PERFORMANCE APPRAISAL

MEANING OF PERFORMANCE APPRAISAL

perIormance appraisal may be understood as the assessment oI individual`s perIormance in a systematic
way, the perIormance being measured against Iactors such as job knowledge, quality and quantity
output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility,
health and the like. Assessment should be conIined to past perIormance alone. Potentials oI the
employee Ior Iuture perIormance must also be assessed.
PerIormance appraisal is a method oI evaluating the behavior oI employees in the work spot, normally
including both the quantitative and qualitative aspect oI job perIormance. PerIormances here reIer to the
degree oI accomplishment oI the tasks that make up an individual`s job. It indicates how well an
individual is IulIilling the job demands. OIten the term is conIused with eIIort, but perIormance is
always measured in terms oI result and not eIIorts.
A Iormal deIinition oI perIormance appraisal is 'it is the systematic evaluation oI the individual with
respect to his or her perIormance on the job and his or her potential Ior development.
FEATURES OF PERFORMANCE APPRAISAL
PerIormance appraisal is the systematic description oI an employee`s job relevant strengths and
weaknesses.
The basic purpose is to Iind out how well the employee is perIorming the job and establish a plan oI
improvement.
Appraisals are arranged periodically according to a deIinite plan.
PerIormance appraisal is not job evaluation. It reIers to how well someone is doing the assigned job. Job
evaluation determines how much a job is worth to the organization and there Ior, what range oI pay
should be assigned to the job.
PerIormance appraisal is a continuous process in every large scale organization.
PROCESS OF PERFORMANCE APPRAISAL
PerIormance appraisal is planned, developed and implemented through a series oI steps:
Establish Performance Standards.
Appraisal systems require perIormance standards, which serve as benchmarks against which
perIormance is measured. In order to be useIul, standards should relate to the desired results oI each job.
Appraisals must have a clear- cut criteria. PerIormance standards must be both to the appraiser and the
appraise. The perIormance standards oI goals must be developed aIter a thorough analysis oI the job.
Goals must be written down. They must be measurable within certain time and cost considerations.
2 Communicate the Standards.
PerIormance appraisal involves attract two parties; the appraiser who does the appraisal and the appraise
whose perIormance is being evaluated. Both are expected to do certain things. The appraiser should
prepare job descriptions clearly, help appraise set his goals and targets; analysis results objectively;
oIIer coaching and guidance to appraise whenever required and reward good results. The appraiser

should be very clear about what he is doing and why he is doing. For this purpose, the perIormance
standards must be communicated to appraise and their reactions are noted initially. These standards
must be revised or modiIied as and when required.
Measure Actual Performance.
AIter the perIormance standards are set and accepted, the next step is to measure actual perIormance.
This requires the use oI dependable perIormance measures, the ratings used to evaluate perIormance.
PerIormance measures in order to be helpIul must be easy to use, reliable and report on the critical
behaviors that determine perIormance. Generally, managers regarding how to measure actual
perIormance use Iour common sources oI inIormation: personal observation, statistical reports, oral
reports and written reports.
4 Compare Actual Performance with Standards and Discuss the Appraisal.
Actual perIormance may be better than expected and sometimes it may even go oII the track. The
assessment oI another person's contribution and ability is not an easy task. It has serious emotional
overtones as it aIIects the selI-esteem oI the appraise. Any appraisal asked on subjective criteria is likely
to be questioned by the appraisers and leave him quite dejected and unhappy when the appraisal turns
out to be negative.
5 Taking Corrective Action, if Necessary.
Corrective action is oI two types: The one, which puts out the Iires immediately and the other one,
which strikes at he root oI the problems permanently. Immediate action sets things right and get things
back or track, whereas the basic corrective action gets to the source oI deviations and seems to adjust
the diIIerence permanently. Basic corrective step seek to Iind out how and why perIormance deviate.
METHODS OF PERFORMANCE APPRAISAL:

Methods oI PerIormance Appraisal


A) Traditional Methods B) Modern Methods
ConIidential report 1. Human resource accounting
Ranking 2. management by objective
Graphical rating scale 3. Assessment centre
Checklists 4. BARS( Behaviorally
Forced distribution anchored rating scale )
Critical incidents
Essay evaluation
Group appraisals
TRADITIONAL METHODS:
Confidential report method

It is mostly used in government organizations. It is a descriptive report generally prepared at the
end oI the year, by the employee`s immediate superior. The report highlights the strengths, weaknesses,
major mistakes, merits, good work done etc. oI the subordinate. The impression oI the superior about
the superior is merely recorded here. It does not oIIer any Ieedback to appraise. It is a narrative method
oI perIormance appraisal since the report is not made public and hence no Ireedom is available, the
subjective analysis oI the superior is likely to be hotly contested.
Ranking method
This is relatively easy method oI perIormance evaluation. In it, the ranking oI an employee in a work
group is against that oI another employee. The relative position oI each employee is tested in terms oI
his or her numerical rank, Ior example, when there are Iive employees (A,B,C,D,E) to be compared,
then A`s perIormance is compared with that oI B`s and decision is arrived at as to whose is the better or
worst. Next, B is also compares with all others. Since A is already compared with B, this time B is to be
compared with only C, D, and E In this evaluation is asked to rate the employees Irom highest to lowest
on some overall criterion. It is easier to rank the best and the worst employee, it is very diIIicult to rank
the average employees.
Graphical rating scale
It is the oldest and the most commonly used method oI perIormance in this, a printed Iorm is used to
evaluate the perIormance oI an employee. Four to twelve Iactors are selected, depending upon the
category to which the employee belongs. Some oI these Iactors are quantity oI out put, quality oI out
put, initiative, integrity, dependability etc. these Iactors and their degrees are marked on a graph paper
provided in the Iorm. The rater has merely to check on the scale where he thinks the employee belongs.
Checklists and weighted checklists
The checklist is a simple rating technique in which the supervisor is given a list oI statement or world
and ask to check statement representing the characteristic and perIormance oI each employee a checklist
represents a set oI objective statement about the employee and his behavior. A more recent variation oI
the checklist is weighted list. Under this the value oI each question may be weighted more heavily than
others.
The Iollowing are sample questions in the checklist:
- Is the employee is really interested in the task assigned? Yes/ No
- Is he respected oI his colleagues? Yes/ No
- Does he Iollow instructions properly? Yes/ No
- Does he give respect to his superiors? Yes/ No
- Does he make mistakes Irequently? Yes/ No
A rating score Irom the checklist helps the manager in evaluation oI the perIormance oI the employee.
Forced distribution method It was developed to eliminate the bias and the preponderance oI high
ratings that might occur in some organizations. Its primary purpose is the correct tendency oI the rates
to give consistently high and low ratings to all employees. This method makes those oI several sets oI
pair phases, two oI which are positive and two oI them are negative and the rates is asked to indicate

which oI the Iour phrase is the most or least descriptive oI a particular employee. Actually the statement
items are grounded in such a way that the rater cannot which statement applies to the most eIIective
employee. The Iavorable qualities earn a plus credit and the unIavorable ones earn the severest. In this
the overall objectivity is increased in the employee`s perIormance because the rater does not know how
high or low he is evaluating the individual, as he has no access to the storing key.
Critical incident method
The manager prepares test oI statements oI every eIIective and ineIIective behavior oI an
employee. These critical incidents or events represent the outstanding poor behavior oI the employees.
The manager prepares records oI the critical incidents oI the worker`s behavior. At the end oI the rating
period, the recorded critical incidents are used in the evaluation oI the workers` perIormance.
Essay Appraisal
Under this method the rater is asked to express the strong as well as the weak points oI the employee`s
behavior. This technique is normally used with a combination oI the graphical rating scale because the
rater an elaborately present the scale by sustaining an explanation Ior his rating. In it, the rater considers
the Iollowing Iactors:
Job knowledge and potential oI the employee.
Employees understanding about the company`s programmes, policies, objective, etc.
The employees general planning, organizing and controlling ability.
The employee`s relation with the co-workers and superiors.
The attitude and perceptions oI the worker, in general.
Group appraisal
In this method an employee is appraised by a group oI appraisers. This group consists oI the immediate
supervisor oI the employee, other supervisors who have close contact with employee`s work, manager
or head oI department or consultant. The head oI department or manager may be the chairman oI the
group and the supervisor may act as the coordinate Ior the group activities. The immediate supervisor
enlighten other members about the job characteristics, demand, standards or perIormance etc. then the
group appraise the perIormance oI the employee, compares the perIormance with the standards, Iinds
out the deviation, discusses the reasons, thereIore suggests ways Ior improvement oI perIormance,
prepares an action plan, studies the need Ior change in the job analysis and standards and recommends
changes, iI necessary. This method eliminates 'personal bias to a large extent, as perIormance is
evaluated by multiple rates. However, it is very time consuming process.
B) Modern Methods:
Human resource accounting
HRA is a sophisticated way to measure in Iinancial terms the eIIectiveness oI the personal
manager activities and the use oI people in an organization. It is process oI accounting people as an
organization resource. It tries to place a value on the organizational human resources as assets and not
as expenses. This method shows the investment the organization makes in the people and how the value
oI these people change over a time. The acquisition oI employee is compared with the replacement cost

Irom time to time. In brieI, in this method the employees` perIormance is evaluated in terms oI costs
and contributions oI employees.
Management by objectives
It is the modern method oI evaluating the perIormance oI personnel. Managers have become
increasingly aware that the traditional perIormance evaluation systems are characterized by Iacing
goals. The concept oI MBO is actually the outcome the pioneering work oI Drucker, Mcgreger and
Odioine in management science. MBO can be described as the process whereby the superior and
subordinate manager oI an organization jointly identiIy its common goals, each individual`s areas oI
operations, responsibility in terms oI results expected oI him and use these measures as a guide Ior
operating the unit and assessing the contributions oI each oI its members. MBO thus represents more
than an evaluation process.
The MBO can be described in Iour steps:
The Iirst step is to establish the goals each subordinate is to attain. The goals typically reIer to the
desired outcome to be achieved. The goals can be then used to evaluate the employee perIormance
The second step involves setting oI the perIormance standard Iro the subordinates in a previously
arranged time period.
In the third step, the actual level oI goal attainment is compared with the goals agreed upon. The
evaluator explores the reasons or the goals that were not met and the goals that were exceeded. This step
helps to determine the training needs. It also alerts the superior oI the conditions that may aIIect but
over which the subordinate has no control.
The Iinal step involves establishing new goals and, possibly, new strategies Ior goals that previously not
attained. At this point, subordinate and superior involvement in the goal setting may change.
Subordinates who successively reach the established goals may be allowed to participate more in the
goal setting process the next time. The process is repeated.
Assessment center
In this approach individuals Irom various departments are brought together to spend two or three
days working on an individual or a group assignment similar to the ones they would be handling when
promoted. Observers rank the perIormance oI each and every participant in order to merit since
assessment centers are basically meant Ior evaluating the potential oI candidates to be considered Ior
promotion, training on development, they oIIer an excellent means Ior conducting evaluation process in
an objective way. All assesses get an equal opportunity to show their talents and capabilities based on
merit.
Behaviorally anchored rating scale
This method is also known as behavioral expectation scale. This method represent he latest innovation
in the perIormance appraisal. It is the combination oI the rating scale and critical incident techniques oI
employee perIormance evaluation. The critical incidents serve as the anchor statement on a scale and
the rating Iorm usually contains six to eight speciIically deIined perIormance dimensions.
S PERFORMANCE APPRAISAL

The appraisal may be any person who has thorough knowledge about the job contents, contents to be
appraised, standards oI contents and who observes the employee's by perIorming a job. The appraisal
should be capable oI determining what is more important and what is relatively less important. He
should prepare reports and made judgments without bias. Typical appraisals are supervisors, peers.
Subordinates, employees themselves, user oI service and consultants. PerIormance Appraisal by all
these parties is called 360 PerIormance Appraisal.
Supervisors
Supervisors include superiors oI the employee, other superiors having knowledge about the work oI the
employee and department head or manager. General practice is that immediate superior appraises the
perIormance, which in turn is reviewed by the departmental head/ managers. This is because superiors
are responsible Iree managing their subordinates and they have the opportunity to observe, direct and
control the subordinate continuously. Moreover, they are accountable Ior the successIul perIormance oI
their subordinates. Sometimes other supervisors, who have close contact with employee work also
appraise with a view to provide additional inIormation.
Peers
Peer appraisal may be reliable oI the workgroup is stable over a reasonably long period oI time and
perIorms tasks that require interaction.
Subordinates
In developed countries, the concept oI change superiors rated by subordinates in being used in most
organizations. Such a method can be useIul provided the relationships between superiors and
subordinates art cordial. Subordinate's ratings in such cases can be quite useIul in identiIying competent
superiors.
Self-Appraisal
II individuals understand the objectives they are expected to achieve and the standards by which they
are to be evaluated, they are to a great extent in the best position to appraise their own perIormance.
Also, since employee development means selI-development, employees who appraise their own
perIormance may become highly motivated.
Users oI Services/Customers
The customers on users oI services can, better judge employee perIormance in service organizations
relating to behaviors, promptness, speed in doing the job and accuracy. Example, students better judge a
teacher`s perIormance.
Consultants
Sometimes consultants may be engaged Ior appraisal when employees or employers do not trust the
supervisory appraisal and management does not trust the selI-appraisal and the appraisal done by
subordinates. In such situation, the consultants are trained and they observe the employee at work Ior
suIIiciently long periods Ior the purpose oI appraisal.
When to appraise?

InIormal appraisals are conducted whenever the supervisor or personnel manager Ieel it necessary.
However, systematic appraisals are conducted on a regular basis; say Ior example, every six month or
annually.
PURPOSES OF PERFORMANCE APPRAISAL
To create and maintain a satisIactory level oI perIormance.
To contribute to the employee growth and development thought training, selI and management
development programmes.
To help the superior to have a proper understanding about their subordinates.
To guide the job changes with help to continuous ranking.
To Iacilitate Iair and equitable compensation based on perIormance.
To provide inIormation Ior making decision regarding lay oII, retrenchment etc.
REQUIREMENTS OF A GOOD APPRAISAL SYSTEM:
It must be easily understandable:
II the system is too much complex or to time consuming, it may be anchored to the ground by its own
dead weight oI complicated Iorms which nobody but the experts understand.
It musty has support of all line people who administer it:
II the line people think that there role is not very important then they will not consider the system
seriously. Similarly, iI the people Iind that the system is too theoretical, too ambitious, or that has been
Ioisted on them by the ivory-tower staII consultants who have no comprehension oI the demand then
they will recent it.
1he system should be sufficiently grounded in the requirement of the organization:
It should reIlect the value system oI the organization. In Iact Iunctioning as a deIinition oI perIormance,
it should tell he employee what set oI activities or what qualities are considered desirable by the
organization. As such it should have linkage with the job description.
1he system should be both valid and reliable:
The validity oI the ratings is the degree to which they are truly indicative oI the intrinsic merit oI the
employees. The reliability oI the ratings is the consistency with which the ratings are made, either by
diIIerent sectors, one by one rater at diIIerent times. Both validity and reliability result Irom objectivity.
The appraisal system oI many organizations lacks this objectivity and bunches all employees into one or
two top ranks without taking into account their merits. This raises outstanding perIormances but also
raises doubts about the validity oI the system.
1he system should have built-in incentive:
This means that the reward should Iollow satisIactory perIormance. Many authors however, advocate
against the direct linkage between the appraisal and rewards. In their opinion, such a connection
throttles downward communication oI perIormance appraisal because superiors do not like being
questioned by disgruntled subordinates.
1he system should be open and participative:
It should involve employees in goal-setting process. This helps in planning perIormance better.

1he systems should focus more on the development and growth:
OI the employee than on generating data Ior administrative decision making related to promotions,
increments, etc. the system must help in identiIying employee`s strengths and weaknesses and indicate
corrective actions. For example it may reveal that goals need to be modiIied on; there is need Ior
classiIication oI duties or Ior additional training or job rotation or job enrichment
GREIVANCE
MEANING/ DEFINITION :
The concept Grievance` has been deIined in several ways by diIIerent authorities some oI the
deIinition are Iollows:
Beach deIines a grievance as 'any dissatisIaction or Ieeling oI injustice in connection with one`s
employment situation that is brought to the notice oI the management, where as Flippo indicate the
grievance as 'a type oI discontent which must always be expressed A grievance is usually more Iormal
in character than a complaint. It can be valid or ridiculous, and must grow out oI something connected
with company operations or policy. It must involve interpretation or application oI the provision oI the
labour contract.
Jucius deIines a grievance as 'any discontent or dissatisIaction, whether exposed or not, whether
valid or not, arising out oI anything connected with company which an employee thinks, believes or
even Ieels to be unIair, unjust or inequitable.
A grievance is more than likely a violation oI an employee's rights on the job, a right that is usually,
but not always deIined by the contract. In seeing a grievance in this way, we can understand better that
the best place to look Ior a way to deIend the member is in the language oI the contract. So Ior all
practical purposes, every union oIIicer must go back to the contract Iirst when a member comes in with
a complaint or a problem. The contract provides us with the strongest ammunition in resolving the issue
Ior our member. Is the contract the only means to resolve member's grievances? OI course not. But it is
probably the strongest leg you have to stand on. Lastly, there are many grievances that Iall into a large
category which we say are discipline-related. The union can challenge certain rules or their application.
We may argue that a member is being disciplined without "just cause" or he or she is suIIering Irom
disparate treatment. The two expressions are simply an arbitrator's or lawyer's way oI saying the
member is being disciplined unIairly.
So the best advice that can be oIIered in handling a member's problem is to check the contract
Iirst. II there is any reasonable way oI dealing with the issue as a contract violation, youought to use it.
You and your local union are only limited by the contract, the skills oI the grievance representatives,
and the power oI the local union.

