Professional Documents
Culture Documents
PREFACE
The text of the Human Resource Management has been written with the basic
objective of introducing and familiarizing students with Human Resource
managements concepts that help them develop their knowledge base and
understand various facets of HRM. This book covers important concepts and
information that begins with introducing the subject in the module-1 followed by
Module II in which functions of HR Department are elaborated that makes one
understand how an employee is selected in an organization by throwing light upon
fundamentals of recruitment and selection which also covers areas such as Job
Analysis, Job description, Job specification, Recruitment, Selection, Placement and
Induction and socialization, Training and Development Training Process &
Methodology Need and objectives Training Procedure Methods of Training
Tools and Aids Evolution of training Programs.
Module III , IV and V discuss various functions of Human Resource Department
such as Compensation, Maintenance Integration and Audit & Control. This book
discusses various contemporary issues of HR department by focusing on Job
evaluation, Merit rating, Methods of wage payment, Incentive Compensation
Types, Advantages, perquisites, Wage Policy in India - Minimum Wage, Fair
Wage, Living Wage .
The Human Resource Management is an ever evolving field and this book alludes
various concepts of this field such that students are able to relate to the basics
concepts of HRM and get an insight on the role of an HR manager and diverse
activities involved in this discipline.
INTRODUCTION
HRM Objective
Supporting Functions
1. Societal Objectives
1. Legal compliance
2. Benefits
3. Union Management Relations
2. Organizational Objectives
1. Human Resource Planning
2. Employee Relations
3. Selection
4. Training and development
5. Appraisal
6. Placement
7. Assessment
3. Functional Objectives
2. Placement
3. Assessment
1. Appraisal
4. Personal Objectives
1. Training and development
2. Appraisal
3. Placement
4. Compensation
5. Assessment
1.6 THE SEMANTICS
As in any discipline, there is the problem of semantics in HRM, too. First, we have
two terms, namely, personnel management (PM) and HRM. Between these two
terms is a basic difference, and it is useful as to what it is.
HRM differs from PM both in scope and orientation. HRM views people as an
important source or asset to be used for the benefit of organization, employees and
the society. It is emerging as a distinct philosophy of management aiming at
policies that promote mutuality mutual goals, mutual respect, mutual rewards and
mutual responsibilities. The belief is that policies of mutuality will elicit
commitment which, in turn, will yield both better economic performance and
Production
Manager
Sales Manager
Office Manager
Accountant
Personnel
Assistant
Director
Production
Director Finance
Director
Personnel/HRM
Director Marketing
Director R&D
Manager
Personnel
Human Resource
Planning
Manager
Administration
Manager HRD
Appraisal
PR
Hiring
Canteen
Grivance Handling
Medical
Compensation
Welfare
Manager IR
Traning and
Development
Transport
Legal
1.10 Quiz
Complete all the review questions listed here to test your
understanding of the topics and concepts in this chapter
1.
a)
b)
c)
d)
CHAPTER-2- JOB
SPECIFICATION
ANALYSIS,
JOB
DESCRIPTION
AND
JOB
Job identification
Nature of the job
Operations involved in doing the job
Materials and equipments to be used in doing the job
Personal attributes required to do the job e.g. education, traing, physical
strength and mental capabilities etc.
6. Relation with other jobs.
This information relating to a job which is thus classified , if examined carefully,
would suggest that some information relates to the job and some concerns the the
individual doing the job. The requirements of a job are known as Job Description
and the qualities demaned from the job holder are termed as Job Specification.
7.
a)
b)
c)
d)
3.1 RECRUITMENT
The human resources are the most important assets of an organization. The
success or failure of an organization is largely dependent on the caliber of the
people working therein. Without positive and creative contributions from people,
organizations cannot progress and prosper. In order to achieve the goals or the
activities of an organization, therefore, they need to recruit people with requisite
skills, qualifications and experience. While doing so, they have to keep the present
as well as the future requirements of the organization in mind.
Recruitment is distinct from Employment and Selection. Once the required
number and kind of human resources are determined, the management has to find
the places where the required human resources are/will be available and also find
the means of attracting them towards the organization before selecting suitable
candidates for jobs. All this process is generally known as recruitment. Some
people use the term Recruitment for employment. These two are not one and the
same. Recruitment is only one of the steps in the entire employment process. Some
others use the term recruitment for selection. These are not the same either.
