HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

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INDEX
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATIONS
JOB EVALUATION
JOB DESIGN
DESIGNING JOBS MOTIVATING JOBS
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT & SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
INCENTIVES BASED COMPENSATION
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
WORKERS PARTICIPATION IN MANAGEMENT
UNIONS
ORGANIATIONAL DOWNSIING
MEANING OF ORGANIATION STRUCTURE
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 Integrati on
HRM is a series of integrated decisions that form the employment relationships; their
quality contributes to the ability of the organizations and the employees to achieve their
objectives.
Definition 2 Infl uenci ng
HRM is concerned ith the people dimensions in management. !ince every organization is
made up of people" acquiring their services" developing their s#ills" motivating them to
higher levels of performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives. $his is true"
regardless of the type of the organization % government" business" education" health"
recreational" or social action.
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Definition 3 Appl i cabi l i ty
HRM planning" organizing" directing and controlling of the procurement" development"
compensation" integration" maintenance and separation of human resources to the end that
individual" organizational and social objectives are accomplished.
MEANING OF HRM: -
HRM is management function that helps managers to recruit" select" train and develop
members for an organization. &bviously HRM is concerned ith the people's dimensions in
organizations. HRM refers to set of programs" functions" and activities designed and carried
out
Coe e!e"ent# of HRM
$eo%!e: &rganizations mean people. (t is the people ho staff and manage
organizations.
M&n&'e"ent: HRM involves application of management functions and principles for
acquisitioning" developing" maintaining and remunerating employees in organizations.
Inte'&tion ( Con#i#ten)*: )ecisions regarding people must be integrated and
consistent.
Inf!+en)e: )ecisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
A%%!i)&,i!it*: HRM principles are applicable to business as ell as non*business
organizations too" such as education" health" recreation and the li#e.
O-.ECTI/ES OF HRM: -
+. So)iet&! O,0e)ti1e#: $o be ethically and socially responsible to the needs and
challenges of the society hile minimizing the negative impact of such demands upon the
organization.
,. O'&ni2&tion&! O,0e)ti1e#: $o recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization ith
its primary objectives.
-. F+n)tion&! O,0e)ti1e#: $o maintain department's contribution and level of
services at a level appropriate to the organization's needs.
.. $e#on&! O,0e)ti1e#: $o assist employees in achieving their personal goals" at
least in so far as these goals enhance the individual's contribution to the organization. $his
is necessary to maintain employee performance and satisfaction for the purpose of
maintaining" retaining and motivating the employees in the organization.
SCO$E OF HRM: -
/rom Ent* to the E3it of an employee in the organization
!cope of HRM can be described based on the folloing activities of HRM. 0ased on these
activities e can summarize the scope of HRM into 1 different categories as mentioned
belo after the activities. 2ets chec# out both of them.
HRM A)ti1itie#
+. HR 3lanning
,. 4ob 5nalysis
-. 4ob )esign
.. Recruitment 6 !election
7. &rientation 6 3lacement
8. $raining 6 )evelopment
1. 3erformance 5ppraisals
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9. 4ob :valuation
;. :mployee and :<ecutive Remuneration
+=. Motivation
++. >ommunication
+,. ?elfare
+-. !afety 6 Health
+.. (ndustrial Relations
4 C&te'oie# of S)o%e of HRM
+. (ntroduction to HRM
,. :mployee Hiring
-. :mployee and :<ecutive Remuneration
.. :mployee Motivation
7. :mployee Maintenance
8. (ndustrial Relations
1. 3rospects of HRM
RO5E OF HRM
+. A61i#o* Ro!e: HRM advises management on the solutions to any problems affecting
people" personnel policies and procedures.
a. $e#onne! $o!i)ie#: &rganization !tructure" !ocial Responsibility" :mployment
$erms 6 >onditions" >ompensation" >areer 6 3romotion" $raining 6 )evelopment and
(ndustrial Relations.
b. $e#onne! $o)e6+e#: Relating to manpoer planning procedures" recruitment
and selection procedures" and employment procedures" training procedures" management
development procedures" performance appraisal procedures" compensation procedures"
industrial relations procedures and health and safety procedures.
,. F+n)tion&! Ro!e: $he personnel function interprets and helps to communicate
personnel policies. (t provides guidance to managers" hich ill ensure that agreed policies
are implemented.
-. Se1i)e Ro!e: 3ersonnel function provides services that need to be carried out by full
time specialists. $hese services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described
above.
Ro!e of HR M&n&'e# (To6&*)
+. H+"&nit&i&n Ro!e: Reminding moral and ethical obligations to employees
,. Co+n#e!o: >onsultations to employees about marital" health" mental" physical and
career problems.
-. Me6i&to: 3laying the role of a peacema#er during disputes" conflicts beteen
individuals and groups and management.
.. S%o7e#"&n: $o represent of the company because he has better overall picture of his
company's operations.
7. $o,!e" So!1e: !olving problems of overall human resource management and long*
term organizational planning.
8. C8&n'e A'ent: (ntroducing and implementing institutional changes and installing
organizational development programs
1. M&n&'e"ent of M&n%o9e Re#o+)e#: 0roadly concerned ith leadership both in
the group and individual relationships and labor*management relations.
Ro!e of HR M&n&'e# (F+t+e)
+. 3rotection and enhancement of human and non*human resources
,. /inding the best ay of using people to accomplish organizational goals
:
-. (mprove organizational performance
.. (ntegration of techniques of information technology ith the human resources
7. @tilizing behavioral scientists in the best ay for his people
8. Meeting challenges of increasing organizational effectiveness
1. Managing diverse or#force
FUNCTIONS OF HRM A5ONG ;ITH O-.ECTI/ES
HRM O,0e)ti1e# S+%%otin' HRM F+n)tion#
!ocial &bjectives A-B 2egal >ompliance
0enefits
@nion Management Relations
&rganizational &bjectives A1B Human Resource 3lanning
:mployee Relations
Recruitment 6 !election
$raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
/unctional &bjectives A-B 3erformance 5ppraisals
3lacement 6 &rientation
:mployee 5ssessment
3ersonal &bjectives A7B $raining 6 )evelopment
3erformance 5ppraisals
3lacement 6 &rientation
>ompensation
:mployee 5ssessment
M&n&'ei&! F+n)tion# of HRM
+. $!&nnin': 3lan and research about age trends" labor mar#et conditions" union
demands and other personnel benefits. /orecasting manpoer needs etc.
,. O'&ni2in': &rganizing manpoer and material resources by creating authorities and
responsibilities for the achievement of organizational goals and objectives.
-. St&ffin': Recruitment 6 !election
.. Die)tin': (ssuance of orders and instructions" providing guidance and motivation of
employees to follo the path laid*don.
7. Conto!!in': Regulating personnel activities and policies according to plans.
&bservations and comparisons of deviations
O%e&tion&! F+n)tion# of HRM
+. $o)+e"ent: 3lanning" Recruitment and !election" (nduction and 3lacement
,. De1e!o%"ent: $raining" )evelopment" >areer planning and counseling.
-. Co"%en#&tion: ?age and !alary determination and administration
.. Inte'&tion: (ntegration of human resources ith organization.
7. M&inten&n)e: !ustaining and improving or#ing conditions" retentions" employee
communication
8. Se%&&tion#: Managing separations caused by resignations" terminations" lay offs"
death" medical sic#ness etc.
CHA55ENGES OF HRM IN INDIAN ECONOM< o CHA55ENGES OF
MODERN MANAGEMENT
+. G!o,&!i2&tion: - Croing internationalization of business has its impact on HRM in
terms of problems of unfamiliar las" languages" practices" competitions" attitudes"
management styles" or# ethics and more. HR managers have a challenge to deal ith
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more functions" more heterogeneous functions and more involvement in employee's
personal life.
2> Co%o&te Re-o'&ni2&tion#: - Reorganization relates to mergers and
acquisitions" joint ventures" ta#e over" internal restructuring of organizations. (n these
situations" it is difficult to imagine circumstances that pose a greater challenge for HRM
than reorganizations itself. (t is a challenge to manage employees' an<iety" uncertainties"
insecurities and fears during these dynamic trends.
3> Ne9 O'&ni2&tion&! fo"#: - $he basic challenge to HRM comes from the
changing character of competitions. $he competition is not beteen individual firms but
beteen constellations of firm. Major companies are operating through a comple< eb of
strategic alliances" forgings ith local suppliers" etc. $hese relationships give birth to
completely ne forms of organizational structure" hich highly depend upon a regular
e<change of people and information. $he challenge for HRM is to cope ith the implications
of these nely netor#ed relations more and more" in place of more comfortable
hierarchical relationships that e<isted ithin the organizations for ages in the past.
.. C8&n'in' De"o'&%8i)# of ;o7fo)e: - >hanges in or#force are largely
reflected by dual career couples" large chun# of young blood beteen age old
superannuating employees" or#ing mothers" more educated and aare or#ers etc. $hese
dynamic or#forces have their on implications for HR managers and from HRM point of
vie is a true challenge to handle.
7. C8&n'e6 e"%!o*ee e3%e)t&tion#: - ?ith the changes in or#force
demographics" employee e<pectations and attitudes have also transformed. $raditional
allurements li#e job security" house" and remunerations are not much attractive today"
rather employees are demanding empoerment and equality ith management. Hence it is
a challenge for HRM to redesign the profile of or#ers" and discover ne methods of hiring"
training" remunerating and motivating employees.
?> Ne9 In6+#ti&! Re!&tion# A%%o&)8: - (n today's dynamic orld" even unions
have understood that stri#es and militancy have lost their relevance and unions are greatly
affected by it. $he trade union membership has fallen drastically orldide and the future
of labor movement is in danger. $he challenge before HRM is to adopt a proactive industrial
relations approach hich should enable HR specialist to loo# into challenges unfolding in the
future and to be prepared to convert them into opportunities.
4> Rene9e6 $eo%!e Fo)+#: - $he need of today's orld and business is the people's
approach. $he structure" strategy" systems approach hich or#ed in post ar era is no
more relevant in today's economic environment hich is characterized by over capacities
and intense competition. $he challenge of HR manager is to focus on people and ma#e
them justifiable and sustainable.
9. M&n&'in' t8e M&n&'e#: - Managers are unique tribe in any society" they
believe they are class apart. $hey demand decision*ma#ing" bossism" and operational
freedom. Hoever in the post liberalization era" freedom given to managers is grossly
misused to get rid of talented and hard or#ing juniors. $he challenge of HRM is ho to
manage this tribeD Ho to ma#e them realize that the freedom given to them is to enable
them ma#e quic# decisions in the interest of the organization and not to resort to itch*
hunting.
;. ;e&7e So)iet* intee#t#: - 5nother challenge for HRM is to protect the interest
of ea#er sections of society. $he dramatic increase of omen or#ers" minorities and
other bac#ard communities in the or#force has resulted in the need for organizations to
ree<amine their policies" practices and values. (n the name of global competition"
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productivity and quality the interests of the society around should not be sacrificed. (t is a
challenge of today's HR managers to see that these ea#er sections are neither denied
their rightful jobs nor are discriminated against hile in service.
+=. Conti,+tion to t8e #+))e## of o'&ni2&tion#: - $he biggest challenge to
an HR manager is to ma#e all employees contribute to the success of the organization in an
ethical and socially responsible ay. 0ecause society's ell being to a large e<tent depends
on its organizations.
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
St&te'*:
!trategy is a ay of doing something. (t includes the formulation of goals and set of action
plans for accomplishment of that goal.
St&te'i) M&n&'e"ent:
5 3rocess of formulating" implementing and evaluating business strategies to achieve
organizational objectives is called !trategic Management
Definition of St&te'i) M&n&'e"ent: -
!trategic Management is that set of managerial decisions and actions that determine the
long*term performance of a corporation. (t includes environmental scanning" strategy
formulation" strategy implementation and evaluation and control.
$he study of strategic management therefore emphasizes monitoring and evaluating
environmental opportunities and threats in the light of a corporation's strengths and
ea#nesses.
Ste%# in St&te'i) M&n&'e"ent:
+. En1ion"ent&! S)&nnin': 5nalyze the &pportunities and $hreats in :<ternal
:nvironment
,. St&te'* Fo"+!&tion: /ormulate !trategies to match !trengths and ?ea#nesses.
(t can be done at >orporate level" 0usiness @nit 2evel and /unctional 2evel.
-. St&te'* I"%!e"ent&tion: (mplement the !trategies
.. E1&!+&tion ( Conto!: :nsure the organizational objectives are met.
IM$ORTANCE ( -ENEFITS OF STRATEGIC MANAGEMENT
5llos identification" prioritization and e<ploration of opportunities.
3rovides an objective vie of management problems.
Represents frameor# for improved co*ordination and control
Minimizes the effects of adverse conditions and changes
5llos major decisions to better support established objectives
5llos more effective allocation of time and resources
5llos feer resources and lesser time devoted to correcting ad hoc decisions
>reates frameor# for internal communication
Helps to integrate the individual behaviors
3rovides basis for the clarification of responsibilities
:ncourages forard thin#ing
:ncourages favorable attitude toards change.
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RO5E OF HRM IN STRATEGIC MANAGEMENT
Ro!e in St&te'* Fo"+!&tion: HRM is in a unique position to supply competitive
intelligence that may be useful in strategy formulation. )etails regarding advanced
incentive plans used by competitors" opinion survey data from employees" elicit information
about customer complaints" information about pending legislation etc. can be provided by
HRM. @nique HR capabilities serve as a driving force in strategy formulation.
Ro!e in St&te'* I"%!e"ent&tion: HRM supplies the company ith a competent and
illing or#force for e<ecuting strategies. (t is important to remember that lin#ing strategy
and HRM effectively requires more than selection from a series of practice choices. $he
challenge is to develop a configuration of HR practice choices that help implement the
organization's strategy and enhance its competitiveness.
HUMAN RESOURCE DE/E5O$MENT
Definition 1: Organizing and enhancing capacities to produce.
HR) is a process of organizing and enhancing the physical" mental and emotional capacities
of individuals for productive or#.
Definition 2: Bring possibility of performance and growth
HR) means to bring about the possibility of performance improvement and individual
groth.
Human resource development is a process to help people to acquire competencies and to
increase their #noledge" s#ills and capabilities for better performance and higher
productivity.
$o&)ti1e HRD St&te'ie# fo !on' te" %!&nnin' &n6 'o9t8
(n today's fast changing" challenging and competitive environment HR) has to ta#e a
proactive approach that is to see# preventive care in human relations. @sing HR) strategies
ma<imizations of efficiency and productivity could be achieved through qualitative groth of
people ith capabilities and potentialities to gro and develop. HR) is alays a function of
proper utilization of creative opportunities and available environment through acquisition of
#noledge" s#ills and attitudes necessary for productive efforts.
2ong*term groth can also be planned by creating highly inspired groups of employees ith
high aspirations to diversify around core competencies and to build ne organizational
responses for coping ith change.
5 proactive HR) strategy can implement activities that are geared up and directed at
improving personal competence and productive potentialities of human resources.
/olloing strategic choices can be considered hich ould help today's organizations to
survive and gro.
C8&n'e M&n&'e"ent: Manage change properly and become an effective change agent
rather than being a victim of change itself.
/&!+e#: 5dopt proactive HR) measures" hich encourage values of openness" trust"
autonomy" proactivity and e<perimentation.
M&3i"i2e %o6+)ti1it* &n6 effi)ien)*: $hrough qualitative groth of people ith
capabilities and potentialities to gro and develop thrive to ma<imize productivity and
efficiency of the organization.
A)ti1itie# 6ie)te6 to )o"%eten)e ,+i!6in': HR) activities need to be geared up and
directed at improving personal competence and productive potentialities of manpoer
resources.
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TEAM EFFECTI/ENESS
;8&t i# t8e 6efinition of & te&"A 5 team is defined as a reasonably small group of
people" ho bring to the table a set of complementary and appropriate s#ills" and ho hold
themselves mutually accountable for achieving a clear and identifiable set of goals.
Te&"# )&n ,e 1e* effe)ti1e> (n many situations teams can achieve more than
individuals or#ing on their on. $eams can bring to bear a ider range of s#ills and
e<perience to solve a problem. $eams also produce better quality decisions. ?hen a team
has been or#ing on a problem" and they have a sense of commitment to the common
solution
;8&t 6o 9e "e&n ,* te&" effe)ti1ene##A
5 team can be considered to be effective if their output is judged to meet or e<ceed the
e<pectations of the people ho receive the output. 3roducing a quality output is not enough
to judge the effectiveness of the team.
$he second criteria" is that the team should still be able function effectively after they
have completed their tas#. (t should not be torn apart by dissension.
/inally" effectiveness is judged by hether the team feels satisfied ith its efforts. (f
the team members are pleased ith their efforts" if the e<perience has been a good one" if
time spent aay from their normal or# has been orth the effort" the team has li#ely
been effective.
;8&t t8en &e t8e f&)to# t8&t )onti,+te to9&6# &n effe)ti1e te&"A
$here are three areas of group behavior that must be addressed for teams to be effective.
