Human Resource management

Human resource
Human resources (HR) is the division of a business that is charged with finding,
screening, recruiting, and training job applicants, as well as administering
employee-benefit programs. HR plays a key role in helping companies deal with
a fast-changing business environment and a greater demand for quality
employees in the 21st century.
Human resources is used to describe both the people who work for a company
or organization and the department responsible for managing all matters
related to employees, who collectively represent one of the most valuable
resources in any businesses or organization. The term human resources was
first coined in the 1960s when the value of labor relations began to garner
attention and when notions such as motivation, organizational behavior, and
selection assessments began to take shape in all types of work settings.
Unit I: Human resource management
Human resource management (HRM) is the process of employing people,
training them, compensating them, developing policies relating to them, and
developing strategies to retain them. As a field, HRM has undergone many
changes over the last twenty years, giving it an even more important role in
today’s organizations. In the past, HRM meant processing payroll, sending
birthday gifts to employees, arranging company outings, and making sure
forms were filled out correctly—in other words, more of an administrative role
rather than a strategic role crucial to the success of the organization.
The responsibilities of a human resource manager fall into three major areas:
staffing, employee compensation and benefits, and defining/designing work.
Essentially, the purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees. This mandate is
unlikely to change in any fundamental way, despite the ever-increasing pace of
change in the business world.
 Features/ Characteristics of HRM
1. It is an art and a science:
The art and science of HRM is indeed very complex. HRM is both the art of managing
people by recourse to creative and innovative approaches; it is a science as well
because of the precision and rigorous application of theory that is required.
2. It is pervasive:
Development of HRM covers all levels and all categories of people, and management
and operational staff. No discrimination is made between any levels or categories.
All kinds of organisations, profit or non-­profit making, have to follow HRM.
3. It is a continuous process:
First, it is a process as there are number of functions to be performed in a series,
beginning with human resource planning to recruitment to selection, to training to
performance appraisal.
Second, it is continuous, because HRM is a never-ending process.
4. HRM must be regulation-friendly:
The HRM function has to be discharged in a manner that legal dictates are not
violated. Equal opportunity and equal pay for all, inclusion of communities
in employment, and farmers in the benefits and non-violation of human
rights must be taken care of by the HRM.
5. Interdisciplinary and fast changing:
It is encompassing welfare, manpower, personnel management, and keeps
close association with employee and industrial relations. It is multi-
disciplinary activity utilizing knowledge and inputs from psychology,
sociology, economics, etc.
6. Focus on results:
HRM is performance oriented. It has its focus on results, rather than on
rules. It is a process of bringing people and organization together so that the
goals of each are met. It is commitment oriented.
7. People-centered:
HRM is about people at work both as individuals and a group. It tries to help
employees to develop their potential fully. HRM has the responsibility of
building human capital. Organizational performance depends on the quality
of people and employees.
8. Human relations philosophy:
HRM is a philosophy and the basic assumption is that employees are human
beings and not a factor of production like land, labour or capital. HRM
recognizes individuality and individual differences. Every manager to be
successful must possess social skills to manage people with differing needs.
Objectives of HRM
• Achieve organizational goals
• Work culture
• Team integration
• Training and Development
• Employee motivation
• Workforce empowerment
• Retention
• Data and compliance
 Importance of Human resource management
An organization cannot build a good team of working professionals without good
Human Resources. The key functions of the Human Resources Management
(HRM) team include recruiting people, training them, performance appraisals,
motivating employees as well as workplace communication, workplace safety, and
much more. The beneficial effects of these functions are discussed here:
1. Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR
managers come up with plans and strategies for hiring the right kind of people.
They design the criteria which is best suited for a specific job description.
2. Performance Appraisals
HRM encourages the people working in an organization, to work according to
their potential and gives them suggestions that can help them to bring about
improvement in it. The team communicates with the staff individually from time
to time and provides all the necessary information regarding their performances
and also defines their respective roles.
3. Maintaining Work Atmosphere
This is a vital aspect of HRM because the performance of an individual in an
organization is largely driven by the work atmosphere or work culture that
prevails at the workplace. A good working condition is one of the benefits
that the employees can expect from an efficient human resource team. A
friendly atmosphere gives the staff members job satisfaction as well.
4. Managing Disputes
In an organization, there are several issues on which disputes may arise
between the employees and the employers. You can say conflicts are almost
inevitable. In such a scenario, it is the human resource department which acts
as a consultant and mediator to sort out those issues in an effective manner.
5. Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a
great extent. They organize business meetings, seminars and various official
gatherings on behalf of the company in order to build up relationships with
other business sectors.
 Functions of human resource management
1. Recruitment & selection
Recruitment and selection are arguably the most visible elements of HR. Recruiting
candidates and selecting the best ones to come and work for the company is a key
HR responsibility. People are the lifeblood of the organization and finding the best
fits is a key task.
2. Performance management
Once employees are on board, performance management becomes important.
Performance management is the second HR basic. It involves helping people to
become their best selves at work, boosting the company’s bottom line.
3. Learning & development
People are the product of life experiences, the country and era they grow up in, and a
range of cultural influences. Within HR, learning and development ensure that
employees adapt to changes in processes, technology, and societal or legal shifts.
Learning and development helps employees to reskill and upskill.
4. Succession planning
Succession planning is the process of planning contingencies in case of key
employees leaving the company. Succession planning is often based on
performance ratings and L&D efforts. This results in the creation of a talent
pipeline. This is a pool of candidates who are qualified and ready to fill (senior)
positions in case of someone leaving. Building and nurturing this pipeline is key to
good people management.
5. Compensation and benefits
Another one of the HR basics is compensation and benefits. Fair compensation is
key in motivating and retaining employees. One of the fundamentals of human
resource management concerning pay is ensuring equity and fairness.
Making the right offer of pay is a key part of attracting the best talent.
6. Human Resource Information System
The last two HR basics are not HR practices but tools to do HR better. The first is
the Human Resource Information System, or HRIS. An HRIS supports all the
cornerstones we discussed above.
Challenges of HRM
1. Attracting top talent
Attracting and retaining the best talent takes discernment, time, and a whole
lot of work. That’s why this human resource challenge features so high up on
the list. To attract the right individuals, you need to know the requirements of
the job and the organization. But as job roles and expectations keep changing,
and organizational culture keeps adapting, this task becomes increasingly
difficult.
2. Embracing change with grace and ease
Change is a shapeshifter, influencing our environment, competitors, customers,
and workplace. But whether managerial, structural, procedural or
technological, it’s well-known that humans are afraid of change. The
unknown brings about feelings of uncertainty and anxiety.
This makes the large responsibility of adapting employees for change, one
of the most recurring challenges faced by HR professionals.
3. Developing The Leaders of Tomorrow
HR Managers constantly face the challenge of mentoring and developing the future pillars of an
organization. This is one of the trickier challenges HR Managers face because a lot of
employees have a poor relationship with their managers. However, developing your
employees for better roles helps you save the costs of recruiting and training a new
employee.
4. Building a Culture of Continuous Learning
Learning is a key factor in any organization. Upskilling employees help a company to gain an
edge in the market however, it is a difficult challenge in HRM. Likewise, employees feel
stimulated, engaged, and gain development opportunities. However, managers should ensure
that the skills gained by a set of employees serve to enhance their job roles. If the workplace
has a culture of learning and developing oneself this will ensure that every employee grows
with every passing year.
5. Building a Diverse Team
As connectivity improves, the world becomes a smaller place. One of the HR challenges now
faces is the challenge of managing a workforce with diverse backgrounds, ideas, and
experiences. Also, This challenge of HRM comes with the responsibility to build a corporate
work environment that’s welcoming for everyone. Building an inclusive team doesn’t just
bring fresh perspectives into the company but also builds a chain of a diverse network.
6. Managing The Turnover Rates
One of the largest challenges of HRM is the challenge of reducing the turnover rates in
an organization. One solution to this is to create a quality employee experience. High
turnover rates in any organization lead to an increase in cost and use of resources.
Apart from the cost, high turnover rates can also affect the morale of employees in an
organization. Understanding the problems of employees can play a major role in
reducing turnover rates.
The Solution For This Challenge of HRM is:
1. Always conduct exit interviews to truly understand the reason an employee is leaving
the company.
2. Select the right candidate for the job
3. Training as well as the development of employee
4. Be friendly with the employees
5. Think if flexible work hours would work for your company
7. Globalization
HR managers often deal with teams and workforces in geographically
distributed areas. A company’s customer demographic is also more diverse.
HR managers are tasked with devising new plans and strategies to build an
inclusive workforce that leverages the technology of the 21st century. In
addition, managers must embrace the diversity of their workforce, and work
towards reaching a new audience through them.
8. Compliance with Laws and Regulation
Many HR professionals struggle with keeping track of laws as well as
regulations applicable to the company. Also, this one of the crucial challenges
in HRM. Not having the correct policies in place can affect the company’s
growth and resources. Failure to have the right policies might lead to
lawsuits, fines, or even closure of the company at times. As well as
HR professionals should always stay updated with the changes in regulations
ranging from labor laws, working conditions to CSR.
Recent trends of HRM
1. Going mobile
Everything is going mobile these days, not least of all the world of HR and recruiting.
With everyone on the go all of the time, if you hope to catch someone’s attention –
whether for sharing information and training materials or recruiting that perfect
candidate – mobile is the way to go.
Through cloud computing or “software as a service” (SAAS), both of which let you log
in using any number of devices, including mobile phones, HR departments are
finding the technology solutions that work best for their busy organizations.
2. Develop in the human side of business
It's important to understand that happiness in the workplace matters, and that the
human side of business not only impacts the internal organization, its leadership
and employee engagement, but that it also affects customer experience (CX),
nurturing relationships and cultivating partnerships. When not properly managed,
this human factor will negatively impact the bottom line.
3. Enhanced employee engagement
When it comes to employee engagement, it has moved forward a lot from mere
basic activities. The scenario is now digitized and employees are offered lots
of wellness and fitness apps. The goal is to ensure proper work and life
balance.
Building a sustainable workforce by balancing professional and personal lives
helps them to be more productive and then end result will be a profitable
enterprise.
4. Transformation of leadership
Unlike in the past, leadership is not always about leading a team or managing
them. The digitalised world has put forward possibilities of networked
organisations than bring more success than with just delegation of authority.
Individual employees are enabled to initiate leadership on their own and
sometimes even without proper formal authority. The shift of leadership
goals have changed from simply leading people to overall coordination of the
ecosystem of work.
5. Productivity of HR process
Earlier the focus was covering the automation of areas like record keeping,
performance appraisal, resume capture, interview and hiring, compensation and
assessment. However, the focus is now shifted to productivity of the overall HR
process than just automating sections. So significance is now given on the
techniques to enhance productivity like quality people, considering people
analytics, team-centric companies, and optimal usage of hired employees as well as
agile workforce.
6. More millennial
As you develop your HR strategies for the future, it will become more important to
recognize what priorities are targeted for the entire workforce and where there are
differences for each of the generations including millennials and the generations to
follow. A few workforce strategies are somewhat consistent across all or most
generations and include:
• Compensation and benefits with a new focus on innovations in health and
wellbeing.
• Delivering fluid career management, learning and mentoring systems and
workplace flexibility to improve engagement and retention.
7. Advanced people analytics
Companies have moved far ahead from just the back office data to
utilizing the best of people analytics. Reporting through the
dashboards has outdated in most of the companies and focus is
more on predictive models.
Human resource manager
The Human Resource Manager will lead and direct the routine functions of the
Human Resources (HR) department including hiring and interviewing staff,
administering pay, benefits, and leave, and enforcing company policies and practices.
Duties of human resource manager
1. Handling recruitment process:
One of the common role and responsibilities of HR manager is that he/she is the
person who monitors the recruitment process of the company. The HR manager
roles and responsibilities include hiring responsible employees and employers who
can invest their skills and abilities in the overall development of the company.
2. Organization structure and planning:
Roles and responsibilities of HR manager in an organization is to build an
organizational structure. The HR roles and responsibilities help in laying the
foundation for the organization. They participate to form different pillars in an
organization that is responsible for its development.
3. Build HR policies and maintain them:
HR manager responsibilities and duties are to infuse the government’s HR policies in their
organization’s HR policy and keep revising policies for the better performance of
employees.
One must be aware of all the government policies to reflect them in their policy. They keep
track of whether the policies they implemented are working successfully and if not they
take necessary action and inform their reporting executives to check out with their
employees on this. It includes leaves, promotions, regulations, pay, incentives, abscond
policy, working hours, etc.
4. Rewards and Recognition:
It is a human resource manager’s key task to recognize their employees and reward them for
their performance and contribution to the organization. They encourage employees to
perform well. They nominate some members to form a team for this employee reward and
recognition. They make sure that this process underlies with organizational policies.
5. Employee development programs:
Once the hiring process is done, the human resource management will take care of their
training process. They prepare the program depending on the department and the nature
of work and enhance the new hires by making them experience with the organization’s
environment.
Human resource manager responsibilities
• Managing company staff, including coordinating and supporting
the recruitment process
• Onboarding newcomers to the company
• Determining suitable salaries and remuneration
• Providing the necessary support systems for payroll requirements
• Developing adequate induction and training
• Supporting employee opportunities for professional development
• Managing succession planning of staff
• Assisting with the performance management and review process
HR data and analytics
The Human Resource Information Systems we just discussed is essentially a
data-entry system. The data in these systems can be used to make better and
more informed decisions.
HR analytics, also referred to as people analytics, workforce analytics, or talent
analytics, involves gathering together, analyzing, and reporting HR data. It
enables your organization to measure the impact of a range of HR metrics on
overall business performance and make decisions based on data. In other
words, HR analytics is a data-driven approach toward Human Resources
Management.
This reporting focuses on the current and past state of the organization. Using
HR analytics, HR can also make predictions. Examples include workforce
needs, employee turnover intention, the impact of the (recruitment)
candidate experience on customer satisfaction, and many others.
Role of HR analytics
1. Many organizations are starting to realize that the HR analyst role is
crucial to running the most important part of the company — its people.
2. As one of the most vital positions in the human resources world, HR
analysts are given the duty of ensuring that all employees and
managers are informed for data-driven decisions.
3. They’re responsible for researching and presenting data, developing
reports and metrics, conducting meetings to address staffing issues,
writing detailed presentations for management.
4. Troubleshooting data, assisting in the implementation of HR programs,
coaching new team members, designing continuous improvement
initiatives, and ensuring compliance and adherence to policies and
guidelines.
5. HR analysts can also work with HR directors to design an efficient
department budget by ensuring job responsibilities are assigned to
appropriate employees through performance evaluation.
Unit II: Manpower planning
Manpower planning
Manpower Planning is essentially the process of getting the number of
qualified employees and seek to place the right employees in the right job
at the right time, so that an organisation can meet its objectives.
Manpower Planning or Human Resource Planning is a forward looking
function.
Manpower Planning which is also called as Human Resource Planning.

