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Page 1: HUMAN RESOURCE MANAGEMENT - · PDF fileJamnalal Bajaj Institute of Mgmt Studies INDEX SL SUBJECT PAGE ... PERFORMANCE APPRAISALS 56 20. HUMAN RESOURCE AUDIT 62 21. MOTIVATION THEORIES

Mgmt study material created/ compiled by - Commander RK Singh [email protected]

Page 1 of 74 - Human Resource Management Notes

Jamnalal Bajaj Institute of Mgmt Studies

HUMAN RESOURCE MANAGEMENT

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Mgmt study material created/ compiled by - Commander RK Singh [email protected]

Page 2 of 74 - Human Resource Management Notes

Jamnalal Bajaj Institute of Mgmt Studies

INDEX

SL SUBJECT PAGE

1. HUMAN RESOURCE MANAGEMENT ( H R M ) 3

2. STRATEGIC HUMAN RESOURCE

MANAGEMENT

9

3. HUMAN RESOURCE DEVELOPMENT 11

4. TEAM EFFECTIVENESS 13

5. HUMAN RESOURCE PLANNING ( H R P ) 14

6. JOB ANALYSIS 20

7. JOB DESCRIPTION 21

8. JOB SPECIFICATION 22

9. JOB EVALUATION 23

10. JOB DESIGN 25

11. JOB SATISFACTION 28

12. WORK SAMPLING 28

13. RECRUITMENT 31

14. SELECTION 35

15. TRAINING & DEVELOPMENT 38

16. INDUCTION & ORIENATION 44

17. MULTI-SKILLING 47

18. CHANGE MANAGEMENT 49

19. PERFORMANCE APPRAISALS 56

20. HUMAN RESOURCE AUDIT 62

21. MOTIVATION THEORIES 64

22. MORALE 67

23. PERSONNEL POLICIES 68

24. UNIONS 71

25. ORGANIZATIONAL DOWNSIZING 73

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Page 3 of 74 - Human Resource Management Notes

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W H A T I S H R M ?

M E A N I N G O F H R M

HRM is a management function that helps organisation to recruit, select, train, develop and

manage its members. Simply stated, HRM is all about management of people in the

organisation from Recruitment to Retirement. HRM refers to the set of programs,

functions, and activities designed and carried out in order to maximise both employee as

well as organisational effectiveness.

Definition 1

“HRM is planning, organizing, directing and controlling of the procurement, development,

compensation, integration, maintenance and separation of human resources to the end that

individual, organizational and social objectives are accomplished.”

Definition 2

“HRM is concerned with the people dimensions in management. Since every organization

is made up of people, acquiring their services, developing their skills, motivating them to

higher levels of performance and ensuring that they continue to maintain their commitment

to the organization are essential to achieving organizational objectives. This is true,

regardless of the type of the organization – government, business, education, health,

recreational, or social action.”

O B J E C T I V E S O F H R M

1. Organizational Objectives : To assist the organization to achieve its primary

objectives, whether it is profit making or charity or social agenda.

2. Societal Objectives: To be responsive to the needs and challenges of the

society while minimizing the negative impact, if any, of such demands upon the

organization.

3. Functional Objectives : To maintain department’s contribution and level of

services at a level appropriate to the organization’s needs.

4. Personal Objectives: To assist employees in achieving their personal goals, at

least in so far as these goals enhance the individual’s contribution to the organization. This

is necessary to maintain employee performance and satisfaction for the purpose of

maintaining, retaining and motivating the employees in the organization.

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Mgmt study material created/ compiled by - Commander RK Singh [email protected]

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S C O P E O F H R M

From Entry to Exit or Recruitment to Retirement of an employee in the organization

Following are the areas of operation of HRM:

1. Human Resource Planning

2. Job Analysis

3. Job Design

4. Recruitment & Selection

5. Orientation & Placement

6. Training & Development

7. Performance Appraisals

8. Job Evaluation

9. Employee and Executive Remuneration

10. Motivation

11. Communication

12. Welfare

13. Safety & Health

14. Industrial Relations

Based on the above activities, we can summarize the scope of HRM into following seven

different categories:

1. Introduction to HRM

2. Employee Hiring

3. Employee and Executive Remuneration

4. Employee Motivation

5. Employee Maintenance

6. Industrial Relations

7. Prospects of HRM

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R O L E O F H R M

1. Advisory Role: HRM advises management on the solutions to any problems

affecting people, personnel policies and procedures.

(a) Personnel Policies: Organization Structure, Social Responsibility,

Employment Terms & Conditions, Compensation, Career & Promotion,

Training & Development and Industrial Relations.

(b) Personnel Procedures: Relating to manpower planning procedures,

recruitment and selection procedures, and employment procedures, training

procedures, management development procedures, performance appraisal

procedures, compensation procedures, industrial relations procedures and

health and safety procedures.

2. Functional Role: The personnel function formulates personnel policies in

accordance with the company’s doctrine and management guidelines. It provides

guidance to managers to help them ensure that agreed policies are implemented.

3. Service Role: Personnel function provides personnel services. These services

constitute the main activities carried out by personnel department, like payroll,

disciplinary actions, etc, and involve the implementation of the policies and

procedures described above.

R O L E O F H R M A N A G E R S

1. Humanitarian Role: Reminding moral and ethical obligations to employees.

2. Counsellor: Consultations to employees about marital, health, mental, physical

and career problems.

3. Mediator: Playing the role of a peacemaker during disputes, conflicts between

individuals and groups or management.

4. Spokesman: To represent the company in Media and other forums because he has

better overall picture of his company’s operations.

5. Problem Solver: Solving problems of overall human resource management and

long-term organizational planning.

6. Change Agent: Introducing and implementing institutional changes and installing

organizational development programs

7. Management of Manpower Resources: Broadly concerned with leadership both

in the group and individual relationships and labour-management relations.

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O B J E C T I V E S V / s F U N C T I O N S O F H R M

HRM Objectives Supporting HRM Functions

Social Objectives (3) (a) Legal Compliance

(b) Benefits

(c) Union Management Relations

Organizational Objectives (7) (a) Human Resource Planning

(b) Employee Relations

(c) Recruitment & Selection

(d) Training & Development

(e) Performance Appraisals

(f) Placement & Orientation

(g) Employee Assessment

Functional Objectives (3) (a) Performance Appraisals

(b) Placement & Orientation

(c) Employee Assessment

Personal Objectives (5) (a) Training & Development

(b) Performance Appraisals

(c) Placement & Orientation

(d) Compensation

(e) Employee Assessment

M A N A G E R I A L F U N C T I O N S O F H R M

1. Planning: Research and plan about wage trends, labour market conditions, union

demands and other personnel benefits. Forecasting manpower needs etc.

2. Organizing: Organizing manpower for the achievement of organizational goals

and objectives.

3. Staffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation

to managers and employees.

5. Controlling: Regulating personnel activities and policies according to plans.

Observations and comparisons of deviations

O P E R A T I O N A L F U N C T I O N S O F H R M

1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counselling.

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3. Compensation: Wage and Salary determination and administration

4. Integration: Integration of human resources with organization.

5. Maintenance: Sustaining and improving working conditions, retentions,

employee communication

6. Separations: Managing separations caused by resignations, terminations, lay offs,

death, medical sickness etc.

C H A L L E N G E S O F H R M I N I N D I A N E C O N O M Y

The job of HRM department in India has never been so challenging. Last decade has

witnessed tectonic shift in Job market. From being an employer’s market, it has suddenly

turned into employee’s market, especially in the most crucial segment, ie middle

management. Globalisation and India’s growing stature in the world has seen demand for

Indian managers soaring. From the state of plenty, there is a stage of scarcity of the right

talent. The biggest challenge is to retain the talent one has so assiduously hunted and

trained. The attrition rate has reached alarming proportions. It has reached such proportions

that certain segments of Industry are maintaining bench strengths to fill in the sudden gaps

due to resignations. In addition, there are following new issues:

1. Globalization: Growing internationalization of business and workforce has its

impact on HRM in terms of problems of unfamiliar laws, languages, practices, attitudes,

management styles, work ethics and more. HR managers have a challenge to deal with

more and more heterogeneous functions and more involvement in employee’s personal life.

2. Corporate Re-organizations: Liberalisation has led to largescale

reorganization of businesses in terms of expansions, mergers and acquisitions, joint

ventures, take overs, and internal restructuring of organizations. In circumstances as

dynamic and as uncertain as these, it is a challenge to manage employees’ anxiety,

uncertainties, insecurities and fears.

3. New Organizational Forms: Exposure to international business and

practices have led to change in the organisational structure and HR policies of the local

companies. Take for instance, the hierarchical structure of Indian companies. Suddenly,

Indian companies have begun to adopt flat hierarchical management structure. But to

implement and grout such fundamental changes in management philosophy of any

company is never easy. The challenge for HRM is to cope with the implications of these

new relations in place of well established hierarchical relationships that existed within the

organizations for ages in the past.

4. Changing Demographics of Workforce: Changes in workforce are largely

reflected by dual career couples, large chunk of young blood with contrasting ethos of work

among old superannuating employees, growing number of women in workforce, working

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mothers, more educated and aware workers etc. Thus, changing demography of workforce

has its own implications for HR managers and a true challenge to handle.

5. Changed Employee Expectations: With the changes in workforce

demographics, employee expectations and attitudes have also transformed. Traditional

allurements like job security, house, and remunerations are not much attractive today.

Rather, employees are demanding empowerment and equality with management. Hence, it

is a challenge for HRM to redesign the profile of workers, and discover new methods of

hiring, training, remunerating and motivating employees.

6. New Industrial Relations Approach: In the changed industrial climate,

even trade unions have realised that strikes and militancy have lost their relevance and not

many workers are willing to join them and disrupt work. However, the problems faced by

workforce now have different dimension for the management. They manifest in the form of

increased attrition rate. Unsatisfied employees instead of approaching the management for

resolution, often take up the new job. The challenge before the HRM is find ways and

means to feel the pulse of employees and address the issues on proactive basis.

7. Renewed People Focus: “Man behind the machine is most important than the

machine”. This is an old doctrine of the Armed Forces. However, this doctrine has begun to

gain acceptance in the corporate world and thus all out efforts to grab the best talent at what

ever cost.

8. Managing the Managers: Managing the managers is most difficult. Armed

with inside information, they can not be lured with rosy promises. They are in great

demand too with growth in economy. These are the people who are most mobile, attrition

rate being highest for the junior and middle management level. The challenge of HRM is

how to manage this tribe?

9. Weaker Section’s Interests : Another challenge for HRM is to protect the

interest of weaker sections of society. The dramatic increase of women workers, minorities

and other backward communities in the workforce, coupled with weakening of trade

unions, has resulted in the need for organizations to re-examine their policies, practices and

values. In the name of global competition, productivity and quality, the interests of the

society around should not be sacrificed. It is a challenge of today’s HR managers to see that

these weaker sections are neither denied their rightful jobs nor are discriminated while in

service.

10. Contribution to the Success of Organizations: The biggest challenge to

an HR manager is to make all employees contribute to the success of the organization in an

ethical and socially responsible way. Because society’s well being to a large extent depends

on its organizations.

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S T R A T E G I C H U M A N R E S O U R C E

M A N A G E M E N T

Strategy:

“Strategy is a way of doing something. It includes the formulation of goals and setting of

action plans for accomplishment of that goal.”

Strategic Management:

“A Process of formulating, implementing and evaluating business strategies to achieve

organizational objectives is called Strategic Management”

Definition of Strategic Management

“Strategic Management is that set of managerial decisions and actions that determine the

long-term performance of a corporation. It includes environmental scanning, strategy

formulation, strategy implementation, evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating

environmental opportunities and threats in the light of a corporation’s strengths and

weaknesses.

