Personnel management can be defined as obtaining, using and maintaining a satisfied workforce.

It is a significant part of management concerned with employees at work and with their relationship within the organization. According to Flippo, Personnel management is the planning, organizing, compensation, integration and maintainance of people for the purpose of contributing to organizational, individual and societal goals. According to Brech, Personnel Management is that part which is pri marily concerned with human resource of organization. Nature of Personnel Management 1. Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization. Personnel management lays emphasize on action rather than making lengthy schedules, plans, work methods. The problems and grievances of people at work can be solved more effectively through rationale personnel policies. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern. It also motivates the employees through its effective incentive plans so that the employees provide fullest co-operation. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as well as blue- collar workers.

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Role of Personnel Manager 1. Personnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can be summarized as : 2. Personnel manager provides assistance to top management- The top management are the people who decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the personnel manager. 3. He advices the line manager as a staff specialist- Personnel manager acts like a staff advisor and assists the line managers in dealing with various personnel matters. 4. As a counsellor,- As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries to solve them in best of his capacity. 5. Personnel manager acts as a mediator- He is a linking pin between management and workers.

6. He acts as a spokesman- Since he is in direct contact with the employees, he is required to act as representative of organization in committees appointed by government. He represents company in training programmes. Functions of Personnel Management Follwoing are the four functions of Personnel Management: Manpower Planning Recruitment Selection Training and Development

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

Steps in Manpower Planning 1. Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted Type of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting. 2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.

Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. 3. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.

4. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers. Importance of Manpower Planning Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money,

efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration) Need of Manpower Planning Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programmes are based on manpower planning. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

Process of Human Resource Planning 1. Analysing the Corporate Level Strategies: Human Resource Planning should start with analysing corporate level strategies which include expansion, diversification, mergers, acquisitions, reduction in operations, technology to be used, method of production etc. Therefore Human Resource Planning should begin with analysing the corporate plans of the organisation before setting out on fulfilling its tasks. 2. Demand forecasting: Forecasting the overall human resource requirement in accordance with the organisational plans is one of the key aspects of demand forecasting. Forecasting of quality of human resources like skills, knowledge, values and capabilities needed in addition to quantity of human resources is done through the following methods: a. Executive or Managerial Judgement: Here the managers decide the number of employees in the future. They adopt one of the three approaches mentioned below: Bottom-Up approach: Here the concerned supervisors send their proposals to the top officials who compare these with the organisational plans, make necessary adjustments and finalise them. Top-Down approach: Here the management prepares the requirements and sends the information downwards to the supervisory level who finalises the draft and approves it. Participative Approach: Here the supervisors and the management sit together and projections are made after joint consultations.

Drawbacks The chief drawback of these methods is that estimation of manpower is made using guesswork. b. Statistical Techniques: These methods use statistical methods and mathematical techniques to forecast and predict the supply and demand of Human Resources in the future. Ratio-Trend analysis: In this method depending on the past data regarding number of employees in each department, like production department, sales department, marketing department and workload level, etc ratios for manpower are estimated. Past values are plotted and extrapolated to get fairly accurate future projections. c. Work Study method: This technique is suitable to study the correlation between volume of work and labour i.e. demand for human resources is estimated based on the workload. Work study method is more appropriate for repetitive and manual jobs when it is possible to measure work and set standards. d. Delphi Technique: Delphi Technique is named after the Greek Oracle at the city of Delphi. In this method, the views of different experts related to the industry are taken into consideration and then a consensus about the Human Resource requirement is arrived at. Delphi technique is used primarily to assess long-term needs of human resource. 3. Analysing Human Resource Supply: Every organisation has two sources of supply of Human Resources: Internal & External. Internally, human resources can be obtained for certain posts through promotions and transfers. In order to judge the internal supply of human resources in future human resource inventory or human resource audit is necessary. Human resource inventory helps in determining and evaluating the quantity of internal human resources available. Once the future internal supply is estimated, supply of external human resources is analysed. 4. Estimating manpower gaps: Manpower gaps can be identified by comparing demand and supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the future. Deficit suggests the number of persons to be recruited from outside, whereas surplus implies redundant employees to be re-deployed or terminated. Employees estimated to be deficient can be trained while employees with higher, better skills may be given more enriched jobs. 5. Action Planning: Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may be redeployment in other departments and retrenchment. People may be persuaded to quit voluntarily through a golden handshake. Deficit can be met through recruitment, selection, transfer and promotion. In view of shortage of certain skilled employees, the organisation has to take care not only of recruitment but also retention of existing employees. Hence, the organisation has to plan for retaining of existing employees. 6. Modify the Organisational plans: If future supply of human resources form all the external sources is estimated to be inadequate or less than the requirement, the manpower planner has

to suggest to the management regarding the alterations or modifications in the organisational plans. 7. Controlling and Review: After the action plans are implemented, human resource structure and the processes should be controlled and reviewed with a view to keep them in accordance with action plans.