Definition
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.”
Importance of human resource planning/ Manpower planning
I. Assessing Future Personnel Needs:
Whether it is surplus labour or labour shortage, it gives a picture of defective planning or absence
of planning in an organization. A number of organizations, especially public sector units (PSUs)
in India are facing the problem of surplus labour.Thus, it is better to plan well about employees
in advance. Through HRP, one can ensure the employment of proper number and type of
personnel.
II. Foundation for Other HRM Functions:
HRP is the first step in all HRM functions. So, HRP provides the essential information needed for
the other HRM functions like recruitment, selection, training and development, promotion, etc.
III. Coping with Change:
Changes in the business environment like competition, technology, government guidelines, global
market, etc. bring changes in the nature of the job. This means changes in the demand of
personnel, content of job, qualification and experience needed. HRP helps the organization in
adjusting to new changes.
IV. Investment Perspective:
As a result of change in the mindset of management, investment in human resources is viewed as
a better concept in the long run success of the enterprise. Human assets can increase in value as
opposed to physical assets. Thus, HRP is considered important for the proper planning of
V. Expansion and Diversification Plans:
During the expansion and diversification drives, more employees at various levels are
needed. Through proper HRP, an organization comes to know about the exact
requirement of personnel in future plans.
VI. Employee Turnover:
Every organization suffers from the small turnover of labour, sometime or the other. This
is high among young graduates in the private sector. This necessitates again doing
manpower planning for further recruiting and hiring.
VII. Conformity with Government Guidelines:
In order to protect the weaker sections of the society, the Indian Government has
prescribed some norms for organizations to follow. For example, reservations for SC/ST,
BC, physically handicapped, ex-servicemen, etc. in the jobs. While planning for fresh
candidates, HR manager takes into consideration all the Government guidelines.
VIII. Having Highly Talented Manpower Inventory:
Due to changing business environment, jobs have become more challenging and there is
an increasing need for dynamic and ambitious employees to fill the positions. Efficient
HRP is needed for attracting and retaining well qualified, highly skilled and talented
employees.
Succession planning
Succession planning is the process of identifying the critical positions within
your organization and developing action plans for individuals to assume those
positions. Taking a holistic view of current and future goals, this type of
preparation ensures that you have the right people in the right jobs today and
in the years to come.
Succession planning is done in different time frames to ensure the availability
of the right managerial personnel at the right time in the right position for
continuing organizational strength. This shortsightedness leads them to an
alarming situation when they find a shortage of managerial workforce to staff
different positions in the organization, resulting in organizational collapse.
Need of succession planning
(i) A good succession plan ensures that the organisation is prepared with a
plan to support service continuity when the key people leave.
(ii) It ensures a continuous supply of qualified, motivated people (or a process
to identity them), who are prepared to take over when current key persons
leave the organisation.
(iii) It involves an alignment between the organisation’s vision and its human
resources that demonstrates an understanding of the need to have
appropriate staffing to achieve strategic plan.
(iv) A good plan is a commitment to develop career paths for employees which
will facilitate the organisation’s ability to recruit and retain top performing
employees.
(v) A good succession plan involves an external reputation as an employer that
invest in its people and provides opportunities and support for advancement.
(vi) It involves a message to the organisation’s employees that they are
valuable.
Job analysis
Job analysis is a process of collecting information regarding the nature,
operation and responsibilities of a specific job so that the personnel
department become aware of the knowledge, skill and experience that an
individual prospective employee should possess in order to perform that
particular job.
Job analysis is an important step in ensuring that the right candidate is
selected. Job analysis helps the employer in recruitment and selection,
performance management, choosing compensation and benefits, etc. It helps
the employees to have a clear picture of what is actually required of them.
According to Edwin B, Flippo, "Job analysis is the process of studying and
collecting information relating to the operations and responsibilities of
specific job
Features of job analysis
1. The fundamental element of human resource management is job analysis, which is an
organized manner of collecting and analysing the information about job content, context, etc.
2.Job analysis aims to create jobs that are aligned to the organisation's workflow that is
required to be completed. Job analysis is focused on using a proper system to collect
information about the performance of the people in their jobs. This information is used for
creating job descriptions and job specifications.
3. There are a variety of methods and sources of data that can be utilised in executing job
analysis. The actual assessment of job analysis begins from the gathering of information into
the job description and job specifications for the use of HR activities. Proper information
regarding the job requirement is necessary to validate HR actions to the job. To be effective,
HR planning, recruitment and selection, everything must be aligned to the job requirements
and the ability of every individual.
4) Re-Designs Jobs:
Job analysis gathers information on those specific features of the job that makes it unique. Re-
designing jobs is another function that can be performed with the help of the information
gathered through job analysis. However, the basic objective of job analysis is to know the
tasks that are needed to be performed on the job and the individual capabilities that are
required.
Need/ importance of job analysis
• 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.
• 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.
Job description
Job description is an informative documentation of the scope, duties, tasks,
responsibilities and working conditions related to the job listing in the organization
through the process of job analysis. Job description also details the skills and
qualifications that an individual applying for the job needs to possess.
Job description is a systematic, organized and written statement of “who does what
when, where, how and why? and is tangible outcome of job analysis.”
Job specification
Job specification can help hiring managers decide which qualities and requirements
are most important in a candidate. When reading these job specifications, a
candidate can decide whether they have the right experience, education and
characteristics to apply for a specific job.
Job specification features work-experience, educational qualifications, managerial
experience, creative capabilities, emotional balance, leadership skills, adaptability
etc to perform the responsibilities and duties involved in a job.
In simpler terms, job specification is called employee specifications.
Features/ Nature/ Characteristics of job description
1. It should be kept up-to-date necessary amendments and adjustments should be
made from time to time.
2. Job title should be short, definite and suggestive as to indicate the nature of the
work.
3. Primary, Secondary and other duties and responsibilities should clearly be defined.
4. Job specifications should clearly be mentioned.
5. It should be descriptive but short.
6. Limitations of each job and sub job should be spelt out clearly in order to meet the
objectives of the job.
7. All employees must know the contents of the job description.
8. Job description should be easily understandable.
9. Special work conditions and special qualifications of the job should be clearly
explained in job description,
Need/ importance of job description
1. Job descriptions are usually essential for managing people in organizations. Job descriptions are
required for recruitment so that managers and applicants can understand the job role. Job
descriptions are necessary for most people at work.
2. A job description defines a person’s role and accountability.
Without a job description, it is usually challenging for a person to commit to or be held accountable for
a role properly.
Job descriptions improve an organization’s ability to manage people and play roles in the following
ways:
• Clarifies employer expectations for the employee,
• Provides the basis of measuring job performance,
• Provides a clear description of the role for job candidates,
• Provides a structure and discipline for the company to understand and structure all jobs and ensure
necessary activities, duties and responsibilities are covered by one job or another,
• Provides continuity of role parameters irrespective of manager interpretation,
• Enables pay and grading systems to be structured fairly and logically,
• Prevents arbitrary interpretation of role content and limit by employee and employer and manager,
• Provides reference tool for discipline issues,
Features/ Nature/ Characteristics of job specification
1. Educational Qualification
This parameter gives an insight on how qualified a certain individual is. It covers their basic school
education, graduation, masters degree, other certifications etc.
2. Experience
Job specification clearly highlights the experience required in a particular domain for completing a
specific job. It includes work experience which can be from a specific industry, position, duration or in a
particular domain. Managerial experience in handling and managing a team can also be a job
specification criteria required for a particular position
3. Skills & Knowledge
This is an important parameter in job specification especially with knowledge and skill based profiles.
The higher the position in a company, the more niche the skills become and more is the knowledge
required to perform the job. Skills like leadership, communication management, time management,
team management etc. are mentioned.
4. Personality traits and characteristics
The way in which a person behaves in a particular situation, handles complex problems, generic
behaviour etc. are all covered in the characteristics of a job description. It also covers the emotional
intelligence of a person i.e how strong or weak a person is emotionally
Importance/ need of job specification
There are several benefits of having a comprehensive job specification. Some
advantages are listed below:
1. Job specification highlights all the specific details required to perform the job
at its best
2. It gives the HR managers a threshold and a framework on the basis on which
they can identify the best prospects
3. Helps in screening of resumes and saves time when there are multiple
applications by choosing those who are closest to the job specification
4. HR managers can used job specification as a benchmark to evaluate
employees and give them required trainings
5. It also helps companies during performance appraisal and promotions
 BASIS FOR
JOB DESCRIPTION JOB SPECIFICATION
COMPARISON

Meaning Job Description is a concise written The statement which explains the minimum
statement, explaining about what are eligibility requirements, for performing a
the major requirements of a particular particular job is known as Job Specification.
job.

Lists out Job title, duties, tasks and Employee's qualification, skills and abilities.
responsibilities involved in a job.

What is it? It expresses what a prospective It expresses what an applicant must possess for
employee must do when he will get getting selected.
the placement

Prepared from Job Analysis Job Description

Describes Jobs Job Holders
Comprises of Designation, place of work, scope, Educational qualifications, experience, skills,
salary range, working hours, knowledge, age, abilities, work orientation
responsibilities, reporting authority factors, etc.
etc.
Job rotation
Job rotation is the systematic movement of employees from one job to another
within the organization to achieve various human resources objectives such as
orienting new employees, training employees, enhancing career development,
and preventing job boredom or burnout.

