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HUMAN RESOURCE
MANAGEMENT
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal

Personnel,
Manpower,
Human Resources
and human resource Development
 The big difference
between these terms

Why Human Factor is More

Important?
• Human resources are unique in character
• HR alone can produce an output greater
than its input
• HR is the only resource which are

animate
• HR is most complex and unpredictable in
its behavior
• This is the only resource which

appreciates in its value with the passage

of time.
 Meaning and Definition
• NIPM – CALCUTTA" Personnel
Management is that part of the
management function which is
primarily concerned with human
relationships within in organization.
Its objective is the maintenance of
those relationships on a basis
which, by consideration of the well-
being of the individual, enables all
those engaged in the undertaking
to make their maximum personal
contribution in the effective
working of the undertaking.”
Edwin B Flippo “The personnel
function is concerned with the
procurement, development,
compensation, integration and
maintenance of the personnel of
an organization for the purpose of
contributing towards the
 accomplishment of that
organization’s major goals or
objectives. Therefore, personnel
management is the planning,
organizing, directing, and
controlling of the performance of
those operatives functions”.
Difference between
Personnel Management
and Human Resource
Management
• Take Home Compulsory
Assignment.
Objectives and scope
of HRM
• To effective utilization of the human
resources
• To establish and maintain an
organizational structure
• To secure integration to the individuals
and organization by reconciling
individual group goals
• To generates maximum development of
individuals groups
• To recognize and satisfy individual needs
and group goals
• To maintain high morale and better

human relations
• To develop and maintain a quality of
work life
• To establish and maintain productive self-
respecting working relationships
Features of HRM
•Comprehensive Function
•People-Oriented
•Action Oriented
•Individual Oriented
•Development Oriented
•Pervasive Function
•Continuous Function
•Interdisciplinary
•Nervous system.
•Young discipline
•Future-oriented
•Challenging Function
•Science as well an Art
•Staff function
Functions of HRM
• I. Managerial Functions:
• a. Planning
• b. Organizing
• C. Directing
• d. Controlling.

• II. Operative Functions:

• a. Procurement

• b. Development
• c. Compensation
• d. Integration
• e. Maintenance
What Is Strategic
Management?
• Strategic Management
• The ongoing process
companies use to form a
vision, analyze their external
environment and their
internal environment, and
select one or more strategies
 to use to create value for
customers and other
stakeholders, especially
shareholders
• Vision
• Contains at least two
components—a mission that
describes the firm’s DNA and
the “picture” of the firm as it
hopes to exist in a future
time period.
Parts of Strategic
Management
•Strategy
•An action plan designed to
move an organization
toward achievement of its
vision
•Mission
•Defines the firm’s core
intent and the business or
businesses in which it
intends to operate
The Strategic
Environment
•Internal
Environment
•The set of conditions (such
as strengths, resources and
capabilities, and so forth)
inside the firm affecting
the choice and use of
strategies
 •External
Environment
•A set of conditions
outside the firm that
affect the firm’s
performance
Key Characteristics of
Strategic Management
• Strategic management is:
• Performance oriented
• Ongoing in nature
• Dynamic rather than static
• Oriented to the present and the
future
• Concerned with conditions both
outside and inside the firm
• Concerned with performing well
and satisfying stakeholders
The Three Parts of the
Strategic
Management Process
• Strategic leaders form a firm’s
vision and mission.
• Firms analyze their external
environment and their internal
environment.
• Firms choose and implement a

strategy that to creates unique

mix of value for customers and
satisfies other stakeholders.
• Strategy implementation—

the set of actions firms take

to use a strategy after it has
been selected.
 Vision and Mission
Statements
• Vision Statements
• McDonald’s

To give each customer, every time, an

experience that sets new standards in value,
service, friendliness, and quality.
• NASDAQ

To build the world’s first truly global

securities market . . . A worldwide market of
markets built on a worldwide network of
networks . . . linking pools of liquidity and
connecting investors from all over the world
. . . assuring the best possible price for
securities at the lowest possible cost.
• Petsmart

To be the premier organization in nurturing

and enriching the bond between people and
animals.
• Wachovia

Wachovia’s vision is to be the best, most

 trusted and admired financial services
company.
Mission statements
contd…
• Mission Statements
• Bristol-Myers Squibb

Our mission is to extend and

enhance human life by
providing the highest-quality
pharmaceuticals and health
care products.
• GlaxoSmithKline

GSK’s mission is to improve the

quality of human life by
enabling people to do more,
feel better and live longer.
• Merck