HRP process 1. Review of Organisation's Objectives The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis. 2. Estimation of Manpower Requirements The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality. 3. Estimation of Manpower Supply The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation. 4. Comparison of Manpower The HRD manager then compares the manpower requirements and manpower supply. 5. In case of no difference If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply. 6. In case of difference If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions. 1. Manpower Surplus If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions : Termination i.e removal of staff.

Lay-off. Voluntary retirement.

2. Manpower Shortage If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions :Promotions Overtime Training to improve quality. Hire staff from outside, etc.

7. Motivation of Manpower HRP also motivates the employers and managers by providing, financial and non-financial incentives. 8. Monitoring Manpower Requirements The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation. Types of Recruitment Recruitment is of 2 types Internal Recruitment - is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions and Re-employment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employees productivity as the ir motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done. Internal sources are primarily 3 Transfers Promotions (through Internal Job Postings) and

Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.

External Recruitment - External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources of recruitment include - Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labour contractors, recommendations etc. Employment at Factory Level - This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as badli workers. Advertisement - It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television. Employment Exchanges - There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange. Employment Agencies - There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns. Educational Institutions - There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions, is called as Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates. Recommendations - There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient. Labour Contractors - These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e.

for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested. But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job. The Employee selection Process takes place in following orderPreliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.

Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training process moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature.

Importance of Training Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well. Training is given on four basic grounds: New candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions. The existing employees are trained to refresh and enhance their knowledge. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing a new equipment, changes in technique of production, computer implantment. The employees are trained about use of new equipments and work methods. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job.

The benefits of training can be summed up as: Improves morale of employees- Training helps the employee to get job security and job satisfaction. The more satisfied the employee is and the greater is his morale, the more he will contribute to organizational success and the lesser will be employee absenteeism and turnover. Less supervision- A well trained employee will be well acquainted with the job and will need less of supervision. Thus, there will be less wastage of time and efforts. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills required for doing a particular job. The more trained an employee is, the less are the chances of committing accidents in job and the more proficient the employee becomes.

Chances of promotion- Employees acquire skills and efficiency during training. They become more eligible for promotion. They become an asset for the organization. Increased productivity- Training improves efficiency and productivity of employees. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained.

Ways/Methods of Training Training is generally imparted in two ways: On the job training- On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The inproficient as well as semi- proficient employees can be well trained by using such training method. The employees are trained in actual working scenario. The motto of such training is learning by doing. Instances of such on-job training methods are job-rotation, coaching, temporary promotions, etc. Off the job training- Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in case of new employees. Instances of off the job training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period. Off the job training is also called as vestibule training,i.e., the employees are trained in a separate area( may be a hall, entrance, reception area,etc. known as a vestibule) where the actual working conditions are duplicated

Job analysis is primary tool in personnel management. In this method, a personnel manager tries to gather, synthesize and implement the information available regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to put right man on right job. There are two outcomes of job analysis : Job description Job specification

The information collected under job analysis is : Nature of jobs required in a concern. Nature/ size of organizational structure. Type of people required to fit that structure. The relationship of the job with other jobs in the concern. Kind of qualifications and academic background required for jobs.

Provision of physical condition to support the activities of the concern. For exampleseparate cabins for managers, special cabins for the supervisors, healthy condition for workers, adequate store room for store keeper.

Advantages of Job Analysis Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job. It helps him to understand extent and scope of training required in that field. It helps in evaluating the job in which the worth of the job has to be evaluated. In those instances where smooth work force is required in concern. When he has to avoid overlapping of authority- responsibility relationship so that distortion in chain of command doesnt exist. It also helps to chalk out the compensation plans for the employees. It also helps the personnel manager to undertake performance appraisal effectively in a concern.