Job rotation is defined as a management technique which is used to shift

employee from one job to another in order to make them familiar with all the
verticals of an organization. The objective of job rotation is to enhance the work
experience of the employees, to cross-train them and improve their job
satisfaction.
Features/nature of job rotation
• Job Rotation is a management approach where employees are shifted
between two or more assignments or jobs at regular intervals of time in order
to expose them to all verticals of an organization.
• It is a pre-planned approach with an objective to test the employee skills and
competencies in order to place him or her at the right place.
• In addition to it, it reduces the monotony of the job and gives them a wider
experience and helps them gain more insights.
• Job rotation is a well-planned practice to reduce the boredom of doing same
type of job everyday and explore the hidden potential of an employee.
• The process serves the purpose of both the management and the employees.
It helps management in discovering the talent of employees and determining
what he or she is best at.
• On the other hand, it gives an individual a chance to explore his or her own
interests and gain experience in different fields or operations.
Need/ importance of job rotation
• Job Rotation is one of the best ways to reduce the boredom caused due to boring and
monotonous work schedule and helps to revive the willingness and excitement of the
employees and encourages the employees to perform even better.
• The employee gains a lot of knowledge as he is shifted to new profile. This helps in
enhanced learning and growth.
• It gives new responsibilities to the employee along with lot of learning opportunities.
• It improves the job satisfaction level and thus decreases the attrition rate of the
employees and increases the belongingness towards the organization
• It enhances the career growth of the employees as the employees learn new skills and
are more efficient
• Through job rotation employees are exposed to the working of different departments
and thus this creates a better understanding of the working in an organization.
• Through Job rotation employee interacts with different people of other department this
creates and maintains unity in an organization among employees.
Benefits of Job Rotation
• Raises intrinsic reward potential of a job: Job Rotation is likely to raise intrinsic reward
potential of a job due to different skill and abilities needed to perform it. A worker becomes a
broader based versatile worker due to job rotation.
• Beneficial to the organization: Due to job rotation, the organization stands to gain because of
the versatility of its employees who develop skills due to job rotation. It develops a common
culture because of wide and common exposure to workers.
• Improves inter-departmental co-operation: Periodical job rotation improves inter-
departmental co-operation. Employees understand each other’s problems properly and this
facilitates co-operation among them.
• Motivates employees: Job rotation technique is used for motivating employees in the
organizations. It is suggested as a motivational strategy.
• Reduce Boredom: Job rotation reduce boredom and disinterest among employees. Due to job
rotation, a given employee performs different jobs of more or less the same nature. The employee
gets some variety of work, workplace and peers.
• Develops wide skills among workers: job rotation develops and wide range of skills among
employees. It broadens knowledge and skills of an employee. Personal worth of employee also
improves.
Job enlargement
“Job enlargement involves performing a variety of jobs or operations at the
same time. Thus it involves horizontal job loading as compared to vertical one
in job enrichment.”
“Job enlargement focuses on enlarging jobs by increasing tasks and
responsibilities. It involves expansion of the Scope and width of the job by
means of a horizontal loading of certain closely related operations.”
Job enlargement is a job design technique wherein there is an increase in the
number of tasks associated with a certain job. In other words, it means
increasing the scope of one’s duties and responsibilities.
Importance of job enlargement
Job enlargement is one of the methods of job design, which helps in identifying the skills, duties and responsibilities
of an employee.
With increased responsibility and accountability, the employees do not perform a single job in a monotonous fashion
that can lead to boredom and reduction in working efficiency. Job enlargement makes the individual realize of his
increasing importance in the organization due to the increased scope of work that is being performed.
Job enlargement requires the management of the organization to provide their support in providing appropriate
training to the employees to make them able to adapt to the enlarged job scope.
This can take up time but the final results of this strategy will always be advantageous to the organization.
1. Variety of tasks:
2. Enlarged and Meaningful Work Modules: Sometimes, the jobs are enlarged so that one worker completes a
whole unit of work or a major portion of it. This will increase the satisfaction of the worker as he can see his
contribution to the entire project.
3. Optimum Utilisation of Abilities:
4. Meaningful Feedback: Enlarged jobs allow for more meaningful performance feedback. It will be even more
motivating if it is tied to evaluations and organisational rewards.
Job enrichment
Job enrichment is an effort to add such attributes to a job as a variety of tasks,
freedom to decide and operate, wholesomeness and completeness of the
tasks performed, and performance feedback for the job.
The man at work should feel motivated, and this can be done by making the job
more interesting and challenging.
It simply means, adding a few more motivators to a job to make it more
rewarding. A job is enriched when the nature of the job is made more exciting,
challenging and creative or gives the job holder more decision making,
planning and controlling powers.
Features of Job Enrichment
The characteristics or features of job enrichment are:-
• Nature of Job : Job enrichment is a vertical expansion of the job. The workers
are given jobs, which require higher-level knowledge, skills and
responsibilities. Job enrichment improves the quality of the job.
• Objective : The objective of Job enrichment is to make the job more lively and
challenging. So, the job is a source of motivation for the workers.
• Positive Results : Job enrichment gives positive results if the workers are
highly skilled. This is because workers are given opportunities to show
initiative and innovation while doing their job.
• Direction and Control : Job enrichment encourages self-discipline. It does
not believe in external direction and control.
Need/ importance of job enrichment
Motivate employees. The company encourages job satisfaction and motivation by
providing opportunities to develop skills and self-actualize through various tasks,
challenges, and more autonomy and flexibility.
Develop competence. Employees have more variety in their responsibilities and
duties, giving them the opportunity to learn needed new skills and hone their
current skills.
Reduces boredom. Variation in tasks and roles makes work life more interesting
and challenging. It is important to prevent loss of motivation due to monotonous
and boring work.
Bring out the best potential. Employees get more complex and challenging tasks
and roles, allowing them to reach their full potential.
Better prepared for a more advanced career. Employees learn new skills needed
in careers. In addition, they learn to understand the various roles within their
department, enabling them to be better prepared for a higher position, say as
department head.
Higher commitment. High job satisfaction makes employees more committed to
their work. They are also more involved in the work and roles in their department.
Recruitment
According to Edwin B. Flippo, “It is a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organisation.” He further elaborates it, terming it both negative and positive.
It is the process of finding and attracting capable applicants for the
employment. The process begins when new recruits are sought and ends when
their applicants are submitted. The result is a pool of applicants from which
new employees are selected.
Sources of recruitment
A. Internal Sources:
1. Present Employees:
Promotions and transfers from among the present employees can be a good source of recruitment.
Promotion implies upgrading of an employee to a higher position carrying higher status, pay and
responsibilities. Promotion from among present employees also reduces the require­ment for job training.
Transfer refers to shifting an employee from one job to another without any change in the position/post,
status and responsibilities. Job rotation, involves transfer of employees from one job to another on the
lateral basis.
2. Former Employees: Former employees are another source of applicants for vacancies to be filled up in
the organisation. Retired or retrenched employees may be interested to come back to the company to work
on a part-time basis. Similarly, some former employees who left the organisation for any reason may again
be interested to come back to work. This source has the advantage of hiring people whose performance is
already known to the organisation.
3. Employee Referrals: This is yet another internal source of recruitment. The existing employ­ees refer
their family members, friends and relatives to the company as potential candidates for the vacancies to be
filled up in the organisation.The referred individuals are expected to be similar in type in terms of race and
sex, for example, to those who are already working in the organisation.
4. Previous Applicants: This is considered as internal source in the sense that applications from the
potential candidates are already lying with the organisation. Sometimes, the organisations contact through
mail or messenger these applicants to fill up the vacancies particularly for unskilled or semi- skilled jobs.
B. External sources
1. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled,
clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made
obligatory for the business concerns to notify their vacancies to the employment exchange. In the
past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers
are brought into contact by the employment exchanges.
2. Employment Agencies:
In addition to the government agencies, there are a number of private employment agencies who
register candidates for employment and furnish a list of suitable candi­dates from their data bank
as and when sought by the prospective employers. Generally, these agencies select personnel for
supervisory and higher levels. The main function of these agencies is to invite applications and
short list the suitable candidates for the organisation. Of course, the final decision on selection is
taken by the representatives of the organisation.
3. Advertisement:
Advertisement is perhaps the most widely used method for generating many applications. This is
because its reach is very high. This method of recruitment can be used for jobs like clerical,
technical and managerial. The higher the position in the organisation, the more specialized the
skills or the shorter the supply of that resource in the labour market, the more widely dispersed
the advertisements is likely to be.
4. Campus recruitment
Campus recruitment has relatively been a less popular source for public enterprises in
India. The institutes of management, the institutes of technology, and other premier
institutions pro­vide some of the best material for recruitment at junior management
level. However, it is seen that much of the good resource turnout by these
organizations are not attracted to the public sector, where the need is greater.
5. Deputation:
Another source of recruitment is deputation, i.e., sending an employee to another
organisation for a short duration of two to three years. This method of recruitment is
practiced, in a pretty manner, in the Government Departments and public sector
organisations. Deputation is useful because it provides ready expertise and the
organisation does not have to incur the initial cost of induction and training.
6. Word-of-Mouth:
Some organisations in India also practice the ‘word-of-mouth’ method of recruitment.
In this method, the word is passed around the possible vacancies or openings in the
organisation. Another form of word-of-mouth method of recruitment is “employee-
pinching” i.e., the employees working in another organisation are offered an
attractive offer by the rival organisations.
7. Raiding or Poaching:
Raiding or poaching is another method of recruitment whereby the rival firms
by offering better terms and conditions, try to attract qualified employees to
join them. This raiding is a common feature in the Indian organisations.
Importance of recruitment
Recruitment is important because it brings several benefits to a business. Here
are some examples of how businesses benefit from recruiting:
• Helps companies hire talented individuals: The recruitment process
requires HR professionals to seek out candidates with the right education,
skills and professional experiences for a job opening. They do this by using
applicant tracking software (ATS), conducting technical interviews and other
evaluation tactics.
• Allows companies to hire individuals who value the same
principles: When companies have a strong recruitment process, it helps HR
professionals determine whether candidates value the same principles and
workplace culture that the company provides.
• Connects companies with professionals for future job openings: Even if a
company selects a different candidate, the HR team can stay connected to
other qualified candidates who didn't receive positions. This includes keeping
candidate files and performing outreach activities to previous candidates.
• Ensures that companies hire individuals who can help grow their
business: When recruiters search for candidates, they use recruitment
resources to connect with candidates who hold the skills and qualities that
could contribute to new business initiatives or goals. For example, recruiters
assemble a pool of candidates for an IT branch within the company.
• Determine the present and future requirements of the organization in
conjunction with its personnel planning and job analysis activities.
• Also, Increase the pool of job candidates at minimum cost.
• Help increase the success rate of the selection process by reducing the
number of visibly underqualified or overqualified job applicants.
• Help reduce the probability that job applicants, once recruited and selected,
will leave the organization only after a short period.
E-Recruitment
E-Recruitment, also known as “Online -Recruitment”, is a method used by HR
professionals to assist the recruitment process by using technology or web
based tools. It is an automated process of tracking, attracting, interviewing, and
hiring candidates by utilising online stages and HR software.
Definition: The E-Recruitment, also called as Online Recruitment, is the
process of hiring the potential candidates for the vacant job positions, using the
electronic resources, particularly the internet.

