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Essentials of HRM

Introduction - Human resources are the people who work for the organization; human
resource management is really employee management with an emphasis on those employees as
assets of the business. In this context, employees are sometimes referred to as human capital. As
with other business assets, the goal is to make effective use of employees, reducing risk and
maximizing return on investment.

PROBLEM 1- Imagine you to be a training manager of a retail firm. Off late there a lot of

absenteeism and turnover of employees taking place. You need to develop a training programme for
theemployees. Discuss all the necessary steps required for a training process.
Answer - Employees are expensive, so when they aren't productive it costs your business money. It
can be very frustrating when you have an employee who is frequently late or absent, but employee
attendance problems aren't always due to irresponsibility. Here's help for dealing with the situation.
Here in above case there are the problem of absenteeism and turnover of employee. These two
problems are interrelated with each other. It seems that employees are not satisfied to work with
organisation. That is why they are coming late, being absent and searching for other option to work.
There may be many reason for this kind of Job dissatisfaction.
Not everyone can be satisfied with their job.. With all these unhappy people, one would think there
have to be causes that drive these high percentages. Additionally, one has to think about the
reactions or responses from employees that do not have job satisfaction and how they act (or act
out) on the job. When we are younger, we act out by pouting or stomping our feet - maybe even
holding our breath - but it is important we understand how employees respond when they are not
satisfied with their jobs. Understanding the responses helps companies to identify that discontent
and hopefully address it before it goes too far.

Causes of Job Dissatisfaction- There are a number of specific causes for job dissatisfaction,
but it is understood there are four main areas that reside in this issue. These areas are:
1) Being underpaid: Not being paid what you are worth is called being underpaid. This one issue is
the most challenging one to work with because it can be driven by interpretation or perspective that
is very personal or individually focused. If a person does not think they are being paid enough to do
their job, then they perceive themselves to be underpaid - even if the wages they make are in line
with that position. If they research the wages for that job (either on the Internet or by talking to
others) and find they are indeed being underpaid, then their dissatisfaction is warranted.
In addition, they could see someone who does the same job they are doing driving a better car or
living in a better house - and thus, perceive that person to be making more money. And so, once
again, they believe they are underpaid. You see, unless you know what others are making or
research the wages that are appropriate for a specific job function, then the dissatisfaction that
comes from being underpaid is totally based on perception. From a company's perspective, it is a
valuable and important perspective because individuals who are dissatisfied with the money they
are making, for the job they do, will most likely leave the organization.
2) Limited career growth: Not having the opportunity to climb the ladder and grow your career is
another area that can foster dissatisfaction with a position. For this aspect, it is important to
understand that not everyone wants to move up the ladder. However, for those who do, if the
company does not afford them the opportunity of growth, they will become disenchanted and
become dissatisfied with their job. This could mean that the employee will potentially leave for
another position that might have better career growth opportunities.
3) Lack of interest: A lack of interest is having a position that does not interest you. This is a very
straightforward concept, but you might be wondering why anyone would take a job they were not
interested in. Well, the first answer to that is typically money. People need to work and need jobs, so
they might indeed take a position that does not interest them so they can pay the bills.
Another answer could be that sometimes what a person is told a job is in the interview process does
not materialize. The old joke is the company and the prospective employee are all Brad Pitt and
Angelina Jolie during the interview process, but once the hiring is done, we can at times see the
ugly side of a company or position and not want to stay.

4) Poor management: Not having the leadership required is another reason for dissatisfaction.
People want to be led. They want to work with people who inspire them and have a vision. Without
those people, an employee can feel as if the company is just drifting through space, waiting to run
into something. If an employee is a structured and focused type of person, not having leadership is a
killer and will certainly make them believe the company is not very serious. For this reason, an
employee may grow dissatisfied with the company, if not the position.
Before conducting any Training Programme, I would like to ask below question to myself.

What do people want from their jobs?

Do they just want a higher salary? Or do they want security, good relationships with coworkers, opportunities for growth and advancement
or something else altogether?

