforce. Ensuring that employees are recognised for their efforts, whether by
way of a reward or a simple ‘thank you’, will help to create a happy working environment.
8. Provide the right technology
Technology – whether that’s communications tools such as Slack or specialist applications such as an
HR system – has great potential to improve the speed and efficiency with which we work, so long as
you choose the right products and they are implemented well. Email, for instance, can be a great
drainer on productivity; consider reducing your reliance on this medium, or, at least, getting your email
volumes under control. Introducing single sign-on for your business applications can really help, too:
not only will users spend less time entering login information, but your IT help desk won’t receive so
many password reset requests
 Job Analysis and Job Design
Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills,
accountabilities, work environment and ability requirements of a specific job. It also involves
determining the relative importance of the duties, responsibilities and physical and emotional skills for
a given job. All these factors identify what a job demands and what an employee must possess to
perform a job productively.
The process of job analysis involves in-depth investigation in order to control the output, i.e., get the
job performed successfully. The process helps in finding out what a particular department requires and
what a prospective worker needs to deliver. It also helps in determining particulars about a job
including job title, job location, job summary, duties involved, working conditions, possible hazards
and machines, tools, equipments and materials to be used by the existing or potential employee.
However, the process is not limited to determination of these factors only. It also extends to finding out
the necessary human qualifications to perform the job. These include establishing the levels of
education, experience, judgment, training, initiative, leadership skills, physical skills, communication
skills, responsibility, accountability, emotional characteristics and unusual sensory demands. These
factors change according to the type, seniority level, industry and risk involved in a particular job.
Importance of Job Analysis
The details collected by conducting job analysis play an important role in controlling the output
of the particular job. Determining the success of job depends on the unbiased, proper and thorough
job analysis. It also helps in recruiting the right people for a particular job. The main purpose of
conducting this whole process is to create and establish a perfect fit between the job and the employee.
Job analysis also helps HR managers in deciding the compensation package and additional perks and
incentives for a particular job position. It effectively contributes in assessing the training needs and
performance of the existing employees. The process forms the basis to design and establish the
strategies and policies to fulfill organizational goals and objectives.
However, analysis of a particular job does not guarantee that the managers or organization would get
the desired output. Actually collecting and recording information for a specific job involves several
complications. If the job information is not accurate and checked from time to time, an employee will
not be able to perform his duty well. Until and unless he is not aware of what he is supposed to do or
what is expected of him, chances are that the time and energy spent on a particular job analysis is a
sheer wastage of human resources. Therefore, proper care should be taken while conducting job
analysis.
A thorough and unbiased investigation or study of a specific job is good for both the managers and the
employees. The managers get to know whom to hire and why. They can fill a place with the right
person. On the other hand, existing or potential employee gets to know what and how he is supposed to
perform the job and what is the desired output. Job analysis creates a right fit between the job and the
employee.
The main purposes of conducting a job analysis process is to use this particular information to create a
right fit between job and employee, to assess the performance of an employee, to determine the worth
of a particular task and to analyze training and development needs of an employee delivering that
specific job.
Let’s understand the concept with the help of an example. If the job of an executive sales manager is to
be analyzed, the first and foremost thing would be to determine the worth of this job. The next step is
to analyze whether the person is able to deliver what is expected of him. It also helps in knowing if he
or she is perfect for this job. The process doesn’t finish here. It also involves collection of other
important facts and figures such as job location, department or division, compensation grade, job
duties, routine tasks, computer, educational, communicational and physical skills, MIS activities,
reporting structure, ability to adapt in a given environment, leadership skills, licenses and
certifications, ability to grow and close sales, ability to handle clients, superiors and subordinates and
of course, the presentation of an individual.
Purpose of Job Analysis
Job Analysis plays an important role in recruitment and selection, job evaluation, job designing,
deciding compensation and benefits packages, performance appraisal, analyzing training and
development needs, assessing the worth of a job and increasing personnel as well as organizational
productivity.