$he team must or# hard. $he effort that the team puts in to get the job done is
dependent on hether the nature of the tas# motivates the members of the team and
hether the goals are challenging.$he team must have the right mi< of s#ills to bring to the
table. $hese s#ills include technical" problem solving and interpersonal s#ills. $he team
must be able to develop appropriate approaches to problem solving. $his depends on
developing a plan of attac# and using appropriate techniques for analysis.
$he folloing factors contribute to hard or#" s#ill development and effective problem
solving strategiesE
T8e t&#7 it#e!f #8o+!6 ,e "oti1&tin'>
$he tas# itself should be seen as being orthhile. (t needs to be a hole piece of
or# ith a clear and visible outcome so that people can feel a sense of onership.
$he outcome of the tas# should be perceived as being important to other peopleFs lives.
(t should affect others in the organization or impact on the e<ternal customer.
$he job should provide the team ith an opportunity for self*regulation. $hey should
decide ho the or# is to be done. Meaningful feedbac# should be provided on the ho ell
the team is performing.
T8e te&" nee6# )8&!!en'in' 'o&!#B 98i)8 &e )!e&!* 6efine6>
?hen challenging goals are set the team ill mobilize its efforts to find innovative ays
to achieve feats that may have been considered impossible. 3roviding a challenging job is
the most important motivator to sustain group effort.
Coals provide a sense of direction to the team so that hen conflict occurs it is possible
to channel the conflict more constructively by returning to the goals for direction.
$he team needs to buy in to the goals. $hey must have the opportunity to buy in and
commit to achieving the goals. Coals need to be challenging" but not impossible to achieve.
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$hey also need to be measurable so that progress toards achieving them can be
monitored and results confirmed.
Re9&6# &e i"%ot&nt>
$he reards need to suit the personal characteristics of the people on the team.
?hatever form the reard ta#es" it is important that group effort be recognized. &ne
should avoid the destructive effect of trying to single out individuals from the group"
hen there has been a group effort.
Reards merely reinforce these conditions for fostering group effort.
T8e te&" #8o+!6 8&1e t8e i'8t "i3 of #7i!!#.
$he right mi< of s#ills should be brought to the tas# at hand. (t is also a question of
carefully revieing the job to determine hat relevant s#ills is required and selecting staff
so that the team has the right balance. 3roviding relevant training then ma#es up any
shortfall in s#ills.
$echnical s#ills are required. /or teams ho are trying to improve a process that cuts
across department boundaries" each function should be represented. &ne should achieve a
balance of s#ills. $his means avoiding having a preponderance of s#ills and e<perience in
one specialized area. !heer numbers may eigh the solution toards the dominant group.
(n the case of permanent or# teams it is li#ely that team members ill not have all
the tas# relevant s#ills at the onset. ?hen the group is ne" it is li#ely that members ill
bring narro s#ills learned in their old roles. $hey ill need to develop broader s#ills for the
ne job. $o ensure that this is done" training and coaching should be provided.
$he members of the team need to have problem solving and decision*ma#ing s#ills as
ell as technical s#ills. ?hen a business is ma#ing its first venture into team based or#" it
is li#ely that people ill not have a good grasp of the techniques related to problem analysis
and solution.
$hese relevant s#ills must be acquired" so it ill be necessary to provide training. &ver
a period of time staff ill become e<perienced in problem solving techniques and the
organization ill develop a repertoire of s#ills among the staff so this training ill not
alays be necessary.
(nterpersonal s#ills are also important. $his is not as obvious as it may sound. Most
people do not listen ell. 2istening is much more than being quiet hen some else is
tal#ing. 5ctive listening is required. Many people do not spea# to the point but ramble on or
go off at a tangent. Most people do not ta#e criticism ell and tend to be defensive about
their on opinions.
A'ee on & )o6e of )on6+)t.
5t the beginning of the team project it is important to develop a code of conduct for
meetings. $he team needs to agree on a set of rules to ensure that their efforts are
purposeful and that all members contribute to the or#.
$he most critical rules pertain to attendance" open discussion" using an analytical
approach" not pulling ran# over other members" planning the or# and sharing or#
assignments. $his ill ensure that the or# is done ell and done on time.
T8e te&" "+#t 6e1e!o% effe)ti1e %o,!e" #o!1in' #t&te'ie#>
/or the team to be able to develop an appropriate strategy" it must have a clear
definition of the problem" #no hat resources it has available and the limits" and
understand the e<pectations. (t must then develop a problem*solving plan" based on the
approach suggested in the section on continuous improvement.
?hen this does not happen" people are passive. $heir s#ills and #noledge are not
utilized and they aste their time.
1D
S%e)i&! te&"# 8&1e #%e)i&! i##+e#>
/rom the perspective of organisational improvement e are interested in three types of
teams. &ne is the problem solving team" another is the or# team and then there is the
senior management team.
3roblem solving teams are set up ith a clearly defined tas# to investigate a problem
and recommend a solution. !ometimes the same team ill go on to implement the solution.
?hen their tas# is completed the team is disbanded and members go bac# to their normal
organisational duties.
$here are to important issues facing these teams. &ne is getting started and the
other is handing over the recommendations for implementation. $he #ey to getting started
is to ensure that the team is committed to achieving an agreed set of goals. Coals serve to
focus the teamFs effort.
(mplementation is important. (t ill not just happen; it must be planned. $he
implementers must be brought into the solution stage so that they develop a sense of
onership toards the solution and buy into it. $he best ay to do this is to have the
problem solving team do the implementation.
5nother approach is to phase the implementers into the team so that the membership
changes prior to the implementation. ?hatever approach is used one should remember that
the idea is to implement a solution and not to produce a report.
?or# teams are different in that they are a fi<ed part of the organization. $hey have an
ongoing function" hich is to control a set of activities that ma#e up a discrete operation in
the overall business process. $hey need to focus on the critical factors in their process and
to control these factors to ensure a quality product.
HUMAN RESOURCE $5ANNING ( H R $ )
Definition 1: - Need, Availability, Supply!emand
HR3 includes estimation of ho many qualified people are necessary to carry out the
assigned activities" ho many people ill be available" and hat" if anything" must be done
to ensure personnel supply equals personnel demand at the appropriate point in the
future.
Definition 2: - "ight numbers, #apability, Organization Ob$ectives
HR3 is a 3rocess" by hich an organization ensures that it has the right number and #ind
of people at the right place" at the right time" capable of effectively and efficiently
completing those tas#s that ill help the organization achieve its overall objectives.
Definition 3: - %ranslation of ob$ectives into &" numbers
HR3 is a process of translating organizational objectives and plans into the number of
or#ers needed to meet those objectives.
MEANING E $UR$OSE OF HR$
(n simple ords HR3 is understood as the process of forecasting an organization's future
demand for and supply of the right type of people in the right numbers.
(t is only after HR3 is done" that the company can initiate and plan the recruitment and
selection process.
HR3 is a sub*system in the total organizational planning.
HR3 facilitates the realization of the company's objectives by providing right type and
right number of personnel.
HR3 is important because ithout a clear*cut manpoer planning" estimation of a
organization's human resource need is reduced to mere guessor#.
NEED ( IM$ORTANCE OF HR$
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Foe)&#t f+t+e %e#onne! nee6#: $o avoid the situations of surplus or deficiency
of manpoer in future" it is important to plan your manpoer in advance. /or this purpose
a proper forecasting of futures business needs helps you to ascertain our future manpoer
needs. /rom this angle" HR3 plays an important role to predict the right size of manpoer
in the organization.
Co%e 9it8 )8&n'e: HR3 enables an enterprise to cope ith changes in competitive
forces" mar#ets" technology" products and government regulations. !uch changes generate
changes in job content" s#ills demands and number of human resources required.
Ce&tin' 8i'8!* t&!ente6 %e#onne!: !ince jobs are becoming highly intellectual
and incumbents getting vastly professionalized" HR3 helps prevent shortages of
labor caused by attritions. /urther technology changes ould further upgrade or
degrade jobs and create manpoer shortages. (n these situations only accurate
human resource planning can help to meet the resource requirements. /urther HR3
is also an anser to the problems of succession planning.
$ote)tion of 9e&7e #e)tion# : 5 ell*conceived personnel planning ould also
help to protect the interests of the !>G!$" physically handicapped" children of socially
oppressed and bac#ard classes ho enjoy a certain percentage of employments
notithstanding the constitutional provisions of equal opportunity for all.
Inten&tion&! #t&te'ie#: (nternational e<pansion strategies largely depend upon
effective HR3. ?ith groing trends toards global operations" the need for HR3 further
becomes more important as the need to integrate HR3 more closely into the organization
#eeps groing. $his is also because the process of meeting staffing needs from foreign
countries gros in a comple< manner.
Fo+n6&tion of %e#onne! f+n)tion#: HR3 provides essential information for
designing and implementing personnel functions such as recruitment" selection"
personnel development" training and development etc.
In)e&#in' in1e#t"ent# in HR: 5nother importance is the investment that an
organization ma#es in human capital. (t is important that employees are used effectively
throughout their careers. 0ecause human assets can increase the organization value
tremendously as opposed to physical assets
Re#i#t&n)e to )8&n'e ( "o1e: $he groing resistance toards change and move"
self evaluation" loyalty and dedication ma#ing it more difficult to assume that organization
can move its employees everyhere. Here HR3 becomes very important and needs the
resources to be planned carefully.
Ot8e ,enefit#: /olloing are the other benefits of HR3.
+. @pper management has a better vie of HR dimensions of business
,. Management can anticipate imbalances before they become unmanageable and
e<pensive.
-. More time is provided to locate talent
.. 0etter opportunities e<ists to include omen and minorities in future groth plans
7. 0etter planning of assignments to develop managers
8. Major and successful demands on local labor mar#ets can be made.
HR$ S<STEM
HR3 !ystem as such includes folloing elements or sets for planning.
&verall &rganization &bjectives
0usiness :nvironment
/orecasting Manpoer Heeds
5ssessing Manpoer !upply
Matching Manpoer )emand*!upply factors
0ased on these elements e can dra HR3 !ystem 5rchitecture as under.
12
Business Environment
Organization Objectives & Goals
Manpower Forecast Manpower Supply Assessment Manpower Programming Manpower mplementation
!ontrol & Manpower
Evaluation
Surplus Manpower S"ortage o# Manpower
HR$ $ROCESS
O'&ni2&tion&! O,0e)ti1e# ( $o!i)ie#: -
$he objectives of HR plan must be derived from organizational objectives li#e specific
requirements of numbers and characteristics of employees etc. HR3 needs to sub*serve the
overall objectives by ensuring availability and utilization of human resources. !pecific
policies need to be formulated to address the folloing decisions.
(nternal Hiring or :<ternal HiringD
$raining 6 )evelopment plans
@nion >onstraints
4ob enrichment issues
Rightsizing organization
5utomation needs
>ontinuous availability of adaptive and fle<ible or#force
M&n%o9e De"&n6 Foe)&#tin': -
(t is the process of estimating the future quantity and quality of people required.
$he basis should be annual budget and long term corporate plans
)emand forecasting should be based on folloing factors.
Internal Factors: -
0udget constraints
3roduction levels
He products and services
&rganizational structure
:mployee separation
External Factors: -
>ompetition environment
:conomic climate
2as and regulatory bodies
$echnology changes
!ocial /actors
Reasons for Manpower Demand Forecasting: -
$o quantify jobs
$o determine the !taff*mi<
$o assess staffing levels and avoid unnecessary costs
3revent shortages of people
Monitor compliances of legal requirements ith regards to reservations
M&n%o9e Foe)&#tin' Te)8niF+e#: -
M&n&'e"ent .+6'"ent: (n this techniques managers across all the levels decide the
forecast on their on judgment. $his can be bottom*up or top*don approach and
judgments can be revieed across departments" divisions and top management can
conclude on final numbers of manpoer required.
R&tion-Ten6 An&!*#i#: $his technique involves studying past ratios" and forecasting
future ratios ma#ing some alloance for changes in the organization or its methods.
;o7 St+6* Te)8niF+e#: (t is possible hen or# measurement to calculate the length of
operations and the amount of manpoer required. $he starting point can be production
budget" folloed by standard hours" output per hour; man*hours required etc could be
computed.
De!%8i Te)8niF+e#: $his technique solicits estimates from a group of e<perts" and HR3
e<perts normally act as intermediaries" summarizes various responses and report the
findings bac# to e<perts.
13
F!o9 Mo6e!#: $his technique involves the flo of folloing components. )etermine the
time required" :stablish categories" >ount annual movements" :stimate probable
transitions. Here demand is a function of replacing those ho ma#e a transition.
M&n%o9e S+%%!* Foe)&#tin': -
$his process measures the number of people li#ely to be available from ithin and outside
the organization after ma#ing alloance for absenteeism" internal movements and
promotions" astages" changes in hours and other conditions of or#.
Reasons for Manpower Supply Forecasting:
>larify !taff*mi<es e<ist in the future
5ssess e<isting staff levels
3revent shortages
Monitor e<pected future compliance of legal requirements of job reservations
Supply Analysis covers:
E3i#tin' H+"&n Re#o+)e#: HR 5udits facilitate analysis of e<isting employees ith s#ills
and abilities. $he e<isting employees can be categorized as s#ills inventories Anon*
managersB and managerial inventories AmanagersB
S'ill inventory would include the following(
3ersonal data
!#ills
!pecial Iualifications
!alary
4ob History
>ompany data
>apabilities
!pecial preferences
)anagement inventories would include the following
?or# History
!trengths
?ea#nesses
3romotion 3otential
>areer Coals
3ersonal )ata
Humber and $ypes of !ubordinates
$otal 0udget Managed
3revious Management )uties
Internal Supply: -
(nternal supply techniques help to assess the folloing
(nflos and outflos Atransfers" promotions" separations" resignations" retirements
etc.B
$urnover rate AHo. &f separations p.a. G 5verage employees p.a. J +==B
>onditions of or# Aor#ing hours" overtime" etc.B
5bsenteeism Aleaves" absencesB
3roductivity level
4ob movements A4ob rotations or cross functional utilizationsB
E3ten&! S+%%!*: -
:<ternal sources are required for folloing reasons
1:
He blood"
He e<periences
Replenish lost personnel
&rganizational groth
)iversification
:<ternal sources can be colleges and universities" consultants" competitors and unsolicited
applications.
HR $!&n I"%!e"ent&tion: -
5 series of action programs are initiated as a part of HR plan implementation as under.
Re)+it"ent ( Se!e)tion: :mployees are hired against the job vacancies. 0ased on
the manpoer demand and supply forecasts made" hiring of employees is initiated based
on supply forecasts. /or this internal and e<ternal sources of manpoer are utilized. 5
formal selection board is established to intervie and select the best of the candidates for
the required vacancies. /inally the selected employees also need to be placed on proper
jobs. Here some companies recruit employees for specific jobs hile others recruit fresh
trainees in large number and train them for future manpoer needs.
T&inin' &n6 De1e!o%"ent: $he training and development program is charted out to
cover the number of trainees" e<isting staff etc. $he programs also cover the identification
of resource personnel for conducting development program" frequency of training and
development programs and budget allocation.
Ret&inin' &n6 Re6e%!o*"entG He s#ills are to be imparted to e<isting staff hen
technology changes or product line discontinued. :mployees need to be redeployed to other
departments here they could be gainfully employed.
Retention $!&n: Retention plans cover actions" hich ould reduce avoidable
separations of employees. @sing compensation plans" performance appraisals" avoiding
conflicts" providing green pastures etc" can do this.
Do9n#i2in' %!&n#: ?here there is surplus or#force trimming of labor force ill be
necessary. /or these identifying and managing redundancies is very essential.
M&n&'ei&! S+))e##ion $!&nnin'G Methods of managerial succession plans may
vary. Most successful programs seem to include top managements involvement and
commitment" high*level revie of succession plans" formal performance assessment and
potential assessment and ritten development plans for individuals. 5 typical succession
planning involves folloing activities.
5nalysis of demand for managers and professionals
5udit of e<isting e<ecutives
3rojection of future li#ely supply from internal and e<ternal sources
(ndividual career path planning
>areer counseling
5ccelerated promotions
3erformance related training and development
!trategic recruitment
Conto! ( E1&!+&tion of HR$: -
HR 3lan must also clarify responsibilities for control and establish reporting procedures"
hich ill enable achievements to be monitored against the plan. $he HR 3lan should
include budgets" targets and standards. $hese plans may simply be reports on the numbers
employed" recruited against targets etc.
SUCCESSION $5ANNING
Me&nin' of S+))e##ion $!&nnin'
1=
!uccession planning is the process or activities connected ith the succession of persons to
fill #ey positions in the organization hierarchy as vacancies arise. $he focus of attention is
toards Khich' person the succession planning is needed. $he focus is not more on career
development but it is more toards hat #ind of person is required to fill the future
vacancy. !uccession planning focuses on identification of vacancies and locating the
probable successor. /or e<ample in succession planning the #ey concern can be ho ill be
ne<t >:& or hat ill happen if the Mar#eting Manager retires in coming March.