The electronic process of finding, assessing, and recruiting employees is known

as e-recruitment. This process connects organisations with potential
employees through the use of technology, and it has changed how employers
and employees interact. Employers can use e-recruitment to post job openings
and search resumes electronically, and employees can use it to submit
applications and resumes electronically, search job postings, and receive job
alerts.
Benefits of E- Recruitment
1. Saves Time
Earlier when HR managers used to publish job vacancies and depend on word of mouth
for finding job seekers, we’d see how time consuming it used to be to hire a single
potential candidate and that too, in a small locality! With methods of E-recruitment
where resumes of under qualified candidates can be separated and a larger pool of job
seekers can be found, the recruitment process has just got simplified in case of time
usage.
2. Minimizes Hiring Cost
Costs in recruiting are usually high in terms of advertising, travel expenses, third-party
recruiter fees etc. Which is why, the hiring process usually takes up too much time and
its cost increases subsequently. However, with the use of online recruitment methods,
labor costs like these can be minimised by implementing a software which allows both,
the job seekers and recruiters to post free job openings on multiple social platforms
just by one click.
3. Broadens Scope of Candidates
With the use of digital tools and the web, HR recruiters can also increase the scope of
candidates. When they post about a job vacancy, it allows them to dive into the larger
pool of potential candidates which also broadens their selection decisions. As a result,
they are able to select the appropriate candidates both locally and internationally.
4. Filters According to Criteria
Recruitment systems have filtration tools to help recruiters to find the ideal
candidates with competencies that match the job position. Therefore, the
filtration tools provided by E-Recruitment systems speed up the process of
sorting the candidates according to experience, education, competencies, and
many more criteria.
5. Quicker process
The hiring process could be shortened simply by clicking a few catches to
screen, filter, and sort candidates' information and CV. E-recruitment
streamlines the process of welcoming or rejecting candidates one by one and
inserting candidates' information physically is not, at this point needed.
‍
Recruitment matrix
Recruiting metrics are measurements that provide insights into the value
and effectiveness of your recruiting process.
These measurements capture the time and money spent on specific practices as
well as the conversion rates of the various steps of the recruiting funnel.
Recruitment metrics are considered as a measurement of recruitment success
by gathering, analysing, and tracking recruiting data. The result will help the
recruiters to optimize the hiring approach in various terms and aspects in
order to generate more ROI.
Selection
Dale Yoder has defined, “Selection is the process by which candidates for
employment are divided into two classes those who will be offered
employment and those who will not”
Thomas stone “Selection is the process of differentiating between applicants
in order to identify and hire those with a greater likelihood of success on the
jobs. ”
Selection is the process of identifying an individual from a pool of job
applicants with the requisite qualifications and competencies to fill jobs in
the organization. This is an HR process that helps differentiate between
qualified and unqualified applicants by applying various techniques.
The term ‘selection’ comes with the connotation of placing the right person in
the right job. Selection is the process in which various strategies are
employed to help recruiters decide which applicant is best suited for the job.
Selection process
1. Inviting applications: The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job description and job specification are
provided in the advertisement for the job. It attracts a large number of candidates from vari­ous areas.
2. Receiving applications:
Detailed applications are collected from the candidates which provide the necessary information about
personal and professional details of a person. These applications facilitate analysis and comparison of
the candidates.
3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive applications ends, the
applications are sorted out. Incomplete applications get rejected; applicants with un-matching job
specifications are also rejected.
4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications, the written test is
conducted. This test is conducted for understanding the technical knowledge, atti­tude and interest of the
candidates. This process is useful when the number of applicants is large.
Many times, a second chance is given to candidates to prove themselves by conducting another written
test.
5. Psychological tests:
These tests are conducted individually and they help for finding out the indi­vidual quality and skill of a
person. The types of psychological tests are aptitude test, intelligence test, synthetic test and personality
6. Personal interview:
Candidates proving themselves successful through tests are interviewed per­sonally. The interviewers may be
individual or a panel. It generally involves officers from the top management. The candidates are asked
several questions about their experience on another job, their family background, their interests, etc. They
are supposed to describe their expectations from the said job. Their strengths and weaknesses are identified
and noted by the interviewers which help them to take the final decision of selection.
7. Reference check:
Generally, at least two references are asked for by the company from the can­didate. Reference check is a type of
crosscheck for the information provided by the candidate through their application form and during the
interviews.
8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job. In-spite of good performance
in tests and interviews, candidates can be rejected on the basis of their ill health.
9. Final selection:
At this step, the candidate is given the appointment letter to join the organization on a particular date. The
appointment letter specifies the post, title, salary and terms of employment. Generally, initial appointment is
on probation and after specific time period it becomes permanent.
10. Placement:
This is a final step. A suitable job is allocated to the appointed candidate so that they can get the whole idea
about the nature of the job. They can get adjusted to the job and perform well in future with all capacities
and strengths.
Essentials/importance of effective selection
1. Get the right talent
It’s often said that it’s better to hire no one than hire the wrong person.
Having an effective recruitment process means you start with a clear understanding of what the
business needs, then you communicate that well to attract quality candidates, and carefully
select the one who best meets those requirements. It’s more than just finding the most
talented or qualified people. It’s about getting the right talent for the role and the company;
people with the best possible skill-set and the right personality for the team and business.
2. Improve retention
High employee turnover can be a real killer for your company’s long-term prospects, but if your
recruitment and selection processes are effective, you will be far more likely to consistently
pick people who perform well and remain loyal employees.
It's all about using defined methods and assessments (rather than gut feelings) to identify
applicants who will commit to the role and the company’s mission, and then successfully
bringing them into the team.
3. Increase productivity
An efficient, frictionless recruitment experience increases the likelihood that new employees
will be more engaged and motivated from the get-go, which improves their long-term chance
4. Save time and money
No one wants to waste all the effort and money to attract, select, and establish new hires only to
find they aren’t up to scratch or don’t fit, and you’re faced with retraining them, or worse, back at
square one, looking for a replacement.
If your recruitment campaigns are consistently good, you’ll be way more likely to get the right
person each time and have the confidence you can do so whenever the business needs it.
5. Reduce legal risk
The recruitment process forms the base for the employment relationship, so having rigorous,
transparent procedures that you follow for every new hire reduces the chances of finding
yourself in legal wrangles.
That means being sure you hire without discrimination or bias, adhering to privacy and human
rights regulations, ensuring your new employee is entitled to work and that they get a written
employment agreement to consider and sign before they start.
6. Loyalty and Productivity
Loyalty and productivity are linked. With this in mind, recruiters must ask questions that provide
information about a candidate's strengths and weaknesses. Additionally, interviewers should
inquire about a candidate's greatest achievements throughout her career. Generally, loyal
employees will have a track record of striving for excellence, resulting in a more competitive,
innovative and profitable business.
Hurdles/challenges/ barriers of effective selection
• Perception: We all perceive the world differently. Our limited
perceptual ability is obviously a stumbling block to the objective
and rational selection of people.
• Fairness: Barriers of fairness includes discrimination against
religion, region, race or gender etc.
• Stereotyping
This is one of the most common barrier to selection:
All females are basically sincere and honest
All civil servants are boring
Candidates with sincere background are intelligent, etc. This leads to
biased selection of candidates
• Reliability: A reliable test may fail to predict job performance with
precision.
 Gender Issue
• Gender issue also hampers effective selection. In early days, men
predominantly held managerial jobs and if those jobs are viewed as being
primarily masculine in as being primarily masculine in nature, such
stereotyping may produce negative reaction in selecting right candidates.
Age/Race Issue
In may selections, age and race of the candidates are considered rather then
their skills, abilities or experiences. This leads to bias selection
Placement
In the words of Pigors and Myers, “Placement is the determination
of the job to which an accepted candidate is to be assigned and his
assignment to that job.
Placement is the act of offering the job to a finally selected
candidate. It is the act of finally assigning the rank and
responsibility to an employee, identifying him with a particular job.
In very simple words placement means sending the newly employed
person to some department for work. It also implies assigning a
specific rank and responsibility to an individual. Matching the
requirements of the job with the qualifications of a candidate is the
essence of placement.
Features/ Nature of placement
• ‘Placement’ is posting people to jobs which match their abilities. It may be
defined as a process of assigning a specific job to each of the selected candidates.
• It implies matching job responsibilities of a rank with the qualifications of the
selected individual.
• Placement is the assignment or reassignment of an employee to a new job. It
includes the initial assignment of new entrants and the transfer and promotion
of the existing employees.
• The term ‘placement’ is nothing but posting of people to jobs matching their
abilities.
• Placement may be defined as a process of assigning a specific job to each of the
selected candidates.
• It involves assigning a specific rank and responsibility to an individual. It implies
matching the requirements of a job with the qualifications of the candidate.
• Placement helps the new recruit find a job in sync with what has been promised
by the employer at the time of selection.
Gamification
Gamification is adding game mechanics into nongame environments, like a
website, online community, learning management system or business’ intranet
to increase participation. The goal of gamification is to engage with consumers,
employees and partners to inspire collaborate, share and interact.
In an employment or HR context, gamification refers to a process of making
systems, processes or other employment-related activities more enjoyable and
motivating through game design elements. For example, using game elements
to make a mundane activity like benefits enrollment more enjoyable.
Gamification has been applied to recruiting, learning and development,
employee surveys and many more areas of talent management.
Unit III: Induction, training and
compensation
Induction
According to Michael Armstrong “Induction is the process of receiving and
welcoming an employee when he first joins a company and giving him basic
information he needs to settle down quickly and happily and start work”.
Induction is the process of introducing a new employee to his/her job and
organization and giving him all the necessary information required by
him/her to start his work. The purpose of induction is to welcome a new
employee and inform them about the organizational culture, introduce them
to their team and co-workers, give them an understanding of their job, help
them understand how their work will be connected to his co workers and
informing him about the policies of the organization.
Needs/ objectives of Induction
1. To welcome the new employee, relieve his anxieties and make him feel at home.
2. To develop a rapport between the company and the new employee and make him
feel part of the organisation as quickly as possible.
3. To inspire the new employee with a good attitude toward the company and his
job.
4. To acquaint new employees with company goals, history, management, traditions,
policies, department, divisions, products and physical layouts.
5. To communicate to new employee what is expected of them, their responsibilities
and how they should handle themselves.
6. To present the basic information the employee wants to know – rules and
regulations, benefits, payday, procedures, and general practices.
7. To encourage the new employee to have an inquiring mind, show him how to
learn and assist him toward a discipline effort in developing additional knowledge.
8. To provide basic skills, turns and ideas of the business world and help the new
employee in human relations.
Features/ characteristics of the induction
(i) Encouraging employees to ask questions.
(ii) Including information on both technical and social aspects of the job.
(iii) Making the new employee’s manager responsible for the orientation.
(iv) Avoiding embarrassment to the new members.
(v) Arranging formal and informal interaction with managers and peers.
(vi) Providing relocation assistance such as house hunting, information about
the local society, and etc.
(vii) Giving information about the company’s products, services and customers.
(viii) Familiarizing adequately with the culture of the organization such as how
work is done, what matters in the organization, which work- related
behaviours are acceptable or unacceptable and etc.
Process / Procedure/ Steps of conducting an induction
1) Welcoming new employee
The new employee need to be welcomed by the organization when he/ she first joins there. It will develop
a sense of belongingness in both the employee and organization.
2) Determine Information
Organization should make plan about what information they will give to employee. They shouldn't inform
all the information to employee in just one day, it will be like overloading the mind of employee.
3) Method of induction
In this stage, company will decide about how they will introduce everything to employee. Proper time
should be given in this stage to choose appropriate method.
4) Instructor
The instructor who will introduce employee with organization should have experience and knowledge of
handling new employees. There are many questions and doubts in the mind of new employees.
Instructor should be able to clear all those doubts.
5) Evaluation of induction
In the end, organization should evaluate the whole program, and take actions accordingly. Success of
induction program is necessary for both, the employees and organization.
We learned the process of induction in human resource management. If that process is successfully
completed, then the organization will get many benefits in all aspects of business.
Problems faced during induction/ challenges of induction
1. Giving New Starters Too Much Information At Once
It makes sense to want to get your new starters productive as quickly as possible,
however many organizations think this is done by overwhelming workers on day one
and trying to tell them everything in one go. Put yourself in the position of the new
starters. On your first day, it’s natural to have woes and worries about the new role,
along with many questions, so adding the overwhelming feeling of having to process
everything in one day is certainly counter-productive and not a good first experience.
2. Trying To Do Everything On Day One
By jumping into the onboarding process without a clear sense of direction or devoting
enough time to getting new starters up-to-speed, organizations find themselves
struggling to keep their new starters interested, and there will then be a lack of
excitement when engaging with future training materials.
Putting workers through a few hours worth of ‘training’ or leaving them with loads of
content is certainly not going to get them productive quickly, let alone want to engage
with your training material.
3. Getting Lost In The Details
Many organizations find themselves focusing on only the formalities, rather than the
experience for new starters. It’s daunting starting a new role, and your employee
induction training should be offering support and comfort to your workers, and not
feel like a cold, strict experience.
You want to get your new starters excited about joining the company, so your induction
process should offer a more personable and relatable approach, and most importantly
make your new starters feel like they are welcome and can ask questions when they
need to. Rather than just focusing on all of the information you want your workers to
know, also consider the delivery and experience of them.
4. Not Utilizing Digital For Support
It’s understandable to want to free up valuable face-to-face time and that schedules and
high workloads can get in the way of spending enough time in-person to support new
starters. That’s why choosing the right learning platform for your employee induction
training is vital as a permanent point of support for your workers.
Essentials of effective induction
1. A sense of belongingness is created in the mind of the new employee.
2. It gives favourable impression about the organization.
3. It gives chances of increasing loyalty towards the organization and reduction in the
rate of labour turnover.
4. It leads to regular and honest participation, and timely completion of the task by the
employee.
5. It helps in removal of anxiety, bias and confusion about the organizational details.
6. It leads to the development of good and favourable public image of the company.
7. Adjustment with peers, seniors and the work assigned becomes easy.
Induction manual and checklist
The Employee Induction Manual has been developed to explain to all staff members the
employment policies and rules of your organisation.
It is intended to be a guide for new employees, to help them find their feet quickly, feel
welcome and well informed on the policies, customs and practices of your
organisation.
Experience shows the sooner new employees feel settled, the sooner their valuable
contribution can be felt across an organisation.
An employee induction manual is a document that consists of workplace guidelines,
rules, and regulations for a specific company. Employees feel welcomed and adapt
to the workplace routine with ease. It acts as an official communication of how
activities are carried out and the organization's policies.
Training
Training is the process of teaching the new and/or present employees the basic skills
they need to effectively perform their jobs. Alternatively speaking, training is the act of
increasing the knowledge and skill of an employee for doing his/her job.
Training is concerned with increasing the knowledge and skills of employees for doing
specific jobs, and development involves the growth of employees in all aspects.
Whereas training increases job skills, development shapes attitudes of employees.
According to Dale S. Beach, "Training is the organised procedure by which people
learn knowledge and/or skill for a definite purpose".

