Human Resource Management Material

HUMAN RESOURCE
MANAGEMENT
B B A UNIVERSITY
OFCALICUT
(V SEMESTER CORE SCHOOLOF
COURSE)
DISTANCE
EDUCATION
CalicutUniversity,P.O.
(2011ADMISSION
Malappuram,Kerala,India673
ONWARDS) 635
31
6
School of Distance Education
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
B.B.A
(2011 A DMISSION ONWARDS )
V SEMESTER
CORE COURSE
HUMAN RESOURCE
MANAGEMENT
Prepared by:
Sri.Vineethan.T
AssistantProfessor,
Dept.OfCommerce,
Govt.College,Madappally.
Scrutinized by
Dr.Venugoplan.K
AssociateProfessor,
Dept.OfCommerce,
Govt.College,Madappally.
Layout&Settings:ComputerSection,SDE
Reserved
Human Resource Management 2

CONTENTS PAGES
5
MODULE - I - 17
MODULE - II 18 - 42
MODULE - III 43 - 46
MODULE - IV 47 - 57
MODULE - V 58 - 78
School of Distance
Education
Human
Resource
Management 4
School of Distance
Education
man beings in
any
organisation.
MODULE1
Human beings
are considered
INTRODUC
as the key
TIONTO
resource in this
HUMAN
approach. Since
RESOURC
an organisation
E
is a body of
MANAGEM
people, their
ENT
acquisition,
development of
um
skills,
an
motivation for
Re
higher levels of
so
attainments, as
urc
wellasensuring
e
maintenance of
Ma
their level of
na
commitment are
ge
all significant
me
activities. All
nt
these activities
is
fall in the
a
domain of
rel
Human
ati
Resource
vel
Management.
y
ne Human
w Resource
ap Management is
pro aprocess,which
ac consists of four
h main activities,
to namely,
ma acquisition,
na development,
gin motivation, and
g maintenance of
hu human
res nagement which
our isresponsibleon
ces a staff basis for
. concentratingon
those aspects of
operations
cot
which are
t,
primarily
Cl
concerned with
ot
the relationship
hie of management
r to employees
an and employees
d to employees
Sp and with the
rie development of
gel the individual
ha andthegroup.
ve Human
def Resource
ine Management is
d responsible for
Hu maintaining
ma good human
n relations in the
Re organisation. It
so is also
urc concerned with
e development of
Ma individuals and
na achieving
ge integration of
me goals of the
nt organisationand
as those of the
tha individuals.
t Northcott
bra considershuman
nc resource
h management as
of an extension of
ma general
ma a business.
na Human resource
ge management is
me not something
nt, that could be
tha separated from
t the basic
of managerial
pro function. It is a
mp major
tin component of
g the broader
an managerial
d function.
sti Accordin
mu g to Edwin B.
lati
Flippo,
ng
Human
ev
resource
ery management is
em the planning,
plo organising,
ye directing and
e controlling of
to theprocurement,
ma development,
ke resources to the
his end that
ful individual and
les societal
t objectives are
co
accomplished.
ntr
This definition
ibu
reveals that
tio
human resource
n
(HR)
to
management is
the
that aspect of
pur
management,
po
whichdealswith
se
the planning,
of
organising,
dir nresource
ect managementcan
ing behighlighted
asfollows:
an
d 1. It is an
co inherent
ntr part of
olli managemen
ng t: Human
the resource
per management
so isinherentin
nn the process
el of
fun management
cti . This
on function is
s performed
of by all the
the managers
ent throughout
erp the
ris organisation
e. rather that
FE by the
A personnel
T department
U only. If a
R manager is
ES to get the
O best of his
F
people, he
H
must
R
M undertake
the basic
Th responsibilit
e
y of
fea
tur selecting
es people who
of will work
hu underhim.
ma
2. It of
is management
a . It is
pe performed
rv by all
managers at
asi
various
ve
levels in the
fu
organisation.
nct
It is not a
ion responsibilit
: y that a
Hu manager can
ma leave
n completely
Re to someone
so else.
urc However, he
e may secure
Ma advice and
na help in
ge managing
me people from
nt experts who
isa have special
per competence
vas in personnel
ive management
fun and
cti industrial
on relations.
H gement
u 5
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
3. Itisbasictoallfunctionalareas: HumanResourceManagementpermeatesallthefunctional
area of management such as production management, financial management, and marketing
management. That is every manager from top to bottom, working in any department has to
performthepersonnelfunctions.
4. Itispeoplecentered: HumanResourceManagementispeoplecenteredandisrelevantinall
typesoforganisations.Itisconcernedwithallcategoriesofpersonnelfromtoptothebottomof
the organisation. The broad classification of personnel in an industrial enterprise may be as
follows: (i) Bluecollar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and whitecollar workers (i.e. clerical employees), (ii) Managerial and non
managerial personnel, (iii) Professionals (such as Chartered Accountant, Company Secretary,
Lawyer,etc.)andnonprofessionalpersonnel.
5.ItinvolvesPersonnelActivitiesorFunctions:HumanResourceManagement involves
several functions concerned with the management of people at work. It includes manpower
planning,employment,placement,training,appraisalandcompensationofemployees.Forthe
performanceoftheseactivitiesefficiently,aseparatedepartmentknownasPersonnelDepartment
iscreatedinmostoftheorganisations.
6. Itisacontinuousprocess:Human Resource Management is not a one shot function. It must
beperformedcontinuouslyiftheorganisationalobjectivesaretobeachievedsmoothly.
7. It is based on Human Relations: Human Resource Management is concerned with the
motivationofhumanresourcesintheorganisation.Thehuman beings cant be dealt with like
physicalfactorsofproduction.Everypersonhasdifferentneeds,perceptionsandexpectations.
Themanagersshouldgivedueattentiontothesefactors.Theyrequirehumanrelationsskillsto
dealwiththepeopleatwork.Humanrelationsskillsarealsorequiredintrainingperformance
appraisal,transferandpromotionofsubordinates
ObjectivesofHRM
TheprimaryobjectiveofHRMistoensuretheavailabilityofcompetentandwilling
workforcetoanorganization.Thespecificobjectivesincludethefollowing:
1) Humancapital:assistingtheorganizationinobtainingtherightnumberandtypesofemployeesto
fulfilitsstrategicandoperationalgoals.
2) Developingorganizationalclimate:helpingtocreateaclimateinwhichemployeesareencouraged
todevelopandutilizetheirskillstothefullestandtoemploytheskillsandabilitiesoftheworkforce
efficiently
3) Helpingtomaintainperformancestandardsandincreaseproductivitythrougheffectivejobdesign;
providingadequateorientation,traininganddevelopment;providingperformancerelatedfeedback;
andensuringeffectivetwowaycommunication.
4) Helpingtoestablishandmaintainaharmoniousemployer/employeerelationship
5) Helpingtocreateandmaintainasafeandhealthyworkenvironment6
6) Developingprogramstomeettheeconomic,psychological,andsocialneedsoftheemployeesand
helpingtheorganizationtoretaintheproductiveemployees
7) Ensuring that the organization is in compliance with provincial/territorial and federal laws
affectingtheworkplace(suchashumanrights,employmentequity,occupationalhealthandsafety,
employmentstandards,andlabourrelationslegislation)tohelptheorganizationtoreachitsgoals.
8) Toprovideorganizationwithwelltrainedandwellmotivatedemployees
9) Toincreasetheemployeessatisfactionandselfactualization
10) Todevelopandmaintainthequalityofworklife
11) TocommunicateHRpoliciestoallemployees.
12) Tohelpmaintainethicalpolicesandbehaviour.
TheabovestatedHRMobjectivescanbesummarizedunderfourspecificobjectives:
1)SocietalObjectives:seektoensurethattheorganizationbecomessociallyresponsibletotheneeds
andchallengesofthesocietywhileminimizingthenegativeimpactofsuchdemandsuponthe
organization.Thefailureoftheorganizations to use their resources for the societys benefit in ethical
waysmayleadtorestriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational
effectiveness.ItmakessurethatHRMisnotastandalonedepartment,butratherameanstoassistthe
organization with its primary objectives. The HR department exists to serve the rest of the
organization.
3) FunctionalObjectives:is to maintain the departments contribution at a level appropriate to the
organizations needs. Human resources are to be adjusted to suit the organizations demands. The
departments value should not become too expensive at the cost of the organization it serves.
4) PersonnelObjectives:itistoassistemployeesinachievingtheirpersonalgoals,atleastasfaras
these goals enhance the individuals contribution to the organization. Personal objectives of
employeesmustbemetiftheyaretobemaintained,retainedandmotivated.Otherwiseemployee
performanceandsatisfactionmaydeclinegivingrisetoemployeeturnover.
ImportanceofHRM
HumanResourceManagementhasaplaceofgreatimportance.AccordingtoPeterF.Drucker,
The proper or improper use of the different factors of production depends on the wishes of the
humanresources.Hence,besidesotherresourceshumanresourcesneedmoredevelopment.Human
resourcescanincreasecooperationbutitneedsproperandefficientmanagementtoguideit.
Importanceofpersonnelmanagementisinrealitytheimportanceoflabourfunctionsofpersonnel
departmentwhichareindispensabletothemanagementactivityitself.Becauseofthefollowing
reasonshumanresourcemanagementholdsaplaceofimportance.
1.Ithelpsmanagementinthepreparationadoptionandcontinuingevolutionofpersonnel
programmesandpolicies. 7
Human Resource Management
School of Distance
Education
nprocess.
3.It ensures
maximum
2
benefit out
.I
t of the
s expenditure
u on training
p and
p development
li
and
e
s appreciates
s the human
k assets.
il
4. It prepares
l
workers
e
accordingto
d
the
w
changing
o
needs of
r
industryand
k
environment
e
.
r
s 5.It motivates
t workers and
h
upgrades
r
o themsoasto
u enable them
g to
h accomplish
s the
c organisation
i
goals.
e
n 6. Through
ti innovation
f
and
i
c experimenta
s tion in the
e fields of
l personnel,it
e helps in
c
reducing
ti
o casts and
h inrestoring
e the
l industrial
harmony
p
andhealthy
s employer
i employee
n relations.
i
8. It
n
establishes
c
mechanism
r
for the
e
administrati
a
on of
s
personnel
i
servicesthat
n
are
g
delegated to
p
the
r
personnel
o
department.
d
u Thus,therole
c of human
t resource
i managementis
v veryimportant
i in an
t organisation
y and it should
. not be
7. It undermined
c especially in
o large scale
n enterprises. It
tr is the key to
i
the whole
b
u organisation
t and related to
e all other
s activities of
a
the
l
o management
t i.e.,marketing,
p t is concerned
r with the
o managing
d people as
u organizational
c resources
ti rather than as
o factors of
n production. It
, involves a
f system to be
i followed in
n business firm
a to recruit,
n select, hire,
c train and
e develop
e human assets.
t Itisconcerned
c with the
. people
H dimension of
u an
m organization.
a Theattainment
n of
R organizational
e objectives
s depends, to a
o great extent,
u on the way in
r which people
c are recruited,
e developed and
M utilizedbythe
a management.
n Therefore,
a proper co
g ordination of
e human efforts
m and effective
e utilisation of
n human and
o The
t scopeofHRMis
h indeed vast. All
e major activities
r in the working
s life of a worker
m(from the time
a of his or her
t entry into an
e organization
r until he or she
i leaves the
a organizations)
l come under the
r purview of
e HRM.
s The
o major HRM
u activitiesinclude
r HR planning,
c jobanalysis,job
e design,
s employeehiring,
i employee and
s executive
n remuneration,
e employee
c motivation,
e employee
s maintenance,
s industrial
a relations and
r prospects of
y HRM.
. The
Sc scopeof
Human
o
Resourc
pe
es
of Manage
H ment
R extends
M to:
1. Aivities and
ll methods related
the to the
de management of
cis people as
ion employees in
s, any type of
str organization.
ate
2. All the
gie
dimensions
s,
relatedtopeople
fac
in their
tor
employment
s,
relationships,
pri
and all the
nci
dynamics that
ple
flowfromit.
s,
op 3. Thescopeof
era HRM is really
tio vast. All major
ns, activities in the
pra workinglifeofa
cti worker (from
ces the time of his
, orherentryinto
fun an organization
cti until he or she
on leaves it) come
s, under the
act purview of
HRM.
H agemen
ut 8
m
a
n
R
e
s
o
u
r
c
e
M
a
n
AmericanSocietyforTrainingandDevelopment(ASTD)conductedfairlyanexhaustivestudyinthis
fieldandidentifiedninebroadareasofactivitiesofHRM.
Thesearegivenbelow:
1) HumanResourcePlanning:TheobjectiveofHRPlanningistoensurethattheorganizationhas
therighttypesofpersonsattherighttimeattherightplace.Itprepareshumanresourcesinventory
withaviewtoassesspresentandfutureneeds,availabilityandpossibleshortagesinhumanresource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR
Planningdevelopsstrategiesbothlongtermandshortterm,tomeetthemanpowerrequirement.
2) DesignofOrganizationandJob:Thisisthetaskoflayingdownorganizationstructure,
authority,relationshipandresponsibilities.Thiswillalsomeandefinitionofworkcontentsforeach
position in the organization. This is done by job description. Another important step is Job
specification. Job specification identifies the attributes of persons who will be most suitableforeach
jobwhichisdefinedbyjobdescription.
3) SelectionandStaffing: Thisistheprocessofrecruitmentandselectionofstaff.Thisinvolves
matchingpeopleandtheirexpectationswithwhichthejobspecificationsandcareerpathavailable
withintheorganization.
4) TrainingandDevelopment:Thisinvolvesanorganizedattempttofindouttrainingneedsofthe
individualstomeettheknowledgeandskillwhichisneedednotonlytoperformcurrentjobbutalso
tofulfilthefutureneedsoftheorganization.
5) OrganizationalDevelopment:This is an important aspect whereby Synergetic effect is
generated in an organization i.e. healthy interpersonal and intergroup relationship within the
organization.
f)CompensationandBenefits:Thisistheareaofwagesandsalariesadministrationwherewages
andcompensationsarefixedscientificallytomeetfairnessandequitycriteria.Inadditionlabour
welfaremeasuresareinvolvedwhichincludebenefitsandservices.
g) Employee Assistance: Each employee is unique in character, personality, expectation and
temperament.Byandlargeeachoneofthemfacesproblemseveryday.Somearepersonalsomeare
official.Intheircaseheorsheremainsworried.Suchworriesmustberemovedtomakehimorher
moreproductiveandhappy.
h) UnionLabour Relations: Healthy Industrial and Labour relations are very important for
enhancingpeaceandproductivityinanorganization.ThisisoneoftheareasofHRM.
i)PersonnelResearchandInformationSystem:Knowledgeonbehavioralscienceandindustrial
psychology throws better insight into the workers expectations, aspirations and behaviour.
Advancementoftechnologyofproductandproductionmethodshavecreatedworkingenvironment
whicharemuchdifferentfromthepast.Globalizationofeconomyhasincreasedcompetitionmany
Human Resource
Management
fold.Scienceofergonomicsgivesbetterideasofdoingaworkmoreconvenientlybyanemployee.
Thus,continuousresearchinHRareasisanunavoidablerequirement.Itmustalsotakespecialcare
9
School of Distance
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eciallyonmoral
and motivation.
HRMisabroad
for concept;
im personnel
pro management
vin (PM) and
g Human resource
ex development
ch (HRD)areapart
an ofHRM.
ge
Evolutionof
of
HRM
inf
or Theevolutionof
ma theconceptof
Human
tio
Resource
n
Management
thr canbeanalysed
ou asfollows:
gh
Period before
eff
ect industrial
ive revolution
co Thesocietywas
m primarily an
mu agriculture
nic economy with
ati limited
on
production.
sys
Number of
te
specialized
ms
crafts was
on
a limited and was
co usually carried
nti out within a
nu village or
ou community with
s apprentices
bas assisting the
is master
esp craftsmen.
Co rked the
m conversion of
mu economy from
nic agriculture
ati based upon
on industry.
ch Modernization
an and increased
nel means of
we communication
re gave way to
lim industrial setup.
ite A department
d. was set up to
Pe look into
workers wages,
rio
welfare and
d
other related
of
issues. This led
in toemergenceof
du personnel
str management
ial with the major
re taskas
vol 1- Workers
uti wages
and
on
salaries
(17
2- Workers
50 record
to maintena
18 nce
50)3- Workers
housing
facilities
Ind and
ust health
rial care
rev
An important
olu event in
tio industrial
n revolution was
ma growth of
La wages. With
bo growing unrest,
ur workers across
Un theworldstarted
ion protest and this
(17 led to the
90) establishment of
the Labour unions.
wo To deal with
rks labour issues at
wo one end and
rki management at
ng the other
in Personnel
the Management
ind department had
ust tobecapableof
rie politics and
s diplomacy, thus
or the industrial
fac relation
tor department
ies emerged.
we Post Industrial
re
revolution
su
The term
bje
Human resource
cte
Management
d
saw a major
to
lon evolution after
g 1850. Various
wo studies were
rki released and
ng many
ho experiments
urs were conducted
an during this
d period which
ver gave HRM
y altogetheranew
les meaning and
s importance.
A r
bri ga
ef ve
ov pri
erv nci
ie ple
w
s
of
ma of
jor sci
the ent
ori ific
es ma
rel
na
eas
e ge
dur me
ing nt
thi (18
s 57
per
to
iod
is 19
pre 11)
sen led
ted to
bel the
ow
ev
1F olu
r tio
e n
d of
e sci
r ent
i ific
c hu
k ma
n
W res
. our
ce
T ma
a na
y ge
l me
o nt
ap
p ng
r
2- Maint
o ainin
a g
c wage
h unifor
mity
w 3- Focus
h on
i attain
c ing
better
h
produ
ctivit
w y.
a
2 Hawthorne
s studies,
conducted
i by Elton
n Mayo &
v Fritz
o Roethlisber
ger (1927
l
to1940).
v
Observations
e
andfindings
d
of

Hawthorne
i
experiment
n
shiftedthe
focusof
1- Wo
Human
r
k resource
e from
r increasing
workers
s
productivity
t to increasing
r workers
a efficiency
i through
n
i greater work
satisfaction.
H an Manage
u Resourc ment
me
1
0
School of Distance
Education
ese studies
and
observations
1 Do led to the
ugl
as transition
Mc from the
Gr administrativ
eg e and
or
passive
Th
eor Personnel
y Management
X approach to
an a more
d
dynamic
Th
eor Human
y Resource
Y Management
(19
60) approach
an which
d considered
Ab
workersasa
rah
am valuable
Ma resource.
slo
w As a result
s of these
Hi principles
era and studies,
rch
y Human
of resource
ne management
eds became
(
increasingly
1
line
9
management
5 function,
4 linked to
) core
business
operations.
T Some of the
h major
a ruitment
c and
t selection
ofskilled
i
workforc
v e.
i
t 2. Motivati
on and
i
employe
e e
s benefits

3. Training
o and
f develop
H ment of
R workforc
e
d 4. Performa
e nce
p related
a salaries
and
r
appraisal
t s.
m
eStrategic
Human
n
Resource
tManagement
aApproach
r
eWithincreasein
technology and
lknowledge base
iindustriesandas
saresultofglobal
tcompetition,
eHuman
dResource
Management is
aassuming more
scritical role
today.Itsmajor
accomplishment
1. R
is aligning
e
cindividual goals
an ion from its
d competitors and
obj aims to make
ect long term
ive impact on the
s success of
wit organization.
h
Functionsof
cor HRM
por
ate The main
go functions of
als human resource
an management are
d classified into
obj two categories:
(a) Managerial
ect
Functions and
ive
(b) Operative
s.
Functions
Str
ate (a)Managerial
gic Functions:
H Followingarethe
managerial
R functionsof
M HumanResource
foc Management
use 1. Planning:
s
The planning
on
function of
act
human resource
ion
department
s
pertains to the
tha
steps taken in
t
determining in
dif
advance
fer
personnel
ent
requirements,
iat
personnel
e
the programmes,
org policies etc.
ani After
zat determininghow
ma Organisation:
ny Under
an organisation,the
d human resource
wh manager has to
at organise the
typ operative
e functions by
of designing
pe structure of
opl relationship
e among jobs,
are personnel and
req physical factors
uir insuchawayso
ed, as to have
a maximum
per contribution
so towards
nn organisational
el objectives. In
ma this way a
na personnel
ger manager
has performs
to following
de functions: (a)
vis preparation of
e task force; (b)
wa allocation of
ys work to
an individuals; (c)
d integration of
me theeffortsofthe
ans task force; (d)
to coordination of
mo work of
tiv individual with
ate that of the
the department.
m.
3. Directing:
2. Directing is
co mulating the
nc people to work.
ern The personnel
ed manager directs
wit the activities of
h people of the
init organisation to
iati get its function
on performed
of properly. A
org personnel
ani manager guides
sed and motivates
act the staff of the
ion organisation to
an follow the path
d laid down in
sti advance.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
1
1
School of Distance
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All these
techniquesassist
in effective
4control of the
. qualities, time
Co and efforts of
ntr workers.
olli (b)Operative
ng Functions:The
: It followingare
pro theOperative
Functionsof
vid
Human
es Resource
bas Management:
ic
1. Procurement
dat
ofPersonnel: It
a
is concerned
for
est with the
abl obtaining of the
ish proper kind and
ing number of
sta personnel
nd necessary to
ard accomplish
s, organisation
ma goals. It deals
kes specificallywith
job such subjects as
an the
aly determinationof
sis manpower
an requirements,
d their
per recruitment,
for
selecting,
ma
placement and
nc
orientation,etc.
e
ap 2.
pra Developmentof
isa Personnel:
l, Development
etc has to do with
.
the increase
thr velop the
ou employees.
gh Framingasound
trai promotion
nin policy,
g, determinationof
ski the basis of
ll promotion and
tha making
t is performance
ne appraisalarethe
ces elements of
sar personnel
y development
for function.
pro3. Compensati
per
on to
job
Personnel:
per
Compensation
for
means
ma
determinationof
nc
adequate and
e.
equitable
In
remuneration of
thi
personnel for
s
their
pro
contribution to
ces
organisation
s
objectives. To
var
determine the
iou
monetary
s
compensation
tec
for various jobs
hni
is one of the
qu
most difficult
es
and important
of
function of the
trai
personnel
nin
management. A
g
number of
are
decisions are
use
taken into the
d
function, viz.,
to
jobevaluation,
de
re the suitable
mu wages and
ner salaries, policy
ati and payment of
on, wages and
pol salaries in right
icy time.
,
4. Maintaining
inv
Good
ent
Industrial
ive
Relation:
an
d Human
pre Resource
mi Management
um covers a wide
pla field. It is
ns, intended to
bo reduce strifies,
nu promote
s industrial peace,
pol providefairdeal
icy to workers and
an establish
d industrial
co democracy. It
par the personnel
tne manager is
rsh unable to make
ip, harmonious
etc relations
. It between
als managementand
o labour industrial
ass unrest will take
ists place and
the millionsofman
org dayswillbelost.
ani If labour
sat management
ion relationsarenot
for good the moral
ad and physical
opt condition of the
ing employee will
suf ons with the
fer help of
, sufficient
an communication
dit system and co
wil partnership.
l
5. Record
be
Keeping:In
a
recordkeeping
los
thepersonnel
s
manager
to
collectsand
an
maintains
org
information
ani
concernedwith
sat
thestaffofthe
ion
organisation.It
vis
isessentialfor
a
every
vis
organisation
a
becauseit
nat
assiststhe
ion
managementin
.
decision
He
makingsuchas
nc
inpromotions.
e,
6. Personnel
the
per Planningand
so Evaluation:
nn Underthis
el system
ma differenttype
na ofactivitiesare
ger evaluatedsuch
mu asevaluation
st of
cre performance,
ate personnel
har policyofan
mo organisation
nio andits
us practices,
rel personnel
ati audit,morale,
s (1989)
u distinguished
r twoapproaches
thatdescribethe
v
conceptof
e Human
y Resources
a Management.
n
Hard HRM
d
p 1 The
hard
e
versi
rf on of
o HRM
r trace
m s its
roots
a
from
n the
c conc
e eptof
a scien
p tific
mana
p
geme
r nt
ai
s
al
,
et
c.
A
P
P
R
O
A
C
H
E
S
T
O
H
R
M
Jo
hn
Sto
rey
postulatedbyFredrickW

