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Human Resource Management

This book is a part of the course by Jaipur National University, Jaipur.


This book contains the course content for Human Resource Management.

JNU, Jaipur
First Edition 2013

The content in the book is copyright of JNU. All rights reserved.


No part of the content may in any form or by any electronic, mechanical, photocopying, recording, or any other
means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior permission of
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JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the
content whenever the need arises, and to vary it at any time without prior notice.
Index

I. Content..................................................................... II

II. List of Figures........................................................XI

III. List of Tables...................................................... XII

IV. Abbreviations.................................................... XIII

V. Case Study . ......................................................... 152

VI. Bibliography....................................................... 155

VII. Self Assessment Answers................................. 159

Book at a Glance

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Contents
Chapter I........................................................................................................................................................ 1
Human Resource Management-An Introduction...................................................................................... 1
Aim................................................................................................................................................................. 1
Objectives....................................................................................................................................................... 1
Learning outcome........................................................................................................................................... 1
1.1 Introduction............................................................................................................................................... 2
1.2 Responsibilities of Human Resource Management.................................................................................. 2
1.2.1 Human Resource Management Goal........................................................................................ 2
1.2.2 Recruitment and Selection of Candidates................................................................................. 2
1.2.3 Training and Development of Employee.................................................................................. 2
1.2.4 Organisational Development.................................................................................................... 2
1.2.5 Career Development of the Employee...................................................................................... 2
1.2.6 Job Design................................................................................................................................. 3
1.2.7 Performance Management System........................................................................................... 3
1.3 Comparison between Personnel Management and Human Resource Management................................. 3
1.3.1 Comparison on the basis of Beliefs and Assumption............................................................... 3
1.3.2 Comparison on the basis of Strategic Aspects.......................................................................... 3
1.3.3 Comparison on the basis of Line Management........................................................................ 4
1.3.4 Key Levers................................................................................................................................ 4
1.4 Importance of the Human Resource Management.................................................................................... 4
1.5 Role of the Human Resource Management.............................................................................................. 5
1.6 Human Relation Theory............................................................................................................................ 5
1.7 Revolution of the Human Resource Management.................................................................................... 6
1.8 Human Relation Concept.......................................................................................................................... 6
1.9 To Understand Human Behavior............................................................................................................... 6
Summary........................................................................................................................................................ 7
References...................................................................................................................................................... 7
Recommended Reading................................................................................................................................ 7
Self Assessment.............................................................................................................................................. 8

Chapter II.................................................................................................................................................... 10
Human Resource Management in India................................................................................................... 10
Aim............................................................................................................................................................... 10
Objectives..................................................................................................................................................... 10
Learning outcome......................................................................................................................................... 10
2.1 Introduction..............................................................................................................................................11
2.2 Concern of the Human Resource Management Department...................................................................11
2.3 Significance of the Human Resource Department ..................................................................................11
2.4 History of the Human Resource Management in India...........................................................................11
2.5 Indian Management is Unique................................................................................................................ 12
2.6 Human Relation Movement in India....................................................................................................... 12
2.7 Scope of Human Resource Management in India................................................................................... 15
Summary...................................................................................................................................................... 16
References.................................................................................................................................................... 16
Recommended Reading.............................................................................................................................. 16
Self Assessment............................................................................................................................................ 17

Chapter III................................................................................................................................................... 19
Human Resource Planning......................................................................................................................... 19
Aim............................................................................................................................................................... 19
Objectives..................................................................................................................................................... 19
Learning outcome......................................................................................................................................... 19

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3.1 Definition................................................................................................................................................ 20
3.1.1 Human Resource Planning...................................................................................................... 20
3.2 Benefits of HRP...................................................................................................................................... 20
3.3 Uses of HRP............................................................................................................................................ 20
3.4 Activities Involve in HRP....................................................................................................................... 20
3.5 Need for HRP.......................................................................................................................................... 21
3.6 Process of HRP....................................................................................................................................... 21
3.6.1 Benefits of HRP...................................................................................................................... 22
3.7 Human Resource Planning System......................................................................................................... 23
3.8 Responsibility of Human Resource Planning Department..................................................................... 23
Summary...................................................................................................................................................... 25
References.................................................................................................................................................... 25
Recommended Reading.............................................................................................................................. 25
Self Assessment............................................................................................................................................ 26

Chapter IV................................................................................................................................................... 28
Recruitment and Selection......................................................................................................................... 28
Aim............................................................................................................................................................... 28
Objectives..................................................................................................................................................... 28
Learning outcome......................................................................................................................................... 28
4.1 Introduction............................................................................................................................................. 29
4.2 Concept of Recruitment and Selection................................................................................................... 29
4.2.1 Manpower Planning................................................................................................................ 29
4.2.2 Job Analysis Method............................................................................................................... 29
4.2.3 Identification of Vacancies...................................................................................................... 30
4.2.4 Preparation of Budget............................................................................................................. 30
4.2.5 Preparation and Publication of Information............................................................................ 30
4.2.6 Reception of Application Form............................................................................................... 30
4.3 Other Methods of Recruitment............................................................................................................... 31
4.3.1 Campus Recruitment............................................................................................................... 31
4.3.2 Walk-In Interview................................................................................................................... 31
4.3.3 Employees Referrals.............................................................................................................. 31
4.3.4 Labor Unions.......................................................................................................................... 31
4.3.5 Indoctrination Seminars.......................................................................................................... 32
4.3.6 Unconsolidated Application.................................................................................................... 32
4.3.7 Nepotism................................................................................................................................. 32
4.3.8 Leasing.................................................................................................................................... 32
4.3.9 Voluntary Organisations.......................................................................................................... 32
4.3.10 Computer Data Bank............................................................................................................ 32
4.4 Recruitment and Selection Policy........................................................................................................... 33
4.4.1 Selection Policy...................................................................................................................... 33
4.4.2 Recruitment Policy................................................................................................................. 33
4.5 Recruitment Practice In India................................................................................................................. 33
4.6 Selection Technique................................................................................................................................ 34
4.7 Evaluation and Selection Criteria........................................................................................................... 34
4.8 The Selection Process............................................................................................................................. 35
4.8.1 Preliminary Interviews............................................................................................................ 35
4.8.2 Application Blanks.................................................................................................................. 35
4.8.3 Check of References............................................................................................................... 36
4.8.4 Written Tests........................................................................................................................... 36
4.8.5 Employment Interviews.......................................................................................................... 36
4.8.6 Medical Examination.............................................................................................................. 36
4.8.7 Appointment Letter................................................................................................................. 36
4.8.8 Informal Interview.................................................................................................................. 36

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4.8.9 Formal Interview..................................................................................................................... 36
4.8.10 Patterned Interview............................................................................................................... 37
4.8.11 Depth Interview.................................................................................................................... 37
4.8.12 Stress Interview..................................................................................................................... 37
4.8.13 Group Interview.................................................................................................................... 37
4.8.14 Panel Interview..................................................................................................................... 37
4.9 Approval by Manager............................................................................................................................. 38
4.10 Medical Examination............................................................................................................................ 38
4.11 Induction............................................................................................................................................... 38
Summary .................................................................................................................................................... 39
References.................................................................................................................................................... 39
Recommended Reading.............................................................................................................................. 39
Self Assessment............................................................................................................................................ 40

Chapter V..................................................................................................................................................... 42
Training and Development......................................................................................................................... 42
Aim............................................................................................................................................................... 42
Objectives..................................................................................................................................................... 42
Learning outcome......................................................................................................................................... 42
5.1 Introduction............................................................................................................................................. 43
5.2 Concept of Training................................................................................................................................ 43
5.3 Objective of Training.............................................................................................................................. 43
5.3.1 To Increase Productivity......................................................................................................... 43
5.3.2 To Improve Quality................................................................................................................. 43
5.3.3 To Help a Company Fulfill its Future Personnel Needs......................................................... 43
5.3.4 To Improve Organisational Climate........................................................................................ 43
5.3.5 Obsolescence Prevention........................................................................................................ 44
5.3.6 Personal Growth..................................................................................................................... 44
5.4 Difference between Training and Development..................................................................................... 44
5.5 Objective of Training.............................................................................................................................. 44
5.5.1 Acquiring Intellectual Knowledge.......................................................................................... 44
5.5.2 Acquiring Manual Skills......................................................................................................... 44
5.5.3 Acquiring Problem-solving Skills........................................................................................... 45
5.6 Importance of Training........................................................................................................................... 45
5.7 Benefits of Training................................................................................................................................ 45
5.8 Training Need Identification................................................................................................................... 46
5.9 Total Organisational Analysis................................................................................................................. 46
5.10 Organisation Analysis Requirements.................................................................................................... 46
5.11 Organisational Diagnosis...................................................................................................................... 47
5.12 Task Analysis........................................................................................................................................ 47
5.12.1 Task Lists.............................................................................................................................. 47
5.12.2 Job Breakdown..................................................................................................................... 48
5.12.3 Job Performance................................................................................................................... 48
5.13 Performance Analysis........................................................................................................................... 49
5.14 Training Needs Identification................................................................................................................ 49
5.15 Different Kinds of Training Needs....................................................................................................... 49
5.16 Methodology of Training and Development......................................................................................... 49
5.16.1 On-the-job Technique........................................................................................................... 49
5.16.2 Off-the-job Technique........................................................................................................... 49
5.16.3 Orientations are for New Employees.................................................................................... 50
5.17 Training and Development Process...................................................................................................... 50
5.18 Simulation Exercises and Role Paying................................................................................................. 50
5.18.1 Audiovisual........................................................................................................................... 50
5.18.2 Job Rotation.......................................................................................................................... 51

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5.18.3 Apprenticeship...................................................................................................................... 51
5.18.4 Internship.............................................................................................................................. 51
5.18.5 Programmed Learning.......................................................................................................... 51
5.18.6 Laboratory Training.............................................................................................................. 51
5.19 Evaluating Training Program................................................................................................................ 51
5.20 What Should Be Evaluated?................................................................................................................. 51
5.21 Training Evaluation Outcomes............................................................................................................. 52
5.21.1 Reactions............................................................................................................................... 52
5.21.2 Learning................................................................................................................................ 53
5.21.3 Behavior................................................................................................................................ 53
5.21.4 Results................................................................................................................................... 53
Summary...................................................................................................................................................... 54
References.................................................................................................................................................... 54
Recommended Reading.............................................................................................................................. 54
Self Assessment............................................................................................................................................ 55

Chapter VI .................................................................................................................................................. 57
Employees Growth...................................................................................................................................... 57
Aim............................................................................................................................................................... 57
Objectives..................................................................................................................................................... 57
Learning outcome......................................................................................................................................... 57
6.1 Introduction............................................................................................................................................. 58
6.2 What is Career Planning?........................................................................................................................ 58
6.3 Importance of Career Planning............................................................................................................... 58
6.4 Succession Planning................................................................................................................................ 59
6.5 Need for Succession Planning................................................................................................................ 59
6.6 Other Career Programs........................................................................................................................... 59
6.6.1 Work Family Programs........................................................................................................... 59
6.6.2 Relocation Assistance and Hiring Practices............................................................................ 60
6.6.3 Work Family Seminar and Flexible HR Practices.................................................................. 60
6.6.4 Flexible Work Schedules........................................................................................................ 60
6.6.5 Outplacement Program........................................................................................................... 60
6.6.6 Special Programs for Women, Minorities and Employees with Disabilities......................... 61
6.6.7 Fast Track Employees............................................................................................................. 61
Summary...................................................................................................................................................... 62
References.................................................................................................................................................... 62
Recommended Reading.............................................................................................................................. 62
Self Assessment............................................................................................................................................ 63

Chapter VII ................................................................................................................................................ 65


Performance Appraisal............................................................................................................................... 65
Aim............................................................................................................................................................... 65
Objectives..................................................................................................................................................... 65
Learning outcome......................................................................................................................................... 65
7.1 Introduction............................................................................................................................................. 66
7.2 Concept and Need of Employee Review................................................................................................ 66
7.3 Concept of Performance Appraisal......................................................................................................... 67
7.3.1 Objectives of Performance Appraisal..................................................................................... 67
7.4 Types of Appraisal Methods................................................................................................................... 67
7.4.1 Critical Incident Method......................................................................................................... 67
7.4.2 Weighted Checklist Method.................................................................................................... 67
7.4.3 Paired Comparison Analysis................................................................................................... 67
7.4.4 Graphic Rating Scales............................................................................................................. 68
7.4.5 Essay Evaluation Method....................................................................................................... 68

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7.4.6 Behaviorally Anchored Rating Scales.................................................................................... 68
7.4.7 Performance Ranking Method................................................................................................ 68
7.4.8 Management by Objective (MBO) Method............................................................................ 68
7.4.9 360 Degree Performance Appraisal........................................................................................ 68
7.4.10 Forced Ranking (Forced Distribution).................................................................................. 68
7.4.11 Behavioral Observation Scale............................................................................................... 68
7.5 360 Degree Performance Appraisal........................................................................................................ 68
7.6 Steps of the Performance Appraisal........................................................................................................ 69
7.6.1 Superiors................................................................................................................................. 69
7.6.2 Self-assessment....................................................................................................................... 69
7.6.3 Peers........................................................................................................................................ 70
7.6.4 Subordinates............................................................................................................................ 71
7.6.5 Customers............................................................................................................................... 71
7.7 Important Factor in the 360 Degree Feedbacks...................................................................................... 72
7.8 Advantages of the 360 Degree Appraisal................................................................................................ 72
7.9 Problem with the 360 Degree Appraisal Process.................................................................................... 72
7.10 Management by Objectives (MBO)...................................................................................................... 73
7.11 Unique Features and Advantages of MBO........................................................................................... 73
7.12 Benefit of the Performance Appraisal................................................................................................... 74
Summary...................................................................................................................................................... 76
References.................................................................................................................................................... 76
Recommended Reading.............................................................................................................................. 76
Self Assessment............................................................................................................................................ 77

Chapter VIII................................................................................................................................................ 79
Compensation Management...................................................................................................................... 79
Aim............................................................................................................................................................... 79
Objectives..................................................................................................................................................... 79
Learning outcome......................................................................................................................................... 79
8.1 Introduction............................................................................................................................................. 80
8.1.1 Components of Compensation System................................................................................... 80
8.2 Types of Compensation........................................................................................................................... 80
8.2.1 Direct Compensation.............................................................................................................. 80
8.2.2 Indirect Compensation............................................................................................................ 81
8.3 Need of Compensation Management...................................................................................................... 82
8.4 Managing Compensation........................................................................................................................ 82
8.4.1 Subsistence Theory................................................................................................................. 82
8.4.2 Standard of Living Theory...................................................................................................... 83
8.4.3 Residual Claimant Theory...................................................................................................... 83
8.4.4 The Wage Fund Theory........................................................................................................... 83
8.4.5 Demand and Supply Theory................................................................................................... 83
8.4.6 Marginal Productivity Theory................................................................................................. 83
8.4.7 Purchasing Power Theory....................................................................................................... 83
8.4.8 The Bargaining Theory of Wages........................................................................................... 83
8.4.9 Classification of Wages........................................................................................................... 84
8.5 Designing and Administering Benefits................................................................................................... 85
8.5.1 Collective Bargaining............................................................................................................. 85
8.5.2 Mediation and Conciliation.................................................................................................... 85
8.5.3 Investigation............................................................................................................................ 85
8.5.4 Arbitration............................................................................................................................... 85
8.5.5 Adjudication............................................................................................................................ 85

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Summary...................................................................................................................................................... 87
References.................................................................................................................................................... 87
Recommended Reading.............................................................................................................................. 87
Self Assessment............................................................................................................................................ 88

Chapter IX................................................................................................................................................... 90
Job Evaluation............................................................................................................................................. 90
Aim............................................................................................................................................................... 90
Objectives..................................................................................................................................................... 90
Learning outcome......................................................................................................................................... 90
9.1 Introduction............................................................................................................................................. 91
9.2 Assess Employee Contribution............................................................................................................... 91
9.3 Definition of Job Evaluation................................................................................................................... 91
9.4 Objective of Job Evaluation.................................................................................................................... 91
9.5 Essentials for the Success of Job Evaluation Programme...................................................................... 92
9.6 Procedure of Job Evaluation................................................................................................................... 92
9.6.1 Analyse and Prepare Job Description..................................................................................... 92
9.6.2 Select and Prepare a Job evaluation Plan................................................................................ 92
9.6.3 Classify Jobs........................................................................................................................... 92
9.6.4 Install the Programme............................................................................................................. 93
9.6.5 Maintain the Programme........................................................................................................ 93
9.7 Job Evaluation Method........................................................................................................................... 93
9.8 Advantages of Job Evaluation................................................................................................................. 95
9.9 Limitations of Job Evaluation................................................................................................................. 95
9.10 Job Satisfaction..................................................................................................................................... 95
9.11 Determinants of Job Satisfaction ......................................................................................................... 96
9.12 Promotion and Transfers....................................................................................................................... 96
9.13 Promotion.............................................................................................................................................. 96
9.14 Definitions of Promotion...................................................................................................................... 96
9.15 Transfers................................................................................................................................................ 97
9.16 Types of Transfer.................................................................................................................................. 97
Summary...................................................................................................................................................... 98
References.................................................................................................................................................... 98
Recommended Reading.............................................................................................................................. 98
Self Assessment............................................................................................................................................ 99

Chapter X ................................................................................................................................................. 101


Morale........................................................................................................................................................ 101
Aim............................................................................................................................................................. 101
Objectives................................................................................................................................................... 101
Learning outcome....................................................................................................................................... 101
10.1 Introduction......................................................................................................................................... 102
10.2 Meaning of Morale............................................................................................................................. 102
10.3 What is Low Morale?.......................................................................................................................... 102
10.4 Importance of Morale......................................................................................................................... 103
10.5 Employees Morale............................................................................................................................. 103
10.5.1 The Employees Background . ........................................................................................... 103
10.5.2 An Employees Personal Environment Encompasses......................................................... 104
10.5.3 Management Practices Influencing Morale Include........................................................... 104
10.5.4 Bottom Line........................................................................................................................ 104
10.6 Morale and Productivity..................................................................................................................... 104
10.7 Measurement of Employees Morale.................................................................................................. 105
10.8 Interview Method................................................................................................................................ 105
10.8.1 Guided Interview................................................................................................................ 105