The mission of Merck is to

provide society with superior
products and services by
 developing innovations and
solutions that improve the
quality of life and satisfy
customer needs, and to provide
employees with meaningful
work and advancement
opportunities, and investors
with a superior rate of return.
• Wipro
The mission is to be a full-
service, global outsourcing
company.
HUMAN RESOURCE
PLANNING
• Definition: It is the process by which
management determines how an
organisation should move from its current
manpower position to its desired manpower
position. Through it management strives to
have the right number and the right kind of
people at the right places, at the right time,
 doing things which result in both the
organisation, and the individual receiving,
maximum long-rang benefit”
Objectives of HRP
•To ensure optimum use of
existing HR
•To forecast future
requirements for HR
•To provide control measures
•To link HRP with
Organisational Planning
•To determine levels of
Recruitment and Training
•To estimate cost of Hr and
Housing needs of Employees
•To provide a basis for MDP
•To facilitate productivity
Bargaining
•To meet the needs of
Expansion and
Diversification programmes
•To assess shortage and
surplus of Hr
Need and Importance of
HRP
• To carry on its work and to achieve
its objectives
• HRP identifies gaps
• There is need to replace employees
• HRP facilitates expansion and
growth
 • HRP helpful in effective utilization
of
HR and Technology
• HRP is useful in anticipating Cost of
HR which facilitates budgeting
easier
• HRP facilitates Career and
succession planning
• HRP helps in planning for physical
facilities like canteen staff quarters
etc
Why HRP gained so much
focus in recent times…
•Employment situation
•Technological Changes
•Organizational Changes
•Demographic Changes
•Lead time
•Hiring costs
•Increased Mobility
•Shortage of Skills
•Legislative Controls
•Pressure Groups
•Systems Concepts
Process of HRP
•1. Analyzing
Organizational Plans
•2. Forecasting Demand
for HR
•3. Forecasting supply
of HR
•4. Estimating
Manpower Gaps
•5. Action Planning
•6. Monitoring and
Control
Assignments
•1.What are the challenges
of HR Executives in the
present day business
scenario?
•2. State essential qualities of
Successful HR Manager?
 •3. Draw an organizational
chart of an MNC known to
you and state whether HR
function line or Staff
function.
Further Readings
•1. Human Resource
Management –
Dr. C.B. Gupta – Sultan Chand
& Sons Pub.
•2. Human Resource
Management – S.S. Khanka –
S. Chand Pub.
• Personnel Management &
Industrial Relations – P.C.
Tripathi Himalaya Pub.
HUMAN RESOURCE
MANAGEMENT
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal
 Job Analysis
•Job analysis is a formal and
detailed study of jobs
•It refers to a scientific and
systematic analysis of a job
in order to obtain all pertinent
facts about the job
•It is essentially a process of
collecting and analyzing all
pertinent data relating to a
job

Objectives of Job Analysis

•Job Redesign
•Work Standards
•Recruitment
•Selection
•Training
•Performance appraisal
•Job evaluation
•Safety

Benefits of Job Analysis

•1. Organizational Design
•2. Human Resource
Planning
•3. Recruitment and
Selection
•4. Placement and
Orientation
•5. Training and
Development

•6. Performance Appraisal

•7. Career Path planning
•8. Job Design
•9. Job Evaluation
•10 Labour Relation
•11. Employee Counselling
•12. Health and Safety
The process of Job
Analysis
•1. Organisational Analysis
•2. Organising Job Analysis
Programme
•3. Deciding the uses of Job
Analysis Information
•4. Selecting Representative
Jobs for analysis
•5. Understand Job Design
•6. Collection of Data
•7. Developing a Job
Description
•8. Preparing a Job
Specification
Techniques of Job
Analysis
•1. Job Performance
•2. Personal Observation
•3. Interview
•4. Questionnaire
•5. Critical Incidents
•6. Log Records
Differentiate between
Job Description and
Job Specification
• Job Description is a functional description of
what the job entails. And define the purpose
and scope of a job. It is a written record it
contains title, location, duties,
responsibilities, working conditions, hazards
and relationship with other jobs.