A personnel manger carries analysis in two ways : Job description Job specification

JOB DESCRIPTION is an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as : Title/ Designation of job and location in the concern. The nature of duties and operations to be performed in that job. The nature of authority- responsibility relationships. Necessary qualifications that are required for job. Relationship of that job with other jobs in a concern. The provision of physical and working condition or the work environment required in performance of that job.

Advantages of Job Description It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances. It helps in recruitment and selection procedures. It assists in manpower planning. It is also helpful in performance appraisal. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job. It also helps in chalking out training and development programmes.

JOB SPECIFICATION is a statement which tells us minimum acceptable human qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents are : Job title and designation Educational qualifications for that title Physical and other related attributes Physique and mental health Special attributes and abilities Maturity and dependability Relationship of that job with other jobs in a concern.

Advantages of Job Specification It is helpful in preliminary screening in the selection procedure. It helps in giving due justification to each job. It also helps in designing training and development programmes. It helps the supervisors for counseling and monitoring performance of employees. It helps in job evaluation. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees.

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows: The supervisors measure the pay of employees and compare it with targets and plans. The supervisor analyses the factors behind work performances of employees. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal Performance Appraisal can be done with following objectives in mind: To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development. To provide a feedback to employees regarding their performance and related status.

To provide a feedback to employees regarding their performance and related status. It serves as a basis for influencing working habits of the employees. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal It is said that performance appraisal is an investment for the company which can be justified by following advantages: Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: Through performance appraisal, the employers can understand and accept skills of subordinates. The subordinates can also understand and create a trust and confidence in superiors. It also helps in maintaining cordial and congenial labour management relationship. It develops the spirit of work and boosts the morale of employees. All the above factors ensure effective communication.

Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved.

This very well motivates a person for better job and helps him to improve his performance in the future.

Performance appraisal methods Performance appraisal methods include 11 appraisal methods / types as follows: 1. Critical incident method This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period. 2. Weighted checklist method In this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs. 3. Paired comparison analysis This form of performance appraisal is a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen. 4. Graphic rating scales This format is considered the oldest and most popular method to assess the employees performance. In this style of performance appraisal, the management just simply does checks on the performance levels of their staff. 5. Essay Evaluation method In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staffs behaviors. Essay evaluation method is a non -quantitative technique. It is often mixed with the method the graphic rating scale. 6. Behaviorally anchored rating scales This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff. 7. Performance ranking method

The performance appraisal of ranking is used to assess the working performance of employees from the highest to lowest levels. Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards. 8. Management By Objectives (MBO) method MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them. 9. 360 degree performance appraisal The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post also information that can be used as references for such methods of performance assessments o f 720, 540, 180 10.Forced ranking (forced distribution) In this style of performance appraisal, employees are ranked in terms of forced allocations. For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one. 11. Behavioral Observation Scales The method based on the scales of observation on behaviors is the one in which important tasks that workers have performed during their working time will be assessed on a regular basis. Job evaluation and merit rating are the two most popular and widely used techniques of personnel management and help the management in the determination of wage rates to be paid to worker and selecting the efficient work force on the job.

Job evaluation and merit rating But the two should not be confused. Their is a clear-cut distinction between the two which may be explained hereunder:1. Scopt: Job evaluation evaluates the job and not the job-holder while merit rating appraise the person and not the job. 2.Time: Job evaluations is made before the selection procedure is started with a view to select the person matching with the requirements of the job. Merit rating is always made after the