1 Basically scientific management advocated for the adoption of a set of management

techniquesthatwouldincreaseOrganizationalefficiencyandproductivity.
2 Themanagementtechniquesmainlyinvolvedthescientificmeasurementofworkthrough
time and method studies, standardization of work tools, functional foremanship,
differentialpayratesystems,costcontainmentandinstructionalcardsforworkersetc.
3 Thehumanesideofscientificmanagementwasthatitembracedtheconceptoftheworker
as a rational economic man whose individualistic nature required motivation to gain the
bestoutofhim.
4 NB: TheHardHRM versionresembles inmanyways thecharacteristicsofscientific

managementmentionedabove.
5 ThefundamentalpointtonoteisthatHardHRMlikescientificmanagementseeksto
achieve organizational efficiency through the organizations human resources.
6 Thisisachievedthroughutilitarianinstrumentalism,whichentailsthatorganizationsmust
usetheirhumanresourcestoachieveitsdesiredgoals.
7 Thus Hard HRM is quantitative in nature as it focuses on the strategic needs of the
organizationintermsoftheamountofhumanresourcesitrequiresandwhichmustbe
treatedwithrationalitylikeanyotherfactorofproduction.
HardHRMispurelymarketdrivenanditadoptsabusinessoriented philosophyasit
aimstomanagepeopleinawaythataddsvalueandonewhichbringscompetitive
advantage.
1 The hard version of HRM is more common in a capitalist set up where people are
regardedashumancapital,whichcanbringprofitafterinvestinginit.
2 Alsotheworkerisregardedasacommodity,whichcanbeexchanged.
SoftHRM
ThesoftversionofHRMtracesitsrootstothehumanrelationsschoolofthoughtledby
EltonMayointheHawthornestudiesfrom19271932attheWesternElectricCompanyin
Chicago.
HumanRelationsemphasizedthehumandimensionofworkersthroughthedemonstration
oftheimportanceofgrouppressures,socialrelations,andattitudestowardssupervisionas
determinantsofproductivity.
Theorganizationisasocialsystemaswellasatechnoeconomicsystemwithemphasis
ontheimportanceofboththeformalandtheinformalgroup.
Similarly soft HRM is premised on the need to treat employees as whole men, valued
assets,andthemostimportantsourceofcompetitiveadvantageasopposedtotreating
themasobjects. 13
1 Itemphasizesmoreoneffectivecommunication,traininganddevelopment,motivation,
culture,valuesandinvolvementassourcesofemployeecommitment,whichiscrucialfor
gainingcompetitiveadvantage.
2 ThethrustofsoftHRMisthusbasedonmutualityofpurpose,whichrendersitunitaristin
nature.
3 NB:SoftHRMcanbesaidtoembracedevelopmentalhumanismasopposedtoutilitarian
instrumentalisminhardHRM
HRManagementVs.PersonnelManagement
Personnel
HRM Itusesoutdated
Manageme
techniquesoftraining
nt anddevelopment
HRMisthelatestdevelopmentintheevaluation
ofmanagementofman Personnel Itpracticesonly
It gives more importance to the abilities of managementprecedes divisionofwork
employees rather than evaluating them as per HRM
rules.
Itfavourscontractual
Itworksonthebasisofintegratedinitiative Performanceis employmentbasedon
evaluatedwithinthe writtenagreement
Processofdecisionmakingisfast frameworkofrules.
Itsupportsperformancerelatedremuneration
Itworksonthebasis
It uses latest techniques of training andofpiecemealinitiative
development
Processofdecision
It practices division of work along with team
makingisslow
work
Itsupportsfixed
Itfavoursallrounddevelopmentofemployees
remuneration
Strategic all tions people.
DifferencesBetweenTraditional
HRMAndStrategicHRM
Human decision 2. Itcompelspeopleatalllevels
Resource s to focus more on strategic
TraditionalHumanResource
Management regardin issuesratherthanoperational
Management:
: issues.
g
1. It focuses on employee 3. It believes that there is no
relations,topartnershipwith1. It finance,
bestwaytomanagepeoplein
internalandexternalgroups. realises marketin
anygivenorganisation.
2. Transformationinnature, that g,
FutureChallengesbeforethe
inthatithelpsthepeople people operatio
Managers
and the organisation to can ns or
Becauseofcontinuous
adapt, learns and act made or technolo
changingsocioeconomic,
quickly. breakan gy are
technologicalandpolitical
3. Is proactive and consider organisa made by
conditions,thehumanresource
various time frames in a tion an
managersofthefutureshallhave
flexiblemanner. because organisa tofacemoreproblemsinthe
Human Resource
Management
managementof
labour.Thehumanresourcemanagersoftodaymay
findthemselvesobsoleteinthefuturedueto
14
School of Distance
Education
bythemanagers
in the
management of
ch people in
an business and
ges industry are
in discussedbelow:
en 1. Increa
vir sing Size of
on Workforce:The
me size of
nt organisations is
if increasing. A
the large number of
y
multinational
do
organisations
not
havegrownover
up
the years. The
dat
number of
e
people working
the
in the
ms
organisation has
elv
also increased.
es
The
so
management of
me
increased
of
workforcemight
the
im create new
por problems and
tan challengesasthe
t workers are
ch becoming more
all conscious of
en theirrights.
ges 2. Incre
wh ase in
ich Education
mi Level: The
ght governments of
be variouscountries
fac are taking steps
ed to eradicate
illi k for the future
ter managers.
ac 3. Techn
y ological
an Advances: With
d the changes
inc coming in the
rea wake of
se advanced
the technology, new
ed jobs are created
uc and many old
ati jobs become
on redundant.There
lev is a general
el apprehension of
of immediate
the unemployment.
ir In the
citi competitive
ze world of today,
ns. industry cannot
Ed hope to survive
uc forlongwithold
ate technology. The
d problem, of
co unemployment
ns resulting from
um modernisation
ers willbe
an solvedby
d properly
wo assessing
rke manpowerneeds
rs andtrainingof
wil redundant
employeesin
l
alternateskills.
cre
4.
ate
Changes in
ver
y Political
tou Environment:
gh There may be
tas greater
Go s
ver participation in
nm trade, commerce
ent andindustrywill
s also pose many
int challenges
erf before
ere management.
nc TheGovernment
e may restrict the
in scope of private
bu sector in certain
sin areas in public
ess interest. It does
to not mean
saf chances of co
eg operation
uar between the
d Governmentand
the private sector
int areruledout.In
ere fact, there will
sts be more and
of morejointsector
wo enterprises.
rke 5. Incre
rs, asing
co Aspirations of
ns Employees:
um Considerable
ers changes have
an beennotedinthe
d worker of today
the incomparisonto
pu his counterpart
bli of 1950s. The
c workers are
at becoming more
lar aware of their
ge. higher level
Go needs and this
ver awarenesswould
nm intensify further
ent in the future
wo ology in
rke accomplishing
rs. theirgoalswhile
satisfyinghuman
needs. In the
traditional
ha bureaucratic
ngi model, the
organisations
ng
weredesignedto
Ps
achieve
yc
technical
ho functions with a
soc little
ial consideration
Sy given to the
ste psychosocial
m: system. But
In future
fut management
ure would be
, required to
org ensure effective
ani participation of
sat lower levels in
ion the management
s of the
wil organisation
l system.
be 7. Com
req puterised
uir Information
ed System: In the
to past, the
ma automation of
ke manufacturing
use processes had a
of majoreffectupon
ad the systems of
va production,
nc storage, handling
ed and packaging,
tec etc. More
hn
rec gement. This
ent revolutionary
ly, development
the would cover two
re primary areas of
has personnel
bee management
n which are as
an follows:(a)The
d use of electronic
in computersforthe
the collection and
fut processing of
ure data,and(b)The
the direct application
re of computers in
wil the managerial
l decisionmaking
be process.
the 8.
im Mobility of
pac Professional
tof
Personnel:
rev
Organisations
olu
will expand the
tio
use of
nar
boundary
y
agents whose
co
primary function
mp
will be
ute
achieving
ris
coordination
ed
with the
inf
environment.
or
One interesting
ma
fact will be an
tio
increase in the
n
mobility of
sys
various
te managerial and
m professional
on personnel
ma between
na
org als develop
ani greater technical
sat and professional
ion expertise, their
s. services will be
As in greater
ind demandbyother
ivi organisations in
du theenvironment.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
1
5
9.ChangesinLegalEnvironment:Manychangesaretakingplaceinthelegalframework
withinwhichtheindustrialrelationssystemsinthecountryarenowfunctioning.Itisthedutyofthe
humanresourceorpersonnelexecutivetobeawareofthesechangesandtobringaboutnecessary
adjustmentswithintheorganisationssothatgreaterutilisationofhumanresourcescanbeachieved.
This,indeed,isandwouldremainamajorchallengeforthepersonnelexecutive.
10.ManagementofHumanRelations: On the industrial relations front, things are not
showingmuchimprovementevenaftersomanyeffortsbythegovernmentinthisdirection.Thougha
largenumberoffactorsareresponsibleforindustrialunrestbutaverysignificantcauseisthegrowth
of multi unions in industrial complexes having different political affiliations. Under the present
conditions,itappearsthatinterunionrivalries wouldgrowmoreinthecomingyearsandmight
createmoreproblemsintheindustry.Managementofhumanrelationsinthefuturewillbemore
complicatedthanitistoday.Manyofthenewgenerationofemployeeswillbemoredifficultto
motivatethantheirpredecessors.Thiswillbeinparttheresultofachangeinvaluesystemscoupled
withrisingeducationallevels.
NewRoleofHumanResourceManagement
Human Resource Management in the New Millenium has undergone a great revolution by
questioningtheacceptedpracticesandreinventingtheorganisationsaswellasstructures.Many
traditional practices have been thrown out. As an example, it can be seen that hierarchies are
vanishingandthereisgreateremphasisonflatorganisations.Itmeansagreatdealofspecialisation
andskills.Italsomeansupgradingthenormsandstandardsofworkaswellasperformance.Thenew
roleofhumanresourcemanagementismuchmorestrategicthanbefore.
SomeofthenewdirectionsoftheroleofHRMcanbesummedupasfollows:
1. AFacilitatorofChange:Tocarrypeoplethroughupheavalrequiresthetruemanagement
ofhumanresources.
2. AnIntegratedApproachtoManagement:Ratherthanbeinganisolatedfunction,human
resource is regarded as a core activity, one which shapes a companys values. In particular, this can
haveanimpactoncustomerservice.
3. A Mediator: Establishing and balancing the new and emerging aspirations and
requirementsofthecompanyandtheindividual.
FunctionsofaHumanResourceManager
Ahumanresourcemanager,chargedwithfulfillingtheobjectivesofanorganisation,should
bealeaderwithhighintellectualpowers,avisionaryandaphilosopherwhoprovidestheinitiativeto
shapethefutureintermsofleadingthehumanbeingsinanorganisationtowardsmoreprosperous
andprogressivepolicies.
1. As an Intellectual: The basic skill in the human resource field as compared to
technologistsorfinancialexpertsistheskilltocommunicate,articulate,understandandaboveall,to
beanexpertwhenitcomestoputtingpoliciesandagreementsinblackandwhite.Thepersonnel
mans skill liesinhiscommandoverthelanguage.Apersonnelmanhastodealwithemployeesand
hemustpossesstheskillsofconductingfruitfulandsystematicdiscussionsandofcommunicating
effectively.Heshouldalsobeinapositiontoformulateprinciplesandforeseetheproblemsofthe
organisation.Thismeansthathewouldrequirethementalabilitytodealwithhispeopleinan
intelligentmanneraswellastounderstandwhattheyaretryingtosay. 16
School of Distance
Education
organisation, a
personnel administrator
must not only provide
2. A
opportunities for his
s employeestolearn,get
an
the
Educator: required training
It and
is not assimilate new
ideas but also he
enough
thathimself
a should be a
humanteacher. A personnel
manwhosimplypushes
resource
manfilesandattendslabour
has
command for conciliation
courts
overpurposes
the and other
rituals of legal
language,
procedure for the
which,
settlement of industrial
however,
disputes is not a
remains
his personnel administrator
ofthefuture.
primary
tool. He3. As a
Discriminator:
should be A
human
deeply resource
administratormusthave
interested
the capacity to
inlearning
discriminate between
andalsoin
right and wrong,
achieving
between that which is
growth.
just and unjust and
Basically,
humanmeritandnonmerit.In
other words, he should
beingslike
to begrow
a good judge when
he sits on a selection
andrealise
theirboard,
full a fair person
when he advises on
potential.
disciplinarymattersand
Inorderto
agoodobserverofright
harmonise
conduct in an
thegrowth
of organisation.
individual 4. As an
swiththat
Executive: The human
of resource
the man must
execute
of the personnel
the department. He must
decisions
ask relevant questions
of and the not be merely
manageme
involved in the office
routine
nt and its whereby the
status quo is
policies
withmaintained. He should
havetheinquisitiveness
speed,
to find out causes of
accuracy
and delay, tardy work and
wasteful practices, and
objectivity
should be keen to
.Hehasto
eliminate
streamline those
the activities
office, from the
tonepersonnel
up functions
the which have either
outlived their utility or
administra
tionare and
not consistent with
set the objectives and
purposes of the
standards
of organisation.
performan 5. As a
ce.Hehas
Leader : Being
to basically concerned
coordinate
with people or groups
thecontrol
of people, and being
functions
placed in the group
in relation
dynamics of various
to political
the and social
various
functions of an
otherorganisation, a Human
divisions
resource man must not
and,shirk
in the role of
doing so
leadership in an
he organisation.
should He, by
be settinghisownexample
in a
positionto
andbyworkingtowards
bringunity
theobjectivesofsound
ofpurpose
personnel management
and practices, must inspire
direction
hispeopleandmotivate
in them
the towards better
activities
performance.Heshould
resolvethe
perform his functions
conflicts
with sensitivity and
of feeling.
different 7. As a
groupsand
Visionary:Whileevery
build up function of an
leading
teamwork
organisation must
in evolveitsvisionof
the the
organisati
future, the primary
on.responsibility for
6. A the social
developing
s organisation
a towards
Humanist
purposive and
: progressive
Deep action falls
faithon the in personnel man.
humanHeshouldbeathinker
who
values sets the pace for
and
policymaking in an
empathy
withorganisationinthearea
humanofhumanrelations and
should gradually work
problems,
out new patterns of
especially
in human
less relations
management consistent
developed
with the needs of the
countries,
are organisation
the and the
sinesociety.Hemustponder
qua
nonon for a the social
Humanobligations of the
enterprise, especially if
resource
man.itisinthepublicsector,
He
whereonehastowork
hastodeal
withwithin the framework
ofsocialaccountability.
people
He should be in close
whotoilat
touch with socio
various
economic
levels and changes in
the country.
partake of He should
theirbe joys
able to reasonably
and forecast future events
and should constantly
sorrows.
He strive
must to meet the
comingchallenges.
Human
R
e
s
o
u
r
c
e
M
a
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a
g
e
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t
1
7
MODULEII
HUMANRESOURCEPLANNING
Introduction
HumanResourcePlanningisconcernedwiththeplanningthefuturemanpowerrequirementsarethe
organisation.HumanResourcemanagerensuresthatthecompanyhastherighttypeofpeopleinthe
rightnumberattherighttimeandplace,whoaretrainedandmotivatedtodotherightkindofworkat
the right time. Obviously, human resource planning primarily makes appropriate projections for
futuremanpowerneedsoftheorganisationenvisagesplanfordevelopingthemanpowertosuitthe
changingneedsoftheorganisationfromtimetotime,andforeseeshowtomonitorandevaluatethe
futureperformance.Italsoincludesthereplacementplansandmanagerialsuccessionplans.Human
Resourceplanningistheprocessbywhichamanagementdetermineshowanorganisationshould
movefromits currentmanpowerpositiontoits desiredmanpowerposition.Throughplanninga
managementstrivestohavetherightnumberandtherightkindsofpeopleattherightplaces,atthe
right time, to do things which result in both the organisation and the individual receiving the
maximumlongrangebenefit.
DefinitionsofHumanResourcePlanning:
AccordingtoWikstrom,HumanResourcePlanningconsistsofaseriesofactivities,viz.,
(1) Forecastingfuturemanpowerrequirements,eitherintermsofmathematicalprojectionsoftrends
intheeconomicenvironmentanddevelopmentsinindustry,orintermsofjudgementalestimates
baseduponthespecificfutureplansofacompany;
(2) Makinganinventoryofpresentmanpowerresourcesandassessingtheextenttowhichthese
resourcesareemployedoptimally;
(3) Anticipatingmanpowerproblemsbyprojectingpresentresourcesintothefutureandcomparing
them with the forecast of requirements to determine their adequacy, both quantitatively and
qualitatively;and
(d)Planningthenecessaryprogrammesofrequirements,selection,training,development,utilisation,
transfer,promotion,motivationandcompensationtoensurethatfuturemanpowerrequirementsare
properlymet.
Colemanhas defined Human Resource Planning as the process of determining manpower
requirementsandthemeansformeetingthoserequirementsinordertocarryouttheintegratedplan
of the organisation.
Humanresourceplanningis adoubleedgedweapon.Ifusedproperly,itleads tothemaximum
utilisationofhumanresources,reducesexcessivelabourturnoverandhighabsenteeism;improves
productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to
disruptionintheflowofwork,lowerproduction,lessjobsatisfaction,highcostofproductionand
constantheadachesforthemanagementpersonnel.Therefore,forthesuccessofanenterprise,human
resourceplanningisaveryimportantfunction,whichcanbeneglectedonlyatitsownperil.
ObjectivesofHRPlanning
ThemajorobjectivesofHumanResourcePlanninginanorganisationareto:
(1) ensureoptimumuseofhumanresourcescurrentlyemployed;
(2) Avoidbalancesinthedistributionandallocationofhumanresources;
(iii) assess or forecast future skill requirements of the organisations overall objectives;
(iv)Providecontrolmeasuretoensureavailabilityofnecessaryresourceswhenrequired;
(5) Controlthecostaspectofhumanresources;
(6) Formulatetransferandpromotionpolicies.
StepsinHumanResourcePlanning
Humanresourceplanningreferstoaprocessbywhichcompaniesensurethattheyhavethe
rightnumberandkindsofpeopleattherightplace,attherighttime;capableofperformingdiverse
jobs professionally. Planning the use of human resources is an important function in every
organisation.Arationalestimatetovariouscategoriesofpersonnelintheorganisationisanimportant
aspectofhumanresourceplanning.HRPinvolvesthefollowingsteps:
1. AnalysisofOrganisationalPlansandObjectives:Humanresourceplanningisapartofoverall
planoforganisation.Plansconcerningtechnology,production,marketing,finance,expansionand
diversificationgiveanideaaboutthevolumeoffutureworkactivity.Eachplancanfurtherbe
analysedintosubplansanddetailedprogrammes.Itisalsonecessarytodecidethetimehorizon
forwhichhumanresourceplansaretobeprepared.Thefutureorganisationstructureandjob
designshouldbemadeclearandchangesintheorganisationstructureshouldbeexaminedsoas
toanticipateitsmanpowerrequirements.
2. Forecasting Demand for Human Resources: Human resource planning starts with the
estimation of the number and type of personnel required at different levels and in different
departments.ThemainstepsinvolvedinHRPprocessare(a)todetermineandtoidentifypresent
andprospectiveneedsofhumanresource,(b)todiscoverandrecruittherequirednumberof
persons.(c)toselecttherightnumberandtypefromtheavailablepeople.(d)tohireandplacein
thepositionsforwhichtheyarequalified,(e)toprovideinformationtotheselectedpeopleabout
the nature ofworkassigned tothem, (f)toPromote ortotransfer as pertheneeds andthe
performanceofemployees,(g)todenoteiftheemployeesaredisinterestedortheirperformanceis
notuptothemark,(h)toterminateiftheyarenotneededortheirperformanceisbelowstandard
andshowsnohopesofimprovement.ItisthemostcrucialandcriticalareaofHRD.ThisHRD
managermustpayattentiontoplacerightmantotherightjobthroughrecruitmentselection
TrainingandPlacementofemployees.Thiscallsfortheadoptionofasystematicprocedureto
completerecruitmentandselection.
3. Forecasting Supply of Human Resources: One of the important areas of human resources
Human Resource
Management
planningistodealwithallocationofpersonstodifferentdepartmentsdependinguponthework
loadandrequirementsofthedepartments.Whileallocatingmanpowertodifferentdepartments,
19
School of Distance
Education
ents based
on
promotions
c and
a transfers.
r Allocationof
e human
resource
h shouldbeso
a planned that
s available
manpoweris
t put to full
o usetoensure
smooth
b functioning
e of all
departments.
t4. Estimating
a Manpower
k Gaps: Net
e
human
n
resource

requirements
t
ormanpower
o
gaps can be
c identified by
o comparing
n demand and
s supply
i forecasts.
d Such
e comparison
r will reveal
a either deficit
p orsurplusof
p human
o resources in
i future.
n Deficits
t suggest the
m
number of
per mayoccurin
so terms of
ns knowledge,
to skills and
be aptitudes.
rec Employees
rui deficient in
ted qualification
fro s can be
m trained
out whereas
sid employees
e with higher
wh skillsmaybe
ere given more
as enriched
sur jobs.
plu 5. Matching
s Demand
im and
pli Supply : It
es
isoneofthe
red
objectives of
un
human
da
resource
nt
planning to
to
assess the
be
demand for
red
and supply
epl
of human
oy
resources
ed
and match
or
bothtoknow
ter
shortages
mi
and
nat
surpluses on
ed.
boththeside
Si
in kind and
mil
in number.
arl
This will
y,
enable the
ga
human
ps
res bridge these
our gaps. Plans
ce to meet the
de surplus
par manpower
tm may be
ent redeploymen
to t in other
kn departments
ow and
ov retrenchment
ers in
taf consultation,
fin with the
g tradeunions.
or People may
un bepersuaded
der to quit
sta through
ffi voluntarily
ng. retirement.
On Deficit can
ce be met
the through
ma recruitment,
np selection,
ow transfer,
er promotion,
ga and training
ps plans.
are Realistic
ide plansforthe
nti procurement
fie and
d, development
pla ofmanpower
ns should be
are made after
pre considering
par the macro
ed and micro
to environment
wh ystem in the
ich total
aff organizational
ect planning.
the Organizational
ma planning
np includes
ow managerial
er activities that set
obj the companys
ect objective for the
ive future and
s determines the
of appropriate
the means for
org achieving those
objectives. The
ani
importance of
sat
HRP is
ion
elaborated on
.
the basis of the
Im key roles that it
po isplayinginthe
rta organization.
nc
e 1. Future
of Personnel
Hu Needs: Human
ma resource
n
planning is
Re
significant
so
ur because it helps
ce to determine the
Pl future personnel
an needs of the
ni organization. If
ng anorganizationis
facing
H the
RP problemofeither
is surplus or
the deficiency in
su staff strength,
bs then it is the
res had any
ult planning for
of personnel
the requirement and
abs went of
enc recruitment
e spree till late
of 1980s. The
eff problem of
ect excess staff has
ing become such a
HR prominent
problem that
pla
many private
nni
sector units are
ng.
resorting to VRS
All
voluntary
pu
retirement
bli scheme. The
c excess of labour
sec problem would
tor have been there
ent if the
erp organizationhad
ris goodHRP
es system.
fin EffectiveHRP
systemwillalso
d
enablethe
the organizationto
ms havegood
elv succession
planning.
es
ov 2. Part of
ers Strategic
taf Planning: HRP
fed has become an
no integral part of
w strategic
as planning of
the strategic
y planning. HRP
ne provides inputs
in strategy
ver
for of human
mu resources to
lati carry out the
on given strategy.
pro HRP is also
ces necessaryduring
s the
in implementation
ter stageintheform
ms of deciding to
of make resource
de allocation
cid decisionsrelated
ing to organization
wh structure,
eth process and
er human
the resources. In
org some
ani organizations
zat HRP play as
ion significant role
has as strategic
got planning and
the HR issues are
rig perceived as
ht inherent in
kin business
d management.
H nt
u
m20
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e
s
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e
School of Distance
Education
is the discretion
of HR manager
that will enable
3. the company to
Cr recruit the right
eat person with
ing rightskillstothe
Hi organization.
ghl Even the
existing staff
y
hope the job so
Ta
frequently that
len
organization
ted face frequent
Pe shortage of
rso manpower.
nn Manpower
el: planning in the
Ev form of skill
en development is
tho required to help
ug the organization
h in dealing with
Ind this problem of
ia skilled
has manpower
a shortage
gre 4. International
at
Strategies: An
po
international
ol
expansion
of
strategy of an
ed
organization is
uc
ate facilitated to a
d great extent by
un HR planning.
em The HR
plo departments
ability to fill key
ye
jobs with
d,
foreign nationals
it
an al business.
d With the
rea growing trend
ssi towards global
gn operation, the
me need for HRP
nt willaswellwill
of be the need to
em integrate HRP
plo more closely
ye with the
es organizations
fro strategic plans.
m Without
wit effective HRP
hin and subsequent
or attention to
acr employee
oss recruitment,
nat selection,
ion placement,
al development,
bor and career
der planning, the
sis growing
a competition for
ma foreign
jor executives may
ch lead to
all expensive and
en strategically
ge descriptive
tha turnover among
tis key decision
bei makers.
ng
5. Foundation
fac
for Personnel
ed
Functions:HRP
by
int provides
ern essential
ati information for
on designing and
im ntliketransfers,
ple promotions and
me layoffs.
nti
6. Increasing
ng
Investments in
per
Human
so
Resources:
nn
el Organizations
fun are making
cti increasing
on investments in
s, human resource
suc development
h compelling the
as increased need
rec for HRP.
rui Organizations
tm arerealizingthat
ent human assets
, can increase in
sel valuemorethan
ect the physical
ion assets. An
, employee who
trai gradually
nin developshis/her
g skills and
an abilities become
d a valuable asset
de for the
vel organization.
op Organizations
me can make
nt, investments in
per its personnel
so either through
nn directtrainingor
el job assignment
mo and the rupee
ve value of such a
me trained, flexible,
mo ofworkforceis
tiv responsible for
ate both short term
d and long term
pro performance of
du theorganization.
cti
7. Resistance to
ve
Change:
wo
Employees are
rkf
always reluctant
orc
whenever they
e
hear about
is
changeandeven
dif
about job
fic
rotation.
ult
Organizations
to
cannot shift one
det
employee from
er
one department
mi
to another
ne.
without any
To
specific
p
planning. Even
off
for carrying out
ici
job rotation
als
(shifting one
ha
employee from
ve
one department
sta
toanother)there
rte
isaneedtoplan
d
well ahead and
ac
match the skills
kn
required and
ow
existingskillsof
led
theemployees.
gin
g 8. Succession
tha Planning:
t Human
Resource
qu Planning
alit prepares
y people for
future
cthat when the
htimecomessuch
a
trained
l
l employees can
equickly take the
nresponsibilities
gand position of
e
stheir boss or
. seniors as and
Twhen situation
harrives.
e
9. Other
Benefits: (a)
s
t HRP helps in
ajudging the
r effectiveness of
smanpower