NEED FOR A GRIEVANCE PROCEDURE
Grievance procedure is necessary Ior any organization due to the Iollowing reason:
Most grievances seriously disturb the employees. This may aIIect their moral, productivity and their
willingness to cooperate with the organization. II an explosive situation develops, this can be promptly
attended to iI grievance handling procedure is already in existence.
It is not possible that all the complaints oI the employees would be settled by Iirst-time supervisors, Ior
these supervisor may not have had a proper training Ior the purpose, and they may lack authority.
Moreover, there may be personality conIlicts and other cause as well.
It serves as a check on the arbitrary action oI the management because supervisors know that employees
are likely to see to it that their protest dose reach the higher management.
It serves as an outlet Ior employees gripes, discontent and Irustrations. It acts like a pressure value on a
steam boiler. The employees are entitled to legislative, executive and judicial protection and they get
this protection Irom the grievance redressal procedure, which also acts as a means oI upward
communication.
2CONSIDERS GOOD PRACTICE IN HANDLING DISCIPLINARY AND GRIEVANCE
ISSUES :
endorses the ACAS Code oI Practice
1
Ior handling disciplinary and grievance issues
summarizes the statutory procedures which came into Iorce in October 2004
includes the CIPD viewpoint.
Summary
A summary oI issues which can be addressed through the Basic Grievance Procedure include, but are
not limited to, the Iollowing: All allegations oI discrimination; allegations oI non-compliance with the
Personnel Rules; improvement oI systems, practices or procedures; saIety; health; working conditions;
materials or equipment; supervisory practices or procedures considered improper or unIair; disciplinary
actions such as suspensions oI 40 hours or less, reprimands or memos oI concern; or any other matters
subject to the authority oI the ADOA Director and Ior which no other method oI redress is provided or
prohibited in the Personnel Rules.
Restrictions
An employee may not submit a grievance challenging the Iollowing management rights, but may
submit a grievance concerning the manner oI their administration, insoIar as these personally aIIect the
employee: The agency's right to direct its employees; to hire, promote, transIer, assign, and retain
employees; and, to maintain eIIiciency oI government operations, and to determine the methods, means,
and personnel by which these operations are to be conducted. An employee may submit a grievance
concerning a speciIic perIormance Iactor rating by utilizing the EPAS Grievance Procedure. An
employee may not submit a grievance concerning the receipt oI a perIormance decrease, the non-receipt
oI a perIormance increase or special perIormance award, the amount oI any increase or decrease, or the

use oI any job-related supplemental rating Iactors to determine the receipt or amount oI an increase,
decrease, or special perIormance award. An employee may submit a grievance using the Basic
Grievance Procedure within 10 days oI receipt oI a planning EPAS or within 10 days oI Iailing to
receive, aIter written request, a planning document.
Non-Applicable Matters
A summary oI issues which cannot be addressed through either the Basic or the EPAS Grievance
Procedure, include, but are not limited to, the Iollowing: Retirement issues; liIe insurance or health
insurance issues; suspension Ior more than 40 working hours, demotion, or dismissal resulting Irom
disciplinary action; any examination, certiIication or appointment; any classiIication action; and any
reduction in Iorce action and matters not subject to the Department oI Administration control. Other
avenues exist to seek redress or remedy involving these actions.
Amendments
Once a grievance is reIerred to any step beyond the immediate supervisor, it may not be amended. II
additional documentation is submitted by the grievant aIter the initiation oI the grievance, the reviewing
oIIicial may remand the grievance to the appropriate previous level Ior reconsideration. It is the
employee's responsibility to provide documentation to support the allegations raised in the grievance.
Confidentiality and Use of Official Authority
The preparation, submittal, review and response to a grievance are conIidential. Correspondence
regarding a grievance should be handled in a conIidential manner, and envelopes containing grievance
material should be clearly labeled "conIidential." No reIerence to the complaint shall be included in the
employee's oIIicial personnel Iile.
Copies oI written responses sent at each step oI the procedure are limited to respondents at the
preceding steps, the agency head or the agency head's designee unless it is necessary to notiIy additional
personnel because the response requires another individual to take some action.
No person shall directly or indirectly use any oIIicial authority or inIluence in any manner to discourage
the use oI this procedure. Any person Iound guilty may be subject to penalty under ADOA Personnel
Rule R2-5-501.
Representation
At any step oI the grievance procedure aIter the mandatory pre-grievance oral discussion (see
below), grievant may select one representative to provide advice and/or speak Ior the grievant at any
meetings determined necessary by management in the course oI the grievance process. An ADOA
employee who serves as a representative is required to request and obtain prior approval Ior annual or
compensatory leave Ior any time devoted as a representative during regular working hours. II a
representative is chosen, the representative shall be identiIied on the grievance Iorm
Group Grievance
Should a group oI employees Iile a grievance, all employees oI the group are required to sign

the grievance and to clearly designate, on the grievance Iorm, one member who will act as the group's
contact person. The contact person will act as a speaker Ior the group in any meetings determined
necessary by management.
Preparation Time
During the entire Iormal grievance process (aIter the oral discussion at Step I), employees are
allowed up to Iour hours with pay to prepare the grievance and/or conIer with their oIIicial
representative on the grievance. Employees cannot use state equipment Ior this process. Employees
must request and obtain prior supervisory approval Ior time oII, which will be subject to the operational
needs oI the unit. The time an employee devotes to attending any meetings scheduled by management
to discuss the grievance is considered work time and is not included in the Iour-hour limitation speciIied
above.
Extensions
The ADOA Personnel Rules require that the agency head respond to a grievant not later than 40
working days aIter receipt oI the grievance at the Iirst step. Within the 40 working days requirement,
the time at any step may be extended by the agency head with concurrence oI the grievant. II at any
step the response is not made within the prescribed time and no extension has been agreed upon, the
employee may submit to the next step.
Mandatory Oral Discussion
In accordance with Personnel Rule R2-5-702.A.1, the employee is REQUIRED to have an oral
discussion with the immediate supervisor prior to initiating a Iormal grievance. The employee must
clearly state to the supervisor the employee's intentions oI Iiling a Iormal grievance, the issues involved,
and the requested resolution. The purpose oI the meeting is Ior both parties to explore the issues and
the requested resolution. II the employee Iails to take this step, the grievance WILL NOT be accepted
through the Iormal grievance procedure. It is the employee's responsibility to remember that the Step I
grievance must be submitted within 10 working days aIter the occurrence oI the action being grieved,
and that these 10 days are not extended by the date on which the oral discussion takes place.
The employee may select a representative at any step aIter the oral discussion with the supervisor.
Procedures
When an employee wants to submit a basic grievance, the employee must: Use the appropriate Iorm;
state the problem and outline all oI the speciIic Iacts, circumstances and issues involved; provide all the
appropriate documentation to support the allegations; state the speciIic resolution which is sought; oI a
Personnel Rule violation is alleged, the speciIic rule alleged to have been violated must be stated as well
as an explanation oI how the rule was violated; and, the employee must sign the grievance at each step
and state why the response at the previous level was not satisIactory.
The employee must also meet the mandatory oral discussion requirement prior to submitting the
complaint and adhere to the required time limitation Ior submitting a grievance.

Step I
The Step I responding authority is the employee's immediate supervisor.
The time limit Ior submitting the grievance is 10 working days Irom the date oI the action being
grieved. II a suspension is being grieved, the date oI the action is considered to be the Iirst day oI the
suspension. The date the action occurred is not counted when determining
HY ARE DISCIPLINARY AND GRIEVANCE PROCEDURES NECESSARY?
Disciplinary and grievance procedures provide a clear and transparent Iramework to deal with
diIIiculties which may arise as part oI their working relationship Irom either the employer's or
employee's perspective.
They are necessary to ensure that everybody is treated in the same way in similar circumstances, to
ensure issues are dealt with Iairly and reasonably and that they are compliant with current legislation.
Disciplinary procedures are needed:
So employees know what is expected oI them in terms oI standards oI perIormance or conduct (and the
likely consequences oI continued Iailure to meet these standards).
To identiIy obstacles to individuals achieving the required standards (e.g. training needs, lack oI clarity
oI job requirements, additional support needed) and take appropriate action.
As an opportunity to agree suitable goals and timescales Ior improvement in an individual's
perIormance or conduct.
As a point oI reIerence Ior an employment tribunal should someone make a complaint about the way
they have been dismissed
Grievance procedures are needed:
To provide individuals with a course oI action should they have a complaint (which they are unable
to resolve through regular communication with their line manager).
To provide points oI contact and timescales to resolve issues oI concern.
The legal position
Most oI the provisions governing discipline and grievances at work are to be Iound in the
Employment Act 2002 and the detailed regulations made to implement the provisions oI that Act
namely the Employment Act 2002 (Dispute Resolution) Regulations 2004 (SI2004/752).
Numerous other pieces oI legislation cross reIer to discipline and grievance issues. Some important
examples include the:
Employment Rights Act 1996 as amended
Employment Rights Dispute Resolution Act 1998
Employment Relations Act 1999.
The statutory disciplinary, dismissal and grievance procedures
From 1 October 2004, the Employment Act 2002 made it a legal requirement Ior all organizations to
Iollow minimum disciplinary, dismissal and grievance procedures in certain circumstances. These

statutory procedures amount to a minimum standard that must be Iollowed by all employers and
employees.
The Main Features Of The Procedures Are:
Three step statutory disciplinary, dismissal and grievance procedures which must be Iollowed in
most cases
Iailure to Iollow the statutory procedures by the employer prior to dismissal will render that dismissal
automatically unIair
employers will pay a potential increase in compensation oI between 10-50 iI the procedures are not
Iollowed by the employer
an employee may be prevented Irom presenting some types oI claim in the employment tribunal iI they
have not Iollowed the grievance procedure Iirst
the procedures are non-contractual until Iurther notiIication by the Department oI Trade and Industry
unless an organization chooses to incorporate the statutory minimum into their own contractual
procedures.
There are two sets of procedures: standard, and modiIied. It is envisaged that the standard procedure
will be used in all but the most exceptional circumstances. These procedures apply in a wide range oI
circumstances which are not limited to issues relating to the capability or conduct oI the employee but,
Ior example, to dismissals which occur on the expiry oI a Iixed-term contract and in a smaller scale
redundancies.
There are some exemptions to the statutory procedures, Ior example iI one party reasonably believes
there is a signiIicant threat, harassment or it is not practical to go through the procedures Ior reasons
beyond their control, or iI there are issues oI national security.
The ACAS Code oI Practice Disciplinary and Grievance Procedures
1
provides detailed guidance Ior
employers. CIPD endorses this Code.
CIPD members can Iind out more on the legal aspects oI this topic Irom our FAQ on in the Employment
Law at Work area oI our website.
Top oI Form
Grievance policy and practice
It is essential that grievances Irom employees are treated in the same Iair manner. Failure to address
grievances leaves employees with residual anger` and can lead to general unrest and disputes in the
workplace.
Employees must know to whom they can turn in the event oI a grievance and the support, such as
counseling or sources oI advice, that is available to them. All line and senior managers must be Iamiliar
with their organization`s grievance procedure.
There are a number oI additional Iactors to bear in mind when dealing with grievances concerning
harassment. For Iurther details see our Iact sheet on

Handling grievances informally
Individuals should be encouraged to discuss ordinary, day-to-day issues inIormally with their line
manager. This helps concerns to be heard and responded to as soon as possible.
Where this has been unsuccessIul, or circumstances make this route inappropriate Ior the individual,
then matters should raised Iormally through the grievance procedure.
Handling grievances formally
Employees should also be aware oI the Iormal route open to them, including:
the three stages oI the statutory procedure and any Iurther elements oI the organization`s additional
procedures
with whom to raise the complaint and appropriate sources oI support
timescales within which the organization will seek to deal with the complaint
details oI the stages oI the grievance procedure e.g. how a complaint may be raised with the next level
oI management iI a satisIactory resolution is not reached.An employee should be given the right to be
accompanied to grievance hearings by a colleague or trade union representative as explained above.
As in disciplinary matters, record keeping is important
4GRIEVANCE PROCEDURES: THE STANDARD THREE-STEP PROCEDURE
Your employer`s grievance procedure may have more than three steps, but it must include the
Iollowing.
. ritten statement
You must set out your grievance in writing (oIten called a step one letter`). Your employer`s
grievance procedure should say who to send your letter to. II that`s the person causing the problem, or iI
they`ve ignored previous complaints, send it to the HR department or to the person`s boss.
2. Meeting:
Your grievance should be looked into in a Iair and unbiased way. Your employer should invite you
to a meeting (sometimes called a hearing) to discuss the problem, and you should attend iI you can. II
there is someone else involved, they might also be there (but you should tell your employer iI you are
uncomIortable with this).The meeting should be at a convenient time Ior you and anyone else involved.
II you think you`ve not had enough time to prepare, ask Ior more time. II your employer doesn`t agree
(and they don`t have to), you should go to the hearing, but make sure that your lack oI preparation time
is noted. Gather your thoughts beIore the meeting. Don`t be aIraid to write down what it is you want to
say. There is nothing wrong with reading this out at the meeting. It is up to your employer what Iormat
the meeting takes but they will normally go through the issues that have been raised and give you the
opportunity to comment. The main purpose oI the meeting should be to try to establish the Iacts and
Iind a way to resolve the problem. The Advisory, Conciliation and Arbitration Service (Aces) have a
code oI practice which sets out how your employer should carry out a grievance procedure. II you ask
your employer beIorehand, you have a legal right to take a companion` (who is a colleague or trade

union representative) to the meeting with you. II no colleague is willing to accompany you, and you`re
not a union member, ask iI you can bring a Iamily member or a Citizen`s Advice Bureau worker (but
your employer does not have to agree to this). The companion can present and/or sum up your case, talk
on your behalI and conIer with you during the hearing. They`re protected Irom unIair dismissal or other
mistreatment Ior supporting you. The meeting must be at a convenient time Ior your companion. You
can ask Ior a postponement oI up to Iive days iI necessary to get your chosen companion there. You
should be given notes oI the meeting, and copies oI any inIormation given by other people. Unless they
need to investigate Iurther, your employer should tell you reasonably quickly what`s been decided, and
about your right to appeal iI you`re not satisIied. You might be told oI the outcome verbally at Iirst but
it will usually be conIirmed in writing.
. Appeal meeting:
II you`re not satisIied with the decision, or you think the procedure Iollowed was seriously Ilawed,
you have the right to an appeal. This is usually heard by a higher level oI management. II that isn`t
possible, your employer could ask an Aces mediator or other independent person to hear it. The appeal
hearing is similar to the original meeting, and you have a right to a companion, as beIore. Your
employer should give you enough time to appeal. II they don`t, make your appeal anyway, and say that
you`ll provide more inIormation later. II you are considering taking your issue to an Employment
Tribunal you may want to appeal even iI it seems pointless, because a tribunal award could be reduced
iI you don`t. II you can`t sort out the dispute, you can get help through mediation, conciliation or
arbitration, iI your employer agrees to it.
DISCIPLINE
INTRODUCTION:
Discipline is required Ior both the organization and the individual. In the organization it is needed to
regulate the behavior oI people, maintain peace and channel their eIIorts towards organizational goal.
Sad to sate, most people do not exercise selI discipline and this Iact makes external control necessary
Ior brining order within an organization.
CONCEPT
Discipline is not a glamorous term. It is viewed with Iear and suspicion in organization. The multiple
explanation advanced by diIIerent expert in the Iiled have only added to the prevailing conIusion.
NEGAIVE DISCIPLINE
Traditionally, discipline is interpreted as a sort oI check or restraint on the Ireedom oI person.
Discipline is used to the act oI imposing penalties Ior wrong behavior. II employees Iail to observe
rules, they are punished. 'Discipline is the Iorce that prompts an individual or a group to observe the
rules, regulations and procedures which are deemed to be necessary to the attainment oI an objective,
POSITIVE DISCIPLINE
Employees comply with rules not out Iear oI punishment but out oI an inherent desire to

cooperate and achieve goals. Where the organizational climate is market by two-way communication,
clear goals, eIIective leadership, adequate compensation employees need not be discipline in the
traditional way. Positive discipline, according to Spriegel enables an employee, 'to have a greater
Ireedom in that he enjoys a greater degree oI selI-expression in striving to achieve the objective, which
he identiIies as his own.
2DIFFEREANCE BETEEN POSITIVE & NEGATIVE DISCIPLINE :

Point

Negative Discipline Positive Discipline
Concept


It is adherence to established
norms and regulation, out oI
Iear oI punishment.
It is the creation oI a
conductive climate in an
organization so that employees
willingly conIirm to the
established rules
Conflict Employees do not perceptive
the corporate goals as there
own.
There is no conIlict between
individual and organizational
goals.
Supervision Require intense supervisory
control to prevent employees
Irom going oII the track.
Employees exercise selI-
control to meet organizational
object ivies.

SELF DISCIPLINE AND CONTROL:

Behavioral scientist view discipline as a selI- control to meet organizational objectives. Megginson
clariIied the term thus. 'By selI- discipline he mans the training that correct, moulds and strengthens. It
reIers to one`s eIIorts at selI control to certain needs and demands. This Iorm oI discipline is raised on
to psychological principles. First, punishment seldom produce the desired result. OIten, it produce
undesirable result. Second, a selI- respecting person tends to be a better worker than one who is not.
4PROGRESSIVE DISCIPLINE:
The concept o progressive discipline states that penalties must be appropriate to the violation. II
inappropriate behaviour is minor in nature and has not previously occurred an oral may be suIIicient. II
the violation requires a written warning, it must be done according to a procedure. AIter written
warnings, iI the conduct oI the employees is still not along desired lines, serious punitive steps could be
initiated. In case oI major violations such has hitting a supervisor may justiIy the termination oI an
employee immdiately. In order to assist a manager to recognize the proper level oI disciplinary action,
some Iirms have Iormalized the procedure.

5THE RED HOT STOVE RULE:
Without the continual support oI the subordinate, no manager can get things done. But disciplinary
action against a delinquent employee is painIul and generates resentment on his part.
According to the Red Hot Stove rule disciplinary action should have Iollowing consequences:
A] Burns immediately: II disciplinary action is to be taken, it must occur immediately so the
individual will understand the reason Ior it. With the passage oI time, people have tendency to convince
themselves that they are not Iault.
B] provides warning: It is very important to provide advance warning that punishment will Iollow
unacceptable behaviour. As you move closer to hot stove you are warned by its heat that will be burned.
C] Burns impersonally: Disciplinary action should be impersonal. There are no Iavorites when this
approach is Iollowed.
USTICAL APPROCH TO DISCIPLINE:
The Industrial Employment Act was passed in 1946 with a view to improve the industrial relation
climate. The Act requires that all establishment must deIine the service rules and prepare standing order.
The term Standing order reIers to the rules and regulation which governs the condition oI employment
oI workers. They indicate duties and responsibility on the part oI both the employer and the employees.
The standing order contains rules relating to classiIication oI employees, working hours, holidays, shiIt
working, attendance, leave, suspension, stoppage oI work, redreassal oI these terms and condition may
lead to misconduct or indciplpine.
7DISCIPLINARY ACTION:
Though there is no rigid and speciIic procedure Ior taking disciplinary action, the disciplinary
procedure Iollowed in Indian industries usually consist oI the Iollowing steps:
a. Issuing the letter of charge: When a employee commits an act oI misconduct that required disciplinary
action, the employee concerned should be issue a charge sheet. Charges oI misconduct or indiscipline
should be clearly and precisely stated in the charge sheet.
b. Consideration of explanation: On getting the answer Ior the letter oI charge served, the explanation
Iurnished be consider and iI it is a satisIactory, no disciplinary action need be taken. On the contrary
when the management is not satisIied with the employees explanation there is a need Ior serving a
show-cause notice.
c. Show-cause notice: Show-cause notice is issued by the manager when he believes that there is a
suIIicient prima Iacie evidence oI employees misconduct. Enquiry should also initiated by Iirst serving
him a notice oI enquiry indicating clearly the name oI enquiring oIIicer, time, date and place oI enquiry
etc.
d. Holding of a full fledge enquiry: These must be in conIormity with the principle oI natural justice, that
is the employee concerned must be given an opportunity, oI being heard. When the process oI enquiry is

over an Iindings oI the same are record, the enquiry oIIicer should suggest the nature oI disciplinary
action.
DISCIPLINARY POLICY AND PRACTICE:-
Using the disciplinary process
There are two main areas where the disciplinary system is used: capability/perIormance and conduct.
Capability/performance
It is inevitable that at some stage all employers will encounter diIIiculties with the perIormance oI
their employees in the workplace (these can stem Irom diIIiculties on the part oI the organization such
as insuIIicient training and support, or a lack oI leadership or inappropriate systems oI work, as well as
the individual who is struggling to IulIill their responsibilities). It is good practice and also more
eIIicient that such issues are addressed inIormally, as and when they arise, by managers via discussions
which clariIy 'what good perIormance looks like', goal setting, support and timely positive Ieedback
where appropriate. Only when these options have been exhausted and where there is no alternative
should managers should enter a more Iormal disciplinary procedure.
Situations where an individual is unable to do their job because oI ill-health also Iall into this category.
In these instances an employee should be dealt with sympathetically and oIIered support. However,
unacceptable levels oI absence could still result in the employer making use oI warnings.
Conduct
Employee misconduct could range Irom continued lateness, Iailure to Iollow a reasonable
management instruction, abuse oI the organization`s computer system or Internet access, bullying
behaviour or creating a hostile work environment, through to theIt, Iighting and committing criminal
oIIences. The more grave oIIences may constitute gross misconduct. In all cases, even gross
misconduct, an employer should attempt to Iollow the statutory procedures.
Stages oI the process
II disciplinary action is to be taken, it should always have three main stages:
( Letter
2( Meeting
( Appeal.
There must always be a Iull and Iair investigation to determine the Iacts and to decide iI Iurther action is
necessary.
Record-keeping
All records should be kept meticulously, as this will be vital should a case be perused at an
employment tribunal. Since the burden oI prooI is on the employer to show that the dismissal is not
unIair or unreasonable, keeping records is vital. Type oI records that should be kept by employers is
minutes oI meetings, attendance, notes oI telephone calls, copies oI correspondence etc.
Handing disciplinary interviews

