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Definit io n 1 Inte gr atio n HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives. Definit io n 2 Influe ncing HRM is concerned ith the people dimensions in management. !ince every organization is made up of people" acquiring their services" developing their s#ills" motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. $his is true" regardless of the type of the organization % government" business" education" health" recreational" or social action. Definit io n 3 Applica bil ity HRM planning" organizing" directing and controlling of the procurement" development"

compensation" integration" maintenance and separation of human resources to the end that individual" organizational and social objectives are accomplished. MEANING OF HRM: HRM is management function that helps managers to recruit" select" train and develop members for an organization. &bviously HRM is concerned ith the people's dimensions in organizations. HRM refers to set of programs" functions" and activities designed and carried out Co e e!e" ent # o f H RM $eo %!e: &rganizations mean people. (t is the people ho staff and manage organizations. M & n& 'e" ent : HRM involves application of management functions and principles for acquisitioning" developing" maintaining and remunerating employees in organizations. I nt e' &t io n ( Co n#i#t en) *: )ecisions regarding people must be integrated and consistent. I nf!+en) e: )ecisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable cost. A %%!i) & ,i!it *: HRM principles are applicable to business as ell as non*business organizations too" such as education" health" recreation and the li#e. O-.ECTI/ES OF HRM: +. So ) iet & ! O,0e) t i1e#: $o be ethically and socially responsible to the needs and challenges of the society hile minimizing the negative impact of such demands upon the organization. ,. O '& ni2 &t io n& ! O,0e) t i1e#: $o recognize the role of HRM in bringing about organizational effectiveness. HRM is only means to achieve to assist the organization ith its primary objectives. -. F+n) t io n& ! O,0e) t i1e#: $o maintain department's contribution and level of services at a level appropriate to the organization's needs. .. $e #o n& ! O,0e) t i1e#: $o assist employees in achieving their personal goals" at least in so far as these goals enhance the individual's contribution to the organization. $his is necessary to maintain employee performance and satisfaction for the purpose of maintaining" retaining and motivating the employees in the organization. SCO$E OF H RM : /rom Ent * to the E3it of an employee in the organization !cope of HRM can be described based on the follo ing activities of HRM. 0ased on these activities e can summarize the scope of HRM into 1 different categories as mentioned belo after the activities. 2ets chec# out both of them. H RM A )t i1it ie# +. HR 3lanning ,. 4ob 5nalysis -. 4ob )esign .. Recruitment 6 !election 7. &rientation 6 3lacement 8. $raining 6 )evelopment 1. 3erformance 5ppraisals 9. 4ob :valuation ;. :mployee and :<ecutive Remuneration

+=. Motivation ++. >ommunication +,. ?elfare +-. !afety 6 Health +.. (ndustrial Relations 4 C&t e'o ie# o f S) o %e o f H RM +. (ntroduction to HRM ,. :mployee Hiring -. :mployee and :<ecutive Remuneration .. :mployee Motivation 7. :mployee Maintenance 8. (ndustrial Relations 1. 3rospects of HRM RO5E OF HRM +. A61i#o * Ro!e: HRM advises management on the solutions to any problems affecting people" personnel policies and procedures. a. $e #onne! $o!i)ie#: &rganization !tructure" !ocial Responsibility" :mployment $erms 6 >onditions" >ompensation" >areer 6 3romotion" $raining 6 )evelopment and (ndustrial Relations. b. $e #onne! $ o)e6+ e#: Relating to manpo er planning procedures" recruitment and selection procedures" and employment procedures" training procedures" management development procedures" performance appraisal procedures" compensation procedures" industrial relations procedures and health and safety procedures. ,. F+n)tion&! Ro!e: $he personnel function interprets and helps to communicate personnel policies. (t provides guidance to managers" hich ill ensure that agreed policies are implemented. -. Se 1i)e Ro!e: 3ersonnel function provides services that need to be carried out by full time specialists. $hese services constitute the main activities carried out by personnel departments and involve the implementation of the policies and procedures described above. Ro!e of HR M&n&'e # (To6&*) +. H+"&nit& i&n Ro!e: Reminding moral and ethical obligations to employees ,. Co+n#e!o : >onsultations to employees about marital" health" mental" physical and career problems. -. Me6i&to : 3laying the role of a peacema#er during disputes" conflicts bet een individuals and groups and management. .. S%o7e#"&n: $o represent of the company because he has better overall picture of his company's operations. 7. $ o,!e" So!1e : !olving problems of overall human resource management and long* term organizational planning. 8. C8&n'e A'ent: (ntroducing and implementing institutional changes and installing organizational development programs 1. M&n&'e"ent of M&n%o9e Re#o+ )e#: 0roadly concerned ith leadership both in the group and individual relationships and labor*management relations. Ro!e of HR M&n&'e # (F+t+ e) +. 3rotection and enhancement of human and non*human resources ,. /inding the best ay of using people to accomplish organizational goals

-. .. 7. 8. 1.

(mprove organizational performance (ntegration of techniques of information technology ith the human resources @tilizing behavioral scientists in the best ay for his people Meeting challenges of increasing organizational effectiveness Managing diverse or#force

FUN CTI ON S OF H RM A 5 ON G ;I TH O-. ECTI /ES HRM O,0e)ti1e# !ocial &bjectives A-B &rganizational &bjectives A1B S+%%o tin' HRM F+n)tion# 2egal >ompliance 0enefits @nion Management Relations Human Resource 3lanning :mployee Relations Recruitment 6 !election $raining 6 )evelopment 3erformance 5ppraisals 3lacement 6 &rientation :mployee 5ssessment 3erformance 5ppraisals 3lacement 6 &rientation :mployee 5ssessment $raining 6 )evelopment 3erformance 5ppraisals 3lacement 6 &rientation >ompensation :mployee 5ssessment

/unctional &bjectives A-B 3ersonal &bjectives A7B

M & n& 'e i& ! F+n) t io n# o f H RM +. $!&nnin': 3lan and research about age trends" labor mar#et conditions" union demands and other personnel benefits. /orecasting manpo er needs etc. ,. O '&ni2in': &rganizing manpo er and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives. -. St&ffin': Recruitment 6 !election .. Di e)tin': (ssuance of orders and instructions" providing guidance and motivation of employees to follo the path laid*do n. 7. Cont o!!in': Regulating personnel activities and policies according to plans. &bservations and comparisons of deviations O%e & t io n& ! F+n) t io n# o f H RM +. $ o)+ e"ent: 3lanning" Recruitment and !election" (nduction and 3lacement ,. De1e!o%"ent: $raining" )evelopment" >areer planning and counseling. -. Co"%en#&tion: ?age and !alary determination and administration .. Inte' &tion: (ntegration of human resources ith organization. 7. M&inten&n)e: !ustaining and improving or#ing conditions" retentions" employee communication 8. Se%& &tion#: Managing separations caused by resignations" terminations" lay offs" death" medical sic#ness etc. CH A 5 5 EN GES OF H RM I N IN DIA N M ODERN M A NA GEM EN T ECON OM < o CH A 5 5 EN GES OF

+. G!o ,& !i2 &t io n: - Cro ing internationalization of business has its impact on HRM in terms of problems of unfamiliar la s" languages" practices" competitions" attitudes" management styles" or# ethics and more. HR managers have a challenge to deal ith

more functions" more heterogeneous functions and more involvement in employee's personal life. 2> Co %o & t e Re- o '& ni2 &t io n#: - Reorganization relates to mergers and acquisitions" joint ventures" ta#e over" internal restructuring of organizations. (n these situations" it is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations itself. (t is a challenge to manage employees' an<iety" uncertainties" insecurities and fears during these dynamic trends. 3> N e9 O '& ni2 &t io n& ! fo " #: - $he basic challenge to HRM comes from the changing character of competitions. $he competition is not bet een individual firms but bet een constellations of firm. Major companies are operating through a comple< eb of strategic alliances" forgings ith local suppliers" etc. $hese relationships give birth to completely ne forms of organizational structure" hich highly depend upon a regular e<change of people and information. $he challenge for HRM is to cope ith the implications of these ne ly net or#ed relations more and more" in place of more comfortable hierarchical relationships that e<isted ithin the organizations for ages in the past. .. C8& n'in' De" o ' & %8i) # o f ;o 7fo ) e: - >hanges in or#force are largely reflected by dual career couples" large chun# of young blood bet een age old superannuating employees" or#ing mothers" more educated and a are or#ers etc. $hese dynamic or#forces have their o n implications for HR managers and from HRM point of vie is a true challenge to handle. 7. C8& n'e6 e" %!o *ee e3 %e) t & t io n#: - ?ith the changes in or#force demographics" employee e<pectations and attitudes have also transformed. $raditional allurements li#e job security" house" and remunerations are not much attractive today" rather employees are demanding empo erment and equality ith management. Hence it is a challenge for HRM to redesign the profile of or#ers" and discover ne methods of hiring" training" remunerating and motivating employees. ?> N e9 I n6+#t i& ! Re!& t io n# A %% o & ) 8: - (n today's dynamic orld" even unions have understood that stri#es and militancy have lost their relevance and unions are greatly affected by it. $he trade union membership has fallen drastically orld ide and the future of labor movement is in danger. $he challenge before HRM is to adopt a proactive industrial relations approach hich should enable HR specialist to loo# into challenges unfolding in the future and to be prepared to convert them into opportunities. 4> Rene9e6 $eo %!e Fo ) +#: - $he need of today's orld and business is the people's approach. $he structure" strategy" systems approach hich or#ed in post ar era is no more relevant in today's economic environment hich is characterized by over capacities and intense competition. $he challenge of HR manager is to focus on people and ma#e them justifiable and sustainable. 9. M & n& 'in' t 8e M& n& 'e #: - Managers are unique tribe in any society" they believe they are class apart. $hey demand decision*ma#ing" bossism" and operational freedom. Ho ever in the post liberalization era" freedom given to managers is grossly misused to get rid of talented and hard or#ing juniors. $he challenge of HRM is ho to manage this tribeD Ho to ma#e them realize that the freedom given to them is to enable them ma#e quic# decisions in the interest of the organization and not to resort to itch* hunting. ;. ; e& 7e So ) iet * int e e#t #: - 5nother challenge for HRM is to protect the interest of ea#er sections of society. $he dramatic increase of omen or#ers" minorities and other bac# ard communities in the or#force has resulted in the need for organizations to ree<amine their policies" practices and values. (n the name of global competition"

productivity and quality the interests of the society around should not be sacrificed. (t is a challenge of today's HR managers to see that these ea#er sections are neither denied their rightful jobs nor are discriminated against hile in service. +=. Co nt i,+t io n to t 8e #+) ) e## o f o '& ni2 & t io n#: - $he biggest challenge to an HR manager is to ma#e all employees contribute to the success of the organization in an ethical and socially responsible ay. 0ecause society's ell being to a large e<tent depends on its organizations.

STRATEGIC HUMAN RESOURCE MANAGEMENT: St & t e'*: !trategy is a ay of doing something. (t includes the formulation of goals and set of action plans for accomplishment of that goal. St & t e'i) M& n& 'e" ent : 5 3rocess of formulating" implementing and evaluating business strategies to achieve organizational objectives is called !trategic Management Definit io n o f St &t e'i) M& n& 'e" ent : !trategic Management is that set of managerial decisions and actions that determine the long*term performance of a corporation. (t includes environmental scanning" strategy formulation" strategy implementation and evaluation and control. $he study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation's strengths and ea#nesses. St e%# in St &t e'i) M& n& 'e" ent : +. En1i o n" ent & ! S) & nnin': 5nalyze the &pportunities and $hreats in :<ternal :nvironment ,. St & t e'* Fo " +!& t io n: /ormulate !trategies to match !trengths and ?ea#nesses.

(t can be done at >orporate level" 0usiness @nit 2evel and /unctional 2evel. -. St & t e'* I" %!e" ent & t io n: (mplement the !trategies .. E1& !+& t io n ( Co nt o !: :nsure the organizational objectives are met. I M $ORTA N CE ( -EN EFI TS OF STRA TEGI C M A NA GEM EN T 5llo s identification" prioritization and e<ploration of opportunities. 3rovides an objective vie of management problems. Represents frame or# for improved co*ordination and control Minimizes the effects of adverse conditions and changes 5llo s major decisions to better support established objectives 5llo s more effective allocation of time and resources 5llo s fe er resources and lesser time devoted to correcting ad hoc decisions >reates frame or# for internal communication Helps to integrate the individual behaviors 3rovides basis for the clarification of responsibilities :ncourages for ard thin#ing :ncourages favorable attitude to ards change.

RO5E OF HRM IN STRATEGIC MANAGEMENT Ro!e in St &te'* Fo "+!&tion: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. )etails regarding advanced incentive plans used by competitors" opinion survey data from employees" elicit information about customer complaints" information about pending legislation etc. can be provided by HRM. @nique HR capabilities serve as a driving force in strategy formulation. Ro!e in St &te'* I"%!e"ent&tion: HRM supplies the company ith a competent and illing or#force for e<ecuting strategies. (t is important to remember that lin#ing strategy and HRM effectively requires more than selection from a series of practice choices. $he challenge is to develop a configuration of HR practice choices that help implement the organization's strategy and enhance its competitiveness.


Definition 1: Organizing and enhancing capacities to produce. HR) is a process of organizing and enhancing the physical" mental and emotional capacities of individuals for productive or#. Definition 2: Bring possibility of performance and growth HR) means to bring about the possibility of performance improvement and individual gro th. Human resource development is a process to help people to acquire competencies and to increase their #no ledge" s#ills and capabilities for better performance and higher productivity. $ o&)ti1e HRD St &te'ie# fo !on' te " %!&nnin' &n6 ' o9t8 (n today's fast changing" challenging and competitive environment HR) has to ta#e a proactive approach that is to see# preventive care in human relations. @sing HR) strategies ma<imizations of efficiency and productivity could be achieved through qualitative gro th of people ith capabilities and potentialities to gro and develop. HR) is al ays a function of proper utilization of creative opportunities and available environment through acquisition of #no ledge" s#ills and attitudes necessary for productive efforts.

2ong*term gro th can also be planned by creating highly inspired groups of employees ith high aspirations to diversify around core competencies and to build ne organizational responses for coping ith change. 5 proactive HR) strategy can implement activities that are geared up and directed at improving personal competence and productive potentialities of human resources. /ollo ing strategic choices can be considered survive and gro . hich ould help today's organizations to

C8&n'e M&n&'e"ent: Manage change properly and become an effective change agent rather than being a victim of change itself. /&!+e#: 5dopt proactive HR) measures" hich encourage values of openness" trust" autonomy" proactivity and e<perimentation. M&3i"i2e % o6+)ti1it* &n6 effi)ien)*: $hrough qualitative gro th of people ith capabilities and potentialities to gro and develop thrive to ma<imize productivity and efficiency of the organization. A)ti1itie# 6i e)te6 to )o"%eten)e ,+i!6in': HR) activities need to be geared up and directed at improving personal competence and productive potentialities of manpo er resources.