employee has been placed on the job. His performance is appraised on the job and not off the job. His performance is appraised on the job and not off the job. 3. Relative Value: Job evaluation determines the relative worth of the job, that is, it tries to define the place of the job in t organisation or in the occupation level. Merit rating appraises the relative performance of the employees' qualities or traits so as to know the differences in personal abilities and capabilities. 4. Objective: The principal objective of job evaluation is to determine the basic wage rates for each job in the organisation while the main objective or merit-rating is to develop the man by evaluating their individual qualities or deficiencies. human relations A department in an organization responsible for the management of hiring qualified personnel for the purpose of filling vacant positions. Activities involved with the department include advertising and posting, recruiting, staffing, interviewing, hiring, terminations, layoffs, career training, and performance reviews of company employees. The Importance of Human Relations Human relations is the process of training employees, addressing their needs, fostering a workplace culture and resolving conflicts between different employees or between employees and management. Understanding some of the the ways that human relations can impact the costs, competitiveness and long-term economic sustainability of a business helps to underscore their importance. Basics Human relations in the workplace are a major part of what makes a business work. Employees must frequently work together on projects, communicate ideas and provide motivation to get things done. Without a stable and inviting workplace culture, difficult challenges can arise both in the logistics of managing employees and in the bottom line. Businesses with engaging workplaces and a well-trained workforce are more likely to retain and attract qualified employees, foster loyalty with customers and more quickly adapt to meet the needs of a changing marketplace. Improving Retention The quality of workplace relations is critical to employee retention. Employee retention may seem trivial -- especially in a workplace that is used to a high turnover -- but managers must remember that turnover is financially very costly. Every new employee requires a substantial investment of time and energy in their recruitment and training. In addition, severing ties with old employees can sometimes be challenging, especially if the circumstances are not particularly amicable. Making sure quality employees remain interested and engaged in the business requires patience, compassion and flexibility, but can actually make the business more financially sound.

Motivation and Productivity Workplace relationships provide a source of employee motivation, which is important to maintaining productivity. Employees who are interested in their work and in the well-being of other employees tend to be more productive than those who are not. This productivity pays obvious financial dividends to the company, as it can get more done in less time with fewer costs. Building relationships, by both recognizing an employee's value to the company and a concern for their needs, often goes a long way. Fostering Creativity The modern business environment often rewards businesses that are able to quickly develop products that meet changing consumer needs. In some industries -- such as technology, for example -- employees' ability to come up with effective new ideas is often the difference between the entire company's success and failure. According to Sallyport Magazine, research shows that creativity is based to large degree in social interaction. Employees' creativity is often dependent on their ability to communicate with other employees and share ideas. Without quality workplace relationships, employees are less likely to be able to develop and share the solutions that a business needs to survive. Wage and Salary Administration Wage and salary administration affect levels of employee commitment to the organisation. However, fascinating the individuals job assignment is, the employee must be paid. Pay affects the way people work-how much and how well. A large part of the compensation that people receive from work is monetary. Although managers are expected to conserve money and distribute it wisely, many employees feel that they should get more of it for what they do. Wages, salaries and many employee benefits and services are form of compensation. Administration of employee compensation is called wage and salary administration. According to D.S. Beach Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organizational problems, development and maintenance of wage structure, establishing rules for administrating wages, wage payment incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items. The wage and salary administration aims to establish and maintain an equitable wage and salary structure and an equitable labor cost structure. Objectives of Wage and Salary Administration : A sound plan of wage and salary administration seeks to achieve the following objectives : To establish a fair and equitable compensation offering similar pay for similar work.

To attract competent and qualified personnel. To retain the present employees by keeping wage levels in tune with competitive units. To keep labor and administrative costs in line with the ability of the organization to pay. To improve motivation and morale of employees and to improve union management relations. To project a good image of the company and to comply with legal needs relating to wages and salaries. To establish job sequences and lines of promotion wherever applicable. To minimize the chances of favoritism while assigning the wage rates.

Principles of Wage and Salary Administration : The following principles should be followed for an effective wage and salary administration ; Wage policy should be developed keeping in view the interests of all concerned parties viz., employer, employees, the consumers and the society. Wage and salary plans should be sufficiently flexible or responsive to changes in internal and external conditions of the organization. Efforts should be made to ensure that differences in pay for jobs are based on variations in job requirements such as skill, responsibility, efforts and mental and physical requirements. Wage and salary administration plans must always be consistent with overall organizational plans and programmes. Wage and Salary administration plans must always be in conformity with the social and economic objectives of the country like attainment of equality in income distribution and controlling inflation, etc. These plans and programmes should be responsive to the changing local and national conditions. Wage and salary plans should expedite and simplify administrative process. Workers should be associated, as far as possible, in formulation and implementation of wage policy. An adequate data base and a proper organizational set up should be developed for compensation determination and administration. The general level of wages and salaries should be reasonably in line with that prevailing in the labor market. There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists. The workers should receive a guaranteed minimum wage to protect them against conditions beyond their control. Prompt and correct payments to the employees should be ensured and arrears of payment should not accumulate. The wage and salary payments must fulfill a wide variety of human needs including the need for self actualization.

Wage policy and programme should be reviewed and revised periodically in conformity with changing needs. For revision of wages, a wage committee should also be preferred to the individual judgement however unbiased of a manager.