Technically speaking, the function of recruitment precedes the selection function
and it includes only finding, developing the sources of prospective employees and
attracting them to apply for jobs in an organization, whereas the selection is the
process of finding out the most suitable candidate to the job out of the candidates
attracted (i.e., recruited).Formal definition of recruitment would give clear cut idea
about the function of recruitment.
B. EMPLOYEE REFERRALS
This can be good sources of internal recruitment. Employee can develop good
prospects for their families and friends by acquainting them with the company,
furnishing cards of introduction, and even encouraging them to apply. There are
some potential negative factors associated with employee referrals. They include
the possibility of inbreeding, manifesting in groups of people quitting one firm and
joining another. They carry with them the cultural practices of the previous firm.
They from cliques of their own, demand unacceptable privileges and often threaten
to quit if demand are not met.
C. FORMER EMPLOYEES
Former employee is also an internal source of applicants. Some retired employee
may be willing to come back to work on apart time basis or may recommend
someone who would be interested in working for the company. An advantage with
the sources is that the performance of these people is already known
D. PREVIOUS APPLICANTS
Although not truly an internal source, those who have previously applied for job
can be contacted by mail, a quick and inexpensive way to fill an unexpected
opening. Although walk ins are likely to be more suitable for filling unskilled
and semi- skilled jobs, some professional opening can be filled by applicants to
previous jobs.
EXTERNAL SOURCES
External sources lie outside an organization. Here the organization can have the
services of : (a) Employees working in other organizations; (b) Jobs aspirants
registered with employment exchanges; (c) Students from reputed educational
institutions; (d) Candidates referred by unions, friends, relatives and existing
employees; (e) Candidates forwarded by search firms and contractors; (f)
Candidates responding to the advertisements, issued by the organization; and (g)
Unsolicited applications/ walk-ins.
E. EMPLOYMENT EXCHANGES
Employment exchanges have been set up all over the country in the deference to
the provision of the employment exchange Act. 1959. The Act applies to all
industrial establishments having 25 workers or more each. The Act requires the
entire industrial establishment to notify the vacancies before they are filled. The
major functions of the exchange are to increases the pool of the possible applicants
and to do preliminary screening. Thus employment exchanges act as a link
between the employers and the prospective employees. These offices are
particularly useful in recruiting blue- collar, white- collar, and technical workers
F. CAMPUS RECRUITMENT
Collage, university, research laboratories, sports field and institute are fertile
ground for recruiters, particularly the institutes. The Indian institute of
management and the Indian institute of technology are on the top on list of avenues
I. CONTRACTORS
Contractors are used to recruit casual workers. The names of the workers are not
entered in the company record and, to this extent, difficulties experienced in
maintaining permanent workers are avoided.
L. UNSOLICITES APPLICATNS/WALK-INS
Companies generally receive unsolicited applications from job seekers at
various points of time; the number of such applications depends on economic
conditions, the image of the company and the job seekers perception of the types
of jobs that might be available etc. Such applications are generally kept in a data
bank and whenever a suitable vacancy arises, the company would intimate the
candidates to apply through a formal channel. One important problem with this
method is that job seekers generally apply to number of organizations and when
they are actually required by the organizations, either they are already employed
in other organizations or are not simply interested in the position.
OUTSOURCING
The outsourcing firms help the organization by the initial screening of the
candidates according to the needs of the organization and creating a suitable pool
of talent for the final selection by the organization. Outsourcing firms develop their
human resource pool by employing people for them and make available personnel
to various companies as per their needs.
POACHING/RAIDING
E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E- Recruitment is
the use of technology to assist the recruitment process
The two kinds of e- recruitment that an organization can use is
o Job portals i.e. posting the position with the job description and the
job specification on the job portal and also searching for the suitable
resumes posted on the site corresponding to the opening in the
organization.
o Creating a complete online recruitment/application section in the
companies own website
HCL Technologies
Demerits
Merits
Demerits
Preliminary interview
Receiving applications or application blanks
Screening of application
Employment tests
Interview
Reference checking
Medical examination
Final Selection
The successive stages in the selection process are discussed below:
1.Preliminary Interview
b.
c.
d.