• Job specification is a statement of the

minimum acceptable human qualities
required for the proper performance of a job.
• It includes physical, mental, social,
psychological and behavioral characteristics
of a person
Job Evaluation
• According to BIM, Job
evaluation is “the process of
 analysis and assessment of
jobs to ascertain reliably their
relative worth using the
assessment as the basis for a
balanced wage structure”
•Job evaluation begins with
job analysis and ends up with
the classification of jobs
according to their worth. A
job cannot be evaluated
unless and until it is
analyzed.
Objectives of Job evaluation
•1. To Determine equitable
wage differentials between
 different jobs in the
organization
•2. To eliminate wage
inequities
•3.To develop a consistent
wage policy
•4. To provide a framework
for periodic review and
revision of wages
•5. To provide a basis for
wage negotiations
•6. To enable management
to gauge and control the
payroll costs
•7. To minimize wage
descriptions on the basis of
age, sex, caste, region,
religion , creed etc
Methods of Job
Evaluation
•Job Evaluation can be
classified in to two
categories
•1. Non-quantitative
methods:
•a. Ranking or Job
Comparison
•b. Grading or Job
Classification
•2. Quantitative methods:
•a. Point Rating
•B. Factor Comparison
Recruitment
•What is Recruitment?
•What is Procurement?
•The Difference Between
Recruitment and Selection
and Placement.
•Why Recruitment is more
important for an
organization?
•How not to recruit
employees in the
organization?
•General Factors affecting
Recruitment:
The sources of
Recruitment
•Internal Sources
•1. Transfers
•2. Promotions
• External Sources
• 1. Press Advertisements
• 2. Educational Institutions
• 3.Placement Agencies
• 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Recruitment at Factory gate
 • 9. Online
Recruitment Process
• Steps in Recruitment Process:
• 1. Requisitions for recruitment
from other department
• 2. Locating and Developing the
sources of Required number
and type of employees
• 3. Identifying the prospective
employees with required
characteristics
• 4. Communicating the
information about the
organization, the job and the
terms of conditions of service.
• 5. Encourage the identified
candidates to apply for jobs
In the organization.
• 6. Evaluating the effectiveness
of recruitment process.
 What is Selection?
• Selection is the process of choosing the
most suitable persons out of all the
applicants.
• Selection is a process of matching the
qualifications of applicants with the job
requirements.
• It is the process of weeding out unsuitable

candidates and finally identify the most

suitable candidate.
• The purpose of Selection is to pick up the
right person for every job.
• Selection is negative process as it rejects a
large number of unsuitable applicants
from the pool.
Methods of Selection
• (a) Tests:
• 1. Aptitude Tests:
• Mental or Intelligence test
• Mechanical test
• Psycho-motor test
 • 2. Achievement Tests:
- Job Knowledge test
- Work sample test

•3. Personality Tests:

•Objective test
•Projective test
•Situation test
•4. Interest Tests:
• Continued…
Methods of Selection
(continued)
(b) Interviews
•Informal Interview
•Formal Interview
•Patterned or Structured
Interview
•Non-Directed or
Unstructured Interview
•Depth Interview
•Group Interview
•Stress Interview
•Panel or Board Interview
Selection Process…
•1. Preliminary Interview
•2. Application Blank
•3. Selection Test
•4. Employment Interview
•5.Medical Examination
•6.Reference Checks
•7. Final Approval
Induction/Orientation
•Definition: “Orientation or
induction is the process of
receiving and welcoming an
employee when he first joins
a company and giving in the
basic information he needs to
settle down quickly and
happily and start work”.
•Objectives and Advantages
of an Induction programme.
 Advantages and
Objectives of an
Orientation programme
• Objectives:
• 1. To help the new come to overcome his
shyness
• To build new employee’s confidence
• To develop the new entrants a sense of
belonging and loyalty
• To foster a close and cordial
relationship…
• To prevent false impression and negative
attitude of the new employees
• To give the new comers necessary
information like canteen, locker room.
Rest periods and leave rules etc…

• Advantages:
• It helps to build two way communication
• It facilitates informal relations and team
work
• Induction is helpful in supplying

information about the organisation, job,

and welfare of employees
• Proper Induction will reduce employees

grievances, absenteeism and labour

turnover
• Induction helps to develop good public
relations and improve the overall morale
of employees
• An Induction programme proves that the

company is taking a sincere interest in

getting him off to a good start
Contents of an Induction
programme:
• Brief history and operations of the company.
• Products and services of the company.
• The company’s organization structure.
• Location of departments and employee
facilities.
• Policies and procedures of the company.
 • Rules, regulations and daily work routines.
• Grievance procedures.
• Safety measures
• Standing orders and disciplinary procedures
• Terms and conditions of service including
wages, working hours, over time, holidays
etc.
• Suggestion schemes
• Benefits and services for employees.
• Opportunities for training and promotions
transfers etc.
Employer Investment on People
A country can develop only
•