All line managers should be trained and supported so that they are able to carry out disciplinary
meetings with their team. The HR department should be able to assist them by providing a source oI
independent advice on preparing Ior and conducting the interview, as well as sharing knowledge about
similar cases in the organization and relevant legislation.
The key points to consider are:
Ensure you have investigated all the Iacts in advance (including consulting the individual's personal Iile
Ior relevant inIormation) and plan how you will approach the meeting.
Make sure the employee knows Irom the letter inviting them to the meeting why they have been asked
to attend and that they have a right to have a companion present.
Make sure the individual has reasonable notice, ideally more than 48 hours; so that they have a chance
to arrange an appropriate representative iI they wish.
Make sure another member oI management can be there to take detailed notes and help.
Conduct the interview.
Never pre-judge the outcome oI the interview beIore hearing the employee's perspective.
Start the interview by stating the complaint to the employee and giving appropriate statements Irom
people involved.
Give the employee ample opportunity to put Iorward their side oI the story and call any supporting
witnesses.
You can also call witnesses, but they can only be in the room Ior the relevant part oI the interview - not
the duration.
Make use oI adjournments: always take a break to consider and obtain any extra inIormation you need
beIore reaching your decision. You can also use iI things become heated or people are upset during the
interview.
Deliver the decision (and give reasons, taking into account any mitigating circumstances), conIirm
review periods and ensure you give details oI how to appeal.
ConIirm the decision in writing.
It is important that everyone involved in disciplinary action understand the importance oI Iollowing the
correct procedure, as even iI the case against an employee seems proven, they can still be deemed to
have been treated unIairly iI the correct procedures are not Iollowed.
An individual is entitled to be accompanied by a work colleague or trade union oIIicial at Iormal
disciplinary and grievance interviews, and to select a companion oI their choice. It would be good
practice Ior an employer also to oIIer this at any purely investigatory meeting.
No action
AIter the meeting, the employer may decide that no action is necessary. For example, iI an employee
was unclear about what was expected Irom them and they agree to try to resolve the issue via additional
support or counseling.

arnings
Alternatively, the employer may decide to give the employee a warning. An organization`s policy
should outline exactly what warnings will be given, but the Iollowing are likely:
Recorded oral warning
First written warning
Final written warning.
Clearly these stages represent an increase in seriousness. With the exception oI extreme examples oI
misconduct, it would be inappropriate to 'skip stages' in the process. Ultimately, Iailure to reach the
organization`s standards may result in dismissal.
Any warning should also speciIy a review period during which the individual receives appropriate
support and their perIormance can be monitored.
Disciplinary warnings should normally have a speciIied 'liIe' aIter which they are disregarded when
considering any subsequent warnings. Typical timescales Ior the types oI warning are:
recorded oral warning - months
first written warning - year
final written warning - 2 years.
Where misconduct has been very serious, it may be appropriate Ior the warning to continue to be
regarded indeIinitely.
RECURITMENT
Recruitment means to estimate the available vacancies and to make suitable arrangements Ior
their selection and appointment. Recruitment reIers to 'Discovering potential applicants Ior actual or
anticipated organizational vacancies. Recruitment is a process 'To discover the source oI manpower to
meet the requirements oI staIIing, to employ eIIective measures Ior attracting potential manpower in
adequate number. Recruitment is the process oI identiIying the sources Ior prospective candidates and
to stimulate them to apply Ior the job. It`s linking activity bringing together those with jobs and those
seeking jobs. It locates the source oI manpower to meet the requirements and job speciIications. In
recruitment process available vacancies are given wide publicity and suitable candidates are encouraged
to submit application so as to have a pool oI eligible candidates Ior scientiIic selection.
In recruitment, inIormation is collected Irom interested candidates. For these diIIerent sources oI
recruitment such as newspaper advertisement, employment exchange, internal promotions, etc. are used.
In the recruitment, a pool oI eligible and interested candidates is created Ior the selection oI most
suitable candidate. Recruitment represents the Iirst contact that a company makes with potential
employees.
Recruitment is a positive Iunction in which publicity is given to the jobs available in the organization
and interested candidates (qualiIied job applicants) are encouraged to submit applications Ior the
purpose oI selection.

DEFIAI1IOA OF RECRUI1MEA1
According to Edwin Flippo, 'Recruitment is the process oI searching Ior prospective employees
and stimulating them to apply Ior jobs in the organization.
OB1EC1IJES OF RECRUI1MEA1
The objectives oI recruitment are as Iollows:
(i) To attract people with multi-dimensional skills and experiences that suit the present and Iuture
organizational strategies,
(ii) To induct outsider with a new perspective to lead the company,
(iii) To inIuse Iresh blood at all levels oI the organization,
(iv) To develop an organizational culture that attracts competent people to the company,
(v) To search or head hunt/head pouch people whose skills Iit the company`s values,
(vi) To search Ior talents globally and not just within the company.
PURPOSE OF RECRUITMENT
Recruitment has three major purposes:
1) to increase the pool oI job applicants with minimum cost.
2) To meet the organization`s legal and social obligations regarding the demographic composition oI its
workIorce.
3) To help increase the success rte oI the selection process by reducing the percentage oI applicants who
are either poorly qualiIied or have the wrong skills.
NEED FOR RECRUITMENT
The need Ior recruitment may be due to the Iollowing reasons/situations:
(a) Vacancies due to promotions, transIers, retirement, termination, permanent disability, death and labour
turnover.
(b) Creation oI new vacancies due to growth, expansion and diversiIication oI business activities oI an
enterprise. In addition, new vacancies are possible due to job respeciIication.
SOURCES OF RECRUITMENT
The sources oI recruitment may be grouped into:
Internal sources
External sources
INTERNAL SOURCES: As the term implies internal source oI recruitment is Ior those who are
currently members or the organization. Whenever any vacancy arises, somebody Irom within the
organization may be looked into, Iollowing are the internal sources oI recruitment.
Promotions: - In order to motivate the existing employees, management Iollows the policy oI internal
promotions. Promotion means shiIting oI an employee to a higher position carrying higher
responsibilities, Iacilities, status and salaries. Various positions in the organization are usually Iilled up
by promotions oI existing employees on the basis oI merit or seniority or a combination oI both.

2 Transfers: - TransIer reIers to a change in job assignment. It may involve a promotion or demotion, or
no change in terms oI responsibility or status. A transIer may be either temporary or permanent,
depending the necessity oI Iilling jobs. E.g. transIer Irom head oIIice to branch oIIice.
Retirements: - At times, management may not Iind suitable candidate in place oI the one who had
retired, aIter meritorious service. Under this circumstances management may decide to call retired
manager with new extension.
4 Recalls: - When management Iaces a problem, which can be solved only by a manager who has
proceeded on long leave, it may be decided to recall that person. AIter the problem is solved, his leave
may be extended.
5 Former employees: - Individuals who leIt Ior some other job, might be willing to come back Ior higher
wages incentives. An advantage with these sources is that the perIormance oI the person/employee is
already known.
EXTERNAL SOURCES
As the term implies the external source oI recruitment is oI potential workers who are not currently
member oI the organization. It usually includes new entrants to the labour Iorce the unemployed and
people employed in the other organization seeking the change. Company managements have to use
eternal sources Ior the recruitment oI supervisory staII and managers as and when necessary. This may
be with a view to introducing the new blood` in the organization. External recruitment is one way oI
bringing into the organization that has new skills or abilities and diIIerent way oI approaching job task.
Following are the most common external source oI managerial recruitment.
Newspaper Advertisement:-Newspaper advertisements are overwhelmingly popular source oI
recruitment. A message containing general inIormation about the job and the organization is placed in
various newspapers. Newspaper advertising typically generates a large applicant Ilow. Though costly, it
provides wide choice as it attracts a large number oI suitable candidates Irom all over the country. The
best example Ior newspaper advertisement is the Times oI India`s Asscent supplement which comes on
every Wednesday and contains both domestic as well as international jobs.
2 Campus Recruitment: - College Campuses are another very popular recruitment source. The growth oI
Management institutes, IIts and Regional Engineering Colleges has provided a popular source oI
recruitment. Private sector is able to attract many aspirants. It is an excellent source oI recruiting
management trainees. The promising students get job security immediately aIter securing degrees due
to such campus interviews/recruitment.
Recruitment through internet: - The Internet has quickly become a very popular source oI
employment advertising. This source is quickly growing in popularity. Currently employers can post
their openings to any oI several newsgroups Ior Iree. Most employment advertisement Iirms can also
post the jobs on the Internet; however, they charge a Iee. A large and Iast growing proportion oI
employers use the internet as a recruitment tool. More and more organizations are placing inIormation

about open positions on the World Wide web. There are many web sites through which recruitment
takes place. Some oI the examples are www.naukri.com, www.monster.com, etc.
4 ob Fairs: - Job Iairs are very eIIective. A job Iair is an event sponsored by a "job Iair" company who
charges a Iee to participating employers. The "job Iair" company will typically advertise in local media
to attract qualiIied applicants. Hiring managers can meet multiple candidates and conduct on-the-spot
interviews. Because the applicants may be interviewing with multiple employers, it is imperative to
respond quickly with invitations Ior in-plant interviews oI qualiIied candidates. II a job Iair results in
just one hire it is usually cost eIIective.
5 Employment Agencies: - The Iirm contacts an organization whose main purpose is locate job seekers.
The company provides the agency with inIormation about the job, which the agency then passes along
to its clients. Clients may be either employed or unemployed. Agencies can either be public or private.
Fees may be charged to either or both the client seeking a job and the company seeking applicants.
alk-ins, rite-ins and Talk ins:- The most economical approach Ior recruitment oI candidates is
direct applications. The job seekers submit applications or resumes directly to the employer. The
advertisement mentions date, day and timing during which the applicant can walk in` Ior an interview.
Write-ins are those who send written inquiries. These applicants a raked to complete application Iorms
Ior Iurther processing. Talk-ins is now becoming popular and the applicants are required to meet the
employer Ior detailed talks. The applicant is not required to submit any applications.
ADVANTAGES OF INTERNAL RECRUITMENT
1) Internal recruitment is economical.
2) The present employees already know the company well and are likely to develop a loyalty Ior the same.
3) It tends to encourage existing employees to put in greater eIIorts and to acquire additional qualiIication.
This means there is motivation to employee to develop and reach to higher positions.
4) It provides security and continuity oI employment.
5) Internal recruitment helps to raise the morale oI employees and develop cordial relations at the
managerial levels.
6) It reduces labour turnover as capable employees get promotion within the organizations.
7) Internal recruitment is a quick and more reliable method.
8) People recruited Irom within the organization do not need induction or training.
DISADVANTAGES OF INTERNAL RECURITMENT
1) Internal promotions create a Ieeling oI discontent among those who are not promoted.
2) It prevents the entry oI young blood in the organization.
3) Promotion to certain key post may not be possible due to non-availability oI competent persons.
4) The organization will not be able to attract capable persons Irom outside iI internal sources are used
extensively.
5) It may encourage Iavoritism and nepotism.

6) Promotions by seniority may not be always beneIicial to the organization.
In brieI, internal methods oI recruitment should be used to extent possible but too much dependence on
internal methods is undesirable and may prove costly to the organization in the long run.
ADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT
1) Entry oI young blood in the organization is possible.
2) Wide scope is available Ior selection. This Iacilitates selection oI people with rich and varied
experience.
3) Selection can be made in an impartial manner as large number oI qualiIied and interested candidates are
available.
4) Scope Ior heartburn and jealousy can be avoided by recruiting Irom outside.
5) The management can IulIill reservation requirements in Iavour oI the disadvantaged section oI he
society.
DISADVANTAGES OF EXTERNAL SOURCE OF RECRUITMENT
1) External recruitment leads to labour turnover particularly oI skilled, experienced and ambitious
employees.
2) The relations between employer and employee deteriorate leading to industrial disputes and strikes.
3) The present employees may lose their sense oI security. Their loyalty to the organization may be
adversely aIIected.
4) Employees Ieel Irustrated due to external recruitment and their morale is adversely aIIected.
SELECTION
MEANING AND DEFINITION OF SELECTION
Selection is one oI the most important oI all Iunctions in the management oI personnel.
Selection is more closely related to recruitment because both are concerned with processing individuals
to place them in a job. Selection is next to recruitment. AIter identiIying the sources oI human
resources, searching Ior prospective employees and stimulating them to apply Ior jobs in an
organization, the management has to perIorm the Iunction oI selecting the right employees at the right
time. 'Right man at the right job is the basic principle in selection. Selection is the process oI
collecting and evaluating inIormation about an individual in order to extend an oIIer oI employment. It
is the process oI logically choosing individuals who posses the necessary skills, abilities and personality
to successIully Iill speciIic jobs in the organization.
Selection means a process by which the qualiIied personnel can be choosen Irom the applicants who
have oIIered their services to the organization Ior employment. Thus selection process is negative
Iunction because it attempt to eliminate applicants, leaving the best to be selected. In the words oI Dale
Yodev, 'Selection is the process in which candidates Ior employment are divided into two classes
those who are to be oIIered employment and those who are not. In short, selection is the process oI
choosing a person suitable Ior the job out oI several persons.

The objective oI the selection decision is to chose the individual who can most successIully perIorm
the job Irom the pool oI qualiIied candidates. The selection procedures are the system oI Iunctions and
devices adopted in a given company to ascertain whether the candidate`s speciIication is matched with
the job speciIication and requirements or not. The selection procedures cannot be eIIective until and
unless:
1) Requirements oI the job to be Iilled, have been clearly speciIied (job analysis, etc)
2) Employee speciIications (physical, mental, social, and behavioral, etc) have been clearly speciIied.
3) Candidates Ior screening have been attracted.
Thus, the development oI job analyses, human resource planning and recruitment are necessary
prerequisites to the selection process. The breakdown in any oI these processes can make even the best
selection system ineIIective.
IMPORTANCE OF SELECTION
The importance oI selection may be judged Irom the Iollowing Iacts:-
Procurement of Qualified and Skilled orkers: - ScientiIic selection Iacilitates the procurement oI
well qualiIied and skilled workers in the organization. It is in the interest oI the organization in order to
maintain the supremacy over the other competitive Iirms. Selection oI skilled personnel reduces the
labour cost and increases the production. Selection oI skilled personnel also Iacilitates the expansion in
the size oI the business.
2 Reduce Cost of Training and Development:- Proper selection oI candidates reduces the cost oI
training because qualiIied personnel have better grasping power. They can understand the technique oI
work better and in less time. Further, the organization can develop diIIerent training programmes Ior
diIIerent persons on the basis oI their individual diIIerences, thus reducing the time and cost oI training
considerably.
Absence of Personnel Problems: - Proper selection oI personnel reduces personnel problems in the
organization. Many problems like labour turnover, absenteeism and monotony shall not be experienced
in their severity in the organization. Labour relation will be better because workers will be Iully
satisIied by the work. Skilled workers help the management to expand the business and to earn more
proIits and in turn management compensates, the workers with high wages, beneIits etc.
SELECTION PROCEDURE

Selection procedure employs several methods oI collecting inIormation about the candidate`s
qualiIication, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and
the like Ior judging whether a given applicant is or is not suitable Ior the job. ThereIore, the selection
procedure is not a single act but is essentially a series oI methods or stages by which diIIerent types oI
inIormation can be secured through various selection techniques. At each step, Iacts may come to light
which are useIul Ior comparison with the job requirement and employee speciIications.

Selection procedure is lengthy and time consuming particularly in the case oI supervisory post.
Following are the steps/ procedures oI selection:
ob Analysis: - Job analysis is the basis Ior selecting the right candidate. Every organization should
Iinalize the job analysis, job description, job speciIication and employee speciIication beIore proceeding
to the next step oI selection.
2 Application Form: - Application Form is also known as application blank. The technique oI
application blank is traditional and widely accepted Ior securing inIormation Irom the prospective
candidates. Where application Iorms are use, the data become a part oI the employee`s record. The
inIormation is generally required on the Iollowing items in the application Iorms: Personal background
inIormation, Educational inIormation, Work experiences, salary, personal details, expected salary and
allowances etc.
Preliminary Interview: - Preliminary or initial interview is oIten held in case oI 'at the gate
candidate. This interview usually oI short duration and is aimed at obtaining certain basic inIormation
with a view to identiIying the obvious misIits or unqualiIied. Thus preliminary interview is useIul as a
process oI eliminating the undesirable and unsuitable candidate. II the candidate seems to possess the
basic minimum requirements Ior eIIicient job perIormance, he is given an application Iorm Ior being
Iilled out by him.
4 Screening Application Form: - InIormation given in the application Iorm is used Ior selection
purposes. The applicant who seems to be not Iit Ior the job on the basis oI inIormation given in the
application blank is rejected out rightly at this stage. The applicants who have not Iurnished the required
inIormation may also be rejected. Applications will not be accepted aIter the close date. AIter the close
date oI the recruitment, the Job Expert Ior the hiring department and Human Resources will screen the
application Iorms Ior minimum education and qualiIication requirements. A recruitment date may be
extended iI there are no qualiIied candidates. Recruitments can also be open until the position is Iilled;
in this situation, applicants are reviewed and interviewed on a regular basis until an eligible candidate
can be selected and appointed to the available position.
5 ritten test:- The organization have to conduct written examination Ior the qualiIied candidates aIter
they are screened on the basis oI the application blanks so as to measure the candidate`s ability in
arithmetical calculations, to know the candidate`s attitude towards job, to measure the candidates
aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.
Intelligence test measures the individuals capacity or reasoning, verbal comprehension, numbers,
vocabulary, word Iluency etc. aptitude test measures individuals capacity or talent ability to learn a job
iI he is given adequate training.
Final interviewing: - Final interview is usually Iollowed by testing. This is the most essential step in
the process oI selection. In this step the interviewer matches the inIormation obtained about the
candidate through various means to the job requirements and to the inIormation obtained through his

own observation during the interview. The basic objective oI the interview is to measure the applicant
against the speciIic requirements oI the job. Interview must be conducted in a Iriendly atmosphere and
the candidate must be made to Ieel at ease. The interviewer should not ask unwarranted questions which
make the candidate nervous. It being the two way communication, the interviewee should also be given
a chance to ask questions iI he so likes, about the job and the organization.
7 Reference Checks: - AIter completion oI the Iinal interview, the personnel department will engage in
checking reIerences. Candidates are required to give the name oI reIerence in their application Iorms.
These reIerences may be Irom the individuals who are Iamiliar with the candidate`s academic
achievement or Irom the applicant`s previous employer, who is well versed with the applicant`s job
perIormance, and sometime Irom co-workers. II reIerence is checked in the correct manner, a great deal
can be learned about a person that an interview or tests cannot elicit. A good reIerence check used
sincerely Ietches useIul and reliable inIormation to the organization.
Physical Examination: - The candidates who have crossed the above hurdles are required to go Ior the
medical examination. This is very important because oI a person oI poor health cannot work
competently and the investment in him may go waste. Thus, a thorough medical examination is
essential.
9 Selection: - II a candidate successIully overcomes all the obstacles or tests given he would be declared
selected. A appointment letter will be given to him mentioning the terms oI employment, pay scales,
post on which selected etc.
MEANING AND DEFINITION OF PLACEMENT
Placement means oIIering oI the job to the Iinally selected candidate. One the employee is selected he
should be placed on a suitable job. According to Pigors and Myres, placement may be deIined as 'the
determination oI the job to which an accepted candidate is to be assigned, and his assignment to that
job. It is matching oI what the supervisor has reason to think he can dos with the job demands(job
requirements); it is matching oI what he imposes(in strain, working condition) and what oIIers is the
Iorm oI pay roll, companionship with other promotional possibilities etc. A proper placement reduced
the employee turnover, absenteeism and accident rate and improves the morale. Placement is not an
easy process. It is very diIIicult Ior a new employee who is quite unknown to the job and environment.
For this reason, the employee is generally put on a probation period ranging Irom one year to two years.
At the end oI the probation period, iI the employee show a good perIormance, he is conIirmed as a
regular employee oI the organization. Thus, the probation period or trial period is a transition period at
the end oI which management has to take decision whether the employee should be made regular or
discharged Irom the job.
PRINCIPLE OF PLACEMENT
Following principles are Iollowed at the time oI placement oI an employee:

1) The man should be placed on the job according to requirements oI the job. The job should not be
adjusted according to the qualiIications or requirements oI the man. 'Job Iirst, man next should be the
principle oI placement.
2) The job should be oIIered to the man according to his qualiIications. Neither higher, nor lower job
should be oIIered to the new employee.
3) The employee should be made conversant with the conditions prevailing in the industry and all things
relating to the job. He should also be made aware oI the penalties iI he commits a wrong.
4) While introducing the job to the new employee, an eIIort should be mad to develop a sense oI loyalty
and cooperation in him so that he may realize his responsibilities better towards the job and the
organization.
CAREER PLANNING AND DEVELOPMENT
INTRODUCTION:-
The term career planning is Irequently used in relation young boys and girls studying at the college
level. College students are expected to consider their qualities (physical and mental), psychological
make-up, likes and dislikes, inclinations, etc. and decide what they want to be in their liIe. In other
words, they should decide what they want to achieve in their liIe and adjust their education and other
activities accordingly. This means they have to plan their career. In such career planning, parents,
Iamily members and college teachers oIIer helping hand and guide young boys and girls in selecting the
most suitable career. Lot oI literature, psychological tests etc. are also available on career planning.
Even lectures, workshops and TV programmes are arranged Ior guiding students on career selection
(particularly aIter the declaration oI HSC results). Career planning enables them to use their
abilities/qualities Iully and make their liIe happy, prosperous and rich in quality. At present, even
experts are available to help youth in their career planning. IQ and other tests are also conducted Ior this
purpose.
The term career planning and development is used extensively in relation to business organizations.
It is argued that iI the organizations want to get the best out oI their employees, they must plan the
career development programmes in their organization eIIectively. Such programmes oIIer beneIits to
employees and also to the organizations. The employees will develop new skills will be available to the
organization. This type oI career planning can be described as organizational career planning.
MEANING OF CAREER (HAT IS CAREER?:-
A career is a sequence oI positions/jobs held by a person during the course oI his working liIe.
According to Edwin B. Flippo 'a career is a sequence oI separate but related work activities that
provide continuity, order and meaning to a person`s liIe. Career oI an employee represents various jobs
perIormed by him during the course oI his working liIe. This is described as career path. In the case oI
an ordinary worker, the career path includes the Iollowing job positions:

Unskilled worker Semi-skilled worker Skilled worker Highly skilled
worker Assistant Ioreman Foreman.

Employees (oI all categories) want to grow in their careers as this provides more salary, higher status
and opportunity to use knowledge, education and skills eIIectively. An individual with potentials joins a
Iirm not Ior job but Ior career development. An organization has to provide better opportunities to its
employees in their career development and also use their eIIicient services Ior the beneIit oI the
organization.
MEANING OF CAREER PLANNING (HAT IS CAREER PLANNING?:-Career
planning is one important aspect oI human resource planning and development. Every individual
who joins an organization desires to make a good career Ior himselI within the organization. He joins
the organization with a desire to have a bright career in terms oI status, compensation payment and
Iuture promotions. From the point oI view oI an organization, career planning and development have
become crucial in management process. An organization has to provide Iacilities/opportunities Ior the
career development oI individual employees.
II the organizations want to get the best out oI their employees, they must plan regularly the career
development programmes in their organizations. In brieI, career planning reIers to the Iormal
programmes that organizations implement to increase the eIIectiveness and eIIiciency oI the human
resources available. Career planning and development is the responsibility oI the HR department oI the
organization. As already noted, every person joining an organization has a desire to make career as per
his potentiality, ability, skills and so on.
NEED/PURPOSE/OBECTIVES OF CAREER PLANNING:-
To map out careers oI employees as per their ability and willingness and to train and develop them Ior
higher positions.
2 To attract and retain the right type oI persons in the organization.
To utilize available managerial talent within the organization Iully.
4 To achieve higher productivity and organizational development.
5 To provide guidance and assistance to employees to develop their potentials to the highest level.
To improve employee morale and motivation by providing training and opportunities Ior promotion.
SCOPE OF ORGANISATIONAL CAREER PLANNING:-
The Iollowing activities/areas are covered within the scope oI organizational career planning:
a) HUMAN RESOURCE FORECASTING AND PLANNING:-
Here, eIIorts will be made to identiIy the number oI employees required in Iuture. In addition, the
selection procedure will be adjusted with the overall strategic goals oI the organization.
b) CAREER INFORMATION:-

Here, inIormation relating to career opportunities (promotions, training Ior selI development, etc) will
be supplied to employees. Supplying career inIormation/opportunities has special signiIicance as this
motivates employees to grow and reach to higher position.
c) CAREER COUNSELLING:-
Such counselling is next to supplying career inIormation. Career counselling is possible by senior
executives through periodic discussions with their subordinates. Such career guidance encourages
subordinate employees to take interest in certain areas where suitable opportunities oI career
development are available. It is a type oI internal guidance and motivation oI employees Ior the
selection oI possible career paths. Such counselling is needed when employees have to plan their own
careers and develop themselves Ior career progress.
d) CAREER PATHING:-
Management now plans job sequences Ior transIers and promotions oI their employees. This makes
transIers and promotions systematically with advance inIormation to employees. Career pathing creates
suitable mental make up oI employees Ior selI development.
e) SKILL ASSESSMENT TRAINING:-
Training is essential Ior career planning and also Ior manpower development. Along with job analysis,
organizational and job manpower requirement analysis should be undertaken by the management. This
prepares proper background Ior the introduction oI career planning programmes Ior employees.
ADVANTAGES OF CAREER PLANNING:-
A properly designed system oI career planning can provide the Iollowing beneIits:
i. Career planning helps an employee to know the career opportunities available in an organization.
ii. Career planning encourages him to avail oI the training and development Iacilities in the organization so
as to improve his ability to handle new and higher assignments.
iii. Career planning involves a survey oI employee abilities and attitudes. It becomes possible, thereIore to
group together people talking on a similar wavelength and place them under supervisors who are
responsive to that wavelength.
iv. Career planning anticipates the Iuture vacancies that may arise due to retirement, resignation, death, etc.
at managerial level. ThereIore, it provides a Iairly reliable guide Ior manpower Iorecasting.
v. Career planning Iacilitates expansion and growth oI the enterprise. The employees required to Iill job
vacancies in Iuture can be identiIied and developed in time.
DISADVANTAGES/LIMITATIONS OF CAREER PLANNING:-
The main problems in career planning are as Iollows:
i. Career planning can become a reality when opportunities Ior vertical ability are available. ThereIore, it
is not suitable Ior a very small organization.
ii. Career planning is not an eIIective technique Ior a large number oI employees who work on the shop
Iloor, particularly Ior illiterate and unskilled workers.

iii. In Iamily business houses in India, members oI the Iamily expect to progress Iaster in their career than
their proIessional colleagues. This upset the career planning process.
iv. Systematically career planning becomes diIIicult due to Iavouritism and nepotism in promotions,
political intervention in appointments and reservations oI seats Ior scheduled castes/tribes and backward
classes.
HO TO INTRODUCE CAREER PLANNING PROGRAMME? (PROCESS OF
CAREER PLANNING:-
It is not easy to introduce career development programme at the level oI an organization. Moreover,
such career development planning is a continuous activity. What is happening in most oI the
organizations is that this concepts is given only lip service and theoretical importance. II the
organization wants to get the best out oI their employees, it must plan the career developments
programmes continuously and eIIectively in its organization.
DETAILS OF THE STEP IN CAREER PLANNING:-
ANALYSIS OF PERSONEL SITUATION:-
This is the Iirst step which needs to be completed beIore the introduction oI career planning programme.
This relates to a time Irom which career planning is to be introduced. Here, the base line will be
prepared to help the planners to make projections Ior the planning period and to help in the evaluation
oI plans. In order to analyze the present career situation, the Iollowing inIormation will be required:
i. Total number oI employees their age distribution, qualiIications, positions, specializations, etc.
ii. Structure broad as well as detailed and the qualiIications required Ior each grade.
iii. Personnel need oI the organization. (Category wise)
iv. Span oI control available within the organization.
v. Field staII at head oIIice with necessary details, and
vi. Facilitates available Ior training and development within and outside the organization.
The inIormation collected on these aspects serves as the base Ior the preparation oI career
development plan Ior the Iuture period.
1. ANALYSIS OF PESONNEL SITUATION
2. PROECTION OF PERSONNEL SITUATION
3. IDENTIFYING CAREER NEEDS
In this second step, an attempt is being made to Iind out the situation likely to develop aIter the
completion oI career development plan. This can be done on the basis oI assumption which can predict
what is likely to happen at the close oI the career development plan.
4. SELECTION OF PRIORITIES
5. DEVELOPMENT OF CAREER PLANS
6. RITE UP OF FORMULATED CAREER PLANS


7. MANAGERIAL PLANNING
8. IMPLEMENTATION
9. REVIE AND EVALUATION
10. FUTURE NEEDS
2 PROECTION OF PERSONNEL SITUATION:-
IDENTIFYING OF CAREER NEEDS:-
In this third step oI career development plan, eIIorts are made to Iind out precisely the career
development needs oI the Iuture period. It is possible to identiIy the scope and limitations oI career
development needs on the basis oI the data collected (through personnel inventory oI the organization,
employee potentials, and appraisal oI employees).
4 SELECTION OF PRIORITIES:-
It is rather diIIicult to meet all the needs oI the employees and the organization Ior career development
immediately i.e. through one career development plan. Naturally, there is a need to select the pressing
and urgent problems oI employees and organization. In addition, other Iactors such as technical,
Iinancial and administrative must be taken into consideration while Iinalizing the priorities.
5 DEVELOPMENT OF CAREER PLAN:-
This is the most important step in the whole process oI career developing plan. Such plan must describe
the Iollowing in concrete Iorm/Iorms:
a. What is to be attained/achieved?
b. The extent to which it is to be attained,
c. The employees involved,
d. The department in which the proposed plan will operate
e. The length oI time required the achieving the goals.
In order to execute the career development plan, the organization should:
a Introduce systematic policies and programmes oI staII training and career development Ior all
categories oI employees so as to enable them to:
I. Improve their level oI skill and knowledge
II. Gain wider experiences and
III. Assume higher responsibilities.
b Establish and eIIectively implement a system oI study leave
c Develop the experience oI the employees by encouraging their rotation Irom one region to another
d Take positive steps to encourage career development, such as:
I. Providing within the organization
II. Giving priorities in the Iilling oI vacancies in the Iollowing order Ior:
. promotion within the organization
2. TransIer within the organization

. Outside recruitment.
III. Removing artiIicial barriers to promotion
IV. Establishing a register oI employees Ior promotion on merit-cum-seniority basis
6) RITE-UP OF FORMULATED PLAN:-
AIter deciding the priorities oI career development plan, the next major step is to prepare a write up
(brieI report) oI the career plan. This writ-up should contain all necessary details such as schedule (time
sequence oI plan), procedures and other details so that the evaluation oI the plan will be easy and
meaningIul.
7) MONITORING PLANNING i.e. MONITORING OF CAREER DEVELOPMENT PLAN:-
Monitoring oI the plan is essential Ior its eIIective execution. Expected results/beneIits will be available
only when the plan is implemented properly. Planned (expected) targets and targets actually achieved
can be compared through suitable monitoring oI the plan. The gap between the two (i.e. short Ialls) can
be located quickly. In addition, suitable remedial measures can be taken to rectiIy the shortIalls.
8) IMPLEMENTATION (OF CAREER DEVELOPMENT PLAN:-
Implementation/execution oI the plan is an integral aspect oI planning process itselI. For eIIective
implementation, co-operation and co-ordination at all levels is necessary. The implementation needs
proper monitoring so as to avoid possible shortIalls.
9) REVIE AND EVALUATION OF CAREER PLANS:-
A plan needs periodical review. Such evaluation avoids mistakes, deIiciencies, etc during the
implementation stage. It is built-in device to measure the eIIectiveness oI the plan. Actual beneIits
available will be known only through such review and evaluation. Such evaluation should be done by
experts. It should be conducted systematically and also impartially.
10) FUTURE NEEDS:-
This is the last step/stage oI the current career development plan and the Iirst step/stage oI the next plan.
Here, on the basis oI the achievements oI the current plan, the career needs oI the Iuture period (oI
employees and also oI the organization) are estimated. The new priorities are decided and the details oI
the new career development plan are prepared. Planning is a continuous process/activity. This rule is
applicable to career development plans oI an organization.
CAREER STAGES:-
Education is thought oI in terms oI employment. People go Ior school and college education and
prepare Ior their occupation. Very Iew people stick to the same job throughout their liIe. Most oI them
switch job either within the organization or in some other organization. Chances are they change jobs,
depending on available opportunity, several times beIore retirement. Where opportunity is restricted
they continue with the same job. They go through the Iollowing stages:
EXPLORATION:-

Almost all candidates who start working aIter college education start around mid-twenties. Many a time
they are not sure about Iuture prospects but take up a job in anticipation oI rising higher up in the career
graph later. From the point oI view oI organization, this stage is oI no relevance because it happens
prior to the employment. Some candidates who come Irom better economic background can wait and
select a career oI their choice under expert guidance Irom parents and well-wishers.
2 ESTABLISHMENT:-
This career stage begins with the candidate getting the Iirst job getting hold oI the right job is not an
easy task. Candidates are likely to commit mistakes and learn Irom their mistakes. Slowly and gradually
they become responsible towards the job. Ambitious candidates will keep looking Ior more lucrative
and challenging jobs elsewhere. This may either result in migration to another job or he will remain
with the Same job because oI lack oI opportunity.
MID-CAREER STAGE:-
This career stage represents Iastest and gainIul leap Ior competent employees who are commonly called
'climbers. There is continuous improvement in perIormance. On the other hand, employees who are
unhappy and Irustrated with the job, there is marked deterioration in their perIormance. In other to show
their utility to the organization, employees must remain productive at this stage. 'climbers must go on
improving their own perIormance. Authority, responsibility, rewards and incentives are highest at this
stage. Employees tend to settle down inn their jobs and 'job hopping is not common.
4 LATE CAREER:-
This career stage is pleasant Ior the senior employees who like to survive on the past glory. There is no
desire to improve perIormance and improve past records. Such employees enjoy playing the role oI
elder statesperson. They are expected to train younger employees and earn respect Irom them.
5 DECLINE STAGE:-
This career stage represents the completion oI one`s career usually culminating into retirement. AIter
decades oI hard work, such employees have to retire. Employees who were climbers and achievers will
Iind it hard to compromise with the reality. Others may think oI 'liIe aIter retirement.
HIGH EXPLORATION ESTABLISHMENT MID-CAREER LATE CAREER DECLINE

LOW 25 35 45 55 60
AGE

STAGES IN CAREER DEVELOPMENT
CONCEPT/INTRODUCTION TO CAREER DEVELOPMENT:-
Career development consists oI the personal actions one undertakes to achieve a career plan. The
terms career development` and employee development` need to be diIIerentiated at this stage. Career
development looks at the long-term career eIIectiveness oI employees where as employee development
Iocuses oI eIIectiveness oI an employee in the immediate Iuture. The actions Ior career development
may be initiated by the individual himselI or by the organization.
INDIVIDUAL CAREER DEVELOPMENT:-
Career progress and development is largely the outcome oI actions on the part oI an individual.
Some oI the important steps that could help an individual cross the hurdles on the way up` may
include:
I. PERFORMANCE:-
Career progress rests largely on perIormance. II the perIormance is sub-standard, even modest career
goals can`t be achieved.
EXPOSURE:-
Career development comes through exposure, which implies becoming known by those who decide
promotions, transIers and other career opportunities. You must undertake actions that would attract the
attention oI those who matter most in an organization.
II. NETORKING:-
Networking implies proIessional and personal contacts that would help inn striking good deals
outside (e.g., lucrative job oIIers, business deals, etc.). Ior years men have used private clubs,
proIessional associations, old-boy networks to gain exposure and achieve their career ambitions.
III. LEVERAGING:-
Resigning to Iurther one`s career with another employer is known as leveraging. When the
opportunity is irresistible, the only option leIt is to resign Irom the current position and take up the new
job (opportunity in terms oI better pay, new title, a new learning experience, etc.). however, jumping the
jobs Irequently (job-hopping) may not be a good career strategy in the long-run.
IV. LOYALTY TO CAREER:-
ProIessionals and recent college graduates generally jump jobs Irequently when they start their
career. They do not think that career-long dedication to the same organization may not help them Iurther
their career ambitions. To overcome this problem, companies such as InIosys, NIIT, WIPRO (all
inIormation technology companies where the turnover ratios are generally high) have come out with
lucrative, innovative compensation packages in addition to employee stock option plans Ior those who
remain with the company Ior a speciIied period.
V. MENTORS AND SPONSORS:-