Employment tests are widely used for judging the applicants suitability
for the job.
5.EMPLOYMENT INTERVIEW
Employment tests provide a lot of valuable information about the
candidate. Interview is a formal, in-depth conversation conducted to
evaluate the applicants acceptability.
An interview can be defined as a selection procedure designed to predict
future job performance on the basis of applicants oral response to oral
inquiries or, as a purposeful exchange of ideas, the answering of
questions and communication between two or more persons
The main purposes of an employment interview are:
e) STRESS INTERVIEW
The purpose of this interview is to put the candidate in an
uncomfortable situation to see his/her ability to handle stress.
f) PANEL INTERVIEW
In this method, the applicant is interviewed by more than one
interviewer. A panel of two or more interviewers is formed to
interview the candidate. The interviewers are generally drawn from
different fields. The marks awarded by all the interviewers are finally
consolidated into a panel score.
6. CHECKING REFRENCES
A reference is potentially an important source of information about a
candidates ability and personality if he holds a responsible position in
some organization or has been the boss or employer of the candidate. Prior
to final selection, the prospective employer normally makes an
investigation or the reference supplied by the applicant and undertakes
more or less through search into the candidates past employment,
education, personal reputation, financial condition etc.
7. MEDICAL EXAMINATION
The pre employment physical examination or medical test of a candidate
is an important step in the selection process.
8. FINAL SELECTION AND APPOINTMENT LETTER
The next step in the selection process is job offer to those applicants who
have crossed all the previous hurdles. Job offer is made through a letter of
appointment. Such a letter generally contains a date by which appointee
must report on duty.
3.3QUIZ
Complete all the review questions listed here to test your understanding of
the topics and concepts in this chapter
Recruitment agencies
Campus recruitment
Advertisements
Employment exchanges
10.
4.2 SOCIALISATION
Socialization is the process of introducing or integrating the new employees into
the organizational culture. In simpler terms, it is the process by which the new
employees learn the organizational culture.
1. Anticipatory socialization
This is the first stage in the socialization process but is normally completed
even before the actual entry of the employees into the organization .It refers to
the values, attitude and other behaviors already acquired by the new employees
before their entry into the organization. The organization attempts to find out
these behaviors of the employees through the selection process.
2. Organizational socialization
4.3 PLACEMENT
Placement is the process of finding an appropriate fit between the people and the
positions in an organization. It is actually the determination of the job which an
accepted candidate is to be assigned to, and his assignment to that job. When the
organization chooses an exact number of candidates for the specific vacancies
available in the organization, placement is simple and easy.
Once the employees complete the stipulated orientation the next step is his
placement in the job. Based on the employees work performance and behaviour in
the orientation programme, organizations choose not only the appropriate jobs but
also the appropriate supervisors for placing the employees
On many occasions, organization utilizes the orientation programmed for
identifying the behaviour, knowledge and attitude of the new employees. This
information is then used to choose the appropriate placement for the employees.
NATURE OF JOB:
Nature of job can also cause problems in placements. The organization should
consider many factors before placing employee in these jobs. For instance, the
skills of socializations and leadership should also be taken into considerations to
determine the match between the job and the employees.
LEVEL OF ADAPTABILITY:
4.4 QUIZ
Complete all the review questions listed here to test your understanding of
the topics and concepts in this chapter
1. When an employee joins an organization he has to adapt to the new work
culture, work activities, co-workers and boss, etc. This process of adaptation
is known as
.
a) Employment
b) Recruitment
c) Placement
d) Induction
2. The process of induction is also known as
a) Introduction
b) Orientation
c) Adaptation
d) Probation
3. Which of the following is not true about the process of socialization?
a) Socialization has an influence on employee performance
b) Proper implementation of the socialization process ensures
organizational stability
c) Socialization is the sole responsibility the HR department and the
immediate supervisor
d) Socialization ensures that a new employee fits well into the
organization
4. Different parties need to be involved in the process of socialization, if it is to
proceed smoothly. These include
a) Co-workers
b) Supervisors
5. Methods of Training
6. Management Development
5.1 INTRODUCTION
Training is, essentially, a value-addition activity undertaken by an organization to
enrich the value of its core assets, namely, its people. It plays a vital role in
enhancing the efficiency, productivity and performance of the employees. It is a
learning process that helps employees acquire new knowledge and the skills
required to perform their present jobs efficiently. Rapid technological
developments and the resultant changes in the production process have compelled
the management of various companies to treat training as a continuous process of
the organization. Training typically comprises predetermined programmes to
achieve the desired performance efficiency at various levels-individual, group and
organizational. In simple terms, training is all about making a difference between
where the worker stands at present and where he will be after some point of time.