 Recruitment and Selection: Job Analysis helps in determining what kind of person is required
to perform a particular job. It points out the educational qualifications, level of experience and
technical, physical, emotional and personal skills required to carry out a job in desired fashion.
The objective is to fit a right person at a right place.
 Performance Analysis: Job analysis is done to check if goals and objectives of a particular job
are met or not. It helps in deciding the performance standards, evaluation criteria and
 individual’s output. On this basis, the overall performance of an employee is measured and he
or she is appraised accordingly.
 Training and Development: Job Analysis can be used to assess the training and development
needs of employees. The difference between the expected and actual output determines the
level of training that need to be imparted to employees. It also helps in deciding the training
content, tools and equipments to be used to conduct training and methods of training.
 Compensation Management: Of course, job analysis plays a vital role in deciding the pay
packages and extra perks and benefits and fixed and variable incentives of employees. After all,
the pay package depends on the position, job title and duties and responsibilities involved in a
job. The process guides HR managers in deciding the worth of an employee for a particular job
opening.
 Job Designing and Redesigning: The main purpose of job analysis is to streamline the human
efforts and get the best possible output. It helps in designing, redesigning, enriching, evaluating
and also cutting back and adding the extra responsibilities in a particular job. This is done to
enhance the employee satisfaction while increasing the human output.
JOB DESIGN
Job design follows job analysis i.e. it is the next step after job analysis. It aims at outlining and
organising tasks, duties and responsibilities into a single unit of work for the achievement of certain
objectives. It also outlines the methods and relationships that are essential for the success of a certain
job. In simpler terms it refers to the what, how much, how many and the order of the tasks for a job/s.
Job design essentially involves integrating job responsibilities or content and certain qualifications that
are required to perform the same. It outlines the job responsibilities very clearly and also helps in
attracting the right candidates to the right job. Further it also makes the job look interesting and
specialised.
There are various steps involved in job design that follow a logical sequence, those that were
mentioned earlier on. The sequence is as follows:
1. What tasks are required to e done or what tasks is part of the job?
2. How are the tasks performed?
3. What amount are tasks are required to be done?
4. What is the sequence of performing these tasks?
All these questions are aimed at arriving upon a clear definition of a specific job and thereby make it
less risky for the one performing the same. A well defined job encourages feeling of achievement
among the employees and a sense of high self esteem.
The whole process of job design is aimed to address various problems within the organisational setup,
those that pertain to ones description of a job and the associated relationships. More specifically the
following areas are fine tuned:
 Checking the work overload.
  Checking upon the work under load.
 Ensuring tasks are not repetitive in nature.
 Ensuring that employees don not remain isolated.
 Defining working hours clearly.
 Defining the work processes clearly.
The above mentioned are factors that if not taken care of result into building stress within the
employees.
Benefits of Job Design
1. Employee Input: A good job design enables a good job feedback. Employees have the option
to vary tasks as per their personal and social needs, habits and circumstances in the workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the philosophy of
“leave them alone’ job design lays due emphasis on training people so that are well aware of
what their job demands and how it is to be done.
3. Work/Rest Schedules: Job design offers good work and rest schedule by clearly defining the
number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically demanding jobs by
minimising the energy spent doing the job and by aligning the manpower requirements for the
same.
Job design is a continuous and ever evolving process that is aimed at helping employees make
adjustments with the changes in the workplace. The end goal is reducing dissatisfaction, enhancing
motivation and employee engagement at the workplace.
Job design is the next step after job analysis that aims at outlining, and organizing tasks and
responsibilities associated with a certain job. It integrates job responsibilities and qualifications or
skills that are required to perform the same. There are various methods or approaches to do this. The
important ones are discussed below
Human Approach
The human approach of job design laid emphasis on designing a job around the people or employees
and not around the organizational processes. In other words it recognizes the need of designing jobs
that are rewarding (financially and otherwise) and interesting at the same time.
According to this approach jobs should gratify an individual’s need for recognition, respect, growth
and responsibility. Job enrichment as popularized by Herzberg’s research is one the ways in human
approach of job design. Herzberg classified these factors into two categories – the hygiene factors and
the motivators.
Motivators include factors like achievement, work nature, responsibility, learning and growth etc that
can motivate an individual to perform better at the work place.
Hygiene factor on the other hand include things like working conditions, organizational policies, salary
etc that may not motivate directly but the absence of which can lead to dissatisfaction at the work
place.
Engineering Approach
The engineering approach was devised by FW Taylors et al. They introduced the idea of the task that
gained prominence in due course of time. According to this approach the work or task of each
employee is planned by the management a day in advance. The instructions for the same are sent to
each employee describing the tasks to e undertaken in detail. The details include things like what, how
and when of the task along with the time deadlines.
The approach is based on the application of scientific principles to job design. Work, according to this
approach should be scientifically analyzed and fragmented into logical tasks. Due emphasis is then laid
on organizing the tasks so that a certain logical sequence is followed for efficient execution of the
same. The approach also lays due emphasis on compensating employees appropriately and training
them continuously for work efficiency.
The Job Characteristics Approach
The job characteristics approach was popularized by Hackman and Oldham. According to this
approach there is a direct relationship between job satisfaction and rewards. They said that employees
will be their productive best and committed when they are rewarded appropriately for their work. They
laid down five core dimensions that can be used to describe any job – skill variety, task identity, task
significance, autonomy and feedback.
 Skill Variety: The employees must be able to utilize all their skills and develop new skills
while dealing with a job.
 Task Identity: The extent to which an identifiable task or piece or work is required to be done
for completion of the job.
 Task Significance: How important is the job to the other people, what impact does it create on
their lives?
 Autonomy: Does the job offer freedom and independence to the individual performing the
same.
 Feedback: Is feedback necessary for improving performance.
These are different approaches but all of them point to more or less the same factors that need to be
taken into consideration like interest, efficiency, productivity, motivation etc. All these are crucial to