S T E P S I N S T R A T E G I C M A N A G E M E N T

1. Environmental Scanning: Analyze the Opportunities and Threats in External

Environment

2. Strategy Formulation: Formulate Strategies to match Strengths and

Weaknesses. It can be done at Corporate level, Business Unit Level and Functional

Level.

3. Strategy Implementation: Implement the Strategies

4. Evaluation & Control: Ensure the organizational objectives are met.

I M P O R T A N C E & B E N E F I T S O F S T R A T E G I C

M A N A G E M E N T

1. Allows identification, prioritization and exploration of opportunities.

2. Provides an objective view of management problems.

3. Represents framework for improved co-ordination and control

4. Minimizes the effects of adverse conditions and changes

5. Allows major decisions to better support established objectives

6. Allows more effective allocation of time and resources

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7. Avoids ad hoc decisions

8. Helps to integrate the individual behaviours

9. Encourages forward thinking

10. Encourages favourable attitude towards change.

R O L E O F H R M I N S T R A T E G I C M A N A G E M E N T

Role in Strategy Formulation: HRM is in a unique position to supply competitive

intelligence that may be useful in strategy formulation. Details regarding advanced

incentive plans used by competitors, opinion survey data from employees, elicit

information about customer complaints, information about pending legislation etc. can be

provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation.

Role in Strategy Implementation: HR Manager helps strategy implementation by

supplying competent people. Additionally, HRM facilitates strategy implementation by

encouraging proactive thinking, communicating goals and improving productivity and

quality.

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H U M A N R E S O U R C E D E V E L O P M E N T

Human Resource Development is a process to help people to acquire competencies and to

increase their knowledge, skills and capabilities for better performance and higher

productivity.

Definition 1:

HRD is a process of enhancing the physical, mental and emotional capacities of individuals

for productive work.

Definition 2:

HRD means to bring about the possibility of performance improvement and individual

growth.

P R O A C T I V E H R D S T R A T E G I E S F O R L O N G

T E R M P L A N N I N G A N D G R O W T H

Like quoted earlier, employee retention has become bigger challenge than employee hiring

today. With trade unions breathing their last, and easy job availability, employees have

developed propensity to switch jobs for minor reasons without voicing their protest. Thus,

HRD has to take a proactive approach, that is, to seek preventive care in human relations.

By using HRD strategies, maximization of efficiency and productivity could be achieved

through qualitative growth of people.

Long-term growth can also be planned by creating highly inspired groups of employees

with high aspirations to diversify around core competencies and to build new

organizational responses for coping with change.

A proactive HRD strategy can implement plans directed at improving personal competence

and productive potentials of human resources.

Following strategic choices can be considered which would help today’s organizations to

survive and grow.

Change Management: Manage change properly and become an effective change agent

rather than being a victim of change itself.

Values: Adopt proactive HRD measures, which encourage values of trust, autonomy,

proactive approach and experimentation.

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Maximize Productivity and Efficiency: Maximize productivity and efficiency of the

organization by helping qualitative growth of people

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T E A M E F F E C T I V E N E S S

Definition:

A team is a small group of people who agree to work together for achieving a clear and

identifiable set of goals.

Teams Can be Very Effective.

The benefit of teams lie in Synergy which means – The whole is greater than sum of its

parts. Thus, a team is able to produce more than the sum of individuals working separately.

A team benefits from complementing and some times contrasting abilities of its members.

Teams can bring to bear a wider range of skills and experience to solve a problem. Teams

often lead to better quality decisions as individual whims and prejudices are kept in check.

Further, members of team have an obligation to each other and thus there is a moral

force/binding to perform.

T E A M E F F E C T I V E N E S S

For a team to be effective, following are the prerequisites:

1. Harmony and trust among the team members

2. Effective leadership

3. Shared goals

4. Diverse skills and experience - technical, problem solving and interpersonal skills

5. Creativity and risk taking ability

6. Freedom to voice views

7. Ability to self-correct

8. Interdependent work

9. Effective decision making process

10. Ability to resolve conflict

11. Clear communication channels

Synergy among the team members is very important. The team needs a clear sense of

direction which the leader provides. Harmony and trust among the group members is

utmost essential. In any group, conflicts are inevitable, how ever harmonious it may be.

There has to be a well formulated policy for conflict management. Decision making is a

source of potential conflicts. A well charted course for decision taking will be able to

minimise such conflicts.

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H U M A N R E S O U R C E P L A N N I N G ( H R P )

Human Resource Planning, as the name suggests, is the process of identification/

forecasting a firm’s future requirement of type and number of people in order to meet the

organisational goals and objectives. It is a continuous process either due to fresh

requirement of manpower owing to change/growth/diversification of business or due to

attrition of manpower due to retirement, termination, death, disability or resignations.

Definition 1:

“HRP includes estimation of how many qualified people are necessary to meet the future

business requirement, how many people will be available, and what, if anything, must be

done to ensure availability of personnel equals the demand at all times in the future.”

Definition 2:

“HRP is a Process, by which an organization ensures that it has the right number of right

kind of people at the right place, at the right time, capable of effectively and efficiently

completing those tasks that will help the organization achieve its overall objectives.”

N E E D & I M P O R T A N C E O F H R P

Human Resource comes at a cost and generates profits. While excess of human resource

will lead to unproductive costs, shortages of same will lead to idling of other resources and

impede profit generation. Having the people is not enough. Each job needs specific skills

and experience and only a certain trained personnel can do it effectively. Therefore, it is

necessary that right kinds of people are hired for each job.

Personnel requirement is never static. Manpower wastages in the organisation keep taking

place regularly due to retirement, injury, resignations, termination, etc. In addition, changes

in the business environment, business model and plan, capacity/product changes,

diversifications, etc, also generate need to review the human resource requirement of the

organisation.

Changes in the Business Environment in the past one and half decade have led to relative

scarcity of talented people. Right kinds of people are no more available at short notice.

There is considerable time gap between identifying the need for manpower and filling the

vacancy, some times stretching between 6 months to one year. Thus, it will help the

company if the requirement is forecasted adequately in advance to enable hiring of right

kind of personnel just in time so that neither the machines/other resource idle for want of

manpower nor do the people idle. At the same time, there could be situations when there is

spare manpower in the company. Company may have changed over to a new technology

productions and therefore all personnel trained in old machines may have become

redundant and surplus. The “Exit Policy” for workers is not easy and they can not be

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released at short notice. Re-training or retrenchment of personnel has to be planned in

advance.

In India services is growing at a fast pace. It has already overtaken agriculture and

Industrial production sectors to become the biggest contributor to GDP. In service industry,

human capital is the most important asset. HRP bears a disproportionate importance in this

industry.

Foundation of Personnel Functions : HRP provides for not only front line

manpower but also caters for support staff requirement which are called Personnel

“Functions” like recruitment, selection, personnel development, training and development

etc. Large scale changes in frontline staff will have proportional changes in requirement of

support staff as well which can be planned alongside.

H R P S Y S T E M

HRP System as such includes following elements or sets for planning.

Business Environment

Overall Organization Objectives

Forecasting Manpower Needs

Assessing Manpower Supply

Matching Manpower Demand-Supply factors

Based on these elements we can draw “HRP System Architecture” as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast Manpower Supply Assessment

Manpower Programming

Manpower Implementation

Control & Manpower

Evaluation

Surplus Manpower Shortage of Manpower

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H R P P R O C E S S

Organizational Objectives & Policies:

Organizational objectives and policies give a clue to future requirement of manpower. A

company planning expansion would require more manpower in near future. Kind of people

required would be dictated by technology being planned for expansion. HRP needs to align

hiring of people with these elements. In addition, company’s policies towards its manpower

policies, like using internal resources for promotion or external resources or dependence on

certain caste or region for some jobs have also to be catered for. Gujarati companies in

diamond business hire only Gujaraties. Similarly, certain Business Houses from Rajasthan

prefer Rajasthanies. So, HRP process will be dictated by following organisational policies:

1. Internal Hiring or External Hiring?

2. Training & Development plans

3. Union Constraints

4. Job enrichment issues

5. Rightsizing organization

6. Automation needs

7. Continuous availability of adaptive and flexible workforce

Manpower Demand Forecasting: It is the process of estimating the future quantity and

quality of people required. The basis should be long term corporate plans. Demand

forecasting should be based on following factors.

Internal Factors: -

Production levels

New products and services

Organizational structure

Employee separation

Budget constraints

External Factors:

Economic climate

Laws and regulatory bodies

Technology changes

Social Factors

Legal requirements with regards to reservations

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Manpower Supply Forecasting: This process measures the number of people likely to

be available from within and outside the organization after making allowance for

absenteeism, internal movements and promotions, wastages, changes in hours and other

conditions of work.

Supply Analysis covers:

Existing Human Resources: HR Audits facilitate analysis of existing employees

with skills and abilities. The existing employees can be categorized as skills

inventories (non-managers) and managerial inventories (managers).

Skill inventory would include the following;

Personal data

Skills

Special Qualifications

Salary

Job History

Company data

Capabilities

Special preferences

Management inventories would include the following:

Work History

Strengths

Weaknesses

Promotion Potential

Career Goals

Personal Data

Number and Types of Subordinates supervised

Total Budget Managed

Previous Management Duties

Internal Supply Assessment:

Inflows and outflows (transfers, promotions, separations, resignations,

retirements etc.)

Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)

Conditions of work (working hours, overtime, etc.)

Absenteeism (leaves, absences)

Productivity level

Job movements (Job rotations or cross functional utilizations)

External Supply Assessment: External sources are required for following reasons

New blood,

New experiences

Replenish lost personnel

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Organizational growth

Diversification

External sources can be colleges and universities, consultants, competitors and

unsolicited applications.

S U C C E S S I O N P L A N N I N G

Meaning of Succession Planning

Succession planning is the process or activities connected with the filling of key positions

in the organization hierarchy as vacancies arise. Succession planning focuses on

identification of future vacancies and locating the probable successor. For example in

succession planning the key concern can be who will be next CEO or what will happen if

the Marketing Manager retires in coming March. Grooming a person to fill an important

position may take years. Succession planning involves identification of key positions in the

company and then scouting for people who can effectively fill those positions at short

notice.

Importance of Succession Planning

1. Succession planning helps when there is a sudden need due to job hopping/death of

serious injury to a key employee.

2. There is little or no set back due to absence of key employee.

3. Acts as a motivator for the individual employee who comes to know of the

impending promotion in advance.

4. Succession planning helps create loyalty towards the organization and improved

motivation and morale of individual employees.

5. Organization gains stable workforce and low employee turnover.

6. Ultimately organization becomes successful in accomplishing its goals effectively.

C A R E E R P L A N N I N G

Career as a concept means a lifelong sequences of professional, educational and

developmental experiences that an individual goes through in his working life. It is a

sequence of positions occupied by a person during his life.

Career planning is the process of identifying an individual’s strengths, weaknesses,

aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to

take maximum advantages of positive traits and minimising the effect negatives traits.

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After identifying the personality traits of the individual begins the process of identifying

suitable job billets for him. It may also involve training at times to strengthen his weak

areas.

Career planning is a process of integrating the employees’ needs and aspirations with

organizational requirements.

A typical succession planning involves the following activities:

1. Analysis of the demand for managers and professionals by company level, function

and skill.

2. Audit of existing executives and projection of likely future supply from internal and

external sources.

3. Planning of individual career paths based on objective estimates of future needs and

drawing on reliable performance appraisals and assessments of potential.

4. Career counselling undertaken in the context of a realistic understanding of the

future needs of the firm as well as those of the individual.

5. Accelerated promotions with development targeted against the future needs of the

business.

6. Performance related training and development to prepare individuals for future

roles as well as current responsibilities

7. Planned strategic recruitment not only to fill short term needs but also to provide

people for development to meet future needs

8. The actual activities by which openings are filled

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J O B A N A L Y S I S

Definition 1

“Job Analysis is a process of collecting and studying the information relating to operations

and responsibilities of a specific job. The immediate products of this analysis are ‘Job

Description’ and ‘Job Specifications’.”