Training is usually a short-term skill development exercise meant for nonmanagerial employees either to learn a job or to overcome their deficiency in the
performance of the present job. The success of any training programme lies in
recognizing the training needs within the organization and then designing and
implementing training programme based on those needs in order to carry out a
continuous up gradation of knowledge, skills and employee attitudes. In fact,
sustained training efforts by an organization usually lead to the creation of a highly
competent and motivated workforce that is all set to take on the challenges of
performance and productivity. Undeniably, organizations can think of achieving
success in the globalized market only when they can ensure that their employees
perform to their fullest potential.
Training is the creation of an environment where employees may acquire or learn
specific, job related behavior, knowledge, skills, abilities and attitudes.
-Terry L. Leap
F
e
e
d
b
a
c
k
1. Classroom Lectures
It is a verbal lecture presentation by an instructor to a large audience. This
method of training uses the trainers oratory skills to provide knowledge and
skills to the employees through intensive study materials. It involves
programmed instruction material, which is to be learned, is presented in
small, sequential steps with self instruction.
Communication is primarily one way: from the instructor to the learner. It
provides a great deal of information quickly to a large group of trainees.
However this method is least effective for retaining and applying information
and the trainees looses attention easily.
2. Audio-Visual
It can be done using Films, Televisions, Video, and Presentations etc. The
advantage of this method are wide range of realistic examples, quality is
control possible. One-way communication, No feedback mechanism and
No flexibility for different audience are the disadvantages of this method.
3. Simulation
Creating a real life situation for decision-making and understanding the
actual job conditions. Trainees participate in a reality-based, interactive
activity where they imitate actions required on the job. It is useful for skill
development. Following are some of the simulation methods of trainings
1. Case Studies: It is a written description of an actual situation and
trainer is supposed to analyze and give his conclusions in writing.
The cases are generally based on actual organizational situations.
Its a story with a practical message. The trainees recommend
solutions based on the content provided. It works well with any size
group. It is an ideal method to promote decision-making abilities
within the constraints of limited data.
2. Role Plays: Here trainees assume the part of the specific
personalities in a case study and enact it in front of the audience.
Trainees can learn possible results of certain behaviors in a
classroom situation. It is more emotional orientation and improves
interpersonal relationships. Attitudinal change is another result.
These are generally used in MDP.
5.6 DEVELOPMENT
An organizations conscious effort to provide its manager (and potential
managers) with opportunities to learn ,grow and change, in hopes of producing
over the long term cadre of managers with the skills necessary to function
effectively in that organization.
(DeSimone et al: 2002)
Management development is the process by which managers acquire not only
skills and competency in their present jobs but also capabilities for future
managerial tasks of increasing difficulty and scope.
Edwin B. Flippo
The management and leadership development process is flexible and continuous,
linking an individuals development to the goals of the job and the organization.
Management development programmes provides the opportunity to develop a
broad base of skills and knowledge that can be applied to many jobs in the
organization. Management development curriculum is changing. The overarching
goal is a comprehensive curriculum for managers to develop the necessary core
competencies to become excellent leaders. Expanding management core
competencies will enable managers to keep pace with the demands of a changing
organization.
5.7OBJECTIVES OF MANAGEMENT DEVELOPMENT
The main objectives of management development are :
5.10 Quiz
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
4.
6.4 PROMOTIONS
6.5 DEMOTION
A demotion is a reduction in an employee's rank or job title within the
organizational hierarchy of a company, public service department, or other body. A
demotion may also lead to the loss of other privileges associated with a more
senior rank and/or a reduction in salary or benefits. An employee may be demoted
for violating the rules of the organization by a behavior such as excessive lateness,
misconduct, or negligence. In some cases, though, an employee may be demoted as
an alternative to being laid off, if the company is facing a financial crisis. A move
to a position at the same rank or level elsewhere in the organization is called a
lateral move or deployment. The opposite of a demotion is a promotion.