;8&t i# t8e 6efinition of & te&"A 5 team is defined as a reasonably small group of people" ho bring to the table a set of complementary and appropriate s#ills" and ho hold themselves mutually accountable for achieving a clear and identifiable set of goals. Te&"# )&n ,e 1e * effe)ti1e> (n many situations teams can achieve more than individuals or#ing on their o n. $eams can bring to bear a ider range of s#ills and e<perience to solve a problem. $eams also produce better quality decisions. ?hen a team has been or#ing on a problem" and they have a sense of commitment to the common solution ;8&t 6o 9e "e&n ,* te&" effe)ti1ene##A 5 team can be considered to be effective if their output is judged to meet or e<ceed the e<pectations of the people ho receive the output. 3roducing a quality output is not enough to judge the effectiveness of the team. $he second criteria" is that the team should still be able function effectively after they have completed their tas#. (t should not be torn apart by dissension. /inally" effectiveness is judged by hether the team feels satisfied ith its efforts. (f the team members are pleased ith their efforts" if the e<perience has been a good one" if time spent a ay from their normal or# has been orth the effort" the team has li#ely been effective. ;8&t t8en & e t8e f&)to # t8&t )ont i,+te to9& 6# &n effe)ti1e te&"A

$here are three areas of group behavior that must be addressed for teams to be effective. $he team must or# hard. $he effort that the team puts in to get the job done is dependent on hether the nature of the tas# motivates the members of the team and hether the goals are challenging.$he team must have the right mi< of s#ills to bring to the table. $hese s#ills include technical" problem solving and interpersonal s#ills. $he team must be able to develop appropriate approaches to problem solving. $his depends on developing a plan of attac# and using appropriate techniques for analysis. $he follo ing factors contribute to hard solving strategiesE T8e t&#7 it#e!f #8o+!6 ,e "oti1&tin'> $he tas# itself should be seen as being orth hile. (t needs to be a hole piece of or# ith a clear and visible outcome so that people can feel a sense of o nership. $he outcome of the tas# should be perceived as being important to other peopleFs lives. (t should affect others in the organization or impact on the e<ternal customer. $he job should provide the team ith an opportunity for self*regulation. $hey should decide ho the or# is to be done. Meaningful feedbac# should be provided on the ho ell the team is performing. T8e te&" nee6# )8&!!en'in' 'o&!#C 98i)8 & e )!e& !* 6efine6> ?hen challenging goals are set the team ill mobilize its efforts to find innovative ays to achieve feats that may have been considered impossible. 3roviding a challenging job is the most important motivator to sustain group effort. Coals provide a sense of direction to the team so that hen conflict occurs it is possible to channel the conflict more constructively by returning to the goals for direction. $he team needs to buy in to the goals. $hey must have the opportunity to buy in and commit to achieving the goals. Coals need to be challenging" but not impossible to achieve. $hey also need to be measurable so that progress to ards achieving them can be monitored and results confirmed. Re9& 6# & e i"%o t&nt> $he re ards need to suit the personal characteristics of the people on the team. ?hatever form the re ard ta#es" it is important that group effort be recognized. &ne should avoid the destructive effect of trying to single out individuals from the group" hen there has been a group effort. Re ards merely reinforce these conditions for fostering group effort. or#" s#ill development and effective problem

T8e te&" #8o+!6 8&1e t8e i'8t "i3 of #7i!!#. $he right mi< of s#ills should be brought to the tas# at hand. (t is also a question of carefully revie ing the job to determine hat relevant s#ills is required and selecting staff so that the team has the right balance. 3roviding relevant training then ma#es up any shortfall in s#ills. $echnical s#ills are required. /or teams ho are trying to improve a process that cuts across department boundaries" each function should be represented. &ne should achieve a balance of s#ills. $his means avoiding having a preponderance of s#ills and e<perience in one specialized area. !heer numbers may eigh the solution to ards the dominant group. (n the case of permanent or# teams it is li#ely that team members ill not have all the tas# relevant s#ills at the onset. ?hen the group is ne " it is li#ely that members ill bring narro s#ills learned in their old roles. $hey ill need to develop broader s#ills for the ne job. $o ensure that this is done" training and coaching should be provided. $he members of the team need to have problem solving and decision*ma#ing s#ills as ell as technical s#ills. ?hen a business is ma#ing its first venture into team based or#" it


is li#ely that people ill not have a good grasp of the techniques related to problem analysis and solution. $hese relevant s#ills must be acquired" so it ill be necessary to provide training. &ver a period of time staff ill become e<perienced in problem solving techniques and the organization ill develop a repertoire of s#ills among the staff so this training ill not al ays be necessary. (nterpersonal s#ills are also important. $his is not as obvious as it may sound. Most people do not listen ell. 2istening is much more than being quiet hen some else is tal#ing. 5ctive listening is required. Many people do not spea# to the point but ramble on or go off at a tangent. Most people do not ta#e criticism ell and tend to be defensive about their o n opinions. A' ee on & )o6e of )on6+)t. 5t the beginning of the team project it is important to develop a code of conduct for meetings. $he team needs to agree on a set of rules to ensure that their efforts are purposeful and that all members contribute to the or#. $he most critical rules pertain to attendance" open discussion" using an analytical approach" not pulling ran# over other members" planning the or# and sharing or# assignments. $his ill ensure that the or# is done ell and done on time. T8e te&" "+#t 6e1e!o% effe)ti1e % o,!e" #o!1in' #t &te'ie#> /or the team to be able to develop an appropriate strategy" it must have a clear definition of the problem" #no hat resources it has available and the limits" and understand the e<pectations. (t must then develop a problem*solving plan" based on the approach suggested in the section on continuous improvement. ?hen this does not happen" people are passive. $heir s#ills and #no ledge are not utilized and they aste their time.

S%e)i&! te&"# 8&1e #%e)i&! i##+e#> /rom the perspective of organisational improvement e are interested in three types of teams. &ne is the problem solving team" another is the or# team and then there is the senior management team. 3roblem solving teams are set up ith a clearly defined tas# to investigate a problem and recommend a solution. !ometimes the same team ill go on to implement the solution. ?hen their tas# is completed the team is disbanded and members go bac# to their normal organisational duties. $here are t o important issues facing these teams. &ne is getting started and the other is handing over the recommendations for implementation. $he #ey to getting started is to ensure that the team is committed to achieving an agreed set of goals. Coals serve to focus the teamFs effort. (mplementation is important. (t ill not just happen; it must be planned. $he implementers must be brought into the solution stage so that they develop a sense of o nership to ards the solution and buy into it. $he best ay to do this is to have the problem solving team do the implementation. 5nother approach is to phase the implementers into the team so that the membership changes prior to the implementation. ?hatever approach is used one should remember that the idea is to implement a solution and not to produce a report. ?or# teams are different in that they are a fi<ed part of the organization. $hey have an ongoing function" hich is to control a set of activities that ma#e up a discrete operation in the overall business process. $hey need to focus on the critical factors in their process and


to control these factors to ensure a quality product.


Definition 1: - Need, Availability, Supply !emand HR3 includes estimation of ho many qualified people are necessary to carry out the assigned activities" ho many people ill be available" and hat" if anything" must be done to ensure personnel supply equals personnel demand at the appropriate point in the future. Definition 2: - "ight numbers, #apability, Organization Ob$ectives HR3 is a 3rocess" by hich an organization ensures that it has the right number and #ind of people at the right place" at the right time" capable of effectively and efficiently completing those tas#s that ill help the organization achieve its overall objectives. Definition 3: - %ranslation of ob$ectives into &" numbers HR3 is a process of translating organizational objectives and plans into the number of or#ers needed to meet those objectives. M EA NI N G E $UR$OSE OF H R$ (n simple ords HR3 is understood as the process of forecasting an organization's future demand for and supply of the right type of people in the right numbers. (t is only after HR3 is done" that the company can initiate and plan the recruitment and selection process.

HR3 is a sub*system in the total organizational planning. HR3 facilitates the realization of the company's objectives by providing right type and right number of personnel. HR3 is important because ithout a clear*cut manpo er planning" estimation of a organization's human resource need is reduced to mere guess or#. N EED ( I M $ORTA N CE OF H R$ Fo e) & #t f+t + e %e #o nne! nee6#: $o avoid the situations of surplus or deficiency of manpo er in future" it is important to plan your manpo er in advance. /or this purpose a proper forecasting of futures business needs helps you to ascertain our future manpo er needs. /rom this angle" HR3 plays an important role to predict the right size of manpo er in the organization. Co %e 9it 8 ) 8& n'e: HR3 enables an enterprise to cope ith changes in competitive forces" mar#ets" technology" products and government regulations. !uch changes generate changes in job content" s#ills demands and number of human resources required. C e& t in' 8i'8!* t& !ent e6 %e #o nne!: !ince jobs are becoming highly intellectual and incumbents getting vastly professionalized" HR3 helps prevent shortages of labor caused by attritions. /urther technology changes ould further upgrade or degrade jobs and create manpo er shortages. (n these situations only accurate human resource planning can help to meet the resource requirements. /urther HR3 is also an ans er to the problems of succession planning. $ o t e)t io n o f 9e& 7e #e) t io n# : 5 ell*conceived personnel planning ould also help to protect the interests of the !>G!$" physically handicapped" children of socially oppressed and bac# ard classes ho enjoy a certain percentage of employments not ithstanding the constitutional provisions of equal opportunity for all. I nt e n&t io n& ! #t &t e'ie#: (nternational e<pansion strategies largely depend upon effective HR3. ?ith gro ing trends to ards global operations" the need for HR3 further becomes more important as the need to integrate HR3 more closely into the organization #eeps gro ing. $his is also because the process of meeting staffing needs from foreign countries gro s in a comple< manner. Fo +n6& t io n of %e #o nne! f+n) t io n#: HR3 provides essential information for designing and implementing personnel functions such as recruitment" selection" personnel development" training and development etc. I n) e& #in' in1e#t " ent # in H R: 5nother importance is the investment that an organization ma#es in human capital. (t is important that employees are used effectively throughout their careers. 0ecause human assets can increase the organization value tremendously as opposed to physical assets Re#i#t & n) e t o ) 8& n'e ( " o 1e: $he gro ing resistance to ards change and move" self evaluation" loyalty and dedication ma#ing it more difficult to assume that organization can move its employees every here. Here HR3 becomes very important and needs the resources to be planned carefully. Ot 8e ,enefit #: /ollo ing are the other benefits of HR3. +. @pper management has a better vie of HR dimensions of business ,. Management can anticipate imbalances before they become unmanageable and e<pensive. -. More time is provided to locate talent .. 0etter opportunities e<ists to include omen and minorities in future gro th plans 7. 0etter planning of assignments to develop managers 8. Major and successful demands on local labor mar#ets can be made. H R$ S< STEM HR3 !ystem as such includes follo ing elements or sets for planning. &verall &rganization &bjectives 0usiness :nvironment /orecasting Manpo er Heeds

5ssessing Manpo er !upply Matching Manpo er )emand*!upply factors 0ased on these elements e can dra HR3 !ystem 5rchitecture as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast

Manpower Supply Assessment

Manpower Programming Manpower mplementation !ontrol & Manpower Evaluation

Surplus Manpower

S"ortage o# Manpower


H R$ $ROCESS O '& ni2 &t io n& ! O,0e) t i1e# ( $o !i) ie#: $he objectives of HR plan must be derived from organizational objectives li#e specific requirements of numbers and characteristics of employees etc. HR3 needs to sub*serve the overall objectives by ensuring availability and utilization of human resources. !pecific policies need to be formulated to address the follo ing decisions. (nternal Hiring or :<ternal HiringD $raining 6 )evelopment plans @nion >onstraints 4ob enrichment issues Rightsizing organization 5utomation needs >ontinuous availability of adaptive and fle<ible or#force M & n%o 9e De" & n6 Fo e) & #t in': (t is the process of estimating the future quantity and quality of people required. $he basis should be annual budget and long term corporate plans )emand forecasting should be based on follo ing factors. Internal Factors: 0udget constraints 3roduction levels He products and services &rganizational structure :mployee separation External Factors: >ompetition environment :conomic climate 2a s and regulatory bodies $echnology changes !ocial /actors Reasons for Manpower Demand Forecasting: $o quantify jobs $o determine the !taff*mi< $o assess staffing levels and avoid unnecessary costs 3revent shortages of people Monitor compliances of legal requirements ith regards to reservations M&n%o9e Fo e)&#tin' Te)8niF+e#: M&n&'e"ent .+6'"ent: (n this techniques managers across all the levels decide the forecast on their o n judgment. $his can be bottom*up or top*do n approach and judgments can be revie ed across departments" divisions and top management can conclude on final numbers of manpo er required. R&tion-T en6 An&!*#i#: $his technique involves studying past ratios" and forecasting future ratios ma#ing some allo ance for changes in the organization or its methods. ;o 7 St+6* Te)8niF+e#: (t is possible hen or# measurement to calculate the length of operations and the amount of manpo er required. $he starting point can be production budget" follo ed by standard hours" output per hour; man*hours required etc could be computed. De!%8i Te)8niF+e#: $his technique solicits estimates from a group of e<perts" and HR3 e<perts normally act as intermediaries" summarizes various responses and report the findings bac# to e<perts.


F!o9 Mo6e!#: $his technique involves the flo of follo ing components. )etermine the time required" :stablish categories" >ount annual movements" :stimate probable transitions. Here demand is a function of replacing those ho ma#e a transition. M & n%o 9e S+%%!* Fo e) & #t in': -

$his process measures the number of people li#ely to be available from ithin and outside the organization after ma#ing allo ance for absenteeism" internal movements and promotions" astages" changes in hours and other conditions of or#. Reasons for Manpower Supply Forecasting: >larify !taff*mi<es e<ist in the future 5ssess e<isting staff levels 3revent shortages Monitor e<pected future compliance of legal requirements of job reservations Supply Analysis covers: E3i#tin' H+"&n Re#o+ )e#: HR 5udits facilitate analysis of e<isting employees ith s#ills and abilities. $he e<isting employees can be categorized as s#ills inventories Anon* managersB and managerial inventories AmanagersB S'ill inventory would include the following( 3ersonal data !#ills !pecial Iualifications !alary 4ob History >ompany data >apabilities !pecial preferences )anagement inventories would include the following ?or# History !trengths ?ea#nesses 3romotion 3otential >areer Coals 3ersonal )ata Humber and $ypes of !ubordinates $otal 0udget Managed 3revious Management )uties Internal Supply: (nternal supply techniques help to assess the follo ing (nflo s and outflo s Atransfers" promotions" separations" resignations" retirements etc.B $urnover rate AHo. &f separations p.a. G 5verage employees p.a. J +==B >onditions of or# A or#ing hours" overtime" etc.B 5bsenteeism Aleaves" absencesB 3roductivity level 4ob movements A4ob rotations or cross functional utilizationsB E3te n&! S+%%!*: :<ternal sources are required for follo ing reasons


He blood" He e<periences Replenish lost personnel &rganizational gro th )iversification :<ternal sources can be colleges and universities" consultants" competitors and unsolicited applications. H R $!& n I " %!e" ent & t io n: 5 series of action programs are initiated as a part of HR plan implementation as under. Re) +it " ent ( Se!e) t io n: :mployees are hired against the job vacancies. 0ased on the manpo er demand and supply forecasts made" hiring of employees is initiated based on supply forecasts. /or this internal and e<ternal sources of manpo er are utilized. 5 formal selection board is established to intervie and select the best of the candidates for the required vacancies. /inally the selected employees also need to be placed on proper jobs. Here some companies recruit employees for specific jobs hile others recruit fresh trainees in large number and train them for future manpo er needs. T & inin' & n6 De1e!o %" ent : $he training and development program is charted out to cover the number of trainees" e<isting staff etc. $he programs also cover the identification of resource personnel for conducting development program" frequency of training and development programs and budget allocation. Ret & inin' & n6 Re6e%!o *" ent G He s#ills are to be imparted to e<isting staff hen technology changes or product line discontinued. :mployees need to be redeployed to other departments here they could be gainfully employed. Ret ent io n $!& n: Retention plans cover actions" hich ould reduce avoidable separations of employees. @sing compensation plans" performance appraisals" avoiding conflicts" providing green pastures etc" can do this. Do 9n#i2 in' %!& n#: ?here there is surplus or#force trimming of labor force ill be necessary. /or these identifying and managing redundancies is very essential. M & n& 'e i& ! S+) ) e##io n $!& nnin'G Methods of managerial succession plans may vary. Most successful programs seem to include top managements involvement and commitment" high*level revie of succession plans" formal performance assessment and potential assessment and ritten development plans for individuals. 5 typical succession planning involves follo ing activities. 5nalysis of demand for managers and professionals 5udit of e<isting e<ecutives 3rojection of future li#ely supply from internal and e<ternal sources (ndividual career path planning >areer counseling 5ccelerated promotions 3erformance related training and development !trategic recruitment Co nt o ! ( E1& !+& t io n o f H R$: HR 3lan must also clarify responsibilities for control and establish reporting procedures" hich ill enable achievements to be monitored against the plan. $he HR 3lan should include budgets" targets and standards. $hese plans may simply be reports on the numbers employed" recruited against targets etc. SUCCESSION $5ANNING Me&nin' of S+))e##ion $!&nnin'


!uccession planning is the process or activities connected ith the succession of persons to fill #ey positions in the organization hierarchy as vacancies arise. $he focus of attention is to ards K hich' person the succession planning is needed. $he focus is not more on career development but it is more to ards hat #ind of person is required to fill the future vacancy. !uccession planning focuses on identification of vacancies and locating the probable successor. /or e<ample in succession planning the #ey concern can be ho ill be ne<t >:& or hat ill happen if the Mar#eting Manager retires in coming March. I"%o t&n)e of S+))e##ion $!&nnin' !uccession planning helps hen there is a sudden need arises due to reason or retirement of a #ey employee. (ndividual employee comes to #no in advance the level to hich he can rise if he has the ability and aptitude for it. (ndividual employee or successor feels happy hen he feels that organization is ta#ing care of his talents and aspirations. !uccession planning helps create loyalty to ards the organization and improved motivation and morale of individual employees. &rganization gains stable or#force and lo employee turnover. @ltimately organization becomes successful in accomplishing its goals effectively. CAREER $5ANNING >areer planning is the process or activities offered by the organization to individuals to identify strengths" ea#nesses" specific goals and jobs they ould li#e to occupy. >areer as a concept means a lifelong sequences of professional" educational and developmental e<periences that projects an individual through the orld of or#. (t is a sequence of positions occupied by a person during his life. >areer may also be defined as amalgamation of changes in values" attitudes and motivation that occurs as a person gro s older. (n career planning" organization is concerned ith strategic questions of career development. /urther the organization is concerned about if it should employ more graduates" more engineers" more scientists or more accountants etc. >areer planning provides picture of succession plan for employees as per organizational needs. (t focuses on the basis of performance" e<perience" could be placed here" hen and ho . >areer planning is a process of integrating the employees' needs and aspirations organizational requirements. O,0e)ti1e# of C& ee $!&nnin' +. ,. -. .. 7. 8. 0uild commitment in the individual )evelop long*range perspective Reduce personal turnover e<penses 2essen employee obsolescence :nsure organizational effectiveness 5llo individual to achieve personal and ith

or# related goals.