This is an important question, because it's at the root of motivation -The art of engaging with
members of your team in such a way that they give their very best performance.
Job satisfaction is critical to high productivity, motivation and low employee turnover. Employers
face the challenges of finding ways to increase job satisfaction so their businesses stay competitive.
A global economy of discriminating consumers has placed demands on employers never before
seen. Employers face the challenges of maintaining productivity, profitability as well as keeping
their workforce engaged and satisfied with their jobs.
Those that fail to improve job satisfaction are at risk of losing their top talented people to the
competition. Supervisors and managers who maximize the potential, creative abilities, and talents of
the entire workforce have a greater competitive advantage than those who dont. Employees that are
engaged in their work have a higher level of job satisfaction. Motivated workers provide the health
insurance businesses desperately needed in these chaotic times.

NECESSARY STEPS TO BE TAKEN IN TRAINING PROCESS The leaders of the organization have the responsibility for creating a high level of job satisfaction.
Dr. Edwards Deming said, The aim of leadership should be to improve the performance of man
and machine, to improve quality, to increase output, and simultaneously to bring pride of
workmanship to people. A motivating environment is one that gives workers a sense of pride in
what they do. To show supervisors and managers how to build a more productive work
environment, Ive created a five-step process called the PRIDE system. Leaders can improve
motivation within their organizations by following this process:
Provide a positive working environment
Reward and recognition
Involve and increase employee engagement
Develop the skills and potentialof your workforce
Evaluate and measure job satisfaction

STEP 1) - Provide a positive working environment Creating job satisfaction begins by first providing a positive work environment. you have to find
what turns people on. This is the most important factor in the process. A motivating working
environment requires going over and beyond the call of duty and providing for the needs of the
Walt Disney World Company provides an excellent work environment for their employees or cast
members. Employee assistance centers are spread strategically across the theme park. Some of the
services included employee discount programs, childcare information, money orders, postage
stamps, check cashing, and bus passes. The Walt Disney Company realizes that taking care of their
employees needs keep them motivated, on the job and loyal to the company.
STEP 2) - Reward and recognition Personal recognition is a powerful tool in building morale and motivation. A pat on the back, a
personal note from a peer or a supervisor does wonders. Small, informal celebrations are many
times more effective than a once a quarter or once a year formal event.
Graham Weston, co-founder and CEO of Rackspace Managed Hosting, gives the keys to his BMW
M3 convertible for a week to his top performing employees. This creative way to reward employees
has a bigger impact than cash. He says, If you gave somebody a $200 bonus, it wouldnt mean
very much. When someone gets to drive my car for a week, they never forget it. The important
point is pay and money does not necessarily create job satisfaction. There has to be something
STEP 3) - Involve and increase employee engagement People may show up for work, but are they engaged and productive? People are more committed
and engaged when there is a process for them to contribute their ideas and employee suggestions.
This gives them a sense of ownership and pride in their work.
The Sony Corporation fosters the exchange of ideas within departments by sponsoring an annual
Idea Exposition. During the exposition, scientists and engineers display projects and ideas they are
working on. Open only to Sonys employees, this process creates a healthy climate of innovation
and engages all those who participate.
STEP 4) - Develop the skills and potentialof your workforce Training and education motivates people and makes them more productive and innovative. At
Federal Express, all customer contact people are given six weeks of training before they ever
answer the first phone call. Learning never stops and testing continues throughout their employment
tenure. Every six months customer service people are tested using an on-line computer system.
Pass/fail results are sent to each employee within 24 hours. They receive a personalized
prescription on areas that need reviewing with a list of resources and lessons that will help.
Federal Express intensive training and development program has resulted in higher motivation and
lower turnover.
There are many reasons training and development makes sense. Well-trained employees are more
capable and willing to assume more control over their jobs. They need less supervision, which frees
management for other tasks. Employees are more capable to answer the questions of customers
which builds better customer loyalty. Employees who understand the business, complain less, are
more satisfied, and are more motivated. All this leads to better management-employee relationships.

STEP 5) - Evaluate and measure job satisfaction Continuous evaluation and never ending improvement is the final step of the PRIDE system.
Evaluation is a nonstop activity that includes a specific cycle of steps. The primary purpose of
evaluation is to measure progress and determine what needs improving. Continuous evaluation
includes, but is not limited to, the measurement of attitudes, morale, and motivation of the
workforce. It includes the identification of problem areas needing improvement and the design and
implementation of an improvement plan. Good organizations conduct a job satisfaction survey at
least once a year.