Within the continuum of disciplinary options available within most organizations,
a demotion falls in the middle range of severity. Minor violations of rules or the
first violation of a rule will typically result in a verbal or written warning or a
suspension without pay. At the other extreme, for severe violations of the rules,
such as embezzlement or sabotage, an employee will typically be fired and the
company will file criminal or civil charges. In sports leagues, when teams are
transferred between divisions, the worst-ranked teams in the higher division are
relegated to the lower division.
6.6 TRANSFER
A horizontal shifting of employs from one job to another without any job related
increase in the pay, benefits and status of the employee is called transfer. It can
broadly be classified into two categories, namely, imposed transfer and requested
transfer. In case of the former, an employee is transferred for administrative
convenience with or without his concurrence. For instance an organization may
carry out transfers for better utilization of skills and knowledge of the employees.
6.7 SEPARATION
Employee Separation is one of the very important and crucial function / process of
HR Department. This process, if not handled in an efficient manner, can lead to
various legal complications.
The relation of an employer and employee has a beginning; they stay together for a
while and then they separate. Beginning of the relation is called as recruitment
process or talent acquisition that passes through selection phase and followed by
induction. Staying together in the relation comprises the various phases such has
performance management; career management; professional growth; development
and etc. And the final stage of the relation is the separation.
QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
7.
8. In
promotion, when a vacancy arises for a position,
employees at the next lower level are assessed based on their performance
and service, and the best performer is promoted to the vacant position.
a) Seniority based
b) Merit based
c) Time bound
d) Vacancy based
9. Which of the following alternatives might result lead to job vacancies in an
organization?
i. Employee turnover
ii. Promotions
iii. Recruitment
iv. Demotions and Terminations
a) i, ii,iii
b) i, iii, iv
Job Evaluation
(1) It evaluated a job or work
Merit Rating
(1) It evaluated a worker
(2) It is for the purpose of fixing a (2) It is for the purpose of deciding
base-wage for a job.
impersonal in nature.
match, etc.
(5) It considers requirement of job.
training,
for
decision
placement,
regarding
promotion,
counselling, etc.
(5) It
considers
ability
and
performance of individual.
7.8 QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
1.
b)
c)
d)
Job evaluation
Job analysis
Performance Appraisal
The most important being the bargaining capacity of the employer and
employees.
The prevailing rates of wages for similar type of work in the market (i.e.
level of competition) as well as the prevailing condition of the economy.
The nature and type of the work done by the workers. For example, higher
wage rates should be paid for complicated and hazardous jobs.
Productivity of workers like workers who are more efficient and experienced
should get higher wages.
Schemes where the workers earnings vary in the same proportion as output.
Where earnings vary less proportionately than output.
Where earnings vary proportionately more than output.
Where earnings differ at different levels of output.
Incentive
Schemes
Earnings Vary In
The Same Prop.
As Output.
Earnings Vary
Less Prop. Than
Output.
Earnings Vary
Prop. More Than
Output.
Earnings Differ
At Diff. Levels Of
Output.
Straight Piece
Work.
Halsey Plan.
Taylor's
Differential Piece
Rate.
Rowan Plan.
High Standard
Hour.
Merrick
Differential Piece
Rate.
Standard Hour.
Barth Plan.
Gantt Task
System.
Bedaux Plan.
Emerson's
Efficiency Plan.
=50 % X 2 X 1=Rs1.
Total Earning = 8+ 1 = Rs 9
b) ROWAN SYSTEM
Under the rowan system too, standard time and rate per hour are fixed. If the time
taken to complete the job is equal to or exceeds the standard time, the employee is
paid for the time taken at the rate per hour. If the time taken is less than the
standard time, the employee is entitled to bonus, in addition to the time wages. The
bonus takes the form of a percentage of the workers time rate. This percentage is
equal to the proportion of the saved time, to the standard time.
Rowan system operates on the following lines:
= 10 X 1= Rs 10.
Case 2
Time taken=10 hrs
Earnings =12 X 1= Rs 12.