A mentor is, generally speaking, an older person in a managerial role oIIering inIormal career advice
to a junior employee. Mentors take junior employees under their protege and oIIer advice and guidance
on how to survive and get ahead in the organization. They act as role models. A sponsor, on the other
hand, is someone in the organization who can create career development opportunities.
ORGANISATIONAL CAREER DEVELOPMENT:-
The assistance Irom managers and HR department is equally important in achieving individual career
goals and meeting organizational needs. A variety oI tools and activities are employees Ior this purpose.
SELF-ASSESSMENT TOOLS:-
Here the employees go through a process in which they think through their liIe roles, interests, skills
and work attitudes and preIerences. They identiIy career goals, develop suitable action plans and point
out obstacle that come in the way. Two selI-assessment tools are quite commonly used in the
organizations. The Iirst one is called the career-planning workshop. AIter individuals complete their
selI-assessment, they share their Iindings with others in career workshops. These workshops throw light
on how to prepare and Iollow through individual career strategies. The second tool, called as a career
workbook, consists oI a Iorm oI career guide in the question-answer Iormat outlining steps Ior realizing
career goals. Individuals use this company speciIic, tailor-made guide to learn about their career
chances. This guide, generally throws light on organization`s structure, career paths, qualiIications Ior
jobs and career ladders.
a INDIVIDUAL COUNSELLING:-
Employee counselling is a process whereby employees are guided in overcoming perIormance
problems. It is usually done through Iace-to-Iace meetings between the employee and the counselor or
coach. Here discussions oI employees` interests goals, current job activities and perIormance and career
objectives take place. Counselling is generally oIIered by the HR department. Sometimes outside
experts are also be called in. iI supervisors act as coaches they should be given clearly deIined roles and
training. This is, however, a costly and time-consuming process.
a EMPLOYEE DEVELOPMENT PROGRAMMES:-
These consist oI skill assessment and training eIIorts that organizations use to groom their
employees Ior Iuture vacancies. Seminars, workshops, job rotations and mentoring programmes are
used to develop a broad base oI skills as a part oI such developmental activities.
b CAREER PROGRAMMES FOR SPECIAL GROUPS:-
In recent years, there is growing evidence regarding dual career Iamilies developing tensions and
Irictions owing to their inability to reconcile the diIIerences between the Iamily roles and work
demands. When we talk oI dual career couples (a situation where both husband and wiIe have distinct
careers outside the home) certain puzzling questions arise naturally: whose career is important who
takes care oI children what iI the wiIe gets a tempting promotion in another location who buys
groceries and cleans the house iI both are busy, etc. realizing these problems, organizations are

providing a place and a procedure Ior discussing such role conIlicts and coping strategies. They are
coming out with schemes such as part-time work, long parental leave, child care centers, Ilexible
working hours and promotions and transIers in tune with the demands oI dual career conIlicts.
CAREER DEVELOPMENT ACTIONS:-
a OB PERFORMANCE:-
Employee must prove that his perIormance on the job is to the level oI standards established, iI he wants
career progress.
b EXPOSURE:-
Employee`s desire Ior career progress should expose their skills, knowledge, qualiIications,
achievements, perIormance etc., to those who take the decision about career progress.
c RESIGNATIONS:-
Employees may resign the present job in the organization, iI they Iind that career opportunities
elsewhere are better than those oI the present organization.
d CHANGE THE OB:-
Employees who put organizational loyalty above career loyalty may change the job in the same
organization are better than those in the present job.
e CAREER GUIDANCE:-
And counselling provides inIormation, advice and encouragements to switch over to other career or
organization, where career opportunities are better.
EMPLOYEE TRAINING
INTRODUCTION:-
Training plays an important role in human resource development. It comes next to recruitment and
selection. In Iact, the main purpose oI training is to develop the human resources present within the
employees. In brieI, training is the watchword oI present dynamic business world. Training is necessary
due to technological changes rapidly taking place in the industrial Iield. New machines, new methods
and new techniques are introduced in the production, marketing and other aspect oI business.
Training is Ior developing overall personality oI an employee. It also creates positive attitude
towards Iellow employees, job and the organization where he is working. Training is the responsibility
oI the management as it is basically Ior raising the eIIiciency and productivity oI employees.
The purpose oI training is to achieve a change in the behaviour oI those trained and to enable them to
do their jobs in a better way. The trainees will acquire new manipulative skills, technical knowledge,
problem solving ability or attitudes etc. training is not a one step process but is a continuous or never-
ending process. Training makes newly recruited workers Iully productive in the minimum oI time. Even
Ior old workers, training is necessary to reIresh them and enable them to keep up with new methods and
techniques. In short training is the act oI improving or updating the knowledge and skill oI an employee
Ior perIorming a particular job.

DEFINITION OF TRAINING:-
According to dwin FIippo, training is "the act of increasing the knowledge and skill of an
employee for doing a particular job.
PRINCIPLES OF EMPLOYEE TRAINING:-
A sound training programme must possess the Iollowing characteristics:
. Training programme should be less expensive.
2. Training programme should be developed Ior all in the organization and not Ior a particular group.
. The programme should be conducted by a senior and experienced supervisor or executive oI the
concern or by the training director who is incharge oI the training section under personnel department.
4. Training programme should be designed taking in view the interests oI both employer and employees.
5. It is not essential to Iollow the single method oI training Ior all the employees. The purpose oI training
is to develop the men and thereIore more than one method may be Iollowed Ior diIIerent groups.
. Training should be Iollowed by a reward. A reward should be provided at the conclusion oI the training
such as promotion or a better job so that employees may be motivated.
7. SuIIicient time should be provided to practice what has been learned by the employees.
MEANING AND IMPORTANCE:-
AIter an employee is selected, placed and introduced he or she must be provided with training
Iacilities. Training is the act oI increasing the knowledge an skill oI an employee Ior doing a particular
job. Training is a short-term educational process and utilizing a systematic and organized procedure by
which employees learn technical knowledge and skills Ior a deIinite purpose. In other words training
improves, changes, moulds the employee`s knowledge, skill, behaviour, aptitude, and attitude towards
the requirements oI the job and organization. Training reIers to the teaching and learning activities
carried on Ior the primary purpose oI helping members oI an organization, to acquire and apply the
knowledge, skills, abilities and attitudes needed by a particular job and organization.
Training is the most important technique oI human resource development. As stated earlier, no
organization can get a candidate who exactly matches with the job and the organizational requirements.
Hence, training is important to develop the employee and make him suitable to the job. Trained
employees would be a valuable asset to an organisation. Organizational eIIiciency, productivity,
progress and development to a greater extent depend on training. Organizational objectives like
viability, stability and growth can also be achieved through training.
NEED FOR EMPLOYEE TRAINING:-
The need Ior training oI employee is universally accepted and practical training in the Iorm oI
inIormation, instructions and guidance is given to all categories oI employees. It is a must Ior raising
eIIiciency oI employees. Training is necessary in the present competitive and ever changing industrial
world. SpeciIically, the need Ior training arises due to the Iollowing reasons:

I. To match the employee specifications with the job requirements and organizational needs:
Management Iinds deviations between employee`s present speciIications and the job requirements and
organizational needs. Training is needed to Iill these gaps by developing and moulding the employee`s
skill, knowledge, attitude, behaviour etc. to the tune oI the job requirements and organizational needs.
II. Organizational viability and the transformation process: The primary goal oI most oI the
organizations is that their viability is continuously inIluenced by environmental pressure. II the
organisation does not adapt itselI to the changing Iactors in the environment, it will lose its market
share. II the organisation desires to adapt these changes, Iirst it has to train the employees to impart
speciIic skills and knowledge in order to enable them to contribute to the organizational eIIiciency and
to cope with the changing environment.
III. Technological advances: Every organization in order to survive and to be eIIective should adopt the
latest technology, i.e., mechanization, computerization and automation. Adoption oI latest technological
means and methods, will not be complete until they are manned by employees possessing skill to
operate them. So, organization should train the employees to enrich them in the areas oI changing
technical skills and knowledge Irom time to time.
IV. Organizational complexity: With the emergence oI increased mechanization and automation,
manuIacturing oI multiple products and by-products or dealing in services oI diversiIied lines, extension
oI operations to various regions oI the country or in overseas countries, organisation oI most oI the
companies has become complex. This creates the complex problems oI co-ordination and integration oI
activities adaptable Ior and adaptable to the expanding and diversiIying situations. This situation calls
Ior training in the skills oI co-ordination, integration and adaptability to the requirements oI growth,
diversiIication and expansion.
V. Human relations: Trends in approach towards personnel management has changed Iorm the
commodity approach to partnership approach, crossing the human relations approach. So today,
managements oI most oI the organizations has to maintain human relations besides maintaining sound
industrial relations although hitherto the managers are not accustomed to deal with the workers
accordingly. So training in human relations is necessary to deal with human problems (including
alienation, inter-personal and inter-group conIlicts etc.) and to maintain human relations.
VI. Change in the job assignment: Training is also necessary when the existing employee is promoted to
the higher level in the organisation and when there is some new job or occupation due to transIer.
Training is also necessary to equip the old employees with the advanced disciplines, techniques or
technology.
OBECTIVES/PURPOSES OF EMPLOYEE TRAINING:-
1) To raise eIIiciency and productivity oI employees and the organization as a whole. This means to
maintain and improve the work perIormance oI employees.

2) To create a pool oI well trained, capable and loyal employees at all levels and thereby to make provision
to meet the Iuture needs oI an organization.
3) To provide opportunities oI growth and selI-development (career planning) to employees and thereby to
motivate them Ior promotion and other monetary beneIits. In addition, to give saIety and security to the
liIe and health oI employees.
4) To avoid accidents and wastages oI all kinds. In addition, to develop balanced, healthy and saIety
attitudes among the employees.
5) To meet the challenges posed by new developments in the Iield oI science and technology.
6) To improve the quality oI production and thereby to create market demand and reputation in the
business world.
7) To develop positive attitude and behaviour pattern required by an employee in order to perIorm a given
job eIIiciently. In other words, the purpose oI training is to improve the culture oI the organisation.
8) To develop certain personal qualities among employees which can serve as personal assets on long term
basis.
TYPES OF EMPLOYEE TRAINING:-
1) INDUCTION (ORIENTATION TRAINING:-
Induction training is basically Ior introducing the organisation to newly appointed employees. It is a
very short inIormative type oI training given immediately aIter joining the organization. It creates a
Ieeling oI involvement in the minds oI newly appointed employees. For induction training, inIormation
booklets are issued and short inIormative Iilms are shown. In addition, lecture by personnel
manger/HRD manger is also arranged. Induction training creates Iavourable impression on the newly
appointed employees and this impression remains in their mind over a long period.
2 OB TRAINING:-
Job training relates to speciIic job which the worker has to handle. It gives inIormation about machines,
process oI production, instructions to be Iollowed, methods to be used and precautions to be taken while
perIorming the job. This training develops skills and conIidence among the workers and enables them to
perIorm the job eIIiciently.
TRAINING FOR PROMOTION:-
Promotion means giving higher position. Training must be given Ior perIorming duties at a higher level
eIIiciently. This Iacilitates easy and quick adjustment with the new job and also develops new insight
into the duties and responsibilities assigned. For this, training is given aIter promotion and beIore
actually joining the new assignment. This training is speciIic, precise and oI short duration.
4 REFRESHER TRAINING:-
The purpose oI reIresher training is to reIresh the proIessional skills, inIormation and experience oI
persons occupying important executive positions. It gives inIormation about new developments

andtechniques to trainees and enables them to use new methods, techniques and procedures Ior raising
eIIiciency.
CORRECTIVE TRAINING:-
Corrective training is necessary when employees violate company rules and procedures. For example,
absence without prior sanction or smoking in a 'No smoking area or not using saIety devices while
operating dangerous machines. Here, the behaviour oI employee cannot be changes simply by
disciplinary action. The manager should handle the problem with treatment that corrects the outlook
rather than giving punishment. The manager should criticize the act and not the individual. He should
motivate concerned individual to correct his behaviour.
SELECTION OF TRAINEES:-
Once you have decided what training is necessary and where it is needed, the next decision is who
should be trained? For a small business, this question is crucial. Training an employee is expensive,
especially when he or she leaves your Iirm Ior a better job. ThereIore, it is important to careIully select
who will be trained.
Training programs should be designed to consider the ability oI the employee to learn the material
and to use it eIIectively, and to make the most eIIicient use oI resources possible. It is also important
that employees be motivated by the training experience. Employee Iailure in the program is not only
damaging to the employee but a waste oI money as well. Selecting the right trainees is important to the
success oI the program.
TRAINING GOALS:-
The goals oI the training program should relate directly to the needs outlined above. Course
objectives should clearly state what behavior or skill will be changed as a result oI the training and
should relate to the mission and strategic plan oI the company. Goals should include milestones to help
take the employee Irom where he or she is today to where the Iirm wants him or her in the Iuture.
Setting goals helps to evaluate the training program and also to motivate employees. Allowing
employees to participate in setting goals increases the probability oI success.
METHODS OF EMPLOYEE TRAINING:-
As a result oI research in the Iield oI training, a number oI programmes are available. Some oI these
are new methods, while others are improvements over the traditional methods. The training programmes
commonly used to train operative and supervisory personnel are discussed below. These programmes
are classiIied into on-the-job and oII-the-job training programmes.
ON-THE-OB TRAINING METHODS
This type oI training, also known as job instruction training, is the most commonly used method.
Under this method, the individual is placed on a regular job and taught the skills necessary to perIorm
that job. The trainee learns under the supervision and guidance oI a qualiIied worker or instructor. On-
the-job training has the advantage oI giving Iirst hand knowledge and experience under the actual

working conditions. The problem oI transIer oI trainee is also minimized as the persons learns on-the-
job. On-the-job training methods include job rotation, coaching, job instruction or training through step-
by-step and committee assignments.
a OB ROTATION:-
This type oI training involves the movement oI the trainee Irom one job to another. The trainee receives
job knowledge and gains experience Irom his supervisor or trainer in each oI the diIIerent job
assignments. Though this method oI training is common in training managers Ior general management
positions, trainees can also be rotated Irom job to job in workshop job. This method gives an
opportunity to the trainee to understand the problems oI employees on other jobs and respect them.
b COACHING:-
The trainee is placed under a particular supervisor who Iunctions as a coach in training the individual.
The supervisor provides Ieedback to the trainee on his perIormance and oIIer him Ior suggestions Ior
improvement. OIten the trainee share some oI the duties an responsibilities oI the coach and relieves
him oI his burden. A limitation oI this method oI training is that the trainee may not have the Ireedom or
opportunity to express his own ideas.
c OB INSTRUCTION:-
This method is also known as training through step by step. Under this method, the trainer explains to
the trainee the way oI doing the job, job knowledge and skills and allow him to do the job. The trainer
appraises the perIormance oI the trainee, provides Ieedback inIormation and corrects the trainee.
d COMMITTEE ASSIGNMENTS:-
Under the committee assignments, a group oI trainees are given and asked to solve an actual
organizational problem. The trainees solve the problem jointly. It develops team work.
OFF-THE-OB METHODS
Under this method oI training, the trainee is separated Iorm the job situation and his attention is
Iocused upon learning the material related to his Iuture job perIormance. Since the trainee is not
distracted by job requirements, he can place his entire concentration on learning the job rather than
spending his time in perIorming it. There is an opportunity Ior Ireedom oI expression Ior the trainees.
OII-the-job training methods are as Iollows:
a VESTIBUTE TRAINING:-
In this method, actual work conditions are simulated in a class room. Material, Iiles and equipments
those are used in actual job perIormance are also used in training. This type oI training is commonly
used Ior training personnel Ior clerical and semi-skilled jobs. The duration oI this training ranges Irom
days to a Iew weeks. Theory can be related to practice in this method.
b ROLE PLAYING:-
It is deIined as a method oI human interaction that involves realistic behaviour in imaginary situations.
This method oI training involves action, doing and practice. The participants play the role oI certain

characters, such as the production manager, mechanical engineer, superintendents, maintenance
engineers, quality control inspectors, Ioreman, workers and the like. This method is mostly used Ior
developing interpersonal interactions and relations.
c LECTURE METHOD:-
The lecture is a traditional and direct method oI instruction. The instructor organizes the material and
gives it to a group oI trainees in the Iorm oI a talk. To be eIIective, the lecture must motivate and create
interest among the trainees. An advantage oI lecture method is that it is direct and can be used Ior a
large group oI trainees. Thus, costs and time involved are reduced.
d CONFERENCE OR DISCUSSION:-
It is a method in training the clerical, proIessional and supervisory personnel. This method involves a
group oI people who pose ideas, examine and share Iacts, ideas and data, test assumptions, and draw
conclusions, all oI which contribute to the improvement oI the job perIormance. Discussion has the
distinct advantage over the lecture method, in that the discussion involves two-way communication and
hence Ieedback is provided. The participants Ieel Iree to speak in small groups. The success oI this
method depends on the leadership qualities oI the person who leads the group.
ADVANTAGES OF EMPLOYEE TRAINING:-
Training is advantageous not only to the organization but also to the employees.
1. INCREASE IN AGE EARNING CAPACITY:-
Training helps the employees in acquiring new knowledge and job skills. In this way, training increases
their market value and wage earning power. This increases their pay and status.
2. OB-SECURITY:-
Continued training can help an employee to develop his ability to learn- adapting himselI to new work
methods, learning to use new kinds oI equipment and adjusting to major changes in job contents and
work relationship.
3. CHANCES FOR PROMOTION:-
Training also qualiIies the employees Ior promotion to more responsible jobs.
4. FOLLO UP OF SELECTION PROCEDURE:-
Training is a Iollow up oI selection procedure. It helps in choosing the most appropriate individuals Ior
diIIerent jobs. Training can be used in spotting out promising men and in removing deIects in selection
process.
5. BETTER PERFORMANCE:-
Training brings about an improvement oI the quality and quantity oI output by increasing the skill oI the
employees. Training makes the Iresh and old employees more skilled and accurate in perIormance oI
their work.
. REDUCTION IN COST OF PRODUCTION:-

II the employees are given proper training the need Ior supervision is lessened. Training does not
eliminate the need Ior supervision but it reduces the need Ior detailed and constant supervision. A well
trained employee is selI-reliant in his work because he knows what to do and how to do it.
EVALUATION OF TRAINING PROGRAMME:-
The process oI training evaluation has been deIined as 'any attempt to obtain inIormation on the
eIIects oI training perIormance, and to assess the value oI training in the light oI that inIormation.
Evaluation leads to controlling and correcting the training programme. Hamblin suggested Iive levels at
which evaluation oI training can take place, viz., reactions, learning, job behaviour, organization and
ultimate value.
i. REACTIONS:-
Training programme is evaluated on the basis oI trainee`s reactions to the useIulness oI coverage oI the
matter, depth oI the course content, method oI presentation, teaching methods etc.
ii. LEARNING:-
Training programme, trainer`s ability and trainee ability are evaluated on the basis oI quantity oI content
learned and time in which it is learned and the learner`s ability to use or apply, the content he learned.
iii. OB BEHAVIOUR:-
This evaluation includes the manner and extent to which the trainee has applied his learning to his job.
iv. ORGANISATION:-
This evaluation measures the use oI training, learning and change in the job behaviour oI the
department/organization in the Iorm oI increased productivity, quality, morale, sales turnover and the
like.
v. ULTIMATE VALUE:-
It is the measurement oI ultimate result oI the contributions oI the training programme to the company
goals like survival, growth, proIitability etc., and to the individual goals like development oI personality
and social goals like maximizing social beneIit.
ORGANISED TRAINING PROGRAMME IN AN INDUSTRY:-
It is not possible to suggest a training programme equally good Ior each and every organisation.
Training programmes diIIer on the basis oI many individual characteristics oI the organisations and the
employees usually in the organisation oI training programmes. The Iollowing steps are taken to organise
the training programme:
IDENTIFYING THE TRAINING NEEDS:-
Training programme should be set up only aIter having decided the decided the clear-cut objective in
mind. A training programme should be established only when it is Ielt that it would assist in the solution
oI speciIic operational problems. The most important step is to make a thorough analysis oI the entire
organisation, its operations and manpower resources available in order to Iind out 'the trouble spots
where training may be needed.
a ANALYSING OBS AND MEN:-