effective job design
Work Measurement
Work measurement is concerned with the determination of the amount of time required to perform a
unit of work. Work measurement is very important for promoting productivity of an organization. It
enables management to compare alternate methods and also to do initial staffing. Work measurement
provides basis for proper planning.
Since it is concerned with the measurement of time it is also called ‘Time Study’. The exact
examination of time is very essential for correct pricing. To find the correct manufacturing time for a
product, time study is performed. To give competitive quotations, estimation of accurate labour cost is
very essential. It becomes a basis for wage and salary administration and devising incentive schemes.
Work measurement has been defined by British Standard Institution as, “The application of
techniques designed to establish the time for a qualified worker to carry out a specified job at a
defined level of performance”. This time is called standard or allowed time. Time study may also be
defined as “the art of observing and recording the time required to do each detailed element of an
industrial operation”.
Objectives of Work Measurement:
1. To compare the times of performance by alternative methods.
2. To enable realistic schedule of work to be prepared.
3. To arrive at a realistic and fair incentive scheme.
4. To analyse the activities for doing a job with the view to reduce or eliminate unnecessary jobs.
5. To minimise the human effort.
6. To assist in the organisation of labour by daily comparing the actual time with that of target
time.
Uses of Work Measurement:
1. Wok measurement is used in planning work and in drawing out schedules.
2. Wok measurement is used to determine standard costs.
3. Wok measurement is used as an aid in preparing budgets.
4. It is used in balancing production lines for new products.
5. Wok measurement is used in determining machine effectiveness.
6. To determine time standards to be used as a basis for labour cost control.
7. To establish supervisory objectives and to provide a basis for measuring supervisory efficiency.
8. To determine time standards to be used for providing a basis for wage incentive plans.
Techniques of Work Measurement:
Work measurement is investigating and eliminating ineffective time. It not only reveals the existence
of ineffective time. But it can be used to set standard times for carrying out the work so that ineffective
time does not evolve later. It will be immediately found out by the increased standard time. For the
purpose of work measurement, work may be regarded as repetitive work and non-repetitive work.
The principal techniques of work measurement are classified under the following heads:
1. Time Study
2. Work Sampling
3. Pre-determined Motion Time System
4. Analytical Estimating
Ergonomics
Ergonomics is about designing for people.
Defined as the science of fitting a workplace to the user’s needs, ergonomics aims to increase
efficiency and productivity and reduce discomfort.
Think about the angle of your computer monitor, or the height of your desk. Think about whether your
eyes are strained by the end of the day or if your wrists hurt from typing. A sound understanding of
ergonomics can prevent most workplace injuries by adjusting tools to the user, putting an emphasis on
proper posture to reduce the impact of repetitive movements.
The use of computers and rapidly changing technology in the modern workplace has greatly increased
the need for ergonomics. Desks, chairs, monitors, keyboards and lighting all need to be assessed when
creating a workspace, whether it is at the office or at home.
Ergonomics also takes into account the need for movement throughout the day. Office furniture has
traditionally encouraged stiff, fixed postures and little movement. However, a balance between sitting
and standing, which can be aided with a height-adjustable desk, is a proven way to combat the effects
of sedentary workplace behavior.
Ergonomics is the process of designing or arranging workplaces, products and systems so that they fit
the people who use them.
Most people have heard of ergonomics and think it is something to do with seating or with the design
of car controls and instruments – and it is… but it is so much more. Ergonomics applies to the design
of anything that involves people – workspaces, sports and leisure, health and safety.
Ergonomics (or ‘human factors’ as it is referred to in North America) is a branch of science that aims
to learn about human abilities and limitations, and then apply this learning to improve people’s
interaction with products, systems and environments.
Ergonomics aims to improve workspaces and environments to minimise risk of injury or harm. So as
technologies change, so too does the need to ensure that the tools we access for work, rest and play are
designed for our body’s requirements.
In the workplace: According to Safe Work Australia, the total economic cost of work-related injuries
and illnesses is estimated to be $60 billion dollars. Recent research has shown that lower back pain is
the world’s most common work-related disability – affecting employees from offices, building sites
and in the highest risk category, agriculture.
Ergonomics aims to create safe, comfortable and productive workspaces by bringing human abilities
and limitations into the design of a workspace, including the individual’s body size, strength, skill,
speed, sensory abilities (vision, hearing), and even attitudes.
In the greater population: The number of people in Australia aged 75 and over is forecast to double
over the next 50 years. With this, equipment, services and systems will need to be designed to
accommodate the increasing needs of the ageing population, applying to public transport, building
facilities, and living spaces.
How does ergonomics work?
Ergonomics is a relatively new branch of science which celebrated its 50th anniversary in 1999, but
relies on research carried out in many other older, established scientific areas, such as engineering,
physiology and psychology.
To achieve best practice design, Ergonomists use the data and techniques of several disciplines:
 Anthropometry: body sizes, shapes; populations and variations
 Biomechanics: muscles, levers, forces, strength
 Environmental physics: noise, light, heat, cold, radiation, vibration body systems: hearing,
vision, sensations
 Applied psychology: skill, learning, errors, differences
 Social psychology: groups, communication, learning, behaviours.
Human Resource planning Objectives and Activities
Human resource is the most important asset of an organization. Human resources planning are the
important managerial function. It ensures the right type of people, in the right number, at the right time
and place, who are trained and motivated to do the right kind of work at the right time, there is
generally a shortage of suitable persons.
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organization should make from its current manpower position to its desired
manpower position.
Through planning a management strives to have the right number and the right kind of people at the
right places, at the right time to do things which result in both the organization and the individual
receiving the maximum long range benefit.”
Dale S. Beach has defined it as “a process of determining and assuring that the organization will have
an adequate number of qualified persons available at the proper times, performing jobs which meet the
needs of the enterprise and which provide satisfaction for the individuals involved.”
In the words of Leon C. Megginson, human resource planning is “an integration approach to
performing the planning aspects of the personnel function in order to have a sufficient supply of
adequately developed and motivated people to perform the duties and tasks required to meet
organisational objectives and satisfy the individual’s needs and goals of organisational members.”