policies and
are
programmes of
pic
management.(b)
ke
It develops
d
awareness on
up,
effective
trai
utilization of
ne
humanresources
d,
for the overall
ass
ess development of
ed organization. (c)
an It facilitates
d selection and
ass training of
ist employees with
ed adequate
co knowledge,
nti experience and
nu aptitudes so as
ou to carry on and
sly achieve the
so organizational
objectives(d)
H an Manage
u Resourc ment
me
2
1
HRPencouragesthecompanytoreviewandmodifyitshumanresourcepoliciesandpracticesandto
examinethewayofutilizingthehumanresourcesforbetterutilization.
FactorsaffectingHRP
HRPisinfluencedbyseveralfactors.Themostimportantofthefactorsthataffecthumanresource
planningare:
1. TypeandStrategyoftheOrganization: Typeoftheorganizationdeterminestheproduction
processesinvolve,numberandtypeofstaffneededandthesupervisoryandmanagerialpersonnel
required.Iftheorganizationhasaplanfororganicgrowththenorganizationneedtohireadditional
employees. On the other hand if the organization is going for mergers and acquisition, then
organizationneedtoplanforlayoffs.
2. OrganizationalGrowthCyclesandPlanning:Allorganizationspassthroughdifferentstagesof
growthfromthedayofitsinception.Thestageofgrowthinwhichanorganizationisdeterminesthe
natureandextendsofHRP.Smallorganizationsintheearlierstagesofgrowthmaynothavewell
definedpersonnelplanning.Butastheorganizationentersthegrowthstagetheyfeeltheneedtoplan
itshumanresource.Atthisstageorganizationgivesemphasisuponemployeedevelopment.Butas
theorganizationreachesthematurestageitexperiencelessflexibilityandvariabilityresultinginlow
growthrate.HRplanningbecomesmoreformalizedandlessflexibleandlessinnovativeandproblem
like retirement and possible retrenchment dominate planning. During the declining stage of the
organizationHRPtakesadifferentfocuslikeplanningtodothelayoff,retrenchmentandretirement.
3. EnvironmentalUncertainties:Political,socialandeconomicchangesaffectallorganizationsand
thefluctuationsthatarehappeningintheseenvironmentsaffectorganizationsdrastically.Personnel
plannersdealwithsuchenvironmentaluncertaintiesbycarefullyformulatingrecruitment,selection,
traininganddevelopmentpoliciesandprogrammes.
4. TimeHorizons:HRplanscanbeshorttermorlongterm.Shorttermplansspansfromsixmonths
tooneyear,whilelongtermplansspreadoverthreetotwentyyears.Theextentoftimeperiod
dependsuponthedegreeofuncertaintythatisprevailinginanorganizationsenvironment.
5. TypeandQualityofinformation: Thequalityandaccuracyofinformationdependuponthe
claritywithwhichtheorganizationaldecisionmakershavedefinedtheirstrategy,structure,budgets,
productionscheduleandsoon.
6. NatureofJobsBeingFilled: Personnelplannersneedtobereallycarefulwithrespecttothe
natureofthejobsbeingfilledintheorganization.Employeesbelongingtolowerlevelwhoneedvery
limitedskillscanberecruitedhastilybut,whilehiringemployeesforhigherposts,selectionand
recruitmentneedtobecarriedoutwithhighdiscretion
7. Outsourcing: Manyoftheorganizationshavesurpluslabourandhenceinsteadofhiringmore
peopletheygoforoutsourcing.OutsourcingdeterminesHRP.
BarrierstoHumanResourcePlanning
HumanResourcePlannersfacesignificantbarrierswhileformulatinganHRP.Themajor
barriersareelaboratedbelow: 22
School of Distance
Education
siness. The
personnel plan
conceived and
formulated by
the HR
practitioners
R when enmeshed
pra with
ctit organizational
ion plan, might
ers maketheoverall
are strategic plan of
per the organization
cei ineffective.
ve
2) HR
d
information
as
often is
ex
incompatible
per
with other
ts
informationused
in
in strategy
ha
formulation.
ndl
Strategic
ing
per planning efforts
so have long been
nn orientedtowards
el financial
ma forecasting,
tter often to the
s, exclusion of
but other types of
are information.
not Financial
ex forecastingtakes
per precedence over
ts HRP.
in 3) Confli
ma ct may exist
na between short
gin
term and long
g
term HR needs.
bu
Fo as preparing
r people for
ex assuminggreater
am responsibilities.
ple Many managers
, areofthebelief
the that HR needs
re can be met
ca immediately
n because skills
be are available on
a the market as
co long as wages
nfl and salaries are
ict competitive.
bet Therefore, long
we times plans are
en not required,
the short planning
pre areonlyneeded.
ssu
4) There
re
is conflict
to
between
get
quantitative and
the
qualitative
wo
approaches to
rk
HRP. Some
do
people view
ne
HRP as a
on
number game
tim
designedtotrack
e
the flow of
an
people across
d
the department.
lon
Others take a
g
qualitative
ter
approach and
m
focus on
ne
individual
eds
employee
,
concernssuchas
suc
promotion and
h
car
6) Non
eer
involvement of
de
operating
vel
managers
op
renders HRP
me
ineffective.HRP
nt. isnotstrictlyan
Be HR department
st function.
res Successful
ult planningneedsa
ca coordinated
n effortonthepart
be of operating
ac managers and
hie HRpersonnel.
ve
difJobanalysis
the Developi
re ng an
isaorganizational
bal structure, results
an in jobs which
ce have to be
bet staffed. Job
we analysis is the
en procedure
the through which
qu you determine
ant the duties and
itat nature of the
ive jobs and the
an kinds of people
d (in terms of
qu skills and
alit experience) who
ati should be hired
ve for them. Some
ap ofthedefinitions
pro of job analysis
ac are:
hes
Accordin
. gto
Mic studying
hael the
L. operation
Juci s,
us,
duties and
Jo
organizational
b
aspects of jobs
anal
in order to
ysis
refe
derive
rs to
specifications or
the
astheycalledby
proc
ess
some, job
of
descriptions.
A zoandP.A pro
c Robbins,job ced
cactivities ana ure,
owithina lysi
one
rjob.Itis
s is that
d
iabasic a is
n technical syst use
gresponsi em
dto
tbilities,
atic defi
oand
D exp ne
accounta lora
e the
Cbilities tion
duti
eof a
of es,
njob.
the
I ided1. J ti e
tl nu
nby o
e m
f Job b
, be
oAnal I
i r;
r ysis d
n
e
mJob c2. Sig
a analy n
lnifica
t sis ti unt
i provi fi dChar
o des c i
a acteri
n the n
follo ti gstics
p wing o itof a
infor n sJob:
r
matio : cIt
o
n: It olocati
v d
s
osical un cti rds
nsettin io on and
, g, n , disco
psuper ju ha mfort
hvision ris za s;
y, di
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
2
3
School of Distance
Education
irrelativetiming
andimportance,
theirsimplicity,
3. routineor
W complexity,the
ha responsibilityor
t safetyofothers
th
forproperty,
e
funds,
T
confidenceand
yp
ic trust;
al 4.Which
W Materialsand
or
Equipmenta
ke
r WorkerUses:
D Metals,plastics,
oe grains,yarns,
s: milling
Sp machines,punch
ec
pressesand
ifi
c micrometers;
op 5.HowaJobis
er
Performed:
ati
on Natureof
an operation
d lifting,handling,
ta cleaning,
sk
washing,
s
th feeding,
at removing,
m drilling,driving,
ak settingupand
e
up manyothers;
an 6.RequiredPersonalAttribute
as
ordinationordexterity,physicald
si
gn 7.JobRelationship:Experience
m essentialcooperation,direction,
en
t, Sourcesof
the Informationfor
Jo ements for
b competent
An
performance are
aly
sis essential
information
needed for a job
cc
analysis.
ord
ing Informationon
ajobmaybe
to
obtainedfrom
Ge threeprincipal
org sources:
e (1) From the
R. employees
Ter who actually
perform a
ry, job;
th
(2) From other
e
employees such
ma
as supervisors
ke
and foremen
up who watch the
of workers doinga
a job and thereby
job acquire
, knowledge
aboutit;and
its
rel (3) Fromoutside
observers
ati
specially
on
appointed to
to watch
oth employees
er performing a
job job. Such
s, outside persons
are called the
an
trade job
d
analysts.
its
MethodsofJob
req
Analysis
uir
Four
met
conditions and
hod
probable
sor
hazards, and an
appr
understandingof
oac
what the work
hes
are
involves are the
utili
facts which
sed
should be
in
known by an
anal
analyst.
ysin
g
2. Sending out
jobs
.of
The
Questionnaires:
y
Properly drafted
are:
questionnaires
1. Pare sent out to
ers jobholders for
on completion and
al are returned to
Ob supervisors.
ser 3. Maintenance
vat of Long
ion Records: The
: employee
Th maintains a
e daily record of
ma duties he
teri performs,
als marking the
an time at which
d each task is
eq started and
uip finished.
me 4. Critical
nt
Incidents: In
use
thismethod,job
d,
holders are
the
asked to
wo
describe
rki
incidents
ng
co incidents so
nc collected are
ern analyzed and
ing classified
the accordingtothe
job job areas they
on describe
the 5. Personal
bas
Interviews:
is
Personal
of
interviews may
the
be held by the
ir
analyst with the
pas
employees, and
t
answers to
ex
relevant
per
questions may
ien
berecorded.But
ce.
the method is
Th
timeconsuming
e
andcostly.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
2
4
School of Distance
Education
Here, specific
characteristics of
a job are
6. obtained from
Te the experts.
ch 7.Functional
nic JobAnalysis:
al Functionaljob
Co analysis(FJA)is
nfe employee
re oriented
nc analytical
e approachofjob
M analysis.This
eth approach
od attemptsto
: describethe
Th wholepersonon
is thejob.
me Purposesand
tho UsesofJob
d Analysis
util
Theinformation
ize
providedbyjob
s
analysisisuseful
su
inalmostevery
per
phaseof
vis
employee
ors
relations.Its
wit
purposesand
h
usescanbe
ext
understoodfrom
ens
thefollowing
ive
points:
kn
ow 1. Orga
led nisation and
ge Manpower
of
Planning: It is
the
helpful in
job
organisational
.
pla duties and
nni responsibilities.
ng
2. Recru
for
itment and
it
Selection: By
def
indicating the
ine
specific
s
requirements of
lab
each job (i.e.,
our
the skills and
ne
knowledge), it
eds
provides a
in
realisticbasisfor
co
hiring, training,
ncr
placement,
ete
transfer and
ter
promotion of
ms
personnel.
an
d 3. Wage
co and Salary
ord Administration
ina : By indicating
tes the
the qualifications
act required for
ivit
doing specified
ies
jobs and the
of
risks and
the
hazardsinvolved
wo
in its
rk
performance, it
for
helps in salary
ce,
and wage
an
administration.
d
Job analysis is
cle
used as a
arl
foundation for
y
jobevaluation.
div
ide 4. Job
s Reengineering:
Jo el with specific
b characteristics
an and
aly qualifications.
sis
5. Emplo
pro
yee Training
vid
and
es
Management
inf
or Development:
ma Job analysis
tio provides the
n necessary
wh information to
ich the management
en of training and
abl development
es programmes.
us 6. Perfo
to rmance
ch
Appraisal: It
an
helps in
ge
establishing
job
clearcut
s
standards which
in
may be
ord
compared with
er
the actual
to
contribution of
per
eachindividual.
mit
the 7. Healt
ir handSafety: It
bei provides an
ng opportunity for
ma indentifying
nn hazardous
ed conditions and
by unhealthy
per environmental
so factors so that
nn corrective
me the
asu process
res ofjob
analysis:
ma
y 1.Determine
be theUseofthe
tak JobAnalysis
Information:
en
Startby
to identifyingthe
mi use towhich
ni the
mi informationwill
se beput,sincethis
willdetermine
an
thetypeofdata
d you collect
av andthe
oid technique
the youuseto
po collectthem.
ssi 2.Collectionof
bili Background
ty Information:
of
According to
acc Terry, The
ide makeup of a
nts
job, its relation
.
to other jobs,
Pro
and its
cess
requirements for
of
competent
Job
performance are
Ana
lysi
essential
sinformation
neededforajob
Foll
owi
evaluation. This
ng
information can
are
be had by
the
reviewing
imp
available
orta
nt
background
step
informationsuch
sin
as zationchartsand
org the existing job
ani descriptions.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
2
5
3. SelectionofJobsforAnalysis:Jobanalysisisacostlyandtimeconsumingprocess.Hence,itis
necessarytoselectarepresentativesampleofjobsforthepurposesofanalysis.Prioritiesofvarious
jobscanalsobedetermined.
4. CollectionofJobAnalysisData:Jobdataonfeaturesofthejob,requiredemployeequalification
andrequirements,shouldbecollectedeitherfromtheemployeeswhoactuallyperformajob;orfrom
otheremployeeswhowatchtheworkers,orfromtheoutsidepersons.
5. ProcessingtheInformation:Oncejobanalysisinformationhasbeencollected,thenextstepisto
placeitinaformthatwillmakeitusefultothosechargedwiththevariouspersonnelfunctions.
Severalissues arisewith respectto this.First,how muchdetail is needed? Second,can thejob
analysisinformationbeexpressedinquantitativeterms?Thesemustbeconsideredproperly.
6. PreparingJobDescriptionsandJobClassifications:Jobinformationwhichhasbeencollected
mustbeprocessedtopreparethejobdescriptionform.Itisastatementshowingfulldetailsofthe
activitiesofthejob.Separatejobdescriptionformsmaybeusedforvariousactivitiesinthejoband
maybecompiledlateron.Thejobanalysisismadewiththehelpofthesedescriptionforms.These
formsmaybeusedasreferenceforthefuture.
7. DevelopingJobSpecifications:Jobspecificationsarealsopreparedonthebasisofinformation
collected.Itisastatementofminimumacceptablequalitiesofthepersontobeplacedonthejob.It
specifiesthestandardbywhichthequalitiesofthepersonaremeasured.
JobDescription
Job description is a written record of the duties, responsibilities and requirements of a

particularjob.Itisconcernedwiththejobitselfandnotwiththework.Itisastatementdescribingthe
jobinsuchtermsasitstitle,location,duties,workingconditionsandhazards.Inotherwords,ittells
uswhatistobedoneandhowitistobedoneandwhy.Itisastandardoffunction,inthatitdefines
theappropriateandauthorisedcontentsofajob.
Ajobdescriptioncontainsthefollowing:
1. Jobidentification,whichincludesthejobtitle,alternativetitle,department,division,plantand
codenumberofthejob.Thejobtitleidentifiesanddesignatesthejobproperly.
2. JobSummaryservestwoimportantpurposes.Firstitprovidesashortdefinitionwhichisuseful
asadditionalidentificationinformationwhenajobtitleisnotadequate.Second,itservesasa
summarytoorientthereader.
3. Jobdutiesgiveusacomprehensivelistingorthedutiestogetherwithsomeindicationofthe
frequencyofoccurrenceorpercentageoftimedevotedtoeachmajorduty.Itisregardedasthe
heartofajob.
4. Relationtootherjobs:Thishelpsustolocatethejobintheorganisationbyindicatingthejob
immediatelybeloworaboveitinthejobhierarchy.Italsogivesusanideaofthevertical
relationshipsofworkflowandprocedures.
5. Supervision:Underitisgiventhenumberofpersonstobesupervisedalongwiththeirjobtitles,
andtheextentofsupervisioninvolvedgeneral,intermediateorclosesupervision. 26
6. Workingconditions usuallygiveusinformationabouttheenvironmentinwhichajobholder
mustwork.
JobSpecification
Thejobspecificationstatestheminimumacceptablequalificationsthattheincumbentmust
possesstoperformthejobsuccessfully.Basedontheinformationacquiredthroughjobanalysis,the
jobspecificationidentifiestheknowledge,skills,andabilitiesneededtodothejobeffectively.
AccordingtoDaleYoder,The job specification, as such a summary properly described is
thusaspecializedjobdescription,emphasizingpersonnelrequirementanddesignedespeciallyto
facilitate selection and placement.
AJobSpecificationshouldinclude:
(1) Physicalcharacteristics,whichincludehealth,strength,endurance,age,height,weight,vision,
voice,eye,handandfootcoordination,motorcoordination,andcolourdiscrimination.
(2) Psychologicalandsocialcharacteristicssuchasemotionalstability,flexibility,decisionmaking
ability,analyticalview,mentalability,pleasingmanners,initiative,conversationalabilityetc.
(3) MentalCharacteristicssuchasgeneralintelligence,memory,judgement,abilitytoconcentrate,
foresightetc.
(4) PersonalCharacteristicssuchassex,education,familybackground,jobexperience,hobbies,
extracurricularactivitiesetc.
JobDesign
Jobdesignisofcomparativelyrecentorigin.Thehumanresourcemanagershaverealizedthat
the poorly designed jobs often result in boredom to the employees, increased turnover, job
dissatisfaction,lowproductivityandanincreaseinoverallcostsoftheorganization.Allthese
negativeconsequencescanbeavoidedwiththehelpofproperjobdesign.AccordingtoJonWerner
andDeSimone,Job design is the development and alteration of the components of a job (such as the
tasks one performs, and the scope of ones responsibilities) to improve productivity and the quality of
the employees work life.
PrinciplesofJobDesign
Principlesarethebasesoftheapproachusedinjobdesign.RobertsonandSmith(1985)have
suggestedthefollowingfiveprinciplesofjobdesign:
Toinfluenceskillvariety,provideopportunitiesforpeopletodoseveraltasksandcombine
tasks.
Toinfluencetaskidentity,combinetasksandfromnaturalworkunits.
Toinfluencetasksignificance,formnaturalworkunitsandinformpeopleofthe importanceof
theirwork.
Toinfluenceautonomy,givepeopleresponsibilityfordeterminingtheirown workingsystems.
School of Distance
Education
sign
Thevarious
techniquesof
To
jobdesignand
inf
redesignareas
lue
nc follows:
e 1. Job
fee
db Simplifi
ac cation:
k; In job
est
simplific
abl
ish ation,the
go complete
od job is
rel broken
ati
on down
shi into
p small
an subparts;
d
op this is
en done so
fee that
db employe
ac
e can do
k
ch these
an jobs
nel without
s. much
M specializ
eth ed
od training.
s For job
or simplific
Te ation,
ch generally
ni
time and
qu
motion
es
studies
of
Jo areused.
b 2. JobRotation:Anothe
De orperiodicallyassigni
ment:
incr The
easi concept
ng of job
the enrichme
num nt has
ber been
of derived
task from
s Herzberg
perf s two
orm factor
ed theoryof
(i.e. motivati
incr on in
easi whichhe
ng has
the suggeste
scop dthatjob
eof content
the isoneof
job) the basic
.
factorsof
This
motivati
is
on.Ifthe
call
job is
ed
designed
job
insucha
enla
rge manner
men that it
t. becomes
4. J more
o interestin
g and
b
challengi

ngtothe
E
job
n performe
r r and
i provides
c him
h opportun
i bility,
t advance
i mentand
e growth,
s the job
itself
f becomes
o a source
r of
motivati
a ontothe
c individua
h l.
i Ac
e cor
v din
e g
m to
e P.
n Ro
bbi
t
ns,
,
Jo
r b
e enri
c ch
me
o
nt
g refe
n rs
i to
the
t
vert
i ical
o exp
n ans
ion
,
of
r the
e job
s s. It
p increasesthe
o degreeto
n whichthe
s worker
i controlsthe
p ork.
lJob
aEnlargement
nVs.Job
nEnrichment
i Job
nenlargementand
gjob enrichment
,are two
etechniques of
xjob design in
eordertoenhance
cproductivity and
usatisfaction of
tthe employees.
iHowever, they
odifferfromeach
nother in the
following
respects:
a
n1. Nature of
dJob: The major
difference
ebetween job
venrichment and
aenlargement lies
lin the nature of
uadditions to the
ajob.
tEnlargement
iinvolves a
ohorizontal
nloading or
expansion, or
oadditionoftasks
fof the same
hnature.
iEnrichment
sinvolves vertical
loading of tasks
and
w
responsibility of
the is to reduce the
job monotony in
hol performing
der repetitive jobs
; it by lengthening
im the cycle of
pro operation. On
ves the other hand,
the the purpose of
qu job enrichment
alit is making the
y job lively,
of challenging and
the satisfying. It
job satisfies the
in higher level
ter needs such as
ms ego satisfaction,
of self expression,
its sense of
int achievementand
rin advancement of
sic Jobholders.
wo
3. Skill
rth
Requirement:
.
Job enlargement
2. Pmay not
ur necessarily
po require the use
se: of additional
Th skills which the
e job holder was
pur using in
po performing the
se job before the
of enlargement.
job This is due to
enl similarity of
arg additional tasks.
em Enrichmentcalls
ent foedevelopment
an higher skills,
d initiative, and
util innovation on
iza the part of the
tio job holder in
n performing the
of job.
H
u
m
a
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s
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8
School of Distance
Education
or. In fact, the
job holder may
require more
4. direction and
Di control because
rec of enlargement
tio of his
n responsibility.
Enrichmentdoes
an
not require
d
external
Co
direction and
ntr control as these
ol: come from the
Jo job holder
b himself. He
enl requires only
arg feedback from
em hissupervisor.
ent
req JobEvaluation
uir Job
es Evaluation is a
dir system wherein
ect a particular job
ion of an enterprise
an is compared
d with its other
co jobs. In the
ntr
present
ol
industrial era,
fro
there are
m
different types
ext
of jobs which
ern
areperformedin
al
every business
so
and industrial
urc
es, enterprise.
say Comparative
su study of these
per jobs is very
vis essential
be be made on the
ca basisofdifferent
use factors such as
on duties,
the responsibilities,
bas working
is conditions,
of efforts, etc. In
suc nutshell,itmay
h be said that job
stu evaluation is a
dy processinwhich
the a particular job
str of a business
uct and industrial
ure enterprise is
of compared with
wa otherjobsofthe
ges enterprise.
for Kimball and
dif
Kimball define
fer
job evaluation as
ent
an effort to
typ
es determine the
of relativevalueof
job every job in a
sis plant to
pre determine what
par the fair basic
ed. wage for such a
Th
job should be.
e
According to
co
WendellFrench,
mp
ari job evaluation
is a process of
so
determining the
n
relative worth of
of
the various jobs
job
within the
s
organisation, so
ma
y that differential
wa y define job
ges evaluation as a
ma process of
y analysing and
be describing
pai positions,
d grouping them
to and determining
job their relative
value of
s
comparing the
of
duties of
dif
different
fer
positioninterms
ent
oftheirdifferent
wo
responsibilities
rth
and other
. requirements.
Th
e Objectivesof
JobEvaluation
rel
ati The
ve followin
garethe
wo
objective
rth sofjob
of evaluatio
a n:
job (1) To secure
me and maintain
ans complete,
rel accurate and
ati impersonal
ve descriptions of
val eachdistinctjob
ue oroccupationin
pro theentireplant;
du (2) Toprovidea
ce standard
d. procedure
for
W determining
e the relative
ma worth of
eachjobina
pla s in the plant,
nt; community or
(3) industry?
To (4) To ensure
det that like
er wages are
mi paid to all
qualified
ne
employees
the for like
rat work;
e
(5) Topromotea
of
fair and
pa accurate
y consideration
for of all
eac employees
h for
advancement
job
andtransfer;
wh
ich (6) To provide
is a factual basis
fai for the
r consideration of
an wage rates for
d similarjobsina
eq community and
uit industry.
abl Principlesof
e JobEvaluation
wit
h Therearecertain
broadprinciples,
rel
whichshouldbe
ati keptinmind
on beforeputting
to thejob
oth evaluation
er programmeinto
job practice.These
principlesare:
esource
H Manage
u ment
m
a 29
n
R
School of Distance
Education
ected for, rating
purposes should
be easily
(i) explainable in
Ra termsandasfew
te
in number as
the
job will cover the
an necessary
d requisites for
not every job
the without any
ma
overlapping.
n.
Ea (3) The
ch elements
ele should be
me clearly
nt defined and
sh properly
oul selected.
d
be (4) Any job
rat ratingplanmust
ed be sold to
on foremen and
the employees. The
bas
success in
is
of selling it will
wh depend on a
at clearcutcut
the explanation and
job illustration of
its
theplan.
elf
req (5) Foremen
uir should
es. participate
in the rating
(2 of jobs in
) their own
Th departments.
e (6) Maximum
ele cooperationcan
me be obtained
nts from employees
sel
wh n of money
en value should be
the avoided. Only
y pointvaluesand
the degrees of each
ms element should
elv bediscussed.
es
(8) Too many
ha
occupational
ve
wages should
an
not be
op
established. It
por
wouldbeunwise
tun
to adopt an
ity
occupational
to
wage for each
dis
total of point
cus
values.
s
job MethodsofJob
rati Evaluation:
ng Thefollowing
s. arethemethods
ofJob
(7)
Evaluations:
In
tal 1. Ranking
kin Method: The
g ranking method
to requires a
for committee
em typically
en composed of
an both
d managementand
em employee
plo representatives
ye
of job in a
es,
simple rank
an
order, from
y
highest to
dis
lowest. Rating
cus
specialists
sio
review the job
an n with other
aly jobs. In other
sis words, an
inf overalljudgment
or is made of the
ma relativeworthof
tio eachjob,andthe
n job is ranked
an accordingly.
d
2. Job Grading
the
or Job
rea
Classification
fte
Method : This
r
ap method works
pra by assigning
ise eachjobagrade,
eac level or class
h that corresponds
job to a pay grade
su for instance
bje Grade I, Grade
cti II,GradeIIIand
vel so forth. These
y grades or
acc classifications
ord are created by
ing identifying
to gradations of
its some common
ge denominations,
ner such as job
al responsibility,
im skill,
por knowledge,
tan education
ce required, and so
in on. Then, for
co each job grade
mp so created
ari standard job
so descriptions are
det description that
er most nearly
mi matches the job
ne description
d. determines the
Th jobs grading.
ere
3. Factor
aft
comparison
er,
Method: This
suc
method is a
h
combination of
sta
ranking and
nd
point systems.
ard
All jobs are
des
compared to
cri
each other for
pti
the purpose of
on
determining
is
their relative
ma
importance by
tch
selectingfouror
ed
five major job
wit
elements or
h
factors which
job
aremoreorless
des
common to all
cri
jobs. These
pti
elementsarenot
on
predetermined.
s
These are
in
chosen on the
the
basis of job
org
analysis. The
ani few factors
sat which are
ion customarilyused
. are : (i) mental
Th requirements(ii)
e skill (iii)
sta physical
nd requirements
ard (iv)
res w jobs are
po selected as key
nsi jobswhichserve
bili as standard
tie againstwhichall
s other jobs are
compared. key
(v)
jobisonewhose
wo
contents have
rki
been stabilised
ng
overaperiodof
co
time and whose
ndi
wage rate is
tio
consideredtobe
ns,
presentlycorrect
etc
by the
.A
managementand
fe
theunion.
H
u
m
a
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R
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s
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M
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0
AdvantagesofJobEvaluation
Jobevaluationenjoysthefollowingadvantages:
(i)JobevaluationisalogicalandtosomeExtentanobjectivemethodofrankingjobsrelativetoone
another.Itmayhelpinremovinginequalitiesinexistingwagestructuresandinmaintainingsound
andconsistentwagdifferentialsaplantorindustry.
(2) Inthecaseofnewjobs,themethodoftenfacilitatesfittingthemintotheexistingwagestructure.
(3) Themethodhelpsinremovinggrievancesarisingoutofrelativewages;anditimproveslabour
managementrelations.
(4) Themethodreplacesthemanyaccidentalfactors,occurringinlesssystematicprocedures,of
wagebargainingbymoreimpersonalandobjectivestandards,thusestablishingaclearbasisfor
negotiations.
(5) Themethodmayleadtogreateruniformityinwagerates,thussimplifyingwageadministration.
(6) Theinformationcollectedintheprocessofjobdescriptionandanalysismayalsobeusedforthe
improvement of selection, transfer and promotion procedures on the basis of comparative job
requirements.
(7) Suchinformationalsorevealsthatworkersareengagedonjobsrequiringlessskillandother
qualitiesthantheypossess,therebypointingtothepossibilityofmakingmoreefficientmeofthe
plants labour force.
MeritRating
Merit rating is a process through the ability, efficiency and the potentiality of an employee are
evaluatedforthepurposeofdeterminingwagerate,needoftrainingandfordeterminingthepolicy
forpromotionsandtransfers.
AccordingtoEdward Flippo Meritratingisasystematic,periodicand,sofarashumanly
possible, an impartial rating of an employees excellence in matters pertaining to hispresentjobto
his potentialities for a job.
ObjectsofMeritRating
TheobjectsofMeritRatingareasfollows:
1. Tomakeacomparativestudyoftheabilitiesofdifferentemployees.
2. Toprovidehigherrewardtothemoreefficientemployees.
3. Toprovethejustificationofdifferentratofwagestodifferent employeesaccordingtotheir
abilities.
4. Toestablishharmoniousrelationbetweenemployeesandemployers.
5. Tomotivatetheemployeestodobetterandmorework.
6. Todetermineapolicyforpromotionsandtransfer. 31
School of Distance
Education
7.To
evalu
ate
the
succe
ssof
traini
ng
progr
amme
s.
Job
Eval
uati
on
Vs.
Meri
t
Rati
ng
g is
Wage Job o st
Basis
sand Evaluation
f ar
Salari te
es I a d
M
ea t n af
ni te
ng i e r
s n th
t e
a e ap
B
r po
eg
t p in
in
ni e r t
ng c i m
h s en
n e t
i of
Pr q a e
oc
u r m
ed
ur e e pl
e oy
of b e ee
E y v s.
va a
lu l In
w
ati
h u th
on
i a is
c t pr
h e o
R d ce
el d . ss
ati i th
on
f T e
f h p
e i er
B r s fo
as e r
is n p m
of t r
a
D o
et n
j c
er ce
o e
m of
b s
in a
in s s
n
e mplo n fi
m yee e ci
Merit
pl of d Rating
en
o equal . I cy
y rank t an
ee and d
is status i po
e . s te
v It is nt
al relate t ial
u d h it
at with e y
e the of
d relati p an
b ve It r e
y is o m
c relate c pl
o d e oy
m with s ee
p relati s ar
ar ve e
in study b ev
g of y al
it differ ua
w ent w te
it h d.
h i T
In
th c hi
this
e h s
pro
p pr
cess
er t oc
,
fo h es
the
r e s
rem
m is
une
a a st
rati
n b ar
on
ce of i te
of an l d
a em i be
n plo t fo
ot yee y re
h is , th
er dete e e
e rmi f ap
pothe o u er
in poten y n m
t tiality e e in
m of ane r ed
en empl s a on
t oyee . t th
of are I i e
e evalu n o ba
m ated. n si
pl It t s
oyis h o of
ee rel i f hi
s. at s s
In ed a ef
th wi p n fi
is th r ci
pr rel o e en
oc ati c m cy
es ve e p ,
s st s l ab
ab ud s o ili
ili y , y ty
ty of e an
, dif t e d
ef fer h po
fi en e i te
ci t s nt
en e r ial
cy m e d it
an pl m e y.
d t
Lb y t adjust
i Ev oment.
malu
(2) Sub
i ati p
stantial
t ons r
differe
a: o
nces
t (1) b
exist
i Th l
o oug betwee
e
n n job
h m
o factors
ma s
f andthe
o
J ny factors
f
o wa emphas
i he e egrievan
s ma aces
J
e rke damong
d t. d those
i Th ( t holding
n ese othese
t diff jobs.
H
u
m
a
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M
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3
2
School of Distance
Education
by
job
specification.It
Ristheprocessof
eattractingpeople
toapplyforjobs
c
inan
r
organisation.
u
Accordingto
i
tEdwinB.
mFlippo:
eRecruitment is
nthe process of
tsearchingfor
Re prospective
cru
employeesand
itm
ent stimulating them
me to apply for jobs
ans in the
sea organisation.
rch
Factors
of
the affecting
pro Recruitment
spe Thefactors
cti affecting
ve recruitmentcan
em beclassifiedas
plo internaland
ye externalfactors.
e Theinternal
to factorsare:
sui
Wageandsalary
t
policies;
the
job T
req h
uir e
em
ent a
s g
as e
rep
res c
ent o
ed m
p d
o
s r
i e
t t
i i
o r
n e
m
o e
f n
t
e
x p
i o
s l
t i
i c
n i
g e
s
w ;
o
r Turnoverrates;
k T
i h
n e
g
n
f a
o t
r u
c r
e e
;
o
P f
r
o o
m p
o e
t r
i a
o t
n i
o
a n
n s
v
i e
n l
v
o a
l n
v d
e
d s
e
t a
h s
e o
n
k a
i l
n i
d t
y
o
f o
f
p
e o
r p
s e
o r
n a
n t
e i
l o
n
r s
e
q i
u n
i
r q
e u
d e
; s
t
T i
h o
e n
;
l
e F
u t
t i
u n
r g
e
p
e o
x l
p i
a c
n y
s
i o
o f
n
t
a h
n e
d
o
r r
e g
d a
u n
c i
t s
i a
o t
n i
o
p n
r ;
o
gHuman resource
r planning
astrategy of the
mcompany;
mSize of the
eorganisation and
sthe number of
; employees
employed;
R
eC
co
rs
ut
i
i r
n o
v w
o t
l h
v
e a
d n
d
i
n e
x
r p
e a
c n
r s
u i
i o
t n
i
n p
g l
a
e n
m s
p
l o
o f
y
e t
e h
s e
,
o
a r
n g
d a
n
f i
i s
n a
a t
l i
l o
y n
; .

