mhrm - importance

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S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND

ECONOMICS

MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON

‘HRM – In!"#$% &$# '( $n O#"$n)*$)'n’

SUBMITTED B+

PRITHI ACHAR+A

M.COM SEM. I/ ECONOMICS

SUBMITTED TO

UNIERSIT+ OF MUMBAI

01-014

PROJECT GUIDE

P#'( . D#. M#* )n)$ P)2&$%!



CERTIFICATE

This is to certify that M#.P#)3) A53$#6$ of M.Com ( Business Management)

Semester I (2013-2014) has successfuy com!ete" the !ro#ect on M$%&'TIST%$T'I'S un"er the gui"ance of P#'(. *r. (Mrs) +inita ,im!ae.

,ro#ect ui"eInterna 'aminer 'terna

'aminer

,rof. /////////////////////// ,rof.

////////////////////////

*r. (Mrs) +inita ,im!ae *r.(Mrs) Shoana

+asu"ean

Course Co-or"inator ,rinci!a

D$!- S!$% '( 3! C'%%!"!



AC7NO8LEDGEMENT

I acnoe"ge the auae assistance !roi"e" y S. , Man"ais %. $.,o"ar Coege of Commerce 5 'conomics6 for to year "egree course in

M.Com.

I s!eciay than the ,rinci!a *r.(Mrs) Shoana +asu"ean for aoing

us to use the faciities such as 7irary6 Com!uter 7aoratory6 internet

etc.

I sincerey than the M.Com Co-or"inator for gui"ing us in the right

"irection to !re!are the !ro#ect.

I than my gui"e ,rof. *r. (Mrs) +inita ,im!ae ho has gien hisher

auae time6 noe"ge an" gui"ance to com!ete the !ro#ectsuccessfuy in time.

My famiy an" !eers ere great source of ins!iration throughout my

!ro#ect6 their su!!ort is "ee!y acnoe"ge".

Signature of the Stu"ent



DECLARATION

I6 ,rithi $charya of R. A. PODAR COLLEGE OF

COMMERCE ECONOMICS of M.Com S'M'ST'% I6

herey "ecare that I hae com!ete" the !ro#ect 89%M : Integra

,art ;f $n ;rganisation in the aca"emic year 2013-2013 for the

su#ect M-9%M.

The information sumitte" is true an" origina to the est of my

noe"ge.

Signature of the Stu"ent

1.1

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INDE:

In#';<5)'n

RETAIL INDUSTR+ IN INDIA

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RESEARCH METHEDOLOG+

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23-24

CONCLUSIONS ANDRECOMMENADATION

2<-2=

BIBLIOGRAPH+ 2@

HUMAN RESOURCE MANAGEMENT

INTRODUCTION



H<2$n #!*'<#5! 2$n$"!2!n (HRM6 or sim!y HR ) is the management of

an organiAations orforce6 or human resources. It is res!onsie for

the attraction6 seection6 training6 assessment6 an" rear"ing of em!oyees6 hie aso

oerseeing organiAationa ea"ershi! an" cuture an" ensuring com!iance

ith em!oyment an" aor as. In circumstances here em!oyees "esire an" are

egay authoriAe" to ho" a coectie argaining agreement6 9% i aso sere as the

com!anys !rimary iaison ith the em!oyees re!resentaties (usuay a aor union).

9% is a !ro"uct of the human reations moement of the eary 20th century6 hen

researchers egan "ocumenting ays of creating usiness aue through the strategic

management of the orforce. The function as initiay "ominate" y transactiona

or6 such as !ayro an" enefits a"ministration6 ut "ue to goaiAation6 com!anyconsoi"ation6 technoogica a"ancement6 an" further research6 9% no focuses on

strategic initiaties ie mergers an" acuisitions6 taent management6 succession

!anning6 in"ustria an" aor reations6 an" "iersity an" incusion.

In startu! com!anies6 9%s "uties may e !erforme" y traine" !rofessionas. In arger

com!anies6 an entire functiona grou! is ty!icay "e"icate" to the "isci!ine6 ith staff

s!eciaiAing in arious 9% tass an" functiona ea"ershi! engaging in strategic "ecision

maing across the usiness. To train !ractitioners for the !rofession6 institutions of higher

e"ucation6 !rofessiona associations6 an" com!anies themsees hae create" !rograms of

stu"y "e"icate" e!icity to the "uties of the function. $ca"emic an" !ractitioner

organiAations ieise see to engage an" further the fie" of 9%6 as ei"ence" y seera

fie"-s!ecific !uications.

FEATURES OF HUMAN R ESOURCE MANAGEMENT HRM

Dooing is the nature or features of 9uman %esource Management 9%M E-

1 HRM )* $ &#'5!** of four functions E-

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Organization

http://en.wikipedia.org/wiki/Workforce

http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Employer_branding

http://en.wikipedia.org/wiki/Recruitment

http://en.wikipedia.org/wiki/Training_and_development

http://en.wikipedia.org/wiki/Performance_appraisal

http://en.wikipedia.org/wiki/Remuneration

http://en.wikipedia.org/wiki/Leadership

http://en.wikipedia.org/wiki/Organizational_culture

http://en.wikipedia.org/wiki/Labour_law

http://en.wikipedia.org/wiki/Collective_agreement

http://en.wikipedia.org/wiki/Trade_union

http://en.wikipedia.org/wiki/Human_relations_movement

http://en.wikipedia.org/wiki/Payroll

http://en.wikipedia.org/wiki/Employee_benefits

http://en.wikipedia.org/wiki/Globalization

http://en.wikipedia.org/wiki/Mergers_and_acquisitions

http://en.wikipedia.org/wiki/Talent_management

http://en.wikipedia.org/wiki/Succession_planning


http://en.wikipedia.org/wiki/Industrial_relations

http://en.wikipedia.org/wiki/Labor_relations

http://en.wikipedia.org/wiki/Multiculturalism

http://en.wikipedia.org/wiki/Inclusion_(value_and_practice)

http://en.wikipedia.org/wiki/Startup_company

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Organization

http://en.wikipedia.org/wiki/Workforce

http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Employer_branding

http://en.wikipedia.org/wiki/Recruitment

http://en.wikipedia.org/wiki/Training_and_development

http://en.wikipedia.org/wiki/Performance_appraisal

http://en.wikipedia.org/wiki/Remuneration

http://en.wikipedia.org/wiki/Leadership

http://en.wikipedia.org/wiki/Organizational_culture

http://en.wikipedia.org/wiki/Labour_law

http://en.wikipedia.org/wiki/Collective_agreement

http://en.wikipedia.org/wiki/Trade_union

http://en.wikipedia.org/wiki/Human_relations_movement

http://en.wikipedia.org/wiki/Payroll

http://en.wikipedia.org/wiki/Employee_benefits

http://en.wikipedia.org/wiki/Globalization

http://en.wikipedia.org/wiki/Mergers_and_acquisitions

http://en.wikipedia.org/wiki/Talent_management



http://en.wikipedia.org/wiki/Industrial_relations

http://en.wikipedia.org/wiki/Labor_relations

http://en.wikipedia.org/wiki/Multiculturalism

http://en.wikipedia.org/wiki/Inclusion_(value_and_practice)

http://en.wikipedia.org/wiki/Startup_company

http://en.wikipedia.org/wiki/Business



A5<)*))'n '( 3<2$n #!*'<#5!* E This function incu"es 9uman %esource ,anning6

%ecruitment6 Seection6 ,acement an" In"uction of staff.