Objectives of Human Resource Planning

1. Well Defined Objectives
Enterprise’s objectives and goals in its strategic planning and operating planning may form the
objectives of human resource planning. Human resource needs are planned on the basis of company’s
goals. Besides, human resource planning has its own objectives like developing human resources,
updating technical expertise, career planning of individual executives and people, ensuring better
commitment of people and so on.
2. Determining Human Resource Reeds
Human resource plan must incorporate the human resource needs of the enterprise. The thinking will
have to be done in advance so that the persons are available at a time when they are required. For this
purpose, an enterprise will have to undertake recruiting, selecting and training process also.
3. Keeping Manpower Inventory
It includes the inventory of present manpower in the organization. The executive should know the
persons who will be available to him for undertaking higher responsibilities in the near future.
4. Adjusting Demand and Supply
Manpower needs have to be planned well in advance as suitable persons are available in future. If
sufficient persons will not be available in future then efforts should be .made to start recruitment
process well in advance. The demand and supply of personnel should be planned in advance.
5. Creating Proper Work Environment
Besides estimating and employing personnel, human resource planning also ensures that working
conditions are created. Employees should like to work in the organization and they should get proper
job satisfaction.
An HR Planning process simply involves the following four broad steps:
 Current HR Supply: Assessment of the current human resource availability in the
organization is the foremost step in HR Planning. It includes a comprehensive study of the
human resource strength of the organization in terms of numbers, skills, talents, competencies,
qualifications, experience, age, tenures, performance ratings, designations, grades,
compensations, benefits, etc. At this stage, the consultants may conduct extensive interviews
with the managers to understand the critical HR issues they face and workforce capabilities
they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the business is the
second step in HR Planning. All the known HR variables like attrition, lay-offs, foreseeable
vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while
determining future HR demand. Further, certain unknown workforce variables like competitive
factors, resignations, abrupt transfers or dismissals are also included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with the future demand of HR, and
create a demand forecast. Here, it is also essential to understand the business strategy and
objectives in the long run so that the workforce demand forecast is such that it is aligned to the
organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply and
demand, the HR Consulting Firm develops plans to meet these gaps as per the demand forecast
created by them. This may include conducting communication programs with employees,
relocation, talent acquisition, recruitment and outsourcing, talent management, training and
coaching, and revision of policies. The plans are, then, implemented taking into confidence the
mangers so as to make the process of execution smooth and efficient. Here, it is important to
note that all the regulatory and legal compliances are being followed by the consultants to
prevent any untoward situation coming from the employees.
Manpower Requirement Process
According to Gorden MacBeath, manpower planning involves two stages.The first stage is concerned
with the detailed “planning of manpower requirements for all types and levels of employees
throughout the period of the plan,” and the second stage is concerned with “planning of manpower
supplies to provide the organisation with the right types of people from all sources to meet the planned
requirements.”
According to Vetter, the process by which management determines how the organisation should move
from its current manpower position to its desired manpower position. Through planning, management
strives to have the right number and the right kinds of people, at the right places, at the right time,
doing things which result in both the organisation and the individual receiving maximum long-run
benefit.
Coleman has defined human resource or manpower planning as “the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated plan of
the organisation.”
Stainer defines manpower planning as “Strategy for the acquisition, utilisation, improvement, and
preservation of an enterprise’s human resources. It relates to establishing job specifications or the
quantitative requirements of jobs determining the number of personnel required and developing
sources of manpower.”
According to Wickstrom, human resource planning consists of a series of activities, viz:
(a) Forecasting future manpower requirements, either in terms of mathematical projections of trends in
the economic environment and development in industry, or in terms of judgmental estimates based
upon the specific future plans of a company;
(b) Making an inventory of present manpower resources and assessing the extent to which these
resources are employed optimally;
(c) Anticipating manpower problems by projecting present resources into the future and comparing
them with the forecast of requirements to determine their adequacy, both quantitatively and
qualitatively; and
(d) Planning the necessary programmes of requirement, selection, training, development, utilization,
transfer, promotion, motivation and compensation to ensure that future manpower requirements are
properly met.
According to Geisler, manpower planning is the process—including forecasting, developing and
controlling—by which a firm ensures that it has the right number of people and the right kind of people
at the right places at the right time doing work for which they are economically most useful.
Process of Manpower Planning:
The planning process is one of the most crucial, complex and continuing managerial functions which,
according to the Tata Electrical Locomotive Company, “embraces organisation development,
