Human Resource

Management

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1 Introduction to HRM
 Introduction an importance
 Evolution of HRM, Difference between
Personnel Management and HRM
 Duties, Responsibilities & challenges of
HR Manager, Evaluating various HR
Functions

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2 Manpower Planning
 Objectives of Manpower Planning,
Estimating Manpower requirements,
 Recruitment and Selection
 Succession Planning
 Career Planning
 Downsizing and restructuring

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Unit 3
Job Analysis, Job Evaluation, & Job
Design
 Job Description and Job Specification
 Job Evaluation – Meaning & Methods
 Job Design, Job Enlargement, Job
Enrichment, Job Rotation

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Unit 4 Recruitment and Selection

 Recruitment
 Sources of Recruitment
 Selection Process
 Methods of Selection

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Unit 5 Induction

 Introduction
 Requisites of an Effective Induction
Program
 Importance of Induction
 Problems and Issues in Induction

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 UNIT 6 Training & Development
Objectives of Training
Training Need Analysis
Methods of Training
Training Evaluation

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Unit 7 Compensation Management

 Definition and Importance

 How to decide on the compensation for a
profile
 Various components in compensation

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UNIT 8 & 9
 8 Performance Appraisal:
 Need and Importance of Performance Appraisal
Performance Appraisal Process, Methods of Performance
Appraisal
 9 Employee Relations Management:
 Overview of Employee Relations Management, Importance
of Maintaining Harmonious relations
 Introduction to disputes .

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Books Recommended…
 Books Recommended
 Human Resource Management, Aswathappa, K, Tata
McGraw Hill
 Fundamentals of HRM , Stephen Robbins ,Prentice Hall
 Human resources Management, Dessler, Gary, Prentice
Hall, India
 Human Resource Management, Uday Kumar Haldar,
Juthika Sarkar, Oxford
 Human resource Management, VSP Rao, Excel Books
 HRM ,Snell Bohlander Vohra, Cengage Publicaiton

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HUMAN RESOURCE
MANAGEMENT

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a feeling of anxiety and worry about a SST / HRM /2023
situation or about your life
DISCUSSION -
 Is vaccination compulsory for all new
joiners?
 ( Supreme Court Ruling that Nobody can
be forced to take vaccine but only
recommend and not a mandate - )
 https://indianexpress.com/article/india/supr
eme-court-centre-covid-19-vaccine-policy-
7897266/

SST / HRM /2023

Human Resource Development

HRD Deals with - creating conditions

that enable people to get the best
out themselves and their lives.
• Development is a never ending
process
• Universal goals …..

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 At the Individual level . .
Developing capabilities for a healthy
& a happy living which may include
- a good education or a skill base
(the key to income generation)
- social needs
- self –respect, security
- status & recognition in the society
- good family and a sense of
belongingness to a group, society or
an organisation..SST / HRM /2023
At the Organisational level

To have competent & motivated

people(employees) to ensure
higher levels of
productivity,profitability & growth
of the orgn.
Development of competencies
Culture & commitment
Different mechanism to achieve
HRD goals.
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At the national level ..

Aims at ensuring that the people in

the country live longer & live happily
Free of disease & hunger, have
sufficient skill base to make a living

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The most important and common
objective of HRD at all levels is
Competence (capacity) building for
a healthy and happy living.
Competencies help people to bring
happiness to their lives.
best possible means to achieve a
variety of goals.
powerful means for income-
generation and upgradation of
quality of life in the family,
organization or the country.
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What is HRM ?
Human resource management (HRM) is
concerned with all aspects of how people are
employed, managed and developed in
organizations.

Boxall (2013: 13) noted that: ‘Human resources

include the knowledge, skills, networks and
energies of people and, underpinning them, their
physical and emotional health, intellectual
capabilities, personalities and motivations.’

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HRM Philosophy

 HRM emerged in the 1980s as a

philosophy of how people should be
managed.

 As noted by Storey (2007: 6): ‘In its

generic broad and popular sense it [HRM]
simply refers to any system of people
management.
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Lippit - 1978

 HRD as a system depends on the work

itself which generates a higher degree of
responsibilities for the employees
 Individuals personal & professional
growth
 Improved quality output
 The orgn. as an open system.

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Evolution of HRM
 Period before industrial revolution
 Period of industrial revolution
 Post industrial revolution
 Scientific management
 Hawthorne studies
 Human relations movement
 Theory x and theory y
 Human capital management

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Objectives of HRD
 Provide comprehensive framework &
methods for the development of HR

 To increase the capabilities of an orgn to

recruit, retain & motivate talented
employees

 Enable every employee to discover,

develop the capabilities to the fullest
possible extent. SST / HRM /2023
 Activity -1 –
Discuss the following terms –
Globalization
Workforce Diversity
Quality and Productivity
Labor Shortage
Customer Service
People Skills
Innovation
Work-life Balance / Ethics in Business
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Activity 2

 An extremely competent & intelligent

employee is a great individual performer
but her work style & personality alienate all
of her teammates?
 What would you do?
 CURRENT
TRENDS IN HRM
Remote Work

With the COVID-19 pandemic, remote work

has become the norm for many
organizations.

HRM has adapted to this trend by

implementing policies and practices to
support remote employees, such as remote
onboarding, virtual collaboration tools, and
flexible work arrangements
Employee Well-being

There is a growing emphasis on employee

well-being in HRM.

Organizations are implementing wellness

programs, mental health support initiatives,
and promoting work-life balance to ensure
the overall well-being of their employees.
Diversity, Equity, and Inclusion (DEI)

There is an increased focus on creating

diverse, equitable, and inclusive work
environments.

HRM is actively involved in initiatives to

promote diversity hiring, eliminate bias in
recruitment and selection processes, and
foster inclusive cultures that value and
respect all employees.
Data-Driven HR

HRM is leveraging data and analytics to

make informed decisions. HR analytics helps
organizations gain insights into employee
performance, engagement, turnover, and
other key metrics.

This data-driven approach enables HR

professionals to identify trends, predict future
outcomes, and develop effective strategies.
Talent Management

Organizations are placing greater emphasis

on attracting, developing, and retaining top
talent.

HRM focuses on strategic workforce

planning, succession planning, leadership
development programs, and creating career
growth opportunities to nurture and retain
high-performing employees.
Flexible Work Arrangements

Flexibility in work arrangements is gaining

popularity. HRM is implementing policies
that allow employees to have flexible work
hours, compressed workweeks, job sharing,
and remote work options. This flexibility
enhances work-life balance, increases
employee satisfaction, and improves
retention rates.
Agile HR (responsive)

Organizations are adopting an agile

approach to HR management, which
involves continuous performance
management, frequent feedback, and agile
project management techniques.
Artificial Intelligence (AI) and
Automation
HRM is leveraging AI and automation
technologies to streamline HR processes.

AI-powered tools are used for candidate

screening, employee onboarding,
performance management, and training.
Automation reduces administrative tasks,
enhances efficiency, and enables HR
professionals to focus on strategic initiatives.
Employee Experience

HRM is prioritizing the overall employee

experience throughout the employee lifecycle.
From recruitment to offboarding,

HR professionals are focusing on creating

positive experiences for employees by
enhancing communication, providing
personalized learning and development
opportunities, and fostering a supportive work
environment.
Skills Development and Reskilling

Continuous learning and upskilling are

essential in the rapidly changing business
landscape.

HRM is investing in employee training and

development programs to equip employees
with the skills needed to adapt to new
technologies and market demands.
Data Analytics

HR analytics is becoming more important in

decision-making processes.

Organizations are using data analytics to

identify trends, predict future performance,
and improve HR processes.
FUNCTIONS OF HRM

HRM

MANAGERIAL OPERATIONAL DEVELOPMENTAL ANALYTICAL STRATEGIC

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

 MANAGERIAL
ORGANISING

PLANNING

DIRECTING

CONTROLLING

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

 OPERATIONAL
OSH

COMP& BEN

EMP. RELATIONS

HRIS
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 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

 DEVELOPMENTAL TQM

TRAINING &
DEVELOPMENT
HR POLICY

ORGNANISATIONAL
DEVELOPMENT

PERFORMANCE
CAREER & SUCESSION MANAGEMENT
PLANNING

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

 ANALYTICAL

HR CONSULTATION

HR RESEARCH HR REFORMS

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

 STRATEGIC

OUTSOURCING

HR STRATEGY MERGERS
AQUISITIONS

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Component of HRD
 Performance appraisal
 Potential appraisal
 Career planning
 Feedback & counseling
 Training & development
 Organization development
 Worker development
 Apprentice training

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HRD instruments

 Role analysis
 Performance planning
 Performance analysis
 Induction training
 Training
 Job rotation

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The Correspondence between Individual and
Job Characteristics

Ability
Requirements

Individual Personnel/human
Job
resource outcomes

Rewards
Motivation

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 External Influences
Economic Forces
Labor Public Policy Technology Collective
Labor
Demand Supply Bargaining

Internal Influences
Management Values Management Strategy
Human Resource Human Resource
Activities Individuals Outcomes
Recruitment Ability
Motivation Attraction
Selection
Training and Development Retention
Job Analysis
Job Evaluation Attendance
Performance Appraisal
Compensation Jobs Performance
Protecting Safety and Health Requirements Satisfaction
Labor Relations Rewards
Downsizing
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Other
CURRENT TRENDS IN HRM

Assessment
Bus. Process
Competency centers
Reengineering
mapping Retention
Potential
Balanced score Strategies
Mgt
HR Audit card
HRIS

Life and Career

Counseling Climate Planning
Mentoring surveys Cultural diversity

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Good HR Practices to Business Improvement ( Pfeffer 1994 +)
(YEUNG & BERMAN 1997+)
 Financial Incentives for Excellent  Compressed distribution of
performance salaries across and within levels
 Work Practices that motivate  Promotion from within
employee efforts  Long term perspective
 Selection and selectivity in  Policy Implementation &
recruitment measurement
 Higher than average wages  Coherent view of employment
 ESOPs relations
 Extensive Information sharing
 Decentralisation of decision
making & Empowerment  Building critical orgn. capabilities
 Self managed teams  Enhancing employee satisfaction
 High investment in Training &  Improving customer and
skills development shareholder satisfaction.
 Multiple jobs and job rotation 
 Eliminating of status symbol
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
IMPORTANT HR FUNCTIONS

 HR PLANNING
 RECRUITMENT AND SELECTION
 TRAINING AND DEVELOPMENT
 MOTIVATION FUNCTION
 COMPENSATION AND BENEFITS
 CAREER AND SUCCESSION PLANNING
 PERFORMANCE APPRAISAL
 REWARD AND RECOGNITION
 QUALITY MANAGEMENT
 HR AUDIT

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SST / HRM /2023
SST / HRM /2023
HUMAN RESOURCE PLANNING
“The problem largely comes from the fact that when it
comes to people, everyone is an expert.”-
Fred Luthans

CURRENT WORKFORCE
CURRENT FUTURE WORK
GAP
GAP
WORKFORCE FORCE

The process to determine how organization

should move from current manpower to
desired manpower position
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 MANPOWER PLANNING
 is a process ( including forecasting, developing,
implementing & controlling),

 By which a firms insures that it has the right

number of people and the right kind of people at
the right time for things for which they are
economically most useful.