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10.8.2 Unguided Interview............................................................................................................ 105
10.9 A Combination of the Guided and Unguided Interview..................................................................... 106
10.10 Companys Record Method.............................................................................................................. 106
10.11 General Impression of the Supervisor............................................................................................... 106
10.12 Listening-in by a Trained Observer.................................................................................................. 106
10.13 The Questionnaire Method............................................................................................................... 106
10.14 Conducting the Survey...................................................................................................................... 107
10.15 Measurement of Employee Morale................................................................................................... 107
10.16 Improving Morale............................................................................................................................. 107
Summary.................................................................................................................................................... 109
References.................................................................................................................................................. 109
Recommended Reading............................................................................................................................ 109
Self Assessment...........................................................................................................................................110

Chapter XI .................................................................................................................................................112
Motivation...................................................................................................................................................112
Aim..............................................................................................................................................................112
Objectives....................................................................................................................................................112
Learning outcome........................................................................................................................................112
11.1 Introduction..........................................................................................................................................113
11.2 Concept of Motivation.........................................................................................................................113
11.3 Definition of Motivation by Different Author......................................................................................113
11.4 The Motivation Cycle..........................................................................................................................114
11.5 Working Situation of Employees.........................................................................................................115
11.6 Motivation Techniques.........................................................................................................................115
11.7 Steps of Motivation..............................................................................................................................115
11.8 Theories of Motivation.........................................................................................................................117
11.9 Maslows Hierarchy of Needs..............................................................................................................117
11.10 McGregors Theory X and Theory Y.................................................................................................119
11.10.1 Theory X............................................................................................................................119
11.10.2 Theory Y............................................................................................................................119
11.10.3 Theory Z.............................................................................................................................119
11.10.4 Some Important Points...................................................................................................... 120
11.11 Herzbergs Hygiene & Motivational Factors.................................................................................... 120
11.11.1 Hygiene or Dissatisfiers.................................................................................................... 120
11.11.2 Motivators or Satisfiers..................................................................................................... 121
11.12 Analysis of Maslow, Herzberg, and McGregors Theories............................................................... 121
Summary.................................................................................................................................................... 122
References.................................................................................................................................................. 122
Recommended Reading............................................................................................................................ 123
Self Assessment.......................................................................................................................................... 124

Chapter XII............................................................................................................................................... 126


Grievance and Discipline Procedure....................................................................................................... 126
Aim............................................................................................................................................................. 126
Objectives................................................................................................................................................... 126
Learning outcome....................................................................................................................................... 126
12.1 Introduction......................................................................................................................................... 127
12.2 Causes of Grievance Arise.................................................................................................................. 127
12.3 Pre-requisites of a Grievance Procedure............................................................................................. 128
12.4 Grievance Handling Procedure........................................................................................................... 129
12.5 Benefits of the Grievance Handling.................................................................................................... 129
12.6 Grievance Handling............................................................................................................................ 129
12.6.1 Initial Step........................................................................................................................... 129

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12.6.2 Intermediate Step................................................................................................................ 130
12.6.3 Final Company-Union Step................................................................................................ 130
12.7 Arbitration........................................................................................................................................... 130
12.8 Concept of the Discipline.................................................................................................................... 130
12.9 Principles for Maintenance of Discipline........................................................................................... 131
12.10 Meaning and Objective of Discipline............................................................................................... 131
12.11 The Aims and Objectives of Discipline ........................................................................................... 131
12.12 Disciplinary Procedure...................................................................................................................... 132
12.13 Basic Ingredients or Guidelines of a Disciplinary Action................................................................ 132
12.14 Disciplinary:Action Penalties........................................................................................................... 132
12.15 Procedure for Disciplinary................................................................................................................ 132
12.15.1 An Accurate Statement of the Disciplinary Problem........................................................ 133
12.15.2 Collection of Data or Fact Bearing on the Case............................................................... 133
12.15.3 Selection of Tentative Penalty.......................................................................................... 133
12.15.4 Choice of Penalty............................................................................................................. 133
Summary.................................................................................................................................................... 134
References.................................................................................................................................................. 134
Recommended Reading............................................................................................................................ 134
Self Assessment.......................................................................................................................................... 135

Chapter XIII.............................................................................................................................................. 137


Group and Leadership............................................................................................................................. 137
Aim............................................................................................................................................................. 137
Objectives................................................................................................................................................... 137
Learning outcome....................................................................................................................................... 137
13.1 Concept of Group................................................................................................................................ 138
13.1.1 Definition of Group............................................................................................................. 138
13.2 Characteristic of a Group.................................................................................................................... 138
13.3 Group Fulfills the Needs of its Members............................................................................................ 138
13.4 Group Serves the Purposes................................................................................................................. 138
13.5 Types of Groups.................................................................................................................................. 139
13.6 Formal Work Groups.......................................................................................................................... 139
13.7 Informal Work Groups........................................................................................................................ 139
13.7.1 Informal Work Groups and Security Needs........................................................................ 139
13.7.2 Informal Work Groups and Social Needs........................................................................... 139
13.7.3 Informal Work Groups and Esteem Needs......................................................................... 140
13.7.4 Advantages of Informal Groups.......................................................................................... 140
13.7.5 Disadvantages of Informal Groups..................................................................................... 140
13.7.6 Elements of Group Behavior.............................................................................................. 140
13.8 Group Decision Making...................................................................................................................... 142
13.9 Advantages of Group Decision Making.............................................................................................. 142
13.10 Potential Problems with Group Decisions........................................................................................ 142
13.11 Problems of Individual Dominance.................................................................................................. 142
13.12 Group Dynamics............................................................................................................................... 143
13.13 Principles of Group Dynamics.......................................................................................................... 143
13.14 Definition of Leadership................................................................................................................... 143
13.15 Concept of Leadership...................................................................................................................... 144
13.16 Characteristics of Leadership............................................................................................................ 144
13.17 Co-existence with Followership....................................................................................................... 144
13.18 Responsibility................................................................................................................................... 144
13.19 Understanding Nature....................................................................................................................... 144
13.20 Situation............................................................................................................................................ 144
13.21 Importance of Leadership................................................................................................................. 144
13.22 Impact of Leadership in an Organisation.......................................................................................... 145

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13.23 Leadership Theories.......................................................................................................................... 145
13.24 Contingency Theories....................................................................................................................... 146
13.25 Situational Leadership Theory.......................................................................................................... 147
13.26 The Path-Goal Theory....................................................................................................................... 147
13.27 Contemporary Theories.................................................................................................................... 147
13.28 Charismatic Leaders.......................................................................................................................... 147
13.29 Transformational Leader................................................................................................................... 148
13.30 Team Leader...................................................................................................................................... 148
13.31 Classification of Leadership.............................................................................................................. 148
Summary.................................................................................................................................................... 149
References.................................................................................................................................................. 149
Recommended Reading............................................................................................................................ 149
Self Assessment.......................................................................................................................................... 150

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List of Figures
Fig. 3.1 Block diagram of HRP..................................................................................................................... 22
Fig. 3.2 Flowchart of HRP............................................................................................................................ 23
Fig. 7.1 Performance appraisal..................................................................................................................... 69
Fig. 7.2 Management by objectives.............................................................................................................. 74
Fig. 11.1 Motivation cycle...........................................................................................................................114
Fig. 11.2 Maslows hierarchy of need..........................................................................................................118
Fig. 11.3 Herzbergs hygiene and motivational factors.............................................................................. 120
Fig. 12.1 Grievance handling procedure..................................................................................................... 129

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List of Tables
Table 1.1 Comparison of personnel management and HRM on the basis of beliefs and assumption............ 3
Table 1.2 Comparison of personnel management and HRM on the of basis strategic aspects....................... 3
Table 1.3 Comparison of personnel management and HRM on the basis of line management..................... 4
Table 1.4 Comparison of personnel management and HRM on the basis of key levers................................ 4
Table 2.1 Human relation movement in India.............................................................................................. 14
Table 4.1 Application blanks......................................................................................................................... 35
Table 5.1 Difference between training and development............................................................................. 44
Table 5.2 Training evaluation outcome......................................................................................................... 52
Table 10.1 Morales definition.................................................................................................................... 102
Table 11.1 Motivation by different author...................................................................................................113
Table 11.2 Maslow hierarchy of need..........................................................................................................118
Table 12.1 Definition of grievances............................................................................................................ 127
Table 12.2 Definition of discipline.............................................................................................................. 131
Table 13.1 Definition of group.................................................................................................................... 138

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Abbreviations

CM - Configuration Management
CMM - Capability Maturity Model
CMS - Changes Management System
ISO - International Organisation for Standardisation
MBO - Management of Objectives
SEI - Software Engineering Institute
TQM - Total Quality Management
WBS - Work Breakdown Structure

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Chapter I
Human Resource Management-An Introduction

Aim
The aim of this chapter is to:

explain the role of human resource management in an organisation

enlist the responsibilities of human resource management (HRM)

elucidate the human relation concept

Objectives
The objectives of this chapter are to:

explain human resource management

explain the responsibilities of human resource management

describe about the revolution of human resource management

Learning outcome
At the end of this chapter, you will be able to:

understand the responsibilities of human resource management

differentiate between personnel management and human resource management

recognise human resource management as a career option

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Human Resource Management

1.1 Introduction
Human Resource Management is the strategic and logical approach of every management system. Human Resource
Management has replaced the Personnel management, as it brings together the most valued asset of the organisation
i.e. the employees of an organisation which contribute to the achievement of the objective of the business. Human
Resource Management (HRM) simply means employing people, developing their competence utilising, maintaining
and compensating their services for getting the job done as per the requirement of organisations.

There are some factors discussed below which may result in success or failure of any organisation
The business and political surroundings that can influence an undesirable thinking in the masses.
Lack of resources that can reduce the productivity.
Incompetency of the employees that can degrade the quality of the product.
Lack of constructive motivation can lower employees involvement in work.
Lack of supervision can lead to inefficiency.
Most important factor is the communication gap that exists between the workers and the management. Such
filtration of communication can result in serious organisational conflicts.

1.2 Responsibilities of Human Resource Management


The proper steps carried out to improve performance, productivity, relation between employees and management.
Let us go through the responsibility of the Human Resource management on by one:

1.2.1 Human Resource Management Goal


Goal of the Human Resource management is to communicate with the people in the organisations.
They have to bring the employees and the management together and improve productivity and efficiency
collectively.
The main goal of Human Resource Management is to use proper human resources, develop their skills and
motivate them for doing efficient work by ensuring higher productivity and producing better quality.

1.2.2 Recruitment and Selection of Candidates


Human Resource Management team has to choose correct candidates for a particular job.
Selection process is carried out by taking interviews of candidates and examines their qualification and
ability.

1.2.3 Training and Development of Employee


Training an individual is carried out by recognising the area where the candidate has to be trained. It is done by
developing the key competence through planning and learning process.

Proper training will enhance the capability of an individual and enable him to perform well in current and in future
job.

1.2.4 Organisational Development


This element helps assuring healthy inter and intra relationships.
Moreover, it helps an employee to work in the organisation and cope up with the changes made in the
organisation.

1.2.5 Career Development of the Employee


This ensures that the employee will stay back with the organisation and it also gives job satisfaction to the
employee.

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1.2.6 Job Design
As per the competence and training given to the individual, management has to decide the job allocation of
candidates.

1.2.7 Performance Management System


The management and the employees communicate with each other and can address their concerns which ensure
smooth functioning of the organisation. Furthermore, rewarding employees gives encouragement to the workers.

1.3 Comparison between Personnel Management and Human Resource Management


1.3.1 Comparison on the basis of Beliefs and Assumption
Following table shows comparison between personnel management and human resource management on basis of
beliefs and assumptions

Dimension Personnel Management Human Resource Management


Careful description of written Aim to be beyond contract or
Contract
contract else can do

Rules Importance of planning Impatience with rule

Mutuality procedures and clear


Guide to management plan action Business-need
rules

Behavior referent Norm / Customs and practice Value/mission

Managerial task vis-a vis Labor Monitoring Nurturing

Nature of relations Pluralist Unitarist

Conflict Institutionalised De-emphasised

Table 1.1 Comparison of personnel management and HRM on the basis of beliefs and assumption

1.3.2 Comparison on the basis of Strategic Aspects


Following table shows comparison between personnel management and human resource management on basis of
strategic aspects

Dimesion Personnel Management Human Resource Management

Key Relations Labor management Customer

Initiatives Piecemeal Integrated

Corporate Plan Marginal Central

Speed of decision Slow Fast

Table 1.2 Comparison of personnel management and HRM on the of basis strategic aspects

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Human Resource Management

1.3.3 Comparison on the basis of Line Management


Following table shows comparison between personnel management and human resource management on basis of
line management

Dimension Personnel Management Human Resource Management


Management Role Transactional Transformational leadership
Key managers Personnel/IR Specialists General/ Business/ line managers
Communication Indirect Direct
Standardisation High(e.g. parity an issue) Low(e.g. parity not seen as relevant)
Prized management Negotiation Facilitation

Table 1.3 Comparison of personnel management and HRM on the basis of line management

1.3.4 Key Levers

Dimension Personnel Management Human Resource Management

Selection Separate, marginal test Integrated, key task

Pay Job evolution(fixed grades) Performance-related

Conditions Separately negotiated Harmonisation

Labor management Collective bargaining contracts Toward individual contracts


Thrust of relations with Regulated through facilities and Marginalised(with exception of some
stewards training bargaining for change models)
Job categories and grade Many Few

Communication Restricted Flow Increased flow

Job design Division of the labor Teamwork

Conflict handling Reach temporary truces Manage climate and culture

Training and development Controlled access to courses Learning companies

Focus of the attention Personnel Wide ranging cultural

For interventions Procedures Structural and personnel strategies

Table 1.4 Comparison of personnel management and HRM on the basis of key levers

1.4 Importance of the Human Resource Management


Following points describes the importance of HRM
Lawrence aptly describes the managers job as a human relations job that functions through several major
activities and that human relationship is beginning and the end of the management job.
Human Resource Management doesnt produce any profit or neither can it earn any revenue, but it can have a
hold on the organisation that can improve productivity. Whereas, it can also produce rules and regulations by
which they can motivate workforce to improve their performance.
Human resource is an essential support function.
HRM has to manage money, market, material, machines and men.

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1.5 Role of the Human Resource Management
Following points describes the role of HRM
To enable the management to achieve organisational objectives through its workforce.
To ensure that the organisation fulfills all the government and social obligations.
To assist the organisation in building right number and type of employees to fulfill its goals.
To maintain performance standards and increase productivity through effective job design.
To provide an adequate orientation, training and development program.
To provide performance-related feedback and ensure effective two-way communication.
To utilise people to the fullest capacity and potential.
To create a climate in which employees are encouraged to develop and utilise their skills to the fullest.
To create and maintain a safe and healthy work environment.
To establish and maintain a harmonious employer and employee relationship.
To help the organisation to retain productive employees.

1.6 Human Relation Theory


Human relations management theory encompasses a rich and diverse tradition of models, ideas, techniques and
research findings that often trace their roots back to the Hawthorne Experiments conducted during the late 1920s.
Researchers putting into practice experiments at the Hawthorne plant of Western Electric (in Cicero, IL) placed
two groups of employees doing the similar work into separate rooms.
One group was treated as the control, and the second was exposed to a variety of experimental motivations such
as decreased lighting, rest pauses, increased lighting and so on.
The researchers, F.J. Roethlisberger of Harvard and W.J. Dickson of Western Electric management, predicted
the experiment to guide different levels of the management for the investigational group.
This philosophy was in vogue for the day, where traditional organisation theory conceived the organisational
system as a mechanism that could be influenced or readjusted to influence employees.
To the astonishment of the researchers, both groups increased their performance. Following analysis of these
surprising results led Roethlisberger and Dickson to conclude that the new design was tricky, which allowed
inappropriate factors to enter the design that led to these surprising results.
What happened was that employees in the control and experimental groups were treated as special.
They were given attention by management, separated from other employees, and encouraged to perform.
The basic lesson that emerged from this early research suggested that employees who are given attention by
administration, who are treated as special, and who perceive their work as important can become highly motivated
and thus become more creative.
Employees were not treated as special but rather as expendable cogs in a machine irrespective of their
performance.
The need to motivate the employees to perform better was not part of the decision-making equation at that
point of time.
Needless to say, the results of the Hawthorne Experiments, once the reasons for them were better understood
by managers and academicians, served as a launch pad for panoply of new theories and come up to the
management.
This new way of thinking that gained momentum in the 1930s and 1940s can be broadly labeled Human
Relations Management.

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Human Resource Management

1.7 Revolution of the Human Resource Management


The revolution of the Human Resource Management is held in the world long back, since from the time of the
Egyptian. Let us discuss revolution of the Human Resource Management from all over the world.
By 1920, psychologists and employment specialists in the United States started tracking the human relations
movement, which viewed workers in terms of their psychology rather than as exchangeable parts.
During the middle of the last century, larger companies, typically those in the United States that emerged after
the Second World War, recruited people from the US Military and were able to apply new selection, training,
leadership, and management development methods.
Similarly, some leading European multinationals, such as Shell and Phillips developed new approaches to
personnel development and drew on similar approaches already used in Civil Service training. Gradually,
this spreads more sophisticated policies and processes that require more central management via a personnel
department composed of specialists and generalist teams.
The role of what became known as Human Resources grew all through the middle of the 20th century. Anxiety
remained between academics who emphasised either soft or hard HR. Those professing so-called soft HR
stressed areas like leadership, cohesion, and loyalty which play important roles in organisational success. Those
promoting hard HR championed more quantitatively rigorous management techniques in the 1960s.
In the later part of the last century, both the title and conventional role of the personnel function was progressively
superseded by the emergence, at least in larger organisations, of strategic human resources management and
sophisticated human resources departments. Initially, this may have involved little more than renaming the
function, but where transformation occurred, it became distinguished by the human resources having a more
significant influence on the organisations strategic direction and gaining board-level representation.