“Training is the act of increasing the knowledge and skills of an employee for doing a
particular job.” — Edwin B. Flippo
Features of training are as follows:
1) Specific Dimensions: Training is a procedure that has clear and definite dimensions. It
has well-defined beginning and endpoints. Training activities are organised in such a
manner that there is a noticeable progressive development and movement of the process
itself. All the activities in the training process are coordinated cordially.
2) Planned Sequence of Events: Training is a planned series of activities that make it
possible for the trainees to do things that they have not done earlier. The whole process is
supported by the programme and has certain learning objectives.
3) Makes Optimal Use of Opportunities for Learning: It can also be regarded as the
process of providing ample opportunities for the employees to learn and grow. It aims to
increase the enthusiasm of the employees by polishing their skills to do a particular task.
4) Promotes Behavioural Changes: Training helps in bringing a positive change in the
behaviour of employees by imparting special skills and helping them to perform better. It
helps in improving the quality of the social and personal of employees, which enhances
their work quality and leads to self-improvement. Thus, it expands its area of applicability
much broader than the work environment.
5) Enhancing Capabilities: Training maybe not be restricted to acquiring a particular
skill for doing a particular assigned task, but at the same time it is related to the
development of the overall capability to manage complex situations and problems. A
trainee should be aware of how to develop and by using his wisdom, to accomplish the
given task efficiently.
6) Exploring the Inner Self: The most important aspect of the training is that it not
only improves the existing skills but also explores the hidden talent within the
employees and motivates them to perform well. It makes the employees aware of
their strengths & weaknesses. It also aims to help the employees to overcome their
weaknesses and directs them to self-development and growth.
7) Removes mental blocks: Training helps in clearing the doubts and insecurities of
trainees about their job so that they can put their best possible effort to make
maximum utilisation of their potential abilities.
Objectives of training
(i) To provide job related knowledge to the workers.
(ii) To impart skills among the workers systematically so that they may learn quickly.
(iii) To bring about change in the attitudes of the workers towards fellow workers,
supervisor and the organization.
(iv) To improve the productivity of the workers and the organization.
(v) To reduce the number of accidents by providing safety training to the workers,
(vi) To make the workers handle materials, machines and equipment efficiently and
thus to check wastage of time and resources.
(vii) To prepare workers for promotion to higher jobs by imparting them advanced
skills.
Need and importance of training
(i) Higher Productivity:
It is essential to increase productivity and reduce cost of production for meeting
competition in the market. Effective training can help increase productivity of workers
by imparting the required skills.
(ii) Quality Improvement:
The customers have become quality conscious and their requirement keep on changing.
To satisfy the customers, quality of products must be continuously improved through
training of workers.
(iii) Reduction of Learning Time:
Systematic training through trained instructors is essential to reduce the training
period. If the workers learn through trial and error, they will take a longer time and
even may not be able to learn right methods of doing work.
(iv) Industrial Safety:
Trained workers can handle the machines safely. They also know the use of various
safety devices in the factory. Thus, they are less prone to industrial accidents.
(v) Reduction of Turnover and Absenteeism:
Training creates a feeling of confidence in the minds of the workers. It gives them a
security at the workplace. As a result, labour turnover and absenteeism rates are
reduced.
(vi) Technology Update:
Technology is changing at a fast pace. The workers must learn new techniques to make
use of advance technology. Thus, training should be treated as a continuous process to
update the employees in the new methods and procedures.
(vii) Effective Management:
Training can be used as an effective tool of planning and control. It develops skills
among workers and prepares them for handling present and future jobs. It helps in
reducing the costs of supervision, wastages and industrial accidents. It also helps
increase productivity and quality which are the cherished goals of any modern
organization.
Basis of Induction Training
Distinction
1. Meaning Process of Process of providing knowledge
socialization whereby a new and skills for doing
employee is made familiar with a particular job.
his work environment.

2.Place of May be outside the workplace. At the workplace.

training
Once in the lifetime of May be several times.
3. Frequency an employee in an organisation.
A new employee Both new and existing employee
4. Trainee

To help an employee adjust To improve efficiency

5. Purpose to the organization. of employee.
Process of training
Step 1: Decide If Training is Needed
To compete effectively, firms must keep their employees well trained. The first step in the
training process is a basic one, to determine whether a problem can be solved by
training.
The first step in the training process is to determine Training needs. The overall purpose
of the assessment phase is to determine if training is needed and, if so, to provide the
information required to design the training program.
Step 2: Determine What Type of Training is Needed
The employees themselves can provide valuable information on the training they need.
They know what they need/want to make them better at their jobs. Just ask them!
Also, regulatory considerations may require certain training in certain industries and/or
job classifications.
Once the kind of training needed has been determined, it is equally important to
determine what kind of training is not needed.
Step 3: Identifying Goals and Objectives
Once the employees’ training needs have been identified, employers can then prepare for
the training. Clearly stated training objectives would help employers communicate
what they want their employees to do better or stop doing! Learning objectives do not
necessarily have to be written, but they should be clear and thought out before the
training begins for the training to be as successful as possible.
Step 4: Implementing Training
Professionals should conduct training with knowledge and expertise in the given subject
area. Nothing is worse than being in a classroom with an instructor who does not know
what they are supposed to be teaching! Use in-house, experienced talent, or an outside
professional best option. The training should be presented so that its organization and
meaning are clear to employees. An effective training program allows employees to
participate in the training process and practice their skills and/or knowledge.
Step 5: Evaluation of the Training Program
One way to make sure that the training program is accomplishing its goals is by
evaluating the training by both the trainees and the instructors Training should have, as
one of its critical components, a method of measuring the effectiveness of the training.
Methods of training
On the job training
On-the-job training is instruction for employees that takes place at work. OJT typically
involves a combination of observing others and hands-on experience completing tasks
under the supervision of a training manager, coworker or outsourced professional
trainer.
Definition: The On-the-Job Training is a technique wherein the workers, i.e., operative
staff, is given the direct instructions to perform their jobs on the actual work floor. The
workers can learn the skills that are required to be performed in the actual work
conditions and also gets accustomed to the working environment.
Off the job training
Off-the-job training refers to an education method where employees learn more about
their job or the latest advancements in their field at a location away from their
workplace. This type of training essentially helps employees perform their job more
efficiently. Unlike on-the-job training, off-the-job training can take place near the
workplace or somewhere further away, such as at a resort or at a training center. When
employers hold training away from the workplace, it helps minimize distractions
which ensures employees can fully focus on the material they're learning.
On-the-job training methods are as follows:
1. Job rotation:
This training method involves movement of trainee from one job to another gain knowledge and
experience from different job assignments. This method helps the trainee under­stand the
problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as a coach in
training and provides feedback to the trainee. Sometimes the trainee may not get an opportunity
to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains the way of doing the jobs to the
trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the problem.
This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are provided to the
trainees. Usually, students from the engineering and commerce colleges receive this type of
training for a small stipend.
Off the job training
1. Case study method:
Usually case study deals with any problem confronted by a business which can be
solved by an employee. The trainee is given an opportunity to analyze the case
and come out with all possible solutions. This method can enhance analytic and
critical thinking of an employee.
2. Incident method:
Incidents are prepared on the basis of actual situations which happened in different
organizations and each employee in the training group is asked to make decisions
as if it is a real-life situation. Later on, the entire group discusses the incident and
takes decisions related to the incident on the basis of individual and group
decisions.
3. Role play:
In this case also a problem situation is simulated asking the employee to assume
the role of a particular person in the situation. The participant interacts with
other participants assuming different roles. The whole play will be recorded and
trainee gets an opportunity to examine their own performance.
4. In-basket method:
The employees are given information about an imaginary company, its activi­
ties and products, HR employed and all data related to the firm. The trainee
(employee under training) has to make notes, delegate tasks and prepare
schedules within a specified time. This can develop situational judgments and
quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and each group
has to discuss about various activities and functions of an imaginary
organization. They will discuss and decide about various subjects like
production, promotion, pricing etc. This gives result in co-operative decision
making process.
6. Grid training:
It is a continuous and phased programme lasting for six years. It includes
phases of planning development, implementation and evaluation. The grid
takes into consideration parameters like concern for people and concern for
people.
7. Lectures:
This will be a suitable method when the numbers of trainees are quite
large. Lectures can be very much helpful in explaining the concepts and
principles very clearly, and face to face interaction is very much
possible.
8. Simulation:
Under this method an imaginary situation is created and trainees are
asked to act on it. For e.g., assuming the role of a marketing manager
solving the marketing problems or creating a new strategy etc.
9. Management education:
At present universities and management institutes gives great emphasis
on management education. For e.g., Mumbai University has started
bachelors and postgraduate degree in Management. Many management
Institutes provide not only degrees but also hands on experience
having collaboration with business concerns.
Kirkpatrick Model of training evaluation
Level 1: Reaction
The first level of criteria is “reaction,” which measures whether learners find the training
engaging, favorable, and relevant to their jobs. This level is most commonly assessed by an
after-training survey (often referred to as a “smile sheet”) that asks students to rate their
experience.
A crucial component of Level 1 analysis is a focus on the learner versus the trainer. While it
may feel natural for a facilitator to fixate on the training outcome (such as content or learning
environment), the Kirkpatrick Model encourages survey questions that concentrate on the
learner’s takeaways.
Level 2: Learning
Level 2 gauges the learning of each participant based on whether learners acquire the
intended knowledge, skills, attitude, confidence and commitment to the training. Learning can
be evaluated through both formal and informal methods, and should be evaluated through pre-
learning and post-learning assessments to identify accuracy and comprehension.
Level 3: Behavior
One of the most crucial steps in the Kirkpatrick Model, Level 3 measures whether participants
were truly impacted by the learning and if they’re applying what they learn. Assessing
behavioral changes makes it possible to know not only whether the skills were understood, but
if it's logistically possible to use the skills in the workplace.
Level 4: Results
This level focuses on whether or not the targeted outcomes resulted from the training
program, alongside the support and accountability of organizational members.
For each organization, and indeed, each training program, these results will be
different, but can be tracked using Key Performance Indicators. Some examples of
common KPIs are increased sales, decreased workers comp claims, or a higher return
on investments.
Career development
Career development is essential for implementation of career plan. While career plan
sets career path for an employee, career development ensures that the employee is
well developed before he moves up the next higher ladder in the hierarchy.
Career development refers to a set of programmes designed to match an individual’s
needs, abilities, and career goals with current and future opportunities in the
organization. Since career development focuses on future opportunities, it has
essentially a long-term orientation.
Importance of career development
1. Attracts Better Talent:
When there are career growth opportunities and that too with the help of the organization, there is
an attraction of best talents. This golden opportunity of learning and growing within the company,
helps the potential candidates to choose wisely for their careers. More talents joining the
company contribute to better and efficient functioning which further results in gaining desired res
2. Higher Productivity:
The career development learning being delivered in the organization contributes to the up-skilling
of each employee in terms of their personality, tech or non-tech skills, and more. When the
employees are being skilled within the industry, they can give more of their intelligence and
efforts for achieving the desired objective of the company. This extra effort from each pupil is the
result of career development awareness within the company, leading to higher productivity than
ever before.
3. Work Satisfaction to Employees
More the organization is in profit because of the skilled employee, the more it has to give back to
employees in terms of salary and exclusive benefits. The work satisfaction for any employee is
based upon how the employee feels about the workload and the monetary benefits received back.
The assigned task at the workplace seems fun, once the employee shows passion and interest at
work for their learning and personal growth while contributing to the company.
4. More Growth Opportunities:
The career development results in visible growth of the employee, be it the skills or the
personality. They get to explore themselves deeply and understand their abilities in
different areas which helps them to work efficiently.
Growth opportunities are always available for those who are eager to learn and develop
themselves.
5. Relations inside the Organization:
Growth-oriented environment brings positivity, a feeling of dedication, determination,
and accelerated work balance within the organization. This promotes healthy
relation-building and communication between the employees. It leads to
better functioning of the organization at each level with better communication of
ideas resulting in the positive success of the organization.
Compensation
Compensation refers to the remuneration that an employee receives in return for his/her
services to the organization.
Compensation is a systematic approach to providing monetary value to employees in
exchange for work performed. Compensation may achieve several purposes assisting in
recruitment, job performance, and job satisfaction.
Compensation management is an integral part of human resource management and helps in
motivating the employees and improving organizational effectiveness.
According to Dale Yoder, – "Compensation and benefits simply mean paying people for
completing the task allocated to them."
According to Cascio, – "The term compensation signifies paying the direct cash amounts or
an indirect amount via providing benefits to employees to strive for higher productivity in
the organization."
Employees are provided compensation in three different forms:
• Pay: Provided in the form of periodic wage & salary.
• Benefits: Provided in the form of medical facility, insurance facility, recreational benefits etc.
• Incentives: Provided in the form of bonuses, commissions etc. to award the good
performers.
Need or importance of compensation
Attracting Top Talent
People are always looking to put themselves in the best possible position financially. Those who are
worth a specific salary amount often know their value and will seek a position that pays
accordingly. Do research on what your competitor's compensation and benefits packages look like.
Make sure you offer a similar package to your potential employees so that you attract the best
candidates for your company. Hiring the right candidate the first time reduces recruiting costs and
helps free up business owners for other tasks.
Increased Employee Motivation
Properly compensating employees shows you value them as workers and as human beings. When
people feel valued, they feel better about coming in to work. Overall company morale increases and
people are motivated to come to work and do a good job. Additionally, when employees know there
are bonuses or commissions, they are increasingly motivated to deliver grander results. Bonus and
commission compensation plans become a focal point for success.
Boost Employee Loyalty
When employees are being paid well and are happy, they're likely to stay with the company. Proper
compensation is one factor why employees remain with employers. Loyalty means that business
owners don't need to continue to spend time, money and energy on recruiting new candidates.
Employee retention and low-turnover rates are great for employers who cultivate a team that
knows what to do. That team is also motivated to be part of the team, and they get the job done well.
Increased Productivity and Profitability
Happy employees are productive employees. Productivity in relation to compensation
starts with employees feeling valued which increases motivation and loyalty. Not only
are employees more motivated to do a good job, but also, the longer people are with
the company, the more they know and the more efficient they become. All of this
leads to increased productivity.
Job Satisfaction So People Stay
Creating the right compensation plan leads to stronger job satisfaction. The right
compensation plan includes benefits, along with all the other bonuses available.
Employees often boast about holiday bonuses or they keenly watch how the company
stock performs because they have stock options. The right compensation program
invests employees into the work being done, which gives them a stronger sense of
satisfaction when the company succeeds. They know they will be rewarded for their
efforts; everyone likes to be appreciated.
Types of compensation
Compensation can be classified into two categories:
1. Financial Compensation
2. Non-Financial Compensation
1. Financial Compensation:
Financial compensation is most popular and important compensation that is given in the
form of money. It is the most important motivational factor that satisfies employees’
basic needs like food, clothing, etc.
A. Direct Compensation:
Direct compensation means compensating employees by paying them money in the
following forms:
a. Wages-Wages means remuneration paid in cash for the work performed by an
employee.
b. Bonus- Bonus means extra cash paid to an employee for exceeding his performance or
on completion of specified project or target.
Other financial incentives that are directly given to employees in the form of cash.
II. Indirect Compensation (Fringe Benefits):
Dessler refers to indirect compensation as the indirect financial and non- financial
payments employees receive for continuing their employment with the company which
are an important part of every employee’s compensation.
Types of Indirect Compensation:
Below are some of the more popular indirect compensations offered by today’s
organizations.
a. Social Security:
This is a federally administered insurance system. According to law, both employer and
employee must pay into the system, and a certain percentage of the employee’s salary is
paid up to a maximum limit. How much is paid by employer and employee is calculated
on the average monthly wage (weighted towards the later years). It is provided mainly to
give financial security to employees when they retire.
b. Workers’ Compensation:
It is meant to protect employees from loss of income and to cover extra expenses
associated with job-related injuries or illness. The laws generally provide for
replacement of lost income, medical expenses, rehabilitation of some sort of death
benefits to survivors, and lump-sum disability payments.
c. Retirement Plans:
Retirement and pension plans, which provide a source of income to people who have
retired, represent money paid for past services. Private plans can be funded entirely by
the organization or jointly by the organization and the employee during the time of
employment.
d. Paid Vacations:
Typically, an employee must meet a certain length-of-service requirement before
becoming eligible for paid vacation. The time allowed for paid vacations generally
depends on the employee’s length of service.
Unlike holiday policies that usually affect everyone in the same manner, vacation policies
may differ among categories of employees. Most organizations allow employees to take
vacation by the day or week but not in units of less than a day.
2. Non-Financial Compensation:
Non-financial compensation refers to compensating employee not in form of money but in
some other forms that stimulate employees’ morale and also improve his performance.
I. Job security
II. Recognition
III. Participation
IV. Pride in job
V. Delegation of responsibility
VI. Career development opportunities
Cost to company (CTC)
Cost to Company (CTC) is the yearly expenditure that a company spends on an
employee. Each employee spend depends on their salary and variable. CTC is
calculated by adding salary and additional benefits that an employee receives such as
EPF, gratuity, house allowance, food coupons, medical insurance, travel expense and
so on.
CTC means Cost to Company. It is a cost that occurs to the company in a year on each
employee. CTC is referred to the complete package offered to an employee including
additions and deductions such as allowances, fixed or variable incentives, other
special allowances and deductions like PF, Insurance etc. Basically, CTC includes all
the components of the salary structure in the Indian Payroll System. Employers pay a
fixed amount of money to employees known as salary.
CTC = Gross Salary + (Direct Benefits + Indirect Benefits + Saving Contributions)
or deductions
 COMPONENT OF SALARY
DESCRIPTION (ANNUALLY) AMOUNT