D!!%'&2!n '( 3<2$n #!*'<#5!* E This function incu"es Training an" *eeo!ment

an" Career "eeo!ment. The noe"ge6 sis6 attitu"es an" socia ehaious of the

staff are "eeo!e".

M')$)'n '( 3<2$n #!*'<#5!* E This function incu"es giing recognition an" rear"s

to the staff. it aso incu"es ,erformance $!!raisa an" han"ing the !roems of staff.

M$)n!n$n5! '( 3<2$n #!*'<#5!* E This function incu"es !roi"ing the est oring

con"itions for em!oyees. It aso oos after the heath an" safety of the staff.

C'n)n<'<* P#'5!**

9%M is not a one-time !rocess. It is a continuous !rocess. It has to continuousy change

an" a"#ust accor"ing to the changes in the enironment6 changes in the e!ectations of the

staff6 etc. 9%M has to gie continuous training an" "eeo!ment to the staff "ue to

changes in technoogy.

F'5<* 'n objectives

9%M gies a ot of im!ortance to achieement of o#ecties.

The four main o#ecties 9%M has to achiee are E-

1. In"ii"ua o#ecties of the staff.

2. rou! or *e!artmenta o#ecties.

3. ;rganisationa o#ecties.

4. Societa o#ecties.

4 Universal Application



9%M has uniersa a!!ication. That is6 it can e use" for usiness as e as for other

organisations such as schoos6 coeges6 hos!ita6 reigious organisations6 etc.

Integrated use of Subsystems

9%M inoes the integrate" use of su-systems such as Training an" *eeo!ment6

Career *eeo!ment6 ;rgnisationa *eeo!ment6 ,erformance $!!raisa6 ,otentia

$!!raisa6 etc. $ these susystems increase the efficiency of the staff an" ring success

to the organisation.

Multidisciplinary

9%M is muti"isci!inary. That is6 it uses many "ifferent su#ects such as ,sychoogy6

Communication6 ,hioso!hy6 Socioogy6 Management6 '"ucation6 etc.

Developes Team Spirit

9%M tries to "eeo! the team s!irit of the fu organisation. Team s!irit he!s the staff to

or together for achieing the o#ecties of the organisation. o-a-"ays more

im!ortance is gien to team or an" not to in"ii"uas.

Develops Staff Potentialities

9%M "eeo!s the !otentiaities of the staff y giing them training an" "eeo!ment.

This i mae the staff more efficient6 an" it i gie them more #o satisfaction.

9 Key Elements for solving problems

To"ay6 e hae ra!i" technoogica6 manageria6 economic an" socia changes. These

changes ring many !roems. 9%M continuousy tries to soe these !roems.



10 ong Term !enefits

9%M rings many ong term enefits to the in"ii"uas (staff)6 the organisation an" the

society. It gies many financia an" non-financia enefits to the staff. It im!roes the

image an" !rofits of the organisation. It aso !roi"es a reguar su!!y of goo" uaity

goo"s an" serices at reasonae !rices to the society.



S5'&! '( H<2$n R!*'<#5! M$n$"!2!n HRM

The Sco!e of 9uman %esource Management 9%M is "iscusse" eo E-

1. H<2$n R!*'<#5! P%$nn)n" HRP

9%, estimates the man!oer "eman" an" man!oer su!!y of the organisation. It

com!ares the man!oer "eman" an" man!oer su!!y. If there is man!oer sur!us

then it gies ountary retirement6 ay-off6 etc. to some em!oyees. If there is

man!oer shortage then it hires em!oyees from outsi"e6 gies !romotion to

em!oyees6 etc.

. A5<)*))'n F<n5)'n

$cuisition function incu"es 9uman %esource ,anning6 %ecruitment6 Seection6

,acement an" In"uction of em!oyees. 9%M uses the scientific seection !roce"ure

for seecting the right man for the right !ost. The Fright manF is gien !ro!er

!acement an" in"uction.

. P%$5!2!n F<n5)'n

9%M aso !erforms the !acement function. ,acement is "one after seection of

em!oyees. It means to !ut the right man in the right !ace of or. ,ro!er !acement

gies #o satisfaction to the em!oyees6 an" it increases their efficiency.

4. P!#('#2$n5! A&&#$)*$%

9%M aso con"ucts a !erformance a!!raisa. ,erformance a!!raisa is a systematic

eauation of the em!oyees !erformance at or. It informs the em!oyees aouttheir strengths an" eaness. It aso a"ises them aout ho to increase their

strengths an" remoe their eanesses.

. C$#!!# D!!%'&2!n

9%M aso he!s the em!oyees in !anning an" "eeo!ing their careers. It informs them

aout future !romotions an" ho to get these !romotions. It he!s them to gro an"

"eeo! in the organisation.

. T#$)n)n" $n; D!!%'&2!n



9%M aso !roi"es training an" "eeo!ment to the em!oyees. Training means to

increase the noe"ge an" sis of the em!oyee for "oing a !articuar #o.

Training gien to managers is cae" "eeo!ment. So6 training is gien to em!oyees

hie "eeo!ment is gien to managers.

. <$%)6 '( 8'#@ L)(! 8L

9%M aso incu"es Guaity of Hor 7ife. GH7 is a techniue for im!roing !ro"uctiity

an" uaity of or. It inoes aour management co-o!eration6 coectie

argaining an" !artici!atie management.

GH7 !roi"es goo" oring con"itions6 #o security6 goo" !ay an" other faciities such

as feie oring hours6 free"om to suggest changes or im!roements6 etc. ;H7

creates a sense of eonging. This enefits the organisation as e as the in"ii"uaem!oyees.

. E2&%'6!!* 8!%($#!

9%M !roi"es em!oyees efare. Hefare measures incu"e !ai" hoi"ays6 me"ica

insurance6 canteen faciities6 recreation faciities6 rest room6 trans!ort faciities6 etc.

,ro!er an" timey efare faciities motiate the em!oyees to or har" in the

organisation.

9. C'2&!n*$)'n F<n5)'n

'm!oyees must e rear"e" an" recognise" for their !erformance. 9%M maes !ro!er

com!ensation !acages for the em!oyees. These !acages motiate the em!oyees

an" increase their morae. %ear"s are gien to in"ii"uas6 an" teams. The rear"s

may e in the form of higher !ay6 onus6 other monetary incenties6 an" non-

monetary incenties such as a certificate of a!!reciation6 etc.