INCENTIVE SYSTEMS OF WAGE PAYMENT The wage plan should be highly incentive means it should encourage workers to take more initiative and interest in the work, produce more and also earn more. The wage plan which serves all these purposes is called incentive wage plan. Such an incentive plan is beneficial to both - employers and employees as well as it is useful for the rapid industrial growth. Incentives include monetary as weft as non-monetary benefits offered. There is motivation to work hard and to earn more. In every incentive plan, wages are linked with the given output. Incentives are not fixed like wages and salaries. They vary from individual to individual and from period to period. ILO defines incentives as "payment by results". Incentives can also be described as "incentive systems of payment". According to Dale Yoder, Incentive wages relate earnings to productivity and may use premiums, bonuses, or a variety of rates to compensate for superior performance Piece rate system is the oldest incentive wage plan which is also useful for attracting and retaining qualified personnel in the organisation and for motivating personnel to higher levels of performance. In many incentive plans, a combination of time rate and piece rate sysh3ms is used. Such combination creates an ideal incentive plan. TYPES OF INCENTIVE PLANS: There are two types of incentive plans: (a) Individual incentive plans, and (b) Group incentive plans. Individual incentive plan is meant for individual employees. He has to work hard i.e. efficiently, produce more and share the monetary benefits for himself. The benefit is directly linked with his ability, efficiency and capacity. In the group incentive plan, the incentive is not for individual employee but for the group of employees working in one department or section. Such group incentive plan may cover the entire labour force of a production unit. The group will work collectively, give more production and share the benefit. Initially the benefit will be given to the group and thereafter, it will be divided among the members of the group. Management is interested in group incentive plan while employees are interested in individual incentive plans. Production activities are now conducted in an integrated manner and naturally incentives should be offered to the employees. Group incentive

plans are better as they encourage team spirit and develop cooperation and understanding among the employees. This avoids wastages and promotes productivity.

FEATURES/REQUISITES OF A GOOD INCENTIVE PLAN: Simplicity: A good incentive plan is one which is easy to understand and simple to operate. An average worker must be able to know the incentive offered and what he is expected to do. The monetary as well as non-monetary benefits offered must be made clear to all workers. Encourage initiative: A good incentive plan should create initiative among workers to work more and to earn more. It must offer more income to workers and more profit/production to the firm or company. Definiteness and flexibility: A good incentive plan should be definite. This means frequent changes should not be made as regard rates, etc. as such changes create confusion and doubts in the minds of workers. Such plan must give clear benefits to workers In addition, an ideal incentive plan should be flexible. It should take care of technological and other changes taking place from time-to-time. There should be suitable provision for such adjustment. Flexibility makes incentive plan adaptable. Wide coverage and equitable: A good incentive plan should not be for employees in certain departments only. It should have a wide coverage and almost all employees should be covered in such plan. Such wide coverage makes the plan popular at all levels and among all categories of workers. An incentive plan should be equitable. This means it should provide equal opportunity to all employees to show efficiency and earn more. This avoids dissatisfaction among employees and makes the plan just and fair to all employees. Guarantee of minimum wage payment: An incentive wage plan should include certain minimum wage payment to every worker per month. This should be irrespective of the production he gives. Such provision of guarantee payments creates a sense of security and confidence among workers. Scientific fixation of standard workload: Under the incentive plan, extra payment is given for the extra work i.e. work which is over and above certain quality. Such standard work-load must be clear, specific and fixed with scientific time studies so that majority of employees will be able to give extra production for extra payment.