SST / HRM /2023

Man power planning or human
resource planning
Man power planning or human resource planning

Concerned with determination of quantity of personnel

required in an organisation

The process of forecasting an organisations future demand

and supply of the right people in the right number

In the words of Bruce. P. Colemn, “ man power planning is

a process of determining man power requirement and the
means of meeting these requirements in order to carry out
the integrated plan of the organisation”
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Need and importance
Expansion of plant
 Retirement vacancies
 Reduction in labour turn over
 Reduction labour cost
 Uninterrupted production
 To maintain good and effective employee-
employer relationship


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Objectives
 Accurate assessment of manpower requirement
 Optimum utilisation of human resources
 Inventory in recruitment, selection
 To avoid interruption in production
 To assess the surplus and shortages of human
resources
 To meet the needs of expansion and
diversification programmes

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 Manpower Planning Process
 Analyze
Analyzethe
thecurrent
current
Undertake
Undertake  manpower
manpowersupply,
supply,
training
training&&developmental
developmental
schemes
schemes

Prepareaa Tapvarious
Tap variousrecruitment
recruitment
Prepare
manpowerrecruitment
manpower recruitmentplan
plan sourceswhenever
sources whenever
necessary
necessary
Estimates
Estimates
factorswhich
factors which
generates
generates
/ manpower
SST manpower
HRM /2023

demands
demands
Issues in manpower planning

 Normal retirement

 Actual wastage

 Discharge

 Voluntary wastage

 Transfers or promotions
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Basis for Manpower Planning

 The economic forecast

 Sales forecast

 Growth programs

 The employees market forecast

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Human Resource Planning Steps

 1)Estimate future organizational

structure and manpower requirements

 2)Auditing Human resources

 3)Planning job requirements and job

descriptions

 4)Developing a human resource plan

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Case Study: Workforce Planning at Siemens (UK)

Workforce Planning at Siemens (UK) the engineering and technology services

company involves obtaining answers to three fundamental questions.

What do we have? What do we want? How do we fill the gap?

At the highest level, the corporate people strategy gives the context for
workforce planning, the key objectives of which to ensure that Siemens has the
right level of capability to execute its business strategy. In essence, the process
of workforce planning, is one in which the business strategy converges with
the people strategy.

The workforce planning process starts with a review of the current workforce
derived from SAP data (SAP is business software system). Future requirements
are identified by means of a dialogue between HR business partners and
business unit managers. This enables the skills in job family to be matched to
the business initiatives and provides for the basis for the workforce forecast
SST / HRM /2023
How human resource planning plays a crucial role in various business scenarios, helping
organizations adapt to changes, address challenges, and optimize their workforce
effectively.

Case 1: Expanding Start-Up

Scenario: A tech start-up has been growing rapidly and is planning to

expand its operations to new markets. The company expects a 50%
increase in its workforce over the next year to accommodate the
expansion.

Challenge: The HR department needs to develop a comprehensive

human resource plan to handle the hiring process efficiently, ensuring they
find the right talent to support the company's growth.

Solution:

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Case 2: Seasonal Demand in Retail
Scenario: A retail chain experiences significant fluctuations in
customer demand during peak seasons like holidays or
festivals. They need to adapt their workforce accordingly to
handle the increased workload.

Challenge: The HR department must forecast the hiring needs

for seasonal employees and ensure a smooth on boarding
process during peak times.

Solution:



 SST / HRM /2023
Case 3: Employee Retirement Planning
Scenario: A large organization has a significant number of
employees approaching retirement age. The company wants
to ensure a smooth transition and retain institutional
knowledge.

Challenge: The HR department needs to identify critical

positions at risk due to retirement and develop a succession
plan to fill the knowledge gap.

Solution:

SST / HRM /2023

Case 4: Employee Performance and Development
Scenario: A medium-sized company is experiencing a
decline in employee morale and productivity. The
management believes that investing in employee
development can help improve performance and job
satisfaction.

Challenge: The HR department needs to create a human

resource plan that emphasizes employee training and
development to address the performance issues.

Solution:


 SST / HRM /2023
Case1
 Solution: The HR team should conduct a thorough analysis of the
required positions, skills, and qualifications needed for the new roles.
They can work with the hiring managers to understand the specific
needs of each department and create job descriptions accordingly. The
team can also explore various recruitment channels, such as job portals,
social media, and professional networks, to attract suitable candidates.
Additionally, they should consider employee referral programs to
leverage the existing workforce's network.

Case 2
 Solution: The HR team can analyse historical sales data to identify peak
periods and estimate the additional staff required to handle the increased
customer flow. They should plan for recruitment drives in advance and
may consider temporary staffing agencies to source seasonal employees
quickly. The on boarding process should be streamlined to provide
essential training and resources efficiently.
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 Case 3
 Solution: HR should collaborate with department heads to identify key
roles held by employees nearing retirement. They should assess the
skills and experience required for these positions and identify potential
internal candidates for succession planning. The company can provide
training and development opportunities to groom these employees for
leadership roles. Additionally, HR should consider implementing
knowledge transfer programs where retiring employees mentor and share
their expertise with successors.

 Case 4
 Solution: HR should conduct employee surveys and performance
evaluations to identify specific areas of improvement and skill gaps.
Based on the findings, they can design a comprehensive training
program, including workshops, seminars, online courses, and coaching
sessions. Additionally, the HR team can implement career development
initiatives, such as job rotations, cross-functional projects, and mentorship
programs, to keep employees engaged and motivated. Regular feedback
and performance monitoring can help assess the effectiveness of the
plan. SST / HRM /2023
 SUCCESSION MANAGEMENT
Building Your Talent Bench

 Nothing lasts forever….

Effective Succession Planning…

An alignment of talent development with

your future leadership needs. It's also an
investment in your company's future.
Succession Planning

SST / HRM /2023

What is Succession Planning?
 Succession planning is the process of ensuring that all
critical positions in the organization are always staffed by
preparing employees to take on those roles in case they
become vacant. Succession planning, therefore, involves
identifying necessary skills for key positions and training
employees in those skills.

 Essentially, succession planning is a conscious decision

by an organization to foster and promote the continual
development of employees, and ensure that key positions
maintain some measure of stability, thus enabling an
organization to achieve business objectives.
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Some of the current practices in succession planning
include the following:

 Knowing what jobs at various levels, if removed, would cause a

significant loss to the organization, and which of these jobs
represent the greatest retention risk.

 Knowing which employees are both interested in, and demonstrate

short- and/or long-term potential for, succession into key positions.

 Significant investment to ensure that employees have appropriate

and structured learning, development and training opportunities to
fulfil their potential.

 Aligning succession planning with current and anticipated business

goals and objectives

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 Need for Succession Management

• To develop a talent pipeline pool

• To find out well in advance successors for each
key position in the company
• To ensure readiness of the individuals for taking
over
• To ensure minimum disruption/smooth transition
• To continuously foster organizational effectiveness

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Elements

 Identification of Key Talent

 Assessment of Key Talent
 Generation of Development Plans
 Development Monitoring & Review

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@ P&G

Rigorous leadership program - Build From

Within

Each of the top 50 jobs has three President & Chief Executive,
P&G: From A.G. Lafley to Bob
replacement candidates lined up McDonald in 2009...

Ensure each successor gets the experience

to be ready for the next job

They train people to work in different

countries and businesses so as to develop
a deep bench globally

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@ GE
• Jack Welch (Chairman & CEO, GE) submitted a list of 23
potential CEO candidates to the Management
Development Board in 1994

• Successors reviewed every June and December by

Board and Welch

• No outside candidates considered From Jack Welch to Jeffrey Immelt

in 2000...

• Succession plan was closely tied with management &

leadership development plan

• Leading contenders were put on various proving

grounds & given cross business exposure

• GE Board made regular visits to get impression of the

candidates – natural style and approach

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@ Wipro
• Succession Planning program is called Talent
Review & Planning
Identify employees who are ready to take over the
critical roles immediately and over the next 1-2 or
2-3 years
Azim Premji – succession plan
• Developmental planning for each identified disclosed to board of directors…

internal candidate - job rotation, training,

coaching and performance counseling

• They also keep track of potential external

candidates, and establish touch points for
attracting them at the appropriate time

• Training could be through internal programs or

on-the-job (local as well as global) to gain cross-
functional or cross-geographical exposure
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 @ HUL
 Continuous process of discussing with
people
 Identifying people at different levels
 For the distance they will be able to
travel in their career Nitin Paranjpe joined HUL in
1987 as mgmt trainee, appointed
as CEO & MD in 2008…

 The process is centered on

 Identifying a list of potential candidates
 Placing them in specially chosen and
challenging roles
 Then observing the outcomes

SST / HRM /2023

@ L&T

• Six out of eight Executive Directors on the

board are retiring within three years,
including AM Naik (Chairman & MD, L&T)

Successor yet to be
• The company is putting in place an interim identified for AM Naik…

leadership team to steer the company until

2015

• Two global consultants McKinsey & Bains

are working on a succession plan for the
company

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SST / HRM /2023
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CAREER PLANNING

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Career Planning..
 Means helping the employees to plan their
career in terms of their capacities within
the context of organisational needs.

 It is a management technique for mapping

out the entire career of young employees
in higher skilled, supervisory & managerial
positions.

SST / HRM /2023

CAREER PLANNING -
INTRODUCTION
 Organizational changes & cost constraints
 Employees assuming different roles
 Increase in operative risks require
development of expertise in diff fields
 Automation & new information technology
require employees to upgrade their skills
( perform or perish)
Competencies
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CAREER PLANNING - INTRODUCTION
 Identification of certain sequence of jobs in
a career that represent progression
through the organization.

 A system in which individual evaluate their

abilities & interests, consider alternative
career opportunities, establish career
goals and plan practical developmental
activities.
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Career Planning

 Involves efforts on the part of the orgn.

 To provide avenues for growth.
 Growth accompanied by development
___________________________________
 role of employees in career planning
 efforts on the part of the employees
 think & decide

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Career Anchors

 Managerial competence
 Technical- functional competence
 Search for security
 Desire for developing & creating
something new
 Freedom for independence

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Career Development Cycle

Stage of Decline Exploratory Stage

Maintenance Stage
Establishment Stage

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Career Development Cycle

 Exploratory stage:
- starts when an employees joins an orgn
- gap bet. Ideal orgn & what it is
- neither education nor induction
- swim or sink approach

job assignment

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Career Development Cycle

 Establishment stage:
- once chosen
- regular feedback on his performance
- a good career plan
what is more important ....
- 1st performance appraisal
- 1st promotion
- 1st successfully completed assignment
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Career Development Cycle

 Maintenance stage

- retain the name they have established

- effort at self-development
- mid-career crisis
- entirely different career

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Career Development Cycle

 Stage of decline
- retirement is inevitable
- planning before retirement can ensure
smooth transition
- training program for retiring employees

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Steps to career planning

1. Conduct self-assessment
2. Explore careers that interest you
3. Make decisions and set goals
4. Create an action planner
5. Manage your career

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Organizational Design, Diagnosis,
and Development
 Structural design
 Downsizing
 Re-engineering
 Employee involvement programs
 Work design

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 Downsizing Plan
Types of employee termination
The plan and timetable
The termination plan (positions to be
eliminated after analysis to determine
required jobs and required employees )
Survivor support plan
Communication plan

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SST / HRM /2023
SST / HRM /2023
 INDUSTRIAL DISPUTES ACT, 1947 The Act is enacted
in year 1947 by the parliament of India in order to make
the provisions for the investigation and settlement of
industrial disputes, and for certain other purposes.

 It is labour legislation to protect the workmen against

victimization by employers and to ensure social justice
to both employers and employees. It lays down the
provisions related to lay offs in India.

 Laying off employees is a way to deal with an

employer’s temporary incapacity to provide them with
employment while maintaining the viability of the
business.

SST / HRM /2023

 Industrial Disputes Act (1947): Lay-off, Retrenchment,
and Closure
 Lay-Off, Retrenchment and Closure are three case
scenarios contemplated in the Industrial Disputes Act,
1947, which essentially results in employees losing their
jobs.
 Nonetheless, this is not a pressure tactic from the part of
the employer. These are rather scenarios where situations
compel an employer to resort to denying employment to
their employees.
 The Industrial Disputes Act has come up with formal
definitions and has set out laws which govern these case
scenarios.