II the men are less capable to perIorm the particular jobs they can be given training to increase their
skills. Jobs and worth oI the men should be analysed through job analysis and perIormance appraisal.
b IDENTIFYING PRODUCTION PROBLEMS:-
Production problems like low productivity, poor quality, high cost, high rate oI absenteeism, labour
turnover etc. should be identiIied to indicate the need Ior training.
c COLLECTING OPINIONS:-
Opinions should be obtained Irom the management and the working people through interviews or
through questionnaire regarding necessary and desirable training programmes.
2) GETTING READY FOR THE OB:-
Following are the steps taken in this regard:
a) IDENTIFYING THE TRAINEE:-
Under this step it is to be decided who is to be trained. who is to be trained the new comer or the older
employee or the supervisory staII or all oI them selected Irom diIIerent departments. The proper
selection oI trainees is very important to obtain permanent and gainIul results oI training. A trainee
should be trained Ior the kind oI job he likes and is suitable to perIorm. CareIul screening oI candidates
Ior training raises the eIIectiveness oI the training work. Trainee should be given the proper background
inIormation beIore he starts learning new job skills and knowledge. Trainer should explain the trainee
the importance oI the job, its relationship with the work Ilow and the importance oI training.
b SELECTION OF TRAINING METHOD:-
Now it is advisable to lay down which method is to be adopted Iro the training. DiIIerent methods oI
training may be suggested Ior the diIIerent levels oI personnel. Unskilled workers may be trained on the
job. On-the-job and apprenticeship training may be awarded, to skilled and semi-skilled workers. For
supervisory and executive personnel On-the-job and OII-the-job methods such as role-playing, lectures
and seminars etc. may be recommended.
c) PREPARATION OF TRAINER OR INSTRUCTOR:-
The success oI the training programme much depends upon the instructor. Instructor must be well-
qualiIied and may be obtained Irom within or outside the organization. It should be decided beIorehand
what is to be taught and how. He should be able to divide the job into logical parts so that he may teach
one part at a time without losing his perspective oI the whole.
As because training must be based upon the needs oI the organization thereIore, the trainer must have a
clear-cut picture oI the objectives oI training in mind. It should not be in a vacuum. Trainer needs
proIessional expertise in order to IulIill his responsibility. He should also encourage the question Irom
the trainees.
d) TRAINING MATERIAL:-
There should always be the training material with the instructor. Training materials may include some
text or written materials as a basis Ior instruction, review and reIerence. This may be prepared in the
training section with the help oI supervisors. The written material should be distributed among the

trainees so that they may come prepared in the lecture class and may be able to understand the operation
quickly and remove their doubts, iI any.
e) TRAINING MATERIAL:-The length oI training period depends upon the skill oI the trainees,
purpose oI the training, trainee`s learning capacity and the training media used. Generally no single
session should last longer than two hours. The time oI training whether beIore or aIter or during
working hours should be decided by the personnel manager taking in view the loss oI production and
beneIits to be achieved by training.
2 PREPARATION OF THE LEARNER:-
This step consists:
i. The putting the learner at case so that he does not Ieel nervous because oI the Iact that he is on a new
job,
ii. In stating the importance oI ingredients oI the job and its relationship towards Ilow,
iii. In explaining he is being taught,
iv. In creating interest and encouraging questions, Iinding out what the learner already knows about his job
or other jobs,
v. In explaining why oI the whole job and relating it to some job the worker already knows,
vi. In planning the learner as close to his normal working position as possible, and
vii. In Iamiliarizing him with the equipment, materials tools and trade terms.
PRESENTATION OF OPERATIONS AND KNOLEDGE:-
This is the most important step in a training programme. The trainer should clearly tell, show, illustrate
and question I order to put over the new knowledge and operations. The learner should be told oI the
sequence oI the entire job and why each step in its perIormance is necessary instructions should be
given clearly, completely and patiently. Trainer should demonstrate or make use oI audio-visual aids
and should ask the trainee to repeat the operations
4 PERFORMANCE TRY-OUT:-
Under this, the trainee is asked to go through the job several times slowly, explaining him each step.
Mistakes are corrected and iI necessary some complicated steps are taken Ior the trainee Ior the Iirst
time. Then the trainee is asked to do the job, gradually building up skill and speed. The trainee is then
tested and the eIIectiveness oI a training programme evaluated.
5 FOLLO-UP:-
On the completion oI training programme trainees should be placed to the job. The supervisor should
have a constant vigil on the person still Iacing any diIIiculty on the job, he must be given Iull guidance
by the immediate supervisor and should be initiated to ask questions to remove the doubts.




COLLECTIVE BARGAINING
INTRODUCTION
The phrase Collective bargaining` is coined by Sydney & Beatrice Webb. According to them
collective bargaining is a method by which trade unions protect & improve the conditions oI
their members` working lives.
BeIore the Industrial Revolution, the employer, more or less, enjoyed unquestioned powers on
matters relating to wage, working conditions & other matters aIIecting employees. The week
bargaining strength oI employees tempted them, on occasions, to exploit the vulnerable
situation to their advantage. Workers as a result became restless & widespread protests
Iollowed. Governmental intervention was oI little help. Workers realized the importance oI
Iighting jointly on all work-related matters. This collective Iighting spirit is behind the back oI
collective bargaining. With the growth oI union movement all over the globe & the emergence
oI employers` associations, the collective bargaining process has undergone signiIicant changes.
Both parties have, more or less, realized the importance oI peaceIul co-existence Ior their
mutual beneIit & continued progress.
OBECTIVES
The main objectives oI Collective bargaining are given below:
To settle disputes / conIlicts relating to wages & working conditions.
To protect the interests oI workers through collective plan.
To resolve the diIIerences between workers & management though voluntary negotiations &
arrive at a customer.
To avoid third party intervention in matters relating to employment.
Functions of Collective Bargaining
Collective bargaining plays an important role in preventing industrial disputes, setting these
disputes & maintaining industrial peace by perIorming the Iollowing Iunctions:
Increase the economic strength oI employees & management.
Establish uniIorm conditions oI employment.
Secure a prompt & Iair redressal oI grievances.
Lay down Iair rates oI wages & other norms oI working conditions.
Achieve an eIIicient Iunctioning oI the organization.
Promote the stability & prosperity oI the company.
It provides a method oI the regulation oI the conditions oI employment oI those who are directly
concerned about them.

It provides a solution to the problem oI sickness in the industry & ensures old age pension
beneIits & other Iringe beneIits.
It builds up a system oI industrial jurisprudence by introducing civil rights I the industry. In
other words, it ensures that the management is conducted by rules rather than by arbitrary
decisions.










COLLECTIVE BARGAINING PROCESS
There are two stages in collective bargaining, viz., (i) the negotiation stage & (ii) the stage oI
contract administration.
. Negotiation
(a Identification of Problems
The nature oI the problem inIluences the whole process-whether the problem is very important
that is to be discussed immediately or it can be postponed Ior some other convenient time,
whether the problem is minor that it can be solved with the other party`s acceptance on its
presentation & does not need to involve the long process oI collective bargaining process etc.
(b Preparing for Negotiations
When it becomes necessary to solve the problem through collective bargaining process, both the
parties prepare themselves Ior negotiations.
(c Negotiations of Agreement
Usually there will be a chieI negotiator who is Iorm the management side. He directs & presides
over the process. The chieI negotiator presents the problem, its intensity & nature & the views
oI both parties. When a solution is reached at, it is put on the paper, taking concerned
legislations into consideration. Both parties concerned sign the agreement which, in tern,
become a binding contract Ior both the parties.
2. Contract Administration

Implementation oI the contract is as important as making a contract. Management usually
distributes the printed contract, its terms & conditions throughout the organization. The union
takes steps to see that all the workers understand the contract & implement it. From time to time
depending upon changing circumstances, both the parties can make mutually acceptable
amendments.
SUGGESTIONS FOR EFFECTIVE IMPLIMENTATION OF COLLECTIVE BARGAINING
Unions should be made strong by creating awareness among workers.
InterIerence oI political leaders should be avoided. The unions should separate themselves Irom
politics.
Govt. should make eIIorts Ior the growth oI collective bargaining. Adjudication should be used
only as a last resort. Govt. can make legislation Ior compulsory collective bargaining beIore
resorting to adjudication.
Management should develop a positive attitude toward unions. Much headway has already been
made in this direction. Presently, managers are mostly aware oI the rights oI workers. They are
also realizing how important cooperation between management & workers Ior the eIIective
Iunctioning oI an organization. As such, they are now encouraging negotiations & amicable
solutions.
INDUSTRIAL CONFLICTS
All the issues reIer to collective bargaining may not be settled to the satisIactions oI both the
parties. Such issues result in Industrial ConIlicts.
DEFINITION OF DISPUTE / CONFLICT
According to the Industrial Disputes Act, 1947, Section 2(k), 'Industrial dispute means any
dispute or diIIerence between employers & employers, or between employers & workmen or
between workmen & workmen, which is connected with the employment or non employment or
term oI employment or with the conditions oI labour oI any person.
CAUSES OF INDUSTRIAL CONFLICTS
It is not easy to identiIy a single Iactor as a cause oI industrial conIlicts as multiIarious causes
blended together result in industrial disputes. Deep seated & more basic causes oI disputes can
be identiIied through in depth probe, though surIace maniIestations appear to be responsible Ior
conIlicts. The relative importance oI these causes, when more than presents, is oIten very
diIIicult to gauge.
According to Mukherjee, 'The development oI capitalistic enterprise, which means the control
oI the tools oI production by the small entrepreneur class has brought to the Iore the acute
problem oI Iriction between management & labour throughout the world.

Causes oI industrial conIlicts may be grouped into Iour categories,
Industrial Iactors,
Management`s attitude towards workers,
Government machinery &
Other causes.
TYPES OF INDUSTRIAL CONFLICT
Strike
A strike is a spontaneous and concerted withdrawal oI the labour Irom production temporarily.
It is a collective stoppage oI work by group oI workers Ior pressuring their employer to accept
certain demands. The industrial disputes act 1947 has deIine a strike as 'an assertion oI work by
a body oI persons. employed in an industry acting in combination, or a concerted reIusal or a
reIusal under a common understanding oI any no oI persons who are or have been so employed
to continue to work or to accept employment. Strikes are oI several types,
Sympathetic strike
When a strike is undertaken to show sympathy with workers in other industries, it is called as
sympathetic strike.
General strike
It is a strike by all or most oI the unions in a industry or a region
UnoIIicial strike
It is a strike undertaken without the consent oI the unions.
Sectional strike
It is reIusal oI a section oI a given class oI workers to perIorm their normal duties.
Bumper strike
It is a strike when the unions plan to paralyse the industry, Iirm by Iirm, the order being chosen
by the union. Such strikes are supported by the contributions oI those who are still in work.
Sit down strike (also called stay-in, tool down, pen down strike)
It is a strike in which workers cease to perIorm this duties but do not leave the place oI work.
Slow-down strike
Known as a go-slow` tactic the workers do not stop working but put brakes to the normal way
oI doing things.
Lightning strike
Out oI provocation, workers may go on strike without notice or at very short notice. There is an
element oI surprise in such cat-call strikes.

Hunger strike
To gain sympathy Irom the public & get noticed by the employer, workers may decide to Iorego
Iood Ior a speciIied period. Small batches oI workers may also go on a relay hunger strike in a
sequential order. Such non-violence protests generally bring moral pressure on employers to
iron out the diIIerences with quickly.
Lock-outs
Lock-out is the counterpart oI strike. It is a weapon available to the employer to close down the
Iactory till the workers agree to resume work on the conditions lead down by the employer. The
industrial Dispute Act oI 1947 deIined it as 'the closing oI a place oI an employment, or the
suspension oI work or the reIusal oI an employer to continue to employ any number oI persons
employed by him. II it is impossible to meet the demand oI workers, employers may decide to
go Ior lock-out. He may also draw the shutter down so as to bring psychological pressure on the
workers to agree to his condition or Iace closure oI the unit.
Gherao
Gherao means to surround. In this method a group oI workers initiate collective action
aimed at preventing members oI the management Irom leaving the oIIice. This can happen
outside the Iactory premises too. The persons who are gheraoed are not allowed to move Ior a
long time, sometimes without Iood or water. The National Commission on Labour, while
reIusing to accept it as a Iorm oI industrial protest, opined that gheraos tend to inIlict physical
duress (as against economic pressure) on the persons aIIected & endanger not only industrial
harmony but also create problems oI law & order.
Picketing & Boycott
In picketing workers carry / display signs, banners & play card (in connection with the
dispute) & prevent others Irom entering the place oI work & persuade others to join the strike.
Boycott aims at disrupting the normal Iunctioning oI an enterprise. Through IorceIul appeals &
negative behavioral acts, striking workers prevent others Irom entering the place oI work &
persuade them not to cooperate with the employer.














PREVENTION OF INDUSTRIAL CONFLICTS
Prevention oI industrial disputes may have diIIerent methods. These methods 'cover the
entire Iield oI relations between industry & labour & include enactment & enIorcement oI
progressive legislation, works committees & councils, wage boards, & trade boards, proIit
sharing & co-partnership, education, housing, welIare work & all such measures which can
bridge the gap between the employers & the employed. The signiIicant preventive measures
may be broadly outlined as below:


Prevention Measures of Industrial Conflicts


Labour Standing Grievances Joint
WelIare Orders Procedure Consultation
OIIicer



Strong Joint Collective Labour Co-partnership
Trade Consultations Bargaining & ProIit Sharing
Unions
Labour welfare Officer
Sec. 49 (1) & (2) oI the Iactories act, 1948, speciIies that every Iactory wherein 500 or more
workers are ordinarily employed, at least 1 oIIicer must be appointed, where the number oI
workers are in excess oI 2,500, the assistance & or additional welIare oIIicers are required to be
appointed to assist the welIare oIIicer.
Standing orders

Majority oI the industrial disputes are related to conditions oI employment. To prevent the
industrial conIlict relating to employment conditions, standing orders are Iormulated. It was
made obligatory that standing orders should govern the conditions oI employment under the
industrial employment (standing orders) act oI 1946. The standing orders regulate the
conditions oI employment Irom the stage oI entry to the stage oI exit or retirement. Standing
orders act as a code oI conduct Ior the employees during the working liIe oI employees as they
provide do`s & do nots.
Grievance procedure
Grievances generally arise Irom day to day working relations. Grievances oI the
employees are redressed by the management. Management can prevent the occurrence oI
industrial disputes by solving the individual problems.
Collective bargaining
As discussed earlier, collective bargaining helps Ior settlement oI issues & prevention oI
industrial disputes. Government also helps trade unions & govt. to come closer to each other &
come to an agreement.
Strong trade unions
Strong trade unions have the stability oI membership, sound Iinancial position & healthy
polices. Such unions think & act constructively Ior the mutual beneIit oI the employees & the
management. These practices naturally prevent the industrial conIlicts.
Labour co - partnership & profit sharing
Labour co partnership & proIit sharing create a sense oI belongness among the employees &
they Iill that they are the partners in the company. As such, they think & act Ior the beneIit oI
the company.
oint consultations
A Joint consultation between the employees & employer are the diIIerences between them &
prevents industrial conIlicts.
SETTLEMENT OF CONFLICTS
The methods oI the settlement oI conIlicts generally include those mentions in the below
. Investigation
This is conducted by a board or court appointed by the government. It may be voluntary or
compulsory. II the investigation is conducted on an application by either or both the parties to
the dispute, it is voluntary. II the Government appoints a Court oI Inquiry to investigate into a
dispute without the consent oI the parties, it is compulsory. Investigations do not aim at
bringing about the settlement oI disputes directly, but by analyzing the Iacts, they aim at

bringing about an amicable solution. When the investigation is compulsory, the strikes & lock-
outs are required to be stopped & employers should not make any change in the conditions oI
employment. The result oI investigation has no serious eIIect on the dispute because the general
public is least bothered to make note oI the dispute.
2. Meditation
Another attempt to settle disputes is Meditation. In this method, an outsider assists the parties in
their negotiation. It takes place with the consent oI both the parties. The mediator perIorms the
messenger`s job Ior both the parties & he neither imposes his will nor his judgment upon them.
The main aim oI meditation is the settlement oI disputes by brining about a voluntary
agreement. There may be three kinds oI meditation:
a. The Eminent Outsider;
b. Non-Government Board; &
c. Semi-Government Board.
II meditation is conducted skillIul & sympathetically along proper lines, it can bring about the
adjustment oI diIIerences that might otherwise contribute to stoppage oI work.
. Conciliation
The main objective oI a condition & arbitration is to reunite the two conIlicting groups in the
industry in order to avoid interruption oI production, distrust etc.
Conciliation is a process by which representatives oI both workers & employers are brought
together beIore a third party with a view to persuading them to arrive at some sort oI settlement.
It is an extension oI collective bargaining with third party assistance. It is the practice by which
the services oI the neutral third party as used in a dispute as a means oI helping the disputing
parties to reduce the extent oI their diIIerences & to arrive at an amicable settlement or agreed
solution. It is a process oI rational & orderly discussions oI diIIerences between the parties to a
dispute under the guidance oI a conciliator.
Conciliation machinery consists oI a conciliation oIIicer & board oI conciliations. The
conciliator induces the parties to a course oI action. He plays the role oI an innovator, protector,
discussion leader, stimulator, advisor, Iace saver. He acts as a saIety value & a communication
link.
The task oI conciliation is to oIIer advice & make suggestions to the dispute on controversial
issues.
4. Voluntary Arbitration

II the two parties to the dispute Iail to come to an agreement, either by themselves or with the
help oI a mediator or conciliator, who agrees to submit the dispute to an impartial authority,
whose decision, they are ready to accept. The essential elements in voluntary arbitration are:
The voluntary submission oI dispute to an arbitration;
The subsequent attendance oI witness & investigations &
The enIorcement oI an award may not be necessary.
5. Compulsory Arbitration / Adjudication
Where trade unions are week, the method oI Compulsory Arbitration is used. Compulsory
Arbitration is utilized generally when the parties Iail to arrive at a settlement though the
voluntary methods.
In India, Compulsory Arbitration is enIorced because collective bargaining was not used Ior
regulating wages & other conditions oI employment.
It may be said that Compulsory Arbitration may be at times & under certain circumstances,
necessary & desirable. The nature, scale & timing oI state intervention should be suited to the
needs oI diIIerent occasions. The objective oI state intervention in the Iield oI industrial
relations should be to do social justice & make the weaker party equally strong to enable it
ultimately to stand & survive on its own & settle its diIIerences through negations & collective
bargaining.
Compulsory Arbitration is one where the parties are required to arbitrate without any
willingness on their part. Any one oI the parties may apply to the appropriate governments to
reIer the dispute to adjudication machinery.





promotion
When there are vacancies in an organization, they can be Iilled up by the internal or external candidates.
Though the organization preIers to Iill up the vacancies by the external candidates through the selection
procedure, the internal candidates may also apply Ior post and may be tested and selected Ior higher
level job in the organizational hierarchy at par with external candidates. Is such upward movement oI an
employee a promotion? Or it is purely selection? It is purely a selection. II the organization preIers to
Iill a vacancy only by the internal candidates, it assigns that higher level job to the selected employee
Irom within through promotion tests. Such upward movement can be said as promotion.
> Definition:-

'Promotion is advancement oI an employee to a better job- better in terms oI grater
responsibility, more prestige or status, greater skills and especially increased rate oI pay or salary.
- Paul Pigors and Charles A. Myers.
'The upward reassignment oI an individual in an organizational hierarchy, accompanied by
increased responsibilities, enhanced status and usually with increased income though not always so.
- Arun Monappa and Mirza S. Saiyadain.
Promotion is the reassignment oI a higher level job to an internal employee with delegation oI
responsibilities and authority required to perIorm that higher job and normally with higher pay. Thus,
the main conditions oI promotion are:-
1) Reassignment oI higher level job to an employee than what he is presently perIorming.
2) The employee will naturally be delegated with greater responsibility and authority than what he has had
earlier.
3) Promotion normally accompanies higher pay.
Promotion may be temporary or permanent depending upon the organizational needs and employee
perIormance.
> Purpose of promotion:-
Organizations promote the employee with a view to achieve the Iollowing purposes:-
1) To utilize the employee`s skills, knowledge at the appropriate level in the organizational hierarchy
resulting in organizational eIIectiveness and employee satisIaction.
2) To develop competent spirit and inculcate the zeal in the employees to acquired the skills, knowledge
etc. required by higher level jobs.
3) To develop competent internal source oI employees ready to take up jobs at higher level in the changing
environment.
4) To promote employee`s selI development and make them await their turn oI promotions. It reduces
labour turnover.
5) To promote a Ieeling oI content with the existing conditions oI the company and a sense oI
belongingness.
6) To promote interest in training, development programmers and in team development areas.
7) To build loyalty and to boost morale.
8) To reward committed and loyal employees.
9) To get rid oI the problems created by the leader oI workers` unions by promoting them to the oIIicer`
levels where they are less eIIective in creating problems.
Merit as a basis of promotion:-
Merit is taken to denote an individual employee`s skills, knowledge, ability, eIIiciency and
aptitude as measured Irom educational, training and past employment record. The merits oI merit
system oI promotion are:

1) The resources oI higher order oI an employee can be better utilized at a higher level. It result in
maximum utilization oI human resources in an organization
2) Competent employees are motivated to exert all their resources and contribute them to the
organizational eIIiciency and eIIectiveness
3) It works as golden hand-cuIIs regarding employee turnover,
4) Further it continuously encourages the employees to acquire new skill, knowledge etc. Ior all-round
development.
Despite these advantages the merit systems suIIer Irom some demerit. They are:
1) Measurement or judging oI merit is highly diIIicult.
2) Many people, particularly trade union leaders, distrust the management`s integrity in judging merit.
3) The techniques oI merit measurement are subjective.
4) Merit denotes mostly the past achievement, eIIiciency but not the Iuture success. Hence, the purpose oI
promotion may not be served iI merit is taken as sole criteria Ior promotion.
Senior as a basis of promotion
Seniority reIers to relative length oI service in the same job and in the same organization. The logic
behind considering the seniority as a basis oI promotion is that there is a positive correlation between
the length oI service in the same job and the amount oI knowledge and the level oI skill acquired by an
employee in an organization. This system is also based on the custom that the Iirst in should be given
Iirst chance in all beneIit and privileges.
> Advantages of seniority as a basis of promotion are:
1) It is relatively easy to measure the length oI service and judge the seniority.
2) There would be Iull support oI the trade unions to this system.
3) Every party trust the management`s action as there is no scope Ior Iavoritism and discrimination and
judgment.
4) It gives a sense oI certainty oI getting promotion to every employee and oI their turn oI promotion.
5) Senior employees will have a sense oI satisIaction to this system as the older employees are respected
and their ineIIiciency cannot be pointed out.
6) It minimizes the scope Ior grievances and conIlicts regarding promotion.
7) This system seems to reserve the purpose in the sense that employees may learn more with increase in
the length oI service.
In spite of these merits, this system also suffers from certain limitations. They are:
1) The assumption that the employees learn more relatively with length oI service is not valid as this
assumption has reverse eIIect. In other words employees learn up to a certain age and beyond that stage
the learning ability oI the cognitive process diminishes.
2) It denominates the young and more competent employees and results in employee turnover particularly
among the dynamic Iorce.