I"%ot&n)e of S+))e##ion $!&nnin'
!uccession planning helps hen there is a sudden need arises due to reason or
retirement of a #ey employee.
(ndividual employee comes to #no in advance the level to hich he can rise if he has
the ability and aptitude for it.
(ndividual employee or successor feels happy hen he feels that organization is ta#ing
care of his talents and aspirations.
!uccession planning helps create loyalty toards the organization and improved
motivation and morale of individual employees.
&rganization gains stable or#force and lo employee turnover.
@ltimately organization becomes successful in accomplishing its goals effectively.
CAREER $5ANNING
>areer planning is the process or activities offered by the organization to individuals to
identify strengths" ea#nesses" specific goals and jobs they ould li#e to occupy.
>areer as a concept means a lifelong sequences of professional" educational and
developmental e<periences that projects an individual through the orld of or#. (t is a
sequence of positions occupied by a person during his life. >areer may also be defined as
amalgamation of changes in values" attitudes and motivation that occurs as a person gros
older.
(n career planning" organization is concerned ith strategic questions of career
development. /urther the organization is concerned about if it should employ more
graduates" more engineers" more scientists or more accountants etc. >areer planning
provides picture of succession plan for employees as per organizational needs. (t focuses on
the basis of performance" e<perience" could be placed here" hen and ho.
>areer planning is a process of integrating the employees' needs and aspirations ith
organizational requirements.
O,0e)ti1e# of C&ee $!&nnin'
+. 0uild commitment in the individual
,. )evelop long*range perspective
-. Reduce personal turnover e<penses
.. 2essen employee obsolescence
7. :nsure organizational effectiveness
8. 5llo individual to achieve personal and or# related goals.
I"%ot&n)e of C&ee $!&nnin'
>areer planning is important because it helps the individual to e<plore" choose and strive to
derive satisfaction ith his on career objectives.
.O- ANA5<SIS
1?
.O-:
4ob is a Kgroup of tas#s to be performed everyday.
.O- ANA5<SIS
Definition 1: *+rocess of #ol l ecti ng Informati on,
4ob 5nalysis is a process of studying and collecting information relating to operations and
responsibilities of a specific job. $he immediate products of this analysis are K4ob
)escription' and K4ob !pecifications'.
Definition 2: *Systemati c -.pl orati on of Acti vi ti es,
4ob 5nalysis is a systematic e<ploration of activities ithin a job. (t is a basic technical
procedure that is used to define duties and responsibilities and accountabilities of the job.
Definition 3: *Identi fyi ng /ob "e0ui rements,
4ob is a collection of tas#s that can be performed by a single employee to contribute to the
production of some product or service" provided by the organization. :ach job has certain
ability requirements Aas ell as certain reardsB associated ith it. 4ob 5nalysis is a
process used to identify these requirements.
MEANING OF .O- ANA5<SIS
4ob 5nalysis is a process of collecting information about a job. $he process of job analysis
results into to sets of data.
4ob )escription
4ob !pecification
5s a result 4ob analysis involves the folloing steps in a logical order.
Steps of o! Analysis
+. >ollecting and recording job information
,. >hec#ing the job information for accuracy
-. ?riting job description based on information collected to determine the s#ills"
#noledge" abilities and activities required
.. @pdating and upgrading this information
$UR$OSE OF .O- ANA5<SIS: -
H+"&n Re#o+)e $!&nnin' (HR$): * $he numbers and types of personnel are
determined by the jobs" hich need to be staffed. 4ob related information in the form of 4ob
5nalysis serves this purpose or use.
Re)+it"ent ( Se!e)tion: * Recruitment precedes job analysis. (t helps HR to
locate places to obtain employees. (t also helps in better continuity and planning in staffing
in the organization. 5lso selecting a good candidate also requires detailed job information.
0ecause the objective of hiring is to match the right candidate for right job
T&inin' ( De1e!o%"ent: $raining and development programs can be designed
depending upon job requirement and analysis. !election of trainees is also facilitated by job
analysis.
.o, E1&!+&tion: 4ob evaluation means determination of relative orth of each job
for the purpose of establishing age and salary credentials. $his is possible ith the help of
job description and specifications; i.e. 4ob 5nalysis.
Re"+ne&tion: 4ob analysis also helps in determining age and salary for all jobs.
$efo"&n)e A%%&i#&!: 3erformance appraisal" assessments" reards"
promotions" is facilitated by job analysis by ay of fi<ing standards of job performance.
$e#onne! Info"&tion: 4ob analysis is vital for building personnel information
systems and processes for improving administrative efficiency and providing decision
14
support.
S&fet* ( He&!t8: 4ob 5nalysis helps to uncover hazardous conditions and
unhealthy environmental factors so that corrective measures can be ta#en to minimize and
avoid possibility of human injury.
$ROCESS OF .O- ANA5<SIS
$o)e## 1: !trategic >hoices
$o)e## 2: >ollecting (nformation
$o)e## 3: 3rocessing (nformation
$o)e## :: 4ob )escription
$o)e## =: 4ob !pecification
St&te'i) C8oi)e#: -
Extent of involvement of employees: :<tent of employee involvement is a
debatable point. $oo much involvement may result in bias in favor of a job in terms of
inflating duties and responsibilities. $oo less involvement leads to suspicion about the
motives behind the job. 0esides it may also lead to inaccurate information. Hence e<tent of
involvement depends on the needs of the organization and employee.
"evel of details of #o! analysis: $he nature of jobs being analyzed determines the
level of details in job analysis. (f the purpose ere for training programs or assessing the
orth of job" levels of details required ould be great. (f the purpose is just clarification the
details required ould be less.
$iming and fre%uency of o! Analysis: ?hen do you do 4ob 5nalysisD
(nitial stage" for ne organization
He 4ob is created
>hanges in 4ob" $echnology and 3rocesses
)eficiencies and )isparities in 4ob
He compensation plan is introduced
@pdating and upgrading is required.
&ast-oriented and future-oriented o! Analysis: /or rapidly changing
organization more future oriented approach ould be desired. /or traditional organizations
past oriented analysis ould be required. Hoever more future oriented analysis may be
derived based on past data.
Sources of o! Data: /or job analysis number of human and non*human sources is
available besides jobholder himself. /olloing can be sources of data available for job
analysis.
Non-H+"&n So+)e# H+"&n So+)e#
:<isting job descriptions and
specifications
:quipment maintenance records
:quipment design blueprints
5rchitectural blueprints of or# area
/ilms of employee or#ing
$raining manuals and materials
Magazines" nespapers" literatures
4ob 5nalysis
4ob (ncumbents
!upervisors
4ob :<perts
Co!!e)tin' Info"&tion: -
(nformation collection is done on the basis of folloing - parameters
%ypes of !ata for /ob Analysis1
?or# 5ctivities A$as#s detailsB
(nterface ith other jobs and equipments A3rocedures" 0ehaviors" MovementsB
Machines" $ools" :quipments and ?or# 5ids A2ist" Materials" 3roducts" !ervicesB
1@
4ob >onte<t A3hysical" !ocial" &rganizational" ?or# scheduleB
3ersonal Requirement A!#ills" :ducation" $raining" :<perienceB
)ethods of !ata #ollection1
&bservation
(ntervie
Iuestionnaires
>hec#lists
$echnical >onference
)iary Methods
2ho to #ollect !ata3
$rained 4ob 5nalysts
!upervisors
4ob (ncumbents
$o)e##in' Info"&tion: -
&nce the job information is collected it needs to be processed" so that it ould be useful in
various personnel functions. !pecifically job related data ould be useful to prepare job
description and specifications" hich form the ne<t to processes of job analysis.
METHODS OF DATA CO55ECTION:
'!servation: 4ob 5nalyst carefully observes the jobholder and records the information
in terms of hat" ho the job is done and ho much time is ta#en. (t is a simple and
accurate method" but is also time consuming and inapplicable to jobs involving mental
activities and unobservable job cycles. $he analysts must be fully trained observers.
Interview: (n this analyst intervies the jobholders" his supervisors to elicit information.
(t can be !tructured or @nstructured (ntervie. 5gain this is also a time consuming method
in case of large organizations. 3lus there is also a problem of bias.
(uestionnaires: 5 standard questionnaire is given to jobholder about his job" hich
can be filled and given bac# to supervisors or job analysts. $he questionnaire may contain
job title" jobholder's name" managers name" reporting staff" description of job" list of main
duties and responsibilities etc. (t is useful in large number of staffs and less time
consuming. Hoever the accuracy of information leaves much to be desired.
)*ec+lists: (t is more similar to questionnaire but the response sheet contains feer
subjective judgments and tends to be either yes or no variety. 3reparation of chec#list is a
challenging job itself.
$ec*nical )onference: Here a conference of supervisors is used. $he analysts initiate
the discussions providing job details. Hoever this method lac#s accuracy.
Diary Met*ods: (n this method jobholder is required to note don their activities day
by day in their diary. (f done faithfully this technique is accurate and eliminates errors
caused by memory lapses etc.
H+&ntit&ti1e Met8o6# of .o, D&t& Co!!e)tion: -
$o#ition An&!*#i# H+e#tionn&ie ($AH): -
35I is a highly specialized instrument for analyzing any job in terms of employee activities.
$he 35I contains +;. job elements on hich job is created depending on the degree to
hich an element is present. $hese elements are grouped together into 8 categories.
+. @ % @sability G @se of 4ob
,. ( % (mportance of 4ob
-. $ % $ime
.. 3 % 3ossibility of &ccurrence of 4ob
7. 5 % 5pplicability of 4ob
8. ! % !pecialty $as#s of 4ob
1C
$he primary advantage of 35I is that it can be used to analyze almost every job. $his
analysis provides a comparison of a specific job ith other job classifications" particularly
for selection and remuneration purposes. Hoever 35I needs to be completed by trained
job analysts only rather than incumbents.
M&n&'e"ent $o#ition De#)i%tion H+e#tionn&ie (M$DH): -
Highly structured questionnaire" containing ,=9 elements relating to managerial
responsibilities" demand" restrictions and other position characteristics $hese ,=9 elements
are grouped under +- categories.
35I and M3)I yi el d standardi zed i nformati on about the or#er and the job.
F+n)tion&! .o, An&!*#i#: -
(t i s a or#er ori ented job anal yti cal approach" hi ch attempts to descri be
the hol e person on the job.
-ARRIERS OF .O- ANA5<SIS
!upport from $op Management
!ingle means and source" reliance on single method rather than combination
Ho $raining or Motivation to 4obholders
5ctivities and )ata may be )istorted
.O- DESCRI$TION
4ob )escription implies objective listing of the job title" tas#s" and responsibilities involved
in a job.
4ob description is a ord picture in riting of the duties" responsibilities and organizational
relationships that constitutes a given job or position. (t defines continuing or# assignment
and a scope of responsibility that are sufficiently different from those of the other jobs to
arrant a specific title. 4ob description is a broad statement of purpose" scope" duties and
responsibilities of a particular job.
Content# of .o, De#)i%tion
+. 4ob (dentification
,. 4ob !ummary
-. 4ob )uties and Responsibilities
.. !upervision specification
7. Machines" tools and materials
8. ?or# conditions
1. ?or# hazards
9. )efinition of unusual terms
Fo"&t of .o, De#)i%tion
4ob $itle
RegionG2ocation
)epartment
Reporting to A&perational and ManagerialB
&bjective
3rincipal duties and responsibilities
Fe&t+e# of Goo6 .o, De#)i%tion
+. @p to date
,. 3roper 4ob $itle
2D
-. >omprehensive 4ob !ummary
.. >lear duties and responsibilities
7. :asily understandable
8. !tate job requirements
1. !pecify reporting relationships
9. !hocase degrees of difficulties
;. (ndicates opportunities for career development
+=. &ffer bird's*eye*vie of primary responsibilitie
.O- S$ECIFICATIONS
4ob !pecification involves listing of employee qualifications" s#ills and abilities required to
meet the job description. $hese specifications are needed to do job satisfactorily.
(n other ords it is a statement of minimum and acceptable human qualities necessary to
perform job properly. 4ob specifications see#s to indicate hat #ind of persons may be
e<pected to most closely appro<imate the role requirements and thus it is basically
concerned ith matters of selection" screening and placement and is intended to serve as a
guide in hiring.
Content# of .o, S%e)ifi)&tion#
+. 3hysical >haracteristics
,. 3sychological characteristics
-. 3ersonal characteristics
.. Responsibilities
7. )emographic features
/urther the job specifications can be divided into three broad categories
-ssential Attributes
!esirable Attributes
#ontra4Indicators 5 indicators hampering the success of $ob
.O- E/A5UATION
4ob :valuation involves determination of relative orth of each job for the purpose of
establishing age and salary differentials. Relative orth is determined mainly on the basis
of job description and job specification only. 4ob :valuation helps to determine ages and
salary grades for all jobs. :mployees need to be compensated depending on the grades of
jobs hich they occupy. Remuneration also involves fringe benefits" bonus and other
benefits. >learly remuneration must be based on the relative orth of each job. (gnoring
this basic principle results in inequitable compensation. 5 perception of inequity is a sure
ay of de*motivating an employee.
4ob evaluation is a process of analyzing and assessing the various jobs systematically to
ascertain their relative orth in an organization.
4obs are evaluated on the basis of content" placed in order of importance. $his establishes
4ob Hierarchies" hich is a purpose of fi<ation of satisfactory age differentials among
various jobs.
4obs are ran#ed Anot jobholdersB
S)o%e of .o, E1&!+&tion
$he job evaluation is done for the purpose of age and salary differentials" demand for and
supply of labor" ability to pay" industrial parity" collective bargaining and the li#e.
$o)e## of .o, E1&!+&tion:
+. )efining objectives of job evaluation
a. (dentify jobs to be evaluated A0enchmar# jobs or all jobsB
21
b. ?ho should evaluate jobD
c. ?hat training do the evaluators needD
d. Ho much time involvedD
e. ?hat are the criteria for evaluationD
f. Methods of evaluation to be used
,. ?age !urvey
-. :mployee >lassification
.. :stablishing age and salary differentials.
Met8o6# of .o, E1&!+&tion
An&!*ti)&! Met8o6#
$oint R&n7in' Met8o6#E )ifferent factors are selected for different jobs ith
accompanying differences in degrees and points.
F&)to Co"%&i#on Met8o6: $he important factors are selected hich can be
assumed to be common to all jobs. :ach of these factors are then ran#ed ith other jobs.
$he orth of the job is then ta#en by adding together all the point values.
Non-An&!*ti)&! Met8o6#
R&n7in' Met8o6: 4obs are ran#ed on the basis of its title or contents. 4ob is not
bro#en don into factors etc.
.o, G&6in' Met8o6: (t is based on the job as a hole and the differentiation is made
on the basis of job classes and grades. (n this method it is important to form a grade
description to cover discernible differences in s#ills" responsibilities and other
characteristics.
$itf&!!# of .o, E1&!+&tion:
:ncourages employees on ho to advance in position hen there may be limited
opportunities for enhancement as a result of donsizing.
(t promotes internal focus instead of customer orientation
Hot suitable for forard loo#ing organizations" hich has trimmed multiple job titles
into to or three broad jobs.
.O- DESIGN
$he 2ogical !equence to 4ob 5nalysis is 4ob )esign.
Definition 1: Integrati on of wor', rewards and 0ual i fi cati on
4ob )esign integrates or# content Atas#s" functions" relationshipsB" the reards and
qualifications required including s#ills" #noledge and abilities for each job in a ay that
meets the needs of employees and the organization.
Ste%# in .o, De#i'n: -
+. !pecification of (ndividual $as#s
,. !pecification of Methods of $as#s 3erformance
-. >ombination of $as#s into !pecific 4obs to be assigned to individuals
F&)to# &ffe)tin' .o, De#i'n: -
O'&ni2&tion&! f&)to#:
>haracteristics of $as#s A3lanning" :<ecution and >ontrolling of $as#B
?or# /lo A3rocess !equencesB
22
:rgonomics A$ime 6 Motion !tudyB
?or# 3ractices A!et of ays of performing tas#sB
En1ion"ent&! F&)to#:
:mployee 5bilities and 5vailability
!ocial and >ultural :<pectations
-e8&1io&! E!e"ent#:
/eedbac#
5utonomy
@se of 5bilities
Lariety
TECHNIHUES OF .O- DESIGN: -
;o7 Si"%!ifi)&tion: 4ob is simplified or specialized. $he job is bro#en don into
small parts and each part is assigned to an individual. $o be more specific" or#
simplification is mechanical pacing of or#" repetitive or# processes" or#ing only on one
part of a product" predetermining tools and techniques" restricting interaction amongst
employees" fe s#ills requirement. ?or# simplification is used hen jobs are not
specialized.
.o, Rot&tion: ?hen incumbents become bore of routine jobs" job rotation is an anser
to it. Here jobs remain unchanged" but the incumbents shift from one job to another. &n
the positive side" it increases the intrinsic reard potential of a job because of different
s#ills and abilities needed to perform it. ?or#ers become more competent in several jobs"
#no variety of jobs and improve the self*image" personal groth. /urther the or#er
becomes more valuable to the organization. 3eriodic job changes can improve
interdepartmental cooperation. &n the negative side" it may not be much enthusiastic or
efficiency may not be more. 0esides jobs may not improve the relationships beteen tas#"
hile activities and objectives remain unchanged. /urther training costs also rise and it can
also de*motivate intelligent and ambitious trainees ho see# specific responsibilities in their
chosen specialties.