1.8 Human Relation Concept


The Human Relation plays a major role in any organisation. The human resource program represents an attempt to
improve employee morale and motivation through an improved three-way communication and through employee
participation in the decision making processes. Human relation seeks to emphasise employee aspect of work rather
than technical or economic aspects. It seeks to make employment and working condition less impersonal. The human
relation approach emphasises policies and techniques designed to improve employee morale and job satisfaction. It
is believed that this is accompanied by increased employee efficiency and reduction in employee unrest.

1.9 To Understand Human Behavior


It assists the manager to develop a better realisation of how his/her attitude and behavior plays a part in everyday
affair.
It assists him/her to develop a keener sensitivity towards other people.
It helps him to develop an improved understanding of the problem reconciling his/her own interest and capability
with the needs and goals of the organisation of which (s)he is or will be a part.
This enables him/her to anticipate and prevent problems, or at least to resolve more effectively those that cannot
avoid.

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Summary
Human Resource Management is the strategic and logical approach of every management system.
Human Resource Management has replaced the Personnel management, as it brings together the most
valued asset of the organisation i.e. the employees of an organisation which contribute to the achievement of
the objective of the business
Selection process is carried out by taking interviews of candidates and examines their qualification and
ability
Training an individual is carried out by recognising the area where the candidate has to be trained.
Career development ensures that the employee will stay back with the organisation and it also gives job
satisfaction to the employee.
HRM has to manage money, market, material, machines and men.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. A Review of Leadership Theory and Competency
Frameworks.
McNamara, C. All About Human Resources and Talent Management [Online] Available at: <http://
managementhelp.org/hr_mgmnt/hr_mgmnt.htm> [Accessed 28 September 2010].
Evolution of Human Resource Management [Online] Available at: http://www.articlesbase.com/training-articles/
evolution-of-human-resource-management-1294285.html> [Accessed 14 September 2012].
2010. Human Resource Management-I Video Lecture Course, Nature and Scope of HRM, [Video Online]
Available at: <http://www.youtube.com/watch?v=Fa8E3tCDIpo&feature=player_embedded> [Accessed 14
September 2012].
2010. Human Resource Management-I Video Lecture Course, Analysing and Designing Job: I, [Video Online]
Available at: <http://www.youtube.com/watch?v=S_1FyWMYBoo&feature=player_embedded> [Accessed 14
September 2012].

Recommended Reading
Suri, R. K. & Chhabra, T.N. Industrial Psychology, Sun India Publications, New Delhi.
Singh, K. & Duggal, B. R. Human Resource Management, Sun India Publications, Delhi.
Chhabra, T. N. Human Resource Management, Dhanpat Rai & Co., Delhi.

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Human Resource Management

Self Assessment
1. The Human Resource management doesnt produce any profit or neither can it develop any revenue, but it can
have a hold on the organisation that can improve the _____________.
a. productivity
b. process
c. procedure
d. power

2. Which of the following is one of the roles of the HRM?


a. To enable management to achieve organisational objectives through its workforce.
b. To ensure that the organisation fulfills all the government and social obligation.
c. To train an employee for improving communication.
d. To form the workers union.

3. The Human Resource management is the strategic and logical approach of the _________________.
a. organisation
b. institute
c. administration
d. management

4. The Human Resource management has to look after the performance of the employee and __________ them
accordingly.
a. help
b. punish
c. reward
d. compensate

5. Which of the following factor affects an organisation?


a. Poor management
b. Incompetency of the employees that can degrade the quality of the product
c. Lack of the time
d. Lack of the space

6. What are the Responsibilities of the HRM?


a. To achieve profit.
b. To enjoy work.
c. Recruitment and selection of candidate.
d. To earn money.

7. Why human Relation is necessary?


a. To develop good relation among employees and employers
b. For planning strategy
c. To avoid confusion
d. To solve the problem

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8. Role of Human Resource Management is to create and maintain a _____________work environment.
a. tense and disciplined
b. safe and healthy
c. confuse and sad
d. dominating and indiscipline

9. The managers job as a human relations job that function through several major activities and that human
relationship are beginning and the end of the management job. Who said these lines?
a. F.J. Roethlisberger of Harvard
b. Roethlisberger.
c. Dickson
d. Lawrence aptly

10. Assist the manager to develop a better realisation of how his own ______________ everyday affair play a part
in
a. attitude and behavior
b. time and money
c. strategy and planning
d. Power and status.

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Human Resource Management

Chapter II
Human Resource Management in India

Aim
The aim of this chapter is to:

elucidate the history of the Indias development in human resource management

explain how HRM in India is different from the rest of the world

highlight the scope of human resource management in India

Objectives
The objectives of this chapter are to:

elaborate the key factors that have developed the human resource management in India

elucidate the human relation movement in India

explain the concern of the human resource management department

Learning outcome
At the end of this chapter, you will be able to:

understand Indias history of human resource management

identify the significance of human resource management in India

recognise the scope of human resource management in India

10/JNU OLE
2.1 Introduction
The India story for organisation success is one that is deeply rooted in its history and culture. Human Resource holds
a key position in any development process. It is the sum total of our productive effort, guided, managed and executed
through our human resource. India realised the importance of HRM in various organisations and vigorous effort is
to the break the shackles of all economic barriers. Social constraint through the application of HRM concept and
practices has also been realised by India. Nowadays, Human Resource is the only factor that can facilitate effective
use of science and technology. HR development helps to incorporate high level of skills and knowledge. This not
only improves the quality of the product but also reduces the cost of production.

2.2 Concern of the Human Resource Management Department


The Human Resource department has taken some measures, so that it can provide better opportunity for the
employees.
By carrying out job analysis
By providing equal employment opportunities for everyone
By forecasting the human resource necessity
By arranging orientation and training of the employees
By recruitment and Selection
By designing and implementing management and organisational development programs.

2.3 Significance of the Human Resource Department


Following points describe the significance of human resource department
Career management and succession planning
Managing employee relationship
Performance appraisal
Training and development
Managing employee welfare and social security
Managing change and developing organisation
Industrial relations.

2.4 History of the Human Resource Management in India


In 50s -Workers were not allowed to ask any question but they only had To do their job. That was the time
when worker were treated like salves.
In 60s - Terms like manpower, staff and personnel came into existence. This year changed the employee-
employer relationship. They were treated and served well during this phase.
In Late 70s - People realised that, productivity depends on people.
1940s-1960s - The HR technique was introduced and since then administration was managed by the group
of people.Since then, IR, administrative leave, bonus, retirement and many other facilities were given to the
employees.
In 1970s-1980s regulatory managerial housing, medical leave etc. came into existence.
In 1990s union of the worker were formed.
After that, some other policies and programs were carried out by the union such as:
Productivity through people executive formulating policies; T&D programs.
In 1948 - Indian Institute of Personal Management (IIPM) at Kolkata was started. This institute started the
practice of HRM.
In 1950 - Another institute of management known as National Institute of Labor Management (NILM) at
Mumbai laid the foundation.

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In 1990 - Milestone was achieved by renaming of American Society for Personnel Administration (ASPA) as
the Society for Human Resource Management. This instituted gave new face to the HR management.

2.5 Indian Management is Unique


HRM in Indian organisation is indubitably unique.
There are some points which have favored their own organisation. They are as follows:
Hiring practices
Compensation standards
Benefits
Statutory governance
Performance linked reward
Payouts
The Indian culture is deeply rooted in its society and the collective values in it provide an open collaborative
approach at the workplace.
Hard-work, long working hours, purveyances and the need to earn money impact the HRM policies.
Availability of the educated mass of different caliber and skill allow the country to undertake different nature
of the work.
It includes lower skilled activities such as BPOs (Business Process Outsourcing) and gradually moves up the
value curve to far more advance and complex activities as KPOs (Knowledge Process Outsourcing).
Lower wages with high quality work makes India a lucrative and preferred business destination for many
MNCs.

2.6 Human Relation Movement in India

Events Description
Kautilya Kautilya provides a systematic treatment of management of human resources during 4th century
Author B.C.
of Artha This treatise titled as Artha Shastra.
Shastra
This describes the logical procedures and principles with respect to labor organisation. Such
as shreni or guild system and cooperative sector.
Kautilya provides an excellent discussion on staffing and personnel management.
This books has following terms that helped in managing the entire HRM process:
Embracing job descriptions
Qualifications for jobs
Selection procedure
Executive development
Incentive systems (Sarasa-saama-daana-bheda-danda-catura or carrot and Stick approach)
and
Performance evaluation.

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Trades based The group of society who is engaged in following activities were designated as Brahmins:
on caste Teaching
Sacrifice
State management.
Those specialising in fighting were termed Kshatriyas.
Individuals engaged in the areas of trade, business and agriculture were called Vaishya.
Those devoting themselves in manual work were known as Shudras. Later on, these professions
emerged to be hereditary, the transfer of skills and training from one generation to another were
practiced such as:
Goldsmiths
Weavers
Potters
Blacksmiths
Carpenters

British During British rule, the Laissez-faire policy was introduced.


Rules Era From the evidence of the Indigo commission, it has been seen that:
Working conditions were terrible
Living condition were subhuman and
Several abuses prevailed in Indigo plantation.
Several inhuman cruelties caused to the worker during tea plantation.
In addition to this, the Plantation Act of 1863 makes provisions that if the workers failed to
complete their period of contract they should be imprisoned for period not exceeding three
months.
Furthermore, the working conditions in the tea plantations were extremely bad.
The laborers who attempted to run away were subject to imprisonment, whipping and allied
extreme punishment.
The workers were entirely helpless in the face of the organised and powerful European
planters.
The above conditions prevailed till the performance of the Factory Act of 1881.
According to the Act, the workers employed in the factories were allowed a week off day.
As well as, provisions were also made for inspection as well as limiting the hours of work for
women workers to eleven per day.
The act further provided that the minimum age of children for employment should be seven
years.
Furthermore, that the maximum working hours for the children should not exceed seven hours
a day and that too in the dayshift.

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Human Resource Management

Movement In 1890, the first labor organisation designated as Bombay Mill Hands Association was
After First established.
Labor Subsequently, in 1905, the printers Union at Calcutta and in 1907, the Postal Union at Bombay
Organisation was established.
The Madras Labor Union was organised thereafter in 1918.
In the same year, the Central Labor Board was established to federate the different unions in
the Bombay city and the All India Trade Union Congress was organised.
It may be noted that the reliable statistics of trade union growth are not available for the period
before the formal implementation of the Indian Trade Unions Act, 1926, a landmark in the
history of industrial relations in this country.
The early thirties witnessed a highly weakened trade union movement.
However, the conditions prevailing five years before as well as during the Second World War
were conducive to the rapid growth of the trade unionism.
Between 1939-40 and 1944-45 the number of registered trade unions increased from 66.6 to
86.5 (i.e., by 29.7 percent).
There was a large scale expansion of the trade union movement after the Second World War
especially after the independence.

As Subramanian observes, there existed fourfold reasons for this rapid growth. These were
as follows:
The cumulative impact of the acute economic distress stemming from war conditions and
the removal of the wartime restrictions on strikes.
The development of three more central labor organisations and the competition among
them.
The labor policy of the Government based on adjudication rather than collective
bargaining.
The growth of the spirit of trade unionism among the workers. Accordingly, during the
period 1947-1960 while, industrial employment rose by 2.8 times.

G r o w t h i n The total claimed union membership also went up by 2.3 times.


the industrial In 1960, 45 percent of the total industrial workforce was claimed to be unionised.
sector
Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total
workforce.
Explicitly, during post independence period, the activities of Personnel Department in different
public and private sectors have multiplied.
According to the provisions of section 49 of the Factories Act, 1948, it became obligatory for
the employers to employ a Welfare Officer in a factory employing 500 or more workers.
Likewise, section 58 of the Mines Act, 1952, empowers the Government to specify employment
of welfare officer/officers.
It does not mean that the functions of Personnel Department are entirely limited to welfare
activities.

Table 2.1 Human relation movement in India

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2.7 Scope of Human Resource Management in India
The scope of HRM is very wide:
Personnel aspect:
This is concerned with following term:
Manpower planning
Recruitment
Selection
Placement
Transfer
Promotion
Training and development
Layoff and retrenchment
Remuneration
Incentives
Productivity

Welfare aspect
It deals with working conditions and amenities such as:
Canteens
Rest and lunch rooms
Housing
Transport
Medical assistance
Education
Health and safety
Recreation facilities

Industrial relations aspect


This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary,
procedures, settlement of disputes, etc.

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Human Resource Management

Summary
HRM in India has been impacted both by its own history as well as multinational companies that came and
establish their operations in the country.
The countrys culture has played a critical role in building value for the country globally.
Kautilya Author of Artha Shastra: This treatise describes the logical procedures and principles with respect to
labor organisation. Such as shreni or guild system and cooperative sector.
Trades based on caste: In this people who belong to the special caste and tribe follows the profession from
generation
The caste system and the way it was structured to differentiate between different categories of the jobs remains
a basic frame work for the way work is distributed at the workplace.
The coming of the British to India and the technique of their administration brought immense insights into the
country on how to mange labor work.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Sharma, A., 2006. Historical Development of HRM in India Final, [Online] Available at: <http://www.slideshare.
net/rajeevgupta/historial-development-of-hrm-in-india-final> [Accessed 28 September 2010].
Ten Hurdles Faced by the HR in India [Online] Available at:-<http://www.chillibreeze.com/articles_various/
hurdles-faced-by-hr-1211.asp> [Accessed 17 September 2012].
Discuss the evolution of Human resource management by drawing References from the Hawthorne Studies.
[pdf] Available at: <http://www.respawngamingcafe.com/mba/Human%20Resource%20Management.pdf>
[Accessed 28 September 2010]
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - I, [Video Online]
Available at: < http://learnerstv.com/video/Free-video-Lecture-10027-Management.htm> [Accessed 17
September 2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - II, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10028-Management.htm> [Accessed 17 September
2012].

Recommended Reading
Beardwell, L. & Holden, L., Human Resource Management, Jacrnillan, Delhi.
Frnch, V., The Personnel Management Process, Houghton Co., Boston.
Chhabra, T. N., Human Resource Management, Dhanpat Rai & Co., Delhi.

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Self Assessment
1. Kautilya provide a systematic treatment of management of human resources as early as 4th century B.C. In his
treatise titled_____________.
a. bible
b. artha-shastra
c. ayurdeva
d. vedas

2. From the 14th century B.C. to the later half of the 10th century A.D., the relationship between employer and
employees were marked ______________.
a. by justice and equality
b. by law
c. by punishment
d. by harassment

3. In Varnashram or caste system ,those devoting themselves in manual work were called as____________.
a. Brahmin
b. Goldsmiths
c. Barber
d. Shudras

4. During early British rule, there prevailed a _______________ policy toward the business.
a. Laissez-Faire
b. Non-judgmental
c. Unfair
d. Welfare

5. The Madras Labor Union was organised in_______________.


a. 1918
b. 1981
c. 1891
d. 1819

6. The professional those who transferred their skills to next generation are____________________.
a. Weavers, potters, blacksmiths
b. Contractor and managers
c. Politician and doctors
d. Extremist and union leaders.

7. Between 1939-40 and 1944-45 the number of registered trade unions increased_____________.
a. From 66.6 to 86.5.
b. From 89.9 to 86.5
c. From 66.6 to 70.5
d. From 50.6 to 76.3

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Human Resource Management

8. Availability of the____________of different caliber of the knowledge and skill allows the country to undertake
different nature of the work.
a. plenty of money
b. educated mass
c. ample of land
d. effective organisation structure

9. Hard-work, long working hours, purveyances and the need to earn money impact the ____________.
a. HRM policies
b. HRM discipline
c. HRM Regulation
d. HRM Rules

10. ____________ covers union-management relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.
a. Industrial Relation Characteristic
b. Industrial Relation Aspects
c. Industrial Relation Programs
d. Industrial Relation Plans

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Chapter III
Human Resource Planning

Aim
The aim of this chapter is to:

explain human resource planning

enlist the objectives and elements of human resource planning

describe the systematic process of recruitment, selection and induction

Objectives
The objectives of this chapter are to:

highlight the need and importance of human resource planning

explain the activities in human resource planning

enlist the applications of human resource planning

Learning outcome
At the end of this chapter, you will be able to:

understand the concept of human resource management

recognise the role of human resource planning in an organisation

identify human resource planning in the organisation

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Human Resource Management

3.1 Definition
Human Resource Planning is the process by which an organisation ensures that it has the right number and kind of
people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will
help the organisation achieving its overall objectives.

Definition According to Geisler, Manpower planning is the process which includes forecasting, developing and
controlling by which a firm ensures that it has:
The right number of people
The right kind of people
At the right places
At the right time, doing work for which they are economically most useful

3.1.1 Human Resource Planning


According to the Gordon McBeath, Human Resource Planning is concerned with two things:
Planning of Manpower requirements
Planning of Manpower supplied

3.2 Benefits of HRP


HRP can benefit at both national and company/ unit levels:
At the national level it will be concerned with factors such as population, economic development, provision of
the facilities for educational and geographical mobility and it will be the government responsibility
HRP studies can even be undertaken at the trade associations level for a particular industry

3.3 Uses of HRP


Following are the uses of HRP:
Improve the utilisation of the Human resources
Match human resource related activities and future organisation objectives efficiently
Coordination between various HR programs such an employment equity plan and hiring needs

3.4 Activities Involve in HRP


According to Wickstrom, HRP consists of the following series of activities:
Forecasting future manpower requirements
Make a list of manpower resources
Recruit the correct candidate
Anticipating man power problem
Planning necessary programs for required section like
Candidate selection
Training and development of the candidate
Utilisation of the manpower as per the requirement
Transfer of the employees from one workplace to another
Promotion of the employees according to their experience, their qualification etc.
Time to time motivation of an employee
Whereas, compensation has to be given to the employees wherever any mishaps take place
The above points will ensure that, future manpower requirement are properly met

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3.5 Need for HRP
To meet with the changing needs, manpower planning is must. Every organisation has to plan for human resource
due to following reasons:
The shortage of certain categories of employees and/ or variety of skills.
The rapid changes in the technology, marketing, management, etc., resulting in to the need for new skills and
new categories of the employees.
Changes made in the organisation design and structure affecting manpower demand.
The demographic changes like the changing profile of the workforce in terms of age, sex, education etc.
The government policies in respect to reservation, child labor, working conditions etc.
The labor laws affecting the demand for and supply of labor.
Pressure from trade union, politicians, sons of the soils etc.
Introduction of computer and robots etc.
The involvement of lead time in managing the job with most suitable candidate.