3) It kills the zeal and interest to develop as everybody will be promoted with or without improvement.
4) Organizational eIIectiveness may be diminishes through the deceleration oI the human resource
eIIectiveness as the human resource consists oI mostly undynamic and old blood.
5) Judging the seniority though it seems to be in the theoretical sense. it is highly diIIicult in practice as the
problems like job seniority, company seniority, zonal/regional seniority, service in diIIerent
organizations, experience as apprentice trainee, trainee, researcher, length oI service not only by days
but hours and minutes will crop up.
Thus the two main basic oI promotion enjoy certain advantages and at the same time suIIer Irom certain
limitations. Hence, a combination oI both oI them may be regarded as an eIIective basis oI promotion.
Seniority-cum-merit
Management mostly preIers merit as the basis oI promotion as they are interested in enriching its human
resources. But trade union Iavour seniority as the sole basis Ior promotion with a view to satisIy the
interests oI majority oI their members.
Hence a combination oI both seniority and merit can be considered as the basis Ior promotion satisIying
the management Ior organizational eIIectiveness and employees and trade union Ior respecting the
length oI service. A balance between seniority and merit should be struck and a new basis is to be
developed. There are several ways in striking the balance between these two basis.viz:-
1) inimum length of service and merit.-
Under this method all those employees who complete the minimum service, say Iive years, are made
eligible Ior promotion and then merit is taken as the sole criteria Ior selecting the employee Ior
promotion Irom the eligible candidates. Most oI the commercial bank in India has been Iollowing this
method Ior promoting the employees Irom clerk`s position to oIIicer`s position.
2) easurements of seniority and merit through a common factor.
3) inimum merit and seniority.-
In contrast to the earlier methods, minimum score oI merit which is necessary Ior the acceptable
perIormance on the Iuture job is determined and all the candidates who secure minimum score are
declared as eligible candidates. Candidates are selected Ior promotion based on their seniority only Irom
the eligible candidates.
> Benefit of promotion:-
1) Promotion places the employees in a position where an employee`s skills and knowledge can be better
utilized.
2) It creates and increases the interest oI the other employees in the company as they believe that they will
also get their turn.
3) It creates among employees a Ieeling oI content with the existing conditions oI work and employment.
4) It increases interest in acquiring higher qualiIications, in training and in selI development with a view to
meet the requirement oI promotion

5) Promotion improves employee morale and job satisIaction.
6) Ultimately it improves organizational health.
> Problems with promotion:-
Though promotions beneIit the employee and the organization, it creates certain problems. They are
disappointment oI the candidates, reIusal oI promotions etc.
Promotion disappointment some employees.-
Some employees who are not promoted will be disappointed when their colleagues with similar
qualiIications and experience are promoted either due to Iavoritisms or due to lack oI systematic
promotion policy. Employee may develop negative attitude and reduce their contributions to the
organization and prevent organizational and individual advancement.
Some employee refuse promotion.-
There is a general tendency that employee accept promotion. But their are several incidents where
employees reIuse promotions. These include promotion together with transIer to an upward place,
promotion that level where the employee Ieels that he will be quite incompetent to carry out the job,
delegation oI unwanted responsibilities, and when trade union leader Ieel that promotion causes damage
to their position in trade union.
The other problems associated with the promotion are: some superiors will not relieve their
subordinates who are promoted because oI their indispensability in the present job and inequality in
promotional in diIIerent departments, regions and categories oI jobs.
Promotion problems can be minimized though a career counseling by the superiors and by
Iormulating a systematic promotion policy
> Promotion policy
Every organizational has to speciIy clearly its policy regarding promotion based on its corporate policy.
The characteristics oI a systematic promotion policy are:
1) It should be considered the sense that policy should be applied uniIormly to all employees irrespective
oI the background oI the persons,
2) It should be Iair and impartial. In other words it should not give room Ior nepotism, Iavoritism etc.,
3) Systematic line oI promotion channel should be incorporated
4) It should provide equal opportunities Iro promotion in all categories oI jobs, departments, and regions oI
an organization
5) It should insure open policy in the sense that every eligible employee should be considered Ior
promotion rather than a closed system which consider only a class oI employees
6) It should contain clear cut norms and criteria Ior judging merit, length or service, potentiality etc.
7) Appropriate authority should be entrusted with the task oI making Iinal decision
8) Favoritism should not be taken as a basis Ior promotion

9) It should contain promotional counseling, encouragement, guidance and Iollow-up regarding
promotional opportunity, job requirement and acquiring the required skills, knowledge etc. it should
also contain reinIorcing the Iuture chances in the mind oI rejected candidates and a provision Ior
challenging the managements decision and action by employee or union within the limits oI promotion
policy.
> Types oI Promotion
As already noted, a promotion involves an increase in status, responsibilities and pay. But, in certain cases, only the
pay increases, and the other elements remain stagnant. In other cases, the status only increases without a
corresponding increase in pay or responsibilities. Depending on which elements increase and which remain stagnant,
promotions may be classiIied into the Iollowing types:
Hori:ontal Promotion.-
This type oI promotion involves an increase in responsibilities and pay, and a change in designation. But the
employee concerned does not transgress the job classiIication. For example, a lower division clerk is promoted as an
upper division clerk. This type oI promotion is reIerred to as upgrading' the position oI an employee.
2 Jertical Promotion.-
This type oI promotion results in greater responsibility, prestige and pay, together with a change in the nature oI the
job. A promotion is vertical when a canteen employee is promoted to an unskilled job. The concerned employee
naturally transgresses the job classiIication.
3) Dry Promotions.-
Dry promotions are sometimes given in lieu oI increases in remuneration. Designations are diIIerent but no change in
responsibilities. The promotee may be given one or two annual increments.
TransIer
> Meaning:-
TransIer is deIined as ' a lateral shiIt causing movement oI individuals Irom one position to
another usually without involving any marked change in duties, responsibility, skills needed or
compensation
TransIer is also deIines as 'the moving oI an employee Irom one job to another. It may involve a
promotion, demotion or no change in job status other than moving Irom one job to another.
However transIer is viewed as change in assignment in which the employee moves Irom one job
to another in the same level oI hierarchy requiring similar skill involving approximately same level oI
responsibility, same status and same level oI pay. Thus promotion is upward reassignment oI job;
demotion is a downward job reassignment whereas transIer is a latter or horizontal job reassignment.
> Purposes of transfer:-
The transIer in an organization may be due to any one oI the Iollowing reasons:

(1) Jariation in the volume of work. TransIers are necessary due to variation in the volume oI work in
.diIIerent departments/sections. Shortage oI employees or increase in the work in one department due to
diIIerent reasons leads to transIer oI employees Irom other departments to that department. Workers are
transIerred Irom surplus department to another department where there is shortage oI staII.
(2) Providing training to employees. TransIers are made Ior providing opportunities to employees Ior
training and development.
(3) Rectification of poor placement. TransIers are necessary Ior the rectiIication oI poor placement made in the
initial period. Similarly, transIers are necessary in order to utilize the services oI an employee in the best
possible manner.
(4) Satisfying personal needs of employees. TransIers are necessary in order to satisIy the personal needs
(personal diIIiculties) oI the employees. They include Iamily problems, sickness, and education oI
children and so on. Such transIers take place especially among Iemale employees. Female employees
want transIer to join their husbands. This leads to transIers. Workers demand transIers when the climate oI
the place oI work is not suitable to them. Here, transIers are basically Ior the convenience oI employees.
(5) eeting mutual needs of employees. TransIers are, sometimes, made in order to meet the mutual needs
oI two employees. It is a type oI mutual exchange and is usually accepted by the management.
(6) eeting organi:ational needs. TransIers are necessary in order to meet the organizational needs
developed out oI expansion programmers or Iluctuations in work requirements or changes in the
organizational structure or dropping oI
existing product lines. For example, senior and experienced workers and
supervisors are transIerred to new plants/Iactories in order to manage the work smoothly.
(7) Solution to poor performance. TransIers are, sometimes, made when the worker Iails to perIorm his
job eIIiciently. He is transIerred to a new place or post and is given an opportunity to improve his
perIormance at a new place. Here, transIer is treated as a better alternative to outright dismissal.
(8) Avoiding fatigue and monotony. TransIers are made Ior avoiding Iatigue and monotony oI work in
the case oI employees. The productivity oI an employee may decline due to monotony oI his or her job. To
break this monotony, the employee is transIerred.
(9) Giving punishment for negligence. TransIers are sometimes made as a punishment Ior negligence and
indiscipline on the part oI an employee.
(10) Rectification of poor personal relations. The relations between the worker and his superior may not be
smooth and cordial. This may aIIect the work oI the department. One method to solve this problem is to
transIer the worker Irom that department to some other suitable department. This transIer may be
necessary Ior removal oI the incompatibilities between the worker and his/her boss or between one worker
and the other.

(11) Providing convenience to employees. TransIers are made to help employees to work according to their
convenience. Such transIers are also called shiIt transIers.
(12) To provide relief and to punish employees. TransIers may be made in order to give relieI to the
employees who are overburdened or are working under heavy risks or tension over a long period.
Similarly, on certain occasions transIers are made Ior indulging in undesirable activities. They may be
made as a disciplinary action Ior serious mistakes on the part oI employees. This practice is widespread
mainly in government oIIices and police department. Problem employees are transIerred to some other
jobs or to remote places.
> Types of Transfers
Broadly speaking, transIers may be classiIied into three types:
1. Those designed to enhance training and development.
2. Those making possible adjustment to varying volumes oI work within the Iirm.
3. Those designed to remedy the problem oI poor placement.
SpeciIically, transIers may be production, replacement, versatility, shiIt and remedial.
Production 1ransfers:-
As mentioned earlier, a shortage or surplus oI the labour Iorce is common in diIIerent departments in a plant or
several plants in an organization. Surplus employees in a department have to be laid oII, unless they are transIerred
to another department. TransIers aIIected to avoid such imminent lay-oIIs are called production transIers.
2 Replacement 1ransfers:-
Replacement transIers, too, are intended to avoid imminent lay-oIIs, particularly, oI senior employees. A junior
employee may be replaced by a senior employee to avoid laying oII the latter. A replacement transIer programmed
is used when all the operations are declining, and is designed to retain long-service employees as long as possible.
3 Jersatility 1ransfers:-
Versatility transIers are eIIected to make employees versatile and competent hi more than one skill. Clerical
employees in banks, Ior example, are transIerred Irom one section to another over a period oI time so that they
may acquire the necessary skills to attend to the various activities, at the bank. Versatile operations are valuable
assets during rush periods and periods when work is dull. Versatile transIers may be used as a preparation Ior
production or replacement transIers
4 Shift 1ransfers:-
Generally speaking, industrial establishments operate more than one shiIt. TransIers between shiIts are
common, such transIers being made mostly on a rotation basis. TransIers may also be aIIected on special

requests Irom employees. Some request a transIer to the second shiIt or the night shiIt in order to avail the Iree
time during the day to take up part time jobs, although this is not permitted by law.
5 Remedial 1ransfers:-
Remedial transIers are aIIected at the request oI employees and are, thereIore, called personal transIers.
Remedial transIers take place because the initial placement oI an employee may have been Iaulty or the worker
may not get along with his or her supervisor or with other workers in the department. He or she may be getting
too old to continue in his or her regular job, or the type oI job or working conditions may not be well-adapted to his or
her present health or accident record. II the job is repetitive, the worker may stagnate and would beneIit by transIer
to a diIIerent kind oI work.
> Reasons for transfer:
TransIers are oI basically oI three categories, viz, employee initiated transIer, and company initiated
transIer and public initiated transIers.
Employee initiated transfer:-
These transIers are also known as personal transIers. These transIers are primarily in the interest oI the
employee and according to his convenience and desire. Further, this transIer can be classiIied into
temporary and permanent transIers.
a Temporary transfers. -
The reasons Ior employee initiated temporary transIers are:
1) Due to ill health or involvement oI employee in accidents,
2) Due to Iamily problem like taking care oI old parents,
3) Due to other adhoc problem like pursuing higher education,
b Permanent transfers.-
There are several reasons Ior employee initiated permanent transIers. Employee preIers transIers:
1) Due to chronic ill health or permanent disablement caused by accident,
2) Due to Iamily problems like taking care oI domestic aIIairs in his native place,
3) With a view to correct his wrong placement. Employee may not be interested with the work or
working condition or environment oI his present job and hence may require a transIer,
4) In order to relive him Irom the monotony or boredom caused due to doing the same job Ior year
together,
5) To avoid conIlict with his superior. II most oI the employees working under the same superior
request Ior a transIer, the situation should be corrected by other means like developing that superior in
interpersonal skills etc. rather than transIerring the subordinates,
6) With a view to search Ior challenging and creative job,
7) With a view to search Ior job with opportunities Ior advancement to a higher level job, opportunities
Ior advancement to a higher level job, opportunities Ior Iinancial gains etc.

2 Company initiated transfer:-
TransIer is also at the initiative oI the company. They can be classiIied into temporary and permanent.
a) Temporary transfers. reasons Ior the company initiated temporary transIers are:
1) Due to temporary absenteeism oI employees,
2) Due to Iluctuation in quality oI production and thereby in work load,
3) Due to short vacations.
b) Permanent transfer. - reasons Ior the company initiated permanent transIer are:
1) Changes in the quality oI production, lines oI activity, technology, organizational structure as
discussed earlier,
2) To improve the versatity oI employees,
3) To improve the employee job satisIaction,
4) To minimize bribe order-processing corruption.
3 Public initiated transfers:-
Public also initiate the transIers generally through the politicians/ government Ior the Iollowing reasons:
1) II an employee`s behavior in the society is against the social norms order-processing iI he indulges in
any social evils.
2) II the Iunction oI an employee is against the public interest.
The majour drawback oI public initiated transIer is the politicalisation oI the issue. Some employees
may be transIerred Irequently because oI political victimization and company initiated transIer oI some
employees may be stopped due to political Iavoritism. This drawback is more severe in government
departments and public sector unit.
Benefit of transfer:
TransIers beneIit both the employees and the organization. TransIer reduce employee`s monotony,
boredom etc. and increase employees job satisIaction. Further they improves employee`s skills,
knowledge etc. they correct erroneous placement and interpersonal conIlicts. Thus, they improve
employee`s morale. Further they prepare the employee to meet the organizational exigencies and meet
the Iluctuation in business and organizational requirements. Thus, they enhance human resource
contribution to organizational eIIectiveness.
Problems of transfer:
Despite these beneIit some problems are associated with transIers. They are:
1) Adjustment problem to the employee to the new job, place, environment, superior and colleageoues,
2) TransIer Irom one place to another cause which inconvenience and cost to the employees and his
Iamily members relating to housing, education to children etc.
3) transIer Irom one place to another result in loss oI Mondays,
4) Company initiated transIer result in reduction in employee contribution
5) Discriminatory transIer aIIects employees` morale, job satisIaction, commitment and contribution.