Definition 2

“It is a basic technical procedure that is used to define duties and responsibilities and

accountabilities of the job.”

P U R P O S E O F J O B A N A L Y S I S : -

Human Resource Planning (HRP): Job analysis helps in determining

staffing needs, type, quality and quantity.

Recruitment & Selection: Knowing the staffing needs is essential for

Recruitment and Selection – Right person for each job. Sourcing of recruits also

becomes easy and cost effective

Training & Development: Job analysis is the key to determining Training

and Development programs.

Job Evaluation: Job evaluation means determination of relative worth of

each job for the purpose of establishing wage and salary. This is possible with the

help of job description and specifications; i.e. Job Analysis.

Remuneration: Job analysis also helps in determining wage and salary for the

jobs.

Performance Appraisal: Job analysis helps in fixing the bench marks of

performance standards which in turn help in objective Performance appraisal,

rewards, promotions, etc.

Safety & Health: Job Analysis helps to uncover hazardous conditions and

unhealthy environmental factors so that corrective measures can be taken to

minimize and avoid possibility of human injury.

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J O B D E S C R I P T I O N

“Job Description implies objective listing of the job title, tasks, and responsibilities

involved in a job.”

Job description is a word picture of the duties, responsibilities and organizational

relationships that constitutes a given job or position. It defines work assignment and a

scope of responsibility that are sufficiently different from those of the other jobs to warrant

a specific title. Job description is a broad statement of purpose, scope, duties and

responsibilities of a particular job.

C o n t e n t s o f J o b D e s c r i p t i o n

1. Job Identification

2. Job Summary

3. Job Duties and Responsibilities

4. Supervision specification

5. Machines, tools and materials

6. Work conditions

7. Work hazards

8. Definition of unusual terms

F o r m a t o f J o b D e s c r i p t i o n

1. Job Title

2. Region/Location

3. Department

4. Reporting to (Operational and Managerial)

5. Objective

6. Principal duties and responsibilities

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J O B S P E C I F I C A T I O N S

“Job Specification involves listing of qualifications, skills and abilities required in an

employee to meet the job description. These specifications are minimum required to do the

job satisfactorily.”

In other words, it is a statement of minimum acceptable physical/psychological attributes

and professional skills necessary to perform the job properly. Job specifications seek to

indicate kind of persons who can be expected to meet the role requirements. Thus, it is

basically concerned with matters of selection, screening and placement and is intended to

serve as a guide in hiring.

C o n t e n t s o f J o b S p e c i f i c a t i o n s

1. Physical Characteristics

2. Psychological characteristics

3. Personal characteristics

4. Educational Qualifications

5. Skill Set and Experience/Responsibilities

6. Demographic features

Job specifications can be further divided into three broad categories

1. Essential Attributes

2. Desirable Attributes

3. Contra-Indicators – Attributes which are likely to act as impediments to success of

job

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J O B E V A L U A T I O N

Job evaluation is the process of analyzing and assessing various jobs systematically to

ascertain their relative worth in an organization.

Job Evaluation involves determination of relative worth of each job for the purpose of

establishing wage and salary differentials. Relative worth is determined mainly on the basis

of Job Description and Job Specification only. Job Evaluation helps to determine wages

and salary grades for all jobs. Employees need to be compensated depending on the grades

of jobs they perform. Remuneration must be based on the relative worth of each job.

Ignoring this basic principle results in inequitable compensation and attendant ill effects on

employees’ morale. A perception of inequity is a sure way of de-motivating an employee.

Jobs are evaluated on the basis of content and placed in order of importance. This

establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials

among various jobs.

Jobs are ranked (not jobholders)

P R O C E S S O F J O B E V A L U A T I O N :

1. Defining objectives of job evaluation

(a) Identify jobs to be evaluated (Benchmark jobs or all jobs)

(b) Who should evaluate job?

(c) What training do the evaluators need?

(d) How much time involved?

(e) What are the criteria for evaluation?

(f) Methods of evaluation to be used

2. Wage Survey

3. Employee Classification

4. Establishing wage and salary differentials.

M E T H O D S O F J O B E V A L U A T I O N

1. Analytical Methods

(a) Point Ranking Methods: Different factors are selected for different jobs

with accompanying differences in degrees and points.

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(b) Factor Comparison Method: The important factors are selected which

can be assumed to be common to all jobs. Each of these factors are then

ranked with other jobs. The worth of the job is then taken by adding together

all the point values.

2. Non-Analytical Methods

(a) Ranking Method: Jobs are ranked on the basis of their title or contents.

Like Managers, Supervisors, Workers, Peon, etc. All managers whether

from production, planning, sales, stores or Allied Services (House Keeping)

Deptt are treated equal. Job is not broken down into factors etc. It is easier

to implement but not always satisfactory for the employees.

(b) Job Grading Method: It is based on the job as a whole and the

differentiation is made on the basis of job classes and grades. Like in a

hotel, Receptionist’s job may be graded higher than back office billing

clerk’s job. Similarly, a production/sales manager billet may be graded

higher than Allied Services Manager’s. In this method it is important to

form a grade description to cover discernible differences in skills,

importance to company’s core operations, responsibilities and other

characteristics.

P I T F A L L S O F J O B E V A L U A T I O N :

1. Sometimes encourages employees to manipulate for promotion/internal placement

when there may be limited opportunities for enhancement as a result of downsizing.

2. It promotes internal focus (office politics) instead of customer orientation

3. Not suitable for forward looking organizations, which may have trimmed multiple

job titles into two or three broad jobs.

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J O B D E S I G N

In the most simplified form - The process of breaking/organizing work into specific tasks

in order to perform a specific job is called Job Design. Job Design is the logical Sequence

to Job Analysis. Job design involves conscious efforts to organise tasks, duties and

responsibilities into a unit of work to achieve certain objective.

Steps in Job Design

1. Specification of Individual Tasks

2. Specification of Methods for Tasks Performance

3. Combination of Tasks into Specific Jobs to be assigned to individuals

F A C T O R S A F F E C T I N G J O B D E S I G N

1. Organizational factors

(a) Characteristics of Tasks (Planning, Execution and Controlling of Task)

(b) Work Flow (Process Sequences)

(c) Ergonomics (Time & Motion Study)

(d) Work Practices (Set of ways of performing tasks)

2. Environmental Factors

(a) Employee Abilities and Availability

(b) Social and Cultural Expectations

3. Behavioural Elements

(a) Feedback

(b) Autonomy

(c) Use of Abilities

(d) Variety

T E C H N I Q U E S O F J O B D E S I G N

1. Work Simplification: Job is simplified or specialized. The job is broken down

into small parts and each part is assigned to an individual. To be more specific,

work simplification is breaking down the job to such small tasks that complexity is

taken out of them. Like in a assembly line of car, one person only tighten wheel

nuts with a pneumatic tool which tighten the nuts. The complexity of ensuring that

each nut is tightened to required degree has been transferred to machine and the

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worker only applies the tool to the right place. He does not even put the wheel in

place. In such cases, work becomes repetitive in nature. Work simplification is used

when jobs are not specialized.

2. Job Rotation: Same job, same people, same surrounding, days over days,

months over months, leads to boredom and even fatigue. And it manifests in higher

error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer

to such problems. While broadly the job may remain same, minor variations

between jobs are enough to rejuvenate the employee. It not only benefits the

personnel but also the organisation in equal measure

(a) Benefit to the Employee. It is a development tool since the employees get

exposure to several jobs which develops their personality and employability.

It improves their self-image and leads to personal growth. Such cross

functional deployments often reveal hidden performance potentials/skills of

many employees in the course of new job.

(b) Benefits to the Company: Such cross functional knowledge of employees

provides the company with a fall back option in case of absence of any

employee. It also gives flexibility to the management to reorganise the

functional setup just in case of need like demand pattern shift or change in

business model or any other eventuality. Also, periodic job rotation is the

best method to avoid compartmentalisation of departments. Movement of

personnel between departments and first hand knowledge of limitations and

problems faced by other departments reduces frictions and leads to better

cooperation between them. Interpersonal bonds developed during in the

course of such cross functional job rotation further smoothens the

interaction between departments. On the negative side, training costs rise

and it can also de-motivate intelligent and ambitious trainees who might

take it as their undesirability in their own department unless it is well laid

down policy of the company.

3. Job Enlargement: It means expanding the number of tasks, or duties assigned

to a given job. Job enlargement is naturally opposite to work simplification. Adding

more tasks or duties to a job does not necessarily mean that new skills and abilities

are needed. There is only horizontal expansion. It is with same skills taking

additional responsibilities like increasing the number of machines operators under a

supervisor from 10 to 15. Job enlargement may involve breaking up of the existing

work system and redesigning a new work system. For this employees also need to

be trained to adjust to the new system. Job enlargement is said to contribute to

employee motivation but the claim is not validated in practice.

4. Job Enrichment: Job enrichment is to add a few more motivators to a job to

make it more rewarding. A job is enriched when the nature of the job is exciting,

challenging, rewarding and creative or gives the job holder more decision-making,

planning and controlling powers. An enriched job will have more authority,

responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal

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enrichment) and more growth opportunities. The employee does more planning and

controlling with less supervision but more self-evaluation. For example:

transferring some of the supervisor’s tasks to the employee and making his job

enriched. As per Hertzberg, who was the father of this term, an enriched job has

eight characteristics:

(a) Direct Feedback: Employee should be able to get immediate knowledge of

the results they are achieving.

(b) Client Relationship: An employee who serves a client or customer

directly has an enriched job. The client can be outside or inside the firm.

(c) New Learning: An enriched job allows its incumbent to feel that he is

growing intellectually.

(d) Scheduling Own Work: Freedom to schedule own work (autonomy) is job

enrichment.

(e) Unique Experience: A enriched job has some unique qualities or features.

(f) Control over Resources: One approach to Job enrichment is for the each

employee to have control over his or her resources and expenses.

(g) Direct Communication Authority: An enriched job allows worker to

communicate directly with people who use his or her output.

(h) Personal Accountability: An enriched job holds the incumbent responsible

for the results. He or she receives praise for good work and blame for poor

work.

Problems with Job Enrichment

(a) Job enrichment is not a substitute for good governance. If other

environmental factors in the business are not right, mere job enrichment will

not mean much.

(b) Job enrichment may have short term negative effects till the worker gets

used to the new responsibility.

(c) Job enrichment itself might not be a great motivator since it is job-intrinsic

factor. As per the two-factor motivation theory, job enrichment is not

enough. It should be preceded by hygienic factors etc.

(d) Job enrichment assumes that workers want more responsibilities and those

workers who are motivated by less responsibility, job enrichment surely de-

motivates them

(e) Workers participation may affect the enrichment process itself.

(f) Change is difficult to implement and is always resisted as job enrichment

brings in a changes the responsibility.

5. Autonomous or Self-Directed Teams: Empowerment results in self-

directed work teams. A self-directed team is a group of employees responsible for a

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whole work segment. They work together, handle day-to-day problems, plan and

control, and are highly effective team.

J O B S A T I S F A C T I O N

Job satisfaction is self satisfaction derived by an employee in doing the job he has been

entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an

employee towards his job, related factors and life in general than the job itself. The

attitudes related to job may be wages, supervision, steadiness, working conditions,

advancement opportunities, recognitions, fair evaluation of work, social relations on job,

prompt settlement of grievances etc. A person with a kind heart will find high level of job

satisfaction in working with some agency involved in charitable work though the salary

might be relatively less. An over ambitious person will never find the job satisfaction.

In short job satisfaction is a general attitude towards the job, which is the result of many

specific attitudes in three areas namely, job factors, individual characteristics and group

relationships outside the job.