G
Theexternal
fac x
tor t
s e
ar r
e: n
a
Su l
ppl

y
an c
d u
de l
ma t
nd u
of r
spe a
cifi l
c
ski
f
lls
in a
the c
lab t
our o
ma r
rke s
t; :
Co
mp O
an b
ys v
im i
ag
o
e
per u
ce s
pti l
on y
of ,
the
job t
see h
ker e
s

ab
out c
the u
co l
mp t
an u
y. r
E e
r
m
a e
y x
a
e m
x p
e l
r e
t ,

c w
o o
n m
s e
i n
d
e m
r a
a y
b
l n
e o
t
c
h b
e e
c
k r
e
o c
n r
u
r i
e t
c e
r d
u
i i
t n
m
e c
n e
t r
. t
a
F i
o n
t
j i
o g
b h
s t

i o
n r

i
l
n
o
d
o
u
s
s
e
t

r
y l
. a
b
o
E
u
c
r
o

n
m
o
a
m
r
i
k
c
e
t
f
,
a

c
t
t
h
o
e
r

s
r
:
e
p
s
u
u
t
c
a
h
t
i
a
o
s
n

a
o
f y

t m
h a
e s
t
e e
n r
t
e o
r r
p
r o
i t
s h
e e
r
i w
n i
s
t e
h
e a
n
c d
o
m s
m u
u c
n h
i
t a
y l
l
a i
s e
d
a
i
g s
o s
o u
d e
s
p
a w
h p
i o
c w
h e
r
d
e s
t u
e b
r m
m i
i t
n t
e i
n
t g
h
e i
t
q s
u e
a l
l f
i
t f
y o
r
a
n recruitment.
d P
o
q l
u i
a t
n i
t c
i a
t l
y
a
o n
f d

m l
a e
n g
a
l n
a
f t
a u
c r
t e
o
r a
s n
d
a
l h
s o
o u
r
e s
x
e o
r f
t
w
r o
e r
s k
t
r f
a o
i r
n
t w
s o
m
i e
n n

r a
e n
s d
p
e c
c h
t i
l
o d
f r
e e
n r
, p
r
a i
n s
d e
,
a
l r
l e
i s
e e
d r
v
e a
m t
p i
l o
o n
y
m o
e f
n
t J
o
p b
r
a f
c o
t r
i
c S
e C
s ,

i S
n T

t a
h n
e d

e s
n o
t
o tare
n generally
. classified
as
internal
So source
ur and
ces external
of source.
Re
(a)Internal
cr
uit Sources:This
me referstothe
nt recruitmentfrom
withinthe
The
company.The
vari
variousinternal
ous
sour
sourcesare
ces
promotion,
of
transfer,past
recr
employeesand
uit
internal
men
advertisements.
H
u
m
a
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3
3
School of Distance
Education
s external
sources are
advertisement,
(b) employment
Ex exchange, past
ter employees,
nal private
So placement
ur agencies and
consultants,
ces
walksins,
:
campus
Ex
recruitment,
ter
tradeunions,etc.
nal
so The
urc following
external
es
sourcesof
ref recruitment
ers are
to commonly
the usedbythe
pra big
cti enterprises:
ce 1. Direct
of Recruit
get
ment:
tin
An
g
importan
sui
t source
tab
le of
per recruitm
so ent is
ns direct
fro recruitm
m ent by
out placinga
sid noticeon
e. the
Th notice
e board of
var the
iou
e available
n . It is
t also
e known
r as
p recruitm
r ent at
i factory
s gate.
e 2. Casual
Callers
s or
p Unsolicit
e
ed
c
Applicat
i
ions:
f
The
y
organisat
i
ions
n
which
g
are
regarded
t
as good
h
e employer
s draw a
d steady
e streamof
t unsolicit
a ed
i applicati
l ons in
s their
o offices.
f This
t serves as
h a
e valuable
sourceof
j manpow
o er.
b 3. Media
s Advertis
e d
m professio
e nal
n journals
t is
generally
:
used
A
when
d
qualified
v
and
e
experien
r
ced
t
personne
i
l are not
s
available
e
from
m
other
e
sources.
n
4. Employ
t
i ment
n Agencies
:
n Employ
e ment
w exchange
s s run by
p the
a Governm
p ent are
e regarded
r asagood
s sourceof
o recruitm
r ent for
t unskilled
r , semi
a skilled
d and
e skilled
operative
a jobs. In
n some
c o the
a employm
s ent
e exchange
s is
, required
c bylaw.
o 5. Manage
m ment
p Consult
u ants:
l Manage
s ment
o consulta
r ncy
y firms
help the
n organisat
o ions to
t
recruit
i
technical
f
,
i
professio
c
nal and
a
manageri
t
al
i
personne
o
l they
n
specialis
e middle
o
leveland
f
top level
v
executiv
a
e
c
placeme
a
nts.
n
6. Educatio
c
nal
i
Instituti
e
s ons or
t Campus
R lose
e liaison
c with the
r universiti
u es,
vocation
i
al
t
institutes
m
and
e
manage
n ment
t institutes
: for
B recruitm
i ent to
g various
jobs.
o Recruitm
r ent from
g educatio
a nal
n institutio
i nal is a
s well
a establish
t ed
i practice
o of
n thousand
s of
m business
a andother
i organisat
n ions.
t 7. Recomm
a endation
i :
n Applican
ts
a introduce
d by
c friends
a of
n recruitm
d ent.
8. Labour
r Contrac
e tors:
l Workers
a are
t recruited
i through
v labour
e contracto
s rs who
m are
a themselv
y
es
employe
p
es ofthe
r
organisat
o
ion.
v
Recruitm
e
ent
through
t
labour
o
contracto
rs has
b
been
e
banned
for the
a
public
sector
g
units.
o
9. Telecasti
o
ng: The
d
practice
of
s telecastin
o g of
u vacant
posts
r
overT.V.
c is
e gaining
importan
c .
e 10. Raiding:
Raiding
t
h is a
e technical
s term
e used
when
days employe
.
Spe es
cial working
prog elsewher
ram e are
mes
like attracted
Job to join
Wat organisat
ch', ions.The
Yo
uth organisat
Puls ions are
e, always
Emp on the
loy
men lookout
t for
New qualified
s, professio
etc.
over nals, and
the are
T.V willing
have to offer
beco them a
me better
quit
deal if
e
pop they
ular makethe
in switch.
recr
Meritsof
uitm
External
ent
Sourceof
for
Recruitment
vari
ous
typeThemerits
sofofexternal
jobssourcesof
r alified
e Personn
c
r el: By
u using
i external
t sources
m of
e
n recruitm
t ent the
a manage
r mentcan
e make

a qualified
s and
u trained
n peopleto
d applyfor
e
vacant
r
: Jobs in
the
1. Q
organisat
u ion.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
3
4
School of Distance
Education
ed
widely a
large
2. W number
i of
d applicant
e s from
r outside
the
organisat
c
ion
h
apply.
o
The
i manage
c menthas
e a wider
: choice
W while
h selecting
e the
n people
for
v employ
a ment.
c 3. Fresh
a Talent:
n The
c insiders
i
may
e
have
s
limited
a
talents.
r
External
e
sources

a facilitate
d infusion
v of fresh
e blood
r withnew
t ideas
i into the
s enterpris
e enterpris
. e.
T 4. Competi
h tive
i Spirit:If
s a
w company
i can tap
l external
l sources,
i the
m existing
p staffwill
r have to
o compete
v with the
e outsiders
. They
t will
h work
e harderto
show
o better
v performa
e nce.
r
a Demeritsof
External
l
Sources
l
w T
o h
e
r
d
k e
i m
n e
g ri
t
s
o
o
f f
t fi
h ll
e i
n
ff: External
gvacancies
fromexternal
recruitment
sourcesareas
may lead to
follows:
dissatisfactio
n and
frustration
among
i existing
s employees.
s They may
a feel that
t their
chances of
i
promotion
s
arereduced.
f
a 2. Lengthy
c Process:
t Recruitment
fromoutside
i
takes a long
o
time. The
n
business has
tonotifythe
a vacancies
m and wait for
o applications
n to initiate
g the selection
process.
E 3. Costly
x Process: It
i is very
s costly to
t recruit staff
i from
n external
g sources. A
lotofmoney
has to be
S
spent on
t
advertiseme
a
n in
t Response:
a The
n candidates
d fromoutside
may not be
p suitable for
r the
o enterprise.
c There is no
e guarantee
s that the
s enterprise
i
will be able
n
to attract
g
right kinds
of people
o
from
f
external
a
sources.
p
p Selection
l Human
iresource
cselection is the
aprocess of
tpreferring
iqualified
oindividuals who
nare available to
sfill positions in
.an organization.
Selection
involves both
picksupthefits
and rejects the
nunfits.
cTherefore,
esometimes, it is
rcalledanegative
tprocess.
aAccording to
Th nd hire) those
o with a greater
ma likelihood of
s success in a
St job.
on Difference
e, between
Recruitment
S
andSelection
ele
cti 1. Differencein
on Objective: The
is basic objective
the ofrecruitmentis
to attract
pr
maximum
oc
number of
ess
candidates so
of
that more
dif
options are
fer available. The
ent basic objective
iat ofselectionisto
in choose best out
g of the available
bet candidates.
we 2. Difference is
en Process:
ap Recruitment
pli adopts the
ca process of
nts creating
in application pool
or as large as
de possible and
r therefore. It is
to known as
ide positiveprocess.
nti Selection adopts
fy the process
through which
(a
more and more
ca timesevennota
ndi single candidate
dat is selected.
es Therefore, it is
are known as
rej negativeprocess
ect or rejection
ed process.
an
3. Technical
d
fe Differences:
we Recruitment
r techniques are
ca not very
ndi intensive, and
dat not require high
es skills.Asagainst
are this,inselection
sel process, highly
ect specialised
ed techniques are
or required.
so Therefore,inthe
me
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
3
5
selectionprocess,onlypersonnelwithspecificskillslikeexpertiseinusingselectiontests,conducting
interviews,etc.,areinvolved.
4.DifferenceinOutcomes:Theoutcomeofrecruitmentisapplicationpoolwhichbecomesinputfor
selectionprocess.Theoutcomeofselectionprocessisintheformoffinalisingcandidateswhowill
beofferedjobs.
SelectionProcedure
1. Application Pool: Application pool builtup through recruitment process is the base for
selectionprocess.Thebasicobjectiveattherecruitmentlevelistoattractasmuchworthwhile
applicationsaspossiblesothattherearemoreoptionsavailableattheselectionstage.
2. PreliminaryScreeningandInterview:Itishighlynoneconomictoadministerandhandleall
theapplicants.Itisadvantageoustosortoutunsuitableapplicantsbeforeusingthefurther
selectionsteps.Forthispurpose,usually,preliminaryinterviews,applicationblanklistsand
shorttestcanbeused.Allapplicationsreceivedarescrutinisedbythepersonneldepartmentin
order to eliminate those applicants who do not fulfil required qualifications or work
experienceortechnicalskill,hisapplicationwillnotbeentertained.Suchcandidatewillbe
informedofhisrejection.
3. Application Blank or Application Form: An application blank is a traditional widely

accepteddeviceforgettinginformationfromaprospectiveapplicantwhichwillenablethe
management to make a properselection. Information is generally taken onthe following
items:
(a)BiographicalData:Name, fathers name, data and place of birth, age, sex, nationality,
height,weight,identificationmarks,physicaldisability,ifany,maritalstatus,andnumberof
dependants.
(b) Educational Attainment: Education (subjects offered and grades secured), training
acquiredinspecialfieldsandknowledgegainedfromprofessional/technicalinstitutesorthrough
correspondencecourses.
(c)WorkExperience:Previousexperience,thenumberofjobsheldwiththe sameor
otheremployers,includingthenatureofduties,andresponsibilitiesandthedurationofvarious
assignments,salaryreceived,grades,andreasonsforleavingthepresentemployer.
(4) SalaryandBenefits:Presentandexpected.
(5) OtherItems:Namesandaddressesofpreviousemployers,referencesetc.Anapplication
blank is a brief history sheet of an employees backgroundandcanbeusedforfuturereference,in
caseneeded.
Human Resource
Management
4. SelectionTests: Manyorganisationsholddifferentkindsofselectionteststoknowmoreabout
thecandidatesortorejectthecandidateswhocannotbecalledforinterviewetc.Selectiontests
3
6
normallysupplementtheinformationprovidedintheapplicationforms.Suchformsmaycontain
factualinformationaboutcandidates.
A.AptitudeTests:Thesemeasurewhetheranindividualhasthecapacityor talent
abilitytolearnagivenjobifgivenadequatetraining.Thesearemoreusefulforclericalandtrade
positions.
B. PersonalityTests:Attimes,personalityaffectsjobperformance.These
determinepersonalitytraitsofthecandidatesuchascooperativeness,emotionalbalanceetc.These
seek to assess an individuals motivation, adjustment to the stresses of everyday life, capacity for
interpersonalrelationsandselfimage.
C.InterestTests:These determine the applicants interests. The applicant is asked
whetherhelikes,dislikes,orisindifferenttomanyexamplesof schoolsubjects, occupations,
amusements,peculiaritiesofpeople,andparticularactivities.
D.PerformanceTests:Inthistesttheapplicantisaskedtodemonstratehis ability
todothejob.Forexample,prospectivetypistsareaskedtotype severalpageswithspeedand
accuracy.
E.IntelligenceTests:Thisaimattestingthementalcapacityofaperson with
respecttoreasoning,wordfluency,numbers,memory,comprehension,picturearrangement,etc.It
measurestheabilitytograsp,understandandtomakejudgement.
F.KnowledgeTests:Thesearedevisedtomeasurethedepthofthe knowledgeand
proficiencyincertainskillsalreadyachievedbytheapplicantssuchasengineering,accountingetc.
G. AchievementTests:Whereasaptitudeisacapacitytolearninthefuture,
achievementisconcernedwithwhatonehasaccomplished.When applicantsclaimtoknow
something,anachievementtestisgiventomeasurehowwelltheyknowit.
H.ProjectiveTests:Intheseteststheapplicantprojectshispersonalityinto free
responsesaboutpicturesshowntohimwhichareambiguous.
5.Interview:Aninterviewisaproceduredesignedtogetinformationfromapersonandtoassesshis
potentialforthejobheisbeingconsideredonthebasisoforalresponsesbytheapplicanttooral
inquiriesbytheinterviewer.Interviewerdoesaformalindepthconversationwiththeapplicant,to
evaluatehissuitability.Itisoneofthemostimportanttoolsintheselectionprocess.Thistoolisused
wheninterviewingskilled,technical,professionalandevenmanagerialemployees.Itinvolvestwo
wayexchangeofinformation.Theinterviewerlearnsabouttheapplicantandthecandidatelearns
abouttheemployer.
PrinciplesofInterviewing
Tomakeiteffective,aninterviewshouldbeproperlyplannedandconductedonertainprinciples;
EdwinB.Flippohasdescribedcertainrulesandprinciplesofgoodinterviewingtothisend:
Providepropersurroundings.Thephysicalsettingfortheinterviewshouldbebothprivateand
comfortable.
The mental setting should be one of rapport. The interviewer must be aware of nonverbal
behaviour.
Planfortheinterviewbythoroughlyreviewingjobspecificationsandjobdescriptions.
Determinethespecificobjectivesandthemethodoftheinterviewing.
Informyourselfasmuchaspossibleconcerningtheknowninformationaboutthe interviewee.
Theinterviewershouldpossessanddemonstrateabasiclikingandrespectfor people.
Questionsshouldbeaskedinamannerthatencouragestheintervieweetotalk.
Puttheapplicantatease.
Makeadecisiononlywhenallthedataandinformationareavailable.Avoid decisionsthatare
basedonfirstimpressions.
Concludetheinterviewtactfully,makingsurethatthecandidateleavesfeeling neithertooelated
norfrustrated.
Maintainsomewrittenrecordoftheinterviewduringorimmediatelyafter
it.Listenattentivelyand,ifpossible,protectively.
Questionsmustbestatedclearlytoavoidconfusionandambiguity.Maintaina balancebetween
openandovertlystructuredquestions.
Body language must not be ignored.
Theinterviewershouldmakesomeovertsigntoindicatetheendoftheinterview.
6.BackgroundInvestigation:Thenextstepintheselectionprocessistoundertakeaninvestigation
ofthoseapplicantswhoappeartoofferpotentialasemployees.Thismayincludecontactingformer
employersto confirm the candidates work record and to obtain their appraisal of his or her
performance/contactingotherjobrelatedandpersonalreferences,andverifyingtheeducational
accomplishmentsshownontheapplication.
7.PhysicalExamination:Aftertheselectiondecisionandbeforethejobofferismade,the
candidateisrequiredtoundergophysicalfitnesstest.Candidatesaresentforphysicalexamination
either to the companys physician or to a medical officer approved for the purpose. Such physical
examinationprovidesthefollowinginformation:
Whether the candidates physical measurements are in accordance with job requirements or
not?
Whetherthecandidatesuffersfrombadhealthwhichshouldbecorrected? 38
Whetherthecandidatehashealthproblemsorpsychologicalattitudeslikelytointerfere
withworkefficiencyorfutureattendance?
Whetherthecandidateisphysicallyfitforthespecificjobornot?
8. ApprovalbyAppropriateAuthority: Onthebasisoftheabovesteps,suitablecandidatesare
recommended for selection by the selection committee or personnel department. Though such a
committeeorpersonneldepartmentmayhaveauthoritytoselectthecandidatesfinally,oftenithas
staffauthoritytorecommendthecandidatesforselectiontotheappropriateauthority.
9. FinalEmploymentDecision:Afteracandidateisfinallyselected,thehumanresourcedepartment
recommends his name for employment. The management or board of the company offers
employmentintheformofanappointmentlettermentioningthepost,therank,thesalarygrade,the
datebywhichthecandidateshouldjoinandothertermsandconditionsofemployment.Somefirms
makeacontractofserviceonjudicialpaper.Usuallyanappointmentismadeonprobationinthe
beginning.Theprobationperiodmayrangefromthreemonthstotwoyears.Whentheworkand
conductoftheemployeeisfoundsatisfactory,hemaybeconfirmed.
10. Evaluation:Theselectionprocess,ifproperlyperformed,willensureavailabilityofcompetent
and committed personnel. A period audit, conducted by people who work independently of the
humanresourcedepartment,willevaluatetheeffectivenessoftheselectionprocess.Theauditorswill
doathoroughandtheintensiveanalysisandevaluatetheemploymentprogramme.
Orientation(Induction)
Theintroductionofthenewemployeetothejobisknownasinduction.Itistheprocessbywhich
newemployeesareintroducedtothepractices,policiesandpurposesoftheorganisation.Induction
follows placementand consists ofthetaskoforienting orintroducing thenew employee tothe
company,itspolicyanditspositionintheeconomy.Inductionliterallymeanshelpingtheworkerto
getorwithhisownenvironment.Afteranemployeeisassignedhisjob,itisnecessarytointroduce
himtohisjobsituation,hisassociatesinthejobandtheoverallpoliciesofthecompany.
Inotherwords,itisawelcomingprocesstheideaistowelcomeanewcomer,makehimfeelathome
andgenerateinhimafeelingthathisjob,eventhoughsmall,ismeaningfulandhassignificant
importanceaspartofthetotalorganisation.
InthewordsofJohnM.Ivancevich,Orientation orients, directs, and guides employees to

understandthework,firm,colleagues,andmission.Itintroducesnewemployeestotheorganisation,
and to his new tasks, managers, and work groups.
Orientationisonecomponentofthenewemployeesocializationprocess.Itisaprocessthrough
which a new employee is introduced to the organisation. The new employee is handed over a
rulebook,companybooklets,policymanuals,progressreportsanddocumentscontainingcompany
informationwhichareinformationalinnature.Itisresponsibilityofthehumanresourcedepartment
toexecutetheorientationprogramme.
ObjectivesofInduction
Aninductionprocessproperlydesignedshouldservethefollowingobjectives:
1) Introducethenewemployeeandtheorganisationtoeachother.
2) Createinterestinhisjobandthecompany
3) Providebasicinformationaboutworkingarrangements
4) Makethenewemployeefeel at home in the new environment
5) Indicatethestandardsofperformanceandbehaviourexpectedfromhim
6) Informhimaboutthetrainingfacilities
7) Reduceanymisunderstandingaboutthejobortheenterprise
8) Facilitategoodemployeerelations
9) Assistthenewemployeetoadjusttothecompany;and
10) Establishafavourableattitudeaboutthecompanyinthemindsoftheemployee.
InductionProcess
Thereisnospecificmodelofinductionprocess.Eachindustrydevelopsitsownprocedureasperits
requirements.Generally,aninductionprocedureinvolvesthefollowingbasicsteps:
1. Reportingfordutybeforetheconcernedheadofthedepartmentatacertainplace.
2. Theheadofthedepartmentwelcomesthenewemployee.
3. Introductiontotheorganizationalhead/branchheadbytheheadofthedepartment.
4. Organizationalhead/Branchheadintroduceshimtotheimportantemployees
5. Supervisorconcernedintroduceshimtohiscoworkersinthatsection.
6. Providinginformationabouttheduties,responsibilities,rights,facilities,welfaremeasures,etc.
7. Supervisorclarifiesthedoubtsofthenewemployeeaboutthework.
FormalandInformalInductionProgramme
1. Formal Induction Programme: Formal induction is a planned attempt to introduce new