Basic Salary Basic Salary 5,00,000

Allowances Dearness Allowance 50,000
House Rent Allowance 2,75,000
Conveyance Allowance 20,000
Overtime Allowance 15,000
Medical Reimbursements 25,000
Gross Salary 8,85,000
Benefits vary from
company to company Medical Insurance 3000

Provident Fund 60,000

(12% of Basic) (12% of 5,00,000)
Electronic Products
(Laptop + Mobile) 1,02,000

Total Benefits 1,63,000

Cost to Company =
Cost to Company Gross Salary + Benefits 10,48,000
Components of CTC
Basic salary
Basic salary is the base income of an individual. It is a fixed part of one's compensation package.
A basic salary depends on the employee’s designation and also the industry in which the employee
works.
Gross salary
Gross salary is the amount calculated by adding up one's basic salary and allowances, before deduction
of taxes and other deductions. It includes bonuses, over-time pay, holiday pay, and other differentials.
Gross Salary = Basic Salary + HRA + Other Allowances
Net salary or take-home salary
Net salary or take-home salary is obtained after deducting income tax at source (TDS) and other
deductions as per the relevant company policy.
Net Salary = Basic Salary + HRA + Allowances - Income Tax - Employer's Provident Fund -
Professional Tax
Allowances
An allowance is an amount received by the employee for meeting service requirements. Allowances are
provided in addition to the basic salary and vary from company to company. Some common types of
allowances are discussed below:
• HRA or House Rent Allowance: It is an amount paid out to employees by companies for
expenses related to rented accommodation.
• Leave Travel Allowance (LTA): LTA is the amount provided by the company to cover
domestic travel expenses of an employee. It does not include the expenses for food,
accommodation, etc. during the travel.
• Conveyance Allowance: This allowance is provided to employees to meet travel
expenses from residence to work.
• Dearness Allowance: DA is a living allowance paid to employees to tackle the effects of
inflation. It is applicable to government employees, public sector employees, and
pensioners only.
Employer Provident fund/EPF or Provident Fund
• Provident fund is an investment both by the employer and the employee each month, the
lump sum amount of which acts as an employee's retirement benefits scheme.
Form 16
• The company issues a Form 16 which contains the details about the salary earned by the
employee and the amount of tax deducted.
The taxpayer is required to submit Form 16 to file the Income Tax returns every financial
year. It acts as the proof of his/her income and tax paid to the government.
Gratuity
• Gratuity is the part of the salary that is received by an employee from the employer for
the services offered by the employee upon him or her leaving the job.
• Though an employee can receive the gratuity amount only after 5 years, it will be
deducted by the employer every year and hence it will get deducted from your CTC.
Life insurance and health insurance: Many companies provide health insurance and life
insurance to their employees, the premium for which is borne by the employer and is
included in the CTC. Hence it has to be deducted while calculating your take home salary.
Motivation
Motivation is an important factor which encourages persons to give their best performance
and help in reaching enterprise goals. A strong positive motivation will enable the
increased output of employee but a negative motivation will reduce their performance. A
key element in personnel management is motivation.
According to Likert, “it is the core of management which shows that every human being
gives him a sense of worth in face-to-face groups which are most important to him. A
supervisor should strive to treat individuals with dignity and a recognition of their
personal worth.”
Berelson and Steiner: “A motive is an inner state that energizes, activates, or moves and
directs or channels behaviour goals.’
Importance of Motivation:
The efforts of management will not bear fruit if the employees are not encouraged to work
more. The motivated employees become an asset to the organisation. The following is the
importance of motivation.
1. High Performance:
Motivated employees will put maximum efforts for achieving organisational goals. The
untapped reservoirs, physical and mental abilities are tapped to the maximum. Better
performance will also result in higher productivity. The cost of production can also be
brought down if productivity is raised. The employees should be offered more incentives
for increasing their performance.
2. Low Employee Turnover and Absenteeism:
When the employees are not satisfied with their job then they will leave it whenever they
get an alternative offer. The dissatisfaction among employees also increases absenteeism.
The employment training of new employees costs dearly to the organisation. When the
employees are satisfied with their jobs and they are well motivated the rate of
absenteeism will also be low because they will try to increase their output.
3. Better Organisational Image:
Those enterprises which offer better monetary and non-monetary facilities to their
employees have a better image among them. Such concerns are successful in attracting
better qualified and experienced persons. Since there is a better man-power to
development programme, the employees will like to join such organisations.
4. Better Industrial Relations:
A good motivational system will create job satisfaction among employees. The employment
will offer those better service conditions and various other incentives. There will be an
atmosphere of confidence among employers and employees.
5. Acceptability to Change:
The changing social and industrial situations will require changes and improvements in
the working of enterprises. There will be a need to introduce new and better methods of
work from time to time. Generally, employees resist changes for fear of an adverse effect
on their employment. When the employees are given various opportunities of
development then they can easily adapt to new situations.
Theories of motivation
Maslow's Hierarchy of Needs Theory
Abraham Maslow first introduced the concept of a hierarchy of needs in his
1943 paper, titled "A Theory of Human Motivation," and again in his
subsequent book, "Motivation and Personality." This hierarchy suggests that
people are motivated to fulfill basic needs before moving on to other, more
advanced needs.
1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air,
water and necessities of life. These needs relate to the survival and maintenance of
human life. They exert tremendous influence on human behaviour. These needs are
to be met first at least partly before higher level needs emerge. Once physiological
needs are satisfied, they no longer motivate the man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and
security needs. These needs find expression in such desires as economic security
and protection from physical dangers. Meeting these needs requires more money
and, hence, the individual is prompted to work more. Like physiological needs,
these become inactive once they are satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction,
companionship, belongingness, etc. It is this socialising and belongingness why
individuals prefer to work in groups and especially older people go to work.
4. Ego and esteem needs:
All humans have a need to be respected, to have self-esteem and self- respect.
Esteem presents the normal human desire to be accepted and valued by
others. Most people have a need for a stable self-respect and self-esteem.
Fulfillment of these needs provides a feeling of self-confidence, achievement,
self-respect, and usefulness, and their non-fulfillment produces feelings such
as inferiority and unhelpfulness. Ego and esteem needs are catered by the
organization through promotion policies, providing better status and
appreciation.
5. Self-actualization needs:
This level of need pertains to what a person’s full potential is and real­izing that
potential. Maslow describes this desire as the desire to become more and
more what one is, to become everything that one is capable of becoming. This
is a broad definition of the need for self-actualization, but when applied to
individuals the need is specific. Very few people have such needs.
Herzberg’s Motivation
Hygiene Theory:
The psychologist Frederick
Herzberg extended the
work of Maslow and
propsed a new motivation
theory popularly known as
Herzberg’s Motivation
Hygiene (Two-Factor)
Theory. Herzberg
conducted a widely
reported motivational study
on 200 accountants and
engineers employed by
firms in and around
Western Pennsylvania.
Herzberg’s Two Factor Theory of Motivation #
1. Hygiene Factors (or Maintenance Factors or Dis-Satisfiers):
The first categories of factors, in Herzberg’s two factor theory are called
hygiene factors. The presence of these factors prevents dissatisfaction and
helps to maintain status quo (hence also called maintenance factors); while
the absence of these factors leads to dissatisfaction (hence also called dis-
satisfiers).
2. Motivational Factors or Satisfiers:
The second category of factors, in Herzberg’s two factor theory is called
motivators or satisfiers. An increase in these factors will motivate people;
while a decrease in these factors will have no effect on motivation.
5. McGregor’s Theory X and Theory Y
Theory X and Theory Y were first explained by McGregor in his book, "The
Human Side of Enterprise," and they refer to two styles of management –
authoritarian (Theory X) and participative (Theory Y).
Theory X: Managers who accept this theory believe that if you feel that
your team members dislike their work, have little motivation, need to be
watched every minute, and are incapable of being accountable for their work,
avoid responsibility and avoid work whenever possible, then you are likely to
use an authoritarian style of management. According to McGregor, this
approach is very "hands-on" and usually involves micromanaging people's
work to ensure that it gets done properly.
Theory Y: Managers who accept this theory believe that if people are willing to
work without supervision, take pride in their work, see it as a challenge, and
want to achieve more, they can direct their own efforts, take ownership of
their work and do it effectively by themselves. These managers use a
decentralized, participative management style.
Unit IV: Performance appraisal
Performance appraisal
Performance appraisal is a method of evaluating the behaviour and
performance of employees in the workplace. This includes appraisal of both
qualitative and quantitative aspects of job performance.
A performance appraisal is a systematic and objective method of judging the
quality of an employee in performing his job and a part of guiding and
managing career development. It is the process to obtain, analyze, and record
the information about the relative worth of an employee to the organization.
In the words of Edwin. B. Flippo, “Performance appraisal is the systematic,
periodic and an impartial rating of an employee’s excellence in matters
pertaining to his present job and his potential for a better job.”
According to Beach, “performance appraisal is the systematic evaluation of the
individual with regard to his or her performance on the job and his potential
for development.”
Objectives of performance appraisal
• Performance Appraisal can be done with following objectives in mind:
• To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.
• To identify the strengths and weaknesses of employees to place right men on
right job.
• To maintain and assess the potential in a person for growth and development.
• To provide a feedback to employees regarding their performance and related
status.
• It serves as a basis for influencing working habits of the employees.
• To review and retain the promotional and other training programmes.
Method of appraising the performance/ Methods of
performance appraisal
Traditional Methods:
1.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.
2.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.
3. 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.
4.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.
5.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. Each statement carries a score or
weight, which is not made known to the rater. The human resource section does
rating for all sets of statements— both positive and negative. The final rating is
done on the basis of all sets of statements. Thus, employee rating in this manner
makes the method more objective. The only problem associated with this method
is that the actual constructing of several evaluative statements also called ‘forced-
choice scales’, takes a lot of time and effort.
6.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.
Modern method of appraisal
1. Management by Objectives (MBO):
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”.
2. 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.
3. Cost Accounting Method:
This method evaluates an employee’s performance from the monetary benefits the
employee yields to his/her organisation. This is ascertained by establishing a
relationship between the costs involved in retaining the employee, and the benefits
an organisation derives from Him/her.
4.Assessment centres
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 HR specialists for 2-3 days.
5. Behaviourally Anchored Rating Scales (BARS):
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
behavioral 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.
Advantages of Performance Appraisal
It is said that performance appraisal is an investment for the company which can be
justified by following advantages:
• Promotion: Performance Appraisal helps the supervisors to chalk out the
promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
• Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. The criteria should
be merit rather than seniority.
• Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyse strengths and weaknesses of employees so that new jobs can be designed
for efficient employees. It also helps in framing future development programmes.
• Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and weaknesses
of selection procedure. Future changes in selection methods can be made in this
regard.
• Communication: For an organization, effective communication between
employees and employers is very important. Through performance appraisal,
communication can be sought. All the above factors ensure effective
communication.
• Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be determined if
the targets are achieved. This very well motivates a person for better job and
helps him to improve his performance in the future.
Disadvantages of performance appraisal
• If the attributes being used in this method are not correctly defined the data
collected won’t be useful.
• Sometimes biases can be an issue in this system.
• Some objective factors can be vague and difficult to pin down. There are no
known scientific methods to measure that.
• Managers sometimes are not qualified enough to assess the abilities of the
employees, thus be detrimental to the growth of an employee.
Promotion
Promotion means the advancement of an employee to a higher job involving more
work, greater responsibility and higher status. It may or may not be associated
with the increment in salary.
Edwin B. Flippo, “A promotion involves a change from one job to another that is
better in terms of status and responsibilities.”