10. L$='<# R!%$)'n*

9%M is aso incu"es in"ustria reations. It incu"es union management reations6 #oint

consutations6 negotiating6 coectie argaining6 grieance han"ing6 "isci!inary

actions6 settement of in"ustria "is!utes6 etc.



11. M$)n!n$n5! F<n5)'n

9%M aso !erforms the maintenance function. That is6 !rotecting an" !romoting theheath an" safety of the em!oyees. 9%M intro"uces heath an" safety measures. It

aso !roi"es other enefits such as me"ica ai"6 !roi"ent fun"6 !ension6 gratuity6

maternity enefits6 acci"ent com!ensation6 etc.6 to the em!oyees.



COMPONENTS OF HRM

HUMAN RESOURCE PLAN

The o#ecties of 9% !an must e "erie" from organiAationa o#ecties. S!ecific

reuirements in terms of numer an" characteristics of em!oyees shou" e "erie" from

the organiAationa o#ecties.

;rganiAationa o#ecties are "efine" y the to! management an" the roe of 9%, is to

su sere the oera o#ecties y ensuring aaiaiity an" utiiAation of human

resources.



;nce the organiAationa o#ecties are "efine" y the to! management an" the roe of

9%, is to su sere the oera o#ecties y ensuring aaiaiity an" utiiAation of

human resources.

;nce the organiAationa o#ecties are s!ecifie"6 communicate" an" un"erstoo" y a

concerne"6 the 9% "e!artment must s!ecify its o#ecties ith regar" to 9% utiiAation in

the organiAation.

"# Demand $orecast

*eman" forecasting is the !rocess of estimating the future uantity an" uaity of !eo!e

reuire". The asis of forecast must e annua u"get an" ong-term cor!orate !an6

transate" into actiity ees for each function an" "e!artment.There are seera goo" reasons to con"uct "eman" forecasting

- Guantify the #os necessary for !ro"ucing a gien numer of goo"s

- *etermine hat staff-mi is reuire"

- $sses a!!ro!riate staffing ees in "ifferent !arts of the organiAation

- ,reent shortages of !eo!e

- Monitor com!iance ith ega reuirements ith regar" to reseration of #os

"# Supply $orecast

,ersonne "eman" anaysis !roi"es the manager ith the means of estimating the

numer an" in" of em!oyees that i e reuire". The net ogica ste! for the

management is to "etermine hether it i e ae to !rocure the reuire" numer of

!ersonne an" the sources for such !rocurement. This information is !roi"e" y su!!y

forecasting. Su!!y forecasting measures the numer of !eo!e iey to e aaiae from

ithin an" outsi"e an organiAation6 after maing aoance for asenteeism6 internamoements an" !romotions6 astage an" changes in hours6 an" other con"itions of or.

reasons for su!!y forecast are

- 9e!s uantify numer of !eo!e an" !ositions e!ecte" to e aaiae

- 9e!s carify staff mies that i eist in the future

- $ssess eisting staffing ees in "ifferent !arts of the organiAation

- ,reents shortage of !eo!e

- Monitors e!ecte" future com!iance ith ega reuirements of #o reserations



"# Programming

;nce an organiAations !ersonne an" su!!y are forecast6 the to must e reconcie" or

aance" in or"er that acancies can e fie" y the right em!oyees at the right time.

"# P A% I MPEME%TATI&%

Im!ementation reuires conerting an 9% !an into action. $ series of action

!rogrammes are initiate" as a!art of 9% !an im!ementation.

- %ecruitment6 Seection an" ,acement : after the #o acancies are non6 efforts

must e ma"e to i"entify sources an" search for suitae can"i"ates. The seection

!rogramme shou" e !rofessionay "esigne".

- Training an" *eeo!ment : The training an" "eeo!ment !rogramme shou"

coer the numer of trainees reuire" an" !rogrammes necessary for eisting staff

- %etraining an" %e"e!oyment : ne sis are to e im!arte" to eisting staff

hen technoogy changes

- %etention ,an : retention !an coers actions hich ou" he! re"uce aoi"ae

se!arations of em!oyees.

- *onsiAing : here there is sur!us em!oyee6 trimming of aour force i e

necessary

'ontrol and Evaluation

Contro an" eauation re!resents the fifth an" the fina !hase in the 9%, !rocess. The 9r

!an shou" incu"e u"gets6 targets an" stan"ar"s. It shou" aso carify res!onsiiities

for im!ementation an" contro6 an" estaish re!orting !roce"ures6 hich i enae

achieements to e monitore" against the !an.



JOB ROTATION

o rotation im!ies moement of em!oyees from one #o to another.

Hith #o rotation6 a gien em!oyee !erforms "ifferent #os6 ut more or ess of the same

nature.

Hhen an actiity is no onger chaenging6 the em!oyee ou" e rotate" to another #o

at the same ee that has simiar si reuirements.

Advantages of (ob #otation)

• o rotation is a ay to oercome ore"om an" monotony.

• It is iey to increase intrinsic rear" !otentia of a #o ecause of "ifferent sis

an" aiities nee"e" to !erform it.

• Horers ecome com!etent in seera #os rather than ony one6 hich in turn

enefits the organiAation.

• &noing a ariety of #os im!roe the orers sef-image6 !roi"es !ersona

groth an" maes the orer more auae to the organiAation.

• ,erio"ic #o changing can aso im!roe inter"e!artmenta co-o!eration6

em!oyees ecome more un"erstan"ing of each others !roems.

Disadvantages of (ob #otation

• $n em!oyee "oes not gain a !articuar s!eciaiAation.

• Moing from one #o to another aso gets irritating ecause the norma routine

of an em!oyee is "isture" an" aso time is aste" in a"#usting to the ne

#o. The em!oyee may fee aienate" hen heshe is rotate" from #o to #o.

•Training costs are increase"



TRANSFERS

Dirsty hat is a transferJ $ transfer inoes a change in the #o (accom!anie" y a

change in the !ace of the #o) of an em!oyee ithout a change in res!onsiiities or

remuneration. $ transfer "iffers from a !romotion in that the atter inoes a change in

hich a significant increase in res!onsiiity6 status an" income occurs6 ut a these

eements are stagnant in case of a transfer. $nother "ifference is that transfers are reguar

an" freuent6 as in ans an" other goernment estaishments6 ut !romotions are

infreuent.

R!$*'n* ('# #$n*(!#*

The reasons for transfers ary from organiAation to organiAation an" from in"ii"ua to

in"ii"ua ithin an organiAation. Broa"y s!eaing6 the fooing are the reasons for

transfersE

There is a shortage of em!oyees in one "e!artment or !ant ecause of a

heay "eman"6 hich necessitates a reuirement of more em!oyees. In

another "e!artment or !ant6 em!oyees may e sur!us ecause of

sacene" "eman" for the !ro"ucts manufacture" y the com!any. This

i ea" to orers eing i"e an" astage of man!oer. Horers are

thus transferre" from the sur!us "e!artment to another "e!artment or

!ant here there is shortage of staff.