managerial development, career planning and succession planning.” The process has gained
importance in India with the increase in the size of business enterprises, complex production
technology, and the adoption of professional management technique.
It may be rightly regarded as a multi-step process, including various issues, such as:
(A) Deciding goals or objectives
(B) Auditing of the internal resources
(C) Formulation of the recruitment plan
(D) Estimating future organisational structure and manpower requirements
(E) Developing a human resource plan
A. Deciding Goals or Objectives:
The business objectives have been determined; planning of manpower resources has to be fully
integrated into the financial planning. It becomes necessary to determine how the human resources can
be organised to achieve these objectives.
For this purpose, a detailed organisation chart is drawn and the management of the company tries to
determine “how many people, at what level, at what positions and with what kind of experience and
training would be required to meet the business objectives during the planning period.” The
management of this company considers a time 5 pan of five years as an optimum period for this
purpose.
It stresses the specific and standard occupational nomenclature must be used without which “it would
not be possible to build a firm-cum-industry-wise manpower resources planning.” It suggests the
adoption for this purpose of the international coding of occupations. For a sound manpower planning it
considers as a prerequisite the preparation of a manual of job classification and job description with
specific reference to individual jobs to be performed.
B. Audit of the Internal Resources:
The next step consists of an audit of the internal resources. A systematic review of the internal
resources would indicate persons within the organisations who possesses different or higher levels of
responsibilities. Thus it becomes necessary to integrate into the manpower planning process a sound
system of performance appraisal as well as appraisal of potential of existing employees.
C. Formulation of the Recruitment Plan:
A detailed survey of the internal manpower resources can ultimately lead to as assessment of the deficit
or surplus of personnel for the different levels during the planned period. Whilst arriving at the final
figures, it is necessary to take into account the “actual retirements and estimated loss due to death, ill
health and turnover, based on past experience and future outlook in relation to company’s expansion
and future growth patterns.”
D. Estimating Future Organisational Structure and Manpower Requirements:
The management must estimate the structure of the organisation at a given point of time. For this
estimate, the number and type of employees needed have to be determined. Many environmental
factors affect this determination. They include business forecast, expansion and growth, design and
structural changes, management philosophy, government policy, product and human skills mix, and
competition.
E. Developing of Human Resource Plan:
This step refers to the development and implementation of the human resource plan, which consists in
finding out the sources of labour supply with a view to making an effective use of these sources. The
first thing, therefore, is to decide on the policy— should the personnel be hired from within through
promotional channels or should it be obtained from an outside source.
The best policy which is followed by most organisations is to fill up higher vacancies by promotion
and lower level positions by recruitment from the labour market. The market is a geographical area
from which employers recruit their work force and labour seeks employment.
Factors Affecting Manpower Planning:
Manpower planning exercise is not an easy tube because it is imposed by various factors such as:
1. It suffers from inaccuracy because it is very difficult to forecast long-range requirements of
personnel.
2. Manpower planning depends basically on organisation planning. Overall planning is itself is a
difficult task because of changes in economic conditions, which make long term manpower
planning difficult.
3. It is difficult to forecast about the personnel with the organisation at a future date. While
vacancies caused by retirements can be predicted accurately other factors like resignation,
deaths are difficult to forecast.
4. Lack of top management support also frustrates those in charge of manpower planning because
in the absence of top management support, the system does not work properly.
5. The problem of forecast becomes more occur in the context of key personnel because their
replacement cannot be arranged in short period of time.
Moreover any system requires the support of top management and manpower planning is no exception
to this.
Recruitment & Selection Process: Introduction
Recruitment and Selection is an important operation in HRM, designed to maximize employee
strength in order to meet the employer’s strategic goals and objectives. In short, Recruitment and
Selection is the process of sourcing, screening, shortlisting and selecting the right candidates for the
filling the required vacant positions.
The Scope of Recruitment and Selection
The scope of Recruitment and Selection is very wide and it consists of a variety of operations.
Resources are considered as most important asset to any organization. Hence, hiring right resources is
the most important aspect of Recruitment. Every company has its own pattern of recruitment as per
their recruitment policies and procedures.
The scope of Recruitment and Selection includes the following operations:
 Dealing with the excess or shortage of resources
 Preparing the Recruitment policy for different categories of employees
 Analyzing the recruitment policies, processes, and procedures of the organization
 Identifying the areas, where there could be a scope of improvement
 Streamlining the hiring process with suitable recommendations
 Choosing the best suitable process of recruitment for effective hiring of resources
Any organization wants it future to be in good and safe hands. Hence, hiring the right resource is a
very important task for any organization.
Ste
Activity
p