Scott & Spriegal, “A promotion is the transfer of an employee to a job that pays
more money or that enjoys some better status.”
Basis of promotion
1. Seniority as a Basis of Promotion:
Seniority means relative length of service in the same organiza­tion. Seniority of
service become basis for promotion in the orga­nization on the assumption that
someone who has greater length of service in the organization must have
embedded skills and tal­ents. So, he should be promoted. The proponents of this
school of thought also feel that seniors should be respected by the man­agement.
2. Merits as the Basis of Promotion:
In this case an employee is promoted on the basis of excellent and superior
performance in the current job. This is known through performance appraisal
done by the organization. Merit indicates an employee’s knowledge, skills,
abilities and efficiency measured from the employee’s educational qualifications,
experience, job performance and training records.
3. Seniority-Cum-Merit/Merit-Cum-Seniority:
Managements mostly prefer merit as the basis of promotion as they are interested
in enriching organizational effectiveness by enriching its human resources. But
trade unions favour seniority as the sole basis for promotion in order to satisfy
the interests of majority of their members. Both seniority and merit as the bases
of promotions have their advantages and disadvantages.
Hence it is necessary for the organizations to give due weightage to both seniority
and merit while promoting their employees. A combination of both seniority and
merit can be considered as the basis of promotions, there by satisfying the
management for organizational effectiveness and the employees and trade unions
for respecting the length of service.
The main purposes of promotion are:
(a) To recognize and reward the efficiency of an employee.
(b) To attract and retain the services of qualified and competent people.
(c) To increase the effectiveness of the employee and of the organisation.
(d) To motivate employees to higher productivity.
(e) To fill up higher vacancies from within the organisation.
(f) To impress upon those concerned that opportunities are available to them also
in the organisation if they perform well.
(g) To build, loyalty, morale and sense of belongings in the employees.
Open promotion
An open promotion would be one in which applying to the position is free and
open to all members of your company. An organization or a company considers all
individuals within it as a potential candidate and announces it to various
aspirants internally. Open Promotion is a situation wherein every individual of an
organization is eligible for the position.

Closed promotions: An organization or company in which the candidate for higher

position opening or vacancies is restricted and not open for all the individuals,
within the organization and also does not announce the vacancies internally.
Frequently companies follow a combination of both the systems.

Dry promotion: Dry promotions involve all the responsibility of a new title, but
without the benefits that come with it. In other words, the company will ask
more of the employee, but will not provide compensation or recognition in return.
Transfer
Transfer implies movement of an employee from one job to another without any
increase in pay, status or responsibilities.
Transfer is a process of placing employees in positions where they are likely to be
more effective or where they are to get more job satisfaction.
In transfers, there is no change in the responsibility, designation, status or salary. It
is a process of employee’s adjustment with the work, time and place. Transfer
may also be made as a disciplinary action.

According to Dale Yoder “A transfer involves the shifting of an employee from one
job to another without special reference to change in responsibilities or
compensation”. Usually transfer takes place between jobs paying approximately
the same salaries. A slight change in responsibilities, duties and pay increase may
also take place occasionally.
T
Need for transfer
1. To Meet Organisational Needs:
Changes in technology, volume of production, production schedule, product line,
quality of products, organisational structure, etc. necessitate an organisation to
reassign jobs among employees so that right employee is placed on the right job.
2. To Satisfy Employee Needs:
Employees may request for transfer in order to satisfy their desire to work in a
particular department, place and under some superior. Personal problems of
employee like health, family circumstances, and interpersonal conflicts may also
necessitate transfer.
3. To Better Utilize Employee:
When an employee is not performing satisfactorily on one job and management
thinks that his/her capabilities would be utilized better elsewhere, he/she may be
transferred to other job.
4. To Make the Employee More Versatile:
In some organisations like banks, employees after working on a job for a specified
period are transferred to other job with a view to widen their knowledge and skill
and also reduce monotony. This is also called ‘job rotation.
5. To Adjust the Workforce:
Work force can be transferred from the departments / plants where there is less
work to the departments/plants where more work is.
6. To Provide Relief:
Transfers may be made to give relief to the employees who are overburdened or
doing hazardous work for long period.
7. To reduce conflicts – Where employees find it difficult to get along with their
colleagues in a particular section , department or location they could be shifted to
another place to reduce conflict .
8. To punish employees – Transfer may be effected as disciplinary measure – to
shift employees indulging in undesirable activities to remote , far flung areas .
Types of transfer
(A) Production Transfers:
In order to stabilize the employment in the company and avoidance of lay off, an
employee may be transferred from one department to another department. Such a
transfer is known as production transfer.
(B) Replacement Transfers:
An employee with a long service may be transferred in some other department to
replace a person with a shorter service.
(C) Versatility Transfers:
The versatility transfers are made for the purpose of preparing the employees for
production and replacement transfer. An employee is trained on different jobs so as
adjust him on a different job when there is no work at his seat or job.
(D) Shift Transfers:
In case of manufacturing concerns, there are normally three shifts. Usually these shifts
are rotating. In case shift assignments are not rotating, an employee may be
transferred from one sift to another shift.
(E) Remedial Transfers:
In case an employee does not feel comfortable on his job, he may be transferred to
some other job. His initial placement might be faulty; his health might have gone
down; he may not be getting along with his supervisor or workers i.e., he might have
developed personal friction with his boss or fellow employees.
Difference between transfer and promotion
Transfers
• Transfer means shifting of an employee from one place to another.
• There is no change in rank, responsibility and remuneration.
• It involves horizontal movement of the employee.
• Transfer may be for shifting surplus staff from one factory, branch or office of the
organisation to fill the job vacancies in another factory, branch or office.
Promotions
• Promotion means shifting of an employee from a lower post to a higher post.
• It leads to increase in status, responsibility and remuneration.
• It involves a vertical movement of an employee.
• Promotion may be on the basis of merit or seniority of employees to fill a higher post.
Rightsizing
Rightsizing is the process of restructuring a company so it can make a profit
more efficiently and meet updated business objectives. Organizations will
usually rightsized their business by reducing their workforce, reorganizing
upper management, cutting costs, and changing job roles.
Rightsizing is about more than reducing the number of employees. It’s about
getting the organization to the right size for its new business objectives.
Benefits
• Increasing profits
• Eliminating procedural redundancies
• Becoming better staffed to meet goals
• Reducing redundancies in staff
• Becoming more prepared for future company growth
Downsizing
Downsizing is often an emergency measure during times of economic hardship
so companies can maintain profitability. Companies will downsize their
employee workforce to avoid redundancies, thereby reducing overall costs.
Downsizing is the permanent reduction of a company's labor force by removing
unproductive workers or divisions. While it is generally implemented during
times of stress and a decline in revenues, downsizing can also be used to create
leaner and more efficient businesses.
Need for downsize
There are several reasons a company may downsize:
• Recession: Poor economic conditions may spur a business to downsize to
stay afloat or maintain profitability.
• Industry decline: If a business's specific industry is facing a crisis due to
technological or other difficulties, reducing costs may be a necessity.
• Merger: Downsizing may also occur during a merger between two
companies, or in an acquisition of one company by another. Or, if the merger
or acquisition has not yet happened, a company might downsize to appear
like a more viable candidate.
• Competition: If a rival company has reduced costs by reducing its workforce,
a company may feel pressure to do the same to stay competitive.
• No new work: If you find yourself without much to do at work, you might
want to consider starting your job search. Often, managers will stop
delegating work to employees who won’t be with the organization for much
longer.
Attrition
Attrition is the departure of employees from the organization for any reason
(voluntary or involuntary), including resignation, termination, death or
retirement. Attrition is an inevitable part of any business. There will come a time
when an employee wants to leave your company – for either personal or
professional reasons.
Attrition refers to the normal phenomenon of the employees leaving the
company/organization voluntarily (or involuntary) due to reasons which can be
professional or personal pertaining to the company's environment and culture.