Incom!atiiities eteen the orer an" his or her oss or eteen one

orer an" another orer.

Correction of a rong initia !acement of an em!oyee.

$ change has taen !ace in the interests an" ca!acities of an in"ii"ua6

com!eing him to transfer to a "ifferent #o.

;er a !erio" of time6 the !ro"uctiity of an em!oyee may "ecine

ecause of the monotony of his or her #o. To rea this monotony6 the

em!oyee is transferre".

The cimate may e unsatisfactory for an em!oyees heath. 9e or she

may reuest a transfer to a "ifferent !ace here his or her heath i not

e affecte" y the cimate.



Damiy reate" issues cause transfers6 es!eciay among femae em!oyees

ie hen they get marrie" an" ant to #oin their husan"s.

T6&!* '( #$n*(!#*

1) Production transfers : as mentione" earier6 a shortage or sur!us of the aour

force is common in "ifferent "e!artments in a !ant or seera !ants in an

organiAation. Sur!us em!oyees in a "e!artment hae to e ai" off6 uness they

are transferre" to another "e!artment. Transfers effecte" to aoi" such imminent

ay-offs are cae" !ro"uction transfers.

2) Replacement transfers : re!acement transfers are too inten"e" to aoi" imminent

ay-offs6 es!eciay of senior em!oyees. $ #unior em!oyee may e re!ace" y a

senior em!oyee to aoi" aying off the senior one. $ re!acement transfer usuay

taes !ace hen a the o!erations are "ecining an" it is carrie" out to retain

ong-serice em!oyees as ong as !ossie.

3) Versatility transfers : ersatiity transfers are "one to mae em!oyees ersatie

an" com!etent in more than one si. Cerica em!oyees in ans6 for eam!e

are transferre" from one section to another so that they acuire the necessary sis

to atten" to the arious actiities of the an. +ersatie transfers may e use" as a

!re!aration for !ro"uction or re!acement transfers.

4) Shift transfers : generay s!eaing6 in"ustria estaishments o!erate more than

one shift. Transfers eteen shifts are common6 such transfers eing ma"e mosty

on a rotation asis. Transfers may aso e effecte" on s!ecia reuests from

em!oyees. Some reuest a transfer to the secon" shift or the night shift in or"er to

aai the free time "uring the "ay to tae u! !art time #os.

<) Remedial transfers : reme"ia transfers are effecte" at the reuest of em!oyees

an" are therefore cae" !ersona transfers. %eme"ia transfers tae !ace in

instances ie

the initia !acement of an em!oyee may hae een fauty or



the orer may not get aong ith his or her su!erisor or ith other

orers in the "e!artment

he or she may e getting too o" to continue in his or her reguar #o or

the ty!e of #o or oring con"itions may not e e a"a!te" to his or her

!ersona heath

if the #o is re!etitie6 the orer may stagnate an" in a such instances

the em!oyee ou" enefit y transfer to a "ifferent in" of or.



HRM M';!%

ature of 9%M

9uman%esource

,anning

o $naysis

%ecruitment

Seection

,acement

Training an"

*eeo!ment

%emuneration

Motiation

,artici!atie

Management

Communication

Safety an"

9eath

Hefare

,romotions etc

In"ustria

%eations

Tra"e Knionism

*is!utes

$n" their

Settement

Duture of 9%M

The HRM 2';!% contains a 9% actiities. Hhen these actiities are "ischarge"

effectiey6 they i resut in a com!etent an" iing orforce ho i he! reaiAe

Com!etent

an" iing

orforce

;rganiAationa

oas

' n 1 i r o n m e n t

n t



organiAationa goas. There is another ariae in the mo"e : enironment. It may e

state" that the 9% function "oes not o!erate in acuum. It is infuence" y seera

interna an" eterna forces ie economic6 technoogica6 !oitica6 ega6 organiAationa6

an" !rofessiona con"itions.

HRM/ is a management function that he!s managers recruit6 seect6 train6 an" "eeo!

memers for an organiAation.

H<2$n R!*'<#5! P%$nn)n"/ is un"erstoo" as the !rocess of forecasting an organiAations

future "eman" for6 an" su!!y of6 the right ty!e of !eo!e in the right numer.

J'= An$%6*)*/ is the !rocess of stu"ying an" coecting information reating to the

o!erations an" res!onsiiities of a s!ecific #o. The imme"iate !ro"ucts of this anaysis

are #o "escri!tions an" #o s!ecification.

R!5#<)2!n/ is the !rocess of fin"ing an" attracting ca!ae a!!icants for em!oyment.

The !rocess egins hen ne recruits are sought an" en"s hen their a!!ications are

sumitte". The resut is a !oo of a!!icants from hich ne em!oyees are seecte".

S!%!5)'n/ is the !rocess of "ifferentiating eteen a!!icants in or"er to i"entify (an"

hire) those ith greater ieihoo" of success in a #o.

P%$5!2!n/ is un"erstoo" as the aocation of !eo!e to #os. It is the assignment or re-

assignment of an em!oyee to a ne or "ifferent #o.

T#$)n)n" $n; ;!!%'&2!n/ it is an attem!t to im!roe current or future em!oyee

!erformance y increasing an em!oyees aiity to !erform through earning6 usuay y

changing the em!oyees attitu"e or increasing his or her sis an" noe"ge. The nee"

for training an" "eeo!ment is "etermine" y em!oyees !erformance "eficiency6

com!ute" as foosE

Training an" "eeo!ment nee" L Stan"ar" !erformance : $ctua !erformance

R!2<n!#$)'n/ is the com!ensation an em!oyee receies in return for his or her

contriution to the organiAation.



M')$)'n/ is a !rocess that starts ith a !sychoogica or !hysioogica "eficiency or

nee" that actiates ehaior or a "rie that is aime" at a goa or an incentie.

P$#)5)&$)! 2$n$"!2!n/ Horers !artici!ation may roa"y e taen to coer a

terms of association of orers an" their re!resentaties ith the "ecision maing

!rocess6 ranging from echange of information6 consutations6 "ecisions an" negotiations

to more institutionaiAe" forms such as the !resence of orers memers on management

or su!erisory oar"s or een management y orers themsees as !ractice" in

ugosaia. ((I7;)

C'22<n)5$)'n/ may e un"erstoo" as the !rocess of echanging information6 an"

un"erstan"ing among !eo!e.

S$(!6 $n; 3!$%3/ Safety means free"om from the occurrence or ris of in#ury or oss. In

or"er to ensure the continuing goo" heath of their em!oyees6 the 9%M focuses on the

nee" for heathy orers an" heath serices.