Case 3
Time taken =8hrs
Earnings=8 X 1=Rs 8
Bonus=2/10 X 8= Rs 1.60
Total Earnings = 8+1.60 = Rs 9.6
c) BARTH SCHEME
Unlike the halsey and rowan systems, the barth variable sharing system does not
guarantee the time-rate. The workers pay is ascertained by multiplying the
standard hour by the number of hours actually taken to do the job, taking the
square root of the product and multiplying it by the workers hourly rate.
Pay = Rate per hour X standard hour X number of hours actually taken
For example:
Standard time =10 hrs
Rate per hour = Re 1
= 1 X 8 X 10
=8.94 X1
= Rs 8.94
d) BEDAUX SCHEME
Under the bedaux scheme, the standard time for a job is determined. Each minute of
the allowed time is called a point or B. Thus, there are 60Bs in one hour. Each job
has a standard number of Bs. The rate per hour is also determined. The worker
receives, in addition to his or her hourly rate, a bonus which under the original plan
is equal to 75 percent of the number of points earned, in excess of 60 per hour,
multiplied by one-sixtieth of the workers hourly rate. If a worker does not reach
=12 X 1= Rs 12
Case 2
Actual time = 8 hrs
Earnings = time wages= 8 X 1= Rs 8
Bonus
Standard Bs =10 X 60
=600
Actual bonus =8 X 60
=480
Bs saved
=120
= 10 paise
Differentials to be applied:
120 % of piece-rate at or above the standard
80 % of piece-rate when below the standard
Case 1
Output = 120units
Earnings =120 X 120/100 X 0.10
= Rs 14.40
Case 2
Output = 90 units
Earnings = 90 X 80/100 X 0.10
= Rs 7.20
= 100 units
Piece-rate
=10 paise
Case 1
Output = 80 units
Efficiency =80/100 X 100
=80%
Earnings
As the efficiency is less than 83 %, only the base piece-rate applies.
Case 2
Output = 90 units
Efficiency = 90/100 X 100 = 90 %
Earnings;
As the efficiency is more than 83% but less than 100% of the base piece-rate
applies:
90 X 110/100 X 0.10= Rs 9.90
Case 3
Output =110 units
Efficiency =110/100 X 100
=110%
Case 1
Output = 70 units
As the output is less than the standard only time wages are paid to the worker.
Earnings = 8 X 0.50= Rs 4
Case 2
Output = 80 units
Earnings
=20/100 X 4
= Rs 4.80
Case 3
Output earnings =110 units
As the output is more than the standard, the worker is entitled to a high piece-rate.
110 X 0.10 = Rs 11
d) Emersons plan
Under this, a standard time is set for each job, and the efficiency of each worker is
determined by dividing the time taken by the standard time. Up to 67% of
efficiency, the worker is paid by time-rate. Thereafter, a graduated bonus, which
amounts to a 20% bonus at 100% efficiency, is paid to the worker; thereafter, an
additional bonus of 1% is added for each additional 1% efficiency.
The following example illustrates the method:
Standard output in 10 hrs =100 units.
Rate per hour
= Rs 1
Case 1
Output in 10 hrs = 50 units
= 100%
The worker is entitled to time wages plus 20% of time wages as bonus.
Time wage = 10 X 1
= Rs 10
Bonus
=20/100 X 10
= Rs 2
Earnings = (10+2) = Rs 12
Case 3
Output in 10 hrs =130 units
Efficiency
=130%
At the rate of 20% at 100% efficiency and 1%for everyone percent increase in
efficiency, the worker is eligible for 50%of the time wage as bonus.
Time wages =10 X 12 = Rs10
Bonus
=50/100 X 10 = Rs 5
8.8 Summary
Employees are paid incentives in addition to wages and salaries. Incentives are
linked to performance. This leads to better motivation among employees. Reduced
cost, reduced supervision, reduced scrap and the like are the other benefits of
incentives. There are problems, nevertheless. Quality of the products is likely to
decline. Introduction of an incentive scheme is difficult, too. Jealousies creep in
among workers. Problems associated with incentive may be overcome and the
plans may be made to serve their purpose, provided several safeguards are taken.
Consultation and co-operation of workers are only examples of such pre-requisites.