SST / HRM /2023

The Termination Plan
 Management training re: termination interviews
 The severance package
 Employee assistance (outplacement,
retraining, extended benefits)
 Termination notice (lead time allowed,
 Method of termination (who and where is the
termination interview, pink slip)
 Communication program (by whom, when)

SST / HRM /2023

Support Plan

 Management training addressing survivor

concerns, morale
 Communication program: to address
group & individual concerns
 Stress counseling
 Employee development plan (training and
career planning

SST / HRM /2023

Other Components

 Restructuring jobs and compensation

packages
 Employee development programs
 Changes in operating

SST / HRM /2023

Job Analysis, Job Evaluation, & Job
Design – UNIT 3
A distinction can be made between jobs and roles.
A job is an organizational unit consisting of a group
of defined tasks or activities to be carried out or
duties to be performed.
A role is the part played by individuals and the
patterns of behaviour expected of them in fulfilling
their work requirements.
Jobs are about tasks, roles are about people.

SST / HRM /2023

SST / HRM /2023
SST / HRM /2023
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SST / HRM /2023
 Factors affecting job design
 Deciding on the content of a job starts from work
requirements, because that is why the job exists.

 When the tasks to be done have been determined it is

then necessary to consider how the jobs can be set up to
provide the maximum degree of intrinsic motivation for
those who have to carry them out with a view to improving
performance and productivity.

 Intrinsic motivation can be enhanced by job design.

SST / HRM /2023

 The most influential model for job design is the job characteristics model
developed by Hackman and Oldham (1974).

 1.Skill variety: the degree to which a job requires an

employee to perform activities that challenge his or her
skills and abilities.
 2 Task identity: the degree to which the job requires
completion of an identifiable piece of work.
 3. Task significance: the degree to which the job outcome
has a substantial impact on others.
 4. Autonomy: the degree to which the job gives an
employee freedom and discretion in scheduling work and
determining how it is performed.
 5. Feedback: the degree to which an employee gets
information about the effectiveness of his or her efforts.

SST / HRM /2023

 Hackman and Oldham explained

 that if the design of a job satisfied the core job

characteristics the employee would perceive that the work
was worthwhile, would feel responsible for the work and
would know if the work had been completed satisfactorily.

 The outcome of this would be high-quality work

performance and high job satisfaction as a result of intrinsic
motivation.

SST / HRM /2023

 JOB DESCRIPTION
NAME: DATE:
DEPT : DESIGNATION:
REPORTING TO: DEPT HEAD :
QUALIFICATION: REQUIRED :
PREFERRED:

DUTIES & RESPONSIBILITIES :( OVERALL PURPOSE OF THE JOB) (TO BE FILLED BY EMP SELF) :

KEY RESULT AREAS : (SUMMARY OF JOB DESCRIOPTION)( TO BE FILLED BY EMP & APPROVED BY
HOD & FINAL REVIEW BY HR& MGMT) :

PREPARED BY APPROVED BY : H O D FINAL REVIEW BY : HR& MGMT

SR NO KEY PERFORMANCE AREAS (TARGETS) ASSESSMENT
SST
(TO BE FILLED BY EMP / HRM /2023
SELF) (TO BE DONE BY HOD)
JOB ANALYSIS

JOB
DESCRIPTION

JOB
SPECIFICATION

JOB
SST / HRM /2023 EVALUATION
JOB ANALYSIS
JOB ANALYSIS

Analysis of job in detail and includes job description and

job specification

IT PROVIDES INFORMATION ON:

• Educational qualifications, training, experience, skills, traits,
attitudes required to perform a job.
• Structure and design of the job
• Plans for future human resource requirement and career
planning
• Placement of the right person on the right job to utilise skills
optimally
• Setting up performance standards
SST / HRM /2023
 Applications of job analysis:

 1)Preparation of job descriptions

 2)Preparation of job specifications
 3)Development of Key Result Areas
(KRAs) which state clear goals and
targets for the job holder
 4)Design of training programs based on
the knowledge and skills required
 5)Development of compensation Structure
 6)Strategic Planning

SST / HRM /2023

 JOB
DESCRIPTION

It is job objective and the principal activities required to

perform the job. This data is useful for the new entrant as
well as for drafting an advertisement for recruitment to the
position.

JOB
SPECIFICATION

It provides information on the educational qualifications,

experience, critical skills, special knowledge, abilities and
aptitudes required to perform the job.

SST / HRM /2023

 JOB
EVALUATION

It is process to determine in a systematic manner the

comparative worth of job in an organization. Job evaluation is
a practical technique, designed to enable trained and
experienced staff to judge the size of one job relative to
others.
It does not directly determine pay levels, but will establish the
basis for an internal ranking of jobs
It aims at “equal pay for equal work”

SST / HRM /2023

 Job Specification
The job specification states the minimum acceptable
qualifications that the incumbent must possess to
perform the job successfully.

Based on the information acquired through job

analysis, the job specification identifies the
knowledge, skills, and abilities needed to do the job
effectively.

Individuals possessing the personal characteristics

identified in the job specification should perform the
job more effectively than individuals lacking these
personal characteristics
The job specification, therefore, is a important
tool in the selection process, for it keeps the
selector’s attention on the list of qualifications
necessary for an incumbent to perform the job
and assists in determining whether candidates
are qualified.
A Job Specification should include:
(i) Physical characteristics, which include health,
strength, endurance, age, height, weight, vision, voice,
eye, hand and foot co-ordination, motor co-ordination,
and colour discrimination.
(ii) Psychological and social characteristics such as
emotional stability, flexibility, decision making ability,
analytical view, mental ability, pleasing manners,
initiative, conversational ability etc.
(iii) Mental Characteristics such as general intelligence,
memory, judgement, ability to concentrate, foresight etc.
(iv) Personal Characteristics such as sex, education,
family background, job experience, hobbies,
extracurricular activities etc.
Job Evaluation and
Compensation
 : Job evaluation is the process of determining the relative
worth of different jobs in an organization with a view to
link compensation, both basic and supplementary, with
the worth of the jobs.

 The worth of a job is determined on the basis of job

characteristics and job holder characteristics. Job
analysis provides both in the forms of job description and
job specification.

SST / HRM /2023

 MRC
JOB DESCRIPTION
NAME: DATE: 03.10.12
DEPT : Laser DESIGNATION: Manager Production
REPORTING TO: DEPT HEAD :
QUALIFICATION: ITI , NCTVT REQUIRED :DME
PREFERRED: B.E (MECH)

DUTIES & RESPONSIBILITIES :: ( OVERALL PURPOSE OF THE JOB) (TO BE FILLED BY EMP
SELF) :
Preparation,monitoring,maintenance,production.
1.Daily,Weekly,Monthly Production planning of Laser/Bending / Flattening.
2.Corrective and preventive actions for Machine & Man power.
3.Monitoring internal production problems and resolve these issues with root cause
analysis.
4.Maintain delivery schedules of regular,new development parts.
5.Prepare internal In process Inspection reports.
6.Prepare Daily,Monthly production reports.
7.Prepare Daily,Monthly Raw mtl. Stock as per customer requirement.
8.Daily,Monthly Conduct organization review meetings regarding Targets
&achievements.
9.Daily requirements of customer & internal customer in morning meeting.
10.To improve Production with minimum mtlhandling.
11.Monitor and control of Production & Daily Despatches.
12.To prepare work instructions ,SOP to avoid defects.

KEY RESULT AREAS: : (SUMMARY OF JOB DESCRIOPTION) ( TO BE FILLED BY EMP &

APPROVED BY HOD & FINAL REVIEW BY HR & MGMT) :

 Processing mtl. according to the BOM ,sets.

 Internal , External Customershould be satisfy in all the terms.
 To reduce wastage in Laser , Bending process.
 To increase productivity.
 New developments in as per customers requirement.

PREPARED BY APPROVED BY : H O D FINAL REVIEW BY : HR &

MGMT
SST / HRM /2023
 Housekeeping Supervisor (Job Description)
Basic Job Description:
Supervise work activities of cleaning personnel to ensure clean, orderly, and areas in
hotels, hospitals, educational institutions, and similar establishments. Assign duties,
inspect work, and investigate complaints regarding housekeeping service and
equipment and take corrective action. May purchase housekeeping supplies and
equipment, take periodic inventories, screen applicants, train new employees, and
recommend dismissals.
Job duties & Tasks
1) Assigns workers their duties and inspects work for conformance to prescribed
standards of cleanliness.
2) Investigates complaints regarding housekeeping service and equipment, and
takes corrective action.
3) Obtains list of areas to be cleaned immediately and list of prospective check-outs
or discharges to prepare work assignments.
4) Coordinates work activities among departments.
5) Conducts orientation training and in-service training to explain policies, work
procedures, and to demonstrate use and maintenance of equipment.
6) Inventories stock to ensure adequate supplies.
7) Evaluates records to forecast department personnel requirements.
8) Makes recommendations to improve service and ensure more efficient operation.
9) Selects and purchases new furnishings.
10) Performs cleaning duties in cases of emergency or staff shortage.
11) Examines building to determine need for repairs or replacement of furniture or
equipment, and makes recommendations to management.
12) Attends staff meetings to discuss company policies and patrons' complaints.
13) Issues supplies and equipment to workers.
14 Establishes standards and procedures for work of housekeeping staff.
15) Records data regarding work assignments, personnel actions, and time cards,
and prepares periodic reports.

Job Activities

1) Coordinating the Work and Activities of Others -- Getting members of a group

to work together to accomplish tasks.
2) Monitoring and Controlling Resources -- Monitoring and controlling resources
and overseeing the spending of money.
3) Guiding, Directing, and Motivating Subordinates -- Providing guidance and
direction to subordinates, including setting performance standards and monitoring
performance.
4) Communicating with Supervisors, Peers, or Subordinates -- Providing
information to supervisors, co-workers, and subordinates by telephone, in written
form, e-mail, or in person. SST / HRM /2023
5) Making Decisions and Solving Problems -- Analyzing information and
evaluating results to choose the best solution and solve problems.
Introduction to job analysis

 The identification of criteria

necessary for successful
performance in a given job

 Identifies KSAs
Job tasks to perform
Skills required
Abilities needed

SST / HRM /2023

 Why Bother??
 The Job Analysis provides the
foundation for almost everything HR
is involved in.
Job Descriptions
Employee Selection
Training
Performance Appraisals
Job Classification
Job Evaluation
Job Design

SST / HRM /2023

Sources of Job Information

 SMEs (Subject Matter Experts)

people who have in-depth knowledge of
specific job under analysis, job skills,
and abilities

Job Incumbent
Supervisors
Job Analyst

SST / HRM /2023

Methods of Job Analysis
 Interviews

 Structured Questionnaire / Inventory

 Direct Observation

 Logbooks / Work Diaries

SST / HRM /2023

Interviews
 Most commonly used method
very adaptable
 Usually conducted with
job incumbents
technical experts
supervisors
 Questions like:
what are your most typical duties?
How long do they take?
How do you do them?
 Con: people may
misrepresent/exaggerate job
SST / HRM /2023
Questionnaire/Inventory

 Lists of many (>200) job characteristics

and activities
rated in term of frequency and importance
 method is most useful for comparing
jobs
 measure of similarity
 very commonly used (esp. with
interviews)
SST / HRM /2023
Observation
 Unobtrusive method
camera; video; audio
 Excellent for understanding and
appreciating conditions under which job
is performed
 Allows analyst to experience aspects of
job that worker may not be aware of
 Not as good for understanding why
behaviors do/do not occur

SST / HRM /2023

Logbook / Worker Diaries

 Worker makes systematic entries in

book outlining activities
 May be useful for jobs that are difficult
to observe
 But, not commonly used
too much variance in writing skills
can exaggerate tasks performed

SST / HRM /2023

Typical Job Analysis
 Read any info available re: job
training manuals
job descriptions
equipment manuals
 Interview middle managers
pick up lingo
understand job importance acc. to
management
get feel for job
develop questions for later interviews

SST / HRM /2023

Typical Job Analysis cont.