8!%($#!/ as "efine" y I7; at its $sian %egiona Conference6 "efine" aour efare as a

term hich is un"erstoo" to incu"e such serices6 faciities6 an" amenities as may e

estaishe" in or in the icinity of un"ertaings to enae the !erson em!oye" in them to

!erform their or in heathy6 congenia surroun"ings an" to !roi"e them ith amenities

con"ucie to goo" heath an" high morae.

P#'2')'n*/ means an im!roement in !ay6 !restige6 !osition an" res!onsiiities of an

em!oyee ithin his or her organiAation.

T#$n*(!#/ inoes a change in the #o (accom!anie" y a change in the !ace of the #o)

of an em!oyee ithout a change in the res!onsiiities or remuneration.

S!&$#$)'n*/ 7ay-offs6 resignations an" "ismissas se!arate em!oyees from the

em!oyers.

In;<*#)$% #!%$)'n*/ is concerne" ith the systems6 rues an" !roce"ures use" y unions

an" em!oyers to "etermine the rear" for effort an" other con"itions of em!oyment6 to



!rotect the interests of the em!oye" an" their em!oyers6 an" to reguate the ays in

hich em!oyers treat their em!oyees.

T#$;! Un)'n*/ are ountary organiAations of orers or em!oyers forme" to !romote

an" !rotect their interests through coectie action.

D)*&<!* $n; 3!)# *!%!2!n/ In"ustria "is!utes mean any "is!ute or "ifference

eteen em!oyers an" em!oyers6 or eteen em!oyers an" ormen6 or eteen

ormen an" ormen6 hich is connecte" ith the em!oyment or non-em!oyment or

terms of em!oyment or ith the con"itions of aour of any !erson.



PERSONNEL MANAGEMENT * HRM

D)2!n*)'n P!#*'nn!% M$n$"!2!n HRM

1. 'm!oyment contract Carefu "eineation of

ritten contracts

$ims to go 8eyon"

contract.

2. %ues Im!ortance of "eising cear

rues

Can "o6 outoo6 im!atience

ith rue

3. ui"e to management

action

,roce"ures Business nee"

4. Behaiour referent orms customs an"

!ractices

+auesmission

<. Manageria tas is-N-is

aour

Monitoring urturing

=. &ey reations 7aour management Customer

@. Initiaties ,iecemea Integrate"

>. S!ee" of "ecision So Dast

?. Management roe Transactiona Transformationa ea"ershi!

10. Communication In"irect *irect

11. ,riAe" management

sis

egotiation Daciitation

12. Seection Se!arate6 margina tas Integrate"6 ey tas

13. ,ay o eauation ,erformance reate"

14. Con"itions Se!aratey negotiate" 9armoniAation

1<. 7aour management Coectie-argaining

contracts

In"ii"ua contracts

1=. o categories an"

gra"es

Many De

1@. o "esign *iision of aour Team or

1>. Confict han"ing %each tem!orary truce Manage cimate an" cuture

1?. Training an"

"eeo!ment

Controe" access to courses 7earning com!anies

20. Docus of attention for

interentions

,ersonne !roce"ures Hi"e ranging cutura6

structura an" !ersonne

strategies

21. %es!ect for em!oyees 7aour is treate" as a too

hich is e!en"ae an"

re!aceae

,eo!e are treate" as assets

to e use" for the enefit of

an organiAation6 its

em!oyees an" the society

as a hoe

22. Share" interest Interests of the organiAation

are u!!ermost

Mutuaity of interests

23. 'oution ,rece"es 9%M 7atest in the eoution of the

su#ectPERSONNEL MANAGEMENT



DEFINITIONS OF PERSONNEL MANAGEMENTK HRM

The term !ersonne management is "efine" in "ifferent ays. The fooing "efinitions

are orth notingE

(1) $ccor"ing to '"in Di!!oF ,ersonne management is the !anning6 organiAing6

"irecting6 an" controing of the !rocurement6 "eeo!ment6 com!ensation6 integration6

maintenance6 an" se!aration of human resources to the en" that in"ii"ua6

organiAationa an" societa o#ecties are accom!ishe"F.

(2) $ccor"ing to eorge %. Terry6 F,ersonne management is concerne" ith the

otaining an" maintaining of a satisfactory an" satisfie"6 or forceF.

(3) $ccor"ing to Hater *. Scott6 F,ersonne management is concerne" ith the

attaining of maimum in"ii"ua "eeo!mentO "esirae oring reationshi! eteen

em!oyer an" em!oyees6 an" an effectie mou"ing of human resources as contraste"

ith !hysica resourcesF.

(4) $ccor"ing to British Institute of ,ersonne Management6 7on"on6 F,ersonne

Management is that !art of management hich is concerne" ith the !eo!e at or

an" ith their reationshi! ithin an enter!riseF.

OBJECTIESKPURPOSES OF PERSONNEL MANAGEMENT K HUMAN

RESOURCE MANAGEMENT/

The asic o#ectie of !ersonne management is to maintain efficient team of orers

for the enefit of the organiAation. In a""ition6 to !roi"e o!!ortunities of sef-

"eeo!ment to em!oyees an" finay to maintain congenia or atmos!here an"inter-!ersonne reations are the o#ecties of !ersonne management. ,ersonne

management aims at giing fair treatment to em!oyees as regar" ages6 efare

faciities6 non-monetary enefits6 oring con"itions an" so on.

The o#ecties of 9%M are "erie" from the asic o#ecties of an organiAation. In

or"er to achiee organiAationa o#ecties6 integration of em!oyers interest an"

em!oyee interests is necessary.



The o#ecties of !ersonne management9%M in any in"ustria organiAation can e

summariAe" as un"er.

(1) To attain maimum in"ii"ua "eeo!ment (sef-"eeo!ment) of the memers of

an organiAation an" aso to utiiAe aaiae human resources (ith the organiAation)

fuy an" effectiey.

(2) To mou" effectiey the human resources.

(3) To estaish "esirae oring reationshi!s eteen em!oyer an" em!oyees an"

eteen grou!s of em!oyees.

(4) To ensure satisfaction to the orers so that they are freey rea"y to or.

(<) To im!roe the serice ren"ere" y the enter!rise to the society through etter

em!oyee morae6 hich ea"s to more efficient in"ii"ua an" grou! !erformance.

(=) To estaish an" maintain a !ro"uctie an" sef res!ecting reationshi! among a the

memers of an organiAation.

(@) To ensure the aaiaiity of a com!etent an" iing orforce to the organiAation

for its !rogress an" !ros!erity.

(>) To he! organiAation to achiee its goas y !roi"ing e traine"6 efficient an"

!ro!ery motiate" em!oyees.

(?) To maintain high morae an" goo" human reations ithin the organiAation for the

enefit of em!oyer an" em!oyees.

(10) To secure the integration of a the in"ii"uas an" grou!s ith the organiAation y

reconciing in"ii"uagrou! goas ith those of an organiAation.