I"%o t&n)e of C& ee $!&nnin' >areer planning is important because it helps the individual to e<plore" choose and strive to derive satisfaction ith his o n career objectives.


. O-: 4ob is a Kgroup of tas#s to be performed everyday. .O- ANA5<SIS Definit io n 1: *+r o ce ss o f #o lle ctin g Info r matio n, 4ob 5nalysis is a process of studying and collecting information relating to operations and responsibilities of a specific job. $he immediate products of this analysis are K4ob )escription' and K4ob !pecifications'. Definit io n 2: *Syste mati c -.plo r atio n o f Activit ie s, 4ob 5nalysis is a systematic e<ploration of activities ithin a job. (t is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job. Definit io n 3: *Ide ntifyi ng /o b " e 0uir e me nts, 4ob is a collection of tas#s that can be performed by a single employee to contribute to the production of some product or service" provided by the organization. :ach job has certain ability requirements Aas ell as certain re ardsB associated ith it. 4ob 5nalysis is a process used to identify these requirements. M EA NI N G OF . O- A NA 5 < SI S 4ob 5nalysis is a process of collecting information about a job. $he process of job analysis results into t o sets of data. 4ob )escription 4ob !pecification 5s a result 4ob analysis involves the follo ing steps in a logical order. St eps o f o ! A na lysis +. >ollecting and recording job information ,. >hec#ing the job information for accuracy -. ?riting job description based on information collected to determine the s#ills" #no ledge" abilities and activities required .. @pdating and upgrading this information $UR$OSE OF . O- AN A 5< SI S: H +" & n Re#o + ) e $!& nnin' (H R$): * $he numbers and types of personnel are determined by the jobs" hich need to be staffed. 4ob related information in the form of 4ob 5nalysis serves this purpose or use. Re) +it " ent ( Se!e) t io n: * Recruitment precedes job analysis. (t helps HR to locate places to obtain employees. (t also helps in better continuity and planning in staffing in the organization. 5lso selecting a good candidate also requires detailed job information. 0ecause the objective of hiring is to match the right candidate for right job T & inin' ( De1e!o %" ent : $raining and development programs can be designed depending upon job requirement and analysis. !election of trainees is also facilitated by job analysis. . o, E1& !+& t io n: 4ob evaluation means determination of relative orth of each job for the purpose of establishing age and salary credentials. $his is possible ith the help of job description and specifications; i.e. 4ob 5nalysis.


Re" +ne & t io n: 4ob analysis also helps in determining age and salary for all jobs. $e fo " & n) e A%% & i#& !: 3erformance appraisal" assessments" re ards" promotions" is facilitated by job analysis by ay of fi<ing standards of job performance. $e #o nne! I nfo " & t io n: 4ob analysis is vital for building personnel information systems and processes for improving administrative efficiency and providing decision support. S& fet * ( H e& !t 8: 4ob 5nalysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be ta#en to minimize and avoid possibility of human injury. $ROCESS OF . O- AN A 5< SI S $ $ $ $ $ o)e## o)e## o)e## o)e## o)e## 1: 2: 3: :: =: !trategic >hoices >ollecting (nformation 3rocessing (nformation 4ob )escription 4ob !pecification

St & t e'i) C8o i) e#: Ex t ent o f invo lv em ent o f em plo yees: :<tent of employee involvement is a debatable point. $oo much involvement may result in bias in favor of a job in terms of inflating duties and responsibilities. $oo less involvement leads to suspicion about the motives behind the job. 0esides it may also lead to inaccurate information. Hence e<tent of involvement depends on the needs of the organization and employee. " ev el o f det a ils o f #o! a na lysis: $he nature of jobs being analyzed determines the level of details in job analysis. (f the purpose ere for training programs or assessing the orth of job" levels of details required ould be great. (f the purpose is just clarification the details required ould be less. $im ing a nd fr e%uenc y o f o! Ana lysis: ?hen do you do 4ob 5nalysisD (nitial stage" for ne organization He 4ob is created >hanges in 4ob" $echnology and 3rocesses )eficiencies and )isparities in 4ob He compensation plan is introduced @pdating and upgrading is required. &a st -o r ient ed a nd fut ur e-o r ient ed o ! A na lysis: /or rapidly changing organization more future oriented approach ould be desired. /or traditional organizations past oriented analysis ould be required. Ho ever more future oriented analysis may be derived based on past data. So ur c es of o ! Dat a : /or job analysis number of human and non*human sources is available besides jobholder himself. /ollo ing can be sources of data available for job analysis. N o n-H +" & n So + ) e# H +" & n So + ) e# :<isting job descriptions and 4ob 5nalysis specifications 4ob (ncumbents :quipment maintenance records !upervisors :quipment design blueprints 4ob :<perts 5rchitectural blueprints of or# area /ilms of employee or#ing $raining manuals and materials Magazines" ne spapers" literatures Co !!e) t in' I nfo " & t io n: (nformation collection is done on the basis of follo ing - parameters



of !ata for /ob Analysis1 ?or# 5ctivities A$as#s detailsB (nterface ith other jobs and equipments A3rocedures" 0ehaviors" MovementsB Machines" $ools" :quipments and ?or# 5ids A2ist" Materials" 3roducts" !ervicesB 4ob >onte<t A3hysical" !ocial" &rganizational" ?or# scheduleB 3ersonal Requirement A!#ills" :ducation" $raining" :<perienceB

)ethods of !ata #ollection1 &bservation (ntervie Iuestionnaires >hec#lists $echnical >onference )iary Methods 2ho to #ollect !ata3 $rained 4ob 5nalysts !upervisors 4ob (ncumbents $ o ) e##in' I nfo "& t io n: &nce the job information is collected it needs to be processed" so that it ould be useful in various personnel functions. !pecifically job related data ould be useful to prepare job description and specifications" hich form the ne<t t o processes of job analysis. M ETH ODS OF DA TA CO5 5 ECTI ON : '!ser v a t io n: 4ob 5nalyst carefully observes the jobholder and records the information in terms of hat" ho the job is done and ho much time is ta#en. (t is a simple and accurate method" but is also time consuming and inapplicable to jobs involving mental activities and unobservable job cycles. $he analysts must be fully trained observers. I nt er v iew: (n this analyst intervie s the jobholders" his supervisors to elicit information. (t can be !tructured or @nstructured (ntervie . 5gain this is also a time consuming method in case of large organizations. 3lus there is also a problem of bias. (uest io nna ir es: 5 standard questionnaire is given to jobholder about his job" hich can be filled and given bac# to supervisors or job analysts. $he questionnaire may contain job title" jobholder's name" managers name" reporting staff" description of job" list of main duties and responsibilities etc. (t is useful in large number of staffs and less time consuming. Ho ever the accuracy of information leaves much to be desired. )*ec +list s : (t is more similar to questionnaire but the response sheet contains fe er subjective judgments and tends to be either yes or no variety. 3reparation of chec#list is a challenging job itself. $ec *nic a l )o nfer enc e: Here a conference of supervisors is used. $he analysts initiate the discussions providing job details. Ho ever this method lac#s accuracy. Dia r y M et *o ds: (n this method jobholder is required to note do n their activities day by day in their diary. (f done faithfully this technique is accurate and eliminates errors caused by memory lapses etc. H+& nt it &t i1e M et 8o 6# o f . o, D& t & Co !!e) t io n: $o #it io n A n& !*#i# H+e#t io nn& i e ($A H): 35I is a highly specialized instrument for analyzing any job in terms of employee activities. $he 35I contains +;. job elements on hich job is created depending on the degree to hich an element is present. $hese elements are grouped together into 8 categories. +. @ % @sability G @se of 4ob


,. -. .. 7. 8.

( % (mportance of 4ob $ % $ime 3 % 3ossibility of &ccurrence of 4ob 5 % 5pplicability of 4ob ! % !pecialty $as#s of 4ob

$he primary advantage of 35I is that it can be used to analyze almost every job. $his analysis provides a comparison of a specific job ith other job classifications" particularly for selection and remuneration purposes. Ho ever 35I needs to be completed by trained job analysts only rather than incumbents. M & n& 'e" ent $o #it io n De#) i%t io n H+e#t io nn& i e (M $DH): Highly structured questionnaire" containing ,=9 elements relating to managerial responsibilities" demand" restrictions and other position characteristics $hese ,=9 elements are grouped under +- categories. 35I and M3)I yie ld standar diz e d info r matio n abo ut the F+n) t io n& ! . o , A n& !*#i#: (t is a or #e r o r ie nte d jo b analytical appr o ach" the ho le pe r so n o n the jo b. -A RRI ERS OF . O- A NA 5< SI S !upport from $op Management !ingle means and source" reliance on single method rather than combination Ho $raining or Motivation to 4obholders 5ctivities and )ata may be )istorted or #e r and the jo b.

hich atte mpts to de scr ibe


4ob )escription implies objective listing of the job title" tas#s" and responsibilities involved in a job. 4ob description is a ord picture in riting of the duties" responsibilities and organizational relationships that constitutes a given job or position. (t defines continuing or# assignment and a scope of responsibility that are sufficiently different from those of the other jobs to arrant a specific title. 4ob description is a broad statement of purpose" scope" duties and responsibilities of a particular job. Content# of .o, De#) i%tion +. 4ob (dentification ,. 4ob !ummary -. 4ob )uties and Responsibilities .. !upervision specification 7. Machines" tools and materials 8. ?or# conditions 1. ?or# hazards 9. )efinition of unusual terms Fo "&t of .o, De#) i%tion 4ob $itle RegionG2ocation )epartment Reporting to A&perational and ManagerialB &bjective 3rincipal duties and responsibilities

Fe& t + e# o f Goo 6 .o , De#) i%t io n +. @p to date ,. 3roper 4ob $itle -. >omprehensive 4ob !ummary .. >lear duties and responsibilities 7. :asily understandable 8. !tate job requirements 1. !pecify reporting relationships 9. !ho case degrees of difficulties ;. (ndicates opportunities for career development +=. &ffer bird's*eye*vie of primary responsibilities


4ob !pecification involves listing of employee qualifications" s#ills and abilities required to meet the job description. $hese specifications are needed to do job satisfactorily. (n other ords it is a statement of minimum and acceptable human qualities necessary to perform job properly. 4ob specifications see#s to indicate hat #ind of persons may be e<pected to most closely appro<imate the role requirements and thus it is basically concerned ith matters of selection" screening and placement and is intended to serve as a guide in hiring. Content# of .o, S%e)ifi)&tion# +. 3hysical >haracteristics ,. 3sychological characteristics -. 3ersonal characteristics .. Responsibilities 7. )emographic features /urther the job specifications can be divided into three broad categories -ssential Attributes !esirable Attributes #ontra4Indicators 5 indicators hampering the success of $ob


4ob :valuation involves determination of relative orth of each job for the purpose of establishing age and salary differentials. Relative orth is determined mainly on the basis of job description and job specification only. 4ob :valuation helps to determine ages and salary grades for all jobs. :mployees need to be compensated depending on the grades of jobs hich they occupy. Remuneration also involves fringe benefits" bonus and other benefits. >learly remuneration must be based on the relative orth of each job. (gnoring this basic principle results in inequitable compensation. 5 perception of inequity is a sure ay of de*motivating an employee. 4ob evaluation is a process of analyzing and assessing the various jobs systematically to ascertain their relative orth in an organization. 4obs are evaluated on the basis of content" placed in order of importance. $his establishes 4ob Hierarchies" hich is a purpose of fi<ation of satisfactory age differentials among various jobs. 4obs are ran#ed Anot jobholdersB S)o%e of .o, E1&!+&tion $he job evaluation is done for the purpose of age and salary differentials" demand for and supply of labor" ability to pay" industrial parity" collective bargaining and the li#e. $ o)e## of .o, E1&!+&tion: +. )efining objectives of job evaluation a. (dentify jobs to be evaluated A0enchmar# jobs or all jobsB b. ?ho should evaluate jobD c. ?hat training do the evaluators needD d. Ho much time involvedD e. ?hat are the criteria for evaluationD f. Methods of evaluation to be used ,. ?age !urvey -. :mployee >lassification .. :stablishing age and salary differentials. Met8o6# of .o, E1&!+&tion An&!*ti)&! Met8o6# $oint R&n7in' Met8o6#E )ifferent factors are selected for different jobs ith accompanying differences in degrees and points. F&)to Co"%& i#on Met8o6: $he important factors are selected hich can be assumed to be common to all jobs. :ach of these factors are then ran#ed ith other jobs. $he orth of the job is then ta#en by adding together all the point values. Non-An&!*ti)&! Met8o6# R&n7in' Met8o6: 4obs are ran#ed on the basis of its title or contents. 4ob is not bro#en do n into factors etc. .o, G &6in' Met8o6: (t is based on the job as a hole and the differentiation is made


on the basis of job classes and grades. (n this method it is important to form a grade description to cover discernible differences in s#ills" responsibilities and other characteristics.

$itf&!!# of .o, E1&!+&tion: :ncourages employees on ho to advance in position hen there may be limited opportunities for enhancement as a result of do nsizing. (t promotes internal focus instead of customer orientation Hot suitable for for ard loo#ing organizations" hich has trimmed multiple job titles into t o or three broad jobs.