8.9 QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
1. A
wage should enable the male earner to provide for himself
and his family, not only the bare essentials of food, clothing and shelter, but
also a measure of frugal comfort including education for the children,
protection against ill-health, requirements of essential social needs, and a
measure of insurance against the more important misfortunes including old
age.
a) Minimum
b) Good
c) Living
d) Generous
2. Which, among the following types of wages, is likely to be the highest in
terms of value?
a) Fair Wage
b) Minimum Wage
9.7.1 SAFETY
Safety refers to the absence of accidents. Stated differently, safety refers to the
protection of workers from the danger of accidents. Safety, in simple terms, means
External
Minor
Major
Fatal
Disability
Temporary
Partial
Total
Permanent
Partial
Total
Development
of Safety
Policy
Evaluation of
Effectiveness
Organization
for Safety
Implementation of the
programme
Analysis of
causes for
accidents
9.8 REMEDIES
The methods and devices for the prevention of accidents are now available in
plenty. There are few principles or measures that are applicable to all industrial
establishments, irrespective of their size and age. These principles are:
The methods most valued in accident prevention are analogous to the
methods required for the control of quality, cost and quantity of production.
Safety incentive programs should focus on processes rather than outcomes.
The supervisor or the foreman is the key person in industrial accident
prevention. His/her application of the art of supervision to the control of
worker performance is a factor which exerts the greatest influence in
successful accident prevention.
Four basic methods are available for the prevention of accidents
engineering revision, persuasion and appeal, personal adjustment and
discipline.
9.9 QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
On the employees:
Increase the rate of absenteeism and turnover.
Reduces the level of commitment, sincerity and punctuality.
Increases the incidents of accidents.
Reduces the level of employee morale.
iii.
On the managers:
Strains the superior-subordinate relations.
Increase the degree of supervision, control and follow up.
Increase in indiscipline cases.
Increase in unrest and thereby machinery to maintain industrial peace.
Goal Accomplishment
Achieving the corporate objectives is an important aim of employee
discipline. In fact, al efforts directed towards the maintenance of discipline
must end up with the accomplishment of organizational goals; otherwise the
imposition of discipline will be of no use.
Developing a Responsive Workplace
Organizations utilize discipline to make the employees conform to the
standards they have set. This obviously facilitates the employees in avoiding
reckless and insubordinate behaviour and keeps them responsive and
disciplined.
Changing Employee Behaviour
Organizations aim at bringing in the desired behaviour among the employees
through discipline. The presence of the discipline policy can help the
employees check their behaviour against the standards and cause changes in
their behaviour, if necessary. For instance, discipline may caution the low
performers of the organization and can compel them to alter their behaviour
to meet the performance standards.
5. To develop employees
Performance appraisal accord an opportunity to develop an employee through
the identification of gaps in skills and competencies. Once deficiencies in skills
and competencies has identified, suitable training and development programmes
can be established for rectifying the gaps/deficiency. This results in personal
and professional development of employees.
6. To ensure accountability and ownership
Performance appraisal casts high responsibility on the individual employees to
accomplish his work objectives effectively. It induces employees to put his
heart and head to into improving his performance for which is accountable to
his manager. Since he is clear of performance goal and requirements, therefore
owns the appraisal as a good way to improve his career prospects in his
organization.
The brief summary of the objectives is:
1. To review the performance of the employees over a given period of time.
2. To judge the gap between the actual and the desired performance.
3. To help the management in exercising organizational control.
4. Helps to strengthen the relationship and communication between superior
subordinates and management employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
6. To provide feedback to the employees regarding their past performance.
7. Provide information to assist in the other personal decisions in the
organization.
8. Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
1.
2.
4.
5.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the
employees on one-to-one basis. The focus of this discussion is on
communication and listening. The results, the problems and the possible
solutions are discussed with the aim of problem solving and reaching
consensus. The feedback should be given with a positive attitude as this can
DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective
actions, or the related HR decisions like rewards, promotions, demotions,
transfers etc.