HUMAN RESOURCE MANAGEMENT

MEANING AND DEFINITION

,ersonne refers to the em!oyees oring in an organiAation at "ifferent ees.

,ersonne management (aso cae" human resource management) is that as!ect of tota

usiness management6 hich "eas ith human reationshi!s ithin an organiAation.

,ersonne re!resent human resource6 hich is "ifferent from materia resources.

9uman resource is the most !ro"uctie an" most ersatie. In a""ition6 the man!oer in

an organiAation nee"s human treatment. 'm!oyees hae a ca!acity to fee6 thin an"

een to react. Management has to "ea ith the em!oyees in a carefu an" tactfu

manner. Materia resources such as an"6 machines6 ra materias6 eui!ment6 etc. are

easy to manage. This is ecause they hae no ca!acity to fee or thin or react. This is not

the case ith human resource i.e. man!oer. Man an" machines are not on !ar an" must

not e treate" in the same manner. This is ecause of a the resources man!oer is the

ony resource6 hich "oes not "e!reciate6 ith the !assage of time. $ccor"ing to ,eter D.

*rucert KtIe !ros!erity6 if not the suria of any usiness "e!en" on the !erformance

of its managers of tomorro.F The materia resources aone i not he! the organiAation

to achiee its o#ecties. Dor this6 effectie co-or"ination an" utiiAation of materia an"

human resources are reuire". This suggests the im!ortance of human resources.

The human resource is ery im!ortant an" usefu. It shou" e nurture" an" use" for the

enefit of the organiAation. This is a chaenging #o efore !ersonne

managermanagement. The organiAation can mae ra!i" !rogress ony hen the

em!oyees are satisfie" an" co-o!eratie. ;n the other han"6 the organiAation i hae to

face arious !roems an" "ifficuties6 if the em!oyees are not co-o!eratie ut hostie.

This in"icates that human resource is most strategic an" critica "eterminant of groth of

a usiness unit. 'ery organiAation nee"s oya6 efficient an" satisfie" aour force. Dor

this6 a"euate attention shou" e gien to !ersonne management.



OBJECTIES OF HRM

Same as o#ecties of !ersonne management (gien aoe)

FUNCTIONS OF HRM

$ !ersonne manager has to !erform the asic functions of management. These

manageria functions incu"e !anning6 organiAing6 "irecting an" controing !ersonne.

The o!eratie functions of the "e!artment areE !rocurement of staff6 "eeo!ment of staff

through training6 !ayment of com!ensation to staff i.e. ages an" saaries6 integration of

man!oer i.e. fair reconciiation of in"ii"ua6 socia an" organiAationa goas an"

interests an" maintenance of staff i.e. !roi"ing them safety at the or !ace an" aso to

offer efare faciities an" coneniences to em!oyees. In rief6 !ersonne managementinoes the fooing o!erationa functionsE

(1) P#'5<#!2!n '( 2$n&'?!#/ ,rocurement means acuiring the man!oer

reuire" y an organiAation from time-to-time. The asic ,rinci!e in

!rocurement is Fright man for the right #oF. The !rocurement function incu"es

man!oer !anning an" forecasting6 recruitment6 seection6 a!!ointment6

!acement an" in"uction of em!oyees so as to hae a team of efficient an"ca!ae em!oyees for the enefits of the organiAation. 'en !romotions an"

transfers are coere" y this roa" !ersonne function.

(2) D!!%'&2!n '( 2$n&'?!#/ *eeo!ment of man!oer (human resource

"eeo!ment) means !anning an" eecution of the training !rogrammes for a

categories of em!oyees in or"er to "eeo! ne sis an" uaities reuire" for

oring at the higher ee. Man!oer "eeo!ment is !ossie through training

an" career "eeo!ment !rogrammes an" not sim!y y offering attractie ages

to orers. 'ecutie "eeo!ment !rogrammes are intro"uce" for the enefit of

higher-ee managers SimiaryO future man!oer reuirement i e6 met

internay through 9%* !rogrammes. It aims at e"ucating an" training em!oyees

for the im!roement of oera !erformance of an organiAation. 9%* (9uman

%esource *eeo!ment) !rogrammes are for e"ucation6 training an" "eeo!ment

of eisting man!oer in an organiAation. This is for facing ne !roems an"

chaenges iey to "eeo! in the near future.



(3) C'2&!n*$)'n &$62!n ' 2$n&'?!# !2&%'6!;E ;ne function of 9%M is to

!ay com!ensation (in monetary form) to em!oyees for the serices ren"ere". Dor

this6 a fair system of remuneration !ayment (ages an" saaries) nee"s to e

intro"uce". %emuneration to em!oyees shou" e attractie so that the aour

force i e satisfie" an" "is!utes6 etc. i e minimiAe". Dair age !ayment

acts as a motiating factor.

(4) In!"#$)'n '( )n!#!** '( 2$n&'?!# $n; 3! '#"$n)$)'n/ Man!oer is

intereste" in age !ayment hie organiAation is intereste" in higher !rofits6

consumer oyaty6 maret re!utation an" so on. 9%M has to reconcie the interests

of the in"ii"ua memers of the organiAation ith those of the organiAation.

(<) M$)n!n$n5! '( 2$n&'?!#/ This man!oer function reating to maintaining

satisfie" man!oer in the organiAation through the !roision of efare faciities.

Dor this6 attention nee"s to e gien to heath an" safety measures6 maintenance

of !ro!er oring con"itions at the or !ace6 !roision of efare faciities an"

other non-monetary enefits so as to create efficient an" satisfie" aour force

ith high morae. 'en coectie argaining an" orers !artici!ation come

ithin this roa" !ersonne function.

(=) P#')*)'n '( ?!%($#! ($5)%))!*E 'm!oyees are offere" arious efare faciities.

They incu"e me"ica6 e"ucationa6 recreation6 housing6 trans!ort an" so on.

(@) M)*5. (<n5)'n*/ Misc functions un"er 9%M incu"e maintenance of serice

recor"s of em!oyees (hich are use" for !romotionstransfers !erformance

a!!raisa6 etc.)6 !romotions an" transfers of em!oyees6 maintaining cor"ia

in"ustria reations6 intro"uction of rationa grieance !roce"ure6 !erformance

eauation of em!oyees6 career !anning of em!oyees6 maintenance of

"isci!ine6 a"ministering the !oicies ith regar" to "isci!inary action an"

com!iance of arious aour as.



EOLUTION OF HRM IN INDIA

The im!ortance of !ersonnehuman resources management is no uniersay acce!te"

an" In"ia is not an ece!tion to this rue. In In"ia6 arge usiness enter!rises6 !uic sectorenter!rises an" een me"ium an" sma enter!rises a!!oint !ersonne manager or human

resources "eeo!ment (9%*) manager to oo after the !ersonne functions such as

recruitment6 !romotions an" transfers6 training an" man!oer "eeo!ment6 !roision of

efare faciities6 com!ensation management an" so on. The term 9%M is a reatiey

ne term emerge" "uring the 1?@0s. It is no use" as a etter an" meaningfu sustitute

to !ersonne management. 9%M is i"er in sco!e an" has its "istinct !hioso!hy.