PROBLEM 2 - Siya works in a management consultancy which still is using the old performance
appraisal methods like Checklist method and critical incident method. She is asked to present some
future oriented appraisal methods. Which all methods can she propose? Discuss any two.
Answer Introduction Performance Appraisal is formal, structured system of measuring, evaluating job
related behaviors and outcomes to discover reasons of performance and how to perform effectively
in future so that employee, organization and society all benefits.
Performance Appraisals is the assessment of individuals performance in a systematic way. It is a
developmental tool used for all round development of the employee and the organization. The
performance is measured against such factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and
health. Assessment should be confined to past as well as potential performance also. The second
definition is more focused on behaviors as a part of assessment because behaviors do affect job
In above given case, Siya is working in an organisation which still using traditional performance
appraisal methods which may be - ( Rating Scales, Checklist, Forced Choice Method, Forced
Distribution Method, Critical Incidents Method, Behaviorally Anchored Rating Scales, Field
Review Method, Performance Tests & Observations, Confidential Records, Essay Method, Cost
Accounting Method, or Comparative Evaluation Method .)
Her Organisation asked her some future oriented Appraisal method. She can propose below future
oriented appraisal methods.

Management by Objectives
Psychological Appraisal
Assesment Centre
360 Degree Feedback

1. Management By Objectives: It means management by objectives and the performance is

rated against the achievement of objectives stated by the management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.
Management by Objectives is a personnel management technique where managers and employees
work together to set, record and monitor goals for a specific period of time. Organizational goals
and planning flow top-down through the organization and are translated into personal goals for
organizational members.
The core concept of MBO is planning, which means that an organization and its members are not
merely reacting to events and problems but are instead being proactive. MBO requires that
employees set measurable personal goals based upon the organizational goals. For example, a goal
for a civil engineer may be to complete the infrastructure of a housing division within the next
twelve months. The personal goal aligns with the organizational goal of completing the subdivision.
MBO is a supervised and managed activity so that all of the individual goals can be coordinated to
work towards the overall organizational goal. You can think of an individual, personal goal as one
piece of a puzzle that must fit together with all of the other pieces to form the complete puzzle: the
organizational goal. Goals are set down in writing annually and are continually monitored by
managers to check progress. Rewards are based upon goal achievement.
Advantages of Management by Objective MBO has some distinct advantages. It provides a means to identify and plan for achievement of
goals. If you don't know what your goals are, you will not be able to achieve them. Planning permits
proactive behavior and a disciplined approach to goal achievement. It also allows you to prepare for
contingencies and roadblocks that may hinder the plan. Goals are measurable so that they can be
assessed and adjusted easily. Organizations can also gain more efficiency, save resources, and
increase organizational morale if goals are properly set, managed, and achieved.
Disadvantages of Management by Objective However, MBO is not without disadvantages. Application of MBO takes concerted effort. You
cannot rely upon a thoughtless, mechanical approach, and you should note that some tasks are so
simple that setting goals makes little sense and becomes more of silly, annual ritual. For example, if
your job is snapping two pieces of a product together on an assembly line, setting individual goals
for your work isn't really necessary.
Rodney Brim, a CEO and critic of the MBO technique, has identified four other weaknesses. There
is often a focus on mere goal setting rather than developing a plan that can be implemented. The
organization often fails to take into account environmental factors that hinder goal achievement,
such as lack of resources or management support. Organizations may also fail to monitor for
changes, which may require modification of goals or even make them irrelevant. Finally, there is the
issue of plain human neglect - failing to follow through on the goal.