 Observe 3 or 4 people doing job

 Schedule interviews with incumbents
and supervisors
 Distribute questionnaires/inventories re:
job duties
 Combine/compile info (most imp.)
must summarize using all info.
no standard procedure; uses creativity

SST / HRM /2023

Why do we do Job Analysis?
 Reduce Role Conflict and Ambiguity
reduce discrepancy between what
organization thinks job is and what job is in
reality
 Design and Evaluation of Training
focus training on most difficult and/or most
frequent elements of job
 Performance Appraisal
criteria for appraisal should be matched
with most important elements of job

SST / HRM /2023

Why do we do Job Analysis?
 Job Design
simplify job with too many disparate activities
 Personnel Selection
once KSAs are identified, job requirements
can be generated
items on job tests can be written based on
JA
 e.g., if job requires high intelligence, give
intelligence test

SST / HRM /2023

Steps..

 Steps in completing a job analysis

Preparation
Sampling
Collecting data
Analyzing data
Preparing a report
Verification

SST / HRM /2023

 Adapting Job Analysis to
Modern Work Methods
 New Directions for Job Analysis
 Trends in work (Examples)
 Teams
 Enlarged jobs
 Personality Factors
 Responses
 Team level tasks
 Competencies
 New lexicon

SST / HRM /2023

Complete Job Analysis
Methods
 Time and Motion Study
 Functional Job Analysis
 Task Inventory
 Critical Incident Technique
 Cognitive Task Analysis

SST / HRM /2023

Important Applications of Job
Analysis

 Job Description
 Performance Appraisal
 Job Evaluation
 Job Design and
Redesign

SST / HRM /2023

 Examples of how an organization may use job
analysis data:

 Workforce planning.
 Performance management.
 Recruitment and selection.
 Career and succession planning.
 Training and development.
 Compensation administration.
 Health, safety and security.
 Employee/labour relations.

SST / HRM /2023

SST / HRM /2023
SST / HRM /2023
SST / HRM /2023
SST / HRM /2023
 Recruitment & Selection
 Recruitment :
a process of identifying & attracting the right
candidates for the job.

 Selection :
a process by which an orgn. chooses from the
list who meet the criterion for the position.

SST / HRM /2023

Recruitment

 Searching
 Identifying eligible candidates
 Stimulating them to apply

 Pen Picture
 An account of positives and negatives of a
person or strengths and weaknesses

SST / HRM /2023

Factors Affecting Recruitment
(INTERNAL)
 Organisation Size  Recruitment Policy
 Organisation Image  HRP,
 Image of the Job  HRIS
 Organisation  Age of Organisation
Growth Rate  Location
 Pay Structure
 Working Conditions
 Recruitment Costs
SST / HRM /2023
Factors Affecting Recruitment
(EXTERNAL)
 Supply & Demand Trade Unions
Employment Rate Competitors
Industry  Socio Economic
 Labour Market Factors
 Legal Factors
Government
Policies
 Political Conditions
SST / HRM /2023
 Recruitment - Sources of Recruitment
Internal

Promotion
Transfer
Job Posting
Ex-Employees
Employee/Union
Referrals
SST / HRM /2023
EXTERNAL
Advertisement /Print Media
Internet Recruitment
Employment Exchanges
Word of Mouth
Applicant Databases
Campus recruitments Walk In
Job Fairs
Job Websites
Labour Contractors
Deputation
Manpower Consultants
Private Recruitment Agencies

SST / HRM /2023

All the Government and Public Sector Units advertise in print
media. Advertisements can be released in newspapers as well
as trade, industry and professional journals.

The advertisements need to contain full job specification and if

required, parts of job description, so that it evokes response
from candidates of target segment only. Otherwise, the
scrutiny process will become time- consuming in taking out
unwanted applications.

If you are willing to consider wider choices by giving relaxation

in some KSA, you need to specify the same. For instance, you
may require an accounting professional and qualification as
CA (Inter). To widen your choice, you may put CA (Inter) or
CMA (Inter) as desired qualification and if you want to enlarge
the base, you may add “outstanding people with M.Com
SST / HRM /2023
qualification may also be considered”
 Selection
 Interview – most common method

 Psychometric testing – assessing the personality of

the applicants – will they fit in?

 Aptitude testing – assessing the skills

of applicants

 In-tray exercise – activity based around what the

applicant will be doing, e.g. writing a letter to a
disgruntled customer

 Presentation – looking for different skills

SST / HRM /2023

as well as the ideas of the candidate

 Selection
 The process of assessing candidates
and appointing a post holder
 Applicants short listed –
most suitable candidates selected
 Selection process –
varies according to organisation:

SST / HRM /2023

SST / HRM /2023
SST / HRM /2023
SST / HRM /2023
SST / HRM /2023
 What is Job Enrichment?
 Job enrichment is a part of job design that
focuses on adding certain skills, extra
tasks or making the job a little more
interesting to make it more motivating.
 The purpose of job enrichment in HRM is
to make a boring job more appealing to
the employees to help them engage in it.
It involves adding motivational factors to a
job to increase employee satisfaction and
motivation.
SST / HRM /2023
 The idea of job enrichment is strengthened by Frederick
Herzberg who gave his two-factor theory of motivation in
1959.
 Two-Factor Theory of Motivation
 According to this theory, some factors like praise,
recognition, the job nature, or a sense of achievement add
more meaning to a job. These factors are called
motivators that allow employees to do their job with
satisfaction. The absence of certain factors results in job
dissatisfaction. These are known as hygiene factors.
 A few examples include salary, job security, work
conditions, and company policies. The absence of these
hygiene factors, according to him, is likely to minimize
satisfaction in employees regarding their job. An ideal
situation for the workplace is to have high motivation and
high hygiene.
SST / HRM /2023
 Job Enlargement Job enlargement is the
horizontal expansion of jobs by increasing the
number and variety of tasks an individual
performs, with the intention of bolstering the
motivational value of the job (Pierce & Dunham,
1976).

 Job enlargement is a form of job redesign (Job

Design) that has often been introduced as a
means of counteracting monotony and boredom.
It is distinct from job enrichment, which vertically
expands jobs by building in autonomy and
challenge.
SST / HRM /2023
 Induction
Requisites
Importance
Steps
Problems and Issues

SST / HRM /2023

Defining Induction

(Armstrong, 2006, p. 471) defined induction

as a “process of receiving and welcoming

employee’s when they first join a company
and to give them the basic information they
need to settle down quickly and happily and
to start work.

SST / HRM /2023

Defining Induction
 (Davis, 1994, p25) stated ‘’Effective
induction is concerned with motivating
people to become productive in the shortest
time and to stay with your organisation’’

 Furthermore, (Snell, 2006) concludes

induction or ‘’onboarding process enables
new team members to gain access to
information, tools and materials needed to
perform their function more quickly’’
SST / HRM /2023
 The Induction Process
used to describe a procedure taken by an organisation
to gradually improve the effectiveness of a new
employee (SHRM).
’the whole process whereby new employees in an
organisation adjust to their new roles and
responsibilities within a new working environment’
an important time for employees to gain an
understanding of company’s strategic goals and
objectives. An article by Forbes (2015) found that
companies who facilitate an induction process are far
more likely to retain employees especially in the first
few months in a new job. SST / HRM /2023
Why is this induction process so important?
Wanous (1992)
starting a new job can be a stressful experience
especially when it means taking on new
responsibilities within a new environment and, the
need to memorize new terminology and company
procedures.

To ease this pressure, the induction process works in

a way to welcome new employees, ensuring that they
are settled into their new roles and to verify that new
employee is receiving the appropriate knowledge and
support from the company to successfully perform.
SST / HRM /2023
 For successful induction, (SHRM, 2010)
suggested there are four levels of on boarding new
employees these are as follows: 1) Compliance, 2)
Clarification, 3) Culture and 4) Connection.
Compliance refers to the teaching of company rules
and procedures.
Clarification is concerned with ensuring new
employees fully understand their role and company
expectations. Culture includes the understanding of
company norms and values. Finally, Connection
focuses on the building of social networks and
introducing to colleagues. The extent to which each
of these levels is implemented will depend on the
overall success of the induction process. (SHRM, 2010).
SST / HRM /2023
WHAT IS TRAINING

THE NEED FOR TRAINING

TRAINING NEED ANALYSIS

TYPES OF TRAINING

PROCESS OF TRAINING
SST / HRM /2023
WHAT IS TRAINING?
What to call it ?

TRAINING
EDUCATION
LEARNING
EMPOWERING
COMPETENCE

SST / HRM /2023

 Training
 A “planned process” to modify
attitude, knowledge or skill behaviour
through learning experience to
achieve “effective performance”.

 Planned process & effective

performance

SST / HRM /2023

 Education

Activities which aim at developing

the knowledge, skills, moral values
and understanding required in all
aspects of life.

Moral values and understanding

Learning

SST / HRM /2023

Learning

 Often regarded as a more or less

permanent change in behaviour – as
a result of experience. Learning is
general term that can embrace all
experiences.
 Training & Education tend to focus
on planned events, outside these
boundaries, we can learn
accidentally, intuitively or thru’
 Self-development.
 Learning is free of edges.
SST / HRM /2023
Empowering

Strategic technique that gives

power to another and also
authorizes another to perform
effectively in the real world.

SST / HRM /2023

It means assisting learners to -

Acquire “knowledge”
 Gain “understanding”
 “apply” understanding
 “transfer” their knowledge &
skill to unique situations.
Providing the resources to manage
the whole process.

SST / HRM /2023

To empower someone to learn could
mean

 Providing them with resources to

decide their learning needs
 Select their learning providers /
suppliers
 Transfer the knowledge & skills to new
work situations
 To provide the means the means to
achieve the ends

SST / HRM /2023

Competence

Sufficiency of means for living and

ability to do.
Competence = Knowledge+ Skills +
Experience + Personal qualities

SST / HRM /2023

WHAT TRAINING CAN DO

 help secure repeat business;

 increase profits;
 increase productivity;
 enhance group work at all levels;

SST / HRM /2023

create greater employee
versatility;
improve communications;
improve morale;
improve co-operation;
increase job satisfaction;
lower costs;
lower personal injury rate;
SST / HRM /2023
WHAT TRAINING CAN NOT DO

solve problems of faulty

organization;
remedy unsound initial selection;
guarantee increased performance;
teach anyone anything, if a person
doesn’t wish to learn.

SST / HRM /2023

WHAT TRAINING SHOULD DO

 should bring about change;

 is a process;
 is an integral pert of company’s strategy;
 must be inspirational;
 is for everyone in the company;
 should be easily understood;
 should include tools & written material;
 should be geared to the target group;
 should be holistic

SST / HRM /2023

 TRAINING NEEDS
IDENTIFICATION

SST / HRM /2023

The need for training exists

when there is a gap between

the actual & the required

performance.

SST / HRM /2023

THE PERFORMANCE GAP CURVE

REQUIRED PERFORMANCE
PERFORMANCE

PERFORMANCE OR TRAINING GAP

ACTUAL PERFORMANCE

TIME

SST / HRM /2023

Describe what is meant by actual
& required performance

Whether discrepancies in
knowledge & skills or

Due to personality clashes

SST / HRM /2023

 2. PROVIDE 1. MOTIVATE
RESOURCES
ATTITUDE OF A PERSON

4. TRAIN & 3. REDESIG

DEVELOP JOB

HIGH LOW

SST / HRM /2023

 Poor motivation: so motivate.

 Inadequate resources to carry out task:

 so provide resources.