The !rocess of in"ustria "eeo!ment starte" in In"ia rather ate. It as "uring the British

%ue an" that too after the Dirst Hor" Har that tetie6 #ute6 iron an" stee an" other

organise" in"ustries starte" in In"ia. %ecruitment6 age !ayment6 efare faciities an"

other !ersonne !roems ere note" ony hen aour cass as em!oye" on a arge

scae in the in"ustria sector. This is the starting !erio" for !ersonne management in

In"ia. In the eary British !erio" an" !rior to that !ersonne management an" !ersonne

functions ere asent6 (%eference to some !ersonne functions an" systematicmanagement of resources as ma"e in &autiyas Arthashastra "uring the 4th century

Be.) as in"ustria actiities ere etremey imite". They ere aso con"ucte" on a sma

scae. $s com!are" to In"ia6 the in"ustria groth as ra!i" in 'uro!e. $s a resut6 the

conce!t of !ersonne functions an" !ersonne management ma"e ra!i" !rogress. The

conce!t of !ersonne management function in In"ia is ase" on simiar conce!t "eeo!e"

in 'uro!e much earier.

The !ersonne function in In"ia has een the !ro"uct(outcome) of arious factors such as

in"ustria groth6 aour6 egisation6 e!oitation of orers in the eary !erio" an" their

"eman" for certain asic necessities of ife. (e.g. fair age6 eey6 hoi"ay6 essentia

faciities at the or !ace)The nee" for aour officers in In"ian in"ustry as

fetreaiAe" as eary as 1?2? for the !rotection of aour force in in"ustria units.

In 1?316 the memers of Bomay Mi oners $ssociation a!!ointe" 7aour ;fficers in

their tetie mis (on ountary asis) for the settement of grieances an" "is!utes of



em!oyees. Simiar arrangement as intro"uce" in the #ute mis in Benga (un"er the

ea"ershi! of ute Mis $ssociation). The aour efare officers ere gien the

res!onsiiity to !romote s!orts an" efare actiities an" !roi"e foo" sho!s (canteen

faciity) to orers.

$fter In"e!en"ence6 many !ro aour egisations ere ma"e for the !rotection an"

efare of orers. The sco!e of !ersonne management function as ma"e more roa"

an" iera. Many !roisions regar"ing recruitment6 saary !ayment an" con"itions of

serice ere ai" "on. This gae recognition to the !ersonne management function in

the in"ustria estaishments.

ra"uay6 the nee" of !ersonne management an" its roe in cor"ia aour reations an"

fair treatment to em!oyees nee" ere recogniAe" y in"ustria organiAations. ,ersonne

"e!artments un"er the ea"ershi! of !ersonne managers ere starte" in the com!anies.

7iera efare faciities ere intro"uce" for the enefit of em!oyees. Such measures

taen for the !rotection an" efare of em!oyees enarge" the sco!e of !ersonne

management. 'en training an" man!oer "eeo!ment !rogrammes a""e" ne

"imensions to the actiities of !ersonne management. Many com!anies hae no6

!re!are" e-"efine" !ersonne !oicies6 grieance an" other !roce"ures an" iera

!acage of efare faciities. Such a""itiona actiitiesfunctions un"er !ersonne

management raise" the im!ortance an" !o!uarity of !ersonne "e!artment.



oa"ays6 the em!oyees are eing force" to atten" sef-im!roement an" oera

"eeo!ment !rogrammes com!usoriy ithout the staffs noe"geinterest an"

com!anies are s!en"ing huge amounts on such efare actiities6 hich are

asoutey re"un"ant an" shou" e eiminate" from the system.

,ay !acages an" incenties hae to e su!!emente" ith some su!!ementary

!acages ut the com!any tries to re!ace the monetary enefits y some

orsho!s or seminars or !resentations or training courses hich "emotiate the

orers ecause their e!ectations are eing ignore" in the argain. He oo at

the career "eeo!ment of !eo!e ery strongy. He "o not eiee that e shou"

e the highest !aymasters.



STRATEGIC HRM

Strategic Management is "efine" as 8 the set of manageria "ecisions an" actions that

"etermine the ong-term !erformance of a cor!oration. It incu"es enironmenta scanning6strategy formuation6 strategy im!ementation an" eauation an" contro. The stu"y of

strategic management6 therefore6 em!hasiAes monitoring an" eauating enironmenta

o!!ortunities an" threats in the ight of a cor!orations strengths an" eanesses.

The strategic management !rocess inoes the fooing four !rocesses.

The a"ent of 9%M has rought the inage eteen em!oyer-em!oyee reationshi! an"

strategic management to shar! focus.

Since 'nironmenta Scanning he!s i"entify threats an" o!!ortunities !reaiing in the

eterna an" interna enironment6 9%M is of great he! in ocating o!!ortunities an"

threats.

9%M is in a uniue !osition to su!!y com!etitie inteigence that may e usefu in

S#$!"6 F'#2<%$)'n. *etais regar"ing a"ance" incentie !ans eing use" y

com!etitors6 o!inion-surey "ata from em!oyees that eicit information aout customercom!aints6 an" information aout !en"ing egisation ie aour as or man"atory heath



insurance are some eam!es. The strengths an" eanesses of a com!anys human

resources can hae a "etermining effect on the iaiity of a com!anys strategic o!tions.

Kniue 9% ca!aiities sere as a "riing force in strategy formuation. $ com!any may

ui" its ne strategy aroun" a com!etitie6 a"antage stemming from its human

resource. The e non accounting an" consutancy firm6 $rthur $n"erson6 "eeo!e"

uniue 9% ca!aiities in training6 hich !roi"es the firm ith a com!etitie a"antage

enaing it to !roi"e fast an" uniform in-house training.

9%M su!!ies a com!any ith a com!etent an" iing orforce hich is res!onsie for

eecuting strategies i.e S#$!"6 I2&%!2!n$)'n. Dor eam!e Maruti K"yog an"

9in"ustan Motors are manufacturing cars6 essentiay using i"entica technoogy. The secret

ehin" the meteoric rise of Maruti is its orforce.

9%M su!!orts strategy im!ementation in other ays too. Dor eam!e human resource

to"ay is heaiy inoe" in the eecution of a com!anys restructuring an" "onsiAing

strategies6 through out!acing em!oyees6 instituting !erformance ine" !ay !ans6

re"ucing heath care costs an" retraining em!oyees. $n" in an increasingy com!etitie

goa maret !ace6 instituting 9% !ractices that ui" em!oyee commitment can he!

im!roe an organiAations res!onsieness.