2) 360-Degree Feedback : - It is a technique which is systematic collection of performance

data on an individual group, derived from a number of stakeholders like immediate
supervisors, team members, customers, peers and self. In fact anyone who has useful
information on how an employee does a job may be one of the appraisers. This technique is
highly useful in terms of broader perspective, greater self-development and multi-source
feedback is useful. 360-degree appraisals are useful to measure inter-personal skills,
customer satisfaction and team building skills. However on the negative side, receiving
feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be
less adept at providing balanced and objective feedback.
Most organisations that focus on employee development use the 360-degree tool to assess
performance and potential of staff and enable the employees to map their career path based
on the feedback. Organisations take 360-degree feedback about an employee before taking a
major decision about the professional's career.
The results from 360-degree feedback are often used by the person receiving the feedback to plan
training and development. Results are also used by some organizations in making administrative
decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation
purposes, and is sometimes called a "360-degree review."
360 degree feedback is the most comprehensive appraisal where the feedback about the employees
performance comes from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates,
team members, customers, suppliers/ vendors - anyone who comes into contact with the employee
and can provide valuable insights and information or feedback regarding the on-the-job
performance of the employee.360 degree appraisal has four integral components:
1.Self appraisal
2.Superiors appraisal
3.Subordinates appraisal
4.Peer appraisal.
Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superiors appraisal forms the traditional part of the
360 degree appraisal where the employees responsibilities and actual performance is rated by the
Subordinates appraisal gives a chance to judge the employee on the parameters like communication
and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known
as internal customers, the correct feedback given by peers can help to find employees abilities to
work in a team, co-operation and sensitivity towards others.
Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees performance and is
considered to be one of the most credible performance appraisal methods.
360 degree appraisal is also a powerful developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes others perceptions about the
employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to
assess their leadership and managing styles. This technique is being effectively used across the
globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and
Reliance Industries etc.

Advantages of 360 degree appraisal

Offer a more comprehensive view towards the performance of employees.

Improve credibility of performance appraisal.

Such colleagues feedback will help strengthen self-development.

Increases responsibilities of employees to their customers.

The mix of ideas can give a more accurate assessment.

Opinions gathered from lots of staff are sure to be more persuasive.

Not only manager should make assessments on its staff performance but other colleagues
should do, too.

People who undervalue themselves are often motivated by feedback from others.

If more staff takes part in the process of performance appraisal, the organizational culture of
the company will become more honest.

Disadvantages of 360 degree appraisal

Taking a lot of time, and being complex in administration

Extension of exchange feedback can cause troubles and tensions to several staff.

There is requirement for training and important effort in order to achieve efficient working.

It will be very hard to figure out the results.

Feedback can be useless if it is not carefully and smoothly dealt.

Can impose an environment of suspicion if the information is not openly and honestly

Who should conduct 360 degree performance appraisal ?



Managers (i.e. superior).

Team members.


Suppliers/ vendors.

Anyone who comes into contact with the employee and can provide valuable insights and

3. Psychological Appraisals: These appraisals are more directed to assess employees potential for
future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential. However quality of these appraisals largely depend
upon the skills of psychologists who perform the evaluation.
4. Assessment Centers:- This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assessees are
requested to participate in in-basket exercises, work groups, computer simulations, role playing and
other similar activities which require same attributes for successful performance in actual job. The
characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self confidence, resistance to stress,
energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental
alertness etc.
Disadvantages Costs of employees traveling and lodging, psychologists, ratings strongly
influenced by assessees inter-personal skills. Solid performers may feel suffocated in simulated
situations. Those who are not selected for this also may get affected.
Advantages well-conducted assessment center can achieve better forecasts of future performance
and progress than other methods of appraisals. Also reliability, content validity and predictive
ability are said to be high in assessment centers. The tests also make sure that the wrong people are
not hired or promoted. Finally it clearly defines the criteria for selection and promotion.

PROBLEM 3) - Rakesh has joined an MNC as an HR Head. After completion of a month he feels
that not much is done by the organization to develop the knowledge, skills & attitude of the
employees, because of which the employees performance is not good, career are in stagnancy etc.
He feels the need to have HRD but for that he has to convince the management.
a. What all reasons Rakesh can give as the need for HRD?
b. Which could be the type of HRD system that can be implemented in Rakeshs
Organisation? Critically discuss.
Answer (a) In above case, Rakesh realise that there is a need of HRD (Human Resource
Development) to develop the knowledge, skills & attitude of the employees in the organisation.
He needs to convince his management for HRD and for that he may put some below reasons in
front of management.
Human resource is needed to be developed as per the change in external environment of the
organization, and HRD helps to adapt such changes through the development of existing human
resource in terms of skill and knowledge.
The importance or significance of HRD can be explained as follows:

1. Growth of organisation: Growth of organisation is associated with the development of its

workforce. In changing situation HRD must be viewed as the total system interrelated and

interacting with other systems at work: production, finance, and marketing.