$he 2ogical !equence to 4ob 5nalysis is 4ob )esign. Definit io n 1: Inte gr atio n o f wo r ' , r ew ar ds and 0ualifica tio n 4ob )esign integrates or# content Atas#s" functions" relationshipsB" the re ards and qualifications required including s#ills" #no ledge and abilities for each job in a ay that meets the needs of employees and the organization. St e%# in . o, +. !pecification ,. !pecification -. >ombination De#i'n: of (ndividual $as#s of Methods of $as#s 3erformance of $as#s into !pecific 4obs to be assigned to individuals

F& ) to # & ffe) t in' . o, De#i'n: O '& ni2 &t io n& ! f& ) t o #: >haracteristics of $as#s A3lanning" :<ecution and >ontrolling of $as#B ?or# /lo A3rocess !equencesB :rgonomics A$ime 6 Motion !tudyB ?or# 3ractices A!et of ays of performing tas#sB En1i o n" ent & ! F& )t o #: :mployee 5bilities and 5vailability !ocial and >ultural :<pectations -e8& 1io & ! E!e" ent #: /eedbac# 5utonomy @se of 5bilities Lariety TECH N I HUES OF . O- DESI GN : ; o 7 Si" %!ifi) & t io n: 4ob is simplified or specialized. $he job is bro#en do n into small parts and each part is assigned to an individual. $o be more specific" or# simplification is mechanical pacing of or#" repetitive or# processes" or#ing only on one part of a product" predetermining tools and techniques" restricting interaction amongst employees" fe s#ills requirement. ?or# simplification is used hen jobs are not specialized. . o, Ro t &t io n: ?hen incumbents become bore of routine jobs" job rotation is an ans er to it. Here jobs remain unchanged" but the incumbents shift from one job to another. &n the positive side" it increases the intrinsic re ard potential of a job because of different s#ills and abilities needed to perform it. ?or#ers become more competent in several jobs" #no variety of jobs and improve the self*image" personal gro th. /urther the or#er becomes more valuable to the organization. 3eriodic job changes can improve interdepartmental cooperation. &n the negative side" it may not be much enthusiastic or efficiency may not be more. 0esides jobs may not improve the relationships bet een tas#" hile activities and objectives remain unchanged. /urther training costs also rise and it can


also de*motivate intelligent and ambitious trainees chosen specialties.

ho see# specific responsibilities in their

. o, En!& 'e" ent : (t means e<panding the number of tas#s" or duties assigned to a given job. 4ob enlargement is naturally opposite to or# simplification. 5dding more tas#s or duties to a job does not mean that ne s#ills and abilities are needed. $here is only horizontal e<pansion. (t is ith same s#ills ta#ing additional responsibilities li#e e<tending or#ing hours etc. 4ob enlargement may involve brea#ing up of the e<isting or# system and redesigning a ne or# system. /or this employees also need to be trained to adjust to the ne system. 4ob enlargement is said to contribute to employee motivation but the claim is not validated in practice. ,enefits of o! Enlargement: +. $as# Lariety ,. Meaningful ?or# Modules -. /ull 5bility @tilization .. ?or#er 3aced >ontrol 7. Meaningful 3erformance /eedbac# Disadvantages of o! Enlargement +. High $raining >osts ,. Redesigning e<isting or# system required -. 3roductivity may not increase necessarily .. ?or#load increases 7. @nions demand pay%hi#e 8. 4obs may still remain boring and routine . o, En i) 8" ent : 4ob enrichment is improvisation of both tas#s efficiency and human satisfaction by building into people's jobs" quite specifically" greater scope for personal achievement and recognition" more challenging and responsible or# and more opportunity for individual advancement and gro th. 5n enriched job ill have more responsibility" more autonomy Avertical enrichmentB" more variety of tas#s Ahorizontal enrichmentB and more gro th opportunities. $he employee does more planning and controlling ith less supervision but more self*evaluation. (n other ords" transferring some of the supervisor's tas#s to the employee and ma#ing his job enriched. -enefit # o f . o, en i) 8" ent +. (t benefits employee and organization in terms of increased motivation" performance" satisfaction" job involvement and reduced absenteeism. ,. 5dditional features in job meet certain psychological needs of jobholders due to s#ill variety" identity" significance of job etc. -. (t also adds to employee self*esteem and self*control. .. 4ob enrichment gives status to jobholder and acts as a strong satisfier in one's life. 7. 4ob enrichment stimulates improvements in other areas of organization. 8. :mpo erment is a by*product of job enrichment. (t means passing on more authority and responsibility. De" e it # o f .o , En i) 8" ent +. 2azy employees may not be able to ta#e additional responsibilities and po er. (t on't fetch the desired results for an employee ho is not attentive to ards his job. ,. @nions resistance" increased cost of design and implementation and limited research on long term effect of job enrichment are some of the other demerits. -. 4ob enrichment itself might not be a great motivator since it is job*intrinsic factor. 5s per the t o*factor motivation theory" job enrichment is not enough. (t should be


preceded by hygienic factors etc. .. 4ob enrichment assumes that or#ers ant more responsibilities and those or#ers ho are motivated by less responsibility" job enrichment surely de*motivates them 7. ?or#ers participation may affect the enrichment process itself. 8. >hange is difficult to implement and is al ays resisted as job enrichment brings in a changes the responsibility. A +to no " o +# o f Se!f- Di e) t e6 Te& " #: :mpo erment results in self*directed or# teams. 5 self %directed team is an intact group of employees responsible for hole or# segment" they or# together" handle day*to*day problems" plan and control" and are highly effective teams. H i'8 $e fo " & n) e ;o 7 De#i'n: (mproving performance in an environment here positive and demanding goals are set leads to high performance or# design. (t starts from the principle of autonomous groups or#ing and developing an approach" hich enables group to or# effectively together in situations here the rate of innovation is very high. &perational fle<ibility is important and there is the need for employees to gain and apply ne s#ills quic#ly ith minimum supervision. Ho ever due to bureaucracy high performance or# design does not or#.



$he concept of motivating jobs relates to 4ob design. 4ob design affects employee productivity" motivation and satisfaction. 4ob design is a conscious effort to organize tas#s" duties and responsibilities into a unit of or# to achieve certain objectives. Ho a job design creates a motivating job can be seen ith the help of certain components of job design" namely" job rotation" job enlargement" job enrichment" or# simplification etc. ?or# simplification simplifies the job by brea#ing do n the job into small parts. !implified jobs are easy to perform hence employees find it easy to do. $raining requirements are reduced and it benefits the organizations in terms of cost. 4ob rotation means movement of employees of job to job across the organization. (t improves the intrinsic re ard potential of a job because of different s#ills and abilities are needed to perform a job. ?or#ers become more competent in several jobs rather than only one. (t also improves or#ers self image" provides personal gro th and ma#es or#ers more valuable to the organization. 3eriodic job change can improve inter*departmental cooperation. :mployees become more understanding to each other's problems. >onsequently it provides a high level of motivation to employees because jobs itself become motivators. Hence job rotation helps the job become more motivating. 4ob enlargement involves e<panding number of tas#s or duties assigned to a given job. 4ob enrichment involves improving tas# efficiency and human satisfaction. 4ob enrichment provides greater scope for personal achievement and recognition" more challenging and responsible or# and more opportunity for individual advancement and gro th. 5n enriched job gives vertical enrichment in the form of more responsibility and autonomy and a horizontal enrichment in the form of variety of tas#s and more gro th opportunities. $he employee does more planning and controlling ith less supervision but more self* evaluation. 5ll these factors lead to increased level of motivation and hence ma#e the jobs more motivated. >onsidering above e<amples" e can say that designing jobs is actually using the relevant and right techniques of job design" li#e rotation" enrichment" simplifications and ma#e the jobs more motivating to perform. !o e can say that )esigning 4obs is actually creating Motivated 4obs.


4ob satisfaction is the result of various attitudes possessed by an employee to ards his job" related factors and life in general. $he attitudes related to job may be ages" supervision" steadiness" or#ing conditions" advancement opportunities" recognitions" fair evaluation of or#" social relations on job" prompt settlement of grievances etc. (n short job satisfaction is a general attitude" hich is the result of many specific attitudes in three areas namely" job factors" individual characteristics and group relationships outside the job. Co"%onent# of .o, S&ti#f&)tion $e #on&! f&)to #: !e<" )ependents" 5ge" $imings" (ntelligence" :ducation and 3ersonality. .o, in8e ent f&)to #: $ype of or#" !#ills" &ccupational status" Ceography" !ize of plant

M&n&'e"ent )ont o!!e6 f&)to #: !ecurity" 3ayment" /ringe benefits" 5dvancement opportunities and ?or#ing conditions" >o* or#ers" Responsibilities" !upervision .o, S&ti#f&)tion ( -e8&1io !atisfaction !atisfaction !atisfaction !atisfaction 6 6 6 6 $urnover 5bsenteeism 5ccidents 4ob 3erformance e!&tion#8i% i# 6e#) i,e6 t8 o+'8 fo!!o9in' e3&"%!e#>


Definition 1: )easuring and 0uantifying activities M5 measurement technique for the quantitative analysis of non*repetitive or irregularly occurring activity.M Me&nin' of ;o 7 S&"%!in' ?or# sampling is based on the theory that the percentage of the number of observations on a particular activity is a reliable measure of the percentage of the total actual time spent on that activity. ?or# sampling operates by an observer ta#ing a series of random observations on a particular MthingM of interest Amachine" operating room" doc#" etc.B to observe its MstateM A or#ing" idle" sleeping" empty" etc.B. ?hen enough samples are ta#en" an analysis of the observations yields a statistically valid indication of the states for each thing analyzed. 5ssume" for e<ample" that you ish to determine the proportion of time a factory operator is or#ing or idle. 5lso assume that ,== random observations ere made of the operator and during ,. of these he or she as observed to be idle. $herefore" you find that the individual is or#ing +18G,== N 99O of the time. A61&nt&'e# of ;o 7 S&"%!in' (t is relatively ine<pensive to use and e<tremely helpful in providing a deeper understanding of all types of operations. ?hen properly used" it can help pinpoint those areas" hich should be analyzed in" further detail and can serve as a measure of the progress being made in improving operations. H+e#tion# of 9o 7 #&"%!in' #t+6* ?hat is our equipmentGasset utilizationD ?hen e are not adding value to the product" ho are e spending our timeD Ho are our inter*dependent systems performingD ?here should e focus our continuous improvement activitiesD

Di#tin)tion ,et9een ;o 7 #&"%!in' &n6 JTi"e St+6ie#J ?or# sampling is lo er cost because it uses random samples instead of continuous observations. Many operators or machines can be studied by a single observer ?or# sampling can span several days or ee#s" thus minimizing the effects of day to day load or equipment variations ?or# !ampling tends to minimize operator behavior modification during observation. ?or# !ampling" in general" does not require a trained time*study analyst to ta#e the observations. 5lso" stop atches or other timing devices are not required. Many studies ma#e use of off*shift technicians or operators to ta#e the observations.


;o 7 #&"%!in' Met8o6o!o'* 5n analyst R5H)&M2P observes an activity Aequipment" operating room" production lineB and notes the particular states of the activity at each observation. $he ratio of the number of observations of a given state of the activity to the total number of observations ta#en ill appro<imate the percentage of time that the activity is in that given state. Hote that random observations are very critical for a or# sampling study. 5 brief e<ample might be that 11 of +== observations sho ed a machine to be running. ?e might then conclude" ithin certain statistical limits" that the equipment is operational 11O of the time.


RECRUI TM EN T Definit io n Of Re) +it " ent : 6ind ing and Attr acting Applica tio ns Recruitment is the 3rocess of finding and attracting capable applicants for employment. $he 3rocess begins hen ne recruits are sought and ends hen their applications are submitted. $he result is a pool of application from hich ne employees are selected. M EA NI N G OF RECRUI TM EN T: Recruitment is understood as the process of searching for and obtaining applicants for jobs" from among them the right people can be selected. $hough theoretically recruitment process is said to end ith the receipt of applications" in practice the activity e<tends to the screening of applications so as to eliminate those ho are not qualified for the job. $UR$OSE AN D I M $ORTA N CE OF RECRUI TM EN T: +. )etermine the present and future requirements in conjunction ith personnel planning and job analysis activities ,. (ncrease the pool of job candidates at minimum cost -. Help increase success rate of selection process by reducing number of under*qualified or over*qualified applications. .. Reduce the probability that job applicants once selected ould leave shortly 7. Meet legal and social obligations 8. (dentify and prepare potential job applicants 1. :valuate effectiveness of various recruitment techniques and sources for job applicants. FA CTORS GO/ERN I N G RECRUI TM EN T E3te n&! F&)to #: )emand and !upply A!pecific !#illsB @nemployment Rate A5rea* iseB 2abor Mar#et >onditions 3olitical and 2egal :nvironment AReservations" 2abor la sB (mage Inte n&! F&)to # Recruitment 3olicy A(nternal Hiring or :<ternal HiringDB Human Resource 3lanning A3lanning of resources requiredB !ize of the &rganization A0igger the size lesser the recruitment problemsB >ost Cro th and :<pansion 3lans RECRUI TM EN T $ROCESS Re) +it"ent $!&nnin' Humber of contacts $ypes of contacts Re) +it"ent St &te'* De1e!o%"ent Ma#e or 0uy :mployees $echnological !ophistication ?here to loo# Ho to loo#


Inte n&! Re) +it"ent (So+ )e 1) 3resent employees :mployee referrals $ransfers 6 3romotions /ormer :mployees 3revious 5pplicants :valuation of (nternal Recruitment E3te n&! Re) +it"ent (So+ )e 2) 3rofessionals or $rade 5ssociations 5dvertisements :mployment :<changes >ampus Recruitment ?al#*ins (ntervie s >onsultants >ontractors )isplaced 3ersons Radio 6 $elevision 5cquisitions 6 Mergers >ompetitors :valuation of :<ternal Recruitment Se& )8in' !ource activation !elling !creening of 5pplications E1&!+&tion &n6 Co#t Cont o! !alary >ost Management 6 3rofessional $ime spent 5dvertisement >ost 3roducing !upporting literature Recruitment &verheads and :<penses >ost of &vertime and &utsourcing >onsultant's fees E1&!+&tion of Re) +it"ent $ o)e## Return rate of applications sent out !uitable >andidates for selection Retention and 3erformance of selected candidates Recruitment >ost $ime lapsed data (mage projection IN TERN A 5 RECRUI TM EN T A 61& nt& 'e# Di#& 61& nt & 'e# +. 2ess >ostly +. &ld concept of doing things ,. >andidates already oriented to ards ,. (t abets raiding organization -. >andidates current or# may be -. &rganizations have better #no ledge affected about internal candidates .. 3olitics play greater roles .. :mployee morale and motivation is 7. Morale problem for those not enhanced promoted.

EXTERN A 5 RECRUI TM EN T A 61& nt& 'e# Di#& 61& nt & 'e# +. 0enefits of ne s#ills and talents +. 0etter morale and motivation


,. 0enefits of ne e<periences -. >ompliance ith reservation policy becomes easy .. !cope for resentment" jealousies" and heartburn are avoided. SE5 ECTI ON : M EA NI N G OF SE5 ECTI ON :

associated ith internal recruiting is denied ,. (t is costly method -. >hances of creeping in false positive and false negative errors .. 5djustment of ne employees ta#es longer time.

!election is the process of pic#ing up individuals Aout of the pool of job applicantsB ith requisite qualifications and competence to fill jobs in the organization. 5 formal definition of !election is as under Definit io n o f Se!e) t io n: +r o ce ss o f diffe r e ntiat ing !election is the process of differentiating bet een applicants in order to identify and hire those ith a greater li#elihood of success in a job. DI FFEREN CE -ET; EEN RECRUI TM EN T A N D SE5 ECTI ON : Re) +it"ent +. Recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs. ,. Recruitment is said to be positive in its approach as it see#s to attract as many candidates as possible. Se!e)tion +. !election is concerned ith pic#ing up the right candidates from a pool of applicants. ,. !election on the other hand is negative in its application in as much as it see#s to eliminate as many unqualified applicants as possible in order to identify the right candidates.

$ROCESS E STE$S I N SE5 ECTI ON +. $ e!i" in& * Int e 1ie9: $he purpose of preliminary intervie s is basically to eliminate unqualified applications based on information supplied in application forms. $he basic objective is to reject misfits. &n the other hands preliminary intervie s is often called a courtesy intervie and is a good public relations e<ercise. ,. Se!e) t io n Te#t #: 4obsee#ers ho past the preliminary intervie s are called for tests. $here are various types of tests conducted depending upon the jobs and the company. $hese tests can be 5ptitude $ests" 3ersonality $ests" and 5bility $ests and are conducted to judge ho ell an individual can perform tas#s related to the job. 0esides this there are some other tests also li#e (nterest $ests Aactivity preferencesB" Craphology $est AHand ritingB" Medical $ests" 3sychometric $ests etc. -. E" %!o *" ent I nt e 1ie9: $he ne<t step in selection is employment intervie . Here intervie is a formal and in*depth conversation bet een applicant's acceptability. (t is considered to be an e<cellent selection device. (ntervie s can be &ne*to*&ne" 3anel (ntervie " or !equential (ntervie s. 0esides there can be !tructured and @nstructured intervie s" 0ehavioral (ntervie s" !tress (ntervie s. .. Refe en) e ( -& ) 7' o +n6 C8e) 7#: Reference chec#s and bac#ground chec#s are conducted to verify the information provided by the candidates. Reference chec#s can be through formal letters" telephone conversations. Ho ever it is merely a formality and selections decisions are seldom affected by it. 7. Se!e) t io n De) i#io n: 5fter obtaining all the information" the most critical step is the selection decision is to be made. $he final decision has to be made out of applicants ho have passed preliminary intervie s" tests" final intervie s and reference chec#s. $he vie s


of line managers are considered generally because it is the line manager ho is responsible for the performance of the ne employee. 8. $8*#i) & ! E3 & " in& t io n: 5fter the selection decision is made" the candidate is required to undergo a physical fitness test. 5 job offer is often contingent upon the candidate passing the physical e<amination. 1. . o, Offe : $he ne<t step in selection process is job offer to those applicants ho have crossed all the previous hurdles. (t is made by ay of letter of appointment. 9. Co nt &) t o f E" %!o *" ent : 5fter the job offer is made and candidates accept the offer" certain documents need to be e<ecuted by the employer and the candidate. Here is a need to prepare a formal contract of employment" containing ritten contractual terms of employment etc. ESSEN TI A 5 S OF A GOOD SE5 ECTI ON $RA CTI CE +. )etailed job descriptions and job specifications prepared in advance and endorsed by personnel and line management ,. $rained the selectors -. )etermine aids to be used for selection process .. >hec# competence of recruitment consultants before retention 7. (nvolve line managers at all stages 8. 5ttempt to validate the procedure 1. Help the appointed candidate to succeed by training and management development -A RRI ERS TO EFFECTI /E SE5 ECTI ON : +. $e ) e%t io n: ?e all perceive the orld differently. &ur limited perceptual ability is obviously a stumbling bloc# to the objective and rational selection of people. ,. F& i ne##: 0arriers of fairness includes discrimination against religion" region" race or gender etc. -. /& !i6it *: 5 test that has been validated can differentiate bet een the employees ho can perform ell and those ho ill not. Ho ever it does not predict the job success accurately. .. Re!i& ,i!it *: 5 reliable test may fail to predict job performance ith precision. 7. $ e##+ e: 3ressure brought on selectors by politicians" bureaucrats" relatives" friends and peers to select particular candidate are also barriers to selection.