However, these problems can be minimized through Iormulating a systematic transIer policy.
TransIer policy: organization should speciIy their policy regarding transIers. Otherwise superiors may
transIer their subordinates arbitrarily iI they do not like them. It causes Irustration among employees.
Similarly, subordinates may also request Iro transIer even Ior the petty issues. Most oI the people may
ask Ior transIer to risk less and easy job and places. As such organization may Iind it diIIicult to manage
the transIer policy. Systematic transIer policy should contain the Iollowing items:
1) SpeciIication oI circumstances under which an employee will be transIerred in the case oI company
initiated transIer.
2) SpeciIication oI superior who is authorized and responsible to initiate a transIer
3) Jobs Irom and to which transIers will be made based on the job speciIication, description and
classiIication etc.
4) The region order-processing unit oI the organization within which transIer will be administrated.
5) Reasons which will be considered Ior personal transIers their order oI priority etc.
6) Reasons Ior mutual transIer oI employees.
7) Norms to decide priority when two order-processing more employees request Ior transIer like priority
oI reasons, seniority.
8) SpeciIication oI basis Ior transIer like job analysis. Merit, length oI service.
9) SpeciIication oI pay, Allowances, beneIit etc. that are to be allowed to the employee in the new job.
10) Other Iacility to be extended to the transIeree like special leave during the period oI transIer. Special
allowance Ior packaging luggage, transportation etc.
Generally, line managers administer the transIers and personnel managers assist the line managers in
this respect.
Demotion
The remaining type oI internal mobility is demotion. It is the opposite oI promotion. Demotion
is the reassignment oI a lower level job to an employee with delegation oI responsibility and authority
required to perIorm that lower level job and normally with lower level pay. Organizations use demotion
less Irequently as it aIIects employee career prospects and morale.
> Need for demotions:
Demotions are necessary Ior Iollowing reasons:
Unsuitability of the employee to higher level jobs:
Employees are promoted based on the seniority and past perIormance. But, some oI the employees
promoted on those bases may not meet the job requirements oI the higher level job. In most cases
employees are promoted to the level oI the incompetence. Some employees selected Ior higher level
jobs may prove to be incompetent I doing that job. Such employees may be demoted to the lower level
jobs where their skill, knowledge and aptitude suit to the job requirements.
2 Adverse business conditions:

Generally adverse business conditions Iorce the organization to reduce quality oI production,
withdrawal oI some lines oI products, closure oI certain department order-processing plants. In addition,
organizations resort to economy drives. Consequently organizations minimize the number oI
employees. Junior employees will be retrenched and senior employees will be demoted under such
conditions.
3 Aew technology and new methods oI operation demand new and higher level skills. II the existing
employees do not develop themselves to meet those new requirements, organizations demote them to
the lower level jobs where they are suitable. For example, teacher handling 10
TH
class were demoted to
the level oI 8
TH
class teachers when the syllabus were revised and the teachers were Iound misIit even
aIter training in one school in Andhra Pradesh.
4 Employees are demoted on disciplinary grounds. This is one oI the extreme steps and as such
organizations rarely use this measure.
Though the demotion seems to be simple it adversely aIIects the employee morale. Job satisIaction etc.
as it reduces employee status not only in the organization but also in the society in addition to reduction
in responsibility authority and pay. Hence, there should be a systematic demotion policy.
> Demotion policy:
Organization should clearly speciIy the demotion policy. Otherwise the superiors demote the
employees according to their whims and Iancies. Systematic demotion policy should contain Iollowing
items:
1) SpeciIication oI circumstances under which an employee will be demoted, like reduction in
operations, indisciplinary cases.
2) SpeciIication oI a superior who is authorized and responsible to initiated a demotion
3) Jobs Irom and to which, demotions will be made and speciIication oI lines order-processing ladders
oI demotion.
4) SpeciIication oI basis Ior demotion like length oI service, merit order-processing both.
5) It should provide Ior open policy rather than a closed policy.
6) It should contain clear cut norms Ior judging merit and length oI service.
7) SpeciIication oI nature oI demotion i.e., whether it is permanent order-processing temporary iI it as a
disciplinary action it should also speciIy the guidelines Ior determining the seniority oI such demoted
employee.
PARTICIPATIVE MANAGEMENT
Meaning of Participative Management
The concept oI participative management is closely related with the concept oI industrial democracy.
Employee`s participation in management means associating workers with the decision-making process.
It is a type oI mental & emotional involvement oI workers in industrial management. In industrial

democracy, the opinion & suggestions oI workers are taken into account while Iraming policies
particularly those, which are directly connected with them or aIIect them directly.
The concept oI participative management developed in Western countries & has proved to be
successIul. As a result, it acquired world-wide recognition & popularity. Participation in an emotional
involvement oI employees in the working oI their company. It is a process oI giving & sharing views,
ideas & inIormation in between the employer & employees through certain channels / mechanism.
Features of Participative Management

1. Higher status to employees: In participative management, employees are given higher status with
power oI participate in the decision-making & running oI their business enterprise.
2. Provides psychological satisfaction to employees: Participation is an emotional involvement oI
employees in the working oI their company. As a result, some management decisions are as per the
expectations oI employees. This gives psychological satisIaction to employees. They Ieel that they are
given better status & treatment & not treated merely as wage earners.
3. Special attention to view of employees: The views oI employees are given special attention in regard
to Iollowing matters:
O Social Matters: Hours oI work, work rules, welIare Iacilities, saIety, sanitation, health, etc.
O Personnel: Recruitment, promotions & transIers, settlement oI grievances, work distribution, holidays,
etc.
O Economic: Automation, lay-oIIs, production schedule, production methods, etc.
4. Universally recognized concept: It is introduced in diIIerent countries in diIIerent Iorms.
5. Participation is indirect: Employees participation in the management is indirect i.e. through the
representatives oI employees. E.g. Works comities, etc.
6. Brings employees & management closure: It Iacilitates meaningIul communication between
management & employees, which ensures cordial industrial relations.
7. Beneficial to both parties: The participative management will be beneIicial to both parties only when
company`s management is proIessional or progressive.
8. Revolutionary concept: It is a powerIul tool, which can make industrial democracy a reality.
9. Concept has limitations: Employees will not be allowed to participate in Iinancial & other decisions oI
the management. It is restricted to those aspects oI management where employees are directly involved.
bjectives or Purposes of Participative Management:
To create uniIorm approach oI employer & workers.
To establish cordial industrial relation.
To raise industrial productivity.
To workers in conIidence.
To introduce industrial democracy.


Needs of Participative Management:
1) Giving higher status & psychological satisfaction to workers: Employees are important & that their
views are being taken into account while taking decisions on the matters relating to them. Such
participation satisIies the urge oI selI-expressions. Even Ior maturity & personality development oI
workers.
2) Cordial labour-management relations: The participation oI the workers in management can act as an
eIIective means Ior preventing industrial disputes. So there needs to establish cordial labour-
management relations through mutual understanding.
3) Creating uniform approach of employer & workers: This avoids possible disputes.
4) Raising industrial production: As workers generally take interest in their work when they are given
due importance, respect & opportunity oI selI-expression.
5) Creating platform for direct negotiations: It is needed in order to create a platIorm Ior direct
negotiations & collective decisions.
6) Creating responsible approach among workers: To make workers more responsible, disciplined &
constructive in their approach in relation to the activities oI the company.
7) Encouraging communication between employer & workers: It enables management to understand
the workers point oI view at the time oI decision-making. It removes suspicion among workers.
8) Raising employee`s morale: For raising the morale oI employees & in order to use their knowledge,
skills & talents Ior the beneIit oI the company.
9) Introducing industrial democracy: Workers participation acts as a means Ior achieving the dream oI
industrial democracy. They are consulted as equal partners in the production process. This leads to
industrial democracy, which is one useIul supplement oI political democracy.
Methods of participative management
Participative management is possible by creating suitable agencies, Iorums or platIorms through which
eIIective communication between workers and management will be possible and joint decision will be
arrived at the methods oI Participative management are diIIerent alternative. Employees and workers
can select any one oI the method popular and also purposeIul. This is the nature as the method selected
is not important but the result oriented Participative is important. The method used is means while
eIIective participation is the end.
. orks committees:
The industrial disputes act 1947 provided Ior the setting up oI a work committees consisting oI
representative oI management and employees in every undertaking employee 100 or more employees.
The committees are Ior the removing the causes oI Iriction between employers and the workers in the
day to day working in Iactory level. This joint consultative committee meets Irequently Ior discussion
on common problem beIore workers and the company. AIter discussion, joint decisions are taken and

such decisions are binding on both the parties. Matters like wage payment, bonus, training, discipline,
welIare Iacility, working conditions etc. are discussed in such meetings.

Workers committees are extremely popular and eIIective in France and England. In India, there is
statutory provision Ior the establishment oI worker committees under the industrial disputes act, 1947.
Such committees are constituted in large number oI industrial unit. Meeting oI such committees are also
arranged. However, they are neither eIIective nor popular in India. As a result, participative
management through this mechanism is not eIIective or purposeIul in India. Many managers Ieel that
such committees have only a nuisance value. In addition to works committee, many other committees
are Iormed. However, they are not eIIective as agencies oI participative management.
2. oint management councils (MCs:
These council are similar to works committees with equal representation to employer and employees.
Workers express their views, problems such as welIare Iacility; discipline, training, removal oI workers,
common grievances, holidays, rationalization, expansion programmes, etc. are discussed in the
meetings oI JMCs. Such joint consultative committees exist in UK and Sweden. In India, participative
management is mainly through joint management councils.
JMCs are in addition to works committees which are statutory in nature. UnIortunately, the
JMCs are not operation eIIectively in India due to limited interest and initiative in their Iunctioning by
managements and workers. They are not used Ior exchange oI inIormation, views, suggestions, etc. but
Ior quarrels and heated exchanges between the representatives oI management and workers. Absence oI
cordial industrial relations in spite oI JMCs indicates their overall Iailure. JMCs are mostly consultative
bodies and this type oI workers participation is oI loose type. The suggestions put Iorward by
representatives are not binding on the management. Such councils serve no useIul purpose. They only
provide platIorm Ior discussions.
. Co-partnership ( Participation through ownership :
In co-partnership, workers are converted into shareholders oI the company (by oIIering equity shares to
them) and are allowed to participate in the management like other shareholders. The company may give
Iinancial assistance to workers to purchase equity shares. They can elect their representatives on the
Board oI Directors. Workers are also allowed to attend meetings oI the company and participate in the
discussions. Voting rights are also given to employees.
In this method, employees participate in the management as co-owners i.e. shareholders. This
gives them an opportunity to participate in the decision making and policy Iraming oI their company at
the highest level. Co-partnership is also a method Ior introducing industrial democracy. Here, workers
are given higher status. They work in two diIIerent capacities as workers and as co-owners.
In India, the experiment oI co-partnership is not popular. Workers show limited interest in
purchasing shares oI their company as and when oIIered. Very Iew workers purchase the shares and join

the company as members. Naturally, the participation oI workers in the management is weak and
ineIIective.
Many companies in India oIIer their shares to employees but the response oI the employees is
not encouraging. This suggests that co-partnership as a method oI participative management is not
eIIective / popular in India.
4. Employee Directors:
Here, two or three representatives oI workers are taken on the Board oI Directors oI the company. The
employee directors / workers directors are elected by workers and they express the views oI workers in
the meetings oI the Board. Here, employee directors act as connecting link between workers and top
level management. Such participation ensures cordial industrial relations. The representative oI workers
can put the views oI workers beIore the directors and can also saIeguard the interests oI workers. As a
result, the personnel policies will be Iair and Iavourable to workers. UnIavourable decisions to workers
will be avoided and better treatment will be ensured to them.
This mechanism oI workers participation is now used extensively in the public sector
undertaking in India as per the initiative taken by the government. Workers directors are now appointed
in companies like Hindustan Antibiotics Ltd., and HMT Ltd. This scheme also exists in the case oI
nationalized banks, co-operative banks. DCM, Tatas and some more companies Irom the private sector.
This method oI participative management has many limitations. Representation on the Board
does not substantially enhance the participation oI workers in the management oI the company. In
addition, the worker director may not be able to play a constructive role due to limited knowledge and
experience. The worker director may enjoy the status on par with other directors but will Ieel inIerior to
others due to his shortcomings. His contribution may not be satisIactory Ior the workers and also Ior the
management. Finally, Workers representatives on the Board are minority. They may not be able to
protect the interests oI workers as decisions are taken on the basis oI majority vote.
5. Suggestion Programme / Scheme:
Under suggestion programme, workers are asked to give their suggestion to the management on various
administrative and other matters such as machine utilization, waste management, energy conservation
and saIety measures. Their suggestions are considered by a joint committee representing workers, heads
oI departments and technical experts. The suggestions which are suitable are accepted. Such
suggestions are Ior improvement in the existing organizational setup. Suitable suggestions relating to
production activities, cost control, quality improvement, working conditions, etc. are promptly accepted
and executed. In addition, rewards are also given to those who make constructive suggestions. For
collecting suggestions, suggestion boxes are kept in all departments.
Suggestion scheme oI participative management encourages workers to think (individually or
collectively) and participate in raising the eIIiciency oI the organization. In India, Tatas, DCM and other
industrial groups have introduced suggestion scheme. On May occasions, workers directly connected

with work give creative and practical suggestions which are useIul to the management in diIIerent ways.
They may raise productivity or reduce the cost oI production. Suggestion scheme will give good results
iI workers are encouraged to think and make concrete suggestions. This idea oI participative
management is now put into operation through quality circles which are popular in Japan and now
Iunction in may Indian Companies.
. orkers co-partnership / Auto Management:
In this extreme Iorm oI labour participation, workers take over the industrial unit and manage it
completely on co operative basis. Naturally, the entire management is by the workers themselves. This
method is called 'Auto-management. One example in India under this category is that oI Kamani
Tubes Limited. This leading unit was closed down in 1985 due to sickness. Workers suIIered heavy
loss. Now, workers have contributed to its capital and have become its owners. The Kamani
Employees` Union took initiative in starting this unit with the co-operation oI Iinancial institution Iorm
6
th
April, 1989. The Supreme Court also allowed the workers to run the unit. This is the Iirst example oI
participative management in the manuIacturing sector in India. It is one signiIicant constructive
development in the Iield oI trade unionism in India. The Government oI Maharashtra has taken a
decision to hand over sick industrial units to workers Ior regular Iunctioning on co-operative basis.
7. Quality Circle:
Quality circle consist oI a small number oI employees who comes together on voluntary basis with one
item on the agenda i.e. to improve quality or to raise productivity or to avoid wastages, etc. this Iorm oI
participation is voluntary. As a practice, meetings are held once in the week lasting Ior about as hour.
Member oI quality circle is given Iree hand to solve problem related to the quality, iI they Iail they can
request to management to depute an expert to sort out the problem. This circle highly proved to be
highly successIul because the problem is solved by member themselves through two way
communication and brainstorming seriously and studies them eIIectively and promptly. The suggestion
should be implemented, iI Iound suitable.
. Collective Bargaining:
Collective bargaining is the process in which the representative oI the employer and employer and
employees meet together to negotiate a contract government both the parties. It results into signing an
agreement thereby restricting each party that it cannot take unilateral decision harming the interest oI
the other party. This sort oI joint meeting can bring Iruits proved barraging is done in the right spirit
with positive attitude. Participation brings both the parties together and improves the understanding thus
making the way Ior the two way dialogue to sort out the problems.
Collective bargaining is a better alternative to strike and industrial disputes. It is peaceIul and
democratic method Ior solving the problem and demands Ior workers through direct negotiation
between the representative oI workers and management. A strong trade union can protect the interest oI

worker can more eIIectively through direct negotiation and consultation rather than through disputes
and strike which are normally harmIul to workers, employer and society at large.
9. Empowered Team:
When the authority is delegated to the employees its called empowering. In this sense, employment
takes place when employees enjoy power and they experience a sense oI ownership and control over the
jobs. Employees when empowered, understanding that the job belong to them. As they are competent to
speak on the job, they Ieel responsible. This happens to motivate them and they go out oI the way to
work. Employees become quality conscious and contribute to quality improvement in product and
services. InIormation is shared at every level leading to improved perIormance.
. ob enlargement and job evaluation:
Job enlargement is the process oI increasing the scope oI the job by adding more tasks to it. As tasks are
related, employees to get the opportunity to make grater use oI their mental and physical skills.
Job enrichment is designing a job in such a way that it provide the employee grater autonomy
Ior planning and control his own perIormance. Job enrichment makes the jobs more interesting and
challenging.
The main objective oI job enrichment and job enlargement is to Iorce the worker Irom boredom
which occurs because oI excessive specialization. Both the job enrichment and job enlargement are
considering method oI participative management as they provide Ireedom to each employee to use his
judgment. This Ireedom is course limited and restricted.
The basis purpose oI above noted scheme oI participative management is to associate the worker with
the decision-making process. DiIIerence methods are use in the diIIerent countries as per the situation
available. The method used Ior workers participation is not impotent. Workers participation in
management may be voluntary or statutory. Voluntary participation is always better and more eIIective.
Statutory labour participation is not eIIective as it is mechanical and also imposed on both the parties by
Iorce.
PRE-REQUISITES OF PARTICIPATIVE MANAGEMENT
1. Strong trade unions:
Existing oI strong trade with creative and enlightened leadership is necessary Ior participative
management. Workers and their union must have genuine desire and interest in such participation. They
also need inIormation, proper training and ability to participate in the discussions in an eIIective
manner. Workers participation will be ineIIective iI these pre-request are absent. Politicisation and
multiplicity oI trade union deIeat the very purpose oI participative management
2. Favourable attitude of management:
The attitude oI the management should be progressive and democratic. He must be mentally willing to
associate with his workers on equal level and discus the problem Ireely and Irankly with them. The
conservative and autocratic outlook oI management will deIeat participative management in practice.

Management have to accept due importance oI employees and their status as their partners and not
merely as wage earners. Management should not Ieel that its position it`s threatened by such
participation.
3. Mutual trust and confidence:
Existence oI atmosphere oI mutual trust and conIidence is the sine quo non oI participative
management. Fair participation is not possible when the mutual conIidence is absent. Both parties are
agree to stay together in an atmosphere oI understanding. This Iacilitates participative management in
practice.
4. Genuine urge for co-operation:
Genuine desire on the part oI employer and worker to discuss, understand the views and come to certain
acceptable decision is necessary Ior success oI participative management. This must be supplemented
by desire to genuine desire to share authority and responsibility in mutually agreed to sphere. The
outlook oI employer and worker must change and become Iavourable Ior mutual trust and
understanding.
5. Peaceful atmosphere:
Labour management relation should be a cardinal or at least there should be a no tension in the relation.
Active participation oI workers in management is possible under such peaceIul atmosphere. It is just not
possible when there are disputes and strike in the industrial unit.
6. Clear understanding of objective:
Employers and workers must understand clear the objective oI such participation. The objective must be
clearly deIine and complementary in characters. Employer should not take such participation as an
imposed liability and worker should not use it merely Ior expressing there grievances and demands.
Participation should be Ior achieve the objective which are accepted by both the parties and also
beneIicial Ior both the parties.
7. Meaningful sharing of information:
Worker representative should have adequate technical, Iinancial and managerial knowledge and
inIormation. This will make labour participation eIIectively. For this, a suitable training needs to be
given to the workers representatives. Management should also provide all relevant inIormation to
employees Ior their consideration. There must be a Iree Ilow oI inIormation and communication
between management and worker. This avoids suspicion and distrust and ensures purposeIul
participative management.
8. Participation of supervisory staff:
Supervisory staII should be given a place on the join management council. Similarly, subject
earmarked Ior collective bargaining must be kept outside Ior the joint consultation. Participative
management will be eIIective iI the entire labour Iorce covered by such participation. In addition, the
representative oI the worker must be drawn Irom themselves. The participation oI trade union leaders

should be discourage as the approach oI such leaders may not be positive or Iair. Real representative oI
workers can put Iorward the views oI all workers with conIidence.
9. Education and training of workers:
Workers education and training should be make signiIicant contribution to meaningIul participative
management. Trade union and government should provide such education and training to the workers.
This will make the concept oI participative management among popular among the workers and will
ensure its success.
10. Voluntary character desirable:
Participative management should not be made compulsory but should be kept voluntary in character. It
should not be government sponsored. It will not work IruitIully iI it is imposed on the both the parties.
Thus voluntary condition character is one pre-condition Ior the success oI participative management.
The need oI such participation must be Ielt by both the parties and they should introduce the scheme oI
participation on voluntary basis.
Importance of participative management:
The importance oI participative management is universally accepted and eIIorts are being made
Ior introducing such participation through suitable agencies and methods. Participative management has
wider socio-economic importance as it given various advantages to workers, employers and society at
large. Such participation gives higher status to workers and enable them to think and express their view
on the working oI their company. Industrial peace and cordial industrial relation are also established
through participative management. In addition, workers` participation brings industrial democracy in
reality. Participative management is important it satisIies the psychological needs oI selI expression oI
workers. Even the process oI decision making is made democratic through the workers participation. It
bring human element in industrial management.
Participative management introduces a new set oI volume Ior the workers and employers in
which power is to be replaced by persuasion and compulsion by co-operation. Employee participation is
useIul Ior raising industrial production and productivity. It helps consumer in an indirect manner. The
national economy also gets certain beneIits when industrial peace and harmony exits over a long period.
In brieI, the concept oI participative management is important because oI economics, social and human
values connected with it.
The ILO has given morale support to employee`s participation and has advocated its adoption in
all countries. EIIorts are being made in all countries in this regards. In the countries oI west, this
experiment is reasonable successIul while in developing countries including India, the progress is not
satisIactory even when consultative machinery exists in many countries.