2. Development of work culture: The need of HRD is felt as it improves the efficiency of
employees, checks monotony at work, better communication, development of mutual
cooperation and creativity of all the members comes into limelight.
3. HRD Develops Competent Human Resource - HRD develops the skills and knowledge of
individual, hence, it helps to provide competent and efficient HR as per the job requirement. To
develop employment's skill and competencies, different training and development programs are
4. HRD Creates Opportunity For Career Development - HRD helps to grasp the career
development opportunities through development of human skills and knowledge. Career
development consists of personal development efforts through a proper match between training
and development opportunities with employee's need.
5. Employ Commitment - Trained and efficient employees are committed towards their jobs
which is possible through HRD. If employees are provided with proper training and
development opportunities, they will feel committed to the work and the organization.
6. Job Satisfaction - When people in the organization are well oriented and developed, they show
higher degree of commitment in actual work place. This inspires them for better performance,
which ultimately leads to job satisfaction.
7. Developing potentialities: The focus of HRD manager essentially is on enabling people to selfactualise through a systematic approach by which their existing talents are further developed.
8. Change Management - HRD facilitates planning, and management of change in an
organization. It also manages conflicts through improved labor management relation. It
develops organizational health, culture and environment which lead to change management.
9. Opportunities For Training And Development - Trainings and development programs are
tools of HRD. They provide opportunity for employee's development by matching training
needs with organizational requirement. Moreover, HRD facilitates integrated growth of
employees through training and development activities.
10. Performance Improvement - HRD develops necessary skills and abilities required to perform
organizational activities. As a result of which, employees can contribute for better performance
in an organization. This leads to greater organizational effectiveness.

Answer (B)
HRD functions are carried out through its systems and sub systems. HRD has five major systems
and each of the systems has sub systems as elaborated below: the first three systems viz., Career
system, Work system and Development system, are individual and team oriented while the fourth
and the fifth systems viz. Self renewal system and Culture Systems are organisation based.

1. Career system
2. Work system
3. Development system
4. Self-renewal system
5. Culture system
Out of above 5 systems, there are 2 systems which are critically required in Rakesh's
organisation. These are discussed as below Work system:
Work-planning system ensures that the attracted and retained human resources are utilized in
the best possible way to obtain organizational objectives. Following are the sub systems of
the work planning system.
Role analysis - Role analysis is a systematic approach used to determine the relative value
of roles within an organisation by measuring the demands and responsibilities of the role.
Role efficacy - The performance of a person working in an organization depends on his own
potential effectiveness, technical competence, managerial experience as well as the design of
the role that he performs in the organization. It is the integration of the two that ensures a
persons effectiveness in the organization. Unless a person has the requisite knowledge,
technical competence and the skills required for the role, he cannot be effective. If the role
does not allow the person to use his competence, and if he constantly feels frustrated in the
role, his effectiveness is likely to be low.
Performance plan - It is a way of employers tracking and monitoring the performance of
individuals who are potentially cause for concern and also of encouraging employees and
the team as a whole to strive to be the best they possibly can in the workplace. It can be a
positive action to take as it is a way of making sure each individual is performing at their
very best and if they are not, then strategies can be put in place to support them in their
personal and professional development.
Performance feedback and guidance - Feedback is the primary tool used to provide
employees with information and guidance. Feedback consists of two-way communication.
Employee feedback provides managers with clues regarding how they are hindering or
aiding their subordinates' work performance. Supervisory feedback should inform,
enlighten, and suggest improvements to employees regarding their performance. Supervisors
should describe specific results they have observed as close to the event as possible so ideas
stay fresh and any needed adjustments can be made in a timely manner. Successful
supervisors develop a routine that includes frequent, in-depth discussions about performance
with employees. The routine should remain informal and the discussions should focus on
how both the employee and supervisor view the employee's performance and development.