Definit io n 7%raining 8 performance changing the o f T & inin' ( De1e!o %" ent : Impr o ve per fo r mance !evelopment is any attempt to improve current or future employee by increasing an employee's ability to perform through learning" usually by employee's attitude or increasing his or her s#ills and #no ledge.

M EA NI N G OF TRA I NI N G ( DE/E5 O$M EN T: $he need for $raining and )evelopment is determined by the employee's performance deficiency" computed as follo s. $raining 6 )evelopment Heed N !tandard 3erformance % 5ctual 3erformance ?e can ma#e a distinction among $raining" )evelopment and :ducation. Di#t in) t io n ,et 9een T & inin' & n6 E6+) & t io n T &inin' 5pplication oriented 4ob e<perience !pecific $as# in mind Harro 3erspective $raining is 4ob !pecific E6+)&tion $heoretical &rientation >lassroom learning >overs general concepts Has 0road 3erspective :ducation is no bar

T &inin': $raining refers to the process of imparting specific s#ills. 5n employee undergoing training is presumed to have had some formal education. Ho training program is complete ithout an element of education. Hence e can say that $raining is offered to operatives. E6+)&tion: (t is a theoretical learning in classrooms. $he purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. $hat any training and development program must contain an element of education is ell understood by HR !pecialists. 5ny such program has university professors as resource persons to enlighten participants about theoretical #no ledge of the topics proposed to discuss. (n fact organizations depute or encourage employees to do courses on part time basis. >:&s are #no n to attend refresher courses conducted by business schools. $he education is more important for managers and e<ecutives rather than lo cadre or#ers. 5ny ays education is common to all employees" their grades not ithstanding. De1e!o%"ent: )evelopment means those learning opportunities designed to help employees to gro . )evelopment is not primarily s#ills oriented. (nstead it provides the general #no ledge and attitudes" hich ill be helpful to employers in higher positions. :fforts to ards development often depend on personal drive and ambition. )evelopment activities such as those supplied by management development programs are generally voluntary in nature. )evelopment provides #no ledge about business environment" management principles and techniques" human relations" specific industry analysis and the li#e is useful for better management of a company.


O,0e)ti1e# of (MD$) M&n&'e"ent De1e!o%"ent $ o' &"# OR A61&nt&'e# of De1e!o%"ent +. ,. -. .. 7. 8. Ma#ing them !elf*starters >ommitted Motivated Result oriented !ensitive to environment @nderstand use of po er >reating self a areness )evelop inspiring leadership styles (nstill zest for e<cellence $each them about effective communication $o subordinate their functional loyalties to the interests of the organization

Diffe en)e ,et9een T &inin' &n6 De1e!o%"ent T &inin' $raining is s#ills focused $raining is presumed to have a formal education $raining needs depend upon lac# or deficiency in s#ills $rainings are generally need based $raining is a narro er concept focused on job related s#ills $raining may not include development $raining is aimed at improving related efficiency and performance ;8&t & e t8e T &inin' In%+t#A !#ills :ducation )evelopment :thics 3roblem !olving !#ills )ecision Ma#ing 5ttitudinal >hanges I"%o t&n)e of T &inin' ( De1e!o%"ent Helps remove performance deficiencies in employees Creater stability" fle<ibility and capacity for gro th in an organization 5ccidents" scraps and damages to machinery can be avoided !erves as effective source of recruitment job De1e!o%"ent )evelopment is creating learning abilities )evelopment is not education dependent )evelopment depends on personal drive and ambition )evelopment is voluntary )evelopment is a broader concept focused on personality development )evelopment includes training herever necessary )evelopment aims at overall personal effectiveness including job efficiencies


(t is an investment in HR ith a promise of better returns in future Reduces dissatisfaction" absenteeism" complaints and turnover of employees

Nee6 of T &inin' In6i1i6+&! !e1e! )iagnosis of present problems and future challenges (mprove individual performance or fi< up performance deficiency (mprove s#ills or #no ledge or any other problem $o anticipate future s#ill*needs and prepare employee to handle more challenging tas#s $o prepare for possible job transfers G o+% !e1e! $o face any change in organization strategy at group levels ?hen ne products and services are launched $o avoid scraps and accident rates I6entifi)&tion of T &inin' Nee6# (Met8o6#) In6i1i6+&! T &inin' Nee6# I6entifi)&tion +. ,. -. .. 7. 8. 1. 3erformance 5ppraisals (ntervie s Iuestionnaires 5ttitude !urveys $raining 3rogress /eedbac# ?or# !ampling Rating !cales

G o+% 5e1e! T &inin' Nee6# I6entifi)&tion +. ,. -. .. 7. 8. 1. 9. ;. &rganizational Coals and &bjectives 3ersonnel G !#ills (nventories &rganizational >limate (ndices :fficiency (ndices :<it (ntervie s M0& G ?or# 3lanning !ystems Iuality >ircles >ustomer !atisfaction !urvey 5nalysis of >urrent and 5nticipated >hanges

-enefit# of T &inin' Nee6# I6entifi)&tion +. ,. -. .. $rainers can be informed about the broader needs in advance $rainers 3erception Caps can be reduced bet een employees and their supervisors $rainers can design course inputs closer to the specific needs of the participants )iagnosis of causes of performance deficiencies can be done

Met8o6# of T &inin' On t8e .o, T &inin'#: $hese methods are generally applied on the employees is actually or#ing. /ollo ing are the on*the*job methods. A61&nt&'e# of On-t8e-.o, T &inin': (t is directly in the conte<t of job (t is often informal (t is most effective because it is learning by e<perience (t is least e<pensive or#place hile


$rainees are highly motivated (t is free from artificial classroom situations Di#&61&nt&'e# of On-t8e-.o, T &inin': $rainer may not be e<perienced enough to train (t is not systematically organized 3oorly conducted programs may create safety hazards

On t8e .o, T &inin' Met8o6# +. .o, Rot&tion: (n this method" usually employees are put on different jobs turn by turn here they learn all sorts of jobs of various departments. $he objective is to give a comprehensive a areness about the jobs of different departments. 5dvantage % employee gets to #no ho his o n and other departments also function. (nterdepartmental coordination can be improved" instills team spirit. )isadvantage % (t may become too much for an employee to learn. (t is not focused on employees o n job responsibilities. :mployees basic talents may remain under utilized. ,. .o, Co&)8in': 5n e<perienced employee can give a verbal presentation to e<plain the nitty*gritty's of the job. -. .o, In#t +)tion: (t may consist an instruction or directions to perform a particular tas# or a function. (t may be in the form of orders or steps to perform a tas#. .. A%% enti)e#8i%#: Cenerally fresh graduates are put under the e<perienced employee to learn the functions of job. 7. Inte n#8i%# &n6 A##i#t&nt#8i%#: 5n intern or an assistants are recruited to perform a specific time*bound jobs or projects during their education. (t may consist a part of their educational courses. Off t8e .o, T &inin'#: $hese are used a ay from or# places hile employees are not or#ing li#e classroom trainings" seminars etc. /ollo ing are the off*the*job methods; A61&nt&'e# of Off-t8e-.o, T &inin': $rainers are usually e<perienced enough to train (t is systematically organized :fficiently created programs may add lot of value Di#&61&nt&'e# of Off-t8e-.o, T &inin': (t is not directly in the conte<t of job (t is often formal (t is not based on e<perience (t is least e<pensive $rainees may not be highly motivated (t is more artificial in nature Off t8e .o, T &inin' Met8o6# +. C!&## oo" 5e)t+ e#: (t is a verbal lecture presentation by an instructor to a large audience. 5dvantage % (t can be used for large groups. >ost per trainee is lo . )isadvantages % 2o popularity. (t is not learning by practice. (t is &ne* ay communication. Ho authentic feedbac# mechanism. 2i#ely to boredom. ,. A+6io-/i#+&!: (t can be done using /ilms" $elevisions" Lideo" and 3resentations etc. 5dvantages % ?ide range of realistic e<amples" quality control possible". )isadvantages % &ne* ay communication" Ho feedbac# mechanism. Ho fle<ibility for different audience. -. Si"+!&tion: creating a real life situation for decision*ma#ing and understanding the actual job conditions give it. /ollo ing are some of the simulation methods of trainings a. C&#e St+6ie#: (t is a ritten description of an actual situation and trainer is supposed to analyze and give his conclusions in riting. $he cases are generally based on actual organizational situations. (t is an ideal method to promote decision*ma#ing abilities


ithin the constraints of limited data. b. Ro!e $!&*#: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. (t is more emotional orientation and improves interpersonal relationships. 5ttitudinal change is another result. $hese are generally used in M)3. c. Sen#iti1it* T &inin'#E $his is more from the point of vie of behavioral assessment" under different circumstances ho an individual ill behave himself and to ards others. $here is no preplanned agenda and it is instant. 5dvantages % increased ability to empathize" listening s#ills" openness" tolerance" and conflict resolution s#ills. )isadvantage % 3articipants may resort to their old habits after the training. .. $ o' &""e6 In#t +)tion#: 3rovided in the form of bloc#s either in boo# or a teaching machine using questions and /eedbac#s ithout the intervention of trainer. 5dvantages % !elf paced" trainees can progress at their o n speed" strong motivation for repeat learning" material is structured and self*contained. )isadvantages % !cope for learning is less; cost of boo#s" manuals or machinery is e<pensive. 7. Co"%+te Ai6e6 In#t +)tion#: (t is e<tension of 3( method" by using computers. 5dvantages % 3rovides accountabilities" modifiable to technological innovations" fle<ible to time. )isadvantages % High cost. ?> 5&,o &to * T &inin' -& +. ,. -. .. 7. 8. 1. ie # to Effe)ti1e T &inin': 2ac# of Management commitment (nadequate $raining budget :ducation degrees lac# s#ills 2arge scale poaching of trained staff Hon*coordination from or#ers due to do nsizing trends :mployers and 0 !chools operating distantly @nions influence

Ho9 To M&7e T &inin' Effe)ti1eA +. Management >ommitment ,. $raining 6 0usiness !trategies (ntegration -. >omprehensive and !ystematic 5pproach .. >ontinuous and &ngoing approach 7. 3romoting 2earning as /undamental Lalue 8. >reations of effective training evaluation system


Definition 1: +lanned Introduction (t is a 3lanned (ntroduction of employees to their jobs" their co* or#ers and the organization per se. O +. ,. -. .. ient&tion )on1e*# : t*%e# of info "&tion: )aily ?or# Routine &rganization 3rofile (mportance of 4obs to the organization )etailed &rientation 3resentations %o#e of O ient&tion $o ma#e ne employees feel at home in ne environment $o remove their an<iety about ne or#place $o remove their inadequacies about ne peers $o remove orries about their job performance $o provide them job information" environment

$+ +. ,. -. .. 7.

T*%e# of O ient&tion $ o' &"# +. /ormal or (nformal ,. (ndividual or Croup -. !erial or )isjunctive $ e eF+i#ite# of Effe)ti1e O ient&tion $ o' &" +. 3repare for receiving ne employee ,. )etermine information ne employee ants to #no -. )etermine ho to present information .. >ompletion of 3aper or# $ o,!e"# of O ient&tion# +. 0usy or @ntrained supervisor ,. $oo much information -. &verloaded ith paper or# .. Civen menial tas#s and discourage interests 7. )emanding tas#s here failure chances are high 8. :mployee thro n into action soon 1. ?rong perceptions of employees ;8&t i# t8e 6iffe en)e ,et9een in6+)tion &n6 o ient&tionA (nduction referred to formal training programs that an employee had to complete before they could start or# &rientation as the informal information giving that made the recruit a are of the comfort issues * here the facilities are" hat time lunch is and so forth. Ho9 !on' #8o+!6 t8e in6+)tion % o)e## t&7eA (t starts hen the job ad is ritten" continues through the selection process and is not


complete until the ne organizationFs goals.

team member is comfortable as a full contributor to the

$he first hour on day one is a critical component * signing on" issuing #eys and pass ords" e<plaining no go zones" emergency procedures" meeting the people that you ill interact ith all have to be done immediately. @ntil they are done the ne comer is on the payroll" but is not employed. 5fter that it is a matter of just in time training * e<panding the content as ne underta#en. ;e on!* e"%!o* ne9 %eo%!e one &t & ti"e - 8o9 )&n 9e in6+)t t8e"A $here are some issues" hich cannot ait * they vary according to your situation. 3erhaps a buddy system on the job may be the best ay to deal ith these. &ther subjects may be incorporated ith refresher training for current staff" or handled as participant in an outside program. 3erhaps some can ait until there are groups of people ho have started in the last fe months. $his may ta#e some creative thin#ing" but the ans er is quite simple * until the ne people are integrated then they are less useful. $he math is often amazingly simple * not ta#ing the time to train consumes more time than the training ould. ;8&t !e1e!# of #t&ff nee6 in6+)tionA :verybody. $he >:& needs to #no different things to the temporary concierge" but everyone needs a planned program of induction and orientation. $5ACEMENT 3lacement is allocation of people to jobs. (t is assignment or reassignment of an employee to a ne or different job. MU5TI SII55ING Multi !#illing is $he (ntegrated !#ills 3rogram that has been developed to build on the e<isting s#ills of the current or# force to reduce redundancies and avoid do nsizing situations. $he objective of this program is to gain total integration of s#ills. $he program is based around Kon*the*job' 6 Koff*the*job' competence. $hat is the ability to do the job on the shop floor Atraining to gain or# e<perienceB and Koff*the*job' Atraining in the classroomB to gain underpinning #no ledge. $he program requires the individual to demonstrate competence in a number of different s#ills and this competence is measured and assessed on the job. Multi*s#illing of course or#s best ith more advanced s#illed or#ers because their individual s#ills levels are developed enough here they can fluidly transition from one s#ill to the ne<t ithout degradation of a s#ills performance. (f you are multi*s#illing and a great percentage of your or#ers are having problems e<ecuting one of the s#ills effectively it is probably a good signal you need to go bac# to basics ith that s#ill and pull it out of the multi*s#illing sequences. 5nother advantage of multi*s#illing is the positive effect of hat is called Mconte<tual learningM. >onte<tual learning involves discovery and improvement from t o s#ills" hich donFt" on the surface" appear to have a direct relationship. $he disadvantages of multi*s#illing include the obvious danger of moving on to quic#ly

duties are

to ard advanced s#ills and combinations ithout sufficiently drilling basic s#ills. ?hile there is a great desire to learn quic#ly ( thin# this is one of the reason e are seeing better s#illed from some of the best or#ers. $he consequence is that e become Mpartially s#illedM. $he greater the number of partial s#ills e develop" the less chance e ever have of reaching our full potential.