Employee attrition is defined as the natural process by which employees

leave the workforce – for example, through resignation for personal
reasons or retirement – and are not immediately replaced.
Reason for attrition
1. Personal motivation: There has been a change in an employee’s personal life that
compels them to switch jobs. New parents might want to move to a city with better
schools, a mid-career professional may want to return to school – these reasons are
endless.
2. Professional motivation: This is where HR could play a massive role in controlling
attrition. An employee might leave because they felt there simply aren’t enough
opportunities for career progression in your organization. This is the case in several
technology companies, where technical talent is forced to fight for managerial
positions as they move up the ladder.
3. Challenges with the workplace: This is another common reason for attrition.
Challenges in the workplace can range from uncollaborative leadership to the lack of
requisite tools for work. Ask for regular feedback, listen to the voice of the employee,
and address any gaps in their employee experience. Typically, someone who is happy
with their job won’t quit if most of their workplace requirements are met.
4. Poor employee-to-job fitment: We have all seen employees who join a company full
of enthusiasm, only to leave a month or two later. This could be an indicator that the
job was not right for that candidate, to begin with.
Reason for attrition
1. Better pay & job opportunities outside the organization.
2. Improper work life balance can cause a high attrition rate.
3. Impolite behaviour of manager and peers & ineffective team management.
4. Lack of employee recognition or limited growth in current role.
5. Stagnancy in career growth & poor quality of work life can lead to
higher attrition rate.
6. Inadequate and poor working conditions leading to lack of motivation.
7. Retirement or untimely death of employees when at job.
8. Reduction of position
Types of attrition
1. Attrition due to retirement: If two or three people have retired from your company
this year, this is statistically too small an employee group to count under attrition.
However, if a sizable chunk of your workforce retires at the same time, this can cause
attrition. Attrition due to retirement shouldn’t be swept under the rug – senior
professionals may choose to retire early or become independent consultants due to
factors other than age.
2. Voluntary attrition: This is the most common type of attrition, where employees
decide to simply quit their jobs. There can be many reasons for voluntary attrition (more
on that later) and most of them are in your control. Company should proactively try to
curb voluntary attrition among high-value talent, as this can bring down your
productivity over time.
3. Involuntary attrition: In this scenario, it is the company and not the employee that
initiates the exit. For example, the employee may have shown instances of misconduct in
the workplace – a common reason for involuntary attrition. Structural reasons could also
cause attrition. Mergers and acquisitions are often followed by a wave of involuntary
attrition.
4. Internal attrition: Here, employees are quitting their jobs in one
department to join another department. In some cases, internal attrition is
desirable, as it routes talent towards more profitable areas. It also ensures
better employee-job fitment.
Measures to overcome high rate of attrition
1. Foster a pleasant work environment
The work environment is the space where employees fulfill their job responsibilities. When it's
pleasant, professionals may feel excited to come to the office, connect with their coworkers
and deliver high-quality work. Build an atmosphere that makes employees feel comfortable
and inspired to develop innovative ideas. For example, you can implement open floor plans,
which can make the managers more accessible and encourage collaboration with coworkers.
2. Appoint the right leadership: Leadership can have a large impact on the experiences
employees have working for an organization. If they feel their managers support them and
offer flexibility, then they may want to continue their tenures. Appoint supervisors that can
develop meaningful connections with associates and make positive impacts on the agency.
When making hiring decisions, you can consider the communication competence and
emotional intelligence of the candidates. Here is a list of questions to ask yourself as you
assess their qualifications:
3. Give employees creative freedom
Creative freedom is the ability to fulfill your occupational tasks as you deem fit. Each of
employees may have different educational and professional backgrounds, which influence
their approaches to their assignments. Instead of requiring them to conform to the
company's standards, consider giving them the option to use their own strategies.
4. Prioritize professional growth
Professional growth empowers staff members to become more competent at
their jobs as their career advances. Provide opportunities for employees to
develop their skill set. They can acknowledge that their employer wants to
see them succeed, which can contribute to the impression that your
company is a positive place to work.
5. Offer competitive compensation and benefits
It can be important for your compensation plans and benefits packages to
reflect the job responsibilities and credentials of the employee. When staff
members recognize they're receiving fair wages, their satisfaction with the
employer may increase.
Unit: V Employment engagement
Employment engagement
According to Scarlett Surveys,
“Employee Engagement is a measurable degree of an employee’s positive or
negative emotional attachment to their job, colleagues and organization
which profoundly influences their willingness to learn & perform at work”.
Employee engagement is the extent that an employee believes in the mission,
purpose and values of an organization and demonstrates that commitment
through their actions as an employee and their attitude towards the
employer and customers.
Types of employee engagement
1. Cognitive Engagement:
This involves the extent to which employees focus on their work tasks. An
actively engaged employee is rarely distracted by small interruptions at
work.
2. Emotional Engagement:
This consists of the here and now experience that the employees have while
doing work. This involves their own feeling of the degree of involvement in
the job.
3. Physical Engagement:
The extent to which employee takes steps for his own development. A
voluntary nomination for a training program can be one of the means of
identifying physical engagement.
Drivers of employee engagement
• Work Environment/Organization Culture - The bond between an employee and the
organization is cemented when the employee identifies with the culture of the
organization. An employee is engaged and motivated to stretch beyond the call of duty
if he/she finds the work environment enabling and supportive.
• Rewards and Recognition - The bottom line is that people work to earn which helps
fulfil ambitions. Equitable pay coupled with rewards and recognition programs
enhances motivation and leads to commitment and engagement.
• Learning and Training Oppurtunities - As Lawyer (2006) put it - “People Enjoy
Learning.” This is especially true in the case of today’s millennial workforce that
constantly looks at enhancing knowledge and skill. Skill and Knowledge enhancement
is not just important for the employees but providing a learning culture is essential for
organizations to remain relevant in the constantly changing business landscape.
• Performance Management - An effective performance management system
contributes positively to employee engagement. Goal setting lies at the root of any
performance management system. Clearly articulated goals, a fair and just means to
judge performance and timely, rational feedback are critical elements in creating a
bond between the employee and his/her organization.
• Leadership - It is a well recorded fact that most resignations happen because the
employee is not satisfied with his/her ‘boss.’ An organization that spends time and effort
in grooming leaders who are aligned to its goals, culture and people invests well. New age
industries have a young and dynamic workforce that looks for autonomy in decision
making, increased responsibility and accountabilities.
• Other Factors -
• Clarity of Purpose and Direction
• Opinions Matter
• Ideas and opinions matter and supported to speak freely. Organization effectively
communicates with employees.
• Proper Tools and Resources
• Workplace Wellness
• Work is Fun
• Opportunities to Learn and Grow
• Freedom to Unleash Passion and Creative Potential: Contributing through special talents,
skills and passion.
• High Trust Environment
Benefits of employee engagement
1: Increases Productivity
Engaged employees = Increased Productivity.
Engaged employees like what they do and find their work meaningful. An engaged
workforce will work harder, faster, and with much more enthusiasm. Moreover, Gallup’s
report for the American workplace shows some exciting results. Satisfied employees are
40% more productive than dissatisfied employees. And, engaged employees are 44%
more effective than happy employees.
2: Improves Retention Rates: According to a 2021 study, 73 percent of employees
would consider leaving their jobs even if they weren’t looking for a job at the moment.
Employees join a company with expectations and desires. And when you fail to provide
those, they start looking for better options. Therefore, engaging employees helps reduce
the cost of turnover and improves retention.
3: Increases Revenue: When employees feel engaged, they naturally go the extra mile to
achieve. They finish their work faster and their capacity to finish tasks also increases.
Higher engagement levels increases a company’s revenue. Exactly two and a half times
more than a company with lower engagement levels.
4: Happy Employees, Happier Customers
Clients do not come first. Employees come first. If you take care of your employees, they
will take care of the clients.
To improve your customer service, increase your engagement level. Engaged employees
take less leaves, are more attentive and friendly. All the things required for building
good customer relationships. Such employees also great advocates and always put the
company’s best face forward.
5:Lowers Absenteeism
A couple of absences are appropriate- sickness, unforeseen events. But repeated absences
can be a result of dissatisfaction and disengagement. Increased absences hamper the
productivity and performance of the employee. This in turn affects the company’s
bottom line.
Providing your employees with a good work-life balance is integral to lower
absenteeism. Good vacation policies, wellness programs are great strategies to reduce
employee absenteeism.
6: Makes them Loyal
A long term benefit of keeping employees engaged is that it makes them loyal. As per the
definition, engaged employees are emotionally attached to the organisation. And when they will
be emotionally attached, they’ll naturally be loyal. Well, just engaging them won’t make them
loyal to you. Appreciation, autonomy, decentralized power distribution are some ways to earn
their loyalty.
7: Better Quality of work
Employees who feel engaged always put in their best while doing something. These employees
are much more motivated than others. They do each task with the same amount of dedication
and precision.
Since they enjoy their job, they’re much more efficient in their work. They constantly come up
with new ideas, learn from mentors, work in teams. Furthermore, they work to up skill by
taking courses, attending seminars and such.
8: Employees Work Harder
These employees work harder than others. They are better focused at work and feel connected to
their work environment. Moreover, research by Dale Carnegie also shows that engaged
employees outperform others by 202%.
When employees don’t feel connected, it’s unlikely they would wish to put in efforts. Connected
or engaged employees clock in for long hours, get their work done on time.
Challenges of employee engagement
• Barrier #1 Lack of Information
When employees are working away from the main hub of central office, there is a danger
that they can fall out of the loop on communications. This information deficit has a
direct impact on employee engagement and motivation. It’s not just news and updates
they’ll be missing out on either. Many businesses will try to boost engagement by
curating a company ethos or culture and ensuring that this is embedded in
communications, training, branding, and marketing.
Barrier #2 Lack of Alignment
One of the major issues in building and retaining employee engagement with remote
workers comes from the inevitable isolation that their job involves. When you are
looking at creating a sense of belonging, it is all too easy for business leaders to focus
primarily on what is right in front of them; the employees and workers they see every
day.
An alignment with company goals is one of the critical drivers of employee engagement.
Without it, there is a particular risk for remote workers that they feel they are working
in isolation rather than being part of a bigger drive for success.
Barrier #3 Lack of Recognition
Feeling underappreciated is one of the key employee engagement issues you need to
consider with a remote employee base. You need to ensure that your reward system is a
good fit for all workers. An early Friday finish and company drinks will be hugely
appealing to your in-house team but can leave remote workers feeling left out and
isolated. This can affect employee engagement and retention in a big way. Work hard to
ensure that any reward system offers visible, tangible benefits for every member of the
team, no matter where they are.
Barrier #4 Lack of Balance
A poor work-life balance is a precursor to poor engagement levels. While it has always
been a challenge to ensure employees manage their working life in a healthy manner, it
is even more of an issue for remote workers. If you can help your home workers
navigate these employee engagement conceptual issues, you’ll be going a long way
towards increasing motivation and productivity levels.
Barrier #5 Lack of Direction
The impact of leadership on employee engagement is well documented, and this is a
situation where you really need to lead from the front. It’s becoming clear that strong,
effective leadership is even more crucial for remote workers.
Models of employee engagement
1. The Deloitte model
The Deloitte model was developed through expansive employee interviews. Their research
identified five core elements as the central pillars of engagement: meaningful work, hands-
on management, a positive work environment, opportunity for growth, and trust in
leadership. The model outlines four key strategies and actions per element that, together,
make up the twenty determining factors behind employee engagement within an
organization. Tying all of these elements together is one guiding principle: a focus on
simplicity.
Here is a more detailed look at each of Deloitte’s elements of engagement:
• Meaningful work: Employees need to be hired for the correct position, given the tools and
autonomy to do their best work as part of a supportive team, and know that their
contributions matter.
• Hands-on management: Teams thrive when given clear and achievable goals, plus regular
coaching. Companies must invest in developing management to ensure that leaders have the
right skills to keep their teams engaged.
• Positive work environment: An inclusive and diverse workplace makes employees feel at
home with flexibility and benefits that support their well-being and work-life balance makes
• Growth opportunity: High-performing employees need room to grow. Creating
opportunities for career development and advancement within the organization
is essential to reducing turnover.
• Trust in leadership: Organizations need a unifying mission that employees can
feel proud to contribute to. Honesty, transparency, and strong leadership are
essential to inspiring employees and encouraging engagement.