Performance appraisal - Performance Appraisals is the assessment of individuals

performance in a systematic way. It is a developmental tool used for all round development
of the employee and the organization. The performance is measured against such factors as
job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility and health. Assessment should be confined
to past as well as potential performance also. The second definition is more focused on
behaviors as a part of assessment because behaviors do affect job results.
Promotion - Promotion is vertical movement of an employee within the organisation. In
other words, promotion refers to the upward movement of an employee from one job to
another higher one, with increase in salary, status and responsibilities. Promotion may be
temporary or permanent, depending upon the needs of the organisation.
Promotion has an in-built motivational value as it elevates the authority, power and status of
an employee within an organisation. It is considered good personnel policy to fill vacancies
in a higher job through promotions from within because such promotions provide an
inducement and motivation to the employees and also remove feelings of stagnation-and
Job rotation - Job Rotation is a management approach where employees are shifted
between two or more assignments or jobs at regular intervals of time in order to expose them
to all verticals of an organization. It is a pre-planned approach with an objective to test the
employee skills and competencies in order to place him or her at the right place. In addition
to it, it reduces the monotony of the job and gives them a wider experience and helps them
gain more insights.
Job rotation is a well-planned practice to reduce the boredom of doing same type of job
everyday and explore the hidden potential of an employee. The process serves the purpose
of both the management and the employees. It helps management in discovering the talent of
employees and determining what he or she is best at. On the other hand, it gives an
individual a chance to explore his or her own interests and gain experience in different fields
or operations.
Reward - In the broadest sense of the word, performance evaluation and reward systems are
designed for employee development and raising motivation with the purpose of achieving
better and more visible results. Goals are reached by giving systematic feedback while the
effects of subjectivity and the errors that come from it, are minimized. The aim of the whole
process is to boost productivity and work quality in the entire organization.
In all successful companies at home and abroad, reward systems are established practices
with certain common and specific characteristics because the system cannot simply be
copied from one organization to another. It is necessary to focus on the specifics of an
organization and organizational culture within it when planning, understanding and
interpreting the system.
Development system: The environmental situation and the business scenario is fast changing. The
human resources within the organization have to raise up to the occasion and change accordingly if
the organization wants to be in business. The development system ensures that the retained and
utilised human resources are also continuously developed so that they are in a position to meet the
emerging needs of the hour. Following are some of the developmental sub - systems of HRD that
make sure that human resources in the organisation are continuously developed.

Induction - The Induction duly helps employees to undergo each and every phase of
environment of Company and an introduction to his team and others. It gives them the
platform of knowing and understanding the culture and knowing Who is who .It is such a
phase which gives a glimpse of entire Organization in that short span.
Training - Training refers to the process of imparting specific skills. An employee
undergoing training is presumed to have had some formal education. No training program is
complete without an element of education. Hence we can say that Training is offered to
Job enrichment - Job enrichment is a management concept that involves redesigning jobs
so that they are more challenging to the employee and have less repetitive work.
Potential appraisal - Potential appraisalrefers to the appraisal i.e. identification of the
hidden talents and skills of a person. The person might or might not be aware of them.
Potential appraisal is a future oriented appraisal whose main objective is to identify and
evaluate the potential of the employees to assume higher positions and responsibilities in the
organizational hierarchy. Many organisations consider and use potential appraisal as a part
of the performance appraisal processes.
Succession Development - Succession development is the process of identifying key
positions within a company and determining how those positions might be filled in the event
that the current employees leave, either voluntarily or involuntarily, or retire. While not a
perfect science, companies that take steps to engage in succession development can
minimize the chances that they will be left vulnerable when a key position is vacated.
Counselling - Counselling is defined as discussion of an emotional problem with an
employee, with the general objective of decreasing it. Therefore, Counseling deals with an
emotional problem.It is an act of communication generally to understand and/or decrease an
employees emotional disorder. Counselling Can be done by both, the managers and the
professionally trained counselors.
Mentor system - Mentoring is a formal or informal process for more experienced workers
to share their knowledge about a business or industry to achieve the business goals of the
organization and personal goals of the individual.

CONCLUSION - Human Resource Management focuses on matching the needs of the business
with the needs and development of employees. Tarmac depends on its people because their skills
contribute to achieving its business objectives.
A text book on Essential of HRM by Dr. Nisha Jain