.o, En!&'e"ent: (t means e<panding the number of tas#s" or duties assigned to a
given job. 4ob enlargement is naturally opposite to or# simplification. 5dding more tas#s
or duties to a job does not mean that ne s#ills and abilities are needed. $here is only
horizontal e<pansion. (t is ith same s#ills ta#ing additional responsibilities li#e e<tending
or#ing hours etc. 4ob enlargement may involve brea#ing up of the e<isting or# system
and redesigning a ne or# system. /or this employees also need to be trained to adjust to
the ne system. 4ob enlargement is said to contribute to employee motivation but the
claim is not validated in practice.
,enefits of o! Enlargement:
+. $as# Lariety
,. Meaningful ?or# Modules
-. /ull 5bility @tilization
.. ?or#er 3aced >ontrol
7. Meaningful 3erformance /eedbac#
Disadvantages of o! Enlargement
+. High $raining >osts
,. Redesigning e<isting or# system required
-. 3roductivity may not increase necessarily
.. ?or#load increases
7. @nions demand pay%hi#e
23
8. 4obs may still remain boring and routine
.o, Eni)8"ent: 4ob enrichment is improvisation of both tas#s efficiency and human
satisfaction by building into people's jobs" quite specifically" greater scope for personal
achievement and recognition" more challenging and responsible or# and more opportunity
for individual advancement and groth. 5n enriched job ill have more responsibility" more
autonomy Avertical enrichmentB" more variety of tas#s Ahorizontal enrichmentB and more
groth opportunities. $he employee does more planning and controlling ith less
supervision but more self*evaluation. (n other ords" transferring some of the supervisor's
tas#s to the employee and ma#ing his job enriched.
-enefit# of .o, eni)8"ent
+. (t benefits employee and organization in terms of increased motivation"
performance" satisfaction" job involvement and reduced absenteeism.
,. 5dditional features in job meet certain psychological needs of jobholders due to
s#ill variety" identity" significance of job etc.
-. (t also adds to employee self*esteem and self*control.
.. 4ob enrichment gives status to jobholder and acts as a strong satisfier in one's
life.
7. 4ob enrichment stimulates improvements in other areas of organization.
8. :mpoerment is a by*product of job enrichment. (t means passing on more
authority and responsibility.
De"eit# of .o, Eni)8"ent
+. 2azy employees may not be able to ta#e additional responsibilities and poer. (t
on't fetch the desired results for an employee ho is not attentive toards his job.
,. @nions resistance" increased cost of design and implementation and limited
research on long term effect of job enrichment are some of the other demerits.
-. 4ob enrichment itself might not be a great motivator since it is job*intrinsic
factor. 5s per the to*factor motivation theory" job enrichment is not enough. (t should be
preceded by hygienic factors etc.
.. 4ob enrichment assumes that or#ers ant more responsibilities and those
or#ers ho are motivated by less responsibility" job enrichment surely de*motivates them
7. ?or#ers participation may affect the enrichment process itself.
8. >hange is difficult to implement and is alays resisted as job enrichment brings
in a changes the responsibility.
A+tono"o+# of Se!f-Die)te6 Te&"#: :mpoerment results in self*directed or#
teams. 5 self %directed team is an intact group of employees responsible for hole or#
segment" they or# together" handle day*to*day problems" plan and control" and are highly
effective teams.
Hi'8 $efo"&n)e ;o7 De#i'n: (mproving performance in an environment here
positive and demanding goals are set leads to high performance or# design. (t starts from
the principle of autonomous groups or#ing and developing an approach" hich enables
group to or# effectively together in situations here the rate of innovation is very high.
&perational fle<ibility is important and there is the need for employees to gain and apply
ne s#ills quic#ly ith minimum supervision. Hoever due to bureaucracy high
performance or# design does not or#.
DESIGNING .O-S MOTI/ATING .O-S
$he concept of motivating jobs relates to 4ob design. 4ob design affects employee
productivity" motivation and satisfaction. 4ob design is a conscious effort to organize tas#s"
duties and responsibilities into a unit of or# to achieve certain objectives.
2:
Ho a job design creates a motivating job can be seen ith the help of certain components
of job design" namely" job rotation" job enlargement" job enrichment" or# simplification
etc.
?or# simplification simplifies the job by brea#ing don the job into small parts. !implified
jobs are easy to perform hence employees find it easy to do. $raining requirements are
reduced and it benefits the organizations in terms of cost.
4ob rotation means movement of employees of job to job across the organization. (t
improves the intrinsic reard potential of a job because of different s#ills and abilities are
needed to perform a job. ?or#ers become more competent in several jobs rather than only
one. (t also improves or#ers self image" provides personal groth and ma#es or#ers
more valuable to the organization. 3eriodic job change can improve inter*departmental
cooperation. :mployees become more understanding to each other's problems.
>onsequently it provides a high level of motivation to employees because jobs itself become
motivators. Hence job rotation helps the job become more motivating.
4ob enlargement involves e<panding number of tas#s or duties assigned to a given job.
4ob enrichment involves improving tas# efficiency and human satisfaction. 4ob enrichment
provides greater scope for personal achievement and recognition" more challenging and
responsible or# and more opportunity for individual advancement and groth. 5n enriched
job gives vertical enrichment in the form of more responsibility and autonomy and a
horizontal enrichment in the form of variety of tas#s and more groth opportunities. $he
employee does more planning and controlling ith less supervision but more self*
evaluation. 5ll these factors lead to increased level of motivation and hence ma#e the jobs
more motivated.
>onsidering above e<amples" e can say that designing jobs is actually using the relevant
and right techniques of job design" li#e rotation" enrichment" simplifications and ma#e the
jobs more motivating to perform.
!o e can say that )esigning 4obs is actually creating Motivated 4obs.
.O- SATISFACTION
4ob satisfaction is the result of various attitudes possessed by an employee toards his job"
related factors and life in general. $he attitudes related to job may be ages" supervision"
steadiness" or#ing conditions" advancement opportunities" recognitions" fair evaluation of
or#" social relations on job" prompt settlement of grievances etc.
(n short job satisfaction is a general attitude" hich is the result of many specific attitudes
in three areas namely" job factors" individual characteristics and group relationships outside
the job.
Co"%onent# of .o, S&ti#f&)tion
$e#on&! f&)to#: !e<" )ependents" 5ge" $imings" (ntelligence" :ducation and 3ersonality.
.o, in8eent f&)to#: $ype of or#" !#ills" &ccupational status" Ceography" !ize of plant
M&n&'e"ent )onto!!e6 f&)to#: !ecurity" 3ayment" /ringe benefits" 5dvancement
opportunities and ?or#ing conditions" >o*or#ers" Responsibilities" !upervision
.o, S&ti#f&)tion ( -e8&1io e!&tion#8i% i# 6e#)i,e6 t8o+'8 fo!!o9in' e3&"%!e#>
!atisfaction 6 $urnover
2=
!atisfaction 6 5bsenteeism
!atisfaction 6 5ccidents
!atisfaction 6 4ob 3erfor
;ORI SAM$5ING
Definition 1: )easuring and 0uantifying activities
M5 measurement technique for the quantitative analysis of non*repetitive or irregularly
occurring activity.M
Me&nin' of ;o7 S&"%!in'
?or# sampling is based on the theory that the percentage of the number of observations
on a particular activity is a reliable measure of the percentage of the total actual time spent
on that activity.
?or# sampling operates by an observer ta#ing a series of random observations on a
particular MthingM of interest Amachine" operating room" doc#" etc.B to observe its MstateM
Aor#ing" idle" sleeping" empty" etc.B. ?hen enough samples are ta#en" an analysis of the
observations yields a statistically valid indication of the states for each thing analyzed.
5ssume" for e<ample" that you ish to determine the proportion of time a factory operator
is or#ing or idle. 5lso assume that ,== random observations ere made of the operator
and during ,. of these he or she as observed to be idle. $herefore" you find that the
individual is or#ing +18G,== N 99O of the time.
A61&nt&'e# of ;o7 S&"%!in'
(t is relatively ine<pensive to use and e<tremely helpful in providing a deeper
understanding of all types of operations.
?hen properly used" it can help pinpoint those areas" hich should be analyzed in" further
detail and can serve as a measure of the progress being made in improving operations.
H+e#tion# of 9o7 #&"%!in' #t+6*
?hat is our equipmentGasset utilizationD
?hen e are not adding value to the product" ho are e spending our timeD
Ho are our inter*dependent systems performingD
?here should e focus our continuous improvement activitiesD
Di#tin)tion ,et9een ;o7 #&"%!in' &n6 JTi"e St+6ie#J
?or# sampling is loer cost because it uses random samples instead of continuous
observations.
Many operators or machines can be studied by a single observer
?or# sampling can span several days or ee#s" thus minimizing the effects of day to
day load or equipment variations
?or# !ampling tends to minimize operator behavior modification during observation.
?or# !ampling" in general" does not require a trained time*study analyst to ta#e the
observations. 5lso" stopatches or other timing devices are not required. Many studies
ma#e use of off*shift technicians or operators to ta#e the observations.
2?
;o7 #&"%!in' Met8o6o!o'*
5n analyst R5H)&M2P observes an activity Aequipment" operating room" production lineB
and notes the particular states of the activity at each observation.
$he ratio of the number of observations of a given state of the activity to the total number
of observations ta#en ill appro<imate the percentage of time that the activity is in that
given state.
Hote that random observations are very critical for a or# sampling study. 5 brief e<ample
might be that 11 of +== observations shoed a machine to be running. ?e might then
conclude" ithin certain statistical limits" that the equipment is operational 11O of the time.
RECRUITMENT ( SE5ECTION
RECRUITMENT
Definition Of Re)+it"ent: 6i ndi ng and Attracti ng Appl i cati ons
Recruitment is the 3rocess of finding and attracting capable applicants for employment.
$he 3rocess begins hen ne recruits are sought and ends hen their applications are
submitted. $he result is a pool of application from hich ne employees are selected.
MEANING OF RECRUITMENT:
Recruitment is understood as the process of searching for and obtaining applicants for jobs"
from among them the right people can be selected. $hough theoretically recruitment
process is said to end ith the receipt of applications" in practice the activity e<tends to the
screening of applications so as to eliminate those ho are not qualified for the job.
$UR$OSE AND IM$ORTANCE OF RECRUITMENT: -
+. )etermine the present and future requirements in conjunction ith personnel planning
and job analysis activities
,. (ncrease the pool of job candidates at minimum cost
-. Help increase success rate of selection process by reducing number of under*qualified or
over*qualified applications.
.. Reduce the probability that job applicants once selected ould leave shortly
7. Meet legal and social obligations
8. (dentify and prepare potential job applicants
1. :valuate effectiveness of various recruitment techniques and sources for job applicants.
FACTORS GO/ERNING RECRUITMENT
E3ten&! F&)to#:
)emand and !upply A!pecific !#illsB
@nemployment Rate A5rea*iseB
2abor Mar#et >onditions
3olitical and 2egal :nvironment AReservations" 2abor lasB
(mage
Inten&! F&)to#
Recruitment 3olicy A(nternal Hiring or :<ternal HiringDB
Human Resource 3lanning A3lanning of resources requiredB
!ize of the &rganization A0igger the size lesser the recruitment problemsB
>ost
Croth and :<pansion 3lans
24
RECRUITMENT $ROCESS
Re)+it"ent $!&nnin'
Humber of contacts
$ypes of contacts
Re)+it"ent St&te'* De1e!o%"ent
Ma#e or 0uy :mployees
$echnological !ophistication
?here to loo#
Ho to loo#
Inten&! Re)+it"ent (So+)e 1)
3resent employees
:mployee referrals
$ransfers 6 3romotions
/ormer :mployees
3revious 5pplicants
:valuation of (nternal Recruitment
E3ten&! Re)+it"ent (So+)e 2)
3rofessionals or $rade 5ssociations
5dvertisements
:mployment :<changes
>ampus Recruitment
?al#*ins (ntervies
>onsultants
>ontractors
)isplaced 3ersons
Radio 6 $elevision
5cquisitions 6 Mergers
>ompetitors
:valuation of :<ternal Recruitment
Se&)8in'
!ource activation
!elling
!creening of 5pplications
E1&!+&tion &n6 Co#t Conto!
!alary >ost
Management 6 3rofessional $ime spent
5dvertisement >ost
3roducing !upporting literature
Recruitment &verheads and :<penses
>ost of &vertime and &utsourcing
>onsultant's fees
E1&!+&tion of Re)+it"ent $o)e##
Return rate of applications sent out
!uitable >andidates for selection
Retention and 3erformance of selected candidates
Recruitment >ost
$ime lapsed data
(mage projection
INTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
+. 2ess >ostly
,. >andidates already oriented toards
+. &ld concept of doing things
,. (t abets raiding
2@
organization
-. &rganizations have better #noledge
about internal candidates
.. :mployee morale and motivation is
enhanced
-. >andidates current or# may be
affected
.. 3olitics play greater roles
7. Morale problem for those not
promoted.
EXTERNA5 RECRUITMENT
A61&nt&'e# Di#&61&nt&'e#
+. 0enefits of ne s#ills and talents
,. 0enefits of ne e<periences
-. >ompliance ith reservation policy
becomes easy
.. !cope for resentment" jealousies" and
heartburn are avoided.
+. 0etter morale and motivation
associated ith internal recruiting is
denied
,. (t is costly method
-. >hances of creeping in false positive
and false negative errors
.. 5djustment of ne employees ta#es
longer time.
SE5ECTION: -
MEANING OF SE5ECTION:
!election is the process of pic#ing up individuals Aout of the pool of job applicantsB ith
requisite qualifications and competence to fill jobs in the organization. 5 formal definition of
!election is as under
Definition of Se!e)tion: +rocess of di fferenti ati ng
!election is the process of differentiating beteen applicants in order to identify and hire
those ith a greater li#elihood of success in a job.
DIFFERENCE -ET;EEN RECRUITMENT AND SE5ECTION:
Re)+it"ent Se!e)tion
+. Recruitment refers to the process of
identifying and encouraging prospective
employees to apply for jobs.
,. Recruitment is said to be positive in
its approach as it see#s to attract as
many candidates as possible.
+. !election is concerned ith pic#ing up
the right candidates from a pool of
applicants.
,. !election on the other hand is
negative in its application in as much as
it see#s to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.
$ROCESS E STE$S IN SE5ECTION
+. $e!i"in&* Inte1ie9: $he purpose of preliminary intervies is basically to
eliminate unqualified applications based on information supplied in application forms. $he
basic objective is to reject misfits. &n the other hands preliminary intervies is often called
a courtesy intervie and is a good public relations e<ercise.
,. Se!e)tion Te#t#: 4obsee#ers ho past the preliminary intervies are called for
tests. $here are various types of tests conducted depending upon the jobs and the
company. $hese tests can be 5ptitude $ests" 3ersonality $ests" and 5bility $ests and are
conducted to judge ho ell an individual can perform tas#s related to the job. 0esides this
there are some other tests also li#e (nterest $ests Aactivity preferencesB" Craphology $est
AHandritingB" Medical $ests" 3sychometric $ests etc.
-. E"%!o*"ent Inte1ie9: $he ne<t step in selection is employment intervie. Here
intervie is a formal and in*depth conversation beteen applicant's acceptability. (t is
2C
considered to be an e<cellent selection device. (ntervies can be &ne*to*&ne" 3anel
(ntervie" or !equential (ntervies. 0esides there can be !tructured and @nstructured
intervies" 0ehavioral (ntervies" !tress (ntervies.
.. Refeen)e ( -&)7'o+n6 C8e)7#: Reference chec#s and bac#ground chec#s
are conducted to verify the information provided by the candidates. Reference chec#s can
be through formal letters" telephone conversations. Hoever it is merely a formality and
selections decisions are seldom affected by it.
7. Se!e)tion De)i#ion: 5fter obtaining all the information" the most critical step is the
selection decision is to be made. $he final decision has to be made out of applicants ho
have passed preliminary intervies" tests" final intervies and reference chec#s. $he vies
of line managers are considered generally because it is the line manager ho is responsible
for the performance of the ne employee.
8. $8*#i)&! E3&"in&tion: 5fter the selection decision is made" the candidate is
required to undergo a physical fitness test. 5 job offer is often contingent upon the
candidate passing the physical e<amination.
1. .o, Offe: $he ne<t step in selection process is job offer to those applicants ho
have crossed all the previous hurdles. (t is made by ay of letter of appointment.
9. Cont&)t of E"%!o*"ent: 5fter the job offer is made and candidates accept the
offer" certain documents need to be e<ecuted by the employer and the candidate. Here is a
need to prepare a formal contract of employment" containing ritten contractual terms of
employment etc.