employeestotheorganization,jobandtheworkingenvironment.Thisinductiontypemayconsume
moretimeofthesuperiorstolearnanddeliverthenewemployeesneedsatthebeginning.Butthis
Human Resource
Management
maycreatenewemployeeslessnumberoferrorsattheworkingperiodandgoodcoordination
amongalltheparties.Atthistypeofprogram,newemployeemaygetknow,whoarethemost
4
0
School of Distance
Education
might has. At
the very
beginning new
ex employees are
pe having lots of
ri questions as
en sameaskidsat
ce smallages.That
d is full normal
pe thing and
rs common thing,
on because the
to new employee
ha needs to get
ve know all the
th things, he may
e actually needs
so or not. CEO,
lu GM,
ti Section/Depart
on ment Heads,
of Senior
th Managers, and
e Line Managers
pa may involve in
rti to the formal
cu induction
la programme.
r This will
pr deliver
ob fundamental
le thingsthatnew
m employeesneed
ne to know.
w Advantage of
e the formal
m induction
pl program is
oy organization
ee will have the
be eewill
tte havethechance
r to carry his/her
ch works clearly,
an with less
ce numbers of
to errors. Also,
wi new employee
n will fit to the
th organizational
e culture and the
ne work group
w easily, and
e strongly.
m
pl 2. Informal
oy Induction
ee Programme:
s Informal
lo induction is not
ya planned and is
lt ad hock. New
y
employees learn
at
throughtrialand
th
error method.
e
They get
ve
familiarwiththe
ry
be work and work
gi environment by
nn themselves.This
in induction type
g. will make the
A stress on new
nd employee at the
al very beginning,
so because of
ne his/her not
w knowing things
e attheoperations.
m So in that case,
pl new employee
oy may leave the
org employee to the
ani organization.
zat Alsothismethod
ion will create a
at large number of
the errorsmakingby
be new employee
gin and then it may
nin creates big
g losses to the
an organization.
d Those are the
the disadvantagesof
n informal
the induction
org program. The
ani advantage of
zat informal
ion induction is, if
ma the new
y employee
ne survived, then
ed he/she may
to know the
fol process by
lo his/her
w experience, and
all the later on
the errors may
pro minimize.Butat
ces the beginning
s the vice verse
of thing of above
rec advantage may
rui creates
tin loses,ifthenew
g employeeunable
an tosurviveatthe
d organization. At
ne the movements
w which
em thiswillcreates
plo highlabourturn
overtoo.
ye
es Placement
co
Placeme
uld
ntisaprocessof
nt
assigning a
sur
specific job to
viv
each of the
e,
selected
the
candidates. It
re
involves
co
assigning a
uld
specificrankand
be
responsibility to
see
an individual. It
the
implies
y
matching the
are
requirements of
lea
a job with the
vin
qualifications of
g
thecandidate.
org
ani Accordin
zat g to Pigors and
ion Myers,
at Placement
the consists in
be matching what
gin the supervisor
nin has reason to
g think the new
the employeecando
y with what the
ha job demands
ve (job
joi requirements),
ne imposes(in
d strain, working
to conditions, etc.),
it. andoffers(inthe
So
formofpayrate,
int is not easy to
ere match all these
st, factors
co foranewworker
mp who is still in
ani many ways an
on unknown
shi quantity.Forthis
p reason, the first
wit placement
usually carries
h
withitthestatus
oth
ofprobationer.
er,
pro A few
mo basic principles
tio should be
nal followed at the
po time of
ssi placement of an
bili employeeonthe
tie job. These may
s, be enumerated
etc asbelow:
.)
Th The job
should be
ey
offered to the
fur man according
the to his
r qualifications.
sta The placement
te should neither
tha be higher nor
t itlower than the
qualifications.
e
H Manage
u ment
m
a 41
n
R
e
s
o
u
r
c
School of Distance
Education
tion in him so
that he may
realise his
Wresponsibilities
hil better towards
e the job and the
int organisation.
rod
Theemployee
uci
should be made
ng
conversant with
the
the working
job
conditions
to
prevailinginthe
the
industry and all
ne
thingsrelatingto
w
the job. He
em
should also be
plo
made aware of
ye
the penalties if
e,
he commits a
an
wrong.
eff
ort Manshouldbeplacedonthejob
sh adjustedaccordingtothequalific
oul theprincipleofplacement.
d
be Theplacementshouldbereadyb
ma
Theplacementintheinitialperio
de
oftraining.Theemployeemaybe
to
de Significanceof
vel placement
op
a The
sen significancesof
se placementareas
follows:
of
loy 1. It improves
alt employee
y morale.
an
2. It helps in
d reducing
co employee
op turnover.
era
3. It helps in
r m.
e4. It helps in
d reducing
u accident
c rates.
i
n5. It avoids
g misfit
between the
a candidateand
b thejob.
s6. It helps the
e candidate to
n work as per
t the
e predetermine
e d objectives
i of the
s organization.
agemen
t
42
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
MODULEIII
TRAININGOFEMPLOYEES
Introduction
Trainingisanorganisedactivityforincreasingtheknowledgeandskillsofpeopleforadefinite
purpose.Itinvolvessystematicproceduresfortransferringtechnicalknowhowtotheemployeesso
astoincreasetheirknowledgeandskillsfordoingspecificjobswithproficiency.Inotherwords,the
traineesacquiretechnicalknowledge,skillsandproblemsolvingabilitybyundergoingthetraining
programme. According to Edwin B. Flippo, Training is the act of increasingtheknowledgeand
skills of an employee for doing a particular job.
ObjectivesofTraining
(i)Toimparttonewentrantsthebasicknowledgeandskilltheyneedforanintelligentperformance
ofdefinitetasks;
(ii)Toassistemployeestofunctionmoreeffectivelyintheirpresentpositionsby exposingthem
tothelatestconcepts,informationandtechniquesanddevelopingtheskills,theywillneedintheir
particularfields;
(iii)Tobuildupasecondlineofcompetentofficersandpreparethemtooccupymore responsible
positions;
(iv)Tobroadenthemindsofseniormanagersbyprovidingthemwithopportunitiesforaninter
changeofexperienceswithinandoutsidewithaviewtocorrectingthenarrownessoftheoutlookthat
mayarisefromoverspecialisation;
(v)ToimpartcustomereducationforthepurposeofmeetingthetrainingneedsofCorporations
whichdealmainlywiththepublic.Inanutshell,theobjectivesoftraining are to Bridge the gap
betweenexistingperformanceabilityanddesiredperformance.
NeedandImportanceofTraining
1. IncreasingProductivity:Instructioncanhelpemployeesincreasetheirlevelofperformance
ontheirpresentjobassignment.Increasedhumanperformanceoftendirectlyleadstoincreased
operationalproductivityandincreasedcompanyprofit.
2. Improving Quality: Better informed workers are less likely to make operational mistakes.
Qualityincreasesmaybeinrelationshiptoacompanyproductorservice,orinreferencetothe
intangibleorganisationalemploymentatmosphere.
3. HelpingaCompanyFulfilitsFuturePersonnelNeeds:Organisationsthathaveagood
internal educational programme will have to make less drastic manpower changes and
adjustmentsintheeventofsuddenpersonnelalternations.Whentheneedarises,organisational
vacanciescanmoreeasilybestaffedfrominternalsourcesifacompanyinitiatesandmaintains
andadequateinstructionalprogrammeforbothitsnonsupervisoryandmanagerialemployees.
Human Resource
Management
4. ImprovingOrganisationalClimate:Anendlesschainofpositivereactionsresultsfroma
wellplannedtrainingprogramme.Productionandproductqualitymayimprove;financialincentives
4
3
School of Distance
Education
basepayrate
increasesresult.
5. Improvi
m ng Health and
ay
Safety: Proper
th
en training can
be help prevent
in industrial
cr accidents. A
ea
safer work
se
d, environment
in leads, to more
te stable mental
rn attitudes onthe
al
part of
pr
o employees.
m 6. Obsolesc
ot ence
io
Prevention:
ns
be Training and
co development
m programmes
e foster the
str
initiative and
es
se creativity of
d, employees and
le help to prevent
ss manpower
su
obsolescence,
pe
rv which may be
is due to age,
or temperamentor
y motivation, or
pr
the inability of
es
su a person to
re adapthimselfto
s technological
en changes.
su
7. Personal
e
an Growth:
d Employeesona
pe re to
rs educational
on experiences.
al Again,
ba Management
si development
s programmes
ga seem to give
in participants a
in wider
di awareness, an
vi enlarged skin,
du an enlightened
all altruistic
y philosophy,and
fr make enhanced
o personalgrowth
m possible.
th
Distinction
ei
between
r Training
ex and
po Developmen
su t
ng incr Developme
Training nt
ski eas
1. T D
lls es
r ev
an job
ai el
d skil
n op
kn ls.
i m
ow
n en
led
g t
ge
m m
for
e ea
doi
a ns
ng
n th
a
s e
par
le go
tic
a rw
ula
r th
r
n of
job
i an
. It
e oyee inattit
mall ude
p respects. s.
l It shapes
2. The term training is gene
denoteimpartingspecific
operativeworkersandemplo
3. Training is
concerned
with
maintaining
and
Executive
development
seeks to
develop
improvingcurrentjobperform
hasashorttermperspective.
4. Trainingisjobcentredinnat
5. Theroleof
trainer or
supervisor
isveryAll
development
is self
development
.
importantintraining.
Methodsof
training
Thefollowing
methodsare
generallyusedto
providetraining:
OntheJob
Training
Methods:
Thistypeof
trainingis
impartedonthe
jobandatthe
workplacewhere
theemployeeis
expectedto
performhis
duties.
1. On
Specif
ic
Job:
On
the
job
trainin
g
metho
ds is
used
to
provid
e
trainin
gfora
specifi
c job
such
as
electri
cal,
motor
mecha
nic,
plumi
ngetc.
(1) Experi
ence :
This is
the
oldest
method
of on
thejob
training
.
Learnin
g by
experie
nce
cannot
and
should
notbe
elimina
tedasa
method
of
develop
ment,
though
asa
sole
approac
h;itisa
wasteful
,time
consumi
ngand
inefficie
nt.
H
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(2) Coaching: OntheJob coaching by the superior is an important and potentially

effectiveapproachissuperior.Thetechniqueinvolvesdirectpersonnelinstructionand
guidance,usuallywithextensivedemonstration.
rotationtrainingis
2. Job Rotation: The major
the broadeningof
objectiveofjob
the
backgroundoftraineeinthe traineeisrotated
organisation.Ifanotherjob,he periodicallyfromone
acquiresageneralbackground. jobto
3. Special Projects: method them methodSpecialcoursesand
This is a very issame for lecturescanbeestablishedby
asthose positi businessorganizationsin
flexible training
usedin numerousways
device. The trainee ons
actual asapartof their
may be asked to performa of developmentprogrammes.
perform special ncein great
the 2.Conferences:Thisis
assignment; thereby er
factory. alsoanoldmethod,but
he learns the work respons stillafavoritetraining
procedure. 6. Multipl ibility.
method.Inorderto
4. Apprenticeship: e Offthejob escapethelimitationsof
Underthismethod, Manag Training straightlecturingmany
thetraineeisplaced ement: Methods: organizationshaveadopted
underaqualified Multipl Followingare guided,discussiontypeof
supervisoror e theoffthe conferences in their training
manage jobtraining programmes. In this method,
instructorforalong
techniques:
periodoftime ment the participants pools, their
dependinguponthe emphasi 1. ideasand
zes the Specia experienceinattemptingto
jobandskill
l arriveatimprovedmethodsof
required.Wages use of
Cours dealingwiththeproblems,
paidto committ
esand whichare
thetraineearemuch ees to
Lectu commonsubjectofdiscussion;
lessthanthosepaid increase res:
toqualifiedworkers. 3.CaseStudies:This
theflow Lectur
5. Vestibule Training: technique,whichhasbeen
of ideas ingis
Under this method, the developed,popularizedbythe
actual work from
most HarvardBusinessSchool,
conditions are less traditi U.S.Aisoneofthemost
created in a class experie onal commonformsoftraining.A
roomor nce form
aworkshop.The caseisawrittenaccountofa
manage of
machines,materials formal trainedreporterof analyst
rs and
andtoolsunderthis trainin seekingtodescribeanactual
to train g situation.
Human Resource
Management
4.Brainstorming:
Thisisthemethodof
stimulatingtrainees
tocreative
thinkingThis
approachdevelopedbyAlex
Osbornseekstoreduce
inhibitingforcesby
providingforamaximum
ofgroupparticipation
Quantityratherqualityistheprimaryobjective.Ideasareencouraged
discouraged.Chainreactionsfromideato
examined. There is no
trainerinbrainstormingand
it has been found that the
introduction of known
reportsintoitwillreducethe
originalityandpracticability
ofthegroupcontribution.
5. Laboratory
Training: Laboratory
trainingaddstoconventional
training by providing
situationsinwhichthetrains
themselves experience
throughtheirowninteraction
someofthe45
School of Distance
Education
ncerned about
changing
individual
co behaviour and
ndi attitude. There
tio
aretwomethods
ns
the of laboratory
y training:
are simulation and
tal sensitivity
kin training.
g
ab (a)Simulation:
out An increasing
.In popular
thi technique of
s
management
wa
y, development is
the simulation of
y performance. In
mo
this method,
re
or insteadoftaking
les participants into
s the field, the
ex field can be
per
im simulated in the
ent training session
on itself Simulation
the is the
ms
elv
presentation of
es. real situation of
La organisation in
bor the training
ato session. There
ry aretwocommon
trai simulation
nin methods of
g training. They
is are roleplaying
mo and business
re game.
co
entional training
i) methods. Its
Ro purpose is to
increase the
le
trainees skill in
pla
dealing
yin withother
g: people.Oneof
itsgreatestuses,
Ro
inconnection
le with human
pla relations
training,butit
yin
is also used in
g
sales training as
isa
well. It is
lab
spontaneous
ora
acting of a
tor
realisticsituation
y
involvingtwoor
me
more persons,
tho under classroom
d, situations.
wh Dialogue
ich spontaneously
ca growsoutofthe
n situation, as the
be traineesassigned
use toitdevelopit.
d (ii)
rat Gaming:
her Gaming
hasbeen
eas
devised
ily to
as simulate
a the
problems
su
of
ppl running
em a
ent company
of or
co evenaparticular
nv department.It
hasbeenused
for nnel.Ithasbeen
a used at all the
var levels, from the
iet
executives for
y
of the production
trai supervisors.
nin Gaming is a
g laboratory
obj
methodin
ect
ive whichrole
s playingexists
fro butitsdifference
m isthatitfocuses
inv attentionon
est administrative
me problems,
nt whileroleplayingtendto emp
str (b)SensitivityTraining:
ate method.Manyofitsadvocatesha
gy, traininggroupexperience. S
col As a result of criticism and ex
lec development
tiv training has
appeared.
e
Induction
bar
Training
gai
The
nin
introduction of
g
the new
tec
employee to the
hni
job is known as
qu
es induction. It is
to the process by
the which new
mo employees are
ral introducedtothe
e practices,
of policies and
cle purposes of the
ric organisation.
al Induction
per follows
so placement and
co onomy.
nsi Induction
sts literally means
of helping the
the workertogetor
tas with his own
k environment.
of After an
ori employee is
ent assignedhisjob,
ing itisnecessaryto
or introducehimto
int hisjobsituation,
rod his associates in
uci the job and the
ng overall policies
the ofthecompany.
ne An
w induction
em process
properly
plo designed
ye should
e servethe
to followin
g
the
purposes:
co
(1) to
mp
help the
an
newcomer to
y,
overcome his
its natural shyness,
pol any nervousness
icy he may
an experience in
d meeting new
its people in the
po new
siti environment;
on (2) to
in integrate the
the new employee
ec into the
org strong
ani motivational
sat force;
ion (3) to
an suppl
d y
infor
de
matio
vel n
op about
a the
sen natur
e for
se
workf
of orce,
bel condi
on tions
gin of
g servic
e and
wh
welfa
ich re
isafacilities.
H
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MODULEIV
PERFORMANCEAPPRAISALANDCAREERPLANNING
Introduction
PerformanceappraisalorPerformanceevaluationisamethodofevaluatingthebehaviourof
employeesinaworkplace,normallyincludingboththequantitativeandqualitativeaspectofjob
performance.Performanceherereferstothedegreeofaccomplishmentofthetasksthatmakeupan
individuals job. It indicates how well an individual fulfilling the job demands. Performance is
measuredintermsofresults.Thus,Performanceappraisalistheprocessofassessingtheperformance
orprogressofanemployee,oragroupofemployeesonthgivenjob,aswellashispotentialfor
futuredevelopment.Thus,performanceappraisalcomprisesallformalproceduresusedin
organisationstoevaluatecontributions,personality,andpotentialofindividualemployees.According
toEdwinFlippo,Performance appraisal is the systematic, periodic and an
impartial rating of an employees excellence in matters pertaining to his present job and his potential
for a better job.
AccordingtoCummings, The overall objective of performance appraisal is to improve the
efficiencyofanenterprisebyattemptingtomobilisethebestpossibleeffortsfromindividuals
employedinit.Suchappraisalsachievefourobjectivesincludingthesalaryreviewsthedevelopment
and training of individuals, planning job rotation and assistance promotions.
CharacteristicsofPerformanceAppraisal
1. AProcess:Performanceappraisalisnotaoneactplay.Itisratheraprocessthatinvolves
severalactsorsteps.
2. Systematic Assessment: Performance appraisal is a systematic assessment of an
employees strengths and weakness in the context of the given job.
3. MainObjective:Themainobjectiveofitistoknowhowwellanemployeeisgoingfor
theorganisationandwhatneedstobeimprovedinhim.
4. ScientificEvaluation:Itisanobjective,unbiasedandscientificevaluationthroughsimilar
measureandproceduresforallemployeesinaformalmanner.
5. PeriodicEvaluation:Althoughinformalappraisalstendtotakeplaceinanunscheduled
manner(oncontinuous)basiswiththeenterprisesasupervisorsevaluatetheirsubordinatesworkand
assubordinatesappraiseeachotherrandsupervisorsonadailybasis.
6. ContinuousProcess:Inadditiontobeingperiodicperformanceusuallyisanongoing
process.
PurposesofPerformanceAppraisal
Thefollowingarethemainpurposesofperformanceappraisal:
1. Appraisal Procedure: It provides a common and unified measure of performance
appraisal,sothatallemployeesareevaluatedinthesamemanner.Itgivesanindiscriminatoryrating
ofalltheemployees.
2. DecisionMaking:Performanceappraisaloftheemployeesisextremelyusefulinthe
decisionmakingprocessoftheorganization.Inselection,training,promotion,payincrementandin
transfer,performanceappraisalisveryusefultool.47
School of Distance
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m of records
regarding every
employee.Inthe
caseofindustrial
disputes even
arbitrator
or accepts these
k records in the
course of
Pe
grievance
rfo
handling
rm
procedure.
an
4. Empl
ce
oyees
Re
Development:
co Performance
rd appraisal guides
s: theemployeesin
Per removing their
for defects and
ma improving their
nc working. The
e weaknesses of
ap the employee
pra recorded in the
isa performance
l appraisal
giv providethebasis
es foranindividual
us development
a programme. If
co properly
mp recorded and
let used, the
e performance
inf appraisal gives
or the fair
ma opportunities to
tio employees to
n correct and
in rectify their
the mistakes.
for
be more alert
and competent
and to improve
na the quality of
ble supervision by
giving him a
s
complete record
Su
of employee's
pe
performance.He
rvi can guide an
sor employee,where
s he is prone to
to commit
be mistakes.
M 6. Merit
or Rating : Merit
e ratingisanother
Al name of
ert performance
an appraisal, it
gives
d
supervisors a
Co
more effective
m
tool for rating
pet
their personnel.
ent It enables them
: to make more
Per careful analysis
for of employee's
ma performanceand
nc makethemmore
e productive and
ap useful.
pra 7. Impr
isa oves Employer
l
Employee
en
Relations :
abl
Performance
es
appraisal is not
su
only a useful
per
guide for the
vis
supervisors and
or
employeesbutit
to
im also stimulates
pro freeexchangeof
ves thoughts and
the ideas between
em the supervisor
plo and his men. In
yer this way
performance
em appraisalbridges
plo the emotional
ye gapbetweenthe
e employer and
rel employee by
ati bringing them
on more close and
s by reducing
by mantoman
cre differences in
ati theorganization.
ng Uses of
a Performance
mo Appraisal
re Performa
co nce appraisal
nd helps the
uct employees in
ive Self
an improvement
d and Self
am development. It
ica helps the
ble management in
at taking decisions
mo about
sp Placement,
her Promotions,
e Transfer,
in Training and
the Development,
org etc. It helps to
ani achieve
zat individual and
ion organisational
. Itgoals.Itisuseful
to time.
the 1. Help
em in Deciding
plo Promotion:Itis
ye in the best
es interest of the
an management to
d promote the
the
employeestothe
org
positions where
ani
they can most
sat
effectively use
ion
theirabilities.A
.
wellorganised,
Th
developmentand
ere
administered
for
performance
e,
appraisal
Per
programme may
for
help the
ma
management in
nc
determining
e
whether an
Ap
individual
pra
should be
isa
considered for
l
promotion.
sh
2. Help
oul
d in Personnel
be Actions:
co Personnel
nd actions such as
uct layoffs,
ed demotions,
obj transfers and
ect discharges etc.
ive may be justified
ly only if they are
fro based on
m performance
tim appraisal.
e 3. Help
to in Wage and
Sal by the
ar performance
y appraisalresults.
Ad 4. Help
mi inTrainingand
nis Development:
tra An appropriate
tio system of
performance
n:
appraisal helps
Th
the management
e
in devising
wa
training and
ge
development
inc
programmesand
rea
in identifying
se
theareasofskill
giv
orknowledgein
en
which several
to
employees are
so
not at par with
me
the job
em
requirements.
plo
5. Aidto
ye
es Personnel
on Research:
the Performance
bas appraisal helps
is in conducting
of research in the
the field of
ir personnel
per management.
for Theories in
ma personnel field
nc are the outcome
e ofeffortstofind
ma out the cause
y and effect
be relationship
jus between
tifi personnel and
ed their
per nce.Bystudying
for thevarious
ma
H
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6. Help
in Self
Evaluation:
pro Performance
ble appraisal helps
ms the employee in
wh another way
ich
also. Every
are
employee is
fac
anxioustoknow
ed
his performance
by
on the job and
the
per hispotentialsfor
for higherjobssoas
ma to bring himself
nc to the level of
e thatposition.
ap Essentialsofan
pra Effective
ise Performance
r, Appraisal
ne System
w 1. Mutual
are
Trust: The
as
existence of an
of
atmosphere of
res
confidence and
ear
trustsothatboth
ch
ma supervisor and
y employee may
be discuss matters
de franklyandoffer
vel suggestions
op which may be
ed beneficial for
in the organisation
per and for an
so improvement of
nn the employee.
el An atmosphere
fiel of mutual trust
d. and confidence
sh sofperformance
oul appraisal should
d be made clear
be and specific.
cre The objectives
ate should be
d relevant, timely
in andopen.
the 3. Standardisat
org ion: Well
ani defined
sat performance
ion factors and
bef criteria should
ore be developed.
int These factors as
rod wellasappraisal
uci form,
ng procedures and
the techniques
ap should be
pra standardised. It
isa will help to
l ensure
sys uniformity and
te comparison of
m. ratings.
2. C4. Training :
lea Evaluators
r should be given
Ob training in
jec philosophy and
tiv techniques of
es: appraisal. They
Th should be
e provided with
obj knowledge and
ect skills in
ive documenting
s appraisals,
an conducting post
d appraisal
use interviews,
rati nce of
ng employees. The
err results of
ors performance
, rather than
etc personalitytraits
. should be given
5. Jdueweight.
ob 6. Strengthand
Re Weaknesses:
lat The raters
ed should be
ne required to
ss: justify their
Th ratings. The
e supervisor
ev should try to
alu analyse the
ato strength and
rs weaknesses of
sh anemployeeand
oul advise him on
d correcting die
foc weakness.
us 7. Individual
att Differences:
ent While designing
ion the appraisal
on system,
job individual
differences in
rel organisations
ate should be
d recognised.
be Organisations
ha differintermsof
vio size, nature,
ur needs and
an environment.
d Therefore, the
per appraisalsystem
for shouldbetailor
ma made for the
par to both the
tic employees and
ula the raters. The
r employees
org should actively
ani participate in
sat managing
ion performanceand
. in the ongoing
8. Fprocess of
ee evaluation. The
db superior should
ac play the role of
k coach and
counseller.
an
9. Post
d
Appraisal
Pa
Interview: A
rti
postappraisal
cip
interviewshould
ati
be arranged so
on
that employees
: may besupplied
Ar with feedback
ran and the
ge organisation
me may know the
nts difficulties
sh under which
oul employees
d work, so that
be their training
ma needs may be
de discovered.
to
10. Review and
co Appeal : A
m mechanism
mu forreviewof
nic ratings
ate should be
the provided.
Which
rati
particular
ng
technique is to
s
be phyand
ad objectives of an
op organisation.
ted Processof
for Performance
ap Appraisal
pr Various
ais stepsin
appraisin
al
g
sh performa
ou nceof
ld employe
be esareas
go follows:
ve 1. Establishing
rn Performance
ed Standard: The
by process of
su evaluation
ch begins with the
fac establishment of
tor Performance
s Standards.
as While designing
the a job and
siz formulating a
e, job description,
fin performance
an standards are
cia usually
l developed for
res the position.
ou This standard
rce should be very
s, clear and
ph objective
ilo enough to be
so understood and
measured.
H ource
u Manage
mment
a
n 49
R
e
s
2. Communicating Performance Expectations to Employees: The next important step is to