3.6 Process of HRP


The term Human Resource involves human capital that operates an organisation:
The human resource planning process is defined as, a course of action that the human capital takes up for a
methodical achievement of predetermined goals.
The term includes, its management, which primarily involves issues related to the workforce
The Human Resource Planning process, demands the HR manager to first understand the business
requirement.
When the manager comprehends the nature and scope of the business, (s)he will be able to employ those who
will deliver the required performance.
When it comes to engaging the manpower, the manager should have a keen eye for spotting talent.
It ensures that the workforce is competent enough to the meet the assigned targets.
Additionally, the existing talent pool in the workplace should be taken into consideration, so that skilled people
can be employed.
The work of the HR manager is to assess the currently employed workforce and their shortcomings.
Identifying these shortcomings goes a long way in choosing an efficient workforce.
While recruiting the new employees, the HR manager must calculate the expected workload.

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Human Resource Management

For better understanding refer the block diagram given below:


Block diagram:

Overall Action
Long range Net new Procedures
requirements Inventory of programs for
objectives Human for evaluating
for human human recruiting
and plans Resources effectiveness
resources resources and selecting
requirements of human
needed
resource
personnel
planning

Workforce
Short term, requirement Inventory by Plans for
occupational Needed developing,
Goals, Plans, by
categories, Replacements upgrading,
programs and occupational
categories, job skills, and Additions transforming
budget
job, skills demographic in recruiting
demographic characteristics and selecting
characteristics needed people.

Fig. 3.1 Block diagram of HRP

3.6.1 Benefits of HRP


Following are the benefits of HRP
At the national Level, it is generally done by the government and cover items like:
Population projections
Program of the economic development
Educational facilities
Occupational distribution and growth
Industrial and geographical mobility of personnel.
At the sector level, it may be done by the government central or state. It may cover manpower requirement of
the
Agricultural
Industrial
Service sector.
At the industrial sector, it may cover manpower forecast for specific industries like:
Engineering
Heavy industries
Consumer goods industries
Public utility industries.
At the level of the individual unit, it may relate to its manpower need for various departments and for various
types of personnel.

22/JNU OLE
3.7 Human Resource Planning System
HRP fulfils individual, organisational and national goals
According to Sikula, The ultimate mission or purpose is to relate future human resources to future enterprise
needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future
return on investment in the human resources. In effect, the main purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis on future instead of present arrangements
The objectives may be laid down for short- term estimating the future organisational structure or forecasting
the manpower requirements.
Auditing Human Resources is next step after manpower estimation. This is done by skills inventory
Skill inventory contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company
HRP involves job analysis process as well. This step involves job description and job specification
Developing a Human Resource plan is also most important. As in this phase, development and implementation
of the planning are carried out.

3.8 Responsibility of Human Resource Planning Department

Framework for Procurement

Recruitment Programe The Individual Sales Job Analysis


Forecast

The Individual Sales Job Description


Forecast
Applicant

Employee Job Specification


Requisition

Screening Devices

Application Blank
Referance Check The Organisation
Interviews

The Individual
Tests
Physical Examination
Medical check

Induction

Fig. 3.2 Flowchart of HRP

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According to Geisler, responsibilities involved in the Human resource planning are as follows:
To assist, council and pressurise the operating management to plan and establish objectives
To collect and summarise data in total organisation term
To ensure consistency with long-range objectives and other element of total business
To monitor and measure performance against the plan
To inform about the current scenario to top management
To provide the research necessary for effective manpower and organisational planning.

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Summary
Human Resource Planning is the process by which an organisation ensures that it has the right number and kind
of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that
will help the organisation achieve its overall objectives.
The human resource planning process is defined as, a course of action that the human capital takes up for a
methodical achievement of predetermined goals.
HRP fulfils individual, organisational and national goals.
Skill inventory contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company.
Human Resource Planning involved two things, planning of manpower requirements and planning of manpower
supplied.
HRP is deemed necessary for all organisation.
There is various responsibility of HRP department like assisting, counsel, pressurise the organisation.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bandt, A. & Haines, S. G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic
Management.
HUMAN RESOURCE PLANNING Reference Tools [pdf] Available at: <http://www.exec.gov.nl.ca/exec/pss/
publications/HR_Resource_Binder.pdf> [Accessed 18 September 2012].
The Role of Human Resource Development and Management [pdf] Available at: <http://www2.aau.org/wghe/
gender/toolkit/Toolkit-module3.pdf> [Accessed 18 September 2012].
2010. Human Resource Management-I Video Lecture Course, Recruitment and Selection, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10029-Management.htm> [Accessed 21 September
2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 21
September 2012].

Recommended Reading
Evans, P. & Pucik, E., The Global Challenge- Framework for International Human Resource Management, Tata
McGraw-Hill Irwin.
De Cenzo D.A. & Robin, S. P, 1997. Personnel/Human Resource Management, McGraw Hill.
Ashwatappa, K., Human Resource Management, 5th ed., TMH.

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Self Assessment
1. Human Resource Planning is the process by which an organisation ensures that it has the right number and kind
of people, at the right places, at the right time, capable of____________________completing those tasks that
will help the organisation achieve its overall objectives.
a. properly and precisely
b. effectively and efficiently
c. happily and efficiently
d. willingly and effectively

2. Match the following.


Column I Column II
1. It is generally done by the government and cover item a. At the industry level
like population projections, programme of economic
development, educational facilities, occupational
distribution, and growth, industrial and geographical
mobility of personnel.
2. It may be done by the government-central or state b. At the sector level
and may cover manpower needs of agricultural,
industrial and geographical mobility of personnel
3. It may cover manpower forecast for specific industries, c. At the level of the individual unit
such as engineering, heavy industrial, consumer goods
industries, public utility industries, etc.
4. It may relate to its manpower needs for various d. At the national level
departments and for various types of personnel.
a. 1-d, 2-b, 3-a, 4-c
b. 1-a, 2-b, 3-d, 4-c
c. 1-d, 2-c, 3-a, 4-b
d. 1-c, 2-b, 3-a, 4-d

3. Which of the following statements is true?


a. HRP fulfils individual, organisational and national goals.
b. HRP fulfils only individual goals.
c. HRP fulfils organisational goals.
d. HRP fulfils national goals.

4. Whose postulation is The ultimate mission or purpose is to relate future human resources to future enterprise
needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future
return on investment in the human resources. In effect, the main purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis on future instead of present arrangements?
a. Gandhi
b. Sikula
c. Rattan TATA
d. Geisler

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5. __________ contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company.
a. Skill inventory
b. Skill research
c. Skill recovery
d. Skillful guidance

6. What does job analysis process involves?


a. Job description and job specification
b. Job proof and job skills
c. Job documentation and job assistance
d. Job profile and job description

7. ___________ provide the basic premises on which the manpower planning is built.
a. Forecasting
b. Developing
c. Planning
d. Summarising

8. To____________the operating management to plan and establish objectives.


a. assist, counsel and pressurises
b. forecasting , developing and preparing
c. guiding, assisting and punishing
d. training, interacting and reacting.

9. To _____________against the plan and keep the top management informed about it.
a. provide an inadequate data.
b. provide correct data
c. provide a improper data
d. provide the research necessary data.

10. To _______________in total organisational terms and to the total business-plan.


a. monitor and measure performance
b. measure and manipulate work
c. collect and summarise
d. motivate and guide.

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Chapter IV
Recruitment and Selection

Aim
The aim of this chapter is to:

explain the concept of recruitment and selection

elucidate the complexity of recruitment and selection

explain the process of recruitment and selection

Objectives
The objectives of this chapter are to:

explain the general practices that organisations use to recruit and select employees

determine which recruitment and selection practices are most effective

describe how the recruitment and selection practices affect organisational outcomes

Learning outcome
At the end of this chapter, you will be able to:

understand the critical role of recruitment

identify appropriate recruitment sources

understand the selection tools and methods

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4.1 Introduction
Better Recruitment and Selection strategies result in improved organisational outcomes. The more effectively
organisations recruit and select candidates, the more likely they will get a satisfying job done from them with
sustain quality.

4.2 Concept of Recruitment and Selection


Recruitment is the process of identifying and attracting potential candidates from within and outside an
organisation. The candidate must be capable of doing allotted work in present as well as in future.
Once candidates are identified, an organisation can begin the selection process.
Before starting the recruitment activity, organisation must consider whether recruitment should be done locally,
nationally or internationally.
The Recruitment process includes the following steps:
Collecting
Measuring and
Evaluating information about candidates qualifications for specified positions.
Organisations use these processes to increase the likelihood of hiring individuals who possess the right skills
and abilities to be successful at their jobs

There are certain steps which have to be carried out in this entire process. Those are as follows:
Manpower Planning
Job analysis
Identification of vacancies
Preparation of budget
Preparation and publication of information
Reception of the application from
Recruit
Select
Induct
We will discuss the above mention point in this chapter in detail.

4.2.1 Manpower Planning


It defines what resources the organisation needs to meet its objective. It must specify the quality of manpower
needed at a particular date in future.

4.2.2 Job Analysis Method


The Job analysis process consists of following:

Job description
It is a statement of the component tasks, duties, objectives and standard of performances expected from the
employee.

Job specification
It is a specification of the skills, knowledge and qualities required to perform the job.

Personnel specification
A reworking of the job specification in terms of the kind of person needed to perform the job.

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4.2.3 Identification of Vacancies


The requirement of the manpower plan
By job requisition from a department, branch or office which has a vacancy.

4.2.4 Preparation of Budget


The company must decide the amount to be spent on recruitment process
The method of recruitment would depend on the time available and budget allocation.

4.2.5 Preparation and Publication of Information


To bring in correct candidates to the organisation, we need to do proper publicity. Hence, it is carried out in following
way:

Advertisement
It is an effective way of seeking recruits.
It must be clearly worded, mention all the requirements and must appear in the right newspapers that are likely
to be read by potential applicants.
Job description and job specification must provide all the information required to draft the advertisement for
respective position.

Internet
It has become popular method of recruiting people.
Many organisations have their own web pages where perspective applicants can obtain data about the
company.
Moreover, the companys other information that gives the applicant idea of scope of the company in the market.
This are like
Product and service
Employment opportunities and
Application procedures.

4.2.6 Reception of Application Form


Once the application forms are received, they must be screened for eligibility criterion. Those forms, which do
not meet the minimum required standards, must be rejected. The minimum criterion are as follows like:
Age
Qualification
Experience
Legal issues
Salary expectation
Lag of certificate
A formal interview must be conducted for the remaining students by properly communicating to them the
following things:
The date
The day
Time of the interview and
The place of the interview.
These candidates should pass through the selection procedure before their final placement.

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4.3 Other Methods of Recruitment
Employment agencies and head hunters:
Recruitment through outside agencies is generally undertaken as follows:
When the company does not have the time or human resources to spend on the process
When the company wishes to maintain confidentiality
When the company feels that they would be able to attract a wider range of people.
Employment agencies and head hunting firms are retained by the organisation to identify the suitable candidates
for their company.
Employment agencies normally recruit at lower and middle management levels whereas headhunter concentrates
their effort on higher-level managerial position.
The recruitment agencies are paid a certain percentage of the incumbents salary as recruitment fees.
There are some other sources as well that can fulfill the requirement. Those are as follows:

4.3.1 Campus Recruitment


Organisations visit campus to recruit for entry-level position
The procedure is to give a brief talk about company to the interested candidates
Then held group discussion
Personnel interview.

4.3.2 Walk-In Interview


On urgent basis, the recruitment may be conducted by walk-in interviews
The date and time is specified in the local newspaper
Potential candidates are asked to report for the interview along with their documents.

4.3.3 Employees Referrals


If the company feels that they can obtain candidate by word of mouth, they place an advertisement on the
companys notice broad stating their requirement
Friends and relatives of present employees are also a good source from which employees may be drawn
When the labor market is very tight, large employers frequently offer their employees bonus or prize for any
referrals that are hired and stay with the company for specific length of time
Some companies keep the record of the former employees whose record was good
Whenever there are new job openings for which they are qualified, then these former employees are informed
This process has a drawback that is known as nepotism which means, when a person of ones community or
caste are employed, who may or may not be fit for the job
Because of this the eligible candidate may lose the opportunity and undeserving candidate gets a job.

4.3.4 Labor Unions


Firms with closed or union shops must look to the union in their recruitment efforts
Disadvantage of a monopolistically controlled labor source are offset, at least particularly, by saving in recruitment
costs
With one-fifth of the labor force organised into union, organised labor constitute an important source of
personnel.

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4.3.5 Indoctrination Seminars


The colleges professors are arranged to discuss the problem of companies and employers
Professors are invited to take part in these seminars
Visit to plants and banquets are arranges so that the participant professors may be favorably impressed
They may later speak well of a company and help it in getting required personnel.

4.3.6 Unconsolidated Application


For position in which large number of candidates are not available from other sources
The companies may gain keeping files of applications received from candidate who make direct enquiries about
possible vacancies on their own or may send unconsolidated applications
The information may be index and filed for future use when there are openings in these jobs.

4.3.7 Nepotism
The Hiring of relatives will be an inevitable component of recruitment programs in family-owned firms
Such a policy does not necessarily coincide with hiring on the basis of merit
But interest and loyalty to the enterprise are offsetting advantage.

4.3.8 Leasing
To adjust to short-term fluctuation in personnel needs
The possibility of leasing personnel by the hour or day should be considered
This practice has been particularly well-developed in the office administration.
The firm not only obtains well-trained and selected personnel but avoids any obligation in pensions, insurance,
and other fringe benefits.

4.3.9 Voluntary Organisations


Voluntary organisation such as private clubs, social organisations might also provide employees
The following resources also can be considered that can give helping hand in recruiting the employees for the
organisation:
Handicaps
Widowed or married women
Old persons
Retried hands

4.3.10 Computer Data Bank


When a company desires a particular type of employee job specifications and requirement are fed into a computer
where they are matched against the resume data stored therein.

The output is a set of resume for individual who meet the requirement. This method is very useful for identifying
candidates for hard-to-fill positions, which call for an unusual combination of skills.

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4.4 Recruitment and Selection Policy
4.4.1 Selection Policy
In order to initiate the procedure for selection, we must satisfy the three preliminary requirements:
There must be the authority to select, which comes from the employment requisition, as developed through
analysis of the work load and work force
We must have a standard of employees with which we can compare prospective employees
This is done by job specification as developed through job analysis
A planned recruitment programme provides us with these applicants.
The selection procedure is essentially a series of methods of securing relevant information about the
applicant
The information obtain can be compared with the job specification and standard of personnel if the applicant
qualifies, he or she is advanced to next step. Thus, the job specification and job applicant are interrelated at
each step in the selection procedure.
4.4.2 Recruitment Policy
After determining the human resource requirement, the recruitment and selection process can begin very often,
recruitment is misunderstood as filling in of vacancies
The real purpose of recruitment is not to fill up a vacancy but to add a person to the staff whom the management
expects to become important in the future scheme of the things
Dale Yoder and others point out: Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting manpower in adequate
number to facilities effective selection of an efficient working force.
In term of the Stahl, "Recruitment is a corner stone of the whole personnel structure".
Sources for recruiting should be periodically checked
For this purpose, the criteria may be the cost per applicant, the applicant/ hiring ratio, tenure, performance
appraisals etc.
Recruiting should take into consideration ethical practices, such as use of truth in hiring i.e. telling an applicant
all about the firm and its position both good and bad so that the candidate can decide whether or not to join the
firm.
A successful and effective, recruitment program necessitates a well-defined recruitment policy, a proper
organisational structure, and procedures for locating sources of manpower, suitable methods, techniques for
utilising these and a constant assessment to achieve improvement.

4.5 Recruitment Practice In India


The different sources for recruitment in India have been classified as below:
Within the organisation
Badli or temporary workers
Employment agencies
Causal callers
Applicants introduced by friends and relatives in the organisation
Advertisement and labor contractors
All public sector enterprises are required to consider candidates sponsored by the employment exchanges
In most cases, confine the selection to these candidates
However, the private sector is not under any such formal obligation

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Under the apprentices Act 1961, young craftsmen having received pre-employment training in industrial training
Institutes have to be employed by specialised industries during training period as a percentage of the total
number of regular employees
Reservation of 25% of vacancies for scheduled castes and scheduled tribes candidates and preferential treatment
of displaced persons is a part of statutory requirement of government and public sector employment in India
The requirement of supervisory personnel in all organised industries is generally by promotion from within the
organisation
Some industries first recruit a number of young persons as management trainees and after 2 or 3 years absorb
them completely. Executives too are mostly promoted from within.

4.6 Selection Technique


Employee Selection is the process of putting the right men on the right job
It is a procedure of matching organisational requirements with the skills and qualifications of people
Effective selection can be done only when there is effective matching
By selecting best candidate for the required job, the organisation will get quality performance of employees
Moreover, organisation will face less of absenteeism and employee turnover problems
By selecting right candidate for the required job, organisation will also save time and money
Proper screening of candidates takes place during selection procedure
All the potential candidates who apply for the given job are tested. But selection must be differentiated from
recruitment, though these are two phases of employment process
Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job
It creates a pool of applicants. It is just sourcing of data, while selection is a negative process as inappropriate
candidates are rejected here.
Recruitment precedes selection in staffing process.
Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.