C8&n'e 1i#-K-1i# Recruitment 3erformance 5ppraisals Me&nin' of C8&n'e: 5lterations in %3eople" !tructure and $echnology E3te n&! Fo )e# of C8&n'e: Mar#etplace 2abor mar#ets :conomic >hanges $echnology 2a s and Regulations Inte n&! Fo )e# of C8&n'e >orporate !trategies ?or#place $echnology and :quipments :mployee 5ttitudes C8&n'e A'ent#: (;8o )&n , in' &,o+t )8&n'eA) Managers :<ternal >onsultants !taff !pecialists $ o)e## of C8&n'e (5e9in# #te%#) @nfreezing >hanging Refreezing ;8ite 9&te &%i6# "et&%8o 2ac# of !tability 2ac# of 3redictability Lirtual >haos >onstant >hange Re#i#t&n)e to C8&n'e @ncertainty and 5mbiguity 3ersonal 2oss >oncerns )isbelief in >hange benefits Te)8niF+e# of Re6+)in' Re#i#t&n)e to C8&n'e :ducation and >ommunication Hegotiation Manipulation and >o*optation 3articipation /acilitation

>oercion C8&n'e M&n&'e"ent !tructural >hanges $echnological >hanges 5uthority 3rocesses >oordination Methods >entralization :quipments O '&ni2&tion&! De1e!o%"ent Te)8niF+e# !urvey /eedbac# !ensitivity $raining 3rocess >onsultation $eam 0uilding (nter*group )evelopment Con6ition# F&)i!it&tin' C8&n'e )ramatic >risis 2eadership >hange ?ea# >ulture Poung and !mall &rganization AageingB T8e Ro&6 to C8&n'e in C+!t+ e 5nalyze the culture Heed for change He leadership Reorganize Restructure He stories and rituals >hange the job systems THM /E#> Reen'inee in' $IM A$otal Iuality ManagementB >ontinuous >hange /i<ing and (mproving Mostly focused on K5s*(s' !ystems indispensable 0ottom to $op M&n&'in' Do9n#i2e6 ;o 7fo )e &pen and honest communication 5ssistance to them Help for survivors of the do nsized St e## in ;o 7%!&)e &pportunities stress )emands stress >onstraints stress Ho9 to e6+)e 9o 7%!&)e #t e## :mployee selection &rganizational communication 3erformance 3lanning 4ob redesign especially hen processes change" jobs merged" and relocation happens :mployee counseling $ime management programs ;8&t i# ) e&ti1it*A

3eople >hanges 5ttitudes :<pectations 0ehaviors

Re engineering Radical and &ne time >hange Redesigning Mostly focused on K hat can beD' $op to 0ottom

>ombining ne

ideas in unique

ays or associating ideas in unusual


;8&t i# inno1&tionA $urning creative ideas into useful products" services or methods of operations

3 Set# of 1& i&,!e #i"+!&te inno1&tion !tructural >hanges >ultural >hanges Human Resources >hanges C8&n'e Define6 M>hange is the indo through hich the future enters your life.M (tFs all around you" in many types and shapes. Pou can bring it about yourself or it can come in ays ;8* C8&n'e M&n&'e"entA Pou can bring the change about yourself or it can come in ays that give you little choice about its hat" hen" and ho . /ighting against change can slo it do n or divert it" but it onFt stop it ho ever. (f you ish to succeed in this rapidly changing ne orld Myou must learn to loo# on change as a friend * one ho presents you ith an opportunity for gro th and improvement.M; $he rate of change in todayFs orld is constantly increasing. :verything that e<ists is getting old" earing out and should be replaced. MRevolutionary technologies" consolidation" ell*funded ne competition" unpredictable customers" and a quic#ening in the pace of change hurled unfamiliar conditions at management.M1 $rue success and long*term prosperity in the ne orld depends on your ability to adapt to different and constantly changing conditions. $he strategic selection of the best strategic positioning in the playing field" or the 0usiness !pace" your firm must ta#e is complicated by the fact that the characteristics of the 0usiness !pace change over time. $oday" the orld is a different place than it as yesterday. M5t certain points" the difference becomes material. !uccessful firms recognize change. Lery successful ones anticipate it.M9 E1o!+tion& * ($!&nne6) C8&n'e 1e #+# Re1o!+tion& * A)tion Ho you change a business unit to adapt to shifting economy and mar#ets is a matter of management style. :volutionary change" that involves setting direction" allocating responsibilities" and establishing reasonable timelines for achieving objectives" is relatively painless. Ho ever" it is rarely fast enough or comprehensive enough to move ahead of the curve in an evolving orld here sta#es are high" and the response time is short. ?hen faced ith mar#et*driven urgency" abrupt and sometimes disruptive change" such as dramatic do nsizing or reengineering" may be required to #eep the company competitive. (n situations hen timing is critical to success" and companies must get more efficient and productive rapidly" revolutionary change is demanded. ?hen choosing bet een evolutionary change and revolutionary action" a leader must pursue a balanced and pragmatic approach. ! inging too far to revolutionary e<treme may create Man organizational culture that is so impatient" and so focused on change" that it fails to give ne initiatives and ne personnel time to ta#e root" stabilize" and gro . ?hatFs more" it creates a high*tension environment that intimidates rather than nurtures people" leaving them ith little or no emotional investment in the company.M . Re#i#t&n)e to C8&n'e Most people donFt li#e change because they donFt li#e being changed. M(f you ant to ma#e enemies" try to change somethingM" advised ?oodro ?ilson. ?hen see#ing to change an organization" itFs strategy or processes" leaders run into He tonFs la that a body at rest tends to stay at rest. 5dvocates for change are greeted ith suspicion" anger" resistance"

and even sabotage.. MHot invented hereM syndrome also #eeps many sound ideas from gaining the objective assessment they deserve...More To6&*L# ;o !6 Re&!itie# $he magnitude of todayFs environmental" competitive" and global mar#et change is unprecedented. (tFs a very interesting and e<citing orld" but itFs also volatile and chaoticE /o!&ti!it* describes the economyFs rate of changeE e<tremely fast" upsurges and sudden do nturns. ith e<plosive

C8&o# describes the direction of the economyFs changesE eFre not sure e<actly here eFre headed" but e are s inging bet een the various alternatives at a very high speed.8 $o cope ith an unpredictable orld you must build an enormous amount of fle<ibility into your organization. ?hile you cannot predict the future" you can get a handle on trends" hich is a ay to ta#e advantage of change and convert ris#s into opportunities. C e&tin' C8&n'e fo I"% o1e"ent &n6 Co"%etiti1e A61&nt&'e >hange creates opportunities" but only for those ho recognize and seize it. M!eeing is the first step" seizing the second" and continuously innovating is the third.M 7 (nnovation redefines gro th opportunities. 5s current products are becoming obsolete faster than ever" in order to survive and prosper" organizations continually need to improve" innovate and modify their products and services. $he !ilicon Lalley slogan M:at lunch and you are lunchM is more than a reflection of increasingly intense or# ethic. Riding the ave of change is becoming the most important part of the business. ?hile the economy is shifting and innovation is rampant" Mdoing it the same ayM is a recipe for corporate e<tinction. + !uccessful change efforts are those here the choices both are internally consistent and fit #ey e<ternal and situational variables. MPou have to find subtle ays to introduce change" ne concepts" and give feedbac# to people so that they can accept and gro ith it.M. Anti)i%&tin' C8&n'e $here is big difference bet een anticipating and guessing. 5nticipation means e<pecting" being a are of something in advance" to regard it as possible. $he ability to anticipate is one of the #ey ingredients of efficient speed and change management. M0eing able to anticipate that hich is li#ely to occur in the ne<t fe months and the ne<t fe years is enough to give you an edge over ;;O of the population ho simply go along ith hatever happens.M1 Ho can you see the futureD 5ctually" anticipation is natural * everyone does it every day. @nfortunately" most people limit e<ercising their anticipatory s#ills to daily routine matters. 5ll you really need to start applying these s#ills for your business is a small head start...More St& tin' 9it8 <o+ #e!f $he best place to start change is ith yourself. (f hatever you do doesnFt or#" you must be fle<ible * you must change your action plan if the current one does not produce the required results. (f you ant other people to change" you must be prepared to ma#e the first step yourself. (f you cannot change your environment" you should change your attitude. $o achieve effective personal change" consider practicing the H23 $echnology of 5chievement that as specially developed to discover ho people can e<cel" and most particularly hen managing change * ho to create the Fdifference that ma#es the differenceF...More 5e&6in' C8&n'e $he old ays of management no longer or# and ill never or# again. !uccessful change requires leadership. ?hen change fails to occur as planned" the cause if often to be found at a deeper level" rooted in the inappropriate behavior" beliefs" attitudes" and assumptions of ould*be leaders.8 2eadership is all about the process of changeE ho to stay ahead of it"


master it" benefit from the opportunities it brings. $he best leaders stri#e first by ta#ing the offensive against economic cycles" mar#et trends" and competitors. $hey discover the most effective ays for achieving significant change * Ma change that identifies the realities of the business environment and reorders them so that a ne force is able to leverage" rather than resist" those realities in order to achieve a competitive advantage.M . $he follo ing system ill help you to unleash the po er of your organization and reshape it into a more competitive enterpriseE )evelop a vision. $o create a seamless bridge from the vision to action" start ith your top management team * they should understand and embrace your vision. 5lign all your people against the endgame. (nvite their opinion regarding critical issues such as the direction you should be headed" the changes you have to ma#e" and the resources you have to acquire. @sing the employee feedbac#" develop a strategic plan. !tay laser*focused on the methods that ill drive your business unit to ards its stated objectives. 0uild a diverse leadership group representing all the #ey constituencies of your organization. $hey ill share responsibility for plan management. !hare detail information about the company and the change progress * people have to understand here you are and here you are going in order to contribute effectively to your mission. M&n&'in' O '&ni2&tion&! C8&n'e !uccess in business doesnFt come from feeling comfortable. (n todayFs technology*driven orld" business life cycles have accelerated e<ponentially. $he challenge is to #eep a step ahead of changing mar#et conditions" ne technologies and human resources issues. $he heel of business evolution is a frame or# and set of tools" hich enables you to manage the comple< process of organizational change and transformation more effectively. $he sequence of the eight segments * business environment" business ecosystem" business design" leadership style" organizational values" management process" #no ledge management systems" and performance measures * reflects the learning cycle that occurs hen outside*in or bottom*up learning ta#es place. -e8&1io &! C8&n'e $he challenge and the shape of an organizationFs behavioral change program depend on the corporate culture and the targeted behaviors that need to be changed. Pour change program needs to be e<plicitly built around these challenges. MLery often" these programs involve the creation of incentives hich elegantly reinforce the desired behavior Aand therein reinforce the change loop in the learning dynamicB.M 9... Moti1&tin' E"%!o*ee# to E", &)e C8&n'e Pou have a choice of instruments to motivate your people to embrace change. 3erformance*incentive levers are especially useful in driving those ho lac# direction or initiative. Pou may also encourage employee feedbac# on here and ho the company can ta#e corrective action and re ard employees for their contribution. (n any case" Monce you open the gates and encourage employees to serve as agents of change" you must demonstrate that their input ill have a real* orld impact on the ay your company does business.M. &n the other side" you have to be rather aggressive hen dealing ith people ho vie change as a threat and create roadbloc#s that stall progress. 5nyone ho thin#s that itFs harmless to ma#e e<ceptions for a fe people and shift resources to accommodate poor performers is missing an important point. M(tFs not a fe people ho are at sta#e" itFs the corporate cultureM" says Miles Creer" of !avannah :lectric. M0y permitting those ho resist or retaliate against change to remain in the company" you broadcast a message that suggests supporting the companyFs mission statement is optional. :ven orse" you permit the least*committed employees to taint and influence the attitude and performance of their


peers.M Mo1in' 9it8 S%ee6 (n the ne economy here everything is moving faster and itFs only going to get faster" the ne mantra is" M)o it more ith less and do it faster.M + $o be able to move ith speed" companies need to establish a change*friendly environment and develop four major competenciesE fast thin#ing" fast decision ma#ing" fast acting" and sustaining speed. M&7in' H+i)7 De)i#ion# t8 o+'8 E#t&,!i#8in' G+i6in' $ in)i%!e# /ast companies that have demonstrated the ability to sustain surge and velocity all have established sets of guiding principles to help them ma#e quic# decisions. 5bandoning theoretical and politically correct FvaluesF and bureaucratic procedures in favor of a practical" do n*to*earth list of guiding principles ill help your company ma#e the decision* ma#ing process much faster. &nly one question ill need to be as#ed of any proposed course of actionE )oes it fit our guiding principlesD


Definition 1: Systematic -valuation (t is a systematic evaluation of an individual individual's potential for development. ith respect to performance on the job and

Definition 2: 6ormal System, "easons and )easures of future performance (t is formal" structured system of measuring" evaluating job related behaviors and outcomes to discover reasons of performance and ho to perform effectively in future so that employee" organization and society all benefits. Me&nin' of $e fo "&n)e A%% &i#&!# 3erformance 5ppraisals is the assessment of individual's performance in a systematic ay. (t is a developmental tool used for all round development of the employee and the organization. $he performance is measured against such factors as job #no ledge" quality and quantity of output" initiative" leadership abilities" supervision" dependability" co* operation" judgment" versatility and health. 5ssessment should be confined to past as ell as potential performance also. $he second definition is more focused on behaviors as a part of assessment because behaviors do affect job results. $e fo "&n)e A%% &i#&!# &n6 .o, An&!*#i# Re!&tion#8i% 4ob 5nalysis )escribe the or# and personnel requirement of a particular job. 3erformance !tandards $ranslate job requirements into levels of acceptable or unacceptable performance 3erformance 5ppraisals )escribe the job relevant strengths and ea#nesses of each individual.

O,0e)ti1e# of $e fo "&n)e A%% &i#&!# U#e of $e fo "&n)e A%% &i#&!# +. 3romotions ,. >onfirmations -. $raining and )evelopment .. >ompensation revie s 7. >ompetency building 8. (mprove communication 1. :valuation of HR 3rograms 9. /eedbac# 6 Crievances : Go&!# of $e fo "&n)e A%% &i#&!# Ceneral Coals )evelopmental @se !pecific Coals (ndividual needs 3erformance feedbac# $ransfers and 3lacements !trengths and )evelopment needs !alary 3romotion Retention G $ermination Recognition 2ay offs 3oor 3erformers identification

5dministrative )ecisions G @ses


&rganizational Maintenance


HR 3lanning $raining Heeds &rganizational Coal achievements Coal (dentification HR !ystems :valuation Reinforcement of organizational needs Lalidation Research /or HR )ecisions 2egal Requirements

$e +. ,. -. .. 7. 8. 1. 9.

fo "&n)e A%% &i#&! $ o)e## &bjectives definition of appraisal 4ob e<pectations establishment )esign an appraisal program 5ppraise the performance 3erformance (ntervie s @se data for appropriate purposes (dentify opportunities variables @sing social processes" physical processes" human and computer assistance

Diffe en)e ,et9een T &6ition&! &n6 Mo6e n (S*#te"#) &%% o&)8 to A%% &i#&!# #ategories Cuiding Lalues 2eadership !tyles /requency /ormalities Re ards %raditional Appraisals (ndividualistic" >ontrol oriented" )ocumentary )irectional" :valuative &ccasional High (ndividualistic )odern, Systems Appraisals !ystematic" )evelopmental" 3roblem solving /acilitative" >oaching /requent 2o Crouped" &rganizational

TECHNIHUES E METHODS OF $ERFORMANCE A$$RAISA5S Humerous methods have been devised to measure the quantity and quality of performance appraisals. :ach of the methods is effective for some purposes for some organizations only. Hone should be dismissed or accepted as appropriate e<cept as they relate to the particular needs of the organization or an employee. 0roadly all methods of appraisals can be divided into t o different categories. 3ast &riented Methods /uture &riented Methods