C O M P O N E N T S O F J O B S A T I S F A C T I O N

Personal factors: Sex, Dependents, Age, Timings, Intelligence, Natural affinity towards

the job, Education and Personality.

Job Inherent Factors: Nature of work, Skills, Occupational status, Geography, etc.

Management Controlled Factors: Security, Payment, Fringe benefits, Advancement

opportunities and Working conditions, Co-workers, Responsibilities, Supervision

W O R K S A M P L I N G

Definition:

"A measurement technique for the quantitative analysis of an random/irregularly occurring

activity."

M E A N I N G O F W O R K S A M P L I N G

Work sampling is based on the theory that the characteristics of a sufficiently large sample

represent the actual characteristics of entire population. Work sampling operates by an

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observer taking a series of random observations on a particular "item" of interest (machine,

operating room, dock, etc.) to observe its "state" (working, idle, sleeping, empty, etc.).

When enough samples are taken, an analysis of the observations yields a statistically valid

indication of the states for each thing analyzed.

Assume, for example, that you wish to determine the proportion of time a factory operator

is working or idle. Also assume that 200 random observations were made of the operator

and during 24 of these he or she was observed to be idle. From the random samples of his

state you conclude that the individual is working 176/200 = 88% of the time.

A D V A N T A G E S O F W O R K S A M P L I N G

It is relatively easy, simple and inexpensive to use and extremely helpful in providing a

deeper understanding of all types of operations.

When properly used, it can help pinpoint those areas, which should be analyzed in further

detail and can serve as a measure of the progress being made in improving operations.

Q U E S T I O N S O F W O R K S A M P L I N G S T U D Y

What is our equipment/asset utilization?

When we are not adding value to the product, how are we spending our time?

How are our inter-dependent systems performing?

Where should we focus our continuous improvement activities?

D I S T I N C T I O N B E T W E E N W O R K S A M P L I N G

A N D " T I M E S T U D I E S "

Before we set out to analyse the distinctions between work sampling and time studies, let

us understand that the two are as different as chalk and cheese. The purpose of each is

different and one can not be substituted by the other in most cases. While work sampling is

a broad analysis of trend, time study is microanalysis of the job and procedure. Time study

is conducted with a view to improve the process/method where as work sampling is done to

improve quantitative utilisation of resources.

Work sampling is relatively cheaper because it uses random samples instead of

continuous observations.

Many operators or machines can be studied by a single observer

Work sampling normally spans over several days or weeks, thus minimizing the effects

of sudden variations on a particular day.

Work Sampling tends to minimize operator behaviour modification during observation

(operator, deliberately or otherwise, under or over performing while under observation).

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Work Sampling, in general, does not require a trained time-study analyst to take the

observations. Also, stopwatches or other timing devices are not required. Many studies

make use of off-shift technicians or operators to take the observations.

W O R K S A M P L I N G M E T H O D O L O G Y

An analyst RANDOMLY observes an activity (equipment, operating room, production

line) and notes the particular states of the activity at each observation.

The ratio of the number of observations of a given state of the activity to the total number

of observations taken will approximate the percentage of time that the activity is in that

given state.

Randomness of observations is very critical for a work sampling study. The observations

should vary over the time of the day, days of the week and if possible, months to get he

correct trend.

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R E C R U I T M E N T

Definition:

“Recruitment is the process of finding and attracting capable applicants for a job to create a

pool from which selection is to be made of the most suitable candidates”.

The Process begins when new recruits are sought and ends when their applications are

submitted. Though theoretically recruitment process is said to end with the receipt of

applications, in practice, the activity extends to the screening of applications so as to

eliminate those who are not qualified for the job. The result is a pool of applicants from

which selections for new employees are made.”

P U R P O S E A N D I M P O R T A N C E

1. To broad base the applicant pool in order to get the right talent at the affordable

cost.

2. Increase the pool of job candidates at minimum cost

3. Help increase success rate of selection process by reducing number of under-

qualified or over-qualified applications.

4. Meet legal and social obligations

5. Identify and prepare potential job applicants

F A C T O R S A F F E C T I N G R E C R U I T M E N T

External Factors:

1. Demand and Supply status of specific skills set.

2. Unemployment Rate (Area-wise)

3. Labour Market Conditions

4. Political and Legal Environment (Reservations, Labour laws)

5. Company’s Image

Internal Factors:

1. Recruitment Policy (Internal Hiring or External Hiring?)

2. Human Resource Planning (Planning of resources required)

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3. Size of the Organization (Bigger the size lesser the recruitment problems)

4. Cost

5. Growth and Expansion Plans

R E C R U I T M E N T P R O C E S S

1. Recruitment Strategy Development

(a) Trained or untrained (to be trained at company’s expense)

(b) Internal or external sourcing

Internal Recruitment (Source 1)

(i) Present employees

(ii) Employee referrals

(iii) Transfers & Promotions

(iv) Former Employees

(v) Previous Applicants

External Recruitment (Source 2)

(i) Professionals or Trade Associations

(ii) Advertisements

(iii) Employment Exchanges

(iv) Campus Recruitment

(v) Walk-ins Interviews

(vi) Consultants

(vii) Contractors

(viii) Displaced Persons

(ix) Radio & Television

(x) Acquisitions & Mergers

(c) Competitors

(d) Technological tools to be used for advertising

(e) Where to look

(f) How to look

2. Recruitment Planning

(a) Number of applicants sought (Based on past experience)

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(b) Types of applicants to be called (Qualification, category, area, etc)

3. Searching

(a) Source activation

(b) Selling

4. Screening of Applications

5. Evaluation and Cost Control

(a) Salary Cost

(b) Management & Professional Time spent

(c) Advertisement Cost

(d) Producing Supporting literature

(e) Recruitment Overheads and Expenses

(f) Cost of Overtime and Outsourcing

(g) Consultant’s fees

E V A L U A T I O N O F R E C R U I T M E N T P R O C E S S

1. Return rate of each source of recruitment

2. Selection rate from each source

3. Retention and Performance of selected candidates

4. Recruitment Cost

5. Time lapsed data

6. Image projection

INTERNAL RECRUITMENT

Advantages Disadvantages

1. Less Costly

2. Candidates already oriented towards

organization

3. Organizations have better knowledge

about internal candidates

4. Employee morale and motivation is

enhanced

1. Old concept of doing things

2. It abets raiding

3. Candidates current work may be

affected

4. Politics play greater roles

5. Morale problem for those not

promoted.

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EXTERNAL RECRUITMENT

Advantages Disadvantages

1. Benefits of new skills, talents and Ideas

2. Benefits of new experiences

3. Compliance with reservation policy

becomes easy

4. Scope for resentment, jealousies, and

heartburn are avoided.

1. Better morale and motivation

associated with internal recruiting is

denied

2. It is costly method

3. Chances of creeping in false positive

and false negative errors

4. Adjustment of new employees takes

longer time.

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S E L E C T I O N

M E A N I N G O F S E L E C T I O N

Selection is the process of picking up individuals (out of the pool of job applicants) with

requisite qualifications and competence to fill jobs in the organization. A formal definition

of Selection is as under:

“Selection is the process of differentiating between applicants in order to identify and hire

those with a greater likelihood of success in a job.”

R E C R U I T M E N T V s S E L E C T I O N : D I F F E R E N C E

Recruitment Selection

1. Recruitment refers to the process of

identifying and encouraging people

with required qualifications to apply for

job.

2. Recruitment is said to be positive in its

approach as it seeks to attract as many

candidates as possible.

1. Selection is concerned with picking up

the right candidates from a pool of

applicants.

2. Selection on the other hand is negative

in its application in as much as it seeks

to eliminate as many unqualified

applicants as possible in order to

identify the right candidates.

P R O C E S S / S T E P S I N S E L E C T I O N

1. Preliminary Interview: This is a short interview. The purpose of preliminary

interviews is to weed out the prima facie misfit applicants. It is also called courtesy

interview and is a good public relations exercise.

2. Selection Tests: Jobseekers who pass the preliminary interviews are called for

tests. There are various types of tests conducted depending upon nature of job and

the company. These tests can be Aptitude Tests, Personality Tests and Ability Tests

and are conducted to judge how well an individual can perform tasks related to the

job. Besides this, there are some other tests also like Interest Tests (activity

preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests

etc.

3. Employment Interview: The next step in selection is employment interview.

Here, interview is a formal and in-depth conversation to assess applicant’s

suitability. It is considered to be an excellent selection device. Interview type and

pattern can vary greatly. Interviews can be One-to-One, Panel Interview, or

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Sequential Interviews. Besides there can be Structured and Unstructured interviews,

Behavioural Interviews, Stress Interviews.

4. Reference & Background Checks : Reference checks and background

checks are conducted for provisionally identified candidates to verify the

information provided by them. Reference checks can be through formal letters or

telephonic. However, it is more of a formality and selections decisions are very

seldom affected by it.

5. Selection Decision: After obtaining all the information, selection decision is

made. The final decision has to be made out of applicants who have been identified

as suitable. The views of line managers carry much weight at this stage because it is

they who are eventually responsible for the performance of the new employee.

Considering the job climate, often more than required number is selected to cater

for any selected candidate withdrawing at the job offer stage.

6. Physical Examination: After the selection decision is made, the candidate is

required to undergo a physical fitness test. A job offer is often contingent upon the

candidate passing the physical examination.

7. Job Offer: The next step in selection process is job offer to those applicants

who have successfully passed all tests. It is made by way of letter of appointment.

8. Contract of Employment: After the job offer is made and candidates accept

the offer, certain documents are needed to be executed by the employer and the

candidate. A formal contract of employment, containing written contractual terms

of employment etc are signed by both sides.

G O O D S E L E C T I O N P R A C T I C E : E S S E N T I A L S

1. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed

by personnel and line management should be available with Selection Board.

2. Train the selectors to assess the right attributes in applicants.

3. Determine aids to be used for selection process.

4. Check competence of recruitment consultants before hiring their services.

5. Involve line managers at all stages

6. Attempt to validate the procedure regularly

7. Help the appointed candidate to succeed by training and management development

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B A R R I E R S T O E F F E C T I V E S E L E C T I O N

1. Perception: We all perceive the same thing differently. Some rightly and others

wrongly. Our limited perceptual accuracy is obviously a stumbling block to the

objective and rational assessment of people.

2. Fairness: Barriers of fairness includes discrimination against religion, region,

caste, race or gender, etc.

3. Plethora of Human Traits : Success in any job is more a function of attitude

than ability or even aptitude. There are plenty of tests with reasonable degree of

reliability and accuracy to measure ability but few tests with limited reliability and

accuracy to assess attitude due to their variety. The tests are validated over a period

of time to differentiate between the employees who can perform well and those who

will not. Yet, no test can claim 100% success in finding the right employee.

4. Pressure: Pressure brought on selectors by management, politicians,

bureaucrats, relatives, friends and peers to select particular candidate are also

barriers to effective selection.

5. Time and Cost: Often the time and funds available to undertake selection

process are limited forcing the selectors to forego certain tests.

E F F E C T I V E N E S S O F I N T E R V I E W A S A

S E L E C T I O N T O O L

Interview is a formal face to face dialogue between the application and the Selection Board.

It is the most popular selection device due to its great flexibility in application. It is used as

a selection tool right from identification of a maid servant by a housewife to selection of

CEO for a fortune 500 company.

The primary objectives of interv iew are as follows:

1. To elicit as much information about the candidate as possible in order to gauge his

suitability for the job since there is a limit as to how much information and

assessment can be obtained through the application forms and other tests..

2. To validate the information provided in the application form. Often information in

forms is exaggerated.

3. To clarify any doubt or ambiguity in forms or otherwise.

In addition, interviews are good medium to assess overall personality, communication

skills and attitude of the candidate.

Advantages:

1. Flexibility: Extremely flexible and adoptable.

2. Supplementary Information: Interviews bring out supplementary

information about candidate which written tests and other tests can rarely bring out.