Justice to employer and employees: A good incentive plan should do justice to both parties. The employer must get additional production along with extra profit and the workers must get extra payment for extra production. Retirement Benefits Some of the retirement benefits are: Pension Pension is the income received by an employee after his retirement. It is a periodical allowance, on account of past service, given by a former employer after the retirement of an employee. Periodical pension is called un-commuted pension. When a lump-sum payment is made in lieu of a periodical pension, it is termed as commuted pension. Pension of an employee is taxable under the head salary. Taxability of pension depends on whether it is periodic or lump-sum. Periodic payment (un-commuted pension) is fully taxable in case of both government and non-government employees. Lump-sum Payment (commuted pension) is tax-free in case of government employees. In case of other employees, if that employee is also receiving gratuity, then 1/3rd of the commuted pension would be exempt from tax. If gratuity is not received by an employee, half of the commuted pension will be exempt from tax. Gratuity Gratuity is a lump-sum payment made by an employer as a mark of gratitude for the services rendered by his employee. It is an important form of social security benefit. Gratuity is payable at the end of the employment (by way of retirement, death, termination or resignation). Every employer who has more than 10 salaried workers is allowed to grant gratuity to workers. The law which governs gratuity in India is the Payment of Gratuity Act, 1972. To receive gratuity, the employee should at least have completed 5 years of service. The payment of gratuity is made to the employee based on the duration of his total service to that employer. The benefit is payable by taking the last drawn salary as the basis for calculation. For the purpose of Income Tax, gratuity received by an employee of the central government, state government or any local authority is completely exempt from tax. For other employees, the least of the following is exempt from tax Rs. 10,00,000 (as per amendment from march 2010) Gratuity actually received, or Half month's average salary (average of last 10 months salary) for each completed year of service.

Leave Encashment

Leave encashment is the encashment of unused leave of an employee. The employee surrenders the leave at the time of retirement and is paid for the same. Taxability of leave encashment received at the time of retirement is as follows In case of government employees, it is fully exempt from tax. In case of non-government employees, the least of the following is exempt Rs. 3,00,000/10 months average salary Leave encashment actually received Cash equivalent to the leaves surrendered

Voluntary Retirement Compensation Many companies today provide its employee with the option of taking voluntary retirement under the Voluntary Retirement Scheme (VRS). This scheme is drawn to right-size the existing strength of employees within a company. The benefits derived by an employee by opting VRS can also be considered as retirement benefit. VRS is applicable to only those employees who have completed 10 years of service or are of the age of 40 years. Under VRS, the employees are offered a onetime lump-sum amount. For income tax purposes, this compensation amount received is exempt up to Rs. 5,00,000/- if all the conditions under the scheme are fulfilled. Industrial Relations Industrial relations is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community. The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participantslabor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below:

Characters: It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc. Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Methods: Methods focus on collective bargaining, workers participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc. trade union An organization whose membership consists of workers and union leaders, united to protect and promote their common interests. The principal purposes of a labor union are to (1) negotiate wages and working condition terms, (2) regulate relations between workers (its members) and the employer, (3) take collective action to enforce the terms of collective bargaining, (4) raise new demands on behalf of its members, and (5) help settle their grievances. A trade union may be: (a) A company union that represents interests of only one company and may not have any connection with other unions. Also called house union, a company union is often a bogus one and generally illegal. (b) A general union that represents workers from several companies in the same industry. Also called industrial union. (c) A craft union that represents skilled workers in a particular field such as carpentry or welding. Trade Unionism In India The trade unionism in India developed quite slowly as compared to the western nations. Indian trade union movement can be divided into three phases. The first phase (1850 to1900) During this phase the inception of trade unions took place. During this period, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition, the wages were also low and general economic conditions were poor in industries. In order to regulate the working hours

and other service conditions of the Indian textile laborers, the Indian Factories Act was enacted in 1881. As a result, employment of child labor was prohibited. The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all industrial cities. These strikes taught workers to understand the power of united action even though there was no union in real terms. Small associations like Bombay Mill-Hands Association came up by this time.

The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. Between 1918 and 1923, many unions came into existence in the country. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like spinners unions and weavers unions were formed. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions federated into industrial union known as Textile Labor Association in 1920.In 1920, the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927. During 1928, All India Trade Union Federation (AITUF) was formed. The third phase began with the emergence of independent India (in 1947). The partition of country affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union organizations were functioning in the country: The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu Mazdoor Sangh, and The United Trade Union Congress

The working class movement was also politicized along the lines of political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries. Trade unions in India The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors: The rural workers, who constitute about 60 per cent of the workforce. Organized sector, which employs 8 per cent of workforce, and