Sending the resignation communication message to HR with request for

1
initiating the recruitment process

2 Manager-HR directs the hiring team to start the recruitment process

3 Logging into the employment website and contacting different recruiters

4 Sourcing, identifying, and collecting the resumes of the candidates

5 Receiving relevant resumes

6 Shortlisting the resumes

7 Sending the shortlisted resumes to the department manager

8 Schedule interview dates

9 Calling the candidates for interview

Interviewers complete the feedback form and the feedback is shared with the
10
HR

11 This process repeats for many candidates till the best candidates are finalized.

12 The HR team negotiates the package and compensation

13 Final confirmation and agreements

14 Send offer letter

15 Offer accepted
 1. A career may be defined as ‘a sequence of jobs that constitute what a person does for a living’.
2. According to Schermerborn, Hunt, and Osborn, ‘Career planning is a process of
systematically matching career goals and individual capabilities with opportunities for
their fulfillment’.
3. Career planning is the process of enhancing an employee’s future value.
4. A career plan is an individual’s choice of occupation, organization and career path.
Career planning encourages individuals to explore and gather information, which enables them to syn-
thesize, gain competencies, make decisions, set goals and take action. It is a crucial phase of human
resource development that helps the employees in making strategy for work-life balance.
Features of Career Planning and Career Development:
1. It is an ongoing process.
2. It helps individuals develop skills required to fulfill different career roles.
3. It strengthens work-related activities in the organization.
4. It defines life, career, abilities, and interests of the employees.
5. It can also give professional directions, as they relate to career goals.
Objectives of Career Planning:
1. To identify positive characteristics of the employees.
2. To develop awareness about each employee’s uniqueness.
3. To respect feelings of other employees.
4. To attract talented employees to the organization.
5. To train employees towards team-building skills.
6. To create healthy ways of dealing with conflicts, emotions, and stress.
Benefits of Career Planning:
1. Career planning ensures a constant supply of promotable employees.
2. It helps in improving the loyalty of employees.
3. Career planning encourages an employee’s growth and development.
4. It discourages the negative attitude of superiors who are interested in suppressing the growth of
the subordinates.
5. It ensures that senior management knows about the calibre and capacity of the employees who
can move upwards.
6. It can always create a team of employees prepared enough to meet any contingency.
7. Career planning reduces labour turnover.
 8. Every organization prepares succession planning towards which career planning is the first
step.
Career Development
Career development is the series of activities or the on-going/lifelong process of developing one’s
career. Career development usually refers to managing one’s career in an intra-organizational or inter-
organizational scenario. It involves training on new skills, moving to higher job responsibilities,
making a career change within the same organization, moving to a different organization or starting
one’s own business.