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3. A well conducted interview can bring out knowledge, attitudes, beliefs of the

candidate.

4. It is an easy method for determining if the candidate has Social etiquettes, manners,

confidence, communication skills, clarity of thoughts, and such other aspects of

personality.

5. Allows candidate to ask questions which can benefit candidate as well as bring out

additional information about him.

Disadvantages:

1. Absence of Reliabili ty: The reliability of information and conclusions drawn

from interview are more subjective in nature and their reliability is dependent on the

skills of the interviewer vis a vis candidate. Many candidates successfully hide their

negative traits and project false positive traits.

2. Time Taking: Each candidate has to be interviewed separately and interview

can take any thing from 10 minutes to 90 minutes. Thus it is very time consuming.

3. Evaluations are Subjective. Very strong possibility of various biases,

stereotyping etc creeping in.

4. Decisions are often made in the first few minutes of the interview and the rest of the

interview is to support that decision.

Going by the above list of advantages and disadvantages, it can be said that interviews at

best are a mixed success tool. And therefore, it should be used in combination with other

tools to improve its reliability.

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T R A I N I N G & D E V E L O P M E N T

Training and development, though are spoken in the same breadth, are quite different.

Training generally refers to teaching of new skill in professional field of the employee.

Like an employee being taught to operate another machine, or to perform a new operation

in the same machine. Development refers to enhancement of personal qualities of the

employee which do not have a one to one relationship with his current job. It may be to

help an employee to grow. Like stress management techniques, yoga lessons, meditation

exercises, soft skills training, etc. While training is expected to reward the company

immediately in terms of better productivity of employee, Development does not lead to any

immediate and tangible benefits to the company. At the best, there might be some

intangible benefits in the long run, like improved motivation, loyalty, improved intra-

departmental relations, reduced absenteeism on medical ground, etc.

Dividing line between training and development is expectation of immediate benefits.

Thus, in case a program, generally qualifying as development program, is directly related

to employee’s job skills, like Communication Skills course for telephone attendant or

receptionist, will qualify as training and not as development. Same program for some one

in back office would be termed as Development program.

Education: It is a theoretical learning in classrooms. The purpose of education is to teach

theoretical concepts and develop a sense of reasoning and judgment. Any training and

development program must contain an element of education.

Definition of Training & Development

“Training & Development is any attempt to improve current or future employee

performance by improving his performance capabilities and potential through learning,

usually by changing the employee’s attitude or increasing his or her skills and knowledge.”

The need for Training and Development is determined by the employee’s performance

deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

O B J E C T I V E S O F M A N A G E M E N T

D E V E L O P M E N T P R O G R A M S ( M D P )

1. To make the managers

Self-starters

Committed

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Motivated

Result oriented

Sensitive to environment

Understand use of power

2. Creating self awareness

3. Develop inspiring leadership styles

4. Instil zest for excellence

5. Teach them about effective communication

6. To subordinate their functional loyalties to the interests of the organization

T R A I N I N G A N D D E V E L O P M E N T : D I F F E R E N C E

Training Development

Training is skills focused Development is creating learning abilities

Training is presumed to have a formal

education

Development is not education dependent

Training needs depend upon lack or

deficiency in skills

Development depends on personal drive

and ambition

Trainings are generally need based Development is voluntary

Training is a narrower concept focused on

job related skills

Development is a broader concept focused

on personality development

Training may not include development Development includes training wherever

necessary

Training is aimed at improving job related

efficiency and performance

Development aims at overall personal

effectiveness (including job efficiencies)

I M P O R T A N C E O F T R A I N I N G & D E V E L O P M E N T

1. Helps remove performance deficiencies in employees

2. Greater stability, flexibility and capacity for growth in an organization

3. Accidents, scraps and damages to machinery can be avoided

4. Serves as effective source of recruitment

5. It is an investment in HR with a promise of better returns in future

6. Reduces dissatisfaction, absenteeism, complaints and turnover of employees

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I D E N T I F I C A T I O N O F T R A I N I N G N E E D S

Individual Training Needs Identification

1. Performance Appraisals

2. Interviews

3. Questionnaires

4. Attitude Surveys

5. Training Progress Feedback

6. Work Sampling

7. Rating Scales

Group Level Training Needs Identification

1. Organizational Goals and Objectives

2. Personnel / Skills Inventories

3. Organizational Climate Indices

4. Efficiency Indices

5. Exit Interviews

6. MBO / Work Planning Systems

7. Quality Circles

8. Customer Satisfaction Survey

9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification

1. Trainers can be informed about the broader needs in advance

2. Trainers Perception Gaps can be reduced between employees and their supervisors

3. Trainers can design course inputs closer to the specific needs of the participants

4. Diagnosis of causes of performance deficiencies can be done

M E T H O D S O F T R A I N I N G

On the Job Trainings (OJT): When an employee learns the job in actual working site in

real life situation, and not simulated environment, it is called OJT. Employee learns while

working. Take the instance of roadside mechanics. Small boys working there as helpers

learn while helping the head mechanic. They do not learn the defect analysis and engine

repairing skills in any classroom on engine models.

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Advantages of On-the-Job Training:

1. It is directly in the context of job

2. It is often informal

3. It is most effective because it is learning by experience

4. It is least expensive

5. Trainees are highly motivated

6. It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

1. Trainer may not be experienced enough to train or he may not be so

inclined.

2. It is not systematically organized

3. Poorly conducted programs may create safety hazards

“On the Job Training” Methods

1. Job Rotation: Refer page 27.

2. Job Coaching: An experienced employee can give a verbal presentation

to explain the nitty-gritty’s of the job.

3. Job Instruction: It may consist of an instruction or directions to perform a

particular task or a function. It may be in the form of orders or steps to

perform a task.

4. Apprenticeships: Generally fresh graduates are put under the experienced

employee to learn the functions of job.

5. Internships and Assistantships: Interns or assistants are recruited to

perform specific time-bound jobs or projects during their education.

Off the Job Training: Trainings conducted in simulated environments, classrooms,

seminars, etc are called Off the Job Training.

Advantages of Off-the-Job Training

1. Trainers are usually experienced enough to train

2. It is systematically organized

3. Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

1. It is not directly in the context of job

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2. It is often formal

3. It may not be based on experience.

4. It is expensive.

5. Trainees may not be much motivated

6. It is artificial in nature

“Off the Job Training” Methods

1. Classroom Lectures: Advantage – It can be used for large groups. Cost

per trainee is low. Disadvantages – Low interest of employees . It is not

learning by practice. It is One-way communication. No authentic feedback

mechanism. Likely to lead to boredom for employees.

2. Audio-Visual: It can be done using Films, Televisions, Video, and

Presentations etc. Advantages – Wide range of realistic examples, quality

control possible. Disadvantages – One-way communication, No feedback

mechanism. No flexibility for different audience.

3. Simulation: Creating a real life situation for decision-making and

understanding the actual job conditions give it. Ensures active participation

of all trainees. Can be very effective but needs good conductors.

4. Case Studies: It is a written description of an actual situation in the past in

same organisation or some where else and trainees are supposed to analyze

and give their conclusions in writing. This is another excellent method to

ensure full and whole hearted participation of employees and generates good

interest among them. Case is later discussed by instructor with all the pros

and cons of each option. It is an ideal method to promote decision-making

abilities within the constraints of limited data.

5. Role Plays: Here trainees assume the part of the specific personalities in

a case study and enact it in front of the audience. It is more emotional

orientation and improves interpersonal relationships. Attitudinal change is

another result. These are generally used in MDP.

6. Sensitivity Trainings: This is more from the point of view of behavioural

assessment as to how an individual will conduct himself and behave towards

others under different circumstances. There is no pre-planned agenda and it

is instant. Advantages – increased ability to empathize, listening skills,

openness, tolerance, and conflict resolution skills. Disadvantage –

Participants may resort to their old habits after the training.

7. Programmed Instructions: Provided in the form of blocks either in book

or a teaching machine using questions and feedbacks without the

intervention of trainer. Advantages – Self paced, trainees can progress at

their own speed, strong motivation for repeat learning, material is structured

and self-contained. Disadvantages – Scope for learning is less; cost of

books, manuals or machinery is expensive.

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8. Computer Aided Instructions: It is extension of PI method, by using

computers. Advantages – Provides accountabilities, modifiable to

technological innovations, flexible to time. Disadvantages – High cost.

9. Laboratory Training.

B A R R I E R S T O E F F E C T I V E T R A I N I N G

1. Lack of Management commitment

2. Inadequate Training budget

3. Large scale poaching of trained staff

4. Non-cooperation from workers

5. Unions influence

H O W T O M A K E T R A I N I N G E F F E C T I V E

1. Management Commitment

2. Integration of Training with Business Strategies

3. Comprehensive and Systematic Approach

4. Continuous and Ongoing approach

5. Promoting learning as fundamental value

6. Creations of effective training evaluation system

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I N D U C T I O N & O R I E N A T I O N

Induction and Orientation are the procedure that a new employee has to go through in the

organisation. Every employee starting from the lower most, say, from peon to CEO, need

orientation course when they join the organisation. A new employee carries with him a lot

of apprehension about place, job, colleagues, organisational culture, and so on. On the day

of reporting, he needs to know his office/work place, routine, amenities, functional and

reporting channels, etc.

Definition

“It is a Planned Introduction of employees to their jobs, their co-workers and the

organization per se.”

Difference Between Induction and Orientation

Induction refers to formal training programs that an employee has to complete before he is

put on job. Like in Military, before a new recruit is sent to border, he is trained for a few

months in Drill/Parade, physical fitness, weapon handling, etc. This is called Induction.

Orientation is the information given to the new employees to make him aware of the

comfort issues - where the facilities are, what time lunch is, who are the people he would

be working with and so forth.

Orientation conveys following information:

1. Organisation’s geography/layout

2. Organisational set up (Structure)

3. Daily Work Routine

4. Organization Profile, History, Objectives, Products and Services, etc

5. Introduction to colleagues/immediate superiors and subordinates.

6. Importance of Jobs to the organization

7. Detailed Orientation Presentation covering policies, work rules and employee

benefits.

P U R P O S E O F O R I E N T A T I O N

The idea of Orientation programme is to make the new employees feel “at home” in new

environment. Any employee while joining a new organisation is anxious about the new set-

up, new colleagues, his own performance vis a vis other more experienced employees in

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the organisation, his work place, his exact responsibilities, etc. A structured information

and introduction system will make his transitory period short and reduce his anxiety

quickly. He will begin to perform to his potential quickly.

T Y P E S O F O R I E N T A T I O N P R O G R A M S

1. Formal or Informal: In informal orientation, new employees are put on the jobs

and they are expected to acclimatise themselves with the work and the organisation.

In contrast, in formal orientation, an employee goes through a structured

introduction programme.

2. Individual or Collective: Another choice is to be made whether new employees

are to be inducted in group or individually.

3. Serial or Disjunctive: Orientation becomes serial when the person relinquishing

the post hands over the position to the new incumbent. It becomes disjunctive when

the new employee occupies a vacant position with no one to hand him over the

position. He learns the prevalent practices and history slowly from his subordinates

and superiors on gradual basis.

4. Investiture or Divestiture: This is the final strategic choice which relates to

decision regarding allowing the new employees to affect the organisation with his

identity/ideas/functional methods or asking him to modify his identity to merge

with existing culture of the organisation. This is more applicable to high positions

who may have been hired with a view to bring in their experiences and methods of

management to the organisation.

How long should the induction process take?

It starts when the job ad is written, continues through the selection process and is not

complete until the new team member is comfortable as a full contributor to the

organization's goals.

The first hour on day one is a critical component - signing on, issuing keys and passwords,

explaining no go zones, emergency procedures, meeting the people that you will interact

with all have to be done immediately. Until they are done the newcomer is on the payroll,

but is not employed.