4.7 Evaluation and Selection Criteria


The criteria usually can be best summarised in the following categories:
Education
Experience
Physical Characteristics
Personal Characteristics

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4.8 The Selection Process
The Employee selection process takes place in following order:

4.8.1 Preliminary Interviews


It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the
organisation
The skills, academic and family background, competencies and interests of the candidate are examined during
preliminary interview
Preliminary interviews are less formalised and planned than the final interviews
The candidates are given a brief up about the company and the job profile and it is also examined how much
the candidate knows about the company
Preliminary interviews are also called screening interviews.

4.8.2 Application Blanks


The candidates who clear the preliminary interview are required to fill application blank
It contains data record of the candidates such as details about age, qualifications, reason for leaving previous
job, experience etc.
A specimen of a Short Application Form for Unskilled is as follows:
Manual Employees
ENISION GRAPHICS PVT. LTD
BANGLORE-XXX XXX

Date: Name: Address:


Date of Birth:
Single/ Married/Widowed/Divorced: Position Applied for:
Detail of previous jobs, including present one, if still employed:

Name and Type of Work Reason for


Address of To From
the Employer Done Leaving

1
2
3

Table 4.1 Application blanks

Physical Disabilities:
Have you ever worked for this concern before? : Yes/ No
Engaged/ Not Engaged. Department
Due to start..
interviewer..

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4.8.3 Check of References


The use of references is common in most selection procedures
It involves minimum of effort and time/money
The objective is to obtain evaluation of prior employers and professional colleagues, who have known the
candidate in a professional capacity
Checks on references are made by mail or telephone, and occasionally in person, and by using a reference
form

4.8.4 Written Tests


Various written tests are conducted during selection procedure like
Aptitude test
Intelligence test
Reasoning test
Personality test
These tests are used to objectively assess the potential candidate.
They should not be biased.

4.8.5 Employment Interviews


It is a one to one interaction between the interviewer and the potential candidate
It is used to find whether the candidate is best suited for the required job or not. But such interviews consume
time and money both
Moreover the competencies of the candidate cannot be judged
Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should
be there in room. There should be an honest communication between candidate and interviewer.

4.8.6 Medical Examination


Medical tests are conducted to ensure physical fitness of the potential employee
It will decrease chances of employee absenteeism.

4.8.7 Appointment Letter


A reference check is made about the candidate selected and
Then finally he is appointed by giving a formal appointment letter.

4.8.8 Informal Interview


This is the type of interview that is conducted in an informal setting
The interview can be held at the residence of the managing director for the post of a legal consultant
Similarly, many senior level job assignments are finalised during dinner at some hotel or restaurant.

4.8.9 Formal Interview


This is the interview that is conducted most commonly for recruitment of personnel
In such interviews the candidate is called for an interview at a particular location and time
The candidate is required to answer questions asked, based on the outcome of which he is rated for selection.

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4.8.10 Patterned Interview
To maintain a uniform approach there are few interviews where a set pattern of questions are asked
In such patterned interview the choice of person conducting the interview is restricted and the selection criteria
are also limited within a set frame.

4.8.11 Depth Interview


In such an interview, questions are based upon a specific area of the interviewees interest and the person has
to answer in detail
The academic competence and knowledge is tested thoroughly in such type of interviews.

4.8.12 Stress Interview


For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of
individual competence based on stress endurance along with knowledge and intelligence.
Therefore a candidate is required to appear for the stress interview.
In such interviews a person is required to respond to a tress situation and the assessment is done on the basis
of the response.

4.8.13 Group Interview


When we are required to perform a task in a group the selection is done in a group interview and the candidate
along with a group is asked to solve a particular problem.
The performance and behavior is, however, assessed and rated individually.

4.8.14 Panel Interview


For a senior level position selection, a panel of experts selects the candidate
Personality and behavior traits are very important for performing well in such interviews
Interviews, at times, become a hurdle between success and failure for persons just out of college
One has to present ones competence for a particular job within a short period
The candidate is assessed for his/her
Behavior
Mannerism
Attitude
IQ
Stress enduring
Capability
General awareness
Knowledge of the subjects studied and mental frame of mind to take up the position for which (s) he has
applied.
For a young student it is important that (s)he prepares well for crossing this hurdle
(s)He must be ready for the competitive written examinations as well as for the face to face interview.

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4.9 Approval by Manager


In executing the recruitment unit screening functions, the emphasis tends to be more on formal qualifications
and general suitability
When the manager takes over, the emphasis tends to switch toward more specifically job oriented worker
characteristics such as training and relevant past experience.

4.10 Medical Examination


The medical examination is an employment step found in most businesses
It can vary from a very comprehensive examination and matching of an applicants physical capabilities to job
requirements to a simple check of general physical appearance and well-being
In the selection procedure the physical examination has at least three basic objectives:
First, it serves to ascertain the applicants physical capabilities
The second objective of the examination is to protect the company against unwarranted claims under
workerscompensation laws, or against lawsuits for damages
And the final objective is to prevent communicable diseases from entering the organisation.

4.11 Induction
Induction is concerned with introducing or orienting a new employee to the organisation
Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.
Common objectives of an Induction program can be listed as covering:
Overview of the organisation, its history, its heros and important stories in the life of the firm so far like
mergers, acquisitions, JVs, expansion in new countries etc.
Organisation Vision / Mission and Objectives statement, its structure, hierarchy of the top and the senior
management, structure of the teams/divisions, focus on the division the employee/s is/are joining
Overview of the HR policies and processes and introduction to the Facilities team, IT team and other relevant
teams per the location of joining
Handover to the manager and induction at a team level on specificities related to the job and its
responsibilities
Organisations also build processes by which the new employee provides feedback on the on-boarding
experience and use this information to improve the Induction process
In as much as various firms report that over half of their voluntary resignations occur within the first 6
months, proper orientation can do much to reduce this problem and its accompanying costs.

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Summary
Recruitment is the process of searching for prospective employees and stimulating them to apply for the job
in the organisation.
Recruitment or manpower selection process is the first step in the employment of labor.
Sources for recruiting should be periodically evaluated.
Recruitment is the process of identifying and attracting potential candidates from within and outside an
organisation. The candidate must be capable of doing allotted work in present as well as in future.
Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.
A successful and effective recruitment program necessitates a well-defined recruitment policy, a proper
organisational structure, and procedure for locating sources of manpower resources.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bandt, A. & Haines, S. G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic
Management.
Gusdorf, L. M., Recruitment and Selection: Hiring the Right Person [pdf] Available at: <http://www.shrm.
org/education/hreducation/documents/09-0152%20gusdorf_instructor_notes.pdf> [Accessed 21 September
2012].
French, R. & Rumbles, S., Recruitment and Selection [pdf] Available at: <http://www.cipd.co.uk/NR/
rdonlyres/01F95685-76C9-4C96-B291-3D5CD4DE1BE5/0/9781843982579_sc.pdf> [Accessed 21 September
2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10031-Management.htm> [Accessed 21
September 2012].
2010. Human Resource Management-I Video Lecture Course, Training and Development, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10032-Management.htm> [Accessed 21 September
2012].

Recommended Reading
Parweek, U. & Rao T. V., 1999. Designing and Managing Human Resource Systems, Anmol Publishers.
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Patnayak, B., 2005. Human Resource Management, PHI 3IE.

39/JNU OLE
Human Resource Management

Self Assessment
1. Recruitment is the process of ____________________potential candidates from within and outside an
organisation.
a. spotting and grabbing
b. convincing and testing
c. identifying and attracting
d. motivating and spoiling

2. ____________ a specification of the skills, knowledge and qualities required to perform the job.
a. Job specification
b. Job description
c. Job development
d. Job analysis

3. The candidates should pass through the selection procedure before their .
a. final placement
b. final result
c. final exam
d. final revision

4. ________ traits are very important for performing well in interviews.


a. Manners and communication
b. Education and attitude
c. Personality and behavior
d. Experience and qualification

5. For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of
individual competence based on along with knowledge and intelligence.
a. stress endurance
b. stress giving
c. stress creating
d. stress increasing

6. Which of the following statements is true?


a. Recruitment is considered to be a negative process.
b. Recruitment is not a negative process
c. Recruitment is positive process
d. Recruitment is most important process

7. Which of the following statements is true?


a. Selection is not a negative process
b. Selection is a negative process
c. Selection is positive process
d. Selection is effective process

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8. ___________ creates a pool of applicants.
a. Recruitment
b. Selection
c. Interviewing
d. Inducting

9. Once a determination of human resource requirement, the process can begin.


a. recruitment and selection
b. advertising and interviewing
c. planning and managing
d. advancing and balancing

10. Which of the following statements is true?


a. Recruitment is misunderstood as filling in of vacancies.
b. Recruitment is understood as filling in of vacancies.
c. Recruitment is filling of vacancy.
d. Recruitment is not just filling in vacancy.

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Chapter V
Training and Development

Aim
The aim of this chapter is to:

explain the importance of training

explain the techniques of training and development

enlist the types, methods and procedures of training and development

Objectives
The objectives of this chapter are to:

explain how to identify the need of training

elucidate various areas of training, which has to be identified by the trainer

enlist various evaluation techniques of the training

Learning outcome
At the end of this chapter, you will be able to:

comprehend the complexity of training process

identify various possible areas of training

understand the type and technique of training and development

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5.1 Introduction
Training and development is an important component of every organisations survival strategy. Technology is changing
very fast and so is the information explosion terrific. Individual as well as organisations can survive and progress
only if they update their knowledge, sharpen their skills and keep themselves abreast of the latest development and
changes. The one who refuses to change will be left behind and will be lost. Hence, training and development is
very important.

The training and development process is carried out in any organisation so that employee will be enable:
To face the tough competition in every field and survive gracefully
To accept and adapt to the changes in the field of science and technology
To upgrade and sharpen ones skills that are needed to do the job successfully
To learn the correct way of doing things or doing things the right way
For an improved job performance and consequently better job satisfaction.

5.2 Concept of Training


Training is a process of learning sequence of programmed behavior.
It is application of knowledge.
It gives people an awareness of the rule and procedures to guide their behavior.
It is attempt to improve their performance on the current job and prepares them for an intended job.
Training of physically, socially, intellectually and mentally are very essential in facilitating not only the level
of productivity but also the development of personnel in any organisation.
Knowledge is the ability, the skill, the understanding, the information, which every individual requires acquiring
in order to be able to function effectively and perform efficiently.

5.3 Objective of Training


The objective of the training of employees:
5.3.1 To Increase Productivity
Instructors can help employees increase their level of performance on their present assignment
Increased human performance often leads to increased operational productivity and increased company
profit.

5.3.2 To Improve Quality


Better informed worker are less likely to make operational mistakes
Quality increase may be in relationship to a company product or service or in reference to the intangible
organisational employment atmosphere

5.3.3 To Help a Company Fulfill its Future Personnel Needs


Organisations that have a good internal program for development will have to make less drastic manpower
changes and adjustments in the event of sudden personnel alterations
When the need arises organisational vacancies can be easily staffed from maintaining an adequate instructional
program for both in non-supervisory and managerial employees

5.3.4 To Improve Organisational Climate


Company designed development programs

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5.3.5 Obsolescence Prevention


Training and development programs foster the initiative and creativity of employees and help to prevent
manpower obsolescence due to age, temperature, or motivation or the inability of a person to adapt him to
technological changes.

5.3.6 Personal Growth


Employees on a personal basis gain individually from their exposure to educational expressions
Management development program seems to give participants a wider awareness, an enlarged skill and enlightens
realistic philosophy and make personal growth possible

5.4 Difference between Training and Development


Following are the differences between training and development

Area Training Development


Managerial and behavioral skills and
Content Technical Skills and Knowledge
knowledge.

Purpose Specific job - related Conceptual and general knowledge

Duration Specific job - related Long-term

For whom Mostly technical and non-managerial personnel Mostly for managerial personnel

Table 5.1 Difference between training and development

5.5 Objective of Training


The chief aim of formal education for the manager is to increase his ability to learn from experience
The second aim is to increase his ability to help his subordinates learn from experience
According to Douglas McGregor, there are three different purpose of learning.

5.5.1 Acquiring Intellectual Knowledge


An electrical engineer may need more knowledge than he now possesses about circuit design
A new employee may require knowledge about company policies
A foreman may require information about the new provisions in the labor agreement
The acquisition of knowledge is a fairly straight- forward process provided the individual want the new
knowledge
It can be made available to him in several ways
However, if someone does not want knowledge, there is considerable difficulty getting one to learn it
In industry, attempt should be made to create a felt need for new knowledge.

5.5.2 Acquiring Manual Skills


The acquisition of a manual skill required practice or experience accompanied by feedback pure trial and error
learning can be speeded up by guidance but the individual cannot learn unless (s)he performs and receives clues
which tell him/her about the success of his/her effort.

The necessary effort will be expanded only if there is a felt-need on the part of the learner.

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5.5.3 Acquiring Problem-solving Skills
Much of a managers work is solving problem
These include organising ones own and subordinates activities, planning and a wider range of other decision-
making activities
These are skills involved in diagnosing problem interpreting relevant data, assessing alternative solution and
getting feedback concerning the effectiveness of the solution.
These skills can be improved and classroom education is one method utilised for this purpose
As with any skill, practice and feedback are essential for learning
The most widely used classroom method for improving the problem-solving skills is the case method
In the hands of a skillful teacher, it can be highly effective.

5.6 Importance of Training


Following is the importance of training
The importance of Human Resource Management to a large extend depends on Human Resource
Development
Training is the most important technical of human development
No organisation can get a candidate who exactly matches with the job and the organisational requirements
Hence, training is important to development to develop the employee and make him suitable to the job
Job and organisational requirement are not static
They are changed from time to time view of technology advancement and change in the awareness of the Total
Quality and Productivity Management (TQPM)
The objectives of the TQPM can be achieved only through training as training develops human skills and
efficiency
Trained employees would be a valued asset to an organisation
Organisational efficiency, productivity, progress and development to a greater extend depend on training
Organisational objectives like viability, stability and growth can be achieved through training
Training is important as it constitutes significant part of management control.

5.7 Benefits of Training


Following are the benefits of training:
Leads to improved profitability and/or more positive attitudes toward profit orientation
Improves the job knowledge and skills at all levels of the organisation
Improves the morale of the workforce
Helps people identify with organisational goals
Helps create a better corporate image
Fosters authenticity, openness and trust
Improves the relationship between boss and subordinate
Aids in organisational development
Learn from the trainee
Helps prepare guidelines for work
Aids is understanding and carrying out organisational policies
Provide information for future needs in all areas of the organisation
Organisation gets more effective decision-making and problem solving

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Aids in developing leadership skill, motivation, loyalty, better attitude and other aspects that successful worker
and mangers usually display
Improve the labor management relations
Helps employees adjust to change
Create an appropriate climate for the growth, communication.

5.8 Training Need Identification


Training could be a useful aid in improving the transformation process take place in an organisation in term of
the processing of input to output
Diversification of the product lines, new technology and hence a new kind of job demands the individuals
growth and development through induction, training or demands the necessitated by job rotation due to an
organisations internal mobility policies
A survey conducted by A.D Sinha, listed in rank order the following method of identifying training needs:
View of the line manager
Performance appraisal
Company view of training manger
View of training manager
Analysis of job difficulties.
The model we shall examine here is the Thayer and McGhee model. It is based on the following three factor:
Organisation Analysis
Task Analysis
Man Analysis

5.9 Total Organisational Analysis


Total Organisation Analysis is a systematic effort to understand exactly where training effort needs to be
emphasised in an organisation
It involves a detail analysis of the organisation structure, objectives, human resource and future plans and
understanding of its culture, background
Firstly understand short-run and long-run goals
Long-term objective are the board direction in which the organisations would move over a long duration
These long-term objectives are the broad direction in which the organisations would move over a long
duration
These long-term objectives are then broken down into specific strategies
And short term goals of the unit/departments
In an organisation, cumulative of all these would ultimately lead to a long term goals
Short-term goals are constantly in need of adaptation to the changing environment, both external and internal.

5.10 Organisation Analysis Requirements


For an organisation analysis, there are three essential requirements:
An adequate number of personnel available to ensure fulfillment of the business operation
That personnel performance is up to the required standard
That the working environment in their units/departments is conducive to fulfill tasks.
In order to fulfill first two requirements, human resource department have to keep record of inventory
Moreover, they need to keep record regarding requirement employees and vacancy.
Various efficiency and productivity indexes, or ratio such a productivity ratios, cost per unit etc, can be worked
out to determine not only efficiency but also adequacy, in terms under- manning, of the workforce.

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5.11 Organisational Diagnosis
Organisational Diagnosis is an effective way of looking at an organisation to determine gaps between current
and desired performance and how it can achieve its goals
The purpose of a diagnosis is to identify problems facing the organisation
To determine their causes so that management can plan solutions
An organisational diagnosis process is a powerful perception raising activity in its own right, its main usefulness
is in the action that it induces.
The major steps of a diagnostic cycle include:
Orientation
Goal setting
Data gathering
Analysis/ Interpretation
Feedback
Action Planning
Implementation
Monitoring/ Measure
Evaluation

5.12 Task Analysis


Before managers can train their employees, they must decide what the employees need to learn.
Careful analysis of a job is the foundation for training development and successful training.
Job analysis is the process of determining which tasks each employee needs to perform and the standards at
which he or she must perform them.
The job analysis process produces three important tools that will help a manager train the employees:
Task lists
Job breakdowns
Job performance standards
A task list provides the tool with which to plan employee training.
A task list should be prepared for each category of employee to be trained (for example, secretaries, salespeople,
panel builders, prep cooks, and electrical technicians).
It lists all of the tasks that must be performed by an employee in a given position.

5.12.1 Task Lists


Managers should ask themselves the following questions when creating a task list:
What specific duties must an employee perform?
What units of work must be completed?
What materials must be handled?
What equipment must be operated?
What administrative chores must be completed?
What cleaning requirements is part of the job?
There are many ways that a manager can gather data for creating a task list.
Some techniques include interviewing employees in each position
Observing employees as they work
Participating in the actual performance of the work
Reviewing standard operating procedures and previous written standards.