communicate the aforesaid standards to the concerned employees. Their jobs and jobsrelated
behaviourshouldbeclearlyexplainedtothem.
3.MeasuringActualPerformance: Thethirdstepisthemeasurementofactualperformance.To
determinewhatactualperformanceis,itisnecessarytoacquireinformationaboutitweshouldbe
concernedwithhowwemeasureandwhatwemeasure.Foursourcesofinformationarefrequently
usedtomeasureactualperformance:personalobservation,statisticalreports,oralreportsandwritten
reports.
4. Comparing Actual Performance with Standards: The next step is comparison of actual
performancewiththestandards.Bydoingsothepotentialityforgrowthandadvancementofan
employeecanbeappraisedandjudged.Effortsaremadetofindoutdeviationsbetweenstandard
performanceandactualperformance.
5. Discussing the Appraisal with the Employee: After comparing actual performance with
standards, the next step is to discuss periodically the appraisal with the employee. Under this
discussiongoodpoints,weakpoints,anddifficultiesareindicatedanddiscussedsothatperformance
isimproved.
6. Initiating Corrective Action: The final step is the initiation of corrective action whenever
necessary. Immediate corrective action can be of two types. One is immediate and deals
predominantlywithsymptoms.Theotherisbasicanddelvesintocauses.
MethodsorTechniquesofPerformanceAppraisal
Several methods and techniques are used for evaluating employee performance. They may be
classifiedintotwobroadcategories.TheyareTraditionalMethodsandModernMethods.
TraditionalMethods:
1. RankingMethod: Rankingmethodistheoldestandsimplestmethodofrating.Here,each
employee is compared with all others performing the same job and then he is given a
particularranki.e.FirstRank,SecondRanketc.Thismethodranksallemployeesbutitdoes
nottellusthedegreeorextentofsuperiority.Inthismethod,theperformanceofindividual
employeeisnotcomparedwiththestandardperformance.Here,thebestisgivenfirstrank
andpoorestgetsthelastrank.
2. PairedComparison:Inmethodiscomparativelysimplerascomparedtorankingmethod.In
this method, the evaluator ranks employees by comparing one employee with all other
employeesinthegroup.Theraterisgivenslipswhere,eachsliphasapairofnames,therater
putsatickmarknextthoseemployeewhomheconsiderstobethebetterofthetwo.This
employeeiscomparednumberoftimessoastodeterminethefinalranking.
3. Grading Method: Under this method of performance appraisal, different grades are
developedforevaluatingtheabilityofdifferentemployeesandthentheemployeesareplaced
inthesegrades.Thesegradesmaybeasfollows:(i)Excellent;(ii)verygood;(iii)Good;(iv)
Average;(v)Bad;(vi)Worst.
4. MantoManComparisonMethod:ThismethodwasfirstusedinUSAarmyduringthe1st
World War. Under this
Human Resource
Management
method, few factors are selected for analysis purposes. These factors are: leadership,
dependabilityandinitiative.Afterthatascaleisdesignedbytherateforeach
factor.Ascaleofpersonisalsodevelopedforeachselectedfactor.Eachpersontoberatedis
5
0
comparedwiththepersoninthescale,andcertainscoresforeachfactorareawardedto
him/her.Inotherwords,insteadofcomparingawholemantoawholemanpersonnelare
comparedtothekeymaninrespectofonefactoratatime.Wecanusethismethodinjob
evaluation.ThismethodisalsoknownastheFactorComparisonMethod.
5. GraphicRatingScaleMethod:Thisistheverypopular,traditionalmethodofperformance
appraisal.Underthismethod,scalesareestablishedforanumberoffairlyspecificfactors.A
printedformissuppliedtotherater.Theformcontains anumberoffactorstoberated.
Employee characteristics and contributions include qualities like quality of work,
dependability,creativeabilityandsoon.Thesetraitsarethenevaluatedonacontinuousscale,
wheretheraterplacesamarksomewherealongthescale.Thescoresaretabulatedanda
comparisonofscoresamongthedifferentindividualsismade.Thesescoresindicatethework
ofeveryindividual.
6. Checklist Method: The main reason for using this method is to reduce the burden of
evaluator.Inthismethodofevaluationtheevaluatorisprovidedwiththeappraisalreport
which consist of series of questions which is related to the appraise. Such questions are
preparedinamannerthatreflectsthebehavioroftheconcernedappraise.
7. CriticalIncidentsMethod:Thismethodisveryusefulforfindingoutthoseemployeeswho
havethehighestpotentialtoworkinacriticalsituation.Suchanincidenceisveryimportant
fororganizationastheygetasense,howasupervisorhashandledasituationinthecaseof
suddentroubleinanorganization,whichgivesanideaabouthisleadershipqualitiesand
handlingofsituation.Itisalsosaidtobeacontinuousappraisalmethodwhereemployeesare
appraisedcontinuouslybykeepinginmindthecriticalsituation.Inthismethod,onlythecase
ofsuddentroubleandbehaviourassociatedwiththeseincidentsortroublearetakenfor
evaluation.
8. Essay Method: In this method, the rater writes a detailed description on an employees
characteristicsandbehavior,Knowledgeaboutorganizationalpolicies,proceduresandrules,
Knowledge about the job Training and development needs of the employee, strengths,
weakness,pastperformance,potentialandsuggestionsforimprovement.Itissaidtobethe
encouragingandsimplemethodtouse.Itdoesnotneeddifficultformatsandspecifictraining
tocompleteit.
ModernMethods:
1.ManagementbyObjective(MBO)
ItwasPeterF.DruckerwhofirstgavetheconceptofMBOtotheworldin1954whenhisbookThe
PracticeofManagementwasfirstpublished.Managementbyobjectivecanbedescribedas,aprocess
wherebythesuperiorandsubordinatemanagersofanorganisationjointlyidentifyitscommongoals,
define each individuals major areas of responsibility in terms of results expected of him and use
thesemeasuresasguidesforoperatingtheunitandassessingthecontributionofeachofitsmembers.
EssentialCharacteristicsofMBO:
1. APhilosophy:Managementbyobjectiveisaphilosophyorasystem,andnotmerelyatechnique.
2. ParticipativeGoalSetting:Itemphasisesparticipativegoalsetting.
3.ClearlyDefineIndividualResponsibilities:Managementbyobjective(MBO)clearlydefines
each individuals responsibilities in terms of results. 51
School of Distance
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istobe
accomplished
(method).
4. 5.Objective
Ac Needinto
co PersonalGoal:
m MBOconverts
pli objectiveneed
sh intopersonal
me goalsatevery
nt levelinthe
of organisation.
TheProcessof
Go
MBO:
al:
1. Establishme
It
ntofGoal: The
foc
first step is to
use
establish the
sa
goals of each
ten
subordinate. In
sio
n some
on organisations,
wh superiors and
at subordinates
go worktogetherto
al establish goals.
mu While in other
st organisation,
be superiors
acc establish goals
om forsubordinates.
pli The goals
she typicallyreferto
d the desired
rat outcome to be
her achieved.
tha Thereafter these
n goals can be
on usedtoevaluate
employee
ho
performance.
w
it 2. Setting the
Pe y arranged time
rfo period. As
rm subordinates
an perform, they
ce knowfairlywell
what there is to
St
do, what has
an
been done, and
da
what remains to
rd: bedone.
Th 3. Comparison
e
ofActualGoals
sec
with the
on
StandardGoals
d
ste : In the third
p step the actual
inv level goal
olv attainment is
es compared with
set the standard
tin goals. The
g evaluator
the explores reasons
per ofthegoalsthat
for were not met
ma andforthegoals
nc that were
e exceeded. This
sta step helps to
nd determine
ard possibletraining
for needs.
the 4. Establishing
su New Goals,
bor NewStrategies:
din The final step
ate involves
s establishingnew
in goals and,
a possibly, new
pre strategies for
vio goals not
usl previously
att ch the
ain establishedgoals
ed. may be allowed
At to participate
thi more in the
s goalsetting
poi process next
nt, time.
su Advantages of
bor MBO:
din 1. Balanced
ate Focus on
an Objectives:
d MBO forcesthe
su management to
per set objectives
ior with balanced
inv stress on key
olv result area.
em Thus, crisis
ent conditions are
in avoided to take
go place in the
al organisation.
set 2. Better
tin
Managing
g
Things: MBO
ma
forces managers
y
to think about
ch
planning for
an
results, rather
ge.
than merely
Su
bor planning
din activates or
ate work. Managers
s are required to
wh ensure that the
o targets are
suc realistic and
ces needed
sfu resources are
lly made available
rea to subordinates
to Managers are
ac required to
hie clarify
ve organisational
the roles and
tar structures hence
get better
s. organising.
3. B 4. MBO
ett Reduces Role
er Conflict and
Or Ambiguity :
ga Role conflict
nis exists when a
ing person is faced
: with conflicting
Th demands from
e two or more
po supervisors; and
siti role ambiguity
on exits when a
s person is
in uncertain as to
the how he will be
ent evaluated, or
erp what he has to
ris achieve. Since
e MBO aims at
ca providing clear
n targets andtheir
be orderorpriority,
bui it reduces both
lt thesesituations.
aro 5. It Provide
un more Objective
d Appraisal
the Criteria : The
ke targets emerge
y from the MBO
res process provide
ult a sound set of
are criteria for
as. evaluating the
ma erallgoalsto the
na individuals
ger goals : and help
s to increase an
per employees
for understanding or
ma where the
nc organisation
e. isandwhereitis
6. Mheading.
or 7. Managers
e Complete with
M Themselves :
oti Managers are
vat more likely to
ion complete with
themselves than
:
with other
M
managers. The
B
kind of
O
evaluation can
hel
reduce internal
ps
conflicts that
an
oftenarisewhen
d
managers
inc
compete with
rea
each other to
ses
obtain scarce
em
resources.
plo
8. Develop
ye
Personal
e
Leadership :
mo
MBO helps the
tiv
individual
ati
manager to
on
developpersonal
be
leadership,
ca
especially the
use
skills of
it
listening,
rel
planning,
ate
controlling,
s
motivating,
ov
counsellingand
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
5
2
evaluating.Thisapproachtomanaginginstillsapersonalcommitmenttorespondpositivelytothe
organisations major concerns as well as to the development of human resources.
9. MBOIdentifiesProblemEarly: Itidentifiesproblemsbetterandearly.Frequentperformance
reviewsessionsmakesthispossible.
10. IdentifiesPerformanceDeficiency:MBOidentifiesperformancedeficienciesandenablesthe
managementandtheemployeetosetindividualisedselfimprovementgoalsandthusproveseffective
intraininganddevelopmentofpeople.
DisadvantagesofMBO:
1. UnfavourableAttitudeofManagers:Someexecutiveshaveanattitudethattheregularattention
requiredofthembyManagementbyobjectivessystem,drawnheavilyontheirbusytimeschedule
and is notconsistent withtheir roles.They feel that itis not soeffective awayas someother
approaches.
2. DifficulttoApplyMBOConcepts:Thoseexecutiveswhohavebeeninvolvedveryoftenfindit
difficulttoapplyMBOconceptstotheirownworkhabits.Theyfindithardtothinkabouttheresults
ofworkratherthantheworkitself.
3. HeavyPaperWork:MBOinvolvesahugeamountofnewsletter,instructionbooklets,training
manuals, questionnaires, performance data review and appraisals report to be prepared by the
superiorandsubordinates.ThusMBOissaidtohavecreatedonemorepapermillinorganisation
addedtothealreadyexistinglargeamountofpaperwork.
4. TugofWar:Thereissometimestugofwarinwhichthesubordinatestrytosetthelowesttargets
possibleandthesupervisorsthehighest.
5. TimeConsuming:MBOistimeconsumingespeciallyintheearlyphasesofitsintroductionwhen
employeesareunfamiliarwithitsprocess.
2. AssessmentCentres:
ItisamethodwhichwasfirstimplementedinGermanArmyin1930.Withthepassageoftime
industrial houses and business started using this method. This is a system of assessment where
individual employee is assessed by many experts by using different technique of performance
appraisal.Thetechniqueswhichmaybeusedareroleplaying,casestudies,simulationexercises,
transactionalanalysisetc.
Inthismethodemployeesfromdifferentdepartmentsarebroughttogetherforanassignmentwhich
theyaresupposedtoperforminagroup,asiftheyareworkingforahigherpostorpromoted.Each
employeeisrankedbytheobserveronthebasisofmerit.Thebasicpurposebehindassessmentisto
recognize whether a particular employee can be promoted, or is there any need for training or
development.This
methodhascertainadvantagessuchasithelpstheobserverinmakingcorrectdecisionintermsof
whichemployeehasthecapabilityofgettingpromoted,butithascertaindisadvantagesalsoitis
costlyandtimeconsuming,discouragesthepoorperformersetc.
3.360DegreePerformanceAppraisals:
This method is also known as multirater feedback, it is the appraisal in a wider perspective where
thecommentabouttheemployees performance comes from all the possible sources that are directly
orindirectlyrelatedwiththeemployeeonhisjob.In360degreeperformanceappraisalanemployee
canbeappraisedbyhispeers,managers(i.e.superior),subordinates,teammembers,customers,
suppliers/vendorsanyonewhocomesintodirectorindirectcontactwiththeemployeeandcan
provide necessary information or feedback regarding performance of the employee the onthejob.
Thefourmajorcomponentof360degreeperformanceappraisalare:
1. EmployeesSelfAppraisal
2. AppraisalbySuperior
3. AppraisalbySubordinate
4. PeerAppraisal.
Employeeselfappraisalgivesanoptiontotheemployeetoknowhisownstrengthsand
weaknesses,his achievements,and judge his own performance. Appraisal bysuperior forms the
traditional part of the 360 degree performance appraisal where the employees responsibilities and
actualperformanceisjudgedby
the superior. Appraisal by subordinate gives a chance to evaluate the employee on the basis of
communication and motivating abilities, superiors ability to delegate the work, leadership qualities
etc. It is also known as internal customers; the correct opinion given by peers can aid to find
employees who are cooperative,employeeswhoreadytoworkinateamandunderstandingtowards
others.
4.CostAccountingMethod:
In this method performance of an employee is evaluated on the basis of monetary returns the
employeegivestohisorherorganization.Arelationshipisrecognizedbetweenthecostincludedin
keepingtheemployeeinanorganizationandthebenefittheorganizationgetsfromhimorher.The
evaluationisbasedontheestablishedrelationshipbetweenthecostandthebenefit.Thefollowing
factorsareconsideredwhileevaluatingan employees performance:
1. Interpersonalrelationshipwithothers.
2. Qualityofproductproducedorservicegiventotheorganization.
3. Wastage,damage,accidentscausedbytheemployee.
4. Averagevalueofproductionorservicebyanemployee.
5. Overheadcostincurred.
5. BehaviorallyAnchoredRatingScales(BARS):
Thismethodisacombinationoftraditionalratingscalesandcriticalincidentsmethods.Itconsistsof
preset critical areas of job performance or sets of behavioural statements which describes the
important job performance qualities as good or bad (for e.g. the qualities like inter personal
relationships,flexibilityandconsistency,jobknowledgeetc).Thesestatementsaredevelopedfrom
criticalincidents.Thesebehavioralexamplesarethenagaintranslatedintoappropriateperformance
dimensions.Thosethatareselectedintothedimensionareretained.Thefinalgroupsofbehavior
incidentsarethenscalednumericallytoalevelofperformancethatisperceivedtorepresent.Arater
must indicate which behavior on each scale best describes an employees performance. The results of
theaboveprocessesarebehaviouraldescriptions,suchasanticipate,plan,executes,solvesimmediate
problems, carries out orders, and handles urgent situation situations. This method has following
advantages:a)Itreducesratingerrors)Behaviorisassessedovertraits.c)Itgivesanideaaboutthe
behaviortotheemployeeandtherateraboutwhichbehaviorsbringgoodPerformanceandwhich
bringbadperformance.54

School of Distance
Education
imeConsuming
: Performance
appraisal is a
time taking
Li affair. It is a
mi very lengthy
tat process under
ion
which different
s
forms are to be
of
filled in and
Pe
rfo various
rm observations are
an required to be
ce noted in a
Ap carefulmanner.
pr 2. Lack of
ais Reliability :
al Reliability
Th implies stability
e and consistency
ma in the
in measurement.
lim Lack of
itat
ion consistencyover
s timeandamong
of different raters
Per may reduce the
for reliability of
ma performance
nc
appraisal.
e
Ap 3. Incompetenc
pra e : Raters may
isa fail to evaluate
l performance
are
accuratelydueto
ex
pla lack of
ine knowledge and
d experience. Post
bel appraisal
ow interview is
:
often handled
1. Tineffectively.
4. Nmakestherating
o unscientific.
Un Similarly, the
ifo ratingisdoneon
rm the basis of an
overall
St
impression,
an
which is not
da
proper.
rd 5. Absence of
s : Effective
Th
Participationof
e
Employees : In
sta
performance
nd
appraisal
ard
effective
s
participation of
use
concerned
d
employee is
for
essential. In
ap
many methods
pra
ofappraisalheis
isa
given a passive
l
role. He is
pur
evaluatedbuthis
po
participation or
se
selfevaluationis
are
ratherabsent.
not
6. Resistance
uni
for ofEmployeesto
m Appraisal :
wit Employees
hin oppose the
the system as they
sa feel that the
me system is only
org for showing
ani theirdefectsand
sat for punishing
ion them. The
. managers resist
Th the system as
is they are not
wil aperwork :
lin Some
g supervisors feel
to thatperformance
crit appraisal is
ici paperwork.
se Theymakesuch
the complaints
ir because many a
su times,
bor performance
din appraisalreports
ate are found only
s inthefilesrather
or than rendering
ha any practical
ve use.
no 8. Fear of
ca Spoiling
pa Relations :
cit
Performance
y
appraisals may
to
also affect
gui
superior
de
subordinate
the
relations. As
m
appraisal makes
for
the superior
sel
moreofajudge
f
rather than a
im
coach, the
pro
subordinatemay
ve
look upon the
me
superior with a
nt
feeling of a
or
suspicion and
sel
mistrust.
f
9. Stereotyping
de
: This implies
vel
forming a
op
mental picture
me
of a person on
nt.
the basis of his
7. P
ag Approach :
e, Performance
sex appraisal loses
, mostofitsvalue
cas when the focus
te of management
or is on
reli punishment
gio rather than on
n. development of
It employees. 11.
res Multiple
ult Objectives :
s Raters may get
in confused due to
an two many
ov objectives or
er unclear
si objective of
mp performance
lifi appraisal.
ed 12. Resistance:
vie
Trade unions
w
may resist
an
performance
d
appraisal on the
blu
ground that it
rs
involves
the
discrimination
ass
among its
ess
members.
me
Negative ratings
nt
may affect
of
interpersonal
job
relations and
per
industrial
for
relations
ma
particularly
nc
when
e.
employees/unio
10.
ns do not have
Ne faith in the
gat system of
ive
per ce of a
for haloeffect
ma which leads to a
nc tendency to rate
e the same
ap individual first,
pra whichoncehave
isa
stoodfirst.
l.
13. 14. Individual
Differences:
Ha
Somepeopleare
lo
more distinct
Ef
while some are
fec very liberal in
t: assigning the
Ge factors,pointsor
ne number to the
ral employees.
ly, Theyareunable
the to maintain a
re fair distinction
is between two
the individuals. It
pr alsonullifiesthe
es utility of this
en system.
55
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
15. Unconfirmed: Sometimes the results of performance appraisals are not confirmed by other
techniquesofmotivation,incentivewagesplansandsoon.Factorsareintroducedinthemanagerial
appraisalbecauseofafactorbiasinthepersonconcernedconductingtheappraisal.
CareerPlanning
CareerPlanningisthesystematicprocessbywhichoneselectscareergoalsandthepathto
these goals. From the organizations viewpoint, it means helping the employees to plan their career in
terms of their capacities within the context of organizations needs. It involves designing an
organizational system of career movement and growth opportunities for employees from the
employment stage to the retirement stage. Individuals who can fill planned future positions are
identifiedandpreparedtotakeupthesepositions.Careerplanningistheprocessofmatchingcareer
goalsandindividualcapabilitieswithopportunitiesfortheirfulfilment.
ObjectivesofCareerPlanning
CareerPlanningseekstoachievethefollowingaims:
1. Toattractandretaintherighttypeofpersonsintheorganization.
2. To map out careers of employees suitable to their ability, and their willingness to be
trainedanddevelopedforhigherpositions.
3. Toensurebetteruseofhumanresourcesthroughmoresatisfiedandproductiveemployees.
4. Tohaveamorestableworkforcebyreducinglabourturnoverandabsenteeism.
5. Toimproveemployeemoraleandmotivationbymatchingskillstojobrequirementsand
byprovidingopportunitiesforpromotion.
6. Toprovideguidanceandencourageemployeestofulfiltheirpotentials.
7. Toachievehigherproductivityandorganizationaldevelopment.
CareerDevelopmentProcess
Careerdevelopmentandthecareerplanningprocessincludeanumberofspecificstepsthat
helptoidentifypersonalskillsandattributes.Followingaretheimportantstepsintheprocessof
careerdevelopment:
Step1:SelfAssessment
Evaluatingwhoyouareasaperson.Thisinvolvestakingapersonalinventoryofwhoyouare
andidentifyingyourindividualvalues,interests,skills,andpersonalqualities.Whatmakesyoutick
asaperson?Youwilllookatthosepersonalattributesunderamicroscopeandcomeupwithkey
qualitiesyoucanidentifyanduseinyoursearchfortheperfectcareer.Careerassessmentsmaybe
requiredtopromoteabetterunderstandingofpersonalattributes andskills.ContactyourCareer
ServicesOfficeatyourcollegetodiscussifacareerassessmentmayberightforyou.
Step2:Research(CareerExploration)
Obtain an insiders perspective about the career field you are considering. Conduct
InformationalInterviewsinperson,phone,orbyemail.Professionalsenjoysharingtheirexpertise
withpeopleinterestedinthefield.Performinformationalinterviewswithalumnifromyourcollegeto
gaintheirperspectiveofthefieldandtolistentowhattheyhavetosay.Thisstrategyprovides
Human Resource
Management
firsthandknowledgefromsomeonecurrentlyworkinginthefieldandgivesyouanopportunitytoask
abouttheirexperiencesaswellaspotentialjobsandwhatonemightexpectifjustenteringthefield.
5
6
Gainexperiencethroughinternshipsorbyjobshadowingforonetoseveraldaystoseewhatatypical
work day entails and to gain perspective of what the environment is like and the typical job
responsibilitiesofsomeoneworkinginthefield.Researchwhattypesofjobsareavailableinyour
areaofinterestbycheckingoutMajorstoCareerConverter,TheOccupationalOutlookHandbook
and The Career Guide to Industries. The Occupational Outlook Handbook offers a wealth of
informationforthosecurrentlyjustenteringthejobmarketandforthoseanticipatingmakingacareer
change.
Step3:DecisionMaking
Once youve made a thorough selfassessmentandhavedonesomeresearchofcareeroptions,
its time to make a decision. This can be difficult since there may still be many unknowns and a fear
ofmakingthewrongchoice.Onethingforsureisthatalthoughwecandoallthenecessarystepsto
makinganinformeddecision,thereisnoabsolutecertaintythatweareunquestioninglymakingthe
rightdecision.Thisuncertaintyiseasierforsomepeoplethanothersbutakeypointtorememberis
thatyoucanalwayslearnfromanyjobyouhaveandtakethoseskillsandapplythematyournext
job.
Step4:Search(TakingAction)
Its now time to look for prospective jobs and/or employers, send out cover letters and
resumes,andbeginnetworkingwithpeopleinthefield.Keepinmindthatcoverlettersandresumes
aredesignedtomakeafavourableimpressiononemployers(ifdoneproperly)andtheinterview
processiswhatwillultimatelylandyouthejob.Inotherwords,makesureyourcoverletterand
resume highlight your skills and strengths based on the employers needs and that you are fully
prepared to knock their socks off at the interview. Take time to research the employers website prior
totheinterview,andbepreparedtoaskthoughtfulquestionsbasedonyourresearch.
Step5:Acceptance
You have completed all of the steps above and youve been accepted into a new and exciting
ordifferentjob.AccordingtotheBureauofLabourStatistics,64.1%ofpeoplechangejobsbetween
5and14timesintheirlifetime.Consequently,learningtheskillsabovewillincreaseyourchancesof
gainingmeaningfulandsatisfactoryworkaswellashelpyoutoavoidmanyofthestressesthatoccur
withchangingjobs.Byrecognizingthatchangeisgood(evenadvantageous),changingjobscanbe
viewedasapositiveexperienceandneednotbeasanxietyprovokingasitmayinitiallyseem.You
willcontinuetheprocessofselfassessment,research,decisionmaking,andjobsearchinginorderto
makeeffectiveandfulfillingcareerchangesthroughoutyourlifetime.Itisaknownfactthatmost
professionals leave an organization due to lack of career growth. Active career development
initiativesbyacompanyareakeyretentiontooltokeepthebesttalentwithinitsfold.Itisoneofthe
greatest motivators to keep an employee happy and engaged. But does career planning and
developmentofemployeesactuallymakeadifferencetotheproductivityofaworker?Most
organizationsthinkso,andconsideritapartoftheircriticalhumanresourcestrategy.Fromthe
employees point of view career development initiatives gives them a clear focus about their career
track,theblindspotsthattheyhavetoovercomeandthefinalgoaltobereached.Thisfocused
approachworkstotheiradvantagefromtheireverydayworktolongtermaspirations.Theimpactof
careerdevelopment/successionplanningprogrammescanbeseenthroughtheproductivityindicator,
engagementsurveysandreductioninattritionrate.Itisinfactawinwinsituationforall.
MODULE:V
COMPENSATIONMANAGEMENTANDGRIEVANCEREDRESSEL
Employees compensation is one of the major determinants of employee satisfaction in an

organization.Thecompensationpolicyandtherewardsystemofanorganizationareviewedbythe
employee as a indicators of the managements attitude and concern for them. Hence, it very important
forthemanagementtodesignandimplementitscompensationsystemwithutmostcareandtact.A
goodwageandsalaryadministrationshouldbeabletoattractandretainemployees,givethemfair
deal,keeptheorganizationcompetitiveandmotivateemployeestoperformtheirbest.
MeaningofCompensation
In laymans language the word compensation means something,suchasmoney,givenor
receivedaspaymentforservice.Thewordcompensationmaybedefinedasmoneyreceivedinthe
performanceofwork,plusthemanykindsofbenefitsandservicesthatorganizationprovidestheir
employee.Itreferstowiderangeoffinancialandnonfinancialrewardstoemployeefortheirservice
rendered to the organization. It is paid in the form of wages, salaries , special allowance and
employeebenefitssuchaspaidvacation,insurance,maternityleaves,freetravelfacility,retirement
benefitsetc.
According to Wendell French, Compensationisacomprehensivetermwhichincludes wages,
salaries and all other allowance and benefits.
Wagesaretheremunerationpaidforskilled,semiskilledandunskilledoperativeworkforce.
Salaryistheremunerationofthoseemployeeswhoprovidesmentallabourtotheemployersuchas
supervisor,officestaff,executiveetcwagesarepaidondailyorhourlybasiswhereassalaryispaid
onmonthlybasis.
ObjectivesofCompensationPlanning
The basic purpose or objective of establishing sound compensation is to establish and

maintainanequitablerewardssystem.Theotheraimistheestablishmentandmaintenanceofan
equitablecompensationstructurei.eanoptimalbalancingofconflictingpersonnelinterestsothatthe
satisfactionofemployeesandemployersismaximisedandconflictsminimized,thecompensation
managementisconcernedwiththefinancialaspectofemployeesneed,motivationandrewards.
Asoundcompensationstructuretriestoachievetheseobjectives:
Toattractmanpowerinacompetitivemarket.
Tocontrolwagesandsalariesandlabourcostsbydeterminingratechangeand
frequencyofincrement.
Tomaintainsatisfactionofemployeesbyexhibitingthatremunerationisfair
adequateandequitable.
Toinduceandimprovedperformance,moneyisaneffectivemotivator. 58
School of Distance
Education
re compensation
than low skilled
jobs. This
a) eliminates
To inequalities.
E
m 2. The chances
plo offavouritism
are
ye
minimised.
es:
3. Jobs
1. E sequenceand
mp lines of
loy promotion
ees are
are established
wherever
pai
they are
d applicable.
acc
ord4. Employees
moral and
ing motivation
to are increased
req because of
uir the sound
compensation
em
structure.
ent
of b)To
the Employers:
ir 1.They can
job systematically
s plan for and
i.e control the
hig turnoverinthe
organization.
hly
ski 2. A sound
lle compensation
d structurereduces
job thelikelihoodof
s friction and
are grievance over
pai remunerations.
d
3. It enhance
mo
an employee
mo ttracts
ral qualified
e employeesby
ensuring and
an
adequate
d payment for
mo allthejobs.
tiv
5. In dealing
ati
with a trade
on
union, they can
be
explainthebasis
ca
of their wages
use
programme
ad
because it is
eq
based upon a
uat
systematic
e
analysis of jobs
an
andwagesfacts.
d
fai Principlesof
rly Wagesand
ad Salary
mi Administration
nis Sincethe
trat issue of wage
ive and salary
inc determination
ent has always
ive
enjoying the
s
major
are
considerationfor
bas
any
is
organization, it
to
should be
his
develop and
wa
maintain based
nts
on sound
an
principles,some
d
of them are
ne
narrated below,
ed.
attempt should
4. Ibe made to
tincorporatethem

aasfaraspossible
wh y for jobs are
ile based upon
des variationsinjob
ign requirements,
ing means
the maintaining
co equity in the
mp distribution of
ens wages and
ati salaries in the
on organization.
sys 2) Maintaining
te competitiveness
m. in the wage
1) Tmarket means
her thegenerallevel
e of wage and
sh salaryshouldbe
oul reasonably in
d line with that
be prevailinginthe
a market.
def 3) Matching
init employees
e expectations
and it should
pla
avoid
n unjustified
an discriminatio
d n by
sys providing
te equalpayfor
equalwork.
m
to 4) Reinforcing
ens positive
ure employee
tha behavior and
t contribution to
dif theorganization,
fer differences in
en the
ces compensation
in package should
pa be based on
co .
ntr
5) Devising a
ibu
system that is
tio
the most
n,
efficient for the
pro
organization, as
du
faraspossibleit
cti must eliminate
vit any
y, discrepancies or
job exploitation of
per theemployees.
for
ma 6) The
compensation
nc
system should
e, formulate and
ac define rules and
hie regulations for
ve determining,
changing,
me
adjusting wages
nt in the
etc organization.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
5
9
7) Thecompensationpackagemustensurefairness,shouldmaintainharmoniousrelationshipbetween
theemployeeandemployer.
8) Compensationsystemshouldbeflexibleenoughsothatfuturechangescanbeincorporated.
9) Thewageandsalaryadministrationshouldtakecareofandcomplyalltherulesandregulations
laiddownbythelegislatorforprotectingtheemployees interest.
10) Optimizationofmanagementandemployeeinterests.
EssentialsofSoundWageandSalaryAdministration
SoundWageandsalaryadministrationdemandssomeessentialstosatisfy,sothatonewhois
shoulderwiththeresponsibilityofdesigningadministrativeaspectswiththisregards,maycomeout
withefficientsystemformanagingtheissuesrelatedwithit.Someoftheprerequisitesforthesound
compensationsystemare:
I.RationalJobAnalysis:Itisanimportantexercisewithregardstoeachcategoryofjobs.Itreveals
detailedaspectsofthejob,likeduties,responsibilitiesassociatedwiththeperformance,performance
standards as a fair parameter for evaluation of the performance. It gives fair idea about job
specificationi.e.qualification,experience,skillandotheressentialrequirementsthatjobperformer
mustsatisfy.Thusrationaljobanalysisalwaysputpolicydeciderinabetterconditiontolaydown
appropriatecontentinpolicydesign.
II.ProperJobEvaluation:Jobevaluationisasystematicprocessofanalyzingandevaluatingjobs
todeterminetherelativeworthofjobinanorganization.Itformsthebasisfordesigningthesound
compensationsysteminanorganization.Sincewageandsalaryadministrationandtheperceived
fairnessofapproachadoptedunderithaveaimmenseinfluenceonemployeemorale,motivationand
satisfaction,properjobevaluationexercisedemandssensibleconsideration.
III.InDepthKnowledgeAboutanOrganizationandMarketFactors:Apartfromjobevaluation,
thevariousotherfactorsthatdeterminetheadministrativeaspectsforwageandsalaryadministration
arethesizeandstructureoftheorganizationandtheindustryinwhichitoperates,thestrengthof
employeesunion,positionofapersonandhisimportancetotheorganization,demandandsupplyfor
particular skill sets in the industry, organizational ability and capacity to pay and its economic
conditionlikeprofitability,andlegislativeaspectsrelatedwithwagedetermination.Soundsystemfor
compensationmanagementdemandsdetailknowledgeaboutallthesefactorsinordertoitssound
frameworkandoperationintheorganization.
IV.ClarityofObjectivesorPurposesofWageandSalaryAdministration:Lastbutnottheleast
intermsofitssignificance,inordertohaveeffectiveandefficientadministrationofcompensationas
anareaintheorganization,onemusthaveaccurateclarityaboutthepurposesthatitmaytriesto
satisfy through policy decisions .objectives may be attracting talented resources; retaining and
motivatingemployees;financialmanagementofanorganization;satisfyinglegalrequirement;and
manymore.Sometimestheseobjectivesareconflictinginnaturealso.Soitisveryessentialthatone,
who is going to carry out this responsibility of designing the compensation system in the
organization,shouldhavereasonableclarityforobjectivestobesatisfiedwiththedesign.60