ESSENTIA5S OF A GOOD SE5ECTION $RACTICE
+. )etailed job descriptions and job specifications prepared in advance and endorsed by
personnel and line management
,. $rained the selectors
-. )etermine aids to be used for selection process
.. >hec# competence of recruitment consultants before retention
7. (nvolve line managers at all stages
8. 5ttempt to validate the procedure
1. Help the appointed candidate to succeed by training and management development
-ARRIERS TO EFFECTI/E SE5ECTION: -
+. $e)e%tion: ?e all perceive the orld differently. &ur limited perceptual ability is
obviously a stumbling bloc# to the objective and rational selection of people.
,. F&ine##: 0arriers of fairness includes discrimination against religion" region" race or
gender etc.
-. /&!i6it*: 5 test that has been validated can differentiate beteen the employees ho
can perform ell and those ho ill not. Hoever it does not predict the job success
accurately.
.. Re!i&,i!it*: 5 reliable test may fail to predict job performance ith precision.
7. $e##+e: 3ressure brought on selectors by politicians" bureaucrats" relatives" friends
and peers to select particular candidate are also barriers to selection.
TRAINING ( DE/E5O$MENT
Definition of T&inin' ( De1e!o%"ent: Improve performance
7%raining 8 !evelopment is any attempt to improve current or future employee
performance by increasing an employee's ability to perform through learning" usually by
changing the employee's attitude or increasing his or her s#ills and #noledge.
MEANING OF TRAINING ( DE/E5O$MENT: -
$he need for $raining and )evelopment is determined by the employee's performance
deficiency" computed as follos.
$raining 6 )evelopment Heed N !tandard 3erformance % 5ctual 3erformance
3D
?e can ma#e a distinction among $raining" )evelopment and :ducation.
Di#tin)tion ,et9een T&inin' &n6 E6+)&tion
T&inin' E6+)&tion
5pplication oriented
4ob e<perience
!pecific $as# in mind
Harro 3erspective
$raining is 4ob !pecific
$heoretical &rientation
>lassroom learning
>overs general concepts
Has 0road 3erspective
:ducation is no bar
T&inin': $raining refers to the process of imparting specific s#ills. 5n employee
undergoing training is presumed to have had some formal education. Ho training program
is complete ithout an element of education. Hence e can say that $raining is offered to
operatives.
E6+)&tion: (t is a theoretical learning in classrooms. $he purpose of education is to teach
theoretical concepts and develop a sense of reasoning and judgment. $hat any training and
development program must contain an element of education is ell understood by HR
!pecialists. 5ny such program has university professors as resource persons to enlighten
participants about theoretical #noledge of the topics proposed to discuss. (n fact
organizations depute or encourage employees to do courses on part time basis. >:&s are
#non to attend refresher courses conducted by business schools. $he education is more
important for managers and e<ecutives rather than lo cadre or#ers. 5nyays education
is common to all employees" their grades notithstanding.
De1e!o%"ent: )evelopment means those learning opportunities designed to help
employees to gro. )evelopment is not primarily s#ills oriented. (nstead it provides the
general #noledge and attitudes" hich ill be helpful to employers in higher positions.
:fforts toards development often depend on personal drive and ambition. )evelopment
activities such as those supplied by management development programs are generally
voluntary in nature. )evelopment provides #noledge about business environment"
management principles and techniques" human relations" specific industry analysis and the
li#e is useful for better management of a company.
O,0e)ti1e# of (MD$) M&n&'e"ent De1e!o%"ent $o'&"# OR
A61&nt&'e# of De1e!o%"ent
+. Ma#ing them
!elf*starters
>ommitted
Motivated
Result oriented
!ensitive to environment
@nderstand use of poer
,. >reating self aareness
-. )evelop inspiring leadership styles
.. (nstill zest for e<cellence
7. $each them about effective communication
8. $o subordinate their functional loyalties to the interests of the organization
Diffeen)e ,et9een T&inin' &n6 De1e!o%"ent
T&inin' De1e!o%"ent
$raining is s#ills focused )evelopment is creating learning abilities
31
$raining is presumed to have a formal
education
)evelopment is not education dependent
$raining needs depend upon lac# or
deficiency in s#ills
)evelopment depends on personal drive
and ambition
$rainings are generally need based )evelopment is voluntary
$raining is a narroer concept focused
on job related s#ills
)evelopment is a broader concept
focused on personality development
$raining may not include development )evelopment includes training herever
necessary
$raining is aimed at improving job
related efficiency and performance
)evelopment aims at overall personal
effectiveness including job efficiencies
;8&t &e t8e T&inin' In%+t#A
!#ills
:ducation
)evelopment
:thics
3roblem !olving !#ills
)ecision Ma#ing
5ttitudinal >hanges
I"%ot&n)e of T&inin' ( De1e!o%"ent
Helps remove performance deficiencies in employees
Creater stability" fle<ibility and capacity for groth in an organization
5ccidents" scraps and damages to machinery can be avoided
!erves as effective source of recruitment
(t is an investment in HR ith a promise of better returns in future
Reduces dissatisfaction" absenteeism" complaints and turnover of employees
Nee6 of T&inin'
In6i1i6+&! !e1e!
)iagnosis of present problems and future challenges
(mprove individual performance or fi< up performance deficiency
(mprove s#ills or #noledge or any other problem
$o anticipate future s#ill*needs and prepare employee to handle more challenging tas#s
$o prepare for possible job transfers
Go+% !e1e!
$o face any change in organization strategy at group levels
?hen ne products and services are launched
$o avoid scraps and accident rates
I6entifi)&tion of T&inin' Nee6# (Met8o6#)
In6i1i6+&! T&inin' Nee6# I6entifi)&tion
+. 3erformance 5ppraisals
,. (ntervies
-. Iuestionnaires
.. 5ttitude !urveys
7. $raining 3rogress /eedbac#
8. ?or# !ampling
1. Rating !cales
Go+% 5e1e! T&inin' Nee6# I6entifi)&tion
32
+. &rganizational Coals and &bjectives
,. 3ersonnel G !#ills (nventories
-. &rganizational >limate (ndices
.. :fficiency (ndices
7. :<it (ntervies
8. M0& G ?or# 3lanning !ystems
1. Iuality >ircles
9. >ustomer !atisfaction !urvey
;. 5nalysis of >urrent and 5nticipated >hanges
-enefit# of T&inin' Nee6# I6entifi)&tion
+. $rainers can be informed about the broader needs in advance
,. $rainers 3erception Caps can be reduced beteen employees and their supervisors
-. $rainers can design course inputs closer to the specific needs of the participants
.. )iagnosis of causes of performance deficiencies can be done
Met8o6# of T&inin'
On t8e .o, T&inin'#: $hese methods are generally applied on the or#place hile
employees is actually or#ing. /olloing are the on*the*job methods.
A61&nt&'e# of On-t8e-.o, T&inin':
(t is directly in the conte<t of job
(t is often informal
(t is most effective because it is learning by e<perience
(t is least e<pensive
$rainees are highly motivated
(t is free from artificial classroom situations
Di#&61&nt&'e# of On-t8e-.o, T&inin':
$rainer may not be e<perienced enough to train
(t is not systematically organized
3oorly conducted programs may create safety hazards
On t8e .o, T&inin' Met8o6#
+. .o, Rot&tion: (n this method" usually employees are put on different jobs turn by
turn here they learn all sorts of jobs of various departments. $he objective is to give a
comprehensive aareness about the jobs of different departments. 5dvantage % employee
gets to #no ho his on and other departments also function. (nterdepartmental
coordination can be improved" instills team spirit. )isadvantage % (t may become too much
for an employee to learn. (t is not focused on employees on job responsibilities.
:mployees basic talents may remain under utilized.
,. .o, Co&)8in': 5n e<perienced employee can give a verbal presentation to e<plain
the nitty*gritty's of the job.
-. .o, In#t+)tion: (t may consist an instruction or directions to perform a particular
tas# or a function. (t may be in the form of orders or steps to perform a tas#.
.. A%%enti)e#8i%#: Cenerally fresh graduates are put under the e<perienced
employee to learn the functions of job.
7. Inten#8i%# &n6 A##i#t&nt#8i%#: 5n intern or an assistants are recruited to
perform a specific time*bound jobs or projects during their education. (t may consist a part
of their educational courses.
33
Off t8e .o, T&inin'#: $hese are used aay from or# places hile employees are not
or#ing li#e classroom trainings" seminars etc. /olloing are the off*the*job methods;
A61&nt&'e# of Off-t8e-.o, T&inin':
$rainers are usually e<perienced enough to train
(t is systematically organized
:fficiently created programs may add lot of value
Di#&61&nt&'e# of Off-t8e-.o, T&inin':
(t is not directly in the conte<t of job
(t is often formal
(t is not based on e<perience
(t is least e<pensive
$rainees may not be highly motivated
(t is more artificial in nature
Off t8e .o, T&inin' Met8o6#
+. C!&##oo" 5e)t+e#: (t is a verbal lecture presentation by an instructor to a large
audience. 5dvantage % (t can be used for large groups. >ost per trainee is lo.
)isadvantages % 2o popularity. (t is not learning by practice. (t is &ne*ay
communication. Ho authentic feedbac# mechanism. 2i#ely to boredom.
,. A+6io-/i#+&!: (t can be done using /ilms" $elevisions" Lideo" and 3resentations etc.
5dvantages % ?ide range of realistic e<amples" quality control possible". )isadvantages %
&ne*ay communication" Ho feedbac# mechanism. Ho fle<ibility for different audience.
-. Si"+!&tion: creating a real life situation for decision*ma#ing and understanding the
actual job conditions give it. /olloing are some of the simulation methods of trainings
a. C&#e St+6ie#: (t is a ritten description of an actual situation and trainer is
supposed to analyze and give his conclusions in riting. $he cases are generally based on
actual organizational situations. (t is an ideal method to promote decision*ma#ing abilities
ithin the constraints of limited data.
b. Ro!e $!&*#: Here trainees assume the part of the specific personalities in a
case study and enact it in front of the audience. (t is more emotional orientation and
improves interpersonal relationships. 5ttitudinal change is another result. $hese are
generally used in M)3.
c. Sen#iti1it* T&inin'#E $his is more from the point of vie of behavioral
assessment" under different circumstances ho an individual ill behave himself and
toards others. $here is no preplanned agenda and it is instant. 5dvantages % increased
ability to empathize" listening s#ills" openness" tolerance" and conflict resolution s#ills.
)isadvantage % 3articipants may resort to their old habits after the training.
.. $o'&""e6 In#t+)tion#: 3rovided in the form of bloc#s either in boo# or a
teaching machine using questions and /eedbac#s ithout the intervention of trainer.
5dvantages % !elf paced" trainees can progress at their on speed" strong motivation for
repeat learning" material is structured and self*contained. )isadvantages % !cope for
learning is less; cost of boo#s" manuals or machinery is e<pensive.
7. Co"%+te Ai6e6 In#t+)tion#: (t is e<tension of 3( method" by using computers.
5dvantages % 3rovides accountabilities" modifiable to technological innovations" fle<ible to
time. )isadvantages % High cost.
?> 5&,o&to* T&inin'
-&ie# to Effe)ti1e T&inin':
+. 2ac# of Management commitment
,. (nadequate $raining budget
-. :ducation degrees lac# s#ills
.. 2arge scale poaching of trained staff
7. Hon*coordination from or#ers due to donsizing trends
8. :mployers and 0 !chools operating distantly
1. @nions influence
Ho9 To M&7e T&inin' Effe)ti1eA
3:
+. Management >ommitment
,. $raining 6 0usiness !trategies (ntegration
-. >omprehensive and !ystematic 5pproach
.. >ontinuous and &ngoing approach
7. 3romoting 2earning as /undamental Lalue
8. >reations of effective training evaluation system
INDUCTION ( ORIENATION
Definition 1: +lanned Introduction
(t is a 3lanned (ntroduction of employees to their jobs" their co*or#ers and the
organization per se.
Oient&tion )on1e*# : t*%e# of info"&tion:
+. )aily ?or# Routine
,. &rganization 3rofile
-. (mportance of 4obs to the organization
.. )etailed &rientation 3resentations
$+%o#e of Oient&tion
+. $o ma#e ne employees feel at home in ne environment
,. $o remove their an<iety about ne or#place
-. $o remove their inadequacies about ne peers
.. $o remove orries about their job performance
7. $o provide them job information" environment
T*%e# of Oient&tion $o'&"#
+. /ormal or (nformal
,. (ndividual or Croup
-. !erial or )isjunctive
$eeF+i#ite# of Effe)ti1e Oient&tion $o'&"
+. 3repare for receiving ne employee
,. )etermine information ne employee ants to #no
-. )etermine ho to present information
.. >ompletion of 3aperor#
$o,!e"# of Oient&tion#
+. 0usy or @ntrained supervisor
,. $oo much information
-. &verloaded ith paperor#
.. Civen menial tas#s and discourage interests
7. )emanding tas#s here failure chances are high
8. :mployee thron into action soon
1. ?rong perceptions of employees
;8&t i# t8e 6iffeen)e ,et9een in6+)tion &n6 oient&tionA
(nduction referred to formal training programs that an employee had to complete before
they could start or#
&rientation as the informal information giving that made the recruit aare of the comfort
issues * here the facilities are" hat time lunch is and so forth.
Ho9 !on' #8o+!6 t8e in6+)tion %o)e## t&7eA
(t starts hen the job ad is ritten" continues through the selection process and is not
complete until the ne team member is comfortable as a full contributor to the
organizationFs goals.
3=
$he first hour on day one is a critical component * signing on" issuing #eys and passords"
e<plaining no go zones" emergency procedures" meeting the people that you ill interact
ith all have to be done immediately. @ntil they are done the necomer is on the payroll"
but is not employed.
5fter that it is a matter of just in time training * e<panding the content as ne duties are
underta#en.
;e on!* e"%!o* ne9 %eo%!e one &t & ti"e - 8o9 )&n 9e in6+)t t8e"A
$here are some issues" hich cannot ait * they vary according to your situation. 3erhaps a
buddy system on the job may be the best ay to deal ith these. &ther subjects may be
incorporated ith refresher training for current staff" or handled as participant in an outside
program. 3erhaps some can ait until there are groups of people ho have started in the
last fe months.
$his may ta#e some creative thin#ing" but the anser is quite simple * until the ne people
are integrated then they are less useful. $he math is often amazingly simple * not ta#ing
the time to train consumes more time than the training ould.
;8&t !e1e!# of #t&ff nee6 in6+)tionA
:verybody. $he >:& needs to #no different things to the temporary concierge" but
everyone needs a planned program of induction and orientation.
$5ACEMENT
3lacement is allocation of people to jobs. (t is assignment or reassignment of an employee
to a ne or different job.
MU5TI SII55ING
Multi !#illing is $he (ntegrated !#ills 3rogram that has been developed to build on the
e<isting s#ills of the current or# force to reduce redundancies and avoid donsizing
situations. $he objective of this program is to gain total integration of s#ills.
$he program is based around Kon*the*job' 6 Koff*the*job' competence. $hat is the ability to
do the job on the shop floor Atraining to gain or# e<perienceB and Koff*the*job' Atraining in
the classroomB to gain underpinning #noledge.
$he program requires the individual to demonstrate competence in a number of different
s#ills and this competence is measured and assessed on the job.
Multi*s#illing of course or#s best ith more advanced s#illed or#ers because their
individual s#ills levels are developed enough here they can fluidly transition from one s#ill
to the ne<t ithout degradation of a s#ills performance. (f you are multi*s#illing and a
great percentage of your or#ers are having problems e<ecuting one of the s#ills effectively
it is probably a good signal you need to go bac# to basics ith that s#ill and pull it out of
the multi*s#illing sequences. 5nother advantage of multi*s#illing is the positive effect of
hat is called Mconte<tual learningM. >onte<tual learning involves discovery and
improvement from to s#ills" hich donFt" on the surface" appear to have a direct
relationship.
$he disadvantages of multi*s#illing include the obvious danger of moving on to quic#ly
toard advanced s#ills and combinations ithout sufficiently drilling basic s#ills. ?hile
there is a great desire to learn quic#ly ( thin# this is one of the reason e are seeing better
3?
s#illed from some of the best or#ers. $he consequence is that e become Mpartially
s#illedM. $he greater the number of partial s#ills e develop" the less chance e ever have
of reaching our full potential.