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5.12.2 Job Breakdown


Each task on a task list needs its own job breakdown that tells how to perform the task
The job breakdown lists the task in steps, how the employee should perform the steps, and how well (s)he
should perform
The exact format for a job breakdown can vary depending on the needs of the business and the preferences of
the manager doing the training
Job breakdowns incorporate standard operating procedures and specify how job duties must be performed to
meet the business standards
The amount of detail in a job breakdown will depend upon the complexity of tasks
Job breakdowns have many uses.
They include:
Planning training
Creating lesson plans for training
Setting standards for evaluation
Creating outlines for operating procedures manuals
Preparing job descriptions and help wanted postings
Some companies even adapt their job breakdown sheets into a performance appraisal form
The step of a job breakdown should be written in a clear, easy-to-understand manner
They should also be extremely detailed so that it is clear what the standard is and how to accomplish it
The exact amount of detail may vary. There are some tasks that allow for a great deal of creativity on the part
of the employee and the exact method of how to perform the task is not as important as the end result
Other tasks, especially those involving safety or sanitation, must be spelled out very carefully
Employees need to know to what degree they are expected to perform their jobs and what performance level is
considered in meeting standards.

5.12.3 Job Performance


Job Performance standards are statements that describe or clarify the levels of employee performance that are
acceptable to the business
They may be expressed as minimum performance levels or as desired performance levels
They also must include measurements on what the performance level is
Examples of performance standards include:
Smile pleasantly to every person entering the lobby
Answer telephones within three rings
Convert two of every five phone calls into a sale
Performance standards should be established for every task on the task list
The business must have employees who can do their jobs at a level that meets basic quality and quantity
standards
These same performance standards used for training can also be used on an ongoing basis to evaluate the
employees performance on the job
Performance standards are tools to help improve employee performance throughout the employees career
Once these three tools have been created, the trainer is ready to assess how his or her employees measure up
to each of the standards
The results of this assessment will reveal in which tasks employees need training
The tools can also act as a blueprint to develop the necessary training.

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5.13 Performance Analysis
Distinguishing between Cant Do and Wont Do problem is at the heart of performance analysis
It verifies that there is a performance deficiency and determining that it is not due to lack of willingness but
the deficiency is genuinely due to lack of required skill
That should be corrected through training or through some other means like changing the job more suited to
employees exiting skills.

5.14 Training Needs Identification


The common method used to identify the training need is as follows:
Observation and analysis of the job performance
Consideration of current and projected changes
Management and staff discussions recommendations
Competency surveys
Reports and skill inventories
Interviewing job holder and supervisor.

5.15 Different Kinds of Training Needs


Individual and group needs
Short term and long term needs
Organisational formal and informal needs
Needs that must be met by internal resources and external resources cannot meet those
Needs for solo work by an individual and those which can be met only in the company of others.

5.16 Methodology of Training and Development


There are two broad types of training available:
On-the-job Techniques
Off-the-job Techniques

5.16.1 On-the-job Technique


It is delivered to employees while they perform their regular jobs
In this way, they do not lose time while they are learning
After a plan is developed, employees should be informed of the details
A timetable should be established with periodic evaluations to inform employees about their progress
On-the-job techniques include orientations, job instruction training, apprenticeships, internships and assistantships,
job rotation and coaching.

5.16.2 Off-the-job Technique


Off-Job technique includes following points:
Lectures
Special study
Films
Television conferences
Discussions
Case studies
Role playing

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Simulation
Programmed instruction
Laboratory training.
Most of these techniques can be used by small businesses although, some may be too costly.

5.16.3 Orientations are for New Employees


The first several days on the job are crucial in the success of new employees.
This point is illustrated by the fact that 60 percent of all employees who quit do so in the first ten days.
Orientation training should emphasise the following topics:
The companys history and mission
The key members in the organisation
The key members in the department, and how the department helps fulfill the mission of the company
Personnel rules and regulations
Some companies use verbal presentations while others have written presentations
Many small businesses convey these topics in one-on-one orientations
No matter what method is used, it is important that the newcomer understand his/her new place of
employment.

5.17 Training and Development Process


Top lecture present training material verbally and are used when the goal is to present a great deal of material
to many people
It is more cost effective to lecture to a group than to train people individually
Lecturing is one-way communication and as such may not be the most effective way to train
It is hard to ensure that the entire audience understands a topic on the same level, by targeting the average
attendee one may win some trained employees and lose others
Despite these drawbacks, lecturing is the most cost-effective way of reaching large audiences.

5.18 Simulation Exercises and Role Paying


Role playing and simulation are training techniques that attempt to bring realistic decision making situations
to the trainees
Likely problems and alternative solutions are presented for discussion
The saying there is no better trainer than experience
Demonstration in the real time is executed with this type of training
Experienced employees can describe real world experiences, and can help in and learn from developing the
solutions to these simulations
This method is cost effective and is used in marketing and management training.

5.18.1 Audiovisual
Audiovisual methods such as television, videotapes and films are the most effective means of providing real
world conditions and situations in a short time.
One advantage is that the presentation is the same no matter how many times its played
This is not true with lectures, which can change as the speaker is changed or can be influenced by outside
constraints
The major flaw with the audiovisual method is that it does not allow for questions and interactions with the
speaker, nor does it allow for changes in the presentation for different audiences.

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5.18.2 Job Rotation
Job rotation involves moving an employee through a series of jobs so he or she can get a good feel for the tasks
that are associated with different jobs
It is usually used in training for supervisory positions
The employee learns a little about everything
This is a good strategy for small businesses because of the many jobs an employee may be asked to do.

5.18.3 Apprenticeship
Apprenticeships develop employees who can do many different tasks
They usually involve several related groups of skills that allow the apprentice to practice a particular trade,
and they take place over a long period of time in which the apprentice works for, and with, the senior skilled
worker
Apprenticeships are especially appropriate for jobs requiring production skills.

5.18.4 Internship
Internships and assistantships are usually a combination of classroom and on-the-job training
They are often used to train prospective managers or marketing personnel.

5.18.5 Programmed Learning


Programmed learning, computer-aided instruction and interactive video all have one thing in common
They allow the trainee to learn at his or her own pace
Also, they allow material already learned to be bypassed in favor of material with which a trainee is having
difficulty
After the introductory period, the instructor need not be present, and the trainee can learn as his or her time
allows
These methods sound good, but may be beyond the resources of some small businesses.

5.18.6 Laboratory Training


Laboratory training is conducted for groups by skilled trainers
It usually is conducted at a neutral site and is used by upper- and middle management trainees to develop a spirit
of teamwork and an increased ability to deal with management and peers
It can be costly and usually is offered by larger small businesses.

5.19 Evaluating Training Program


Effectively evaluating training requires the systematic collection of information from a variety of sources
As organisations use training to achieve a variety of organisational goals, there is no universal approach to
evaluating training
Each organisation must select the criteria that are most relevant to their organisational objectives
This white paper will assist organisations in identifying appropriate criteria for assessing their training
programs.

5.20 What Should Be Evaluated?


When choosing evaluation criteria, it is critical to identify what questions need addressing in the evaluation.
Within the training community, the dominant approach to training evaluation categorises criteria into four
levels.

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5.21 Training Evaluation Outcomes

Sr. No Level Outcome


1 Reactions What did the trainees think of the training program?
2 Learning Did the trainees learn the principles, techniques, and attitudes presented in training?

Did the trainees transfer the principles, techniques, and attitudes presented in training
3 Transfer
to the workplace?

4 Results Did the training program address the organisations objectives?

Table 5.2 Training evaluation outcome

The first two levels (reactions and learning) tend to require assessing immediately after training. The second two
levels (behavior and results) require assessing after the learners have completed training and have returned to the
job (generally one month to one year after training).

5.21.1 Reactions
The first criterion for training evaluation is reactions or trainees perceptions of a course
This level of evaluation is the most widely used type of training assessment
Assessing reactions allows trainers to measure if trainees are satisfied with the course
And if they feel that they are learning from the training
Reaction data can provide trainers with valuable diagnostic feedback they can use to modify the courses to meet
the needs of trainees and their organisations.
There are different types of reactions. Those are as follows:

Affective reactions
Assess whether or not the trainees liked or enjoyed the training.

Utility reactions
Assess the trainees perceptions that the skills taught in training were useful and relevant to their jobs.

Instructor reactions
Assess the learners perceptions of the instructors contributions to learning.

Delivery reactions
Assess the students perceptions that the material was presented in an organised and coherent manner.

Technology reactions
Assess the trainees satisfaction with the technology used, and their perceptions that the technology was easy to use
and facilitated learning.

Collecting Reactions Data


After deciding which types of training reaction measures are relevant, trainers should pull the questions together in
a questionnaire. Administer it to learners at the conclusion of training.

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5.21.2 Learning
The second level of a training evaluation involves assessing what the students learned in the training. In measuring
learning, three types of outcomes are generally measured:

Cognitive
Cognitive outcomes include facts and information presented in training.

Skill-based
Skill-based outcomes include knowledge of how to perform the tasks or skills presented in training.

Affective
Affective changes in learners attitudes or motivation.

5.21.3 Behavior
Objective measurements of actual job behavior
Trained observers assessments of job performance
Performance appraisals conducted by the trainee, trainees co-workers, supervisors, and subordinates

5.21.4 Results
Results refer to the degree to which the training met the organisations objectives
In assessing results, it is important to identify the organisations objectives and how the training influenced
these objectives.

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Summary
Training and development is an important component of every organisations survival strategy.
The Development is a related process; it covers not only those activities which improve job performance but
also those which bring about growth of personality.
The training and development is an important aspect of human resource policy of an organisation.
An expert and experienced trainer play s an important role in effective training program.
The training needs can be identified through survey, questionnaires, and interview method and appraisal.
Training methodology includes on the job and off the job training for employee as well as for the managers.
Whereas by other methods such as apprenticeship, job rotation, lectures etc are used for training the
employee.
The evaluation of training program is very important for effective training programs.
There are four criteria for evaluating the training programs and those are reaction, learning, behavior and
results.
Training and development is an important component of every organisations survival strategy.
The Development is a related process; it covers not only those activities which improve job performance but
also those which bring about growth of personality.
Training needs identification so as to improve the transformation process which has to take place in an
organisation.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bandt, A. & Haines, S. G., 2004. Successful Strategic Human Resource Planning. Centre for Strategic
Management.
Training and Developing Employees [pdf] Available at: <http://www.sagepub.com/upm-data/26858_7.pdf>
[Accessed 24 September 2012].
Benets of Training and Development for Individuals and Teams, Organisations, and Society [Online] Available
at: < http://www.owlnet.rice.edu/~antonvillado/courses/12a_psyc630001/Aguinis%20%26%20Kraiger%20
(2009)%20ARP.pdfnd Society> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Employee Welfare, [Video Online ] Available at:
<http://learnerstv.com/video/Free-video-Lecture-10033-Management.htm> [Accessed 21 September 2012].
2010. Human Resource Management-I Video Lecture Course, Safety, Health, Environment, [Video Online ]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10034-Management.htm> [Accessed 21 September
2012].

Recommended Reading
Ashwatappa, K., Human Resource Management, 5th ed., TMH.
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Fisher, C., 2005. Human Resource Management, 5th ed., Shaw Wiley / Biztantra.

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Self Assessment
1. ____________ is an important component of every organisations survival strategy.
a. Training and development
b. Qualification and skills
c. Attitude and aptitude
d. Talent and knowledge

2. The Training and Development process is carried out in any organisation so that employee will be enabling to
face the ______________ in every field and survive gracefully.
a. exam
b. tough competition
c. struggle
d. problem

3. Training is a process of ____________ sequence of programmed behavior.


a. learning
b. understanding
c. civilising
d. improving

4. Training is attempt to improve their___________on the current job and prepares them for an intended job.
a. presentation
b. performance
c. quality
d. quantity

5. ___________ informed worker are less likely to make operational mistakes.


a. Better
b. Worst
c. Less
d. More

6. To improve organisational climate, company designed____________ programs.


a. exam
b. development
c. training
d. coaching

7. The importance of Human Resource ___________to a large extend depends on Human Resource_________.
a. development, management
b. management, development
c. progression, planning
d. succession, forecasting

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8. Job and organisational requirement are not _________________.


a. static
b. active
c. inactive
d. dynamic

9. Trained employees would be a valued asset to an ______________.


a. organisation
b. society
c. institute
d. company

10. ____________ improves the job knowledge and skills at all levels of the organisation.
a. Training
b. Development
c. Succession
d. Planning

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Chapter VI
Employees Growth

Aim
The aim of this chapter is to:

explain various dimensions of career planning

elucidate the concept of the succession planning

describe a companys program drawn for employees betterment

Objectives
The objectives of this chapter are to:

enlist the components of employee growth

explain the facilities provided to the employees by the companies

discuss the aspect drawn in career and succession planning

Learning outcome
At the end of this chapter, you will be able to:

understand how employees career is planned by organisation

identify the policies and facilities given to an employee working in any organisation

understand the duties of HR that they have to carry out for special case employees

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6.1 Introduction
Ensuring companys survival and growth is the most important responsibility of the top management of all
organisations. This responsibility can be best fulfilled by planning management successions to ensure the availability
of the right kind of management staffs at the right time and right position to provide for continued organisational
liveliness and strength.

Unfortunately succession planning does not get the attention it deserves. This is mainly because of mangers that see
a threat in any nominated successor. It is because of the managers desire to cling to his chair as long as possible.
Career planning involves efforts on the part of the organisation to provide opportunities for growth to its employees.
Certainly this growth should be accompanied by development. The other thing matter here is role of employees in
career planning. It involves efforts on the part of employees to clearly think through and decide areas in which they
would like to make a career for themselves.

6.2 What is Career Planning?


Career planning in a broader concept means a lifelong sequence of professional education and development
experiences that project an individual through the world of work
A career can be defined as a sequence of work-related position occupied by a person during his working
life
In the organisational context, it means a series of properly sequenced job related role experiences leading to an
increasing level of responsibility, status, power and rewards to an employee
Career development involves making decision about an occupation and engaging in the activities to attain
career goals
An individual career plan is an individuals choice of occupation, organisation, and career path
Organisational career plan is an organisational system of career movement and growth opportunities from entry
level of an employee in the organisation up to the point of his retirement
Various career planning related activities include:
Succession Planning
Promotions
Demotions
Job Transfers
Job Rotation
Retirement Planning

6.3 Importance of Career Planning


Following points describes the importance of career planning
Career planning is an important aspect of managing people, a process of human resource development and
effective utilisation of talent to obtain optimal performance.
Career planning essentially means helping the employees to plan their career in terms of their capabilities and
capacities within the context of organisational needs.
It is an organisational system of career movement and growth opportunities from the entry level of an employee
in the organisation up to the point of his retirement.
Career planning provides a road map of growth, short-term and long-term career opportunities in the
organisation.
It helps the individual to explore, choose and strive to drive satisfaction with his own career objectives.
Every employee aspires to advance and grow in the organisation, by acquiring more experience, skills and
competencies over a period and demonstrating a desire, capability and performance to achieve higher positions
of responsibility and more satisfying remuneration.

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A planned and administered system of career planning provides such growth opportunities to deserving
candidates.
Career planning helps an organisation to :
Build commitment between individuals and the organisation
Development long-range perspective
Reduce personnel turnover expenses
Lessen employee obsolescence
Ensure the effectiveness of the organisation
Utilise individual learning experiences, knowledge and competencies to achieve personal and work-related
goals.

6.4 Succession Planning


Succession planning is a process of initiating activities connected with finding a suitable person to succeed an
existing person to fill key positional vacancies in the organisation.
Succession planning is a systematic process where the organisation identifies, develops and evaluates the existing
staff to make sure they are ready to assume key role within the organisations when required n the near future
Succession planning differs in the strategic focus from career planning.
In succession planning the concern is less with the career development of the employees and more with the type
of persons required to fill a particular post.
The focus of succession planning is on the identification of potential vacancies and locating a probable
successor.
It creates a succession chart in respect of a particular position while career planning refers the succession plan
to provide guidance to employees as per organisational needs.
It focuses on who would be the best suitable on the basis of performance, experience and could be placed where,
when and how.

6.5 Need for Succession Planning


Vacancies for jobs continuously arise due to multiple reasons
Growing organisations need additional people to man new jobs
Organisations lose existing employee incompetent or undesirable employees
Succession planning plays a vital role in ensuring that only competent people manage the organisation all the
time.

6.6 Other Career Programs


Career development program are often introduced to meet the unique needs of employees
There are some career development programs that is carried out in an organisation and those are as follows:

6.6.1 Work Family Programs


Work-family programs focus on increasing use of flexible work schedule
Training for managers in implementing the schedule
Opening of more on-site child-care centers
Greater use of paid leaving for fathers and adoptive parents
More programs that set goals for advancing women into senior management position
Increasing number of companies holding managers accountable for meeting these goals.

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6.6.2 Relocation Assistance and Hiring Practices


Relocation Assistance and Hiring Practices, focuses on the support provided by firms in assisting spouse of
employees during employee relocation.
The amount and nature of support could vary from company to company.
Some firms have altered their policy on nepotism to allow for hiring both spouses.

6.6.3 Work Family Seminar and Flexible HR Practices


It allows organisations to design programs to help employees manage their work-family conflicts and coping
strategies.
Organisations are changing their practices for:
Recruitment
Travel
Transfer
Promotions
Scheduling hours
Benefits to meet the needs of the larger number of dual career couples.

6.6.4 Flexible Work Schedules


It has being increasingly instituted at workplaces
These are as follows:
Flextime
Job sharing
Part time work
Working from home
Compressed workweeks
Temporary workweeks
Such programs enable the employees to address their work and family concerns. Moreover, it reduces their
potential stress
Furthermore, conflicts between their various life roles are also being reduced
Telecommuting has become very popular
This provides for organisational as well as employee related advantages
Some difficulties with telecommuting are communication problem with other employees, limited access to
necessary supplies and equipment and family interruption.