FactorsaffectingWageandSalaryAdministration
The term employees remuneration includes bothwagesandsalaries.Wagesarecommonly
consideredasthepriceoflabourpaidtotheworkersfortheservicesrenderedtotheorganization
employingthem.Wherequantumofservicesrenderedisdifficulttomeasurethepaymentiscalled
salary. Normally, payment made to workers is referred to as wages, and remuneration paid
periodicallytopersonswhoseoutputcannotbemeasuredsuchasclerical,supervisoryandmanagerial
staff,iscalledsalary.Wageandsalaryadministrationisaffectedbysomanyfactorsandmostof
themareuncontrollableinnature.
Majorfactorsaffectingwageandsalaryadministrationarediscussedasunder:
1) Demand and Supply: Demand for and supply of labor and its availability will have great
influenceonthedeterminationofwagerates.Ifthereisashortageoflabor,thewagesdemandedwill
behigh.If,ontheotherhandlaborisplentiful,workerswillbetoowillingtoworkatlowratesof
wages.However,wagescannotberegardedtodaymerelyapriceforservicesrendered.Inrecent
yearstherefore,bothmanagementandlaborhasbeenbecominglessandlessdependentonthisfactor
asabasicfactor.Anemployeewillnothesitatetoacceptlowerwagesifhehasopportunities
forgrowthintheorganization.Today,themoneywhichispaidascompensationshouldenablea
workertobuygoodsandserviceswhichwillenablehimandhisfamilytoliveabetterandfullerlife
andsatisfyhishierarchicalneeds.
2) Organizations Ability to Pay:Thisisamajoraffectingfactorindeterminingwageandsalary
structureofanorganization.Financialpositionandsoundnessofanorganizationcanputitina
position to offer attractive compensation package. Some of the reputed economically sound
organizations are offering good compensation package and thereby successful in obtaining and
maintainingtalentedworkforce.Goodcompensationpackagehelpsinattractingandretainingquality
talentinanorganization.Generallywagesinmostoftheorganizationdecidethroughcollective
bargaining and , organizations ability and capacity to pay attractive wages depends upon over all
financialsoundnessandeconomicconditionofanorganization.
3) Prevailing Market Rate or Going Wage Rate:Thisispracticallythemajorfactorthatinduces
anyorganizationtotakeitasabasewhiledeterminingwageandsalarystructureforit.Prevailing
market rate is also known as most comparable rate of wage, and most popular method for wage rate
determination,especiallyforlowercadrepositions.Therearemanyreasonsforanorganizationtopay
wages at a market rate like competition and a practice of Brain Drain prevails in the market. Further
more certain laws framed laid down principal of minimum wages, equal wage for equal work. In
additiontothistradeunionsarealsoprefertobargainuponandinaccordancewithmarketrateof
wages.
4)Productivity: Productivityismeasuredintermsofoutputpermanhour.Itaresultofseveral
factors such as technology, labour efforts, method of doingwork, management contribution and
Human Resource
Management
supportandsoon.However,productivityhasalwaysremainedasbaseforwagedifferencessinceita
basewhichisapparentlyjustifiableandacceptabletoallintheorganization.Manyatimethisasbase
6
1
School of Distance
Education
cretionof
management
policies.
is 5) Cost of
not
acc Living: It is
ept always expected
abl thattherehasto
e beadjustmentin
to
pay rates in
ma
ny accordance with
tra prevailing cost
de of living. The
uni changes in the
on
cost of leaving
s
as affect
it purchasing
is power of the
ver person. Trade
y union also
dif
considersthisas
fic
ult a base for
to collective
ha bargaining on
ve wageissues.
acc
ura 6) Trade
te Unions
me Bargaining
asu Power:
re Generally the
me mechanism
nt for fixing of
an wages for
d majorityof
is workers is
has collective
al bargaining or
wa negotiation, and
ys
re collective
ma bargaining and
in negotiations
at depends upon
a the trade unions
dis
str aperiodoftime
en and vice versa.
gth Thestrengthand
. If power of the
the trade union
re dependsuponits
is membership,
a financial
str strength and
on leadership it
g mayhave,forits
uni functioning.
on
op 7) Job
era Requirements:
tes From the
in organizational
the perspective
org appropriate job
ani analysis andjob
zat evaluation
ion exercise is a
, it base for the
ma wage
y
determination
dic
and revision. It
tat
is quite obvious
e
also that wages
its
tobepaidtothe
ter
workers should
ms
beinaccordance
on
with the duties,
wa
ge responsibilities
fix and the efforts
ati likely to be put
on for job
an performance.
d Wage or
rev compensation
isi package very in
on accordance with
ov job description
er and job
spe organization
cifi does influence
cat in wage
ion determination
. and revision at
an appropriate
8) M
time. Some
an
reputed and
ag
professional
em
organization
ent does prefer to
At pay wage in
tit accordance with
ud their reputation
e: orprestigeofan
Att organization in
itu themarket.They
de may give
of participation to
em workers in
plo sharing profits.
yer On the other
or hand
ma conservative
na organizations do
ge not prefer to go
me for such profit
nt sharing.
to 9) Psychologica
we
l and Social
rs
Factors:
the
Psychologically
wo
person perceive
rki
wages and
ng
compensation
co
package as sole
m
parameter for
mu
success or
nit
failure in the
y
life.
of
Compensation
the
pa ement in the
ck work. Therefore
ag such variable
e should not be
pla overlooked by
ys the organization
sig while
nif determining
ica wageandsalary
nt structure.
rol
Socially and
e
ethically also
in
peoplefeels that
the
equal work
em
should carry
plo
equal pay i.e.
ye
wage should be
es
in accordance
pri
with efforts and
de,
workers should
mo
not be felt like
ral,
being
mo
cheated.
tiv
Compensation
ati
policy should
on not make any
an discrimination
d on the basis of
ps caste,color,Sex
yc or region, and
hol must try to
ogi satisfycondition
cal for fairness
en equity and
ga justice.
ge
10) Legislative
me
Considerations:
nt
Legislative
an
provisions do
d
provide
inv
protectiontothe
olv
working
co power of the
m workerswasnot
mu strongenoughto
nit ensure fair
y wages.
by Consequently,
fix the state
ing legislativeframe
bot work stepped in
to to regulate
m wages and
lin provide for
e certain benefits
for to the workers.
wa Legislation like
ge Minimum
pa Wages Act,
ym 1936, provides
ent for statutory
s. minimumwages
Ma tobeprevailsin
ny the industrial
a organization so
tim thatworkerscan
eit satisfytheirbare
wa requirements
s and maintain
fou their minimum
nd living standard.
tha These aspects
t are also
the consideredwhile
bar deciding
gai compensation
nin policy for an
g organization.
ource
H Manage
u ment
m
a 62
n
R
e
s
School of Distance
Education
e wage system;
and (2) Piece
rate wage
M system. The
eth
wage paid to
od
labor has to
s
of perform
W important
ag functions in the
e economic
Pa
system.Itshould
ym
ent be such as to
s maketheworker
capable and
asi willing to be
cal efficient and
ly involved in the
the job. There
re should be link,
are wherever
tw feasiblebetween
o emoluments and
me productivity;and
tho fair parity
ds between wage
for differentials and
wa skill differential.
ge The plan should
pa act as an
ym incentive to
ent improve the
s, efficiency,andit
viz should attract
. the worker
(1) wherever
Ti demanded or
me needed.
rat Whatever may
bethemethodof
wa l
ge e
pa
a
ym
n
ent d
but
the u
wa n
d
ge
e
pla
r
n s
sh t
oul a
d n
d
co
a
nta b
in l
fol e
lo
I
wi
t
ng

ing s
red h
ien o
ts: u
l
I
d
t

b
s
e
h

o
c
u
a
l
p
d
a

b
b
l
e
e

s
o
i
f
m

p
e
a t
s t
y r
a
c c
o t
m i
p v
u e
t
a e
t n
i o
o u
n g
h
It
sh f
oul o
d r
be
ca
n
pa
e
ble
of w
mo
tiv t
ati a
ng l
the e
em
n
plo
ye t
es
i
I
n
t

t
s
h
h
e
o

u
o
l
r
d
g

a
b
n
e
i

z
a
a
t
i t
o h
n e
.
e
I m
t p
l
s o
h y
o e
u e
l s
d .

bThefundamental
eplansofwage
paymentare:
f I. Time Rate
a
i Wage System:
r It is the oldest
, andthesimplest
form of wage
j
fixing. Under
u
sthis system,
t workersarepaid
according to the
a
work done
n
d
during a certain
periodoftimeat
sa rate of per
t hour, per day,
a
per week, per
b
l fortnight, or per
emonth or any
other fixed
t period of time.
o
Accordingtothe
asection4 of the
l Payments of
l Wages
Ac as the basis of
t,1 worker
93 remuneration
6, withouttakingin
not to account the
mo units produced.
re The worker is
tha guaranteed a
n specifiedsumof
on money for a
e fixed period of
mo his time taking
nth no account of
mu the quality or
st quantity of the
ela workdone.
pse Merits:
bet It is simple
we and
en understandable
and easy for
tw
calculation of
o wages, since
wa wagesunderthis
ge system is equal
per towage per
hour* numbers
iod
ofhoursworked
. byanemployee.
Ti
There is no
me time limit for
wa completion of
ge job, workman
sys are not in hurry
te to finish it and
this may mean
m
that they may
ad
pay p enough
opt attention to the
s quality of work,
tim effective
e handling of
ma ms of equal
chi wage payment,
ner sogrievances,ill
y will; jealousy
an can be avoided
d amongthem.
util Time rate
iza system provides
tio regular and
n stableincometo
of workers,sothey
res can adjust and
our manage their
ces budget
accordingly.
in
an It requires
opt less
im administrative
um attention as this
ma system provide
good faith and
nn
mutual
er.
understanding
Aand trust
ll between
wo employer and
rke employee.
rs
are Demerits:
giv Itdoesnottake
en intoaccountthe
sa abilityand
me capacityofthe
tre workerssothe
at skilfulandmore
me capableworkers
nt whohavehigher
in production
efficiencywill
ter
demoralize.
ource
H Manage
u ment
m
a 63
n
R
e
s
School of Distance
Education
or charges for a
particularjobdo
not remain
Tconstant. This
im put the
e managementina
rat difficultposition
e in the matter of
sys quotingratesfor
te a particular
m pieceofwork.
is
There is a
unr
possibility of
ela
systematic
ted
evasion of work
to
by the workers,
the
sincethereisno
pro
specifictargetor
du
demand for
cti
specific quantity
vit
of work by the
y
management.
an
d Time rate
do system does not
es ask for
not maintaining
pro individual
vid workers record,
e it becomes
ext difficult for the
ra employer to
mo
determine his
tiv
relative
ati
efficiency for
on
the purpose of
for
performance
ext
ra evaluation for
eff futurepromotion
ort orrewards.Thus
s it does injustice
by to the
the outstanding
wo employees.
rke
Suitability:
rs.
Time rate
T
he system is
lab suitable when
the by cultivating
out mutualtrustand
put confidence and
co by giving fair
ntr and equal
ibu treatment to all
ted the employees,
by managementcan
the get the work
wo done in an
rke appropriate
rismanner.
dif
II.PieceRate
fic WageSystem:
ult
to Under this
me system, workers
asu are paid
re according to the
an amount of work
d doneornumbers
ca of units
nn produced or
ot completed, the
be rateofeachunit
rec being settled in
ord advance,
ed irrespective of
in thetimetakento
an do the work.
ind This does not
ivi mean that the
du workerscantake
al any time to
bas complete a job
is. because of his
It performance far
is exceedsthetime
als which his
o employer
sui expects he
tab would take, the
le overhead
wh chargesforeach
en unit of article
will increase.
Th tem is
ere recognition of
is merit, as
an efficient is
rewarded, It is
ind
therefore more
ire equitable then
ct timeratesystem.
im
It pays
pli
workers as per
cat their
ion efficiencies,
tha ability, capacity
t aor performance,
wo soitgivesdirect
stimulus and
rke
motivationtothe
r
employees for
sh extra efforts,
oul which may
d result into more
not productivity.
tak It requires
e less managerial
mo supervision as
re total
tha remuneration
depends upon
n
units produced,
av and not ontime
era spent in an
ge organization.
tim
Being
e.
interested in
M continuityofhis
eri work, a
ts: workman is
likely to take
Tgreater care to
he prevent
ma
breakdown in
in
themachineryor
ad
in the work
va
shop.Itisagain
nta
to the
ge
of management
thi since it reduces
s maintenance
sys expenditure in
an onremainsfixed
org and constant,
ani calculation of
zat costwhilefilling
ion tenders and
. estimates
becomeseasier.
A
s Itresultsinto
the notonlyincrease
dir intheoutputand
ect wages ,but the
lab methods of
or production too
cos are also
t improved, as
per workers demand
uni material and
toftools free from
pro defects and
du machinery in
cti perfectoperating
condition.

Demerits:
Ifratesofwagesarenotscientificallyfixedandacceptabletotheworkers,wouldresultinto
workersexploitationandmayprovecounterproductive.
As workers are interested in completion of the job with a greatest speed, may damage the
machinery,qualityofoutputormayincreaserateofhazardsinanorganization.
Tradeunionsgenerallydonotlikethissystemofwagepayment;theymaynothavefullsupport
andacceptance.Itmaybethemajorissueforindustrialdispute.
Suitability:
Itcanbeintroducedgenerallyinjobsofarepetitivenature,whentaskcanbeeasilymeasured,
inspectedandcounted.Itispracticallysuitableforstandardizedprocesses,anditappealstoskilled
andefficientworkerswhocanincreasetheirearningsbyworkingtotheirbestcapacity.
III.BalanceandDebtSystem:
Thissystemcombinestimerateandpiecerate.Underitaminimumweeklywageisguaranteedfora
full weeks work, with an alternative pieceratedeterminedbytheratefixedontheassumptionthat
theworkerwouldputenoughefforttoearnhisminimumwage.Ifthewagescalculatedonpiece
basesareinexcessofthetimerate,theworkerearnstheexcess.Ifthepieceratewagesarelessthan
thetimerateearnings,hewouldstillgetweeklywage,butontheconditionthatheshallhavetomake
goodtheexcesspaidtohimoutofthesubsequentwagehewouldearn.Supposeaworkerisexpected
tocompleteatleast10piecesduringtheweekinordertoearntheminimumwageofrs.60,thepiece
ratehasbeenfixedatarateofRs.6perunit.Iftheworkerproduces12unitswithintheweek,his
earningwillbeRs.72.Ifontheotherhandheproducesonly9units,hewillstillbepaidRs.60his
minimumweeklywagebutasonthebasisofpieceratehisearningshouldamounttoonlyRs.54,the
sumofRs.6paidinexcesswillbedebitedtohimtobedeductedoutofhissubsequentearnings.
Thus under this system workers wages are determined, by boththenumberofhoursheworksand
thepiecesheproduces.Soitahybridsystemproducingthesamebenefitsandlimitationsofboththe
timerateandpieceraresystem.
VariousModesofCompensation
Variousmodesofcompensationareasfollows:
1) WagesandSalaryWagesrepresenthourlyratesofpayandsalaryreferstomonthlyrateofpay
irrespectiveofthenumberofhoursworked.Theyaresubjecttoannualincrements.Theydifferfrom
employeetoemployeeanddependuponthenatureofjobs,seniorityandmerit.
2) IncentivesThesearealsoknownaspaymentbyresults.Thesearepaidinadditiontowagesand
salaries.Incentivedependsuponproductivity,sales,profitorcostreductionefforts.Incentivescheme
areoftwotypes:
Individualincentiveschemes.
Group incentiveschemes. 65
School of Distance
Education
talization,
accident relief,
healthinsurance,
3) Fcanteen,uniform
rin etc.
ge 4) Non
Be Monetary
nef Benefits They
its
include
Th
challenging job
ese
responsibilities,
are
giv recognition of
en merit, growth
to prospects,
em competent
plo supervision,
ye comfortable
es working
in
condition, job
the
sharingandflexi
for
m time.
of Incentives
be
nef Incentive
its s are monetary
suc benefits paid to
h workmeninlieu
as of their
pro outstanding
vid performance.
ent
Incentives vary
fun
from individual
d,
toindividualand
gra
tuit from period to
y, period for the
me same individual.
dic They are
al universal and
car arepaidinevery
e, sector. It works
ho as motivational
spi
for se the earning
ce thusincreasethe
to standard of
wo living. The
rk advantage of
for incentive
the payment are
ir reduced
per supervision,
for better utilisation
ma of equipment,
nc reduced scrap,
e reduced lost
as time, reduced
inc absenteeism and
ent turnover &
ive increased
for output.
ms Accordin
the
g to Burack &
par
Smith, An
t
incentive
tot
scheme is a plan
al
or programmes
re
to motivate
mu
individual or
ner
group on
ati
performance.An
on.
incentive
Inc
ent programme is
ive most frequently
s built on
wh monitory
en rewards
ad (incentivepayor
de monetary
d bonus),butmay
to also include a
sal variety of non
ary monetary
inc rewards or
rea
pri zational
zes Incentives
. 2. Financial and
Ki NonFinancial
nd Incentives
s 3. Positive and
of Negative
In Incentives
ce
1) Individual
nti
ves and
Organizational
Ince
Incentives
ntiv
es
According to
can
L.G.
be
Magginson,
clas
Individual
sifie
incentives are
d
und
the extra
er
compensation
the
paid to an
foll
individualforall
owi
ng
production over
cate
a specified
gori
magnitude
es:
which
1. I stems from his
n
dexerciseofmore
i than normal
vskill, effort or
i concentration
d
when
u
aaccomplished in
l a predetermined
away involving
nstandard tools,
d
facilities and

Omaterials.
r individua
g
lperformanceis
a
nmeasured to
i calculate
inc union and
ent purport to
ive accomplish
wh broader
ere objectives such
as as an
org organization
ani wide reduction
zat in labour,
ion material and
al supply costs,
or strengthening of
gro employee
up loyalty to
inc company,
ent harmonious
ive managementand
inv decreased
olv turnover and
e absenteeism.
co
I)Individual
op Incentive
era Systemisof
tio twotypes:
n
a)Timebased
am
SystemIt
on includesHalsey
g Plan,Rowan
em Plan,Emerson
plo Planand
BedeauxPlan
ye
es, b)Production
ma basedSystemit
na includes
Taylors
ge Differential
me Piece Rate
nt System,
an Gantts
Task and
d
BonusPlan
an
Resourc 66
He
u Manage
mment
School of Distance
Education
Plan
3) Co
Partnership
II) Plan
Gr
ou 4) ProfitSharing
p Some
In importan
ce tthese
nti plansof
ve incentive
Sy wage
ste payment
m sareas
follows:
is
of Halsey Plan:
fol Under this plan
lo a standard time
wi
is fixed in
ng
advance for
ty
pe completing a
s work. Bonus is
rewarded to the
1) S
worker who
c
aperforms his
l workinlessthan
othe standard
ntime and paid

wagesaccording
P
l tothetimewage
asystem for the
nsavedtime.