 Wrong person for job, or wrong job for

person: so redesign the job, transfer
or dismiss the person.

 Lack of training & development

opportunities: so train & develop.
SST / HRM /2023
THE TRAINING CYCLE
(TRAINING PROCESS / FUNCTION)
3. THE DESIGNER / 4. IMPLEMENTOR ROLE
PLANNER ROLE
Design, plan, obtain ( IMPLEMENT OR TEST
resources & organise TRAINING)
training The learning needs – how
interventions to close the
(Plan use of resources, plan performance gap
/organize events, design
training interventions in
detail - create climate for
change & learning)

2. DIAGNOSTIC ROLE 1. IDENTIFIER /

Prepare training objectives EVALUATOR ROLE
and strategies (Think Identify training needs
logically, Think / evaluate results of
creatively, Analyse, previous training
Reflect) activity
training objectives (Listen, Observe, Question,
SST / HRM /2023 Record, Evaluate
training policy
Stages 2 & 3
You are preparing
the facts &
organising the
training activity.

Stages 1 & 4
You are
interpreting &
dealing with the
needs of the
business.
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THE TRAINING NEEDS
IDENTIFICATION AND ANLYSIS
TRAINING NEEDS IDENTIFICATION

Detects & specifies the training &

development needs of individuals
within organizations & of the
organization as a whole.

SST / HRM /2023

TRAINING NEEDS ANALYSIS

Follows on from need identification &

determines the most effective &
appropriate ways in which the need can
be met.

Leading further to decisions – whether

there should be training or not.
( Need and not a want)

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WHY TRAINING NEED IDENTIFICATION &
ANALYSIS
 Confirms or otherwise the stated
problem.
 Identifies a problem of training.
 Assures effective direction to training
 Cost effective (appropriate & effective
action)

SST / HRM /2023

The benefits

 It pinpoints the problem (s).

 It identifies the size of the problem.
 It identifies the scale of the need.
 It indicated the type of the solution.
It provides training objectives.

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TRAINING NEED ANALYSIS
TECHNIQUES
 CHECK LIST
 STRUCTURED & UNSTRUCTERED INTERVIEWS
 SURVEY TECHNIQUES
 APPRAISAL TECHNIQUES
 ASSESSMENT CENTERS
 MANAGEMENT AUDIT
 JOB ANALYSIS
 QUESTIONNAIRE
 SURVEY
 INTERVIEWING
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TYPES OF TRAINING

 ON -THE-JOB TRAINING
 OFF-THE JOB TRAINING

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ON-THE-JOB TRAINING

 ONE- TO ONE TRAINING

 COACHING
 MENTORING
 AUDIO MATERIAL
 VIDEO MATERIAL
 COMPUTER BASED

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OFF-THE JOB TRAINING

WORKSHOPS

CONFERENCES

 SEMINARS

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GROUP TRAINING METHODS

 PRESENTATION/ LECTURES
 DISCUSSIONS
 DEMONSTRATIONS
 QUESTION & ANSWER
 CASE STUDIES
 ROLE PLAYS
 ACTIVITIES -
 ICEBREAKERS / GAMES
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 WHAT IS EVALUATION?
Evaluation is the process of
establishing the worth of
something.
The “worth” means
 the value
 merit or excellence of the
thing.
(is actually someone’s opinion)
SST / HRM /2023
This opinion is usually based
upon
information
comparisons
experience

 The process of evaluation provides

information about the worth of
something.

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EVALUATION OF TRAINING

Evaluation of training is a process of

gathering information
with which to make decisions
about training activities.

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PURPOSE OF EVALUATION

the process of training

the changes attributable
increase the effectiveness
effective way of achieving some
form of Orgn. Change

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 FEEDBACK
CONTROL
INTERVENTION

PURPOSE OF EVALUATION

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Feedback - on the effectiveness of
training
 Learning situation / suitability for its
purpose
 Before & after levels of knowledge,
skills, attitudes
 Description of those for whom the
activities would most or least
benefit
 Assessment of the objectives set for
the programme - (by the designers,
the participants, the line managers,
& the orgn.) SST / HRM /2023
 Control - over the provisions of
training

 (relate the training policy & practice to

orgn. goals)
 Estimate of the worth to the orgn
 output from the training activities
 Estimate of the cost of providing the
training activities
 Comparative study of different
methods of solving the problems,
different combinations of training
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Intervention - into the orgn.
process that affect training

 Encourage the supervisors or line

managers to be closely involved in pre
& post briefings of participants
 Change the ways in which participants
are selected for learning activities
 Encourage the supervisors in the use
of learning contract & action plans to
help integrate training into work
procedures – ensuring “transfer of
learning”.
 Facilitate on-the-job activities –
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leading to continuous development.

 EVALUATING INPUTS TO TRAINING

CONSOLIDATED AVERAGE 3.87

DIMENSIONS RATING total 5
S.No TRAINER's AVERAGE 3.99 5 4.5
1 To what extent did the trainer clarify the objective of the 4.67 5 4
2 How do you rate the trainer’s level of interaction? 4.28 5 3.5
3 To what extent did the trainer satisfactorily answer your 3.56 5 3
4 Was the trainer able to help you learn through 4.28 5 2.5
5 Did you find the trainer's pace of conducting the session 3.56 5 2
6 How do your rate the overall ability of the trainer? 4.28 5 1.5
CONTENT'S AVERAGE 3.45 5 1
7 Did you find the content relevant to your job? 4.00 5
0.5
8 To what extent can you utilize the learning from this 4.00 5
0
9 To what extent was the content appropriate to your 4.00 5 TRAINER's CONTENT'S FACILITY'S OVERALL'S
10 Was the content clear & organised logically? 4.00 5 AVERAGE AVERAGE AVERAGE AVERAGE
11 How did the program flow? 1.25 5
FACILITY'S AVERAGE 4.00 5
12 Was the training venue comfortable? 4.00 5
13 To what extent was technology eff ectively used to 4.00 5
14 Were the service breaks adequate and managed 4.00 5
OVERALL'S AVERAGE 4.00 5
15 To what extent would you recommend others with 4.00 5
16 How do your rate the overall session? 4.00 5

SST / HRM /2023

Trainer

Right level of expertise?

 Personality -be appropriate?
 Motivation to succeed?

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Learner

 Is the person willing to learn?

 What is the preferred style of learning?
 Action-focused – practical
 System-driven - structured
 Team-oriented - discussion
 Individualistic - self-development

SST / HRM /2023

Organisation

 Will departmental climate & orgn.

culture support the changes – as a
result
of training ?
 Management styles range of
training methods

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Nature of Training need (reflect)

 Remedial situation -
 When things have gone wrong
 (structured & intense)
 Maintenance situation -
 When updating of skills required
 (building upon existing skills)
 Developmental situation –
 acquiring & practicing new skills
 (integrating & building skills)

SST / HRM /2023

Focus of Training

Individual
Relationships
Group
Inter-group processes
Organization

SST / HRM /2023

Areas of Learning

 Psychomotor – manual skill

 Cognitive - procedures / rules /issues
 Affective – beliefs / attitudes /feelings
 Interpersonal – person-to person skills
 Self-knowledge – personal growth
 (awareness of strengths & weaknesses)

SST / HRM /2023

Learning Methods & Level of
Learning
 Knowledge – learning to recall facts
 Understanding – explain & justify
 Application – concepts or techniques
 Transfer – select appropriate concept or
technique – modify or create new
approach

SST / HRM /2023

EVALUATING THE PROCESS OF
TRAINING
Is it promoting the learning that was
planed?
How well – the training delivery?
 Interaction between learners &
trainers
 Content of the programme
Matching the training need

SST / HRM /2023

Evaluation Instrument

Knowledge/skill/attitude pre-test
Ongoing test & surveys
Individual/group/formal/informal
discussions
Independent observers
Assessment methods
Use of questionnaires

SST / HRM /2023

EVALUATING THE PRODUCT OF
TRAINING
 Questionnaires
 Post-test – knowledge, skills, attitudes
factors
 Specific skills performance test
 Training assignments
 End-of-reviews – assessment
 About usefulness of training & how
training was delivered

SST / HRM /2023

 EVALUATING THE OUTPUTS OF
TRAINING
 Job performance measures
 Increased net profit / business
 Reduced customer complaints
 Increased productivity
 Reduced absenteeism
 Reduced labour turnover
 Reduced accident frequency
 Performance appraisal
 Action plan prepared
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 Wage and salary
Administration
Wage and salary administration is defined as
the process by which wage and salary levels
and structures are determined in
organisational settings.

SST / HRM /2023

SST / HRM /2023
SST / HRM /2023
Compensation System (Pay & Benefits)
Some thumb rules about compensation system
Implementation and Administration of Compensation

SST / HRM /2023

Compensation System (Pay & Benefits)
motivation through compensation
 Wages: Wages are a return for labour
 Value of the work performed by an employee
 Payment of service (whether to white collar or manual )
 Includes – salaries / bonus / commission /
perquisites
 Refers to compensation paid to employees
 Different from salaries ( steady compensation)

SST / HRM /2023

Compensation System (Pay & Benefits)
motivation through compensation
 Wage : means the compensation for the work
performed by the employee

 Usually computed on the basis of period of time,

rate per hour, day or month.

 Basic wage : appropriate monetary value for the

intrinsic worth of the job.

SST / HRM /2023

Compensation System (Pay & Benefits)
Wage & its components
 Basic pay
 Dearness allowance
 Bonus
 Overtime Payment
 Incentive
 HRA
 City Allowance … etc

SST / HRM /2023

Compensation System (Pay & Benefits)
Methods of State Regulation of wages

 Prescribing the minimum rates of wages

( Minimum Wages Act)
 Regulating the Payment of Wages
( Payment of wages Act)
 Compulsory conciliation & arbitration of Wage
disputes ( Ind. Dispute Act)
 Wage Board … etc

SST / HRM /2023

Compensation System (Pay & Benefits)
Factors Affecting Wages
 Demand & Supply of Labour
 Labour Unions
 Cost of Living
 Competition
 Prevailing Wage rate
 Ability to pay
 Job requirements
 State regulation

SST / HRM /2023

Compensation System (Pay & Benefits)
Fringe Benefits – some examples
 Contribution to group insurance scheme
 Financial / legal aid
 Discounts on purchases
 Termination pay
 Club membership
 Paid sick leave
 Scholarships
 On duty – seminars & conferences
 Vacation pay
 Educational courses

SST / HRM /2023

Introduction
Wages constitute the major factor in the
economic and social life of any community in
an economic sense; wages represent
payment of compensation in return for work
done.

In a sociological sense, wages characterize

stratification of occupational categories. In a
psychological sense, wages satisfy need
directly and indirectly in response to changing
employee aspiration.SST / HRM /2023
Introduction
 Its constitutes one of several elements of job
satisfaction and is instrumental for the
satisfaction of some needs more than others.
 In a legal sense, the term wages or salaries has
acquired various connotations, depending on
the context and has become a subject of special
law in many countries.
 It is most important to an industrial worker
because his standard of living and that of his
family depends upon his earnings.
SST / HRM /2023
Wage and Salary Administration – Meaning and
Definitions

 In simple words wages means reward for the

labourer for his services rendered to the
industry. These can be paid on per unit, per
hour, daily, fortnightly, weekly, or monthly
basis. Labourers render services of both types
i.e. mental and physical.

 As per the ILO, “Wages refer to the payment

which is made by the employer to the labourer
for his services hired on the conditions of
payment per hour, per day, per week, or per
SST / HRM /2023
fortnight.”
Methods of Wage Payment
Time Wage system
Under time wage system of wage payment, the
worker is paid at an hourly, daily, weekly or monthly
rate.