when its human resources

are developed through health,
nutrition, education, training
and research. At the
Organisational level,
 employee training and
executive development are
main areas of human
resource development.
•The subtle differences
between Training,
Development and Education
Why Training is needed?
•To familiarize the employee
with the company’s culture
•To increase the employee’s
quantity and quality of
output
•To enable the employee to
do new jobs and prevent of
 his old skills become
obsolete
•To prepare the employee
for promotion to higher
jobs
•To reduce supervision,
wastage and accidents
•To build second line
workers
Importance of Training
•1. Higher productivity
•2. Better quality of
work
•3. Less learning period
•4. Cost Reduction
•5. Reduced supervision
•6. Low accident rate
•7. High morale
•8. Personal Growth
•9. Organizational
Climate
Steps in Training Programme
•1. Identifying Training
Needs- Present Performance
– Desired Performance
(Accepted Level of
Performance)
•2. Setting Training
Objectives and Policy
•3.Designing Training
Programme
•4. Conducting the Training
•5. Follow up and Evaluation
Assignments
•1. State essential qualities of
Successful Recruitment
Advertisement. And also
state how will you spell out
Job specification and job
description briefly in the
AD itself.
2. How will you carry out
training need analysis for a
medium sized organization?
3. If you are HR Executive of
an MNC, How will you retain
employees in your
organization?
Further Readings
• 1. Human Resource
Management –
Dr. C.B. Gupta – Sultan Chand
& Sons Pub
• 2. Human Resource
Management – S.S. Khanka –
S. Chand Pub
• 3.Personnel Management &
Industrial Relations – P.C.
Tripathi Himalaya Pub
• 4. Personnel Management –
C.B Mamoria Vikas Pub.
HUMAN RESOURCE
MANAGEMENT
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal
 PROMOTION
• Promotion refers to
advancement of an employee
to a higher post carrying
greater responsibilities,
higher status and better
salary. It is the upward
movement of an employee in
the organization's hierarchy,
to another job commanding
greater authority, higher
status and better working
standards.
 Transfer
A transfer refers to a
horizontal or lateral
movement of an employee
from one job to another in
the same organization
without any significant
changes status and pay. It
has been defined as “
lateral shift causing
movement of individuals
 from one position to
another usually without
involving any marked
change in duties,
responsibilities, skills
needed or compensation”
Need and purpose of Transfers
•1. To meet organizational
needs
•2. To satisfy employee Needs
•3. To better utilization of
Employees
•4. To make the Employee
More versatile
•5. To adjust the work force
•6. To provide Relief
•7. To Punish Employees
Types of Transfers
•1. Production Transfer
•2. Replacement Transfer
•3. Versatility Transfer
•4. Remedial Transfer
•5. Shift Transfer
Demotion
•Demotion implies the
assignment of an employee
to a job of lower rank with
lower pay. It refers to
downward movement pf an
 employee in the
organizational hierarchy
with lower status and lower
salary.
•It is downgrading process
and a serious type of
Punishment, hence it
should be used tactfully and
only when it is absolutely
necessary.
Need for Demotion:
Why and When
•1. Adverse Business
Conditions
•2. Incompetence
•3. Technological Change
•4. Disciplinary Measure.
Seperations
•Separation of an employee
takes place when his service
agreement with the
organisation come to an end
and the employee the
organisation. It may occur
due to resignation, death,
dismissal and layoff.
Following are various forms
of separations.
• Resignation Retirement
Layoff Retrenchment Di
smissal
Wage and Salary
Administration (WASA)
• Objectives of WASA:
• 1. To establish a fair and
equitable remuneration
• 2. To attract competent
personnel
• 3. To retain the present
employees
• 4. To improve productivity
• 5. To control Costs
• 6. To improve union
management relations
• 7. To improve the public image
of the company
 Essentials of sound wage
and Salary structure
•1. Internal Equity
•2.External Competitiveness
•3. Built in incentive
•4. Link with productivity
•5. Maintain Real Wages
•6. Increments
General and Individual
Factors affecting Wages
• General Factors
• 1. Demand for and Supply of labour

• 2. Ability to pay of the Organization

• 3. Labour Unions

• 4. Cost of Living
• 5. Prevailing wage rates
• 6. Job Requirements
• 7. Productivity
• 8. State Regulation