Thetotal
2) Pearningsofthe
rworker=wages
i
fortheactual
e
stime+bonus
tRowan Plan:
m
aUnder this
nmethod
minimumwages
sare guaranteed
giv e taken which
en the time saved
to bears to the
wo standard time
rke allowed.
rat
Incentive=
the Wagesforactual
ord timefor
ina completingthe
ry work+Bonus
rat Emerson Plan:
e Under this
for system, wages
the onthetimebasis
tim are guaranteed
e even to those
tak workers whose
en output is below
to the standard.
co The workers
mp who prove
let efficientarepaid
e abonus.Forthe
the purpose of
wo determining
rk. efficiency,either
Bo the standard
nu output per unit
sis oftimeisfixed,
tha or the standard
t timeforajobis
pro determined, and
por efficiency is
tio determined on
n
the basis of a
of
comparison of
the
actual
wa
performance
ges
against the
of
standard.
the
tim Bedeaux Plan:
It provide
co ratioofand
mp respectively. A
ara supervisor also
ble helpsa
sta workerinsaving
nd histimesoheis
ard alsogivensome
s benefit in this
for method. The
all standard time
wo for each job is
rke determined in
rs. terms of minutes
Th which are called
e Bedeaux points
val or Bs. Each B
ue represents one
of minute through
tim time and motion
e study. A worker
sav is paid time
ed wages up to
is standard Bs or
div 100%
ide performance.
Bonus is paid
d
when actual
bot
performance
h
exceeds standard
to
performance in
the
terms of Bs.
wo
rke Taylors
r Differential
Piece Rate
an
System : F.W.
d
Taylor, founder
his
of the scientific
su
management
per
evolved this
vis
system of wage
or
payment. Under
in
this system,
the
there is no
gu characteristicsof
ara this system are
nte thattworatesof
e wage one lower
of and one higher
mi arefixed.Those
ni who fail in
mu attaining the
m standard, are
wa paid at a lower
ges rate and those
. exceeding the
Sta standard or just
nd attaining the
ard standard get
tim higher rate.
e Under this
an system, a serve
d penalty is
sta imposed on the
nd inefficient
ard workers because
wo they get the
rk wages at lower
is rates. The basic
det idea underlying
er inthisschemeis
mi to induce the
ne worker at least
d to attain the
on standard but at
the thesametimeif
bas a worker is
is relatively less
of efficient,hewill
tim lose much. For
e example, the
stu standardisfixed
dy. at 40 units per
Th day and the
e piecerateare40
ma P.and50P.per
in unit.Ifaworker
pro inaday,hewill
du getthewagesat
ces therateof50P
40 per unit and if
uni he produces 39
ts unitswillgetthe
or wages at 40
mo paiseperunitfor
re thetotaloutput.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
6
7
School of Distance
Education
ybody, who
completes the
job in standard
Ga
time. If the job
ntt
is completed in
s
less time, then
Ta
thereisahikein
sk
wagerate. This
an
hike varies
d
Bo between25%to
nu 50% of the
s standardrate.
Pl Profit Sharing
an Itisamethod
of remuneration
In under which an
thi employer pay
s,a his employees a
mi share informof
ni percentage from
mu thenetprofitsof
m an enterprise, in
wa addition to
ge regular ages at
is fixed intervals
gu oftime.
ara
2) Financial
nte
ed. and Non
Mi financial
ni Incentives
mu Individual or
m group
wa performancecan
ge be measured in
is financial terms.
giv It means that
en their
to performance is
an rewarded in
mo e and tangible
ne rewards
y provided in
or recognition of
cas accomplishment.
h Financial
as incentives
it include salary,
has premium,
a reward,
gre dividend,
at income on
im investment etc.
pa On the other
ct hand, non
on financial
mo incentives are
tiv thatsocialand
ati psychological
on attraction which
as encourages
a peopletodothe
sy work efficiently
mb and effectively.
ol Nonfinancial
of incentivecanbe
acc delegation of
om responsibility,
pli lack of fear,
sh workers
me participation,
nt. title or
Th promotion,
ese constructive
attitude,security
inc ofservice,good
ent leadershipetc..
ive 3) Positive and
s
Negative
for
Incentives
m
Positive
vis
incentives are
ibl
those agreeable
fac where as
tor negative
s incentives are
rel those
ate disagreeable
d factorsinawork
to situation which
wo an individual
rk wantsto
sit avoidandstrives
uat to accomplish
ion the standards
wh required on his
ich or her part.
pro Positive
mp incentive may
t include expected
an promotion,
ind workers
ivi preference,
du competition with
al fellow workers
to and owns
record
att
etc.Negative
ain
incentives
or includefearof
ex layoff,
cel discharge,
reductionof
the salary,
sta disapprovalby
nd employeretc.
ard FringeBenefits
s
or Employe
obj es are paid
ect several benefits
ive in addition to
s wages, salary,
set allowances and
for bonus. These
hi benefits and
m, services are
called fringe
be dservicesbythe
nef employer to
its maintain and
be promote
ca employees
use favorable
the attitude towards
se the work and
are work
off environment. It
ere not
d only increases
by their morale but
the also motivate
em them. These
plo provided
yer benefits and
as services forms
a
thepartofsalary
fri
and are
ng
generally
e.
refereed as
E
fringe benefits.
mp
AccordingtoD.
loy
Belcher,
ees
Fringe benefits
of
are any wage
the
costnotdirectly
org
connected with
ani
the employees
zat
productive
ion
effort,
are
performance,
pro
service or
vid
sacrifice.
ed
sev Kindsof
era FringeBenefits
l Thevarious
be organizationsin
nef Indiaoffer
its fringebenefits
thatmaybe
an categorizedas
fol ent fund
lo schemes,
ws pension
:
schemes,
1) Ogratuity and
ld medical benefits
Ag which are
e provided to
an employee after
d their retirement
Re and during old
ageasasenseof
tir
security about
em
theiroldage.
ent
2) Workmans
Be
Compensation
nef
these benefits
its
are provided to
employeeifthey
the
are got ignored
se
or dieunderthe
inc
working
lud
conditions and
e
the sole
pro
responsibility is
vid
oftheemployer.
H 68
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m
a
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R
e
s
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e
M
a
n
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g
e
m
e
n
t
3) EmployeeSecurityRegularwageandsalaryisgiventoemployeethatgivesafeelingofsecurity.
Otherthanthiscompensationisalsogivenifthereislayofforretrenchmentinanorganization.
4) PaymentforTimeNotWorkedUnderthiscategoryofbenefits,aworkerisprovidedpayment
fortheworkthathasbeenperformedbyhimduringholidaysandalsofortheworkdoneduringodd
shifts.Compensatoryholidaysforthesamenumberinthesamemontharegiveniftheworkerhasnot
availedweeklyholidays.
5) Safety and Health Under this benefit workers are provided conditions and requirements
regardingworkingconditionwithaviewtoprovidesafeworkingenvironment.SafetyandHealth
measures are also taken care of in order to protect the employees against unhealthy working
conditionsandaccidents.
6) HealthBenefits Employeesarealsoprovidedmedicalserviceslikehospitalfacility,clinical
facilitybytheorganization.
ProcessofWageDetermination
Practicallyhowwagesaredeterminedandmaintainedoradministeredinanorganizationis
very organization to organization. Ideally speaking it depends upon sole discretion that what
procedureanorganizationfollowsforwageandsalaryadministration.Moreorlessanattemptis
madebyeveryorganizationtofollowtheprinciplessuggestedforsoundcompensationmanagement.
Organizationtriestoinculcatesystematicprocedureforwagedeterminationandtheirrevisionatan
appropriatetime.Processofwagedeterminationincludesjobanalysisandjobevaluation,surveyof
wagesintheenvironment,determiningwagestructure,anddecidingrulesforwageadministration.
Followingaretheimportantsteps:
1.JobAnalysisandJobEvaluation:Thismaybetheprimaryexercisethatanorganizationneedsto
carefullycarryoutwithanintentiontocreatebaseforwagedetermination.Jobanalysis reveals
informationabouttasks,duties,responsibilitiesandstandardswithproposedjobistobeperformed
bytheemployees.Italsoguidesintermsofjobspecificationi.e.skills,ability.Qualificationand
experiences needed to perform the job with requisite performance standards. Job analysis gives
enoughinformationaboutthejobandtheprofileoftheperformerinordertoperformthatjob.
Another important exercise that an organization needs to carry out is Job Evaluation. Itisnothing
but finding out relative worth of a job, in terms its contribution and significance to the overall
organizationalobjectives.
2. Determining Performance Standard and Wage Surveys: Having understood the job in
considerabledetailanattemptismadetodetermineexpectedperformancestandardtobecarriedout
bytheperformer.Then,anorganizationmustsurveywageratesprevailsinthemarketforthesame
job orits similartype, sothatattractive compensationpackagecan bedesignedto induce good
qualityofcandidaturetoapplyforthejobinanorganization.Herecareshouldbetakenthatwage
structureshouldbeinaccordancewiththecomplexityandeffortsneededintheperformance.

3.DecidingWageStructureandRulesforItsAdministration: Basedoncollectionofrelevant
informationandtakingintoaccountsomeoftheinfluencingfactors,anorganizationshoulddesign
wagestructurewhichincludesslabforbasicorminimumwages,incentives,and/orincrementovera
period of time to gather with other financial and nonfinancial perquisites to be offered to an
employee.Attemptshouldbemadetofollowprinciplesoffairness,equityandjusticetogatherwith
transparency while designing wage structure and deciding rules for its administration. The rules
shouldnotprovokeunjustifieddiscriminationsandexploitationofworkersotherwiseitmayprove
counterproductiveandmaygiverisetogrievance,andindustrialdisputes.
ManagementofComplaintsandgrievances
Thereishardlyanindustrialconcernwhichfunctionssmoothlyforallthetimes.Insome
companies,theemployeeshavecomplaintsagainsttheiremployers,whileinothers,againstother
employees.Thesemayberealorimaginary,validorinvalid,genuineorfalse.Broadlyspeaking,a
complaintaffectingoneormoreworkersconstitutesagrievance.Itmayrelatetoquantumofwages,
themodeofpayment,paymentofovertimework,leave,workingconditions,promotions,seniority,
transfers,workassignments,dismissalordischarge,etc.
Complaint is an employees formal expression or dissatisfaction with various aspects of
employmentsuchasworkingconditions,hoursofwork,relationshipwithsupervisorandother
employees,consideredbytheemployeetobeinappropriate,harmfulorunfair.
A grievance is an employees formal expression of disagreement or dissatisfaction with the
adversepersonnelactioninvolvingallegeddiscriminationunderthelaw,adecreaseinsalary,
demotionandsuspensionwithoutpayand/ordischarge.
MeaningandDefinitionofGrievance
A grievance is a sign of employees discontent with job and its nature. The employee has got
certainaspirationsandexpectationswhichhethinksmustbefulfilledbytheorganisationwhereheis
working. When the organisation fails to satisfy the employee needs, he develops a feeling of
discontentordissatisfaction.Thus,grievanceiscausedduetothedifferencebetweentheemployee
expectationandmanagementpractices.
KeithDavisdefines it as any real or imagined feelingofpersonalinjusticewhichanemployeehas
concerning his employment relationship.
TheInternationalLabourOrganisationdefines grievance as a complaint of one or more workers in
respectofwages,allowances,conditionsofwork,andinterpretationofservicestipulations,covering
suchareasasovertime,leave,transfer,promotion,seniority,workassignmentandterminationof
services.
Onanalysisofthesevariousdefinitions,itmaybenotedthat:
1. AGrievancemaybeunvoicedorexpresslystatedbyanemployee.
2. Itmaybewrittenorverbal
3. Itmaybevalidandlegitimate,untrueorcompletelyfalse,orridiculous;and 70
4.Itmayariseoutofsomethingconnectedwiththeorganizationorwork.
CausesorsourcesofGrievances
Generally employees grievances maybeduetothefollowing:
1. Grievancearisingoutofworkingconditions:
1. Poorphysicalcircumstancesofworkenvironment
2. Nonavailabilityofappropriatetoolsandmachines
3. Failuretomaintaingooddiscipline
4. Mismatchofworkerwithjob
5. Veryhighproductiontargets
6. Poorrelationshipwiththesupervisor
2.GrievancearisingfromManagementPolicy:
1. Wageratesandmethodofwagepayment
2. Overtimeandincentiveschemes
3. Seniority
4. Transfers
5. Promotion,DemotionandDischarge
6. Penaltiesimposedformisconduct
7. Leave
8. Lackofopportunitiesforcareerdevelopment
3. GrievancesarisingfromViolation
1. Violationofcollectivebargainingagreement
2. Violationofcompanyrulesandregulations
3. Violationofpastpractice
4. ViolationofCentralandStateGovernmentsLaws
5. ViolationofResponsibilitiesofManagement.
GrievanceHandlingProcedure
Astandardisedgrievancehandlingprocedureconsistsofthefollowingsteps:
1. EmployeegiveswrittenstatementofGrievance
2. Meetingisheldandtheemployerinformstheemployeeoftheoutcome.
3. Appeal,ifnecessary.

School of Distance
Education
ingprocedure
arethe
following:
Es 1. Procedu
se
ral
nti
als Fairnes
of s: The
Go process
od of
Gr grievanc
iev e
an handling
ce
should
Ha
be fair
nd
lin and
g impartia
Pr l. The
oc grievant
ed should
ur be
e informe
Th d about
e the
bas process
ic
and the
pri
nci implicati
ple ons of
s making
or a formal
ess complai
ent
nt
ial
s before
of proceedi
a ng.
so 2. Substant
un
d ive Fairness:
gri The grievance
ev handler should
an not assume
ce
guilt. They
ha
ndl should
de ng other
te relevant
r evidences and
m taking into
in account any
e mitigating
th circumstances.
at 3. Confide
th ntiality:
e A
grievant
co
should
m be able
pl toraisea
ai complain
nt tandget
advicein
is
confiden
su
ce.
bs
4. Timeline
ta
ss: Delays in
nt
anystageofthe
iat
grievance
ed
handling
on
procedure can
ly
result in a
af
denial of
te
procedural
r
fairness.
he
ar 5. Record
in keeping: It is
g also necessary
fr tokeeprecords
o aboutdetailsof
m allegations,
bo responses and
th actions.
si 6. Transpa
de rency: There
s, must be
ch sufficientscope
ec for
ki transparency in
th dFairdealing:
e Openness,
ef honesty, fair
fe and accurate
cti reporting
ve should be
i ensured.
m
Meaning
pl
&
e Definitio
m nof
en Disciplin
tat e
io
Disciplin
n emeans
of getting
po obedienc
lic etorules
and
ie
regulatio
s nsofthe
an organizat
d ion.
pr Disciplin
oc eis
ed absolutely
ur essential for the
es smooth running
. of business.
7. Fayol, stated
thatdisciplineis
Op
obedience,
en
application,
ne
energy and
ss
outwardmarkof
, respect.
H According to
o Websters
ne Dictionary, the
st word discipline
y has three
a meanings.
n First, it is the
training that
cor rdmeaning,itis
rec punishment or
ts chastisement
mo
Definitionof
uld
Discipline
s,
str Accordin
g to Dr.
en
Spriegel,
gth Discipli
ens ne is the
or force that
per prompts
an
fec
individua
ts l or a
ind group to
ivi observe the
du rules,
al regulations and
be procedures
ha which are
vio deemed to be
ur. necessary to the
Se attainmentofan
co objective; it is
nd, force or fear of
it force which
is restrain an
co individual or a
ntr group from
ol doingthings
gai which are
ne deemed to be
d destructive of
by
group
enf
objectives. It is
orc
alsotheexercise
ing
of restraint or
ob
the enforcement
edi
of penalties for
en
the violation of
ce.
group
Th
regulations.
e
Thus discipline
thi
ca organization
n considered vital
be for its efficient
reg working. In
ard brief, discipline
ed is an employees
as self control
a which motivates
for him to comply
ce with the
tha organizations
t goals and
req objectives.
uir Aspectsof
es Discipline
em Negative
plo Aspect
ye This
es aspect
to uses
fear as
fol a force to
lo enforce
w disciplin
e in the
the
organizat
rul ion.
es Ifanyemployee
an orworkerdefies
d therulesand
reg regulationstrict
punishmentis
ula
leviedonthem.
tio Thisis
ns categorizedas
of traditional
an conceptof
discipline.
ce
H Manage
u ment
m
a
n
72
R
e
s
o
u
r
School of Distance
Education
progressive
outlook for
disciplining the
employees.With
osi the ever
tiv increasing
e awareness
Di among the
sci workers
pli concerning their
ne rights and
responsibility, it
was required on
No
the part of
w
management to
a
reconsider the
da
negative
ys
approachoffear
the
usedbythemso
ma
far.
na
ge Thus
me management
nt emphasized on
of the concept of
var self discipline.
iou Thisapproachof
s self control
org asserts on
ani cooperative
zat efforts of
ion employees to
s abide by the
ha rules of the
ve organization.
ad Thus positive
opt aspect of
ed discipline plays
po a much greater
siti role in
ve safeguarding
ind main
ust characteristic
sof
rial
Discipline
pe canbe
ace summedup
an asfollows:
d (1) To
pro guarante
spe e
rit successf
y. ul
M fulfilmen
ain t of
Ch organizat
ar ional
act goals it
eri motivate
sti s
cs workers
of to abide
Di by the
sci instructi
pli
ons
ne
issued
T by the
h manage
e ment or

superiors
f
o .
l (2) It is a
l
negative
o
wapproach in the
isense that it
ndiscourages
gemployees in
under taking
a
some activities
r
ewhile
encouraging
tundertaking the
hfewothers.
e
(3) On
Vi big stick
ola approach.
tio
Aims&
n
Objectivesof
or Discipline
dis
ob Theaimsand
objectivesof
edi
disciplineareas
en follows:
ce
of (1)For the
achievement
or
of
ga organizationa
niz lgoalsittries
ati to earn the
on willing
rul approval of
employees.
es
it (2) To introduce
im the
po component
ofuniformity
ses
and
fin assurance
e despite the
or numerous
re organization.
pri (3) For
ma improving the
nd, quality of
the production by
ref enhancing the
or morale and
e, working
it efficiencyofthe
is employees.
als
o (4) To generate
respect for
cal
human
led relations in
as the
pu organization
nit .
ive (5) To confer
or
ainIndustry
n
d Disciplin
e acts as a
scornerstone for
ethe smooth
e
functioning of
k
any enterprise.
dAbsence of
idisciplineinany
rindustry can
ecreate a great
c
amount of
t
icommotion and
oconfusion
nthereby
decreasing its
a
productivity.For
n
dany enterprise
however big or
rsmallmanpower
eis the most
s
pivotal resource
p
oand thereby all
neffortsshouldbe
smade to
idiscipline them.
bAllsteps should
i
be taken to
l
iencourage
tmutualtrustand
yconfidence
.between the

workers and the
Im management
po which is
rta indispensable to
nc bring about
e
needed
of
discipline at the
Di
workplace.
sci
pli Maintenance of
ne discipline is a
pre the organization
co swiftly.
ndi
Indiscipline
tio
n Disciplin
for ed employers
att will assist in
ain creation of
pleasant
ing
industrial
the
environment
ai which
ms Indisciplinemay
an be expressed as
d non
pur compliance to
po formal and
ses informal rules
of and regulations
ofan
H
u
m
a
n
R
e
s
o
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c
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M
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7
3
School of Distance
Education
employeesas
wellasonthe
organizationasa
org whole.
ani
Factors
zat Responsiblefor
ion Indiscipline
.
Thereare
Ind
varioussocio
isc
economicand
ipli
culturalfactors
ne
thatplayarole
ma
increating
y
indisciplinein
pro
anorganization.
ve
Theimportant
to
amongthemare:
ha
ve 1. Unfair labour
det practices
ri 2. Wage
me differentials
nta 3. Wrong work
l assignments
eff 4. Defective
ect grievance
s procedure
on 5. Payment of
the very low
mo wages
ral 6. Poor
e communicatio
an n
d 7. Victimisation
mo by
management
tiv
ati 8. Ineffective
on leadership.
of Misconduct
the
and other
n employees,
act inconsistentwith
ion thenormssetfor
or discharging
typ duties,unsafeor
e unfaithful to
of such a degree
be that it becomes
ha incompatible to
vio continue
ur employer
ca employee
n relationships.
be Categoriesof
def Misconduct
ine
Disciplinaryacts
d ofmisconduct
as canbe
mi categorizedon
thebasisofthe
sco
severityofthe
nd consequences.
uct
(1) Minor
if
Contravention
it
is results in few
pre serious
jud consequences.
ici Example
al negligence,
to minor
the disobedience to
int rules,
ere
carelessness.
sts
(2) Major
of
the Contravention
em Partially
plo hinders the
yer working of the
org unlawful and
ani severe nature
zat which endanger
ion employment
. relationship.
Ex Example
am threattouse
ple weapon,useof
drugsonthejob,
smokingnear
lyi inflammables.
ng, Misconduct
ch StatedIn
ModelStanding
eat
Orders
ing
Hereis
,
an
ste illustrati
ali velistof
acts
ng
constituti
(3) ng
miscond
Int uctunder
ole Model
Standing
ra
Orders
ble Act,
Of 1946.
fen (i)Wilful
insubordination
ces
ordisobedience
ofanylawful
are andreasonable
order,ruleor
of regulation.
He
u Manage
mment
a
n 74
R
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s
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c
(2) Refusaltoworkonajoboramachinewhichhasbeenassignedtohim.
(3) Refusaltoacceptorreplytoachargesheetwithintheprescribedperiodoftime.
(4) Theft,fraud,ordishonestyinconnectionwiththepropertyofthecompany.
(5) Theft of another employees property inside the industrial areaorcompanypremises.
(6) Causing willful damage to , or loss of , the employers goods or property.
(7) Causingdamagetoaproductinprocessortoanyproperty.
(8) Interferencewith,safetydevices.
(9) Nonobservanceofsafetyprecautionsandrules.
(10) Takingorgivingabribeoranyillegalgratification.
(12) Acceptanceofgiftsfromsubordinates.
(13) Habituallatecoming.
(14) Absencefromdutywithoutleave.
(15) Overstaywhenonleavewithoutpriorauthorizedpermission.
(16) Entering or leaving , or attempting to enter or leave , the work premises except through
authorizedentranceandexits.
Causes&ApproachesTowardsDisciplinaryAction
CausesforInfringementofDiscipline
Themainreasonsforbreachofdisciplineinanyorganizationmaybestatedunderfollowing
heads
(I)CausesRelatedTotheWorker
(a)Illiteracyandlowintellectuallevelofworkers.
(b)Workerspersonalproblemsliketheirfears,hope,aspirationsetc.
(c)Inborntendenciesofworkerstofloutrules.
(II)CausesRelatedTotheSocioCulturalFactors
(a)Misunderstandingandrivalryamongworkers.
(b)Discriminationbasedoncaste,colour,sex,placeinimposingpenalties.
(III)CausesRelatedTotheWorkEnvironment
(a)Badworkingconditions.
(b)Defectivesupervision
(c)Nonplacementofrightpersonontherightjob. 75
School of Distance
Education
gement.
(b)Faulty
performance
(I appraisal
V) systemsleading
Ca tofavoritism
us thereby
es generating
Re indiscipline.
lat (c)Absenceof
ed sympatheticand
To scientific
the management
M
Principlesof
an
Industrial
ag
Discipline
em
ent Industria
Pr lDiscipline
act shouldbebased
ice oncertainjust
s andfair
(a) principlestobe
La acceptedbythe
ck employees.The
of basic
cla Prerequisitesor
rit
principlestobe
y
in observedare:
rul (1)The very
es objectives of
& industrial
reg discipline
ula should be
tio clearly laid
n out
as
lai (2) The code of
d conduct should
out be framed with
by consultation &
the
collaboration of
top
ma the workers or
na their
rep erning the
res discipline
ent should
understanda
ati
blebyall.
ves
. (5) The rules of
conduct must
(3) Th
e abletosettlethe
co grievances if
de any arising
of during the
co period be of
nd employment.
uct
mu (6) The
st approach of
be disciplinepolicy
co
should be
m
mu preventive i.e.
nic stressbelaidon
ate prevention of
d violation of
to discipline rather
all
than on the
co
nc administration
ern ofpenalties.
ed
(7) The
in
the quantum of
org reprimand for
ani each case of
zat misconduct
ion
. should be
specified clearly
(4) Th
in advance by
e
rul publishing them
es in employees
an handbook.
d
(8) The
reg
enforceme
ula
nt
tio
authority
n
must be
co
specified.
nc
(9) any one worker
Di oremployee.
sci
(10) A
pli
disciplinary
ne
committeeinthe
pol
advisory
icy
capacity be
sh
constituted to
oul
look into the
d
matters of
not
indiscipline and
dis
put forth the
cri
necessary
mi
suggestions.
nat
e Guidelinesofa
ag Disciplinary
ain Action
st (1) Fixation of
the Responsibility
em
the
plo
responsibility
ye
for sustaining
es;
it discipline in the
sh organization
oul should be given
d to a responsible
be person, say
uni personnel
for officer.
m
for (2) Proper
all Framing &
em Communicatio
plo nofRulesthe
ye rules and
es
regulations
wit
should be
ho
cautiously and
ut
fav accurately
ori formulated and
ng published in
em Reasonable
plo the work
ye standards set
e Should be
ha attainableby the
nd employees and
bo the rules be
ok modified at
s. frequent
intervals to suit
(3)
the changing
Ru
organizational
les
circumstances.
an
(4) Equal
d
Treatment
Re
Rules and
gul penalties should
ati be applied
on equitably.
s Identical
punishment
Sh
should be
oul granted for
d identical
be offences.
H
u
m
a
n
R
e
s
o
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c
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6
School of Distance
Education
lation of a rule
hasoccurred.
(6) Search for
(5)
Pr the Facts
om before
pt proceeding to
Ac take any action
against an
tio
employee ,
n
car provide him
e with sufficient
sh time to present
oul his side of the
d case i.e. What
be and why it
tak Happened .?
en (7) Natural
to Justice the
ma punishment or
ke penalty imposed
sur on the
e indisciplined
tha worker must
t satisfy the
the principle of
pe natural justice.
nal The punishment
ty should always
is justify with the
im gravity of the
po offence.
sed Mc Gregors
so Hot Stove Rule
on
Themodel
aft
methodfor
er enforcementof
the disciplineshould
vio havethefour
im suffer Similarly
por a
tan workerknows
whatisexpected
t
ofhimandwhat
Ch willbetheresult
ara ifhefailstolive
cte uptothose
rist expectations.
ics (2) Immediate
of Effect if one
a overlooks the
red advancewarning
and touches the
hot stove, gets
immediate result
sto (fingers may
ve. suffer burns)
(i) likewiseworkers
Ad may get
va instantaneous
nc effect on
e committing any
W act of
ar
indiscipline.
ni
ng (3) Consistenc
a y every time
red
wetouchared
hot hotstoveweget
sto the same result.
ve Every time a
tell
s worker commits
us, the insufficient
d
act , he should
on
t bepenalized.
tou
(4) Impersonal
ch
me Approach red
, hot stove
yo
functions
u
wil uniformly for
l all, doing away
wit caste, creed,
h colour, sex etc.
an It should
y guarantee the
fav fundamental
our righttoequality.
itis Thus these four
m. characteristics
In should be kept
the in mind before
sa administrating
me any disciplinary
wa action.
y, Procedurefor
ma Disciplinary
na Action
ge
The
me followin
nt gsteps
sh should
oul betaken
careof
d while
not administr
dis atinga
cri disciplin
ary
mi
action:
nat
e (1) Ascertainin
in gtheStatement
im of the Problem
po Firstlookinto
sin the violation of
g rule and the
pu number of
nis employees
hm involved in the
ent matter. Then
on ascertain the
bas gravity of the
is violationandthe
of conditionsunder
which it
oc er the relevant
cur facts.
red
(3) Deciding
.
upon the Type
(2) of Penalty
Se The penalty or
ar punishment
chi should be such
ng which
for discourages
the future
reoccurrence of
Un
the offence or
de
violation. But it
rly
should always
ing relate to the
Fa gravity of the
cts offence.
(4) Application
Th of Penalty
is The selected
cal penalty may be
ls imposed on the
for wrongdoersand
tho ifthe offenceis
rou
not of a serious
gh
nature then it
ex
maybedisposed
am
offquickly.
ina
(5) Followup
tio
on Disciplinary
n
Action
of
Vigilant
the supervision of
cas the person
e against whom a
tog disciplinary
eth action is taken
shouldbedone.
H man e
u Resourc Manage
m
e
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7
7
School of Distance
Education
andlaiddown
certain
principles
Co governingit,
thesewere:
de
of (1) ItisaState
Di induced
sci voluntary
pli
agreement
ne
between labour
in
In unions and
dia management to
n abide by certain
In selfimposed
du rulesofbehavior
str in order to
y
ensure that
The
disputes do not
Indi
arise;andthat,
an
if they do, to
labo
promote and
ur
orderly
conf
eren
settlement
ce
through
held
negotiation ,
in
conciliation and
Ne
voluntary
w
Del
arbitration.
hiin
(2) The
July Code
195 enjoys upon
7, the parties to
disc accord due
recognition
usse
to each
d
others just
disc
rights and
iplin
responsibilities.
ein
Indi
(3) It enjoins
an
upon the parties
Ind
to refrain from
ust
rie taking any
s, unilateral action
in pedition;andto
co abjure strikes
nn and lockouts
ect without notice
ion andwithoutfirst
wit exploring all
h possibleavenues
an ofasettlement.
y
(4) It
ind
discourages
ust
litigation and
rial lays emphasis
ma on a mutual
tter settlement of
s ; disputes through
to negotiation,
util conciliation and
ize voluntary
the arbitrationrather
exi than through
sti adjudication.
ng
(5) It enjoins
ma
that neither
chi
party should
ner
resort to
y
demonstration ,
for
intimidation ,
the
victimization ,
set
violence,
tle
coercion ,
me
discrimination ,
nt
or interfere in
of
union activities
dis
or with the
put
normal work of
es
employees , or
wit
indulge
h
insubordination
the
or wilful
ut
damage to
mo
property.
st
ex (6) The code
req d mutually
uir agreedgrievance
es redressel
the procedure. It
em requiresworkers
plo nottoadoptgo
yer slowtactics,or
s indulge in stay
to in or sitdown
rec strikes while
og theyareonduty.
niz
(7) It
e
emphasizes that
the
awards ,
ma
decisions ,
jor
agreements and
ity
settlements
uni
should be
on
promptly and
in
readily
the
implemented ;
ir
andthatanyact
est
which disturbs
abl
or impairs the
ish
cordial relations
me
between
nts
employees and
or
management,or
ind
which is
ust
contrary to the
rie
spirit of the
s,
Code , is
an
carefully
d
avoided.
set
up (8) It directs
a employees and
we their trade
ll unions to take
def appropriate
ine action against
d their officers
an and members
wh in activities
o which are
ind contrary to the
ulg spirit and letter
e ofthecode.
H
u
m
a
n
R
e
s
o
u
r
c
e
M
a
n
a
g
e
m
e
n
t
7
8
School of Distance
Education
Human
Resource
Management
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