Rating
Methods
Comparative
Methods
Narrative
Methods
Behavioral
Methods
Checklists
Straight
Ranking
Critical
Incidents
MBO
Graphic
Rating Scale
Paired
Comparison
Essay
BARS
Grading
Field Review
Human
Resource
Accounting
Forced
Distribution
Confidential
Reports
Assessment
Centers
Forced
Choice
360 Degree
There are many methods can be used when doing performance appraisals. Now
performance appraisals are used to determine a lot of things with employer. Here
are some of those things listed below.
Deciding promotions
Determining transfers
Deciding of future employment
Determine training employees need
Finding out skill and competency deficit.
Deciding who gets rewards
There are various methods of performance appraisal depending on the size and
nature of the organization. Broadly speaking, the methods of performance
appraisal may be divided into four as depicted in the figure above.
11.5.2COMPARISON METHOD
These methods rely of relative comparison and ranking of employee performance
based on certain criteria or characteristics of performance. Five comparative
methods are:
a. Ranking
Ranking methods compare one employee to another, resulting in an ordering
of employees in relation to one another. Rankings often result in overall
assessments of employees, rather than in specific judgments about a number
of job components.
b. Paired Comparison:
a. Management By Objective
The principle behind Management by Objectives (MBO) is to create
empowered employees who have clarity of the roles and responsibilities
expected from them, understand their objectives to be achieved and thus
help in the achievement of organizational as well as personal goals.
The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback. Involving
employees in the whole process of goal setting and increasing employee
empowerment increases employee job satisfaction and commitment.
Frequent reviews and interactions between superiors and subordinates helps
to maintain harmonious relationships within the enterprise and also solve
many problems faced during the period.
b. Behavioral anchored rating scales: (BARS)
Basically means that it rates performance factors, instead of personality
factors like the trait rating scale. This scale uses a job analysis to determine
what it takes to do the job, after it does that it rates the employee against that
and determines how well you do.
11.8 QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
1. Performance Appraisal can be defined as the process of
.
a) Evaluating the qualifications of an employee and rewarding him/her
suitability
Database
Input activities
Entry Edit
Validation
Acceptable
data to data
maintenance
function
Message table
Acceptance
or error
Edit/validation
criteria
Edit/validation
table values
Database
to output
Input function
Reports
OUTPUT FUNCTION: The output function of an HRIS is the most familiar one
because the majority of HRIS users are not involved with collecting,
editing/validating and updating data, but they are concerned with the information
and reports produced by the system. Most human resource information system
consists of selecting a segment of the total population and providing a report
containing specific information regarding the selected population and / or the
calculation of results. The demands on the output function are the major factors
that influence the particular type of software to be used. The components of output
report function are shown.
Disk
Turn around
reports
Output Activities
Select
Process
Report
Output Request
procedures
Output dissemination
Procedures
Ad hoc
reporting
Report
library
Data
Conclusion:
Information is a vital ingredient to management. Accurate, timely and relevant
information is necessary for decision making. Being key to the employee
productivity, competitive strength, and corporate excellence, information is
being recognized as the fifth organizational resource. A well designed and
comprehensive HRIS provides the needed information within the shortest
period and at reduced cost. This is why computerized HRIS is being
increasingly used.
12.8 QUIZ
Complete all the review questions listed here to test your understanding of the
topics and concepts in this chapter
1. The automation of attendance keeping, payroll preparation and application
tracking are some of the activities carried out at the
level.
a) Management Information System
b) Decision Support System
c) Electronic data processing
d) None of the above
2. The simulation of a situation is the uniqueness of the
a) Management Information System
b) Decision support system
c) Electronic data processing
d) None of the above
model.
b
a
a
c
d
c
a
c
b
b
Chapter 2
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
c
b
c
a
b
d
a
c
c
d
Chapter 3
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
c
b
d
b
c
d
c
c
b
d
b
a
d
b
c
d
b
Chapter -5
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
d
c
b
b
c
d
a
b
a
a
Chapter 6
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
b
b
c
a
d
c
c
d
c
c
Chapter 7
1.
2.
3.
4.
5.
6.
b
a
d
a
c
b
Chapter 8
c
c
d
b
a
d
a
a
a
a
Chapter 9
1.
2.
3.
4.
5.
b
d
a
a
b
Chapter 10
1.
2.
3.
4.
5.
d
d
b
b
b
Chapter 11
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
b
c
c
b
a
c
d
d
c
d
Chapter 12
1. c
2. b