• Individual Factors
• 1. Employee’s Age and work Experience
• 2. Educational Qualification
• 3. Promotion possibilities
• 4.Hazards involved in the job
• 5. Stability of Employment
• 6.Demand for the product
• 7.Industry’s role in the economy
• 8.Potentials of an employee
Methods of Wage
Payment
•1. Time Wage system
•2. Piece Wage system
 Assignments
•1.What are the Precautions
a manager should have
while go for Demotion of an
employee?
•2. Determining Wage
structure is a cumbersome
process and it requires lot
more knowledge and
thinking- discuss
•3. If you are an owner of
the production unit of a
retail product which
method would you adopt
for payment of wages?
 Further Readings
• 1. Human Resource
Management – Saiyadin -
TMH Pub.
• 2. Human Resource
Management – Dr. C.B.
Gupta Sultan Chand and sons
Pub.
• Personnel Management &
Industrial Relations – P.C.
Tripathi Himalaya Pub.
HUMAN RESOURCE
MANAGEMENT
• Unit – IV
• Bachelor of Business Administration
• V Semester
• Non – CBCS Syllabus of Madurai
Kamaraj University
• S. Vivekanantha,
• Faculty Member, School of Business
Studies and Application, Kodaikanal
Christian College,
• Kodaikanal

Industrial Relations
•Industrial Relations are
exercises in organizational
 relations between functional
interest groups.
• According to ILO, IR
comprise relationships
between the State on the one
hand and the employers’ and
organizations on the other
and the occupational
organizations themselves.
• It means Collective
relationship between
management, employees and
government in any industrial
or non-industrial organization
Objectives and Importance of
IR
• To Develop and maintain harmonious
relationship between management and
labour
• To safeguard the interests of labour

• To establish and maintain industrial

Democracy
• To avoid all form of industrial conflict so
as to ensure industrial peace
• To raise productivity and reduce high

labour turnover
• To bring about Government control over
such industrial units
• To ensure a healthy and balanced social

order through recognition of human

rights by way of trade unionism
Causes and Effects of
poor Industrial Relations
• Economic Causes
• Organizational Causes
• Psychological Causes
• Social Causes
• Political Causes

•Multiplier Effects
•Fall in normal Tempo
•Resistance to Change
•Frustration and Social cost
Remedies to Improve
Industrial Relations
•General Guidelines:
•1. Sound personnel polices
•2.Constructive Attitudes
•3. Collective Bargaining
•4. Participative
Management
•5. Responsible Unions
•6. Employee Welfare
•7. Effective Grievance
Procedure
Remedies to Improve
Industrial Relations
•Specific Guidelines:
• Both Management and Union should
Develop trust and positive attitude
towards each other.
• All basic policies and procedures Relating

to Industrial Relations should be clear to

every body in the organization and the
Union Leaders
• The personnel manager should remove
any distrust by convincing the union of
the company’s integrity and his own
sincerity and Honesty.
• Management should encourage right kind
of Union Leadership
• After the settlement is reached should be
properly administered.
Meaning and Definition
of Grievances
•Broadly speaking Grievance
means any real or imaginary
feeling of dissatisfaction and
 injustice which an employee
has about his employment
relationship.
• According to Michael J
Jucious, “ a grievance is any
discontent or dissatisfaction,
whether expressed or not,
whether valid or not, arising
out of anything connected
with the company that an
employee thinks, believes or
even feels, is unfair,unjust or
inequitable”
Causes of Grievances
•1. Grievances arising out of
Working Conditions
•2. Grievances arising from
Management policy
•3. Grievances arising from
Alleged violation of certain
statutes…
•4. Grievances arising out of
Personal Maladjustment
Understanding
Employee Grievances
•1. Exit Interview
•2. Opinion Surveys
•3. Gripe Boxes
•4. Open Door Policy
• Effects of Grievances
• 1. Indiscipline
• Low morale and decreased productivity
• High Absenteeism and turnover
• Loss of faith in management
• Increase in accidents
• Formation of cliques
• Lowering of public image of the
organization
Standard Grievance
Procedure (ILC)
• Follow only standard
procedure ( a voluntary
Grievance procedure) in
pursuance to the Code of
th
Discipline adopted in the 16
 session Indian Labour
Conference in 1958. It
contains Five successive time
bound steps each leading to
the next in case the aggrieved
employee prefers an appeal.
Essentials of Sound Grievance
Procedure
•1. Legal Sanctity
•2. Acceptability
•3. Promptness
•4. Simplicity
•5. Training
•6.Follow-up
Assignments
•How Political parties
influence industrial relations
Sean in India? How will you
alleviate political influence in
the Industry?
•2. Rust is the worst foe of
Iron similarly Frustration
is the worst opponent of
human being. Do you agree.
Highlight the evil effects of
Grievances on ordinary
Industrial worker.
•3. Draw a suitable
grievance redress
procedure for a medium
 sized manufacturing
organisation.
Further Readings
•1. Human Resource
Management –
Dr. C.B. Gupta – Sultan Chand
& Sons Pub.
•2. Industrial Relations by
Arun Monappa
TMH- pub.
•3. Personnel Management &
Industrial Relations – P.C.
Tripathi Himalaya Pub.
HUMAN RESOURCE
MANAGEMENT
• Unit – V
• Bachelor of Business Administration
• V Semester
• Non – CBCS Syllabus of Madurai