Piece Wage system

Under piece system of payment, wages are based on
output and not on time. There is no consideration for
time taken in completing a task. A fixed rate is paid
for each unit produced, job completed or an operation
performed. Workers are not guaranteed minimum
wages under this system of wage payment.
SST / HRM /2023
Objectives :

1. To establish a fair and equitable remuneration

2. To attract competent personnel
3. To retain the present employees
4. To improve productivity
5. To control Costs
6. To improve union management relations
7. To improve the public image of the company

SST / HRM /2023

Wage and Salary Administration – Basic Concepts

Compensation may be defined as money received in the

performance of work, plus the many kinds of benefits and
services that organizations provide to their employees.

‘Money’ is included under direct compensation (popularly

known as wages, i.e., gross pay); while benefits come
under indirect compensation, and may consist of accident
and health insurance, the employer’s contribution to
retirement, pay for vacation or illness, and employer’s
required payments for employee welfare as social
security.
SST / HRM /2023
 Wage and Salary Administration – Basic Concepts
 A ‘wage’ (or pay) is the remuneration paid, for the service of labour in
production, periodically to an employee/worker. “Wages” usually refer
to the hourly rate or daily rate paid to such groups as production and
maintenance employees (“blue-collar workers”).

 ILO defined the term wage as “the remuneration paid by the employer
for the service of hourly, daily, weekly and fortnightly employees”.

 ‘Salary’ normally refers to the weekly or monthly rates paid to clerical,

administrative and professional employees (“white-collar workers”).

 Earnings are the total amount of remuneration received by an

employee during a given period. This includes salary, dearness
allowance, house rent allowance, city compensation allowance, other
allowance, overtime payments, etc.

SST / HRM /2023

 Wage and Salary Administration – Basic Concepts
1. The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure.

2. It is concerned with the establishment and maintenance of equitable labour cost

structure i.e. an optimal balancing of conflicting personnel interest so that the
satisfaction of the employees and employers is maximised and conflicts are minimised.

3. The wage and salary administration is concerned with the financial aspects of
needs, motivation and rewards.

4. Employees should be paid according to the requirements of their jobs i.e. highly
skilled jobs are paid more compensation than low skilled jobs.

5. To minimise the chances of favouritism.

6. To establish the job sequences and lines of production wherever they are applicable.

7. To increase the employees’ morale and motivation because a wage programme can
be explained and is based upon facts. SST / HRM /2023
 Wage and Salary Administration – Main Principles
(i) Wage and salary plans and policies should be sufficiently flexible;

(ii) Job evaluation must be done scientifically;

(iii) Wage and salary administration plans must always be consistent

with overall organisational plans and programmes;

(iv) These plans and programmes should be in conformity with the

social and economic objectives of the country like attainment of equality
in income distribution and controlling inflationary trends;

(v) Both these plans and programmes should be responsive to the

changing local and national conditions; and

(vi) These plans should simplify SST

and expedite other administrative
/ HRM /2023
processes.
 For determining such wage rate steps
taken:
i. Collecting information from other companies in respect
of wages paid by them to their employees (wage survey)

ii. Evaluation of each job (ascertaining worth of each job)

of the organization.

iii. Classifying similar jobs into pay grades (establishing

pay grades)

iv. Developing wage curve for assigning pay rates to each

pay grade.

v. Developing pay-rate level (pay rate ranges) and

SST / HRM /2023
 The main factors influencing wage or salary levels are:

1. Job Needs – Different types of jobs require different levels of both physical and mental skills.
Some require high skills so pay is high on the other hand simple, routine jobs where skill
requirement is low are paid low.

2. Ability to pay – Ability to pay depends upon the profit earning capacity of the organization MNCs
pay relatively higher salaries due to their higher paying capacity.

3. Cost of living – Due to inflation, the real wages decline affecting the purchasing power of
workers. Therefore, dearness allowance is given according to change in consumer price index.

4. Prevailing wage rates – Prevailing wage rates in competing firms with in an industry are taken
into account while fixing wages & company that does not pay comparable wages may find it
difficult to attract and retain talent.

5. Union – Highly unionized sectors generally have higher wages because well-organised unions
can exert pressure on management and obtain all sorts of benefits and concession to workers.

6. Productivity – In many organizations, pay is linked to productivity or performance of workers.

7. Demand and supply of labour – The demand for and the supply of certain skills determine
prevailing wage rates. E.g.
– High demand for IT Professionals ensure higher pay for them.
8. State Regulations – Wage policy and laws of the government exercise a significant influence on
wage levels. Government has enacted laws to protect the interests of the working class. No
organization can violate laws relating to minimum wages, payment of bonus, dearness allowance
SST / HRM /2023
and other allowance etc.
Important Factors Considered to Form a Sound Wage
Policy

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 Demand and Supply

 Demand for and supply of labour and its

availability will have great influence on the
determination of wage rates.

 If there is a shortage of labour, the wages

demanded will be high. If, on the other
hand, labour is plentiful, workers will be too
willing to work at low rates of wages.

SST / HRM /2023

“Giving Wages”

 The giving wage is usually the ruling

wage, in any locality, but some companies
pay higher rates in order to foster the
continued goodwill of workers in the
community.

SST / HRM /2023

 Cost of Living
 The cost of living or more precisely changes
in the cost of living which affect the
purchasing power of the wage have been
used with profit by many companies.

 Where, however, the employers are short

sighted and ignore the changes in the cost of
living, trade unions come out with a demand
for a wage rate which takes into account the
current cost of living index.
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Union-Management Negotiations
 A well-organised labour which is directed by
strong leadership is usually in a position to
secure higher wage levels through union
management negotiations.

 Collective bargaining can be a useful method if

pursued rationally by both the managements
and unions. It can give the enterprise a
predictable wage burden, and the workers the
predictable income.
SST / HRM /2023
 State of Competition

The wage level is also affected by the degree

of competition in the market for the products of
an industry.

In a state of perfect competition (which is

hardly ever present), the level of wages may be
at par with the value of the net addition made
by the workers to the total output. If there is
imperfect competition in the product market,
the wages are not likely to reach this level.
SST / HRM /2023
State Regulation

 Often it was found that the bargaining power of the

workers was not strong enough to ensure fair wages.
Consequent­ly, the State found it necessary to step in.

 To ensure the payment of a minimum wage in certain

specified industries and occupation the Minimum
Wages Act was passed in 1948. Payment of bonus
was made compulsory under the Payment of Bonus
Act, 1965, and fringe benefits given under the
Employees State Insurance Act, 1948, and Provident
Fund Act, 1952 and so on.
SST / HRM /2023
 Other Factors

In addition to above factors, there are some

others which influence actual wage levels in
an organisation.

These may be the firm’s ability to pay, the

level of national income and its distribution,
the place of industry in the national economy,
e.g., in a strategic industry wage level could
be quite high.

SST / HRM /2023

 Classification of Wages: Living Wages and Minimum
Wages
Living Wages:
 This has been defined in different ways in different countries.
The most suitable definition is given by Justice Higgin, “Living
wages should be sufficient to ensure the workman’s food,
shelter and clothing; frugal comfort provision, evil days, etc., as
the skill of an artisan, if he is one.”
 According to the fair wages committee report, the living wages
must be a le to make the male earner to provide himself and
his family not only basic necessities, viz.- food, clothing and
shelter but also education for the children and protection
against ill-health and essential social needs. The living wages
means provision for the bare necessities with certain amenities
considered necessary for the well-being of a worker in terms of
his social status.
 This provision has the SST reference
/ HRM /2023
to Article 43 of Indian
Constitution.
Minimum Wages

This is the lowest wage. With this wage a worker and his
family can just pull on the life; in other words, it can
provide a minimum level of subsistence.

This includes food, shelter and clothing. Minimum Wage

in a country is fixed by the Government in consultation
with business organisations and Trade Unions.

When minimum wages are fixed, it is the duty of the

government that employers are not exploiting the work
force.
SST / HRM /2023
To summarize, the following factors are taken
into consideration in working out the wage
differential:
i. Level of skill required on the job
ii. Level of training required on the job
iii. Physical and mental effort needed
iv. Level of experience needed on the job
v. Fatigue arising out of stress/strain on the job
vi. Level of responsibility the job demands.
Likewise, there are different wage grades of
pay for workers/artisans operating at different
levels, as say unskilled, or semi-skilled or
skilled or highly skilled categories.
SST / HRM /2023
In the Indian context, a wage/salary
structure may be divided into four
components:
(a) Basic wage,
(b) Dearness allowance,
(c) Allowances, and
(d) Fringe benefits.

(a) Basic Wage:

A basic wage is the base rate in the respective
grade/scale of the wage structure developed as a result
of the agreement reached after the collective bargaining
process, or on the basis of the recommendations made
by the Fair Wages Committee, 1948 as also the 15th
Indian Labour Conference, 1957 and the various rulings
SST / HRM /2023
of tribunals and courts in the post-independence period.
Dearness Allowance

Dearness allowance (DA) is a part of the negotiated

wage/pay agreement in an organization. The
objective for paying dearness allowance is to
neutralize the rise in prices of essential
commodities.

Dearness allowance is linked to the All-India

Consumer Price/index AICPI. Every point rise or fall
in the index is linked to money value. And, so the
dearness allowance varies according to the index.
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Allowances

Allowances are another form of

compensation to a wage earner, which are
negotiated as a part of wage revision in the
collective bargaining process.

SST / HRM /2023

Dearness Allowance − This allowance is given to protect
real income of an employee against price rise. Dearness
allowance (DA) is paid as a percentage of basic pay.
House Rent Allowance − Companies who do not provide
living accommodation to their employees pay house rent
allowance (HRA) to employees. This allowance is calculated
as a percentage of salary.
City Compensatory Allowance − This allowance is paid
basically to employees in metros and other big cities where
cost of living is comparatively more. City compensatory
allowance (CCA) is normally a fixed amount per month, like
30 per cent of basic pay in case of government employees.
Transport Allowance/Conveyance Allowance − Some
companies pay transport allowance (TA) that accommodates
travel from the employee’s house to the office. A fixed
amount is paid every month to cover a part of traveling
SST / HRM /2023
Allowances paid in diff.
organizations
i. Car allowance/conveyance reimbursement
ii. City compensatory allowance
iii. Transport allowance/subsidy for outstation workers
iv. Deputation allowance for staff on deputation
v. Education, servant, mail and cook allowance
vi. Cash allowance for staff of accounts dept. on cash
disbursement
vii. Book allowance
viii. Milk allowance
ix. Hazard allowance for working in a hazardous workplace
x. Family allowance to non-family stations
xi. Site working allowance.
SST / HRM /2023
 Fringe Benefits

A fringe benefit is an indirect benefit and constitutes a

major part of the wage and the benefit is not merely fringe
or peripheral. Some define fringe benefits as a wage cost,
not directly linked to employees’ productive efforts,
sacrifice, service /performance. Fringe benefits no doubt,
are non-wage benefits offered to staff/employees in an
organization.

These benefits are effective methods of attracting and

retaining talent in the company. This is a supplementary
compensation to employees. It boosts the real earnings
and provides extra spending money to employees. It is
SST / HRM /2023

also termed as an economic security to the workers/staff.

Fringe benefits also known as perks
or perquisites include
i. Providing status to an executive by giving entitlement to use
company’s car with/without chauffeur, allowing entertainment
facilities, holidays, foreign travel, telephone facility at home,
mobile phone, etc.,

ii. Providing security through insurance coverage and the

employee medical facilities for himself, family and his
dependants, children’s education facilities/subsidies; and work
benefits like air conditioner in office and residence, secretarial
services, training for development in India/abroad, company
scholarship for higher education, and

iii. Key benefits are provided which includes share scheme,

profit sharing, retirement counselling and loan for housing at
SST / HRM /2023
nominal rates of interest.
 Important Systems for Fixing Salary

The important among them are:

(1) Wage Theories;
(2) Job Evaluation;
(3) Wage/Salary Survey;
(4) Various Factors Affecting Wage and Salary
Levels.
(5) Wage Fixation Institutions in India

SST / HRM /2023

Wage Fixation Institutions in India –
Collective Bargaining and Adjudication,
Wage Boards and Pay Commissions.