After that it is a matter of just in time training - expanding the content as new duties are

undertaken.

We only employ new people one at a time - how can we induct them?

There are some issues, which cannot wait - they vary according to your situation. Perhaps a

buddy system on the job may be the best way to deal with such situations. (This is a

system being followed by many US universities receiving lot of foreign students. A local

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student is given a foreign student as buddy to help in all matters in the initial days.) Other

subjects may be incorporated with refresher training for current staff, or handled as

participant in an outside program. Perhaps some can wait until there are groups of people

who have started in the last few months.

This may take some creative thinking, but the answer is quite simple - until the new people

are integrated, they are less useful. The mathematics of Induction and orientation is often

amazingly simple - not investing time and money to train costs more than training would.

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M U L T I S K I L L I N G

Definition

Multi-Skilling- the ability of an employee to perform more than one function or the cross-

training of an employee in several disciplines or tasks.

Multi-Skilling is training of an employee to be able to do more than one job with equal

dexterity.

Multi-Skilling is immensely beneficial to any organisation. Apart from flexibility to

redeploy man power as per changing needs, it also keeps the labour costs low. Many

complex jobs require different skills to accomplish though involvement of each skill may

be for very short duration. Thus, in absence of multi-skilled workers, the team becomes

very large and there is inadequate utilisation of team members. But, if the team members

are multi-skilled, team size can be kept small and thus the labour cost in minimised. In

addition, often job is accomplished much faster with better quality as no time is lost in

explaining the job requirements by one team member to another with attendant risks of

misunderstanding and rework. Bank tellers are examples of multi-skilling. Result is much

faster service.

Imagine the state of extension counters of banks at school or college premises which are

operated by just one or two employees. Those one or two people perform all the functions

which take up to 7 -8 people in bigger branches. Opening the bank, opening new account,

attending queries, accepting deposits and dispensing cash, verification of signatures,

maintaining account books and many other tasks are done by them. If such multi-skilling

was not available with the banks, such branches would have become unviable. Even in the

larger branches,

Advantages of Multi-Skilling (Tangible Benefits)

1. Work force is more flexible.

2. Smaller team size for complex tasks requiring multiple skills.

3. Faster job

4. Labour cost economy

5. Employees can assume other tasks when there is absenteeism.

6. Employees can be moved into other positions in case of overload of any

department.

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Advantages of Multi-Skilling (Intangible Benefits)

1. Employees become more aware of the workflow.

2. Employees are better prepared to anticipate problems or requirements of other

areas.

3. A new employee at a job may have new ideas to fine-tune that job.

4. Employees overcome feelings of having a dead-end job.

5. Jobs remain interesting and challenging.

6. Tedious tasks can be spread around, decreasing turnover.

7. Boredom in the workplace is reduced.

8. Cohesiveness is enhanced.

Disadvantages of Multi-Skilling

1. Possible reduction in productivity during the training period/longer training period.

2. Increased supervisory time is required until the employee is up to speed.

3. Competence assessments may be more detailed than in traditional systems.

4. Chances of partial skilling in various jobs instead of fully skilled in any one.

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C H A N G E M A N A G E M E N T

Change Management is a Critical HR Professional Skill

Definitions:

1. The adoption of a new idea or behaviour by an organization.

2. Alterations in People, Structure and Technology

Change has become inevitable due to: -

(a) Technology

(b) Competition

(c) Growing customer needs

(d) Environment

(e) Politics

HR’s role in the change process is to help forecast future changes, develop systems and

policies for managing human capital before, during & after the change.

Change can be classified as follows: -

Structural Changes Technological Changes People Changes

Authority

Coordination

Centralization

Processes

Methods

Equipments

Attitudes

Expectations

Behaviours

E X T E R N A L F O R C E S O F C H A N G E

1. Marketplace

2. Labour markets

3. Economic Changes

4. Technology

5. Laws and Regulations

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I N T E R N A L F O R C E S O F C H A N G E

1. Corporate Strategies

2. Workplace

3. Technology and Equipments

4. Employee Attitudes

C H A N G E A G E N T S ( WHO CAN BRING ABOUT CHANGE?)

1. Managers

2. External Consultants

3. Staff Specialists

P R O C E S S O F C H A N G E

Lewin’s Three-Step Procedure of Change

1. Unfreeze present level of behaviour

2. Movement from present to new

3. Refreezing process

Kotter’s Change Management Model

1. Unfreeze

2. Establish Sense of Urgency

3. Form Powerful Guiding Coalition

4. Create the Vision

5. Communicate the Vision

R E S I S T A N C E / B A R R I E R S T O C H A N G E

1. Fear of uncertainty or unknown

2. Fear of economic loss

3. Social pressures/peer pressure

4. Perceived inconveniences

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5. Fear of loss of power

6. Need for new styles/skills/knowledge

7. Resistance from groups

8. Organisational culture

9. Feeling of insecurity

10. Lack of incentives

M A N A G I N G C H A N G E

It involves: -

1. Strategic planning and alignment

2. Minimising resistance

3. Maximising acceptance

4. External environment assessment

5. Change of Organisational structure and culture

6. Developing work climate to enhance teamwork, trust and co-operation

7. Whole hearted implementation

T E C H N I Q U E S O F R E D U C I N G R E S I S T A N C E

1. Education through communication

2. Participation of affected people from beginning rather than at the end. Making the

potential hardliners a member of the committee designing the change.

3. Facilitation through support to people to overcome the blues of change

4. Negotiation – Give and take attitude

5. Manipulation – co-option

6. Explicit or implicit coercion

Mixed strategies are used to overcome change

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F O U R P H A S E S O F T R A N S I T I O N - O L D T O N E W

1. Denial –

Diagnosis: Common to observe withdrawal; focusing on the past;

increased activity with reduced productivity.

Management: Confront with information; reinforce reality of change;

explain what they can do; give them time.

2. Resistance –

Diagnosis: Anger, blame, depression, resentment, continued lack of

productivity.

Management: Listen, acknowledge feelings, be empathetic; help people to

say good by to the old; sometimes ritual is important. Offer

rewards for change, be optimistic.

3. Exploration –

Diagnosis: Confusion, chaos; energy; new ideas; lack of focus.

Management: Facilitate brainstorming, planning, help people to see

opportunity, create focus through short term wins.

4. Commitment –

Diagnosis: Enthusiasm & cooperation; people identify with

organization; look for new challenges.

Management: Set long term goals; reward those who have changed.

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O R G A N I Z A T I O N A L D E V E L O P M E N T

T E C H N I Q U E S

Survey Feedback

Sensitivity Training

Process Consultation

Team Building

Inter-group Development

Conditions Facilitating Change

Dramatic Crisis

Leadership Change

Weak Culture

Young and Small Organization (ageing)

The Road to Change in Culture

Analyze the culture

Need for change

New leadership

Reorganize

Restructure

New stories and rituals

Change the job systems

T Q M V / S . R E E N G I N E E R I N G

TQM (Total Quality Management) Re engineering

Continuous Change

Fixing and Improving

Mostly focused on ‘As-Is’

Systems indispensable

Bottom to Top

Radical and One time Change

Redesigning

Mostly focused on ‘what can be?’

Top to Bottom

Managing Downsized Workforce

Open and honest communication

Assistance to them

Help for survivors of the downsized

Stress in Workplace

Opportunities stress

Demands stress

Constraints stress

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H O W T O R E D U C E W O R K P L A C E S T R E S S

Biggest source of stress is Uncertainty. Quite often worst of the result is less painful than

the anxiety waiting for it. If you can reduce uncertainty, stress will automatically reduce.

However, reducing uncertainty is not always possible. Some of these methods can be

employed to reduce work place stress: -

1. Organizational communication: Clear and prompt communication of policies and

decisions can help in keeping the stress within manageable limits.

2. Performance Assessment is another source of anxiety. Clear predefined

performance parameters will take the uncertainty out of assessment and also

anxiety.

3. Job Redesign, especially when processes change, jobs merging, and relocation

happens

4. Employee Counselling

5. Time management programs for employees: In the busy life of today, time

management is another source of stress for a lot of employees. Time management

programs will allow them to fill in more events into their daily life and reduce

stress.

W H Y C H A N G E M A N A G E M E N T ?

Change is the only constant in today’s world. And the rate of change is faster than ever.

You can not escape change. The choice is - You can bring the change yourself at your pace,

place and time, or Allow it to overcome you at its own choosing of time, place and pace.

Fighting against change can slow it down or divert it temporarily, but it won't stop. If you

wish to succeed in this rapidly changing new world "you must learn to look at change as a

friend - one who presents you with an opportunity for growth and improvement." Earlier

you change, higher the benefits. Those who recognise the changing trends and change

simultaneously are successful. Those who anticipate/foresee the impending change and

prepare according are the ones who are hugely successful. But those who lead the change

are the ones who make the fortune.

The rate of change in today's world is constantly increasing. Rate of obsolescence and

therefore replacement is increasing. New, better, safer and cheaper products are entering

the market at constantly decreasing interval. Changes in technology is leading to changes in

business models and customer behaviour. True success and long-term prosperity in the new

world depends on your ability to adapt to different and constantly changing conditions.

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But despite all this, basic human nature, that resists change, is still intact. Any attempt to

bring change is fiercely resisted. And if the resistance is not well managed, it can be

catastrophic for the organisation. Therefore, change management assumes criticality.

E V O L U T I O N A R Y ( P L A N N E D ) C H A N G E V E R S U S

R E V O L U T I O N A R Y ( F O R C E D ) C H A N G E S

How you change a business unit to adapt to shifting economy and markets is a matter of

management style. Evolutionary change, that involves setting direction, allocating

responsibilities, and establishing reasonable timelines for achieving objectives, is relatively

painless. However, it is rarely fast enough or comprehensive enough to move ahead of the

curve in an evolving world where stakes are high, and the response time is short. When

faced with market-driven urgency, abrupt and sometimes disruptive change, such as

dramatic downsizing or reengineering, may be required to keep the company competitive.

In situations when timing is critical to success, and companies must get more efficient and

productive rapidly, revolutionary change is demanded.

When choosing between evolutionary change and revolutionary action, a leader must

pursue a balanced and pragmatic approach. Swinging too far to revolutionary extreme may

create "an organizational culture that is so impatient, and so focused on change, that it fails

to give new initiatives and new personnel time to take root, stabilize, and grow. What's

more, it creates a high-tension environment that intimidates rather than nurtures people,

leaving them with little or no emotional investment in the company."

C R E A T I N G C H A N G E F O R I M P R O V E M E N T A N D

C O M P E T I T I V E A D V A N T A G E

Change creates opportunities, but only for those who recognize and seize it. "Seeing is the

first step, seizing the second, and continuously innovating is the third." Innovation

redefines growth opportunities. As current products are becoming obsolete faster than ever,

in order to survive and prosper, organizations continually need to improve, innovate and

modify their products and services. The Silicon Valley slogan "Eat lunch and you are

lunch" is more than a reflection of increasingly intense work ethic. Riding the wave of

change is becoming the most important part of the business. While the economy is shifting

and innovation is rampant, "doing it the same way" is a recipe for corporate extinction.1

Successful change efforts are those where the choices both are internally consistent and fit

key external and situational variables. "You have to find subtle ways to introduce change,

new concepts, and give feedback to people so that they can accept and grow with it."

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P E R F O R M A N C E A P P R A I S A L S

W H A T I S P E R F O R M A N C E A P P R A I S A L ?

Performance Appraisals is the assessment of individual’s performance in a systematic way.

It is a developmental tool used for all round development of the employee and the

organization. The performance is measured against a number of factors. These factors can

be divided into two groups.

(a) General personality such as initiative, leadership qualities, dependability,

team spirit, etc.

(b) Professional qualities like job knowledge, quality and quantity of output,

versatility and so on.