Career development is directly linked to the goals and objectives set by an individual. It starts with
self-actualization and self-assessment of one’s interests and capabilities. The interests are then matched
with the available options.
The individual needs to train himself to acquire the skills needed for the option or career path chosen
by him. Finally, after acquiring the desired competency, he has to perform to achieve the goals and
targets set by him.
Career development is directly linked to an individual’s growth and satisfaction and hence should be
managed by the individual and not left to the employer. Career development helps an individual grow
not only professionally but also personally. Learning new skills like leadership, time management,
good governance, communication management, team management etc also help an employee develop
and shape their career.
Importance of Career Development
Every employee working in an organization is looking for a career development which moves in the
right direction. Career path taken by an employee determines the growth. Career should be planned in
a way that it moves forward.
Career development provides the framework with skills, goals, awareness, assessment and performance
which helps an individual to move in the right direction and achieve the goals one has in one’s career.
Careful career planning is always useful for individuals to succeed professionally and also helps to
boost employee motivation in the organization.
Career Development Strategies
The development of an individual’s career is driven by several factors. Strategies to improve
someone’s career can be driven either by the company through organization development or by the
individual himself or herself. Some strategies of career development are as following.
1. By Companies
Training and development by companies can help in employees learn new skills. Companies help in
providing leadership development, management development etc. This is all done through employee
training sessions or developmental counselling. Employee development in the long run helps in career
development.
2. By Employees
Individuals can themselves boost their own career. This is done through constant evaluation of their
skills using techniques like continuing professional development.
Continuous and repetitive efforts can help in the career development for an employee.
Training Methods
A large variety of methods of training are used in business. Even within one organization different
methods are used for training different people. All the methods are divided into two classifications for:
Training Methods: On the Job Training and off the Job Training Methods
1. On-the-job training Methods
Under these methods new or inexperienced employees learn through observing peers or managers
performing the job and trying to imitate their behavior. These methods do not cost much and are less
disruptive as employees are always on the job, training is given on the same machines and experience
would be on already approved standards, and above all the trainee is learning while earning. Some of
the commonly used methods are:-
(a) Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to practice. The biggest
problem is that it perpetrates the existing practices and styles. In India most of the scooter mechanics
are trained only through this method.
(b) Mentoring: The focus in this training is on the development of attitude. It is used for managerial
employees. Mentoring is always done by a senior inside person. It is also one-to- one interaction, like
coaching.
(c) Job Rotation: It is the process of training employees by rotating them through a series of related
jobs. Rotation not only makes a person well acquainted with different jobs, but it also alleviates
boredom and allows to develop rapport with a number of people. Rotation must be logical.
(d) Job Instructional Technique (JIT): It is a Step by step (structured) on the job training method in
which a suitable trainer (i) prepares a trainee with an overview of the job, its purpose, and the results
desired, (ii) demonstrates the task or the skill to the trainee, (iii) allows the trainee to show the
demonstration on his or her own, and (iv) follows up to provide feedback and help. The trainees are
presented the learning material in written or by learning machines through a series called ‘frames’.
This method is a valuable tool for all educators (teachers and trainers). It helps us:
 To deliver step-by-step instruction
 To know when the learner has learned
 To be due diligent (in many work-place environments)
(e) Apprenticeship: Apprenticeship is a system of training a new generation of practitioners of a skill.
This method of training is in vogue in those trades, crafts and technical fields in which a long period is
required for gaining proficiency. The trainees serve as apprentices to experts for long periods. They
have to work in direct association with and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an expensive method of
training. Also, there is no guarantee that the trained worker will continue to work in the same
organization after securing training. The apprentices are paid remuneration according the
apprenticeship agreements.
(f) Understudy: In this method, a superior gives training to a subordinate as his understudy like an
assistant to a manager or director (in a film). The subordinate learns through experience and
observation by participating in handling day to day problems. Basic purpose is to prepare subordinate
for assuming the full responsibilities and duties.
2. Off-the-job Training Methods
Off-the-job training methods are conducted in separate from the job environment, study material is
supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:
(a) Lectures and Conferences: Lectures and conferences are the traditional and direct method of
instruction. Every training programme starts with lecture and conference. It’s a verbal presentation for
a large audience. However, the lectures have to be motivating and creating interest among trainees.
The speaker must have considerable depth in the subject. In the colleges and universities, lectures and
seminars are the most common methods used for training.
(b) Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers access to
something new (learning). In vestibule training, the workers are trained in a prototype environment on
specific jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop.
(c) Simulation Exercises: Simulation is any artificial environment exactly similar to the actual
situation. There are four basic simulation techniques used for imparting training: management games,
case study, role playing, and in-basket training.
(d) Sensitivity Training: Sensitivity training is also known as laboratory or T-group training. This
training is about making people understand about themselves and others reasonably, which is done by
developing in them social sensitivity and behavioral flexibility. It is ability of an individual to sense