Wages are fixed by the following institutions

in India. They are-
(i) Collective Bargaining and Adjudication;
(ii) Wage Boards; and
(iii) Pay Commissions.

SST / HRM /2023

 Additional Inputs
What is Compensation and Benefits?
Compensation and Benefits refer to the salary,
monetary, and as well as non-monetary
privileges provided to the employees at the
workplace by the organization.

It is a primary tool of the Human Resource

Managers to bring out the best potential of the
employees in their work. It works in a way –
‘Better is the compensation & benefits, better
is the performances and retention!’
SST / HRM /2023
Companies with better Compensation and
Benefits plans are on the verge of stealing your
employees because workers always look to
switch to the organization’s having better salary
structures, compensation, and other benefits
like health insurance.

Everything related to the company’s work

culture and benefit plans can be easily found
online, especially. Each experience faced by
employees from monetary to non-monetary
terms is present in online reviews about the
company. SST / HRM /2023
According to the HR research-based reports,
– ‘80% of managers believe that
compensation is the necessary reward not
because it costs money but because 90% of
employees look for such small details,
including compensation as a primary part
before joining and leaving the companies.’

Types of Compensation
Compensation can take place on Monetary
and Non-Monetary terms.
SST / HRM /2023
Direct Compensation
It enables the employers to make sure that employees are
getting paid without any biasedness inside the premises of an
organization. All the benefits, including the employees’ salary.
( base pay / merit pay /salary /wages.

Indirect Compensation
Indirect compensation indirectly motivates the employees. It
doesn’t involve the direct transfer of the money between the
two parties. Instead, the employees are helped with multiple
other beneficial things instead of getting benefits in cash. It
eventually creates a sense of belonging and admiration by the
company, keeping them away from the front of leaving the
organization.
(bonus / commission / medical insurance/ vacation/ holidays/
profit sharing/ stock options/SSTcar / recreation )
/ HRM /2023
Components of Compensation
Compensation as a whole is made up of
different components that work as an aid for an
employee after retirement or in case of some
accident or injury.

Wages and Salary

Wages mark hourly rates of pay, and salary
marks the monthly rate of pay of an employee. It
is irrelevant of the number of hours put in by an
employee working in the firm.
SST / HRM /2023
Allowances
Allowances can be defined as the amount of
something that is allowed, especially within a
set of rules and regulations or for a specified
purpose. Various allowances are paid in
addition to basic pay.

SST / HRM /2023

Incentives and Performance Based Pay

Incentive compensation is performance-

related remuneration paid with a view to
encourage employees to work hard and do
better.

Both individual incentives and group

incentives are applicable in most cases.
Bonus, gain-sharing, commissions on sales
are some examples of incentive
compensation. SST / HRM /2023
Fringe Benefits/Perquisites
Fringe benefits include employee benefits like medical
care, hospitalization, accident relief, health and group
insurance, canteen, uniform, recreation and the likes.

In recent years, a great deal of attention has been directed

to the development of compensation systems that go
beyond just money. We can say that all the components of
compensation management play a very important role in
the life of an employee.

In particular, there has been a marked increase in the use

of pay-for-performance for management and professional
employees, especially for executive management and
senior managers. Compensation is a primary motivation
SST / HRM /2023
for most employees.
Performance Management

2. Monitoring
1. Planning Measure performance
Set goals and measures Provide feedback
Establish and communicate Conduct progress review
elements and standards

Five Key Components

3. Developing
5. Rewarding Address poor
Recognize and reward performance
good performance Improve good
performance

4. Rating
Summarize performance
Assign the rating of
record
SST / HRM /2023
PERFORMANCE APPRAISAL
Performance of an employee is his
resultant behaviour on tasks which
can be observed & evaluated.

It refers to the contributions made

by an employee (individual) in the
accomplishment of organisational
objectives.
SST / HRM /2023
PERFORMANCE APPRAISAL

People do not learn unless they are

given feedback on their actions.

Performance appraisal system

provides an opportunity to recall &
feedback to people as to how they
are doing - correct their mistakes
& acquire new skills.
SST / HRM /2023
 PERFORMANCE APPRAISAL

 Performance appraisal

The process of evaluating how

effectively members are fulfilling their
job responsibilities and contributing to
organizational goals.

SST / HRM /2023

OBJECTIVES OF PERFORMANCE APPRAISAL
• Provides basis for
promotion/Transfer/Termination

• Enhancing employee’s effectiveness

• Identifying employee’s Training &

development needs

• Developing interpersonal relationship

• Improving communications
SST / HRM /2023
DEVELOPNING A PERFORMANCE SYSTEM

• Determining overall approach to

Performance Appraisal ( objectives /
benefits / features )
• Where & how it should be introduced ?
• Decide who is to be covered ?
• Decide the approach – same or different
• Ste up a team (project )
• Define the role of HR department
• Define the performance management
processes & documentation
• Plan implementation programme
SST / HRM /2023
INTRODUCING & OPERATING THE PERFORMANCE
APPRAISAL SYSTEM

 Introduction to the system

 Defining key tasks & setting objectives
 Working with attributes & competence
 Preparing performance & development
plans
 Conducting appraisal discussion
 Rating
 Feedback
 Coaching & counseling
SST / HRM /2023
 Process of Performance Appraisal
 Select performance factors based on job
description to be evaluated & set the
standards to be achieved
 Set the performance review period
 Measure actual performance
 Compare performance with set standards
 Communicate the rating to the appraisee
 Use the performance appraisal to the
desired purpose.

SST / HRM /2023

 Process of PMS
 Objectives of PMS
 Establishing Job Expectations
 Design an Appraisal Program
 Appraise performance
 Performance Interview
 Archieve Performance Data
 Use appraisal data for appropriate purpose.

SST / HRM /2023

Design Appraisal Programme
 Formal v/s Informal
 Whose performance?
 Who are the raters?
 What problems?
 How to solve?
 What to evaluate ?
 When to evaluate
 What methods?

SST / HRM /2023

Performance criteria
 Merit rating
-based on personality traits
-Leadership
-Ability to get along with others
-Creativity
-Initiative & drive

Focus – what he is

SST / HRM /2023

Performance criteria

Job knowledge
Accuracy
Clarity
Analytical mind

Focus – how he performs

SST / HRM /2023

Performance Appraisal

 Performance Appraisal is thus,

Competence, contribution &

commitment
And not
Chance, chemistry and convenience.

SST / HRM /2023

PMS & Competitive Advantage
Improvi
ng
Perfor
mance

Values Compe Making

& titive Correct
Behavi Advant Decisio
our age ns

Minimising
Dissatisfa
ction
&Turnover

SST / HRM /2023

 Performance
Management Linkage

SST / HRM /2023

Difference Between Performance
Management and Performance
Appraisals
 Performance Management
 Processes used to
identify, encourage,
measure, evaluate,
improve, and reward
employee performance.
SST / HRM /2023
 Performance
Appraisal
 The process of evaluating
how well employees
perform their jobs and
then communicating that
information to the
employees.
Identifying and Measuring
Employee Performance
• Performance
– What an employee does and does not do.
• Quantity of output • Quality of output
• Timeliness of output • Presence at work
• Job Criteria
– Important elements in a given job

SST / HRM /2023

Types of Performance Information

SST / HRM /2023

Benefits of Performance Appraisal
( for the employees)

 Better understanding of the role in the

orgn what is expected & what is needed
to meet those expectations
 Understanding of strengths & weaknesses
 Increased motivation,job satisfaction etc
 Opportunity to discuss work problems
 Opportunity to discuss aspirations,
guidance, support of training
SST / HRM /2023
Benefits of Performance Appraisal
( for the management)
 Identification of performer & non –
performer & their development
 Opportunity for employees to assume
higher responsibility
 Opportunity to improve communication
 Identification of training &
development needs
 Identification of potential &
formulation of career plans
SST / HRM /2023
Benefits of Performance Appraisal
( for the organisation)
 Improved performance throughout
organisaion

 Creation of culture of continuous

improvement & success

 Any message that mgmt wants to convey

-

SST / HRM /2023

 Different types of Employees Appraisal Systems

Rating by superior
Feedback on Appraisal Information
Field review Techniques
Rating by Self & Peer Group
360 degrees Performance Appraisal

SST / HRM /2023

PERFORMANCE APPRAISAL METHODS

SST / HRM /2023

Some of the emerging techniques
• Narrative Essay : A candid statement from a
ratee
• Simple Ranking : Order of rating from best to
worst
• Paired comparison : comparing rates to one
another
• Forced distribution : One-to one comparison
• Behavioural checklist : a descriptive rating
• Critical Incident : Based on key incident
• Graphic Rating : standardized quantitative
rating
• MBO : measuring performance results
SST / HRM /2023
MANAGEMENT BY OBJECTIVES
 MBO an example of Performance – Based
Appraisal that involves –
 setting objectives and comparing objectives
and comparing against those objectives.
 Greater freedom to both management &
employees to decide how performance will be
measured.
 Greater effect since the standards are
discussed and agreed upon by management &
employees.

SST / HRM /2023

Different types of Employees Appraisal Systems

Traditional organization
Single-rater approach

High-involvement organization
Multi-rater approach
(360º feedback)

SST / HRM /2023

360 DEGREE APPRAISAL

SST / HRM /2023

Different types of Employees Appraisal Systems

 Graphic rating scale

A method of performance appraisal that
requires the rater to judge the performance
of the ratee on dimension (criteria) using
scaled standards (poor, excellent, etc.).
 Essay method
The rater is required to write a narrative
about the employee’s performance strengths
and weaknesses, as well as ways the
employee can improve job performance.

SST / HRM /2023

Different types of Employees Appraisal Systems

Employee Rating Scale

Employee : Rakesh Kumar
Dept. : Purchase
Rated by : Sr. Manager
Date : 31.03.2018

Behaviour Unsatisfactory Questionable satisfactory

Outstanding
4
Quantity of work 1 2 3 4
2
Quality of work 1 2 3 4
Work Initiative 1 2 2 3 4
3
Efficiency 1 2 3 4
Overall 1 2 3 3 4
SST / HRM /2023
 Graphic rating scale
A scale that allows the rater to mark an
Employee’s performance on a continuum.
The rater checks the appropriate rating on
the scale for each duty listed.
More detail can be added in the space for
comments following each factor rated.

SST / HRM /2023

EMPLOYEE NAME……… JOB TITLE………..
DEPT……………………….. RATE………………
DATE……………………….

UNSATISFA- FAIR SATISFA- GOOD OUTSTANDING

CTORY CTORY

-VOLUME OF WORK UNDER

NORMAL CONDITIONS

-QUALITY OF WORK
NEATNESS,THOROUGHNESS
& ACCURACY

-KNOWLEDGE OF JOB

-ATTITUDE ENTHUSIASM &

COOPERATIVENESS ON THE
JOB

-DEPENDABILITY

-COOPERATION
WILLINGNESS AND ABILITY
TO WORK WITH OTHERS TO
PRODUCE DESIRED GOALS
SST / HRM /2023
 Checklist
 Performance appraisal tool that uses a list of
statements or words that are checked by raters.
 Raters check statements most representative of
the characteristics and performance of
employees. The following are typical checklist
statements:
 ________ can be expected to finish work on time
 ________ seldom agrees to work overtime
 ________ is cooperative and helpful
 ________ accepts criticism
 ________ strives for self-improvement

SST / HRM /2023

Ranking Method

 Ranking of an employee in a work group is

done against that of another employee.
 It may be done by ranking a person on his
job performance against another member
of the competitive group.
 Employees are ranked according to their
relative levels of performance.