6.6.5 Outplacement Program


Retrenchment and downsizing are now a professionally managed process in most organisations
The objective here is to assist the affected employees in making the transition to new employment
It could involve re-skilling for new
More relevant skills per market demand. So finding a new job is easier.
It could involve working with placement agencies and recruitment firms to provide interviewing opportunities
for the employees
Outplacement programs stress the importance of self confidence and individual career planning beneficial for
middle or late career employees who are being laid off
Such programs provide for support networks that can play a critical role in making it less traumatic and
fairer.

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6.6.6 Special Programs for Women, Minorities and Employees with Disabilities
As these kinds of employees enter in an organisation, special assistance to such employees is needed in their
career.

6.6.7 Fast Track Employees


Such employees are indentified as a star
High potential for future are placed on a fast track program to enable them to move to senior position quickly
and also helps in retaining this critical talent
The identification and development of these employees require organisation to exert effort to build and monitor
special program that furnish to this special audience
Organisations must provide considerable feedback, training and counseling to those employees as well as offer
quicker job changes and more challenging job assignments, particularly during the employees first few years
on the job.

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Summary
Career planning in a broader concept means a lifelong sequence of professional education and development
experiences that project an individual through the world of work.
A career can be defined as a sequence of work-related position occupied by a person during his working
life.
Career development program must be integrated with and supported by the existing HR program if they are to
be successful.
Career development initiatives need to be shared openly and propagated by the business leader and HR to
improve its visibility and usage by the employee.
Career or job changes by the employee should be based on an understanding of organisations job description,
job positing systems and selection policies.
It is however the responsibility of HR staff to work with management to ensure that career programs are integrated
with the other HR functions and are routinely evaluated.
Career development program must be concerned with organisational and individual effectiveness over the short
and long-term.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Amos, T. L., Ristow, A., Ristow, L. & Pearse, N. J., 2009. Human Resource Management, 3rd ed., Juta and
Company Ltd.
Employee education, training and development [Online] Available at: <http://www.accel-team.com/human_
resources/hrm_07.html> [Accessed 24 September 2012].
HUMAN RESOURCE MANAGEMENT [pdf] Available at: <http://www.csb.gov.hk/english/publication/files/e-
hrmguide.pdf > [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Industrial Relations, [Video Online ] Available at:
<http://learnerstv.com/video/Free-video-Lecture-10035-Management.htm> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Total Quality Management, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10036-Management.htm> [Accessed 24 September
2012].

Recommended Reading
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Patnayak, B., 2005. Human Resource Management, PHI 3IE.
De Cenzo, D. A. & Robin, S.P., 1997. Personnel/Human Resource Management, McGraw Hill.

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Self Assessment
1. A sequence of work-related position occupied by a person during his working life is called .
a. work
b. career
c. career planning
d. job

2. A lifelong sequence of professional education and development experiences that project an individual through
the world of work is called________________.
a. career planning
b. succession
c. career
d. occupation

3. A_______________ involves making decision about an occupation and engaging in the activities to attain
career goals.
a. career development
b. career planning
c. career succession
d. career progression

4. _ ___________ are often introduced to meet the unique of employees.


a. Career development program
b. Work devlopment programe
c. Project development program
d. Career planing program

5. ___________ programs focus on increasing use of flexible work schedule.


a. Work-family
b. Work-friend
c. Work-spouse
d. Work-sibling

6. ______________ employees are indentified as a star.


a. Fast-track
b. Slow-track
c. Handicap
d. Disable

7. Relocation Assistance and Hiring Practices, focuses on the support provided by firms in assisting_________ of
employees during employee relocation.
a. neighbor
b. spouse
c. relatives
d. siblings

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8. The focus of succession planning is on the identification of potential vacancies and locating a probable_____.
a. successor
b. employees
c. candidate
d. worker

9. _________________ provides a road map of growth, short-term and long-term career opportunities in the
organisation.
a. Career planning
b. Career development
c. Career management
d. Career preparation

10. Career development involves making decision about an_____________.


a. living
b. employees
c. occupation
d. management

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Chapter VII
Performance Appraisal

Aim
The aim of this chapter is to:

explain the need of employee review

evaluate the appraisal methods

highlight 360 degree appraisal concept

Objectives
The objectives of this chapter are to:

explain performance evaluation and recognition

describe the technique and method of evaluation

elaborate the concept of 360 degree appraisal

Learning outcome
At the end of this chapter, you will be able to:

understand the significance performance appraisal

implement the techniques of evaluation

comprehend the concept of 360 degree in performance appraisal

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7.1 Introduction
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity
of the same work on the same job being done by two different people. For performance appraisals of employees it is
necessary to understand each employees abilities, competencies and relative merit and worth for the organisation.
Performance appraisal rates the employees in terms of their performance. The history of performance appraisal can be
dated back to the 20th century and then to the second world war when the merit rating was used for the first time.

Performance appraisals are an essential part of performance measurement. Performance appraisal is necessary to
measure the performance of the employees and the organisation to check the progress towards the desired goals
and aims. The latest mantra being followed by organisations across the world being get paid according to what
you contribute. The focus of the organisations is turning to performance management and specifically to individual
performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution
towards the organisational goals. If the process of performance appraisals is formal and properly structured, it helps
the employees to clearly understand their roles and responsibilities and give direction to the individuals performance.
It helps to align the individual performances with the organisational goals and also review their performance.
Performance appraisal takes into account the past performance of the employees and focuses on the improvement
of the future performance of the employees.

7.2 Concept and Need of Employee Review


The performance review meeting should not be strictly formal nor should it be completely informal in nature.
Ideally, the review meeting should be structured, semi-formal meeting which needs prior preparation by the
appraiser as well as the employee for it to be effective.
Following are some points that need to be prepared before the review meeting of performance appraisal.
Inform the date to the employees concerned, time and place for the review meeting well in advance.
Review and be prepared with each and every employees:
Job description
Performance standards
Planned performance goals
Performance measures collected throughout the time period
The critical incidents details
Past appraisals of the employees.
Be ready with all the important dates
Give the employees a copy of the appraisal form
The appraiser needs to completely understand the standards for the employees at same level to maintain the
consistency in the process
Prepare what to say and how to say it calmly
The feedback should be prepared in quantifiable measures where ever possible
The appraiser should be familiar with the performance review form and the details
The employee and the appraiser both should be prepared to discuss and figure out the future goals and training
needs
They should be mentally prepared for constructive feedback
Collect as many evidences to support your point as possible like the monthly, quarterly progress reports.

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7.3 Concept of Performance Appraisal
Performance appraisal is the process of obtaining, analysing and recording information about the relative worth of
an employee.
The focus of the performance appraisal is measuring and improving the actual performance of the employees
and also the future potential of the employees
Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources, performance appraisal is the
systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present
job and his potential for a better job.
Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during
a given period of time and planning for his future
It is a powerful tool to calibrate, refine and reward the performance of the employee
It helps to analyse his achievements and evaluate his contribution towards the achievements of the overall
organisational goals
By focusing the attention on performance, performance appraisal goes to the heart of personnel management
and reflects the managements interest in the progress of the employees.

7.3.1 Objectives of Performance Appraisal


To review the performance of the employees over a given period of time
To judge the gap between the actual and the desired performance
To help the management in exercising organisational control.
Helps strengthening the relationship and communication between superior and
Subordinates Employees
Management Employees.
To diagnose the strengths and weaknesses of individuals so as to identify the training and development needs
of the future
To provide feedback to the employees regarding their past performance
Provide information to assist in the other personal decisions in the organisation
Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

7.4 Types of Appraisal Methods


There are some methods followed by the organisation for doing appraisal of an employee.

7.4.1 Critical Incident Method


The critical incidents for performance appraisal are a method in which the manager writes down positive and negative
performance behavior of employees throughout the performance period.

7.4.2 Weighted Checklist Method


This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared
a large list of descriptive statements about effective and ineffective behavior on jobs.

7.4.3 Paired Comparison Analysis


Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible
options is listed. Each option is compared against each of the other options. The results are tallied and the option
with the highest score is the preferred option.

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7.4.4 Graphic Rating Scales


The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is
the oldest and most widely method used for performance appraisal.

7.4.5 Essay Evaluation Method


This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay
evaluation is a non-quantitative technique this method usually uses with the graphic rating scale method.

7.4.6 Behaviorally Anchored Rating Scales


This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective
or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee
performance evaluation.

7.4.7 Performance Ranking Method


Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Managers
will compare an employee to another employee, rather than comparing each one to a standard measurement.

7.4.8 Management by Objective (MBO) Method


MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the
performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals)
rather than how it is to be accomplished (methods).

7.4.9 360 Degree Performance Appraisal


360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from
the people who work around them. This post also includes information related to appraisal methods such as 720,
540, 180

7.4.10 Forced Ranking (Forced Distribution)


Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For
example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and
10 percent in the bottom.

7.4.11 Behavioral Observation Scale


Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.

7.5 360 Degree Performance Appraisal


Contemporary 360-degree methods have roots as early as the 1940s, however, there is some disagreement
regarding at the start of the technique
Despite these disagreements, one point that most scholars can agree on is 360-degree performance appraisal
has historical roots within a military context
During the 1950s and 1960s this trend continued in the United States within the Military service academies
At the United States Naval Academy at Annapolis, the midshipmen used a multi-source process called peer
grease to evaluate the leadership skills of their classmates
In the corporate world during the 1960s and 1970s, organisations like Bank of America, United Airlines, Bell
Labs, Disney, Federal Express, Nestle, and RCA experimented with multi-source feedback in a variety of
measurement situations.
Subordinate assessments of a supervisors performance can provide:
Valuable developmental guidance
Peer feedback can be the heart of excellence in teamwork
Customer service feedback focuses on the quality of the teams or agencys results.

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7.6 Steps of the Performance Appraisal
There are some steps while doing appraisal process. Those are as follows:

SUPERVISOR COWORKERS

EXTERNAL
ME
CUSTOMERS

INTERNAL
CUSTOMERS ME SUPERVISOR

DIRECT SKIP-LEVAL
ME
REPORTS REPORTS

OTHERS

Fig. 7.1 Performance appraisal

7.6.1 Superiors
Evolution by supervisor is the most traditional source of employee feedback.
This form of evaluation includes both the ratings of individual by supervisors on element in an employees
performance plan and the evaluation of program and teams by senior managers.

Q. What does this source contribute?


The 1st line supervisor is often in the best position to effectively carry out the full cycle of Performance
Management
The supervisor may also have the broadest perspective on the work requirements and be able to take into account
shifts in those requirements.

Q. What is the caution to be addressed?


Superiors should be able to observe and measure all facets of the work to make a fair evaluation.
Supervisors should be trained. They should be capable of coaching and developing employees as well as planning
and evaluating their performance.

7.6.2 Self-assessment
This form of performance information is actually quite common but usually used only as an informal part of
the supervisor-employee appraisal feedback session
Supervisor frequently opens the discussion with:How do you have performed?
In somewhat more formal approach, supervisor asks employees to identify the key accomplishments they feel
best represent their performance in critical and non-critical performance elements
In a 360-degree approach, if self- ratings are going to be included, structured forms and formal procedures are
recommended.

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Q. What does this source contribute?


Self-ratings are particularly useful if the entire cycle of performance management involves the employees in
a self-assessment
The developmental focus of self-assessment is a key factor
Approximately half of the Federal employees in a large survey felt that self-ratings would contribute to a great
or very great extent to fair and well-rounded PA.
Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work
behaviors and task outcomes.

Q. What is the caution to be addressed?


Research shows low correlations between self-ratings and all other sources of ratings, particularly supervisor
ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to defensiveness and alienation
if supervisors do not use good feedback skills
Sometimes self-ratings can be lower than others. In such situations, employees tend to be self-demeaning and
may feel intimidated and put on the spot.
Self-ratings should focus on the appraisal of performance elements, not on the summary level determination.

A range of rating sources, including the self assessments, help to round out the information for the summary
rating.

7.6.3 Peers
With downsizing and reduced hierarchies in organisations, as well as the increasing use of teams and group
accountability, peer is often most relevant evaluators of their colleagues performance
Peers have a unique perspective on a co-workers job performance and employees are generally very receptive
to the concept of rating each other
Peer ratings can be used when the employees expertise is known or the performance and result can be
observed
There are both significant contributions and serious pitfalls that must be carefully considered before including
this type of feedback in a multifaceted appraisal program.

Q. What does this source contribute?


Employees report resentment when they believe that their extra efforts are required to make the boss look
good as opposed to meeting the units goals
Peer ratings have been excellent predictors of future performance and manner of performance.
The use of multiple raters in the peer dimension of 360-degree assessment programs tends to average out the
possible biases of any one member of the group of raters
The increased use of self-directed teams makes the contribution of peer evaluations the central input to the
formal appraisal because by definition the supervisor is not directly involved in the day-to-day activities
of the team.
The addition of peer feedback can help move the supervisor into a coaching role rather than a purely judging
role.

Q. What is the caution to be addressed?


Peer evaluations are appropriate for developmental purposes, but to emphasise them for pay, promotion, or job
retention purposes may not be prudent always
Generally, the identities of the raters should be kept confidential to assure honest feedback. But, in close-knit
teams that have matured to a point where open communication is part of the culture, the developmental potential
of the feedback is enhanced when the evaluator is identified and can perform a coaching or continuing feedback
role

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It is essential that the peer evaluators be very familiar with the team members tasks and responsibilities
The use of peer evaluations can be very time consuming. When used in PA, the data would have to be collected
several times a year in order to include the results in progress reviews
Depending on the culture of the organisation, peer ratings have the potential for creating tension and breakdown
rather than fostering cooperation and support.

7.6.4 Subordinates
An upward-appraisal process or feedback survey is among the most significant and yet controversial features
of a full circle performance evaluation program.
Both managers being appraised and their own supervisor agree that subordinates have a unique, often essential
perspective
The subordinate rating provides particularly valuable data on performance elements concerning managerial
and supervisory behaviors
However, there is usually great reluctance, even fear, concerning implementation of this rating dimension
On balance, the contributions can outweigh the concern if the precautions noted below are addressed.

Q. What does this source contribute?


A formalised subordinate feedback program will give supervisors a more comprehensive picture of employee
issues and needs
Employees feel they have a greater voice in organisational decision-making
The feedback from subordinates is particularly effective in evaluating the supervisors interpersonal skills.
However, it may not be as appropriate or valid for evaluating task-oriented skills
Combining subordinate ratings, like peer-ratings, can provide the advantage of creating a composite appraisal
from the averaged ratings of several subordinates.

Q. What is the caution to be addressed?


The need for anonymity is essential when using subordinate ratings as this will ensure honest feedback
Supervisors may feel threatened and perceive that their authority has been undermined when they must take
into consideration that their subordinates will be formally evaluating them
Subordinate feedback is most beneficial when used for developmental purposes. But precautions should be
taken to ensure that subordinates are appraising elements of which they have knowledge
Only subordinates with a sufficient length of assignment under the manager should be included in the pool of
assessors. Subordinates currently involved in a disciplinary action or a formal performance improvement period
should be excluded from the rating group. Organisations currently undergoing downsizing and/or reorganisation
should avoid this source of PA.

7.6.5 Customers
Setting customer service standards, requires agencies to survey internal and external customers
Publish customer service standards
Moreover, measure agency performance against customer service standards, and measure agency performance
against this standard
Internal customers are defined as users of products or services supplied by another employee or group within
the agency or organisation
External customers are outside the organisation and include, but are not limited to, the general public.

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Q. What does this source contribute?


Customer feedback should serve as an anchor for almost all other performance factors
Including a range of customers in PA program expands the focus of performance feedback in a manner considered
absolutely critical to reinventing the organisation.

Q. What is the caution to be addressed?


Generally the value of customer service feedback is appropriate for evaluating team output (there are
exceptions)
Customers, by definition, are better at evaluating outputs as opposed to processes and working relationships
It is a time-consuming process.

7.7 Important Factor in the 360 Degree Feedbacks


The mission and the objective of the feedback must be clear
Employees must be involved early
Resources must be dedicated to the process, including top managements time
Confidentiality must be assured
The organisation, especially top management, must be committed to the program.

7.8 Advantages of the 360 Degree Appraisal


To an individual:
Helps individuals to understand how others perceive them
Uncover blind spots
Quantifiable data on soft skills

To the team:
Increases communication
Higher levels of trust
Better team environment
Supports teamwork
Increased team effectiveness

To the organisation:
Reinforced corporate culture by linking survey items to organisational leadership competencies and company
values
Better career development for employees
Promote from within
Improves customer service by involving them
Conduct relevant training

7.9 Problem with the 360 Degree Appraisal Process


It is the most costly and time consuming type of appraisal
These programs tend to be somewhat shocking to managers at first. Amocos Bill Clover described this as the
SARAH reaction: Shock, Anger, Rejection, Acceptance, and Help.
The problems may arise with subordinate assessments where employees desire to get the boss or may
alternatively scratch the back of a manager for expected future favors

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The organisation implementing this type of performance appraisal must clearly define the mission and the scope
of the appraisal. Otherwise it might prove counter productive
One of the reason for which 360 degree appraisal system might fail is because the organisations attempt to
assimilate the 360-degree method within a traditional survey research scheme
In traditional survey research, investigators attempt to maximise data collection with as many items/questions
as possible and with large sample sizes
In the case of 360-degree appraisal, creating measurement instruments with many items will substantially
increase non-response errors
In addition, large sample sizes are not typically possible considering that perhaps 4 or 5 sources will rate
an employees performance
As such, statistical procedures that rely on large sample sizes in order to ensure statistical validity might
not be appropriate
Organisations must consider other issues like safeguarding the process from unintentional respondent rating
errors
The culture shock that occurs with any system that creates change. And especially with a modern system
like 360 degree performance appraisal; must be taken care of.