what others feel and think from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional issues, and things
that he or she has in common with other members of the group. It is the ability to behave suitably in
light of understanding.
(e) Transactional Analysis: It provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is a motivation provided by one
person and a reaction to that motivation given by another person.
Techniques of Performance Appraisal
Performance Appraisal Methods: Traditional and Modern Methods
Each method of performance appraisal has its strengths and weaknesses may be suitable for one
organization and non-suitable for another one. As such, there is no single appraisal method accepted
and used by all organizations to measure their employees’ performance.
 1. Traditional Methods
(i) 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.
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.
(ii) 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 the two. The number of times this
employee is compared as better with others determines his or her final ranking.
N (N-1)/2
Where N = the total number of employees to be evaluated.
(iii) 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.
(iv) 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
organizations. It suffer from the drawback that improve similarly, no single grade would rise in a
ratings.
(v) 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.
(vi) 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. 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.
(vii) 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.
(viii) 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.
(ix) 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 simple in use. It does not require complex
formats and extensive/specific training to complete it.
(x) 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.
(xi) 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.
2. Modern Methods
(i) 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”.
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.
(ii) Behaviourally Anchored Rating Scales (BARS)
The problem of judgmental performance evaluation inherent in the traditional methods of performance
evaluation led to some organizations 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.
(iii) 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 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.
(iv) 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.
(v) Cost Accounting Method
This method evaluates an employee’s performance from the monetary benefits the employee yields to
his/her organization. This is ascertained by establishing a relationship between the costs involved in
retaining the employee, and the benefits an organization derives from Him/her.
Promotion and Transfer
Human Resource Management is a process of connecting people and organizations to accomplish
targeted goals. It is a part of management process which is associated with the management of human
resource in an organization. Among major functions of Human Resource Management, Promotion and
transfer is vital for growth of companies.
It is important that company must develop good strategies in regard to transfers and promotions. The
policy must have a clear, fair and transparent process that applies to all employees within the
organisation. A transfer requires employees to change the work group, workplace or unit. The transfer
may be to displace the worker to a different geographic region. Basically, In Job transfer in any
organisation, employees are displaced from one post to another or from one department to other or
from one branch of company to other. It is more common in banks, government department and
manufacturing companies. Transfer is neither a promotion nor demotion but horizontal or lateral
movement of an employee. The main aim of Transfer is to fulfil the different types of work in different
department, to provide training to employee, to rectify any poor placement of employee, to satisfy
personal needs of worker, to meet organisational needs arises due to expansion, fluctuation in work
requirement or changes in organisational structure, to have a solution to poor performance of employee
in a particular department, to avoid fatigue and monotony, to remove poor personal relations, to punish
employees as a punitive action. The transfer of an employee to another job must evaluate that it is
equal to or better than the earlier job. A promotion is a change of job to a higher level within the
organisation.
Many scholars stated that Promotion is a human resource function in which an advancement involving
a change of classification for an individual, within or between budgetary units, and may or may not
involve a salary increase. A promotion for the individual may result from a reclassification of a
position. Promotions can benefit an organisation as it shows the organisation values its employees by
giving them opportunity to improve their career opportunities through promotion. Therefore,
increasing employee loyalty, retention and reducing employee turnover for the organisation. Edwin
Flippo stated that “Promotion involves a change from one job to another that is better in terms of status
and responsibilities”.
Promotion helps employees in several ways. It provides higher status, salary, and satisfaction to
existing employees, motivate employees to higher productivity and loyalty to the organisation, to retain
the services of qualified and competent employees, to recognise, appreciate and reward the loyalty and
efficiency of employees, to support the policy of filling higher vacancies from within the organisation,
to raise employees morale and sense of belongings.
There are many types of transfers such as replacement, versatility, shift and remedial transfer. In
organisations, promotions are done as horizontal, vertical and dry level.
Principles of good Promotion Policy: Rules of promotions such as qualifications, experience and other
terms should be perfect and specific. Wide publicity should be given to promotion policy. Company
must not follow partiality, favouritism or injustice. It should be based on scientific performance
appraisal of employees and opportunity should be provided to every worker. Promotion policy should
be prepared for long period and should not be forced to accept by an employee. Promotion should be
given from within the same department. Grievance relating to promotions should be settled properly.
Promotion policy should be finalised after discussion with staffs.
To summarize, a promotion is the selection employee to another position, within the same department
or elsewhere in the organization that involves duties and responsibilities of a more complex or
demanding nature and are recognized by a higher pay grade and salary. A transfer is appointing
workers to another position within the same department or to another place in the organization,
involving duties and responsibilities of a similar nature and having a similar pay grade and salary.