Factors vary from organization to organization and job to job. For a soldier, courage and

endurance are more important factors. But for the Army General, his tactical abilities are

more important. On the other side, a foreman in a factory would never be assessed for his

courage. Assessment is often not confined to past performance but checks for potential

performance also. The second definition brings in focus behaviour because behaviour

affects not only employee’s performance but even his peers’ and subordinates’.

Definition 1: “It is a systematic evaluation of an individual with respect to present

performance on the job and his potential.”

Definition 2: “It is formal, structured system of measuring/evaluating job related

behaviours and outcomes to discover how an employee has performed on the job and how

he can perform more effectively in future so that employee, organization and society, all

benefits.”

P E R F O R M A N C E A P P R A I S A L S A N D J O B

A N A L Y S I S R E L A T I O N S H I P

Job Analysis Performance Standard Performance Appraisal

Describes the work and

personnel requirement of a

particular job

Translate job requirements

into levels of acceptable or

unacceptable performance

Describe the individual’s

past performance,

suitability and potential.

Objectives: Performance appraisals are used as a basis for following activities: -

1. Promotions

2. Confirmations

3. Training and Development program planning

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4. Compensation reviews

5. Competency building

6. Evaluation of HR Programs

7. Feedback & Grievances

P E R F O R M A N C E A P P R A I S A L P R O C E S S

1. Setting Objectives and Standards of performance

2. Design an appropriate appraisal program – Appraisal program for different levels of

employees would be different.

3. Performance Interviews

4. Appraise and record the performance

5. Use and store data for appropriate purposes

6. Identify opportunities variables

T E C H N I Q U E S / M E T H O D S O F P E R F O R M A N C E

A P P R A I S A L S

Numerous methods have been devised to measure the quantity and quality of performance

appraisals. Each of the methods is effective for a particular class of employees in certain

types of organization only.

Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods

Future Oriented Methods

P A S T O R I E N T E D M E T H O D S

1. Rating Scales: This is simplest and most popular method. Rating scales consist of

grading an employee’s past performance on a scale of say 1 -10. Each of the selected

performance attribute is numerically marked and then totalled to arrive at the final figure.

Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large

number of employees covered, no formal training required. Disadvantages – Rater’s biases.

2. Checklist: Under this method, checklist of “Statements of Traits” of employee in

the form of Yes or No based questions is prepared. Here, the rater only does the reporting

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or checking and HR department does the actual evaluation. Advantages – economy, ease of

administration, limited training required, standardization. Disadvantages – Rater’s biases,

use of improper weights by HR Deptt, does not allow rater to give relative ratings.

3. Forced Choice Method: A series of statements arranged in the blocks of two or

more are given and the rater indicates which statement is true or false. The rater is forced to

make a choice. HR department does actual assessment. Advantages – Absence of personal

biases because of forced choice. Disadvantages – Statements may not be correctly framed.

4. Forced Distribution Method: One of the problems faced in large organizations is

relative assessment tendencies of raters. Some are too lenient and others too severe. This

method overcomes that problem. It forces every one to do a comparative rating of all the

employees on a predetermined distribution pattern of good to bad. Say 10% employees in

Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average

Grade and 10% in Unsat grade. The real problem of this method occurs in organizations

where there is a tendency to pack certain key departments with all good employees and

some other departments with discards and laggards. Relatively good employees of key

departments get poor rating and relatively poor employees of laggards’ departments get

good rating.

10% 20% 40% 20% 10%

Unsat Below Avg Average Good Excellent

5. Critical Incidents Method: It takes cognisance of abnormal incidences only,

good or bad. Supervisors record such incidents as and when they occur. Advantages –

Evaluations are based on actual job behaviours. Ratings are supported by descriptions, thus

favouritism is beaten. Feedback is easy and reduces recency biases. Disadvantages –

Negative incidents may get priority or incidences could be forgotten.

6. Field Review Method: This method is useful only for senior positions in a large

organisation spread over cities and countries. Appraisal is done by someone outside

employees’ own department usually from corporate or HR department. Advantages –

Useful for managerial level promotions, when comparable information is needed, on

employees working at distant locations in different set of conditions. Disadvantages –

Outsider is generally not familiar with employees’ work environment, Observation of

actual behaviours not possible.

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7. Performance Tests & Observations: This is based on the test of knowledge or

skills. The tests may be written or an actual presentation of skills. Tests must be reliable

and validated to be useful. Advantage – Tests only measure potential and not attitude.

Actual performance is more a function of attitude of person than potential. Disadvantages –

Some times costs of test development or administration are high.

8. Confidential Reports: Though popular with government departments, its

application in industry is not ruled out. Here the report is given in the form of Annual

Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to

the assessee is given only in case of an adverse entry. Disadvantage is that it is highly

prone to biases and recency effect and ratings can be manipulated because the evaluations

are linked to future rewards like promotions, good postings, etc.

9. Essay Method: In this method the rater writes down the employee description in

the form of an essay. Advantage – It is extremely useful in filing information gaps about

the employees that often occur in a better-structured checklist. Disadvantages – It its highly

dependent upon the writing skills of rater and most of them are not good writers. Moreover,

it is also time consuming and therefore affects full assessment. Also, comparative or

relative performance among employees is not clearly demarcated.

10. Cost Accounting Method: Here performance is evaluated from the monetary

returns yield to his or her organization. Cost to keep employee, and benefit the organization

derives is ascertained. Hence, it is more dependent upon cost and benefit analysis.

11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are

collection of different methods that compare performance with that of other co-workers.

The usual techniques used may be ranking methods and paired comparison method.

Ranking Method: Superior ranks his worker based on merit, from best to

worst. However how best and why best are not elaborated in this method. It is easy

to administer.

Paired Comparison Method: In this method each employee is paired with

every other employee in the same cadre and then comparative rating done in pairs

so formed. The number of comparisons may be calculated with the help of a

formula – N x (N-1) / 2. The method is too tedious for large departments and often

such exact details are not available with rater.

F U T U R E O R I E N T E D M E T H O D S

12. Management By Objectives (MBO): Performance is rated against the

achievement of objectives mutually agreed by the employee and the management.

Advantage – It is direct and accurate and transparent.

Disadvantages – Applicable only to quantifiable jobs. Short-term goals given preference at

the cost of long-term goals etc.

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13. Psychological Appraisals: These appraisals are more directed to assess

employees potential for future performance rather than the past one. It is done in the form

of in-depth interviews, psychological tests, and discussion with supervisors and review of

other evaluations. It is more focused on employees emotional, intellectual, and

motivational and other personal characteristics affecting his performance. This approach is

slow and costly and may be useful for bright young members who may have considerable

potential. However quality of these appraisals largely depends upon the skills of

psychologists who perform the evaluation.

14. Assessment Centres: This technique was first developed in USA and UK in

1943. An assessment centre is a central location where managers may come together to

have their participation in job related exercises evaluated by trained observers. It is more

focused on observation of behaviours across a series of select exercises or work samples.

Assessees are requested to participate in in-basket exercises, work groups, computer

simulations, role playing and other similar activities which require same attributes for

successful performance in actual job.

Disadvantages – Concentrates on future performance potential. No assessment of past

performance. Costs of employees travelling and lodging, psychologists. Ratings strongly

influenced by assessee’s inter-personal skills. Solid performers may feel suffocated in

simulated situations.

Advantages – Well-conducted assessment centre can achieve better forecasts of future

performance and progress than other methods of appraisals. Also reliability, content

validity and predictive ability are said to be high in Assessment Centres. The tests also

make sure that the wrong people are not hired or promoted. Finally, it clearly defines the

criteria for selection and promotion.

15. 360-Degree Feedback: It is a technique in which performance

data/feedback/rating is collected from all sections of people employee interacts in the

course of his job like immediate supervisors, team members, customers, peers, subordinates

and self with different weightage to each group of raters. This technique has been found to

be extremely useful and effective. It is especially useful to measure inter-personal skills,

customer satisfaction and team building skills. One of the biggest advantage of this system

is that assesssees can not afford to neglect any constituency and has to show all-round

performance. However, on the negative side, receiving feedback from multiple sources can

be intimidating, threatening, expensive and time consuming.

Purpose of performance evaluation is to make sure that employee’s goals, employees

behaviour and feedback about performance are all linked to the corporate strategy.

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E S S E N T I A L S O F A G O O D P E R F O R M A N C E

A P P R A I S A L S Y S T E M :

1. Standardized Performance Appraisal System

2. Defined performance standards – Bench Marks

3. Uniformity of appraisals

4. Trained Raters

5. Use of relevant rating tools or methods

6. Should be based on job analysis

7. Use of objectively verifiable data

8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.

9. Consistent Documentations maintained

10. No room for discrimination based on cast, creed, race, religion, region etc.

Problems of Rating:

1. Leniency & Severity – Either too lenient or too severe. All good or all bad.

2. Central Tendency – Majority is crowded around average.

3. Halo/Gholem Effect – Entire assessment is affected by one or few aspects.

4. Rater Effect – Favouritism, stereotyping, hostility, etc, kind of biases.

5. Primacy & Recency Effect – Early period or near end period behaviour effects.

6. Perceptual Sets – Effects of old beliefs about groups, regions, groups, etc

7. Spill-over Effects – Effects of previous appraisal affecting recent appraisal

8. Status Effect – High esteemed or low esteemed job bearing on the appraisal.

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H U M A N R E S O U R C E A U D I T

N A T U R E O F H R A U D I T

HR Audit is a tool for evaluating the personnel activities of an organization. The audit may

include one division or entire company. It gives feedback about HR functions to operating

managers and HR specialists. It also shows how well managers are meeting HR duties.

In short HR audit is an overall control check on HR activities in a division or a company

and evaluation of how these activities support organization’s strategy.

B A S I S O F H R A U D I T (PERSONNEL RESEARCH)

1. Wage Surveys

2. Recruitment Sources effectiveness

3. Training efforts effectiveness

4. Supervisor’s effectiveness

5. Industrial dispute settlements

6. Job Analysis

7. Job Satisfaction Survey

8. Employee needs survey

9. Attitude Surveys

10. Accident frequency surveys

B E N E F I T S O F H R A U D I T

1. Assessment of contributions of HR department

2. Improvement of professional image of HR department

3. Encouragement of greater responsibility and professionalism among HR members

4. Clarification of HR duties and responsibilities

5. Stimulation of uniformity of HR policies and practices

6. Finding critical personnel problems

7. Ensuring timely compliance with legal requirements

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8. Reduction of HR costs through more effective personnel procedures

9. Creation of increased acceptance of changes in HR department

10. A thorough review of HR information systems

S C O P E A N D T Y P E S O F H R A U D I T

HR Audit must cover the activities of the department and even extend beyond because the

people problems are not confined to HR department alone. Based on this, HR audit can be

spread across following four different categories.

1. Human Resource Function Audit

2. Managerial Compliance Audit

3. Human Resource Climate Audit

(a) Employee Turnover

(b) Absenteeism

(c) Accidents

(d) Attitude Surveys

4. HR - Corporate Strategy Audit

A P P R O A C H E S T O H R A U D I T

1. Comparative Approach (Benchmarking with another company)

2. External Authority Approach (Outside consultants’ standards)

3. Statistical Approach (Statistical measures and tools)

4. Compliance Approach (Legal and company policies)

5. Management By Objectives Approach (Goals & Objectives based)

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M O T I V A T I O N T H E O R I E S

Performance is a function of ability and motivation. P = f (A x M)

Definition:

Motivation is a set of forces that cause internal desire in people to behave in certain ways.