CHANGE MANAGEMENT
C8&n'e 1i#-K-1i#
Recruitment
3erformance 5ppraisals
Me&nin' of C8&n'e:
5lterations in %3eople" !tructure and $echnology
E3ten&! Fo)e# of C8&n'e:
Mar#etplace
2abor mar#ets
:conomic >hanges
$echnology
2as and Regulations
Inten&! Fo)e# of C8&n'e
>orporate !trategies
?or#place
$echnology and :quipments
:mployee 5ttitudes
C8&n'e A'ent#: (;8o )&n ,in' &,o+t )8&n'eA)
Managers
:<ternal >onsultants
!taff !pecialists
$o)e## of C8&n'e (5e9in# #te%#)
@nfreezing
>hanging
Refreezing
;8ite 9&te &%i6# "et&%8o
2ac# of !tability
2ac# of 3redictability
Lirtual >haos
>onstant >hange
Re#i#t&n)e to C8&n'e
@ncertainty and 5mbiguity
3ersonal 2oss >oncerns
)isbelief in >hange benefits
Te)8niF+e# of Re6+)in' Re#i#t&n)e to C8&n'e
:ducation and >ommunication
Hegotiation
Manipulation and >o*optation
3articipation
/acilitation
>oercion
C8&n'e M&n&'e"ent
!tructural >hanges $echnological >hanges 3eople >hanges
34
5uthority
>oordination
>entralization
3rocesses
Methods
:quipments
5ttitudes
:<pectations
0ehaviors
O'&ni2&tion&! De1e!o%"ent Te)8niF+e#
!urvey /eedbac#
!ensitivity $raining
3rocess >onsultation
$eam 0uilding
(nter*group )evelopment
Con6ition# F&)i!it&tin' C8&n'e
)ramatic >risis
2eadership >hange
?ea# >ulture
Poung and !mall &rganization AageingB
T8e Ro&6 to C8&n'e in C+!t+e
5nalyze the culture
Heed for change
He leadership
Reorganize
Restructure
He stories and rituals
>hange the job systems
THM /E#> Reen'ineein'
$IM A$otal Iuality ManagementB Re engineering
>ontinuous >hange
/i<ing and (mproving
Mostly focused on K5s*(s'
!ystems indispensable
0ottom to $op
Radical and &ne time >hange
Redesigning
Mostly focused on Khat can beD'
$op to 0ottom
M&n&'in' Do9n#i2e6 ;o7fo)e
&pen and honest communication
5ssistance to them
Help for survivors of the donsized
Ste## in ;o7%!&)e
&pportunities stress
)emands stress
>onstraints stress
Ho9 to e6+)e 9o7%!&)e #te##
:mployee selection
&rganizational communication
3erformance 3lanning
4ob redesign especially hen processes change" jobs merged" and relocation happens
:mployee counseling
$ime management programs
;8&t i# )e&ti1it*A
>ombining ne ideas in unique ays or associating ideas in unusual ays
;8&t i# inno1&tionA
$urning creative ideas into useful products" services or methods of operations
3@
3 Set# of 1&i&,!e #i"+!&te inno1&tion
!tructural >hanges
>ultural >hanges
Human Resources >hanges
C8&n'e Define6
M>hange is the indo through hich the future enters your life.M (tFs all around you" in
many types and shapes. Pou can bring it about yourself or it can come in ays
;8* C8&n'e M&n&'e"entA
Pou can bring the change about yourself or it can come in ays that give you little choice
about its hat" hen" and ho. /ighting against change can slo it don or divert it" but it
onFt stop it hoever. (f you ish to succeed in this rapidly changing ne orld Myou must
learn to loo# on change as a friend * one ho presents you ith an opportunity for groth
and improvement.M
;
$he rate of change in todayFs orld is constantly increasing. :verything that e<ists is
getting old" earing out and should be replaced. MRevolutionary technologies" consolidation"
ell*funded ne competition" unpredictable customers" and a quic#ening in the pace of
change hurled unfamiliar conditions at management.M
1
$rue success and long*term prosperity in the ne orld depends on your ability to adapt to
different and constantly changing conditions. $he strategic selection of the best strategic
positioning in the playing field" or the 0usiness !pace" your firm must ta#e is complicated
by the fact that the characteristics of the 0usiness !pace change over time. $oday" the
orld is a different place than it as yesterday. M5t certain points" the difference becomes
material. !uccessful firms recognize change. Lery successful ones anticipate it.M
9
E1o!+tion&* ($!&nne6) C8&n'e 1e#+# Re1o!+tion&* A)tion
Ho you change a business unit to adapt to shifting economy and mar#ets is a matter of
management style. :volutionary change" that involves setting direction" allocating
responsibilities" and establishing reasonable timelines for achieving objectives" is relatively
painless. Hoever" it is rarely fast enough or comprehensive enough to move ahead of the
curve in an evolving orld here sta#es are high" and the response time is short. ?hen
faced ith mar#et*driven urgency" abrupt and sometimes disruptive change" such as
dramatic donsizing or reengineering" may be required to #eep the company competitive.
(n situations hen timing is critical to success" and companies must get more efficient and
productive rapidly" revolutionary change is demanded.
?hen choosing beteen evolutionary change and revolutionary action" a leader must
pursue a balanced and pragmatic approach. !inging too far to revolutionary e<treme may
create Man organizational culture that is so impatient" and so focused on change" that it fails
to give ne initiatives and ne personnel time to ta#e root" stabilize" and gro. ?hatFs
more" it creates a high*tension environment that intimidates rather than nurtures people"
leaving them ith little or no emotional investment in the company.M
.
Re#i#t&n)e to C8&n'e
Most people donFt li#e change because they donFt li#e being changed. M(f you ant to ma#e
enemies" try to change somethingM" advised ?oodro ?ilson. ?hen see#ing to change an
organization" itFs strategy or processes" leaders run into HetonFs la that a body at rest
tends to stay at rest. 5dvocates for change are greeted ith suspicion" anger" resistance"
and even sabotage.
.
MHot invented hereM syndrome also #eeps many sound ideas from
gaining the objective assessment they deserve...More
To6&*L# ;o!6 Re&!itie#
3C
$he magnitude of todayFs environmental" competitive" and global mar#et change is
unprecedented. (tFs a very interesting and e<citing orld" but itFs also volatile and chaoticE
/o!&ti!it* describes the economyFs rate of changeE e<tremely fast" ith e<plosive
upsurges and sudden donturns.
C8&o# describes the direction of the economyFs changesE eFre not sure e<actly
here eFre headed" but e are singing beteen the various alternatives at a very high
speed.
8

$o cope ith an unpredictable orld you must build an enormous amount of fle<ibility into
your organization. ?hile you cannot predict the future" you can get a handle on trends"
hich is a ay to ta#e advantage of change and convert ris#s into opportunities.
Ce&tin' C8&n'e fo I"%o1e"ent &n6 Co"%etiti1e A61&nt&'e
>hange creates opportunities" but only for those ho recognize and seize it. M!eeing is the
first step" seizing the second" and continuously innovating is the third.M
7
(nnovation
redefines groth opportunities. 5s current products are becoming obsolete faster than ever"
in order to survive and prosper" organizations continually need to improve" innovate and
modify their products and services. $he !ilicon Lalley slogan M:at lunch and you are lunchM
is more than a reflection of increasingly intense or# ethic. Riding the ave of change is
becoming the most important part of the business. ?hile the economy is shifting and
innovation is rampant" Mdoing it the same ayM is a recipe for corporate e<tinction.
+
!uccessful change efforts are those here the choices both are internally consistent and fit
#ey e<ternal and situational variables. MPou have to find subtle ays to introduce change"
ne concepts" and give feedbac# to people so that they can accept and gro ith it.M
.
Anti)i%&tin' C8&n'e
$here is big difference beteen anticipating and guessing. 5nticipation means e<pecting"
being aare of something in advance" to regard it as possible. $he ability to anticipate is
one of the #ey ingredients of efficient speed and change management. M0eing able to
anticipate that hich is li#ely to occur in the ne<t fe months and the ne<t fe years is
enough to give you an edge over ;;O of the population ho simply go along ith hatever
happens.M
1
Ho can you see the futureD 5ctually" anticipation is natural * everyone does it every day.
@nfortunately" most people limit e<ercising their anticipatory s#ills to daily routine matters.
5ll you really need to start applying these s#ills for your business is a small head
start...More
St&tin' 9it8 <o+#e!f
$he best place to start change is ith yourself. (f hatever you do doesnFt or#" you must
be fle<ible * you must change your action plan if the current one does not produce the
required results. (f you ant other people to change" you must be prepared to ma#e the
first step yourself. (f you cannot change your environment" you should change your
attitude. $o achieve effective personal change" consider practicing the H23$echnology of
5chievement that as specially developed to discover ho people can e<cel" and most
particularly hen managing change * ho to create the Fdifference that ma#es the
differenceF...More
5e&6in' C8&n'e
$he old ays of management no longer or# and ill never or# again. !uccessful change
requires leadership. ?hen change fails to occur as planned" the cause if often to be found
at a deeper level" rooted in the inappropriate behavior" beliefs" attitudes" and assumptions
of ould*be leaders.
8
2eadership is all about the process of changeE ho to stay ahead of it"
master it" benefit from the opportunities it brings. $he best leaders stri#e first by ta#ing the
offensive against economic cycles" mar#et trends" and competitors. $hey discover the most
effective ays for achieving significant change * Ma change that identifies the realities of the
:D
business environment and reorders them so that a ne force is able to leverage" rather
than resist" those realities in order to achieve a competitive advantage.M
.
$he folloing system ill help you to unleash the poer of your organization and reshape it
into a more competitive enterpriseE
)evelop a vision. $o create a seamless bridge from the vision to action" start ith
your top management team * they should understand and embrace your vision.
5lign all your people against the endgame. (nvite their opinion regarding critical
issues such as the direction you should be headed" the changes you have to ma#e" and the
resources you have to acquire.
@sing the employee feedbac#" develop a strategic plan. !tay laser*focused on the
methods that ill drive your business unit toards its stated objectives.
0uild a diverse leadership group representing all the #ey constituencies of your
organization. $hey ill share responsibility for plan management.
!hare detail information about the company and the change progress * people have
to understand here you are and here you are going in order to contribute effectively to
your mission.
M&n&'in' O'&ni2&tion&! C8&n'e
!uccess in business doesnFt come from feeling comfortable. (n todayFs technology*driven
orld" business life cycles have accelerated e<ponentially. $he challenge is to #eep a step
ahead of changing mar#et conditions" ne technologies and human resources issues.
$he heel of business evolution is a frameor# and set of tools" hich enables you to
manage the comple< process of organizational change and transformation more effectively.
$he sequence of the eight segments * business environment" business ecosystem" business
design" leadership style" organizational values" management process" #noledge
management systems" and performance measures * reflects the learning cycle that occurs
hen outside*in or bottom*up learning ta#es place.
-e8&1io&! C8&n'e
$he challenge and the shape of an organizationFs behavioral change program depend on the
corporate culture and the targeted behaviors that need to be changed. Pour change
program needs to be e<plicitly built around these challenges. MLery often" these programs
involve the creation of incentives hich elegantly reinforce the desired behavior Aand
therein reinforce the change loop in the learning dynamicB.M
9
...
Moti1&tin' E"%!o*ee# to E",&)e C8&n'e
Pou have a choice of instruments to motivate your people to embrace change.
3erformance*incentive levers are especially useful in driving those ho lac# direction or
initiative. Pou may also encourage employee feedbac# on here and ho the company can
ta#e corrective action and reard employees for their contribution. (n any case" Monce you
open the gates and encourage employees to serve as agents of change" you must
demonstrate that their input ill have a real*orld impact on the ay your company does
business.M
.
&n the other side" you have to be rather aggressive hen dealing ith people ho vie
change as a threat and create roadbloc#s that stall progress. 5nyone ho thin#s that itFs
harmless to ma#e e<ceptions for a fe people and shift resources to accommodate poor
performers is missing an important point. M(tFs not a fe people ho are at sta#e" itFs the
corporate cultureM" says Miles Creer" of !avannah :lectric. M0y permitting those ho resist
or retaliate against change to remain in the company" you broadcast a message that
suggests supporting the companyFs mission statement is optional. :ven orse" you permit
the least*committed employees to taint and influence the attitude and performance of their
peers.M
Mo1in' 9it8 S%ee6
:1
(n the ne economy here everything is moving faster and itFs only going to get faster" the
ne mantra is" M)o it more ith less and do it faster.M
+
$o be able to move ith speed"
companies need to establish a change*friendly environment and develop four major
competenciesE fast thin#ing" fast decision ma#ing" fast acting" and sustaining speed.
M&7in' H+i)7 De)i#ion# t8o+'8 E#t&,!i#8in' G+i6in' $in)i%!e#
/ast companies that have demonstrated the ability to sustain surge and velocity all have
established sets of guiding principles to help them ma#e quic# decisions. 5bandoning
theoretical and politically correct FvaluesF and bureaucratic procedures in favor of a
practical" don*to*earth list of guiding principles ill help your company ma#e the decision*
ma#ing process much faster. &nly one question ill need to be as#ed of any proposed
course of actionE )oes it fit our guiding principlesD
3:R/&RM5H>: 533R5(!52!
Definition 1: Systematic -valuation
(t is a systematic evaluation of an individual ith respect to performance on the job and
individual's potential for development.
Definition 2: 6ormal System, "easons and )easures of future performance
(t is formal" structured system of measuring" evaluating job related behaviors and
outcomes to discover reasons of performance and ho to perform effectively in future so
that employee" organization and society all benefits.
Me&nin' of $efo"&n)e A%%&i#&!#
3erformance 5ppraisals is the assessment of individual's performance in a systematic ay.
(t is a developmental tool used for all round development of the employee and the
organization. $he performance is measured against such factors as job #noledge" quality
and quantity of output" initiative" leadership abilities" supervision" dependability" co*
operation" judgment" versatility and health. 5ssessment should be confined to past as ell
as potential performance also. $he second definition is more focused on behaviors as a part
of assessment because behaviors do affect job results.
$efo"&n)e A%%&i#&!# &n6 .o, An&!*#i# Re!&tion#8i%
4ob 5nalysis 3erformance !tandards 3erformance 5ppraisals
)escribe the or# and
personnel requirement of
a particular job.
$ranslate job requirements
into levels of acceptable or
unacceptable performance
)escribe the job relevant
strengths and ea#nesses
of each individual.
O,0e)ti1e# of $efo"&n)e A%%&i#&!#
U#e of $efo"&n)e A%%&i#&!#
+. 3romotions
,. >onfirmations
-. $raining and )evelopment
.. >ompensation revies
7. >ompetency building
8. (mprove communication
1. :valuation of HR 3rograms
9. /eedbac# 6 Crievances
: Go&!# of $efo"&n)e A%%&i#&!#
Ceneral Coals !pecific Coals
:2
)evelopmental @se (ndividual needs
3erformance feedbac#
$ransfers and 3lacements
!trengths and )evelopment needs
5dministrative )ecisions G @ses !alary
3romotion
Retention G $ermination
Recognition
2ay offs
3oor 3erformers identification
&rganizational Maintenance HR 3lanning
$raining Heeds
&rganizational Coal achievements
Coal (dentification
HR !ystems :valuation
Reinforcement of organizational needs
)ocumentation Lalidation Research
/or HR )ecisions
2egal Requirements
$efo"&n)e A%%&i#&! $o)e##
+. &bjectives definition of appraisal
,. 4ob e<pectations establishment
-. )esign an appraisal program
.. 5ppraise the performance
7. 3erformance (ntervies
8. @se data for appropriate purposes
1. (dentify opportunities variables
9. @sing social processes" physical processes" human and computer assistance
Diffeen)e ,et9een T&6ition&! &n6 Mo6en (S*#te"#) &%%o&)8 to A%%&i#&!#
#ategories %raditional Appraisals )odern, Systems
Appraisals
Cuiding Lalues (ndividualistic" >ontrol
oriented" )ocumentary
!ystematic"
)evelopmental" 3roblem
solving
2eadership !tyles )irectional" :valuative /acilitative" >oaching
/requency &ccasional /requent
/ormalities High 2o
Reards (ndividualistic Crouped" &rganizational
TECHNIHUES E METHODS OF $ERFORMANCE A$$RAISA5S
Humerous methods have been devised to measure the quantity and quality of performance
appraisals. :ach of the methods is effective for some purposes for some organizations only.
Hone should be dismissed or accepted as appropriate e<cept as they relate to the particular
needs of the organization or an employee.
0roadly all methods of appraisals can be divided into to different categories.
3ast &riented Methods
/uture &riented Methods
$&#t Oiente6 Met8o6#
:3
+. R&tin' S)&!e#: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability" initiative" output" attendance" attitude
etc. :ach scales ranges from e<cellent to poor. $he total numerical scores are computed
and final conclusions are derived. 5dvantages % 5daptability" easy to use" lo cost" every
type of job can be evaluated" large number of employees covered" no formal training
required. )isadvantages % Rater's biases
,. C8e)7!i#t: @nder this method" chec#list of statements of traits of employee in the form
of Pes or Ho based questions is prepared. Here the rater only does the reporting or
chec#ing and HR department does the actual evaluation. 5dvantages % economy" ease of
administration" limited training required" standardization. )isadvantages % Raters biases"
use of improper eighs by HR" does not allo rater to give relative ratings
-. Fo)e6 C8oi)e Met8o6: $he series of statements arranged in the bloc#s of to or
more are given and the rater indicates hich statement is true or false. $he rater is forced
to ma#e a choice. HR department does actual assessment. 5dvantages % 5bsence of
personal biases because of forced choice. )isadvantages % !tatements may be rongly
framed.