SST / HRM /2023

Forced Distribution

SST / HRM /2023

Forced Distribution Method

 With the forced distribution method, the

ratings of employees’ performance are
distributed along a bell-shaped curve.

 Using the forced distribution method, for

example, a head nurse would rank nursing
personnel along a scale, placing a certain
percentage of employees at each
performance level.
SST / HRM /2023
 There are several drawbacks to the forced
distribution method. One problem is that a
supervisor may resist placing any individual
in the lowest (or the highest) group.
 Difficulties may arise when the rater must
explain to the employee why he or she was
placed in one grouping and others were
placed in higher groupings.
 The manager may feel forced to make
distinctions among employees that may not
exist.
SST / HRM /2023
Narrative Methods
 Managers and HR specialists frequently are required to
provide written appraisal information. Documentation and
description are the essence of the critical incident, the
essay, and the field review methods. These records
describe an employee’s actions rather than indicating an
actual rating.

 Critical Incident Method

 Field method
 Essay Method

SST / HRM /2023

 Critical Incident- The manager keeps a written record of both highly
favorable and unfavorable actions in an employee’s performance.

 Essay Method - requires the manager to write a short essay describing

each employee’s performance during the rating period. The rater usually is
given a few general headings under which to categorize comments. The
intent is to allow the rater more flexibility than other methods do. As a
result, the essay is often combined with other methods.

 Field Review Method - In the field review, the outside reviewer becomes
an active partner in the rating process. The outsider interviews the
manager about each employee’s performance, then compiles the notes
from each interview into a rating for each employee. Then the rating is
reviewed by the supervisor for needed changes. This method assumes
that the outsider knows enough about the job setting to help supervisors
give more accurate and thorough appraisals.
 The major limitation of the field review is that the outsider has a great deal
of control over the rating.

SST / HRM /2023

Behavioral Methods
BARS- Behaviorally Anchored Rating Scale
 Developed by Patricia Cain Smith and
Lorne Kendall
 It is a combination of the rating scale and
critical incident techniques of employee
performance evaluation.
 The critical incidents serve as anchor
statements on a scale and the rating form
usually contains six to eight specifically
defined performance dimensions.
SST / HRM /2023
SST / HRM /2023
MBO as Appraisal tool

SST / HRM /2023

 Some of the emerging techniques

 Work Planning review : Emphasizes process

over outcomes
 Immediate superiors : Feedback from the
boss
 Self Appraisal : evaluation by Self
 Peer-group Appraisal : By team Members
 360 degrees : by boss, peers & subordinates
 Assessment Centers

SST / HRM /2023

Rater Errors
 Recency Effect - The Recency effect
occurs when a rater gives greater weight
to recent events when appraising an
individual’s performance.
 Central Tendency, Leniency, and
Strictness Errors
 Rater bias - Error that occurs when a
rater’s values or prejudices distort the
rating.
 Halo effect - Rating a person high or low
on all items because of one characteristic.
 Contrast error - Tendency to rate people
relative to other people rather than to
SST / HRM /2023

performance standards.
Some pitfalls !
• Rater error
– An error by a rater which causes an employee’s
performance rating to not reflect their
performance.
– Halo/horn—a rater gives a person similar scores
on all scales when there is an actual variation in
performance for some scales.
– Cluster errors—a rater gives all individuals in a
group the same rating regardless of their actual
performance.
• Central tendency—rating all employees about average
• Leniency—rating all employees high
• Severity—rating all employees low
SST / HRM /2023
Some pitfalls !
 Shifting standards
 Different rating patterns
 Central tendency – outstanding v/s poor
 First impression
 Latest behaviour
 Stereotyping ( sex, colour,caste, religion,
age, style of clothing )

SST / HRM /2023

 Some pitfalls !
 Rater errors (cont’d)
Politics and prejudice—raters may intentionally
bias their ratings to help an employee or to get
rid of employee; if the bias is unrelated to work
it is illegal.

SST / HRM /2023

EMPLOYEE RELATIONS

SST / HRM /2023

UNDERSTANDING
EMPLOYEE RELATIONS
 Good employee relations involve providing
fair and consistent treatment to all
employees

 To foster good employee relations,

managers must listen to and understand
what employees are saying and
experiencing
SST / HRM /2023
UNDERSTANDING
EMPLOYEE RELATIONS

 Effective employee relations require

cooperation between managers and
employee relations representatives

 ER will try to ensure that company policies

and procedures are followed and advise
both supervisors and employees on
specific employee relations problems
SST / HRM /2023
Historical Perspectives
Event-driven
Structure-driven
Government change
Technological
Economic trends
change
Demographic Political trends
change Changes to social
Management institutions
change Regular, patterned,
Changes in repetitive - circular
ownership and
organisation
SST / HRM /2023
Unique events and
What is Employee Relations?
 Employee relations refers to the
interrelationships, both formal and informal
between managers and those whom they
manage.

 How are we managed? how we would like

to be managed? how and why conflicts
arise? and how these can be resolved at
work? These are the basic concern of
employee relations.
SST / HRM /2023
Industrial Relations …
IR is concerned with the systems, rules and
procedures used by unions and employers
to determine the reward for effort and other
conditions of employment, to protect the
interests of the employed and their
employers and to regulate the way in which
employers treat their employees.
K. Aswathappa

SST / HRM /2023

Coverage of IR
 Collective bargaining
 Role of management, unions, government
 Machinery for resolution of industrial
disputes
 Individual grievances and disciplinary
policies and
practices.
 Labor legislation
 Industrial relations training.
SST / HRM /2023
IR to ER
 Employee relations is more comprehensive
and includes all aspects of HRM where
employees are dealt with collectively.

 It covers …
 Participative management
 Employee welfare
 Employee development
 Employee remuneration, safety, welfare, etc.

SST / HRM /2023

Main Parties Engaged in ER…

Individual Managers
Employees

Employer – Employer’s
Trade Union Employee Association
Representative Relations Representative

Courts and
Government tribunes

SST / HRM /2023

Different Perspectives of
Employee Relations …

SST / HRM /2023

Manager’s perspective …
 Creating and maintaining employee
motivation

 Obtaining commitment from the workforce

 Establishing mutually beneficial channels of

communication

 Achieving high level of efficiency

SST / HRM /2023
 Negotiating terms and conditions of
employment

 Sharing decision making with employees

 Engaging in power struggle with trade

unions

SST / HRM /2023

Trade union’s perspective …
Collective bargaining about terms and conditions
of employment

Representing individuals in conflict with

management

Improving abilities of employees to influence

events in the workplace

Regulating relations with trade unions.

SST / HRM /2023
Individual employee’s perspective …

 Improve their conditions of employment

 Voice and grievances

 Exchange views and ideas of management

 Share in decision making

SST / HRM /2023
 Nature of conflict / settlement of Industrial
Dispute

 Industrial Dispute means any dispute or

difference between employers &
employers or between employers &
workmen or between workmen & workmen
which is connected with the employment
or non- employment or the terms of
employment or with the conditions of
labour.
SST / HRM /2023
Causes of Industrial Dispute

Wages
Bonus
Retrenchment
Personnel / manpower
Leave
Hours of work
Others
SST / HRM /2023
Settlement Machinery of Industrial
Disputes
 In India, the basic philosophy
- discourage industrial disharmony,
disputes, strikes & lockouts and

- to promote industrial peace & harmony

through statutory machinery if

- union & management failed to settle

their differences
SST / HRM /2023
Settlement Machinery of Industrial
Disputes consists of
 Works Committee
 Conciliations Officers
 Board of Conciliations
 Courts of Enquiry
 Labour Courts
 State Industrial Tribunals
 National Tribunals

SST / HRM /2023

Settlement Machinery of Industrial Disputes

WORKS COMMITTEE
The Industrial Dispute Act was passed
“to make provisions for the investigation and
settlement of Industrial dispute”

Also provides for the industrial establishments of

a permanent machinery for settlement of
disputes in the form of works committees,
conciliation officers & industrial tribunals.

SST / HRM /2023

Settlement Machinery of Industrial Disputes

 The act empowered to constitute Work

Committees in every establishment
employing 100 or more workmen.
 Composed of equal representatives of
employers & workmen.
 The objectives of these Works
committees are to remove the causes of
friction in the day to day admin.of the
workshop & establish as well as to
promote measures securing good
relations between the parties.
SST / HRM /2023
Settlement Machinery of Industrial Disputes

 In addition to the Works Committees, the

act provides new orientation through
Conciliation Officers appointed for
specific areas or specific disputes

SST / HRM /2023

Settlement Machinery of Industrial
Disputes
 Boards of Conciliation for promoting the
settlement of an industrial dispute
consisting of a chairman who is an
independent person or two or four other
members

 The other members must be appointed

in equal numbers to represent the
parties to the dispute on the
recommendations of the concerned.
SST / HRM /2023
Settlement Machinery of Industrial
Disputes
 Courts of Inquiry – for enquiring into any
matters appearing too be connected with
an industrial dispute.
 May consists of one independent person
or persons – may constitute one or more
Labour Courts for the adjudication of
Industrial Dispute.

SST / HRM /2023

 Settlement Machinery of Industrial
Disputes
 Industrial Tribunals for the adjudication of
industrial dispute.

 The labour courts can adjudicate on

industrial disputes relating to the matters
specified in the II schedule.
.

SST / HRM /2023

 Settlement Machinery of Industrial
Disputes
 Authorizes the central government to
constitute one or more National Industrial
Tribunals for adjudication of industrial
disputes – which involves a question of
National Importance
 Involves industries situated in more than
one state. (interest / affected by)

SST / HRM /2023

Conciliation Proceedings

 Appointment of Conciliation Officers or

Board for any specified area
 To bring parties together for a peaceful
settlement ( which is binding on the
parties)
 If no settlement at Conciliation – failure
report)
 Dispute referred to industrial tribunal /
labour court for Adjudication
SST / HRM /2023
 Adjudication

 Govt of India as well as State Govt can

appoint Industrial Tribunals & Labour
Courts
 Labour Court – day-to-day matters
 Industrial tribunals – wider jurisdiction

SST / HRM /2023

 Arbitration
 Disputes can be referred to an Arbitrator
with the consent of the parties to the
dispute
 An arbitration agreement is published in
the official gazette & the arbitrator are
required to submit their awards.
 The arbitration awards are binding upon
the parties.

SST / HRM /2023

Collective Bargaining
 Despite divergence in their structures
and functions, the trade unions have a
common objective
of negotiations with the employer
about a written agreement embracing
employment conditions as well as
labour management relationship on
mutually accepted terms.

SST / HRM /2023

 Collective Bargaining

 Collective bargaining is just not means of

raising wages and improving conditions of
employment.

 Probably it means “ to bar the gains ( of

others) collectively.

SST / HRM /2023

The Nature of Collective Bargaining
 Collective bargaining
(contract negotiations & administration)
involves the relations between
employers operating through their
representatives & organised labour.

- embraces not only the formal labour

agreements but also day-to-day
relations between management & trade
unions.
SST / HRM /2023
The Nature of Collective Bargaining

 As opposed to individual bargaining, it

relates to group bargaining about wages,
salaries & working conditions.
 A process of accommodation between
two institutes which have both common
& conflicting interest.

SST / HRM /2023

 Objectives of Collective Bargaining..
 Recognition of the union as an authority in the
workplace
 Improvements of workers’ standard of living
 Enlargement of their share in the profit
 Democratic participation in decisions
influencing their working conditions
 Settlement of disputes / defending & promoting
workers interest
 To protect the basic interest of the management
as well as the legitimate rights of the workers.
SST / HRM /2023
Collective Bargaining

 Two fundamental phases

Negotiation Contract
Administration

Preparation Negotiation Follow-up

Tech. Steps

SST / HRM /2023