7asty 9uman %esource Management must e continuousy eauate" to mae strategic

management highy effectie y su!!ying human resources ho are com!etent an"

committe". Thus Strategic 9uman resource Management to"ay is gien "ue im!ortance

an" offers seera financia an" non-financia enefits to a com!any.



NE8 TRENDS IN HRM

M$IST%'$M economists !erceie ountary retirement as a measure to she" the

orforce hose margina !ro"uctiity is Aero. Durther6 it is argue" that this cou" e

intro"uce" in an in"ustria organiAation for maintaining its cost effectieness in an

increasingy com!etitie or". Moreoer6 ountary retirement is accom!anie" y

technoogica mo"erniAation that arrants the re!acement of aor ith ca!ita.

Technoogica mo"erniAation im!roes the !ro"uctiity of eisting orforce so much so

that a section of the eisting orforce ecomes again re"un"ant een as mo"erniAation

enhances the instae" ca!acity of the technoogy. The orforce that ecomes re"un"ant

in this !rocess has to retire or e retrenche".

The rationae ehin" the intro"uction of ountary retirement scheme (+%S) in In"ia is

that any organiAe" in"ustria organiAation has to o!erate ithin the eisting egisatie

frameor6 hich "oes not ao the organiAation to she" the re"un"ant orforce

ithout a"euate com!ensation

'm!oyers refer to +%S as go"en han"shae6 tra"e unions ca it ountary

retrenchment scheme6 an" for the goernment6 it is unstate" eit !oicy hich means

that an eit !oicy hich may not eist on !a!er. +%S is one of the strategies intro"uce"

in the eary 1?>0s in centra !uic sector un"ertaings (,SKs) to re"uce the so-cae"

sur!us or re"un"ant orforce. It gaine" !uicity after the intro"uction of ne

economic !oicy in 1??1. In In"ia6 the goernment em!oys more than @0 !er cent of the

organiAe" orforceO it uses a its channes to re"uce the organiAe" sector of the

orforce ithout antagoniAing the tra"e unions. It is enisage" in the ne economic

!oicy that +%S can !roi"e minimum sustenance security to the retire" in"ii"ua an"

his famiy.

Tra"e unions !ay a crucia roe in intro"ucing the +%S in any organiAe" sector firm.

The main o#ectie ehin" the scheme is to sen" out those ho cannot e retraine" in

ne sis. The !remise of the argument a!!ears to e ea. The ieraiAation !oicy6 in

its aniety to mo"erniAe6 restructure an" goaiAe the !ro"ucts of In"ian in"ustry6 is

asting !recious aor force that cou" hae een mo"erniAe" through retraining an" on-

the-#o training. ,recious sis an" aiities of the retrenche" orforce are euate" ith



orn out !hysica ca!ita that may not e susce!tie to re!air or mo"erniAation. $re

human eings not ca!ae of earning an" mo"ifying their noe"ge6 sis an" a!!ying

the same to !ro"uce higher out!utJ The current em!hasis on restructuring "oes not ao

such uestions.

The free economy an" tra"e ieraiAation hae ushere" in the nee" for the enter!rises to

hae a com!etitie e"ge. 'conomic forces hae e" to organiAationa cost cutting6

changes in !ro"uction !rocesses6 e!oration of ne marets6 !ant reocations6

mo"erniAations6 "onsiAing an" structura changes.

;rganiAationa a"#ustment at a ees has ecome etremey im!eratie. ;er manning

has cre!t into amost a in"ustria units on account of the inaiity of the enter!rises tore"uce or a"#ust orforce as !er the usiness nee"s. The sort of cuts that ony ha!!ene"

in heay in"ustries has no ecome i"es!rea". The "ays of niing aay "ea"oo"

hae ong gone. Its time for the organiAations to reaign an" focus on the core

com!etencies.



THE GOLDEN HANDSHA7E

+ountary %etirement Scheme (+%S) is the atest mantra of many a cor!orate an" ,uic

sector units. The com!any may "eci"e to "ecare a +%S ase" on their 9% !an an"

suitaiity. Dor a common saarie" in"ii"ua this ecomes a ma#or "ecision.

The com!any as !er their human resource !oicy "ecares +%S or the +ountary

%etirement Scheme. +%S is a scheme herey the em!oyee is offere" to ountariy

retire from his serices efore his retirement "ate. Su#ect to certain con"itions the

com!any offers +%S to its em!oyees It is the go"en route to cut the ecess fa. The

most humane techniue to retrench the em!oyees in the com!any to"ay is the ountary

retirement scheme. It is the go"en han"shae for the em!oyees an" the ony o!tion

to"ay for the com!anies to "onsiAe their hea"count. The scheme hich is formay

!ermitte" y the *e!artment of ,uic 'nter!rises an" hich !roi"es the ucratie ay

for the em!oyees to terminate their serices an" acce!t +%S.

This !rocess shou" conince them that the !osts in the organiAation hae ecome

re"un"ant an" not the !erson an" the organiAation sti aues the !erson. Since this

!rocess inoes emotions an" feeings6 eery care must e taen y the management that

the !rocess must e carrie" out in such a manner that it ee!s the "ignity of the

em!oyees ut at the same time achiees the o#ectie in a tactfu manner.

PIN7 SLIP

$ F!in si!F is a notice of "ismissa or termination from ones #o6 aso non as ones

Faing !a!ers.F The term F!in si!F "ates from the eary 20th century6 an" originay

referre" to the !ractice of incu"ing a !in-coore" si! of !a!er in an em!oyees eey

!ay eneo!e notifying the orer of his or her termination. There "oes not seem to e

any !articuar significance to the use of the coor !in asi"e from the fact that it ma"e the

notice stan" out from any other !a!ers that might e in the eneo!e.

Though the F!in si!F in the !ay eneo!e has !roay een su!erse"e" y e-mai these

"ays6 Fto e !in si!!e"F is sti ery much in use as shorthan" for Fto e fire".F



CONCLUSION

Is 9% an integra !art of an organiAation J

• 9% manages human taent.

• 9% is the !acemaer an" !eacemaer of the organiAation.

• 9% ui"s a !oerfu6 energetic6 motiate" an" creatie orforce.

• 9% is often the "ifferentiating factor eteen successfu an" unsuccessfu

com!anies.

•

9% nurtures the human taent in the organiAation.

• 9% he!s ca!ture the customers noe"ge.

• 9% is more aie than "ea".

• 9% is the essence of aoun" ,eo!e Management ,rocess.

• 9% is ase" on trans!arent ehaior.

es6 9% is an integra !art of an organiAation.



BIBLIOGRAPH+

•

9uman resource an" !ersonne management-2

n"

e"ition -$satha!!a• 9uman %esources management-&ae 5 $hme"

• Internet

Hii!e"ia

Management ,ara"ise

$ccount7earning BogS!ot

Citeman

atura 9%

Safari Boos

9%.Com



T3$n@ 6'<,

P#)3) A53$#6$.

mhrm - importance

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