The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce. At present there are twelve Central Trade Union Organizations in India: 1. All India Trade Union Congress (AITUC) 2. Bharatiya Mazdoor Sangh (BMS) 3. Centre of Indian Trade Unions (CITU) 4. Hind Mazdoor Kisan Panchayat (HMKP) 5. Hind Mazdoor Sabha (HMS) 6. Indian Federation of Free Trade Unions (IFFTU) 7. Indian National Trade Union Congress (INTUC) 8. National Front of Indian Trade Unions (NFITU) 9. National Labor Organization (NLO) 10. Trade Unions Co-ordination Centre (TUCC) 11. United Trade Union Congress (UTUC) and 12. United Trade Union Congress - Lenin Sarani (UTUC - LS) Grievance handling Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an employee experiences about his job and its nature, about the management policies and procedures. It must be expressed by the employee and brought to the notice of the management and the organization. Grievances take the form of collective disputes when they are not resolved. Also they will then lower the morale and efficiency of the employees. Unattended grievances result in frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc. In short, grievance arises when employees expectations are not fulfilled from the organization as a result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must crop up from employment issues and not from personal issues. Grievance may result from the following factors Improper working conditions such as strict production standards, unsafe workplace, bad relation with managers, etc. Irrational management policies such as overtime, transfers, demotions, inappropriate salary structure, etc. Violation of organizational rules and practices

The manager should immediately identify all grievances and must take appropriate steps to eliminate the causes of such grievances so that the employees remain loyal and committed to their work. Effective grievance management is an essential part of personnel management. The managers should adopt the following approach to manage grievance effectively-

Quick action- As soon as the grievance arises, it should be identified and resolved. Training must be given to the managers to effectively and timely manage a grievance. This will lower the detrimental effects of grievance on the employees and their performance. Acknowledging grievance- The manager must acknowledge the grievance put forward by the employee as manifestation of true and real feelings of the employees. Acknowledgement by the manager implies that the manager is eager to look into the complaint impartially and without any bias. This will create a conducive work environment with instances of grievance reduced. Gathering facts- The managers should gather appropriate and sufficient facts explaining the grievances nature. A record of such facts must be maintained so that these can be used in later stage of grievance redressal.
Examining the causes of grievance- The actual cause of grievance should be identified.

Accordingly remedial actions should be taken to prevent repetition of the grievance. Decisioning- After identifying the causes of grievance, alternative course of actions should be thought of to manage the grievance. The effect of each course of action on the existing and future management policies and procedure should be analyzed and accordingly decision should be taken by the manager.
Execution and review- The manager should execute the decision quickly, ignoring the fact, that it

may or may not hurt the employees concerned. After implementing the decision, a follow-up must be there to ensure that the grievance has been resolved completely and adequately. An effective grievance procedure ensures an amiable work environment because it redresses the grievance to mutual satisfaction of both the employees and the managers. It also helps the management to frame policies and procedures acceptable to the employees. It becomes an effective medium for the employees to express t feelings, discontent and dissatisfaction openly and formally. Collective Bargaining Collective bargaining is the process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, ways to balance work and family and more. Collective bargaining is a way to solve workplace problems. Definition The term collective bargaining refers to a good-faith business mechanism people use to reach an agreement. Through basic negotiation and other techniques, the people involved find solutions to work-related issues such as vacation time, pay, work hazards, training and work hours that ultimately benefit everyone. People call these processes collective bec ause the opinion and well-being of the whole group, or collective, is involved. The Universal Declaration of Human Rights formally recognizes the ability of people to use this strategy.

Purpose The primary objective of this bargaining system is to improve conditions in some way to make things more efficient, economical, safe or enjoyable. Going through these processes therefore keeps employers or employees from being taken advantage of or hurt. In some cases, people use this strategy specifically to set a precedent and send a message about an overall social change they want to happen. In these cases, more than one company or group of workers might be involved. Types Two types of collective bargaining are available: periodic and continuous. The first kind happens at irregular intervals as problems or needs come up. It doesnt have a predefined schedule, and the business leaders and general workers pick representatives that best fit the immediate need. With the continuous or rolling style, both sides are always working to fix or head off issues, and there usually are permanent committees that represent both sides over many different areas. Connection to Unions Unions typically represent employees when there is a need for this mechanism. Leaders bring needs or wants to the attention of the employer. They carry responses from the employer back to the workforce and assist with putting together a draft of a formal contract called a collective bargaining agreement. Disadvantages A major drawback to using this type of negotiation system is that, even though everyone gets a say in what happens, ultimately, the majority rules, with only a few people determining what happens to many. This means that a large number of people, particularly in the general workforce, can be overshadowed and feel like their opinion doesnt really matter. In the worst case scenario, this can cause severe division and hostility in the group. Secondly, it always requires at least two parties. Even though the system is supposed to pull both parties together, during the process of trying to reach an agreement, people can adopt an us-versus-them mentality. When the negotiations are over, this way of looking at each other can be hard to set aside, and unity in the company can suffer. Collective bargaining can also be costly, both in terms of time and money. Representatives have to discuss everything twiceonce at the small representative meetings, and again when they relay information to the larger group. Paying outside arbitrators or other professionals quickly can run up a fairly big bill, and when someone else is brought in, things often get slower and more complex because even more people are involved. Some people point out that these techniques have a tendency to restrict the power of employers. Employees often see this as a good thing, but from the companys perspective, it can make even basic processes difficult. It can make it a challenge to deal with individual workers, for example.