.. Fo)e6 Di#ti,+tion Met8o6: here employees are clustered around a high point on a
rating scale. Rater is compelled to distribute the employees on all points on the scale. (t is
assumed that the performance is conformed to normal distribution. 5dvantages %
:liminates )isadvantages % 5ssumption of normal distribution" unrealistic" errors of central
tendency.
7. Citi)&! In)i6ent# Met8o6: $he approach is focused on certain critical behaviors of
employee that ma#es all the difference in the performance. !upervisors as and hen they
occur record such incidents. 5dvantages % :valuations are based on actual job behaviors"
ratings are supported by descriptions" feedbac# is easy" reduces recency biases" chances of
subordinate improvement are high. )isadvantages % Hegative incidents can be prioritized"
forgetting incidents" overly close supervision; feedbac# may be too much and may appear
to be punishment.
8. -e8&1io&!!* An)8oe6 R&tin' S)&!e#: statements of effective and ineffective
behaviors determine the points. $hey are said to be behaviorally anchored. $he rater is
supposed to say" hich behavior describes the employee performance. 5dvantages % helps
overcome rating errors. )isadvantages % !uffers from distortions inherent in most rating
techniques.
1. Fie!6 Re1ie9 Met8o6: $his is an appraisal done by someone outside employees' on
department usually from corporate or HR department. 5dvantages % @seful for managerial
level promotions" hen comparable information is needed" )isadvantages % &utsider is
generally not familiar ith employees or# environment" &bservation of actual behaviors
not possible.
9. $efo"&n)e Te#t# ( O,#e1&tion#: $his is based on the test of #noledge or s#ills.
$he tests may be ritten or an actual presentation of s#ills. $ests must be reliable and
validated to be useful. 5dvantage % $ests may be apt to measure potential more than
actual performance. )isadvantages % $ests may suffer if costs of test development or
administration are high.
;. Confi6enti&! Re)o6#: Mostly used by government departments" hoever its
application in industry is not ruled out. Here the report is given in the form of 5nnual
>onfidentiality Report A5>RB and may record ratings ith respect to folloing items;
attendance" self e<pression" team or#" leadership" initiative" technical ability" reasoning
ability" originality and resourcefulness etc. $he system is highly secretive and confidential.
::
/eedbac# to the assessee is given only in case of an adverse entry. )isadvantage is that it
is highly subjective and ratings can be manipulated because the evaluations are lin#ed to
HR actions li#e promotions etc.
+=. E##&* Met8o6: (n this method the rater rites don the employee description in detail
ithin a number of broad categories li#e" overall impression of performance" promoteability
of employee" e<isting capabilities and qualifications of performing jobs" strengths and
ea#nesses and training needs of the employee. 5dvantage % (t is e<tremely useful in filing
information gaps about the employees that often occur in a better*structured chec#list.
)isadvantages % (t its highly dependent upon the riting s#ills of rater and most of them
are not good riters. $hey may get confused success depends on the memory poer of
raters.

++. Co#t A))o+ntin' Met8o6: Here performance is evaluated from the monetary returns
yields to his or her organization. >ost to #eep employee" and benefit the organization
derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
+,. Co"%&&ti1e E1&!+&tion Met8o6 (R&n7in' ( $&ie6 Co"%&i#on#): $hese are
collection of different methods that compare performance ith that of other co*or#ers.
$he usual techniques used may be ran#ing methods and paired comparison method.
Ran+ing Met*ods: !uperior ran#s his or#er based on merit" from best to
orst. Hoever ho best and hy best are not elaborated in this method. (t is easy to
administer and e<planation.
&aired )omparison Met*ods: (n this method each employee is rated ith
another employee in the form of pairs. $he number of comparisons may be calculated ith
the help of a formula as under.
H < AH*+B G ,
F+t+e Oiente6 Met8o6#
+. M&n&'e"ent -* O,0e)ti1e#: (t means management by objectives and the
performance is rated against the achievement of objectives stated by the management.
M0& process goes as under.
:stablish goals and desired outcomes for each subordinate
!etting performance standards
>omparison of actual goals ith goals attained by the employee
:stablish ne goals and ne strategies for goals not achieved in previous year.
5dvantage % (t is more useful for managerial positions.
)isadvantages % Hot applicable to all jobs" allocation of merit pay may result in setting
short*term goals rather than important and long*term goals etc.
,. $#*)8o!o'i)&! A%%&i#&!#: $hese appraisals are more directed to assess employees
potential for future performance rather than the past one. (t is done in the form of in*depth
intervies" psychological tests" and discussion ith supervisors and revie of other
evaluations. (t is more focused on employees emotional" intellectual" and motivational and
other personal characteristics affecting his performance. $his approach is slo and costly
and may be useful for bright young members ho may have considerable potential.
Hoever quality of these appraisals largely depend upon the s#ills of psychologists ho
perform the evaluation.

-. A##e##"ent Cente#: $his technique as first developed in @!5 and @Q in +;.-. 5n
assessment center is a central location here managers may come together to have their
participation in job related e<ercises evaluated by trained observers. (t is more focused on
observation of behaviors across a series of select e<ercises or or# samples. 5ssessees are
requested to participate in in*bas#et e<ercises" or# groups" computer simulations" role
:=
playing and other similar activities hich require same attributes for successful
performance in actual job. $he characteristics assessed in assessment center can be
assertiveness" persuasive ability" communicating ability" planning and organizational ability"
self confidence" resistance to stress" energy level" decision ma#ing" sensitivity to feelings"
administrative ability" creativity and mental alertness etc. )isadvantages % >osts of
employees traveling and lodging" psychologists" ratings strongly influenced by assessee's
inter*personal s#ills. !olid performers may feel suffocated in simulated situations. $hose
ho are not selected for this also may get affected.
A61&nt&'e# % ell*conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. 5lso reliability" content validity
and predictive ability are said to be high in assessment centers. $he tests also ma#e sure
that the rong people are not hired or promoted. /inally it clearly defines the criteria for
selection and promotion.
.. 3?D-De'ee Fee6,&)7: (t is a technique hich is systematic collection of performance
data on an individual group" derived from a number of sta#eholders li#e immediate
supervisors" team members" customers" peers and self. (n fact anyone ho has useful
information on ho an employee does a job may be one of the appraisers. $his technique is
highly useful in terms of broader perspective" greater self*development and multi*source
feedbac# is useful. -8=*degree appraisals are useful to measure inter*personal s#ills"
customer satisfaction and team building s#ills. Hoever on the negative side" receiving
feedbac# from multiple sources can be intimidating" threatening etc. Multiple raters may be
less adept at providing balanced and objective feedbac#.
Et8i)# of $efo"&n)e A%%&i#&!# E 5e'&!!* 6efen#i,!e $efo"&n)e A%%&i#&!#
Et8i)# of $o)e6+e#
+. /ormal !tandardized 3erformance 5ppraisal !ystems
,. @niform to all employees" no illegal differentiations based on cast" religion etc.
-. !tandards formally communicated to all employees
.. /reedom to revie performance appraisal results
7. /ormal appeal process about ratings and judgments
8. ?ritten instructions and training to raters
1. 5ll personal decision ma#ers should be aare of anti*discrimination las.
Et8i)# of Content#
+. >ontent based on job analysis
,. $raits based appraisals should be avoided
-. &bjectively verifiable data should be used
.. >onstraints on performance beyond control should be prevented
7. !pecific job related dimensions to be used rather than single or global dimensions.
8. )imensions must be assigned eight to reflect relative importance in performance score
Et8i)# of Do)+"ent&tion of Re#+!t#
+. 5 thoroughly ritten record of evidence leading to termination should be maintained
,. ?ritten documentation of e<treme ratings should be maintained
-. )ocumentation should be consistent among the raters.
Et8i)# of R&te#
+. $he raters should be trained in ho to use an appraisal system
,. $he rater must have opportunity to observe ratees first hand and revie important
ratee performance products.
:?
-. @se of more than one rater is desirable to reduce biases.
O'&ni2&tion&! S+%%ot F&)to# fo $efo"&n)e A%%&i#&! S*#te"#
3erformance appraisal serves many organizational objectives and goals. 0esides
encouraging high level of performance" the evaluation system is useful in identifying
employees ith potential" rearding them equitably" and determining employee needs for
development. 5ll these activities are instrumental in achieving corporate plans and long*
term groth" typical appraisal system in most organizations have been focused on short*
term goals only.
/rom the strategic management point of vies" organizations can be grouped under -
different categories as defenders" prospectors and analyzers.
Defen6e#: $hey have narro and stable product mar#et domain. $hey don't need to
ma#e any adjustment in technology" structure or methods of operations etc. $hey devote
entire attention on improving e<isting operations. 0ecause of emphasis on s#ill building
successful defenders use appraisals as means for identifying training needs. (t is more
behavior oriented.
$o#%e)to#: $hey continuously search for ne products and opportunities. $hey
e<periment regularly to ne and emerging trends. $hey more focus on s#ills identification
and acquisition of human resources from e<ternal sources prospectors often use appraisals
for identifying staffing needs. $he focus is on results.
An&!*2e#: $hey operate in to type of product domain mar#ets. &ne is stable and other is
changing. $hey atch their competitors closely and rapidly adopt the ideas that are
promising. $hey use cost effective technologies for stable products and matri< technologies
for ne products. 5nalyzers tend to emphasize on s#ills building and s#ills acquisitions and
employ e<tensive training programs. Hence they use appraisal more for training and
staffing purposes.
Hoever performance appraisal systems has strategic importance in three different ays.
Fee6,&)7 Me)8&ni#": 3erformance evaluation is the central mechanism that not only
provides feedbac# to individuals but also aids in the assessment of the progress of
organization as a hole. ?ithout appraisals managers of any firm can only guess as to
hether or not employees are or#ing toards realization of the organization goals.
Con#i#ten)* ,et9een #t&te'* &n6 0o, ,e8&1io: 3erformance appraisal not only is a
means of #noing if the employee behavior is consistent ith the overall strategies focus
but also a ay of bringing to the fore any negative consequence of the strategy % behavior
fit. $hus the performance appraisal system is an important mechanism to elicit feedbac# on
the consistency of the strategy % behavior lin#.
Con#i#ten)* ,et9een /&!+e# &n6 .o, -e8&1io !in7: 3erformance evaluation is a
mechanism to reinforce values and culture of the organization. 5nother importance is to
align appraisal ith organizational culture.
$hus the purpose of performance evaluation is to ma#e sure that employee's goals"
employees behavior and feedbac# of information about performance are all lin#ed to the
corporate strategy.
E##enti&!# of & Goo6 $efo"&n)e A%%&i#&! S*#te":
+. !tandardized 3erformance 5ppraisal !ystem
,. @niformity of appraisals
-. )efined performance standards
.. $rained Raters
7. @se of relevant rating tools or methods
8. !hould be based on job analysis
1. @se of objectively verifiable data
9. 5void rating problems li#e halo effect" central tendency" leniency" severity etc.
:4
;. >onsistent )ocumentations maintained
+=. Ho room for discrimination based on cast" creed" race" religion" region etc.
$o,!e"# of R&tin':
+. 2eniency 6 !everity
,. >entral $endency
-. Halo :rror
.. Rater :ffect
7. 3rimacy 6 Recency :ffect
8. 3erceptual !ets
1. 3erformance )imensions &rder
9. !pillover :ffects
;. !tatus :ffect
INCENTI/ES -ASED COM$ENSATION
(ncentives are monetary benefits paid to or#men in recognition of their outstanding
performance. $hey are defined as variable reards granted according to variations in the
achievement of specific results.
A61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion#
+. (ncentives are important for inducement and motivation of or#ers for higher
efficiency and greater output.
,. :mployee earnings go up
-. :nhanced standard of livings of employees
.. Reduction in total unit cost of production"
7. 3roductivity increases.
8. 3roduction capacity is also li#ely to increase
1. Reduced supervision
Di#&61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion
+. $endency of quality of products deteriorated due to increased output and lo cost
,. :mployees may oppose introduction of ne machines
-. ?or#ers demand for minimum age limit may go up due to high incentive earnings
.. !ometimes employees may disregard security regulations due to payment by results
approach adopted for higher incentive figures
7. &veror#ing may affect employee health
8. :mployee jealousies ith respect to high and lo performers
HUMAN RESOURCE AUDIT
N&t+e of HR A+6it
HR 5udit is a tool for evaluating the personnel activities of an organization. $he audit may
include one division or entire company. (t gives feedbac# about HR functions to operating
managers and HR specialists. (t also shos ho ell managers are meeting HR duties.
(n short HR audit is an overall control chec# on HR activities in a division or a company and
evaluation of ho these activities support organization's strategy.
-&#i# of HR A+6it
($e#onne! Re#e&)8)
+. ?age !urveys
:@
,. Recruitment !ources effectiveness
-. $raining efforts effectiveness
.. !upervisor's effectiveness
7. (ndustrial settlements
8. 4ob 5nalysis
1. 4ob !atisfaction !urvey
9. :mployee needs survey
;. 5ttitude !urveys
+=. High accident frequency surveys
-enefit# of HR A+6it
+. (dentification of contributions of HR department
,. (mprovement of professional image of HR department
-. :ncouragement of greater responsibility and professionalism among HR members
.. >larification of HR duties and responsibilities
7. !timulation of uniformity of HR policies and practices
8. /inding critical personnel problems
1. :nsuring timely compliance ith legal requirements
9. Reduction of HR costs through more effective personnel procedures
;. >reation of increased acceptance of changes in HR department
+=. 5 thorough revie of HR information systems
S)o%e &n6 T*%e# of HR A+6it
HR 5udit must cover the activities of the department and e<tend beyond because the
people problems are not confined to HR department alone. 0ased on this HR audit can be
spread across folloing four different categories.
Human Resource /unction 5udit
Managerial >ompliance 5udit
Human Resource >limate 5udit
:mployee $urnover
5bsenteeism
5ccidents
5ttitude !urveys
HR * >orporate !trategy 5udit
A%%o&)8e# to HR A+6it
+. >omparative 5pproach A0enchmar#ing ith another companyB
,. &utside 5uthority 5pproach A&utside consultants' standardsB
-. !tatistical 5pproach A!tatistical measures and toolsB
.. >ompliance 5pproach A2egal and company policiesB
7. Management 0y &bjectives 5pproach ACoals 6 &bjectives basedB
MOTI/ATION THEORIES
3erformance is a function of ability and motivation. 3 N f A5 < MB
Definition 1: #hoices among voluntary activities
:C
5 process governing choices made by persons or loer organisms among alternative forms
of voluntary activity
Definition 2: Arouse enthusiasm to pursue
5 result of internal and e<ternal processes to the individual that arouse enthusiasm and
persistence to pursue a certain course of action
Definition 3: Need that activates behavior
5 process that starts ith a physiological deficiency or need that activates behavior or a
drive that is aimed at a goal or an incentive.
Me&nin' of Moti1&tion
Motivation is a set of forces that cause people to behave in certain ays.
Moti1&tion $o)e## (? Ste%#)
+. (ndividual Heeds
,. !earch for ays to satisfy needs
-. Coal 6 &bjectives directed
.. (ncreased performance
7. Receiving reards or punishment
8. Reassessment of needs
Citi)&!it* of Moti1&tion to M&n&'e#
I"%ot&n)e of Moti1&tion
Motivation helps employees find ne ays of doing a job
Motivation ma#es employees quality conscious
Motivation increases productivity very high
Motivation stimulates both participation and production at or#
Motivation comprehends jobs related behaviors
Motivation increases attention toards human resources along ith physical resources
C8&!!en'e# of Moti1&tion
)iverse and changing or#force
Rightsizing" )onsizing" Hire*n*/ire" 3ay*for*3erformance strategies
Motives can only be inferred" not seen
)ynamic nature of human needs
O,0e)ti1e# of Moti1&tion
High productivity
(ncrease quality consciousness
!timulate participation at or#
T8eoie# of Moti1&tion
E&!* T8eoie#
S)ientifi) M&n&'e"ent: Motivation by scientific management is associated ith /.?.
$aylor's techniques of scientific management. $aylor said that people are primarily
motivated by economic reards and ill ta#e direction if offered an opportunity to improve
their economic positions. 0ased on this $aylor described folloing arguments
3hysical or# could be scientifically studied to determine optimal method of
=D
performance of a job
?or#ers could be more efficient by telling them ho they ere to do a job
?or#ers ould accept the above prescription if paid on differentiated pieceor#
basis
)isadvantages % )ehumanized or#ers" treated them as mere factors of production"
only stressed on monetary needs" ignored human needs
H+"&n Re!&tion# Mo6e!: :lton Mayo's human relations model stressed on social contacts
as motivational factor. Creater importance as given to informal groups. Hoever too
much reliance on social contacts to improve productivity as a major drabac#.
Conte"%o&* T8eoie#
Content T8eoie# AMaslo's Heed Hierarchy" Herzberg's ,*factors" 5lderfer's :RC"
5chievement Motivation $heoryB
$o)e## T8eoie# ALroom's e<pectancy" 5dam's :quity" 3orter's 3erformance and
!atisfaction ModelB
Reinfo)e"ent )&te'oie#
ERG T8eo* (A!6efe): E3i#ten)e Re!&te6ne## Go9t8
:RC theory emphasizes more on three broad needs that is e<istence" relatedness and
groth. (ts hypothesis is that there may be more than one need operating at the same
time. :RC theory further states that hen a higher level need is frustrating" the individual's
desire to increase loer level needs ta#es place. $hus :RC theory contains frustration*
regression dimension. /rustration at higher level need may lead to regression at loer level
need.