Kamaraj University

• S. Vivekanantha,
• Faculty Member, School of Business
Studies and Application,
• Kodaikanal Christian College,

• Kodaikanal
Meaning and Definition of
Performance Appraisal
• Performance appraisal or performance
evaluation is the process of assessing the
performance and progress of an employee or
of a group of employees on a given job and
his potential for future development.
• According to Flippo, “ Performance

appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence
in matters pertaining to his present job and
his potential for a better job”
• Difference between Merit-rating and
Performance Appraisal
• Present appraisal systems in practice- 360
degree…
The process of Performance
Appraisal
•1. Establishing Performance
Standards
•2. Communicating the
Standards
•3. Measuring Performance
•4. Comparing the actual
standards with the Standards
•5. Discussing the Appraisal
•6. Taking Corrective Actions
Methods of Performance
Appraisal
• Traditional Methods:
• 1. Confidential Report
• 2. Free Form or Essay
• 3. Straight Ranking
• 4. Paired Comparisons
• 5. Forced Distribution
• 6. Graphic Rating Scales
• 7. Checklist Method
• 8. Critical Incidents
• 9. Group Appraisal
• 10. Field Review

•Modern Methods:
•1. Assessment Centre
•2. Human Resource
Accounting
•3. Behaviorally Anchored
Rating Scales
•4. Appraisal through MBO.
 Essentials of an Effective
Appraisal System
1. Mutual Trust
2.Clear Objectives
3.Standardisation
4.Training
5.Job Relatedness

6.Documentation
7. Feedback and Participation
8. Individual differences
9. Post appraisal Interview
10. Review and Appeal
 Workers’ Participation in
Management
•According Keith Davis
Participation refers to “the
mental and emotional
involvement of a person in a
group situation which
encourages him to contribute
to group goals and share in
the responsibility of
achieving them”
•It is a process by which
authority and responsibility
of managing industry are
shared with workers
 •In Yugoslavia it is called
self-management
•In Germany it is known as
Co-determination
In the words of Mehtras, “ the
concept of participation as a
principle of democratic
administration in an industry
implies a share by rank and file
in the decision-making process
of an industrial organization
through their representatives at
all the appropriate levels of
management in the entire range
of managerial action”
 Objectives of Workers
participation in management
1. Economic objective
2. Social Objective
3. Psychological Objective
•1. Democratic right to
influence the managerial
decisions
•2. Raise worker’ level of
motivation and
commitment
•3.Cross-fertilisation and
speedy communication of
ideas
•Foster better co-operation
between labour and
management.
Importance of Workers’
Participation in Management
•Mutual Understanding
•Higher Productivity
•Industrial Harmony
•Industrial Democracy
•Less Resistance to change
•Creativity and Innovation
Levels/Degrees of
Participation
•Communication
•Consultation
•Codetermination
•Self-Management
Forms of Workers’
Participation in Management
•Suggestion Scheme
•Works committees
•Joint Management
Councils
•Worker Directors
•Co-Partnership
Assignments
•1. Why Workers Participation
in management is a desperate
failure in India? Suggest
 some measures for making
participation successful.
•2. Write an essay on 360
degree Performance
appraisal system which
prevails in the most
successful Organizations.
•3. “Performance appraisals
are mere paper tigers, if
you wish to grab incentive
please your boss” – Pass a
Critical comment on it.
Further Readings
• 1. Human Resource
Management – Saiyadin -
TMH Pub.
• 2. Human Resource
Management – Dr. C.B.
Gupta Sultan Chand and sons
Pub.
• Personnel Management &
Industrial Relations – P.C.
Tripathi Himalaya Pub.