M O T I V A T I O N P R O C E S S ( 6 S T E P S )

1. Identify Individual’s Needs

2. Search for ways to satisfy needs

3. Goal & Objectives directed

4. Increased performance

5. Receiving rewards or punishment

6. Reassessment of needs

C R I T I C A L I T Y O F M O T I V A T I O N T O M A N A G E R S

Manager is responsible for improving the productivity of his subordinates and ensuring

that his they contribute towards the objective and mission of the organisation. It is only

possible when employees perform at their maximum efficiency level. Motivation is a tool

to achieve high level of performance from employees. Depending upon the direction,

motivation can achieve one or more of the objectives below: -

1. Motivation improves productivity.

2. Motivation stimulates both participation and production at work

3. Motivation helps employees find new ways of doing a job

4. Motivation makes employees quality conscious

5. Motivation improves job related behaviour.

6. Motivation increases attention towards human resources along with physical

resources

C H A L L E N G E S O F M O T I V A T I O N

1. Diverse and changing workforce

2. Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies

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3. Motives can only be inferred, not seen

4. Dynamic nature of human needs

T H E O R I E S O F M O T I V A T I O N

E A R L Y T H E O R I E S

Scientific Management (F.W. Taylor): Motivation by scientific management is

associated with F.W. Taylor’s techniques of scientific management. Taylor said that people

are primarily motivated by economic rewards and will take direction if offered an

opportunity to improve their economic positions. Based on this Taylor described following

arguments

Physical work could be scientifically studied to determine optimal method of doing

of a job.

Workers can be made more efficient by telling them how they were to do a job.

Workers would accept the above prescription if paid on differentiated piecework

basis.

Disadvantages – Dehumanized workers, treated them as mere factors of production,

only stressed on monetary needs, ignored human needs.

Human Relations Model (Elton Mayo): Elton Mayo’s human relations model,

developed through Hawthorne Studies, stressed on social contacts as motivational factor.

Greater importance was given to informal groups. However, too much reliance on social

contacts to improve productivity was a major drawback.

C O N T E M P O R A R Y T H E O R I E S

Content Theories (Maslow’s Need Hierarchy, Hertzberg’s 2-factors, Alderfer’s ERG,

Achievement Motivation Theory)

Process Theories (Vroom’s expectancy, Adam’s Equity, Porter’s Performance and

Satisfaction Model)

Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth)

ERG theory emphasizes more on three broad needs that is Existence, Relatedness and

Growth. Its hypothesis is that there may be more than one need operating at the same time.

ERG theory further states that when a higher level need is frustrating, the individual’s

desire to increase lower level needs takes place. Thus, ERG theory contains frustration-

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regression dimension. Frustration at higher level need may lead to regression at lower level

need.

Advantages – More consistent with our knowledge of differences among people, it is less

restrictive and limiting, it is a valid version of need hierarchy.

Disadvantages – No clear-cut guideline of individual behaviour patterns, too early to pass

a judgment on the overall validity of the theory.

Two-Factor Theory (Hertzberg)

Fredrick Hertzberg states that the motivation concept is generally driven by two factors of

motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are

generally achievement, recognition, the work itself, responsibility, advancement and

growth, which are related to job satisfaction. Hygiene factors deal with external factors like

company policy, supervision, administration and working conditions, salary, status,

security and interpersonal relations. These factors are known as hygiene factors or job

dissatisfiers, job context factors.

Advantages – Tremendous impact on stimulating thought on motivation at work, increased

understanding of role of motivation, specific attention to improve motivational levels, job

design technique of job enrichment is contribution of Hertzberg, double dimensions of two

factors are easy to interpret and understand.

Disadvantages – Limited by its methodology, reliability questioned, it focuses more on job

satisfaction not on motivation, no overall measure of satisfaction utilized, inconsistent with

previous research, productivity factor ignored.

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M O R A L E

Definition 1:

Morale is a mental condition or attitude of individual and groups, which determines their

willingness to co-operate.

Definition 2:

Morale is attitudes of individuals and groups towards their work environment and towards

voluntary cooperation to the full extent of their ability in the best possible interest of the

organization.

Morale can be said to be a combination of satisfaction, happiness and enthusiasm.

Distinction between Morale and Motivation: -

Morale Motivation

1. Composite of feelings, attitudes and

sentiments that contribute towards

general satisfaction at workplace.

2. A Function of freedom or restraint

towards some goal.

3. It mobilizes sentiments.

4. Morale reflects Motivation.

1. Motivation moves person to action.

2. A Process of stimulating individuals

into action to accomplish desired goals.

3. A Function of drives and needs.

4. It mobilizes energy.

5. Motivation is a potential to develop

morale.

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P E R S O N N E L P O L I C I E S

M E A N I N G O F P E R S O N N E L P O L I C Y

A Policy is a Plan of Action. It is a statement of intentions committing the management to a

general course of action. A Policy may contain philosophy and principles as well. However

a policy statement is more specific and commits the management to a definite course of

action.

Hence Personnel policy is the company’s plan of action towards treatment of its employees

in matters of pay, benefits, welfare, work, etc. A personnel policy spells out basic needs of

the employees. Through personnel policy the personnel department ensure a fair and

consistent treatment to all personnel by minimizing favouritism and discrimination.

Personnel policy serves as a standard of treatment to all employees. Sound personnel

policies help build employee motivation and loyalty. And this happens when personnel

policies reflect fair play and justice and help people grow within the organization.

Personnel policies are also plans of action to resolve intra-personal, inter-personal and

inter-group conflicts.

I M P O R T A N C E O F P E R S O N N E L P O L I C Y

Personnel policy is very important for an organization since it gives several benefits for

managing the human resources effectively. Listed below are some of the benefits:

1. Consistent Treatment: Personnel policies ensure consistent treatment of all

personnel throughout the organization.

2. Fair Play & Justice: Personnel policies reflect established principles of fair

play and justice.

3. Minimize Favouritism: Personnel policies help minimize favouritism and

discrimination

4. Promote Stability: Personnel policies ensure continuity of action plan even if top

management is changed. These policies promote stability.

5. Motivation & Loyalty: Sound Personnel policies help build employee

motivation and loyalty.

6. Basic Needs: Personnel policy helps the management to think deeply about basic

needs of organization and the employees.

7. Standard of Performance: Personnel policies serve as a standard of performance.

8. Growth: Personnel policies help people grow within the organization.

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W O R K E R S ’ P A R T I C I P A T I O N I N M A N A G E M E N T

Broadly, worker’s participation in management means associating representatives of

workers at every stage of decision-making. Participative management is considered as a

process by which the worker’s share in decision-making extends beyond the decisions that

are implicit in the specific content of the jobs they do. This amounts to the workers having

a share in final managerial decisions in an enterprise.

S C O P E O F W O R K E R S ’ P A R T I C I P A T I O N

Scope of workers participation ranges over three managerial decision-making stages.

1. Social Decisions: Hours of work, welfare measures, work rules, safety, health,

sanitation and noise control.

2. Personnel Decisions: Recruitment and selection, promotions and transfers,

grievance settlements, work distribution

3. Economic Decisions: Methods of manufacturing, automation, lay offs, shut-

downs, mergers and acquisitions and other financial aspects.

M E T H O D S O F W O R K E R S ’ P A R T I C I P A T I O N I N

M A N A G E M E N T

1. Board Level

2. Ownership (share allocation)

3. Complete Control

4. Staff Councils

5. Joint Councils

6. Collective Bargaining

7. Job Enlargement and Enrichment

8. Suggestion Schemes

9. Quality Circles

10. Empowered Teams

11. Total Quality Management

12. Financial Participation

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B E N E F I T S O F P A R T I C I P A T I O N

1. Gives identity to an employee

2. Motivates employee

3. Self-esteem, job satisfaction and cooperation improves

4. Reduced conflicts and stress between Management and workers

5. More commitment to goals

6. Less resistance to change

7. Less labour problems

8. Better quality suggestions expected

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U N I O N S

Employee associations are popularly known as unions. Although they have become

synonymous with strikes and unreasonable demands, their role is much wider than this.

Unions make their presence felt in recruitment and selection, promotions, training,

termination or lay off. Many programs, which contribute to the Quality of Work Life

(QWL) and productivity, are undertaken by management in consultation with and with the

cooperation of the unions. Unions also participate in deciding wage and salary structure

and negotiate revisions once in 3 or 5 years.

Trade unions are voluntary organizations of workers or employers formed to promote their

interests through collective action. Trade unions Act 1926 defines a trade union as a

combination, whether temporary or permanent formed primarily for the purpose of

regulating the relation between

1. Workmen and Employers

2. Workmen and Workmen

3. Employers and Employers

For imposing restrictive conditions on the conduct of any trade or business and includes

any federation of two or more trade unions

W H Y D O E M P L O Y E E S J O I N T R A D E U N I O N S ?

1. To protect themselves against exploitation by management

2. By force

3. Dissatisfaction

4. Lack of Power

5. Union Instrumentality

R O L E O F C O N S T R U C T I V E A N D P O S I T I V E

U N I O N

Unions have a crucial role to play in Industrial Relations. Unions have following broad role

or objectives as mentioned below.

1. To redress the genuine grievances of individual worker vis-à-vis the individual

employer, by substituting joint or collective action for individual action.

2. To secure improved terms and conditions of employment for its members and the

maximum degree of security to enjoy these terms and conditions.

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3. To obtain improved status for the worker in his work or her work

4. To increase the extent to which unions can exercise democratic control over

decisions, which affect their interests by power sharing at the national, corporate

and plant levels.

The union power is exerted primarily at two levels. Industry level to establish joint

regulation on basic wages and hours with an employer’s association. Plant level, where the

shop stewards organizations exercise joint control over some aspects of the organization of

work and localized terms and conditions of employment.

Unions are party to national, local and plant level agreements, which govern their actions to

a greater or lesser extent, depending on their power and on local circumstances.

U N F A I R L A B O R P R A C T I C E S

Industrial Disputes Act, 1947, specifies the following as unfair labour practices:

1. To interfere, restrain, coerce workmen in the exercise of their right to organize,

form, join or assist a trade union.

2. Threatening workmen with discharge or dismissal

3. Threatening of lockout or closure

4. Granting wage increases to undermine trade union efforts

5. To dominate, interfere with or support financially or socially by taking active

interest in forming own trade union, and

6. Showing partiality or granting favours to one of several trade unions

7. To establish employer sponsored trade unions

8. To encourage or discourage memberships in any trade union by discriminating

workman by punishing or discharging, changing seniority ratings, refusing

promotions, giving unmerited promotions, discharging union office bearers

9. To discharge or dismiss workmen by victimizing, not in good faith, implicating in

criminal case for patently false reasons.

10. To abolish work of a regular nature

11. To transfer workmen

12. To show favouritism or partiality

13. To replace workers

14. To recruit workmen during legal strikes

15. To indulge in acts of violence or force

16. To refuse collective bargaining

17. Proposing and continuing lockouts

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O R G A N I Z A T I O N A L D O W N S I Z I N G

Downsizing necessarily means reducing work force to an optimal level depending upon the

business conditions and organizational needs. It is said that an organization should be

rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly

following method used to downsize the workforce as mentioned below.

R E T R E N C H M E N T

It means termination of service. It is a termination for reasons other than disciplinary

actions, retirement or superannuating, expiry and termination of contract or prolonged

illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for

retrenchment. If notice and compensation are not given, the worker will not be called as

retrenched. Compensation is payable for 15 days wages for every completed year of service

besides one month’s notice or pay in lieu of notice. But employee should have completed at

least one year of complete service in order to receive compensation.

L A Y O F F S

Lay off is inability of the employer to provide employment to workers due to

circumstances beyond his control such as shortage of power, coal, breakdown of

machinery, natural calamity etc. It is not a termination of service. Lay off compensation

can be claimed as a statutory right by the worker if he has completed one year of

continuous service or has worked for 240 days on the surface or 190 days underground in

12 calendar months. Compensation payable is half of the wages.

V O L U N T A R Y R E T I R E M E N T S C H E M E S

VRS are announced when there is a huge pool of old aged manpower occupying senior

positions amounting to surplus. Many organizations are providing liberal incentives to

leave before age of superannuation. VRS in other words is a retirement before the age of

retirement.