A61&nt&'e# % More consistent ith our #noledge of differences among people" it is less
restrictive and limiting" it is a valid version of need hierarchy.
Di#&61&nt&'e# % Ho clear*cut guideline of individual behavior patterns" too early to pass a
judgment on the overall validity of the theory.
T9o-F&)to T8eo* (He2,e')
/redric# Herzberg states that the motivation concept is generally driven by to factors of
motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are
generally achievement" recognition" the or# itself" responsibility" advancement and
groth" hich are related to job satisfaction. Hygiene factors deal ith e<ternal factors li#e
company policy" supervision" administration and or#ing conditions" salary" status" security
and interpersonal relations. $hese factors are #non as hygiene factors or job dissatisfiers"
job conte<t factors.
A61&nt&'e# % tremendous impact on stimulating thought on motivation at or#" increased
understanding of role of motivation" specific attention to improve motivational levels" job
design technique of job enrichment is contribution of herzberg" double dimensions of to
factors are easy to interpret and understand.
Di#&61&nt&'e# % 2imited by its methodology" reliability questioned" it focuses more on job
satisfaction not on motivation" no overall measure of satisfaction utilized" inconsistent ith
previous research" productivity factor ignored.
MORA5E
Definition 1: )ental condition, attitude, willingness
Morale is a mental condition or attitude of individual and groups" hich determines their
illingness to co*operate.
=1
Definition 2: Attitudes, voluntary cooperation
Morale is attitudes of individuals and groups toards their or# environment and toards
voluntary cooperation to the full e<tent of their ability in the best possible interest of the
organization.
)istinction beteen Morale and MotivationE *
Mo&!e Moti1&tion
+. >omposite of feelings" attitudes and
sentiments that contribute toards general
satisfaction at or#place.
,. 5 /unction of freedom or restraint
toards some goal.
-. (t mobilizes sentiments.
.. Morale reflects Motivation.
+. Motivation moves person to action.
,. 5 3rocess of stimulating individuals
into action to accomplish desired goals.
-. 5 /unction of drives and needs.
.. (t mobilizes energy.
7. Motivation is a potential to develop
morale.
I"%ot&n)e of Mo&!e &# & Re#%on#i,i!it* of M&n&'e"ent
O'&ni2&tion C!i"&te: Morale is an important part of organization climate.
Attit+6e# ( Senti"ent#: Morale reflects attitudes and sentiments toards
organization goals and objectives.
$o6+)ti1it*: Morale highly affects productivity and satisfaction of individuals.
Tot&! S&ti#f&)tion: Morale is total satisfaction derived from employees job" boss and
his organization.
5&,o $o,!e"# So!1e6: High morale assists managers to overcome several labor
problems li#e labor turnover" absenteeism" indiscipline" grievances" disharmony etc.
Coo%e&tion: Morale helps to see# cooperation from the or#ers in getting higher
production at minimum possible cost by reducing astages of time" man" machines and
materials.
$o6+)tion ( $o6+)ti1it*: 3roduction and productivity are directly affected by high
morale in a positive manner.
$ERSONNE5 $O5ICIES
Me&nin' of $e#onne! $o!i)*
5 3olicy is a 3lan of 5ction. (t is a statement of intentions committing the management to a
general course of action. 5 3olicy may contain philosophy and principles as ell. Hoever a
policy statement is more specific and commits the management to a definite course of
action.
Hence 3ersonnel policy is a plan of action to be implemented by HR department toards the
organization and employees. 5 personnel policy spells out basic needs of the employees.
$hrough personnel policy the personnel department ensure a consistent treatment to all
personnel by minimizing favoritism and discrimination. 3ersonnel policy serves as a
standard of performance for all employees. !ound personnel policies help build employee
motivation and loyalty. 5nd this happens hen personnel policies reflect fair play and
justice and help people gro ithin the organization. 3ersonnel policies are also plans of
action to resolve intra*personal" inter*personal and inter*group conflicts.
I"%ot&n)e of $e#onne! $o!i)*
3ersonnel policy is very important for an organization since it gives several benefits for
managing your human resources effectively. (n the light of these benefits listed belo e
ould be able to understand the relative importance of 3ersonnel policy.
=2
-&#i) Nee6#: 3ersonnel policy helps the management to thin# deeply about basic
needs of organization and the employees.
Con#i#tent Te&t"ent: 3ersonnel policies ensure consistent treatment of all
personnel throughout the organization.
Mini"i2e F&1oiti#": 3ersonnel policies help minimize favoritism and discrimination
Contin+o+# &)tionE 3ersonnel policies ensure continuous action even if top
management is changed. $hese policies promote stability.
St&n6&6 of $efo"&n)e: 3ersonnel policies serve as a standard of performance.
Moti1&tion ( 5o*&!t*: 3ersonnel policies help build employee motivation and loyalty.
F&i $!&* ( .+#ti)e: 3ersonnel policies reflect established principles of fair play and
justice.
Go9t8: 3ersonnel policies help people gro ithin the organization.
;ORIERSM $ARTICI$ATION IN MANAGEMENT
0roadly" or#er's participation in management means associating representatives of
or#ers at every stage of decision*ma#ing. 3articipative management is considered as a
process by hich the or#er's share in decision*ma#ing e<tends beyond the decisions that
are implicit in the specific content of the jobs they do. $his amounts to the or#ers having
a share in the reaching of final managerial decisions in an enterprise.
Definition 1: Association of 2or'ers in decision4ma'ing process
?or#ers' participation may be ta#en to cover all terms of association of or#ers and their
representatives ith the decision*ma#ing process" ranging from e<change of information"
consultations" decisions and negotiations to more institutionalized forms such as the
presence of the or#ers' members on management or supervisory boards or even
management by or#ers themselves.
S)o%e of 9o7e#M %&ti)i%&tion
!cope of or#ers participation ranges over three managerial decision*ma#ing stages.
So)i&! De)i#ion#: Hours of or#" elfare measures" or# rules" safety" health" sanitation
and noise control.
$e#onne! De)i#ion#: Recruitment and selection" promotions and transfers" grievance
settlements" or# distribution
E)ono"i) De)i#ion#: Methods of manufacturing" automation" lay offs" shut*dons"
mergers and acquisitions and other financial aspects.
Met8o6# of ;o7e#M $&ti)i%&tion in M&n&'e"ent
+. 0oard 2evel
,. &nership
-. >omplete >ontrol
.. !taff >ouncils
7. 4oint >ouncils
8. >ollective 0argaining
1. 4ob :nlargement and :nrichment
9. !uggestion !chemes
;. Iuality >ircles
+=. :mpoered $eams
++. $otal Iuality Management
+,. /inancial 3articipation
$eeF+i#ite# of S+))e##f+! $&ti)i%&tion
=3
+. >learly defined and complementary &bjectives
,. /ree flo of information and communication
-. Representatives of or#ers from or#ers themselves
.. &utside trade union participation should be avoided
7. ?or#ers' education and training
8. Ho threat by participation
1. 5ssociation at all levels of decision*ma#ing
-enefit# of $&ti)i%&tion
+. Cives identity to an employee
,. Motivates employee
-. !elf*esteem" job satisfaction and cooperation improves
.. Reduced conflicts and stress
7. More commitment to goals
8. 2ess resistance to change
1. 2ess labor problems
9. 0etter quality suggestions e<pected
UNIONS
:mployee associations are popularly #non as unions. Hoever these unions are not
confined to only stri#es and negotiations. $heir role is much ider than this. @nions ma#e
their presence felt in recruitment and selection" promotions" training" termination or lay off.
Many programs" hich contribute to the Iuality of ?or# 2ife AI?2B and productivity" are
underta#en by management in consultation ith and ith the cooperation of the unions.
@nions also participate in deciding age and salary structure and negotiate revisions once
in - or 7 years.
$rade unions are voluntary organizations of or#ers or employers formed to promote their
interests through collective action. $rade unions 5ct +;,8 defines a trade union as a
combination" hether temporary or permanent formed primarily for the purpose of
regulating the relation beteen
+B ?or#men and :mployers
,B ?or#men and ?or#men
-B :mployers and :mployers
/or imposing restrictive conditions on the conduct of any trade or business and includes any
federation of to or more trade unions
;8* 6o e"%!o*ee# 0oin T&6e Union#A
$o protect themselves against e<ploitation by management
0y force
)issatisfaction
2ac# of 3oer
@nion (nstrumentality
RO5E OF CONSTRUCTI/E AND $OSITI/E UNION
@nions have a crucial role to play in (ndustrial Relations. @nions have folloing broad role
or objectives as mentioned belo.
$o redress the bargaining advantage of the individual or#er vis*R*vis the individual
employer" by substituting joint or collective action for individual action.
$o secure improved terms and conditions of employment for its members and the
ma<imum degree of security to enjoy these terms and conditions.
$o obtain improved status for the or#er in his or# or her or#
$o increase the e<tent to hich unions can e<ercise democratic control over
decisions" hich affect their interests by poer sharing at the national" corporate
and plant levels.
=:
$he union poer is e<erted primarily at to levels. (ndustry level to establish joint
regulation on basic ages and hours ith an employer's association. 3lant level" here the
shop steards organizations e<ercise joint control over some aspects of the organization of
or# and localized terms and conditions of employment.
@nions are party to national" local and plant level agreements" hich govern their actions to
a greater or lesser e<tent" depending on their poer and on local circumstances.
UNFAIR 5A-OR $RACTICES
(ndustrial )isputes 5ct +;.1 specifies the folloing as unfair labor practices
$o interfere" restrain" coerce or#men in the e<ercise of their right to organize"
form" join or assist a trade union.
$hreatening or#men ith discharge or dismissal
$hreatening of loc#out or closure
Cranting age increases to undermine trade union efforts
$o dominate" interfere ith or support financially or socially by ta#ing active interest
in forming on trade union" and
!hoing partiality or granting favor to one of several trade unions to a non*
recognized trade union
$o establish employer sponsored trade unions
$o encourage or discourage memberships in any trade union by discriminating
or#man by punishing or discharging" changing seniority ratings" refuse promotions"
giving unmerited promotions" discharging union office bearers
$o discharge or dismiss or#men by victimizing" not in good faith" implicating in
criminal case" for patently false reasons
$o abolish or# of a regular nature
$o transfer or#men
$o sho favoritism or partiality
$o replace or#ers
$o recruit or#men during legal stri#es
$o indulge in acts of violence or force
$o refuse collective bargaining
3roposing and continuing loc#outs
ORGANINATIONA5 DO;NSINING
)onsizing necessarily means reducing or# force to an optimal level depending upon the
business conditions and organizational needs. (t is said that an organization should be
rightly staffed ie. (t should not be overstaffed and or understaffed. $here are broadly
folloing method used to donsize the or#force as mentioned belo.
Reten)8"ent:
(t means termination of service. (t is a termination for reasons other than disciplinary
actions" retirement or superannuating" e<piry and termination of contract or prolonged
illness. Retrenchment compensation and notice for retrenchment are only pre*conditions for
retrenchment and not a right" hich a retrenched or#er can claim. (f notice and
compensation are not given" the or#er ill not be called as retrenched. >ompensation is
payable for +7 days ages for every completed year of service besides one month's notice
or pay in lieu of notice. 0ut employee should have completed at least one year of complete
service in order to receive compensation.
5&* Off#
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2ay of is inability of the employer to provide employment to or#ers due to circumstances
beyond his control such as shortage of poer" coal" brea#don of machinery" natural
calamity etc. (t is not a termination of service. 2ay off compensation can be claimed as a
statutory right by the or#er if he has completed one year of continuous service or has
or#ed for ,.= days on the surface or +;= days underground in +, calendar months.
>ompensation payable is half of the ages.
/o!+nt&* Retie"ent S)8e"e#
LR! are announced hen there is a huge pool of old aged manpoer occupying senior
positions amounting to surplus. Many organizations are providing liberal incentives to leave
before age of superannuating. LR! in other ords is a retirement before the age of
retirement.
MEANING OF ORGANINATION STRUCTURE
&rganizational structure is the formal decision*ma#ing frameor# by hich job tas#s are
divided" grouped" and coordinated. /ormalization is an important aspect of structure. (t is
the e<tent to hich the units of the organization are e<plicitly defined and its policies"
procedures" and goals are clearly stated. (t is the official organizational structure conceived
and built by top management. $he formal organization can be seen and represented in
chart form. 5n organization chart displays the organizational structure and shos job titles"
lines of authority" and relationships beteen departments.
O'&ni#&tion C8&t#:
$he organization charts are the sample and an understandable ay shoing the formal
organization structure*(t gives a clear overvie of the shape and structure of an
organization.
(t is an order and the design of an organization captured in a visual form.
(t is a blue print or a basis for proper conceptualization" further thin#ing" a discussion board
for further modifications ithout affecting the actual changes.
$he organization chart ell dran" can give an insight in to the organization" its hierarchical
structure line and staff authority" authority and responsibility levels" chain of command" line
of delegated authority" decentralization or otherise in an organization" span of control etc.
(t also helps and guides the management in evolving changes ith the changes in the
environment and for faster realization of goals.
(t is a good guide for the ne recruits in their initiation in the organization and in
understanding the authority responsibility levels including his on.
Fo"&! O'&ni#&tion
$he intentional structure of roles in a formally organised enterprise is a formal organisation
(t should have an attribute of fle<ibility" room for discretion and the recognition of individual
talents and the capacities. (n a group functioning the individual effort ill have to be
chanelize through the group leader and has to be for the organization's good.
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Info"&! St+)t+e
$he informal organization is the netor#" unrelated to the firmFs formal authority structure"
of social interactions among its employees. (t is the personal and social relationships that
arise spontaneously as people associate ith one another in the or# environment. $he
supervisor must realize that the informal organization affects the formal organization. $he
informal organization can pressure group members to conform to the e<pectations of the
informal group that conflict ith those of the formal organization. $his can result in the
generation of false information or rumors and resistance to change desired by
management. $he supervisor should recognize the e<istence of information groups" identify
the roles member play ithin these groups" and use #noledge of the groups to or#
effectively ith them. $he informal organization can ma#e the formal organization more
effective by providing support to management" stability to the environment" and useful
communication channels.
M&ti3 St+)t+e
(n a matri< organization" teams are formed and team members report to to or more
managers. M&ti3 #t+)t+e# utilize functional and divisional chains of command
simultaneously in the same part of the organization" commonly for one*of*a*#ind projects.
(t is used to develop a ne product" to ensure the continuing success of a product to hich
several departments directly contribute" and to solve a difficult problem. 0y superimposing
a project structure upon the functional structure" a matri< organization is formed that
allos the organization to ta#e advantage of ne opportunities. $his structure assigns
specialists from different functional departments to or# on one or more projects being led
by project managers. $he matri< concept facilitates or#ing on concurrent projects by
creating a dual chain of command" the project Aprogram" systems" or productB manager
and the functional manager. 3roject managers have authority over activities geared toard
achieving organizational goals hile functional managers have authority over promotion
decisions and performance revies. 5n e<ample is an aerospace firm ith a contract from
H5!5.
Di1i#ion&! St+)t+e
(n a 6i1i#ion&! o'&ni2&tion" corporate divisions operate as relatively autonomous
businesses under the larger corporate umbrella. (n a conglomerate organization" divisions
may be unrelated. )ivisional structures are made up of self*contained strategic business
units that each produces a single product. /or e<ample" Ceneral MotorsF divisions include
>hevrolet" &ldsmobile" 3ontiac" and >adillac. 5 central headquarters" focusing or results"
coordinates and controls the activities" and provides support services beteen divisions.
/unctional departments accomplish division goals. 5 ea#ness hoever" is the tendency to
duplicate activities among divisions.
O'&ni) St+)t+e
&n the other hand" the organic structure is more fle<ible" more adaptable to a participative
form of management" and less concerned ith a clearly defined structure. $he organic
organization is open to the environment in order to capitalize upon ne opportunities.
&rganic organizations have a flat structure ith only one or to levels of management. F!&t
o'&ni2&tion# emphasize a decentralized approach to management that encourage high
employee involvement in decisions. $he purpose of this structure is to create independent
small businesses or enterprises that can rapidly respond to customersF needs or changes in
the business environment. $he supervisor tends to have a more personal relationship ith
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his or her employees.
F+n)tion&! St+)t+e
/unctions or divisions arrange traditional organizations. (n a f+n)tion&! o'&ni2&tion"
authority is determined by the relationships beteen group functions and activities.
/unctional structures group similar or related occupational specialties or processes together
under the familiar headings of finance" manufacturing" mar#eting" accounts receivable"
research" surgery" and photo finishing. :conomy is achieved through specialization.
Hoever" the organization ris#s losing sight of its overall interests as different departments
pursue their on goals.
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