The goal of the system is always to reach a collaborative agreement, but sometimes tensions boil over. As a result, one or both parties might feel they have no choice but to muscle the other side into giving up. Workers might do this by going on strike, which hurts operations and cuts into profits. Businesses might do this by staging lockouts, which prevents members of the workforce from doing their jobs and getting paid, negatively effecting income and overall quality of living. Lastly, union dues are sometimes an issue. They reduce the amount of take-home pay a person has, because they usually are deducted right from his paycheck. When things are good in a company and people dont feel like theyre getting anything from paying the dues, they usually become unhappier about the rates. Advantages Perhaps the biggest advantage of this system is that, by reaching a formal agreement, both sides come to know exactly what to expect from each other and are aware of the rights they have. This can decrease the number of conflicts that happen later on. It also can make operations more efficient. Employees who enter collective bargaining know they have some degree of protection from employer retaliation or being let go from the job. If the employer were dealing with just a handful of individuals, he might be able to afford to lose them. When he is dealing with the entire workforce, however, operations are at risk and he no longer can easily turn a deaf ear to what his employees are saying. Even though employers might need to back down a little, this strategy gives them the benefit of being able to deal with just a small number of people at a time. This is very practical in larger companies where the employer might have dozens, hundreds or even thousands of workers on his payroll. Working with just a few representatives also can make the issues at hand seem more personal. Agreements reached through these negotiations usually cover a period of at least a few years. People therefore have some consistency in their work environment and policies. This typically benefits the companys finance department because it knows that fewer items related to the budget might change. On a broad scale, using this method well can result in more ethical way of doing business. It promotes ideas such as fairness and equality, for example. These concepts can spill over into other areas of a persons life, inspiring better general behavior towards others. Workers Participation in Management Workers participation in management is an essential ingredient of Industrial democracy. The concept of workers participation in management is based on Human Relations approach to Management which brought about a new set of values to labour and management.

Traditionally the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers participation is also known as labour participation or employee participation in management. In Germany it is known as co-determination while in Yugoslavia it is known as self-management. The International Labour Organization has been encouraging member nations to promote the scheme of Workers Participation in Management. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. Definition: According to Keith Davis, Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement. According to Walpole, Participation in Management gives the worker a sense of importance, pride and accomplishment; it gives him the freedom of opportunity for selfexpression; a feeling of belongingness with the place of work and a sense of workmanship and creativity. The concept of workers participation in management encompasses the following: It provides scope for employees in decision-making of the organization. The participation may be at the shop level, departmental level or at the top level. The participation includes the willingness to share the responsibility of the organization by the workers.

Features of WPM: Participation means mental and emotional involvement rather than mere physical presence. Workers participate in management not as individuals but collectively as a group through their representatives. Workers participation in management may be formal or informal. In both the cases it is a system of communication and consultation whereby employees express their opinions and contribute to managerial decisions.

There can be 5 levels of Management Participation or WPM: Information participation: It ensures that employees are able to receive information and express their views pertaining to the matter of general economic importance. Consultative importance: Here workers are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests with the top-level management, as employees views are only advisory in nature.

Associative participation: It is an extension of consultative participation as management here is under the moral obligation to accept and implement the unanimous decisions of the employees. Under this method the managers and workers jointly take decisions. Administrative participation: It ensures greater share of workers participation in discharge of managerial functions. Here, decisions already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relating to production, welfare etc.

Objectives of WPM: To establish Industrial Democracy. To build the most dynamic Human Resources. To satisfy the workers social and esteem needs. To strengthen labour-management co-operation and thus maintain Industrial peace and harmony. To promote increased productivity for the advantage of the organization, workers and the society at large. Its psychological objective is to secure full recognition of the workers.