$&#t O iente6 Met8o6# +. R&tin' S)&!e#: Rating scales consists of several numerical scales representing job related performance criterions such as dependability" initiative" output" attendance" attitude etc. :ach scales ranges from e<cellent to poor. $he total numerical scores are computed and final conclusions are derived. 5dvantages % 5daptability" easy to use" lo cost" every type of job can be evaluated" large number of employees covered" no formal training required. )isadvantages % Rater's biases ,. C8e)7!i#t: @nder this method" chec#list of statements of traits of employee in the form of Pes or Ho based questions is prepared. Here the rater only does the reporting or chec#ing and HR department does the actual evaluation. 5dvantages % economy" ease of


administration" limited training required" standardization. )isadvantages % Raters biases" use of improper eighs by HR" does not allo rater to give relative ratings -. Fo )e6 C8oi)e Met8o6: $he series of statements arranged in the bloc#s of t o or more are given and the rater indicates hich statement is true or false. $he rater is forced to ma#e a choice. HR department does actual assessment. 5dvantages % 5bsence of personal biases because of forced choice. )isadvantages % !tatements may be rongly framed. .. Fo )e6 Di#t i,+tion Met8o6: here employees are clustered around a high point on a rating scale. Rater is compelled to distribute the employees on all points on the scale. (t is assumed that the performance is conformed to normal distribution. 5dvantages % :liminates )isadvantages % 5ssumption of normal distribution" unrealistic" errors of central tendency. 7. C iti)&! In)i6ent# Met8o6: $he approach is focused on certain critical behaviors of employee that ma#es all the difference in the performance. !upervisors as and hen they occur record such incidents. 5dvantages % :valuations are based on actual job behaviors" ratings are supported by descriptions" feedbac# is easy" reduces recency biases" chances of subordinate improvement are high. )isadvantages % Hegative incidents can be prioritized" forgetting incidents" overly close supervision; feedbac# may be too much and may appear to be punishment. 8. -e8&1io &!!* An)8o e6 R&tin' S)&!e#: statements of effective and ineffective behaviors determine the points. $hey are said to be behaviorally anchored. $he rater is supposed to say" hich behavior describes the employee performance. 5dvantages % helps overcome rating errors. )isadvantages % !uffers from distortions inherent in most rating techniques. 1. Fie!6 Re1ie9 Met8o6: $his is an appraisal done by someone outside employees' o n department usually from corporate or HR department. 5dvantages % @seful for managerial level promotions" hen comparable information is needed" )isadvantages % &utsider is generally not familiar ith employees or# environment" &bservation of actual behaviors not possible. 9. $e fo "&n)e Te#t# ( O,#e 1&tion#: $his is based on the test of #no ledge or s#ills. $he tests may be ritten or an actual presentation of s#ills. $ests must be reliable and validated to be useful. 5dvantage % $ests may be apt to measure potential more than actual performance. )isadvantages % $ests may suffer if costs of test development or administration are high. ;. Confi6enti&! Re)o 6#: Mostly used by government departments" ho ever its application in industry is not ruled out. Here the report is given in the form of 5nnual >onfidentiality Report A5>RB and may record ratings ith respect to follo ing items; attendance" self e<pression" team or#" leadership" initiative" technical ability" reasoning ability" originality and resourcefulness etc. $he system is highly secretive and confidential. /eedbac# to the assessee is given only in case of an adverse entry. )isadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are lin#ed to HR actions li#e promotions etc. +=. E##&* Met8o6: (n this method the rater rites do n the employee description in detail ithin a number of broad categories li#e" overall impression of performance" promoteability of employee" e<isting capabilities and qualifications of performing jobs" strengths and ea#nesses and training needs of the employee. 5dvantage % (t is e<tremely useful in filing information gaps about the employees that often occur in a better*structured chec#list. )isadvantages % (t its highly dependent upon the riting s#ills of rater and most of them


are not good raters.

riters. $hey may get confused success depends on the memory po er of

++. Co#t A))o+ntin' Met8o6: Here performance is evaluated from the monetary returns yields to his or her organization. >ost to #eep employee" and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis. +,. Co"%& &ti1e E1&!+&tion Met8o6 (R&n7in' ( $&i e6 Co"%& i#on#): $hese are collection of different methods that compare performance ith that of other co* or#ers. $he usual techniques used may be ran#ing methods and paired comparison method. Ran+ing Met*ods: !uperior ran#s his or#er based on merit" from best to orst. Ho ever ho best and hy best are not elaborated in this method. (t is easy to administer and e<planation. &aired )omparison Met*ods: (n this method each employee is rated ith another employee in the form of pairs. $he number of comparisons may be calculated ith the help of a formula as under. H < AH*+B G , F+t+ e O iente6 Met8o6# +. M&n&'e"ent -* O,0e)ti1e#: (t means management by objectives and the performance is rated against the achievement of objectives stated by the management. M0& process goes as under. :stablish goals and desired outcomes for each subordinate !etting performance standards >omparison of actual goals ith goals attained by the employee :stablish ne goals and ne strategies for goals not achieved in previous year. 5dvantage % (t is more useful for managerial positions. )isadvantages % Hot applicable to all jobs" allocation of merit pay may result in setting short*term goals rather than important and long*term goals etc. ,. $#*)8o!o'i)&! A%% &i#&!#: $hese appraisals are more directed to assess employees potential for future performance rather than the past one. (t is done in the form of in*depth intervie s" psychological tests" and discussion ith supervisors and revie of other evaluations. (t is more focused on employees emotional" intellectual" and motivational and other personal characteristics affecting his performance. $his approach is slo and costly and may be useful for bright young members ho may have considerable potential. Ho ever quality of these appraisals largely depend upon the s#ills of psychologists ho perform the evaluation. -. A##e##"ent Cente #: $his technique as first developed in @!5 and @Q in +;.-. 5n assessment center is a central location here managers may come together to have their participation in job related e<ercises evaluated by trained observers. (t is more focused on observation of behaviors across a series of select e<ercises or or# samples. 5ssessees are requested to participate in in*bas#et e<ercises" or# groups" computer simulations" role playing and other similar activities hich require same attributes for successful performance in actual job. $he characteristics assessed in assessment center can be assertiveness" persuasive ability" communicating ability" planning and organizational ability" self confidence" resistance to stress" energy level" decision ma#ing" sensitivity to feelings" administrative ability" creativity and mental alertness etc. )isadvantages % >osts of employees traveling and lodging" psychologists" ratings strongly influenced by assessee's inter*personal s#ills. !olid performers may feel suffocated in simulated situations. $hose ho are not selected for this also may get affected. A61&nt&'e# % ell*conducted assessment center can achieve better forecasts of future


performance and progress than other methods of appraisals. 5lso reliability" content validity and predictive ability are said to be high in assessment centers. $he tests also ma#e sure that the rong people are not hired or promoted. /inally it clearly defines the criteria for selection and promotion. .. 3?D-De' ee Fee6,&)7: (t is a technique hich is systematic collection of performance data on an individual group" derived from a number of sta#eholders li#e immediate supervisors" team members" customers" peers and self. (n fact anyone ho has useful information on ho an employee does a job may be one of the appraisers. $his technique is highly useful in terms of broader perspective" greater self*development and multi*source feedbac# is useful. -8=*degree appraisals are useful to measure inter*personal s#ills" customer satisfaction and team building s#ills. Ho ever on the negative side" receiving feedbac# from multiple sources can be intimidating" threatening etc. Multiple raters may be less adept at providing balanced and objective feedbac#. Et8i)# of $e fo "&n)e A%% &i#&!# E 5e'&!!* 6efen#i,!e $e fo "&n)e A%% &i#&!# Et8i)# of $ o)e6+ e# +. ,. -. .. 7. 8. 1. /ormal !tandardized 3erformance 5ppraisal !ystems @niform to all employees" no illegal differentiations based on cast" religion etc. !tandards formally communicated to all employees /reedom to revie performance appraisal results /ormal appeal process about ratings and judgments ?ritten instructions and training to raters 5ll personal decision ma#ers should be a are of anti*discrimination la s.

Et8i)# of Content# +. ,. -. .. 7. 8. >ontent based on job analysis $raits based appraisals should be avoided &bjectively verifiable data should be used >onstraints on performance beyond control should be prevented !pecific job related dimensions to be used rather than single or global dimensions. )imensions must be assigned eight to reflect relative importance in performance score

Et8i)# of Do)+"ent&tion of Re#+!t# +. 5 thoroughly ritten record of evidence leading to termination should be maintained ,. ?ritten documentation of e<treme ratings should be maintained -. )ocumentation should be consistent among the raters. Et8i)# of R&te # +. $he raters should be trained in ho to use an appraisal system ,. $he rater must have opportunity to observe ratees first hand and revie ratee performance products. -. @se of more than one rater is desirable to reduce biases. O '&ni2&tion&! S+%%o t F&)to # fo $e fo "&n)e A%% &i#&! S*#te"# 3erformance appraisal serves many organizational objectives and goals. 0esides encouraging high level of performance" the evaluation system is useful in identifying employees ith potential" re arding them equitably" and determining employee needs for development. 5ll these activities are instrumental in achieving corporate plans and long* term gro th" typical appraisal system in most organizations have been focused on short* term goals only. important


/rom the strategic management point of vie s" organizations can be grouped under different categories as defenders" prospectors and analyzers. Defen6e #: $hey have narro and stable product mar#et domain. $hey don't need to ma#e any adjustment in technology" structure or methods of operations etc. $hey devote entire attention on improving e<isting operations. 0ecause of emphasis on s#ill building successful defenders use appraisals as means for identifying training needs. (t is more behavior oriented. $ o#%e)to #: $hey continuously search for ne products and opportunities. $hey e<periment regularly to ne and emerging trends. $hey more focus on s#ills identification and acquisition of human resources from e<ternal sources prospectors often use appraisals for identifying staffing needs. $he focus is on results. An&!*2e #: $hey operate in t o type of product domain mar#ets. &ne is stable and other is changing. $hey atch their competitors closely and rapidly adopt the ideas that are promising. $hey use cost effective technologies for stable products and matri< technologies for ne products. 5nalyzers tend to emphasize on s#ills building and s#ills acquisitions and employ e<tensive training programs. Hence they use appraisal more for training and staffing purposes. Ho ever performance appraisal systems has strategic importance in three different ays. Fee6,&)7 Me)8&ni#": 3erformance evaluation is the central mechanism that not only provides feedbac# to individuals but also aids in the assessment of the progress of organization as a hole. ?ithout appraisals managers of any firm can only guess as to hether or not employees are or#ing to ards realization of the organization goals. Con#i#ten)* ,et9een #t &te'* &n6 0o, ,e8&1io : 3erformance appraisal not only is a means of #no ing if the employee behavior is consistent ith the overall strategies focus but also a ay of bringing to the fore any negative consequence of the strategy % behavior fit. $hus the performance appraisal system is an important mechanism to elicit feedbac# on the consistency of the strategy % behavior lin#. Con#i#ten)* ,et9een /&!+e# &n6 .o, -e8&1io !in7: 3erformance evaluation is a mechanism to reinforce values and culture of the organization. 5nother importance is to align appraisal ith organizational culture. $hus the purpose of performance evaluation is to ma#e sure that employee's goals" employees behavior and feedbac# of information about performance are all lin#ed to the corporate strategy. E##enti&!# of & Goo6 $e fo "&n)e A%% &i#&! S*#te": +. !tandardized 3erformance 5ppraisal !ystem ,. @niformity of appraisals -. )efined performance standards .. $rained Raters 7. @se of relevant rating tools or methods 8. !hould be based on job analysis 1. @se of objectively verifiable data 9. 5void rating problems li#e halo effect" central tendency" leniency" severity etc. ;. >onsistent )ocumentations maintained +=. Ho room for discrimination based on cast" creed" race" religion" region etc. $ o,!e"# of R&tin': +. 2eniency 6 !everity ,. >entral $endency -. Halo :rror .. Rater :ffect 7. 3rimacy 6 Recency :ffect 8. 3erceptual !ets


1. 3erformance )imensions &rder 9. !pillover :ffects ;. !tatus :ffect


(ncentives are monetary benefits paid to or#men in recognition of their outstanding performance. $hey are defined as variable re ards granted according to variations in the achievement of specific results. A61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion# +. (ncentives are important for inducement and motivation of efficiency and greater output. ,. :mployee earnings go up -. :nhanced standard of livings of employees .. Reduction in total unit cost of production" 7. 3roductivity increases. 8. 3roduction capacity is also li#ely to increase 1. Reduced supervision Di#&61&nt&'e# of In)enti1e ,&#e6 )o"%en#&tion +. $endency of quality of products deteriorated due to increased output and lo cost ,. :mployees may oppose introduction of ne machines -. ?or#ers demand for minimum age limit may go up due to high incentive earnings .. !ometimes employees may disregard security regulations due to payment by results approach adopted for higher incentive figures 7. &ver or#ing may affect employee health 8. :mployee jealousies ith respect to high and lo performers or#ers for higher



N&t+ e of HR A+6it HR 5udit is a tool for evaluating the personnel activities of an organization. $he audit may include one division or entire company. (t gives feedbac# about HR functions to operating managers and HR specialists. (t also sho s ho ell managers are meeting HR duties. (n short HR audit is an overall control chec# on HR activities in a division or a company and evaluation of ho these activities support organization's strategy. -&#i# of HR A+6it ($e #onne! Re#e& )8) +. ?age !urveys ,. Recruitment !ources effectiveness -. $raining efforts effectiveness .. !upervisor's effectiveness 7. (ndustrial settlements 8. 4ob 5nalysis 1. 4ob !atisfaction !urvey 9. :mployee needs survey ;. 5ttitude !urveys +=. High accident frequency surveys -enefit# of HR A+6it +. (dentification of contributions of HR department ,. (mprovement of professional image of HR department -. :ncouragement of greater responsibility and professionalism among HR members .. >larification of HR duties and responsibilities 7. !timulation of uniformity of HR policies and practices 8. /inding critical personnel problems 1. :nsuring timely compliance ith legal requirements 9. Reduction of HR costs through more effective personnel procedures ;. >reation of increased acceptance of changes in HR department +=. 5 thorough revie of HR information systems S)o%e &n6 T*%e# of HR A+6it HR 5udit must cover the activities of the department and e<tend beyond because the people problems are not confined to HR department alone. 0ased on this HR audit can be spread across follo ing four different categories. Human Resource /unction 5udit Managerial >ompliance 5udit Human Resource >limate 5udit :mployee $urnover 5bsenteeism 5ccidents 5ttitude !urveys HR * >orporate !trategy 5udit


A%% o&)8e# to HR A+6it +. ,. -. .. 7. >omparative 5pproach A0enchmar#ing ith another companyB &utside 5uthority 5pproach A&utside consultants' standardsB !tatistical 5pproach A!tatistical measures and toolsB >ompliance 5pproach A2egal and company policiesB Management 0y &bjectives 5pproach ACoals 6 &bjectives basedB


3erformance is a function of ability and motivation. 3 N f A5 < MB Definition 1: #hoices among voluntary activities 5 process governing choices made by persons or lo er organisms among alternative forms of voluntary activity Definition 2: Arouse enthusiasm to pursue 5 result of internal and e<ternal processes to the individual that arouse enthusiasm and persistence to pursue a certain course of action Definition 3: Need that activates behavior 5 process that starts ith a physiological deficiency or need that activates behavior or a drive that is aimed at a goal or an incentive. Me&nin' of Moti1&tion Motivation is a set of forces that cause people to behave in certain Moti1&tion $ o)e## (? Ste%#) +. ,. -. .. 7. 8. (ndividual Heeds !earch for ays to satisfy needs Coal 6 &bjectives directed (ncreased performance Receiving re ards or punishment Reassessment of needs ays.

C iti)&!it* of Moti1&tion to M&n&'e # I"%o t&n)e of Moti1&tion Motivation helps employees find ne ays of doing a job Motivation ma#es employees quality conscious Motivation increases productivity very high Motivation stimulates both participation and production at or# Motivation comprehends jobs related behaviors Motivation increases attention to ards human resources along ith physical resources C8&!!en'e# of Moti1&tion )iverse and changing or#force Rightsizing" )o nsizing" Hire*n*/ire" 3ay*for*3erformance strategies Motives can only be inferred" not seen )ynamic nature of human needs O,0e)ti1e# of Moti1&tion High productivity (ncrease quality consciousness !timulate participation at or#

T8eo ie# of Moti1&tion E& !* T8eo ie# S)ientifi) M&n&'e"ent: Motivation by scientific management is associated ith /.?. $aylor's techniques of scientific management. $aylor said that people are primarily motivated by economic re ards and ill ta#e direction if offered an opportunity to improve their economic positions. 0ased on this $aylor described follo ing arguments 3hysical or# could be scientifically studied to determine optimal method of performance of a job ?or#ers could be more efficient by telling them ho they ere to do a job ?or#ers ould accept the above prescription if paid on differentiated piece or# basis )isadvantages % )ehumanized or#ers" treated them as mere factors of production" only stressed on monetary needs" ignored human needs H+"&n Re!&tion# Mo6e!: :lton Mayo's human relations model stressed on social contacts as motivational factor. Creater importance as given to informal groups. Ho ever too much reliance on social contacts to improve productivity as a major dra bac#. Conte"%o & * T8eo ie# Content T8eo ie# AMaslo 's Heed Hierarchy" Herzberg's ,*factors" 5lderfer's :RC" 5chievement Motivation $heoryB $ o)e## T8eo ie# ALroom's e<pectancy" 5dam's :quity" 3orter's 3erformance and !atisfaction ModelB Reinfo )e"ent )&te'o ie# ERG T8eo * (A!6e fe ): E3i#ten)e Re!&te6ne## G o9t8 :RC theory emphasizes more on three broad needs that is e<istence" relatedness and gro th. (ts hypothesis is that there may be more than one need operating at the same time. :RC theory further states that hen a higher level need is frustrating" the individual's desire to increase lo er level needs ta#es place. $hus :RC theory contains frustration* regression dimension. /rustration at higher level need may lead to regression at lo er level need. A61&nt&'e# % More consistent ith our #no ledge of differences among people" it is less restrictive and limiting" it is a valid version of need hierarchy. Di#&61&nt&'e# % Ho clear*cut guideline of individual behavior patterns" too early to pass a judgment on the overall validity of the theory. T9o-F&)to T8eo * (He 2,e ') /redric# Herzberg states that the motivation concept is generally driven by t o factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement" recognition" the or# itself" responsibility" advancement and gro th" hich are related to job satisfaction. Hygiene factors deal ith e<ternal factors li#e company policy" supervision" administration and or#ing conditions" salary" status" security and interpersonal relations. $hese factors are #no n as hygiene factors or job dissatisfiers" job conte<t factors. A61&nt&'e# % tremendous impact on stimulating thought on motivation at or#" increased understanding of role of motivation" specific attention to improve motivational levels" job design technique of job enrichment is contribution of herzberg" double dimensions of t o factors are easy to interpret and understand.

Di#&61&nt&'e# % 2imited by its methodology" reliability questioned" it focuses more on job satisfaction not on motivation" no overall measure of satisfaction utilized" inconsistent ith previous research" productivity factor ignored.

Definition 1: )ental condition, attitude, willingness Morale is a mental condition or attitude of individual and groups" illingness to co*operate. Definition 2: Attitudes, voluntary cooperation Morale is attitudes of individuals and groups to ards their or# environment and to ards voluntary cooperation to the full e<tent of their ability in the best possible interest of the organization. )istinction bet een Morale and MotivationE * Mo &!e +. >omposite of feelings" attitudes and sentiments that contribute to ards general satisfaction at or#place. ,. 5 /unction of freedom or restraint to ards some goal. -. (t mobilizes sentiments. .. Morale reflects Motivation. Moti1&tion +. Motivation moves person to action. ,. 5 3rocess of stimulating individuals into action to accomplish desired goals. -. 5 /unction of drives and needs. .. (t mobilizes energy. 7. Motivation is a potential to develop morale. hich determines their

I"%o t&n)e of Mo &!e &# & Re#%on#i,i!it* of M&n&'e"ent O '&ni2&tion C!i"&te: Morale is an important part of organization climate. Attit+6e# ( Senti"ent#: Morale reflects attitudes and sentiments to ards organization goals and objectives. $ o6+)ti1it*: Morale highly affects productivity and satisfaction of individuals. Tot&! S&ti#f&)tion: Morale is total satisfaction derived from employees job" boss and his organization. 5&,o $ o,!e"# So!1e6: High morale assists managers to overcome several labor problems li#e labor turnover" absenteeism" indiscipline" grievances" disharmony etc. Coo%e &tion: Morale helps to see# cooperation from the or#ers in getting higher production at minimum possible cost by reducing astages of time" man" machines and materials. $ o6+)tion ( $ o6+)ti1it*: 3roduction and productivity are directly affected by high morale in a positive manner.


Me&nin' of $e #onne! $o!i)* 5 3olicy is a 3lan of 5ction. (t is a statement of intentions committing the management to a general course of action. 5 3olicy may contain philosophy and principles as ell. Ho ever a policy statement is more specific and commits the management to a definite course of action. Hence 3ersonnel policy is a plan of action to be implemented by HR department to ards the organization and employees. 5 personnel policy spells out basic needs of the employees. $hrough personnel policy the personnel department ensure a consistent treatment to all personnel by minimizing favoritism and discrimination. 3ersonnel policy serves as a standard of performance for all employees. !ound personnel policies help build employee motivation and loyalty. 5nd this happens hen personnel policies reflect fair play and justice and help people gro ithin the organization. 3ersonnel policies are also plans of action to resolve intra*personal" inter*personal and inter*group conflicts. I"%o t&n)e of $e #onne! $o!i)* 3ersonnel policy is very important for an organization since it gives several benefits for managing your human resources effectively. (n the light of these benefits listed belo e ould be able to understand the relative importance of 3ersonnel policy. -&#i) Nee6#: 3ersonnel policy helps the management to thin# deeply about basic needs of organization and the employees. Con#i#tent T e&t"ent: 3ersonnel policies ensure consistent treatment of all personnel throughout the organization. Mini"i2e F&1o iti#": 3ersonnel policies help minimize favoritism and discrimination Contin+o+# &)tionE 3ersonnel policies ensure continuous action even if top management is changed. $hese policies promote stability. St&n6& 6 of $e fo "&n)e: 3ersonnel policies serve as a standard of performance. Moti1&tion ( 5o*&!t*: 3ersonnel policies help build employee motivation and loyalty. F&i $!&* ( .+#ti)e: 3ersonnel policies reflect established principles of fair play and justice. G o9t8: 3ersonnel policies help people gro ithin the organization.



0roadly" or#er's participation in management means associating representatives of or#ers at every stage of decision*ma#ing. 3articipative management is considered as a process by hich the or#er's share in decision*ma#ing e<tends beyond the decisions that are implicit in the specific content of the jobs they do. $his amounts to the or#ers having a share in the reaching of final managerial decisions in an enterprise. Definition 1: Association of 2or'ers in decision4ma'ing process ?or#ers' participation may be ta#en to cover all terms of association of or#ers and their representatives ith the decision*ma#ing process" ranging from e<change of information" consultations" decisions and negotiations to more institutionalized forms such as the presence of the or#ers' members on management or supervisory boards or even management by or#ers themselves. S)o%e of 9o 7e #M %& ti)i%&tion !cope of or#ers participation ranges over three managerial decision*ma#ing stages. So)i&! De)i#ion#: Hours of or#" elfare measures" or# rules" safety" health" sanitation and noise control. $e #onne! De)i#ion#: Recruitment and selection" promotions and transfers" grievance settlements" or# distribution E)ono"i) De)i#ion#: Methods of manufacturing" automation" lay offs" shut*do ns" mergers and acquisitions and other financial aspects. Met8o6# of ;o 7e #M $& ti)i%&tion in M&n&'e"ent +. 0oard 2evel ,. & nership -. >omplete >ontrol .. !taff >ouncils 7. 4oint >ouncils 8. >ollective 0argaining 1. 4ob :nlargement and :nrichment 9. !uggestion !chemes ;. Iuality >ircles +=. :mpo ered $eams ++. $otal Iuality Management +,. /inancial 3articipation $ e eF+i#ite# of S+))e##f+! $& ti)i%&tion +. >learly defined and complementary &bjectives ,. /ree flo of information and communication -. Representatives of or#ers from or#ers themselves .. &utside trade union participation should be avoided 7. ?or#ers' education and training 8. Ho threat by participation 1. 5ssociation at all levels of decision*ma#ing -enefit# of $& ti)i%&tion +. Cives identity to an employee ,. Motivates employee -. !elf*esteem" job satisfaction and cooperation improves


.. 7. 8. 1. 9.


Reduced conflicts and stress More commitment to goals 2ess resistance to change 2ess labor problems 0etter quality suggestions e<pected

:mployee associations are popularly #no n as unions. Ho ever these unions are not confined to only stri#es and negotiations. $heir role is much ider than this. @nions ma#e their presence felt in recruitment and selection" promotions" training" termination or lay off. Many programs" hich contribute to the Iuality of ?or# 2ife AI?2B and productivity" are underta#en by management in consultation ith and ith the cooperation of the unions. @nions also participate in deciding age and salary structure and negotiate revisions once in - or 7 years. $rade unions are voluntary organizations of or#ers or employers formed to promote their interests through collective action. $rade unions 5ct +;,8 defines a trade union as a combination" hether temporary or permanent formed primarily for the purpose of regulating the relation bet een +B ?or#men and :mployers ,B ?or#men and ?or#men -B :mployers and :mployers /or imposing restrictive conditions on the conduct of any trade or business and includes any federation of t o or more trade unions ;8* 6o e"%!o*ee# 0oin T &6e Union#A $o protect themselves against e<ploitation by management 0y force )issatisfaction 2ac# of 3o er @nion (nstrumentality RO5E OF CONSTRUCTI/E AND $OSITI/E UNION @nions have a crucial role to play in (ndustrial Relations. @nions have follo ing broad role or objectives as mentioned belo . $o redress the bargaining advantage of the individual or#er vis*R*vis the individual employer" by substituting joint or collective action for individual action. $o secure improved terms and conditions of employment for its members and the ma<imum degree of security to enjoy these terms and conditions. $o obtain improved status for the or#er in his or# or her or# $o increase the e<tent to hich unions can e<ercise democratic control over decisions" hich affect their interests by po er sharing at the national" corporate and plant levels. $he union po er is e<erted primarily at t o levels. (ndustry level to establish joint regulation on basic ages and hours ith an employer's association. 3lant level" here the shop ste ards organizations e<ercise joint control over some aspects of the organization of or# and localized terms and conditions of employment. @nions are party to national" local and plant level agreements" hich govern their actions to a greater or lesser e<tent" depending on their po er and on local circumstances. UNFAIR 5A-OR $RACTICES (ndustrial )isputes 5ct +;.1 specifies the follo ing as unfair labor practices


$o interfere" restrain" coerce or#men in the e<ercise of their right to organize" form" join or assist a trade union. $hreatening or#men ith discharge or dismissal $hreatening of loc#out or closure Cranting age increases to undermine trade union efforts $o dominate" interfere ith or support financially or socially by ta#ing active interest in forming o n trade union" and !ho ing partiality or granting favor to one of several trade unions to a non* recognized trade union $o establish employer sponsored trade unions $o encourage or discourage memberships in any trade union by discriminating or#man by punishing or discharging" changing seniority ratings" refuse promotions" giving unmerited promotions" discharging union office bearers $o discharge or dismiss or#men by victimizing" not in good faith" implicating in criminal case" for patently false reasons $o abolish or# of a regular nature $o transfer or#men $o sho favoritism or partiality $o replace or#ers $o recruit or#men during legal stri#es $o indulge in acts of violence or force $o refuse collective bargaining 3roposing and continuing loc#outs


)o nsizing necessarily means reducing or# force to an optimal level depending upon the business conditions and organizational needs. (t is said that an organization should be rightly staffed ie. (t should not be overstaffed and or understaffed. $here are broadly follo ing method used to do nsize the or#force as mentioned belo . Ret en)8"ent: (t means termination of service. (t is a termination for reasons other than disciplinary actions" retirement or superannuating" e<piry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre*conditions for retrenchment and not a right" hich a retrenched or#er can claim. (f notice and compensation are not given" the or#er ill not be called as retrenched. >ompensation is payable for +7 days ages for every completed year of service besides one month's notice or pay in lieu of notice. 0ut employee should have completed at least one year of complete service in order to receive compensation. 5&* Off# 2ay of is inability of the employer to provide employment to or#ers due to circumstances beyond his control such as shortage of po er" coal" brea#do n of machinery" natural calamity etc. (t is not a termination of service. 2ay off compensation can be claimed as a statutory right by the or#er if he has completed one year of continuous service or has or#ed for ,.= days on the surface or +;= days underground in +, calendar months. >ompensation payable is half of the ages. /o!+nt& * Reti e"ent S)8e"e# LR! are announced hen there is a huge pool of old aged manpo er occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. LR! in other ords is a retirement before the age of retirement.



&rganizational structure is the formal decision*ma#ing frame or# by hich job tas#s are divided" grouped" and coordinated. /ormalization is an important aspect of structure. (t is the e<tent to hich the units of the organization are e<plicitly defined and its policies" procedures" and goals are clearly stated. (t is the official organizational structure conceived and built by top management. $he formal organization can be seen and represented in chart form. 5n organization chart displays the organizational structure and sho s job titles" lines of authority" and relationships bet een departments. O '&ni#&tion C8& t#: $he organization charts are the sample and an understandable ay sho ing the formal organization structure*(t gives a clear overvie of the shape and structure of an organization. (t is an order and the design of an organization captured in a visual form. (t is a blue print or a basis for proper conceptualization" further thin#ing" a discussion board for further modifications ithout affecting the actual changes. $he organization chart ell dra n" can give an insight in to the organization" its hierarchical structure line and staff authority" authority and responsibility levels" chain of command" line of delegated authority" decentralization or other ise in an organization" span of control etc. (t also helps and guides the management in evolving changes environment and for faster realization of goals. ith the changes in the

(t is a good guide for the ne recruits in their initiation in the organization and in understanding the authority responsibility levels including his o n. Fo "&! O '&ni#&tion $he intentional structure of roles in a formally organised enterprise is a formal organisation (t should have an attribute of fle<ibility" room for discretion and the recognition of individual talents and the capacities. (n a group functioning the individual effort ill have to be chanelize through the group leader and has to be for the organization's good. Info "&! St +)t+ e $he informal organization is the net or#" unrelated to the firmFs formal authority structure" of social interactions among its employees. (t is the personal and social relationships that arise spontaneously as people associate ith one another in the or# environment. $he supervisor must realize that the informal organization affects the formal organization. $he informal organization can pressure group members to conform to the e<pectations of the informal group that conflict ith those of the formal organization. $his can result in the generation of false information or rumors and resistance to change desired by management. $he supervisor should recognize the e<istence of information groups" identify


the roles member play ithin these groups" and use #no ledge of the groups to or# effectively ith them. $he informal organization can ma#e the formal organization more effective by providing support to management" stability to the environment" and useful communication channels.

M&t i3 St +)t+ e (n a matri< organization" teams are formed and team members report to t o or more managers. M&t i3 #t +)t+ e# utilize functional and divisional chains of command simultaneously in the same part of the organization" commonly for one*of*a*#ind projects. (t is used to develop a ne product" to ensure the continuing success of a product to hich several departments directly contribute" and to solve a difficult problem. 0y superimposing a project structure upon the functional structure" a matri< organization is formed that allo s the organization to ta#e advantage of ne opportunities. $his structure assigns specialists from different functional departments to or# on one or more projects being led by project managers. $he matri< concept facilitates or#ing on concurrent projects by creating a dual chain of command" the project Aprogram" systems" or productB manager and the functional manager. 3roject managers have authority over activities geared to ard achieving organizational goals hile functional managers have authority over promotion decisions and performance revie s. 5n e<ample is an aerospace firm ith a contract from H5!5. Di1i#ion&! St +)t+ e (n a 6i1i#ion&! o '&ni2&tion" corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. (n a conglomerate organization" divisions may be unrelated. )ivisional structures are made up of self*contained strategic business units that each produces a single product. /or e<ample" Ceneral MotorsF divisions include >hevrolet" &ldsmobile" 3ontiac" and >adillac. 5 central headquarters" focusing or results" coordinates and controls the activities" and provides support services bet een divisions. /unctional departments accomplish division goals. 5 ea#ness ho ever" is the tendency to duplicate activities among divisions. O '&ni) St +)t+ e &n the other hand" the organic structure is more fle<ible" more adaptable to a participative form of management" and less concerned ith a clearly defined structure. $he organic organization is open to the environment in order to capitalize upon ne opportunities. &rganic organizations have a flat structure ith only one or t o levels of management. F!&t o '&ni2&tion# emphasize a decentralized approach to management that encourage high employee involvement in decisions. $he purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customersF needs or changes in the business environment. $he supervisor tends to have a more personal relationship ith his or her employees. F+n)tion&! St +)t+ e /unctions or divisions arrange traditional organizations. (n a f+n)tion&! o '&ni2&tion" authority is determined by the relationships bet een group functions and activities. /unctional structures group similar or related occupational specialties or processes together under the familiar headings of finance" manufacturing" mar#eting" accounts receivable" research" surgery" and photo finishing. :conomy is achieved through specialization.


Ho ever" the organization ris#s losing sight of its overall interests as different departments pursue their o n goals.