7.10 Management by Objectives (MBO)


The concept of Management by Objectives (MBO) was first given by Peter Ducker in 1954
It can be defined as a process whereby the employees and the superiors come together to identify common goals,
the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed
The essence of MBO is participative goal setting, choosing course of actions and decision making
An important part of the MBO is the measurement and the comparison of the employees actual performance
with the standards set
Ideally, when employees themselves have been involved with the goal setting and the choosing the course of
action to be followed by them, they are more likely to fulfill their responsibilities

7.11 Unique Features and Advantages of MBO


The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity
of the roles and responsibilities expected from them
Understand their objectives to be achieved and
Moreover, help in the achievement of organisational as well as personal goals
To understand the concept of MBO refer given Fig.7.2

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Define
Organisational
Globs

Performance Defining
Appraisals Employee
(Rewards / Objective
punishments

Countinious
Monitoring of
Providing Performance
feedback and Progress

Performance
evaluation /
reviews

Fig. 7.2 Management by objectives

Some of the important features and advantages of MBO are:


Clarity of goals With MBO, came the concept of SMART goals, i.e., goals that are:
- Specific
- Measurable
- Achievable
- Realistic, and
- Time bound.
The goals thus set are clear, motivating and there is a linkage between organisational goals and performance
targets of the employees.
The focus is on future rather than on past
Goals and standards are set for the performance for the future with periodic reviews and feedback
Motivation - Involving employees in the whole process of goal setting and increasing employee empowerment
increases employee job satisfaction and commitment
Better communication and Coordination - Frequent reviews and interactions between superiors and subordinates
helps to maintain harmonious relationships within the enterprise and also solve many problems faced during
the period.

7.12 Benefit of the Performance Appraisal


Appraisal technique is good for both appraise and appraiser. To understand the benefits and the importance of the
appraisal read the following points:

For the appraise


Increased motivation and job satisfaction
Clear understanding of what is expected and what needs to be done to meet expectations
Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations
Improved working relationships with the superior

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Opportunity to overcome the weaknesses by way of counseling and guidance from the superior
Increased sense of personal value as he too is involved in the appraisal process.

For the appraiser


Opportunity to develop an overview of individual jobs
Opportunity to identify strengths and weaknesses of appraises
Increased job satisfaction
Opportunity to link team and individual objectives with department & organisational objectives
Opportunity to clarify expectations that the manager has from teams and individuals
Opportunity to re-prioritise targets
Means of forming a more productive relationship with staff based on mutual trust and understanding

For the company


Improved performance throughout the organisation due to:
Increased sense of cohesiveness and loyalty
Managers are better equipped to use their leadership skills and to develop their staff
Effective communication of organisations objectives and values
Improved overview of tasks performed by each member of a group
Identification of ideas for improvement
Creation and maintenance of a culture of continuous improvement
Communication to people that they are valued.

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Summary
The personnel specialists design the performance evaluation system, train the line managers in the use of the
system and maintain the records.
For performance appraisals of employees it is necessary to understand each employees abilities, competencies
and relative merit and worth for the organisation.
Performance appraisal rates the employees in terms of their performance.
The performance review meeting should not be strictly formal nor should it be completely informal in nature.
MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the
performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals)
rather than how it is to be accomplished (methods).
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback
from the people who work around them.
The 360 degree programs tend to be somewhat shocking to managers at first. Amocos Bill Clover described
this as the SARAH reaction: Shock, Anger, Rejection, Acceptance, and Help.

References
Wilton, N., 2010. An Introduction to Human Resource Management, SAGE.
Decenzo, 2009. Fundamentals Of Human Resource Management, 8th ed., John Wiley & Sons
Performance Management [Online] Available at: <http://www.shrm.org/about/foundation/research/
documents/1104pulakos.pdf > [Accessed 24 September 2012].
Performance Management and Appraisal [pdf] Available at: <http://catalogue.pearsoned.co.uk/assets/hip/gb/
hip_gb_pearsonhighered/samplechapter/027375307X.pdf > [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Organisation Culture, [Video Online ] Available at:
<http://learnerstv.com/video/Free-video-Lecture-10037-Management.htm> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video
Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 24
September 2012].

Recommended Reading
Tayeb, M. H., 2005. International Human Resource Management, Oxford University Press.
Stewart, G. L. & Kenneth, G. B., 2010. Human Resource Management, 2nd ed., Wiley.
Byars, L. & Rue, L., 2010. Human Resource Management, 10th ed., McGraw-Hill/Irwin.

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Self Assessment
1. Performance appraisal rates the employees in terms of their_______________.
a. performance
b. quality
c. ability
d. training

2. Which of the following statements is true?


a. Get paid according to what you contribute
b. Get paid according to what you deserve
c. Get paid according to what you want
d. Get paid according to what is your qualification.

3. The performance review meeting should not be strictly____________.


a. causal
b. informal
c. formal
d. practical

4. Inform the employees about the___________ for the review meeting well in advance.
a. purpose and objective
b. nature and type
c. date, time and place
d. topic

5. Which is the oldest method used for performance appraisal?


a. Critical Incident Method
b. Graphic Rating scales
c. Weighted checklist method
d. Essay Evaluation Method

6. Which of the following is the most costly and time consuming type of appraisal?
a. 360 Appraisal process
b. Management By Objective
c. Performance Ranking Method
d. Behaviorally Anchored rating Scales

7. An important part of the MBO is the measurement and the comparison of the employees__________ performance
with the standards set.
a. past
b. yearly
c. actual
d. best

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8. Customer feedback should serve as an___________ for almost all other performance factors.
a. anchor
b. ladder
c. hook
d. bridge

9. Subordinate feedback is most beneficial when used for____________ purposes.


a. developmental
b. appraising
c. ranking
d. supervising

10. ___________ and standards are set for the performance for the future with periodic reviews and feedback.
a. Target
b. Rule
c. Goals
d. Deadline

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Chapter VIII
Compensation Management

Aim
The aim of this chapter is to:

explain the concept of compensation management to the learners

highlight the role of an organisation in the compensation process

enlist the benefits of the compensation to the employees

Objectives
The objectives of this chapter are to:

elucidate the management of compensation

enlist the different types of wages

explain the need for compensation

Learning outcome
At the end of this chapter, you will be able to:

understand the wage and salary administration in an organisation

comprehend various theories of managing compensation

implement various types of policies and facilities provided to the employees

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Human Resource Management

8.1 Introduction
Human Resource is the most vital resource for any organisation. It is responsible for each and every decision
taken, work done and result. Employees should be managed properly and motivated by providing best payment
and compensation as per the industry standards. The profitable compensation will also serve the need for attracting
and retaining the best employees. Compensation is the salary received by an employee in return for an individual
contribution to the organisation. It is an organised practice that involves balancing the work-employee relation by
providing monetary and non- monetary benefits to employees. Compensation is an integral part of human resource
management which helps motivating the employees and improving organisational effectiveness.

8.1.1 Components of Compensation System


Following are the components of compensation system
Compensation systems are designed keeping in minds the strategic goals and business objectives
Compensation system is designed on the basis of certain factors after analyzing the job work and
responsibilities
Components of a compensation system are as follows:
Job analysis
Pay structures
Salary surveys

8.2 Types of Compensation


Compensation provided to employees can be direct in the form of monetary benefits.
It can be even indirect in the form of non-monetary benefits known as perks, time offs, etc.
Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the
employees in return for their services.
If the compensation offered is effectively managed, it contributes to high organisational productivity.

8.2.1 Direct Compensation


Direct compensation refers to monetary benefits offered and provided to employees in return of the services
they provide to the organisation.
The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical
reimbursements, special allowances, bonus, Pf/Gratuity etc.
They are given at a regular interval at a definite time.

Basic salary
Salary is the amount received by the employees for their service.

House rent allowance


Organisations either provide accommodations to its employees who are from different state or country or they
provide house rent allowances to its employees
This is done to provide them social security and motivate them to work.

Conveyance
Organisations provide cab facilities to their employees
Few organisations also provide vehicles and petrol allowances to their employees to motivate them.

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Leave travel allowance
These allowances are provided to retain the best talent in the organisation
The employees are given allowances to visit any place they wish with their families
The allowances are scaled as per the position of employee in the organisation.

Medical reimbursement
Organisations also look after the health conditions of their employees
The employees are provided with medi-claims including their family members
These medi-claims include health-insurances and treatment bills reimbursements.

Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security
The bonus amount usually amounts to one months salary of the employee.

Special allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest
loans
Insurance, club memberships, etc are provided to employees to provide them social security and motivate them
which improve the organisational productivity.

8.2.2 Indirect Compensation


Indirect compensation refers to non-monetary benefits offered and provided to employees in place of the services
provided by them to the organisation
They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance
Limits, Retirement Benefits, Holiday Homes.

Leave policy
It is the right of employee to get adequate number of leaves while working with the organisation
The organisations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity
leaves, statutory pay etc.

Overtime policy
Employees should be provided with the adequate allowances and facilities during their overtime, if they happened
to do so, such as transport facilities, overtime pay, etc.

Hospitalisation
The employees should be provided allowances to get their regular check-ups, say at an interval of one year
Even their dependents should be eligible for the medi-claims that provide them emotional and social security

Insurance
Organisations also provide for accidental insurance and life insurance for employees
This gives them the emotional security and they feel themselves valued in the organisation

Leave travel
The employees are provided with leaves and travel allowances to go for holiday with their families
Some organisations arrange for a tour for the employees of the organisation
This is usually done to make the employees stress free

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Retirement benefits
Organisations provide for pension plans and other benefits for their employees which benefits them after they retire
from the organisation at the prescribed age.

Holiday homes
Organisations provide for holiday homes and guest house for their employees at different locations
These holiday homes are usually located in hill station and other most wanted holiday spots
The organisations make sure that the employees do not face any kind of difficulties during their stay in the
guest house

Flexible timings
Organisations provide for flexible timings to the employees who cannot come to work during normal shifts due to
their personal problems and valid reasons.

8.3 Need of Compensation Management


A good compensation package is important to motivate the employees to increase the organisational
productivity
Unless compensation is provided, no one will come and work for the organisation. Thus, compensation helps
in running an organisation effectively and accomplishing its goals
Salary is just a part of the compensation system, the employees have other psychological and self-actualisation
needs to fulfill. Thus, compensation serves the purpose.
The most competitive compensation will help the organisation to attract and sustain the best talent. The
compensation package should be as per industry standards.

8.4 Managing Compensation


The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary
structure
Its secondary objective is the establishment and maintenance of an equitable labor-cost structure, i.e., an optimal
balancing of conflicting personnel interests so that the satisfaction of employees and employers are maximised
and conflicts are minimised
The wage and salary administration is concerned with the financial aspects of needs, motivation and rewards
Managers, therefore, analyze and interpret the needs of their employees so that reward can be individually
designed to satisfy these needs
The payment towards manual or mechanical work is referred to as wages
The word pay refers to the payment for services done which would include salary as well as wages
Wages are commonly understood as price of labor
In ordinary parlance, any remuneration paid for services is etymological wage
Benham defines wage as a sum of money paid under contract by an employer to a worker for services rendered
Certain theories were propounded for determination of wages but these could not stand the test of time. A few
theories are discussed below:

8.4.1 Subsistence Theory


This theory, also known as Iron Law of Wages was propounded by David Ricardo (1772-1823)
According to this theory, wages tend to settle at a level just sufficient to maintain the workers and his family at
minimum subsistence levels
The theory applies only to backward countries where laborers are extremely poor and are unable to get their
share from the employers

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8.4.2 Standard of Living Theory
This theory is a modified form of subsistence theory
According to this theory, wages are determined not by subsistence level but also by the standard of living to
which a class of laborers becomes habituated

8.4.3 Residual Claimant Theory


Francis A. Walker (1840-1897) propounded this theory
According to him, there were four factors of production/ business activity viz. land, labor, capital and
entrepreneurship
Wages represent the amount of value created in the production which remains after payment has been made for
all these factors of production. In other words, labor is the residual claimant.

8.4.4 The Wage Fund Theory


According to this theory, after rent and raw materials are paid for, a definite amount remains for labor
The total wage fund and the number of workers determine the average workers share in the form of wages.

8.4.5 Demand and Supply Theory


According to this theory, wages depend upon the demand and supply of labor.

8.4.6 Marginal Productivity Theory


This is an improved form of demand and supply theory
Wages are determined by the value of the net product of the marginal unit of labor employed.

8.4.7 Purchasing Power Theory


According to this theory the prosperity, productivity and progress of industry depend on there being sufficient
demand to ensure the sale of its products and pocketing of reasonable profits
A large pact of the products of industry is consumed by workers and their families and if wages are high, demand
will be good
However, if wages and the purchasing power of the workers are low, some of the goods will remain unsold and
thus output will go down, which will result in unemployment.

8.4.8 The Bargaining Theory of Wages


John Davidson propounded this theory
According to him, wages are determined by the relative bargaining power of workers or trade unions and of
employers
When a trade union is involved, basic wages, fringe benefits, job differentials and individual differences tend
to be determined by the relative strength of the organisation and the trade union
The Tribunals and Wage Boards have generally followed the principles laid down in the Fair Wages Committees
Report on fixing wages
The Committee, in its report, has given a considerable thought to wage differentials and has stated that the
following factors should be taken into consideration for fixation of wages:
The degree of skill
The strain of work
The experience involved
The training involved
The responsibility undertaken

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The mental and physical requirements


The disagreeableness of the task
The hazard attendant on the work, and
The fatigue involved.

8.4.9 Classification of Wages


The International Labor Organisation (ILO) in one of its publications, classified wages as under:
The amount necessary for mere subsistence
The amount necessary for health and decency and
The amount necessary to provide a standard of comfort
In India, wages are classified as:
Minimum wage
Fair wage; and
Living wage

Minimum wage
A minimum wage has been defined by the ILO committee as the wage which must provide not only for the
bare sustenance of life, but for the preservation of the efficiency of the worker. For this purpose, the minimum
wage must provide for some measure of education, medical requirements and amenities
In other words, a minimum wage should provide for the sustenance of the workers family, for his efficiency,
for the education of his family members, for their medical care and for some amenities
It is very difficult to determine the minimum wage because conditions vary from place to place, industry to
industry and from worker to worker
However, the principles for determining minimum wages were evolved by the Government and have been
incorporated in the Minimum Wages Act, 1948
The important principle being that minimum wages should provide not only for the bare sustenance of life but also
for the preservation of the efficiency of the workers by way of education, medical care and other amenities.

Fair wage
According to the ILO committee on Fair Wages, it is the wage which is above the minimum wage but below
the living wage
The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the capacity of the
industry to pay
Between these two limits, the actual wages should depend on considerations of such factors as:
The productivity of labor
The prevailing rates of wages in the same or neighboring localities
The level of the national income and its distribution and
The place of industry in the economy

Living wage
This wage was recommended by the ILO committee as a fair wage and as ultimate goal in a wage policy
It defined as one which should enable the earner to provide for himself and his family not only the bare essentials
of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection
against ill-health, requirements of essential social needs and a measure of insurance against the more important
misfortunes including old age
In other words, a living wage was to provide for a standard of living that would ensure good health for the
worker, and his family as well as a measure of decency, comfort, education for his children, and protection
against misfortunes.

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8.5 Designing and Administering Benefits
The persons who manage enterprises fix wages in the first instance. The designing and administering benefits are
as follows:

8.5.1 Collective Bargaining


Collective bargaining is a technique by which disputes of employment are resolved amicably, peacefully and
voluntarily by settlement between labor unions and managements.
The method of collective bargaining in resolving the Industrial dispute, while maintaining industrial peace has
been recognised as the bed rock of the industrial dispute Act.
Under the provision of the industrial dispute Act, the settlement arrived at by process of collective bargaining
with the employer has been given a statutory recognition under Section 18 of the industrial dispute Act.
Under the industrial dispute Act two types of settlements have been recognised:
Settlement arrived in the course of conciliation proceeding before the authority
Such settlements not only bind the member of the signatory union but also non-members as well as all the
present and future employees of the management
Settlement not arrived in the course of conciliation proceedings.
But the settlement is signed independently by the parties, to the settlement binds only such members who
are signatory or party to the settlement.
Section 19 of the Act prescribes the period of operation inter alia of such a settlement and envisages the
continuation of the validity of such a settlement unless the same is not replaced by another set of settlement,
while Section 29 prescribes the penalty for the breach of such a settlement

8.5.2 Mediation and Conciliation


Under the Act, effective conciliation machinery has been provided which can take cognizance of the existing as
well as apprehended dispute. Either on its own or on being approached by either of the parties to the dispute.The
Act further makes conciliation compulsory in majority of disputes

8.5.3 Investigation
Section 6 of the Act empowers the government to constitute a court of inquiry, for inquiring into any matter
pertaining to an Industrial Dispute
The procedure of the court of inquiry has also been prescribed by Section 11
While the report of the court is not binding on the parties, many time it paves the way for an agreement

8.5.4 Arbitration
Voluntary arbitration is a part of the infrastructure of resolving the Industrial Dispute in the Industrial
adjudication
Section 10 of the Act provides for the provision for resolving the Industrial Dispute by way of arbitration, which
leads to a final and binding award
However, in India arbitration is not a preferred way of resolving Industrial Disputes

8.5.5 Adjudication
Adjudication means a mandatory settlement of Industrial Disputes by labor courts, Industrial Tribunals or National
Tribunals under the Act or by any other corresponding authorities under the analogous state statutes
By and large, the ultimate remedy of unsettled dispute is by way of reference by the appropriate government to
the adjudicatory machinery for adjudication
The adjudicatory authority resolves the Industrial Dispute referred to it by passing an award, which is binding
on the parties such reference

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There is no provision for appeal against such awards and the same can only be challenged by way of writ under
Articles 226 and 227 of the Constitution of India before the concerned High Court or before the Supreme Court
by way of appeal under special leave under Article 136 of the Constitution of India
In a nutshell, wages are influenced both by social and economic factors.

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Summary
Human Resource is the most vital resource for any organisation. It is responsible for each and every decision
taken, work done and result.
According to Subsistence theory, wages tend to settle at a level just sufficient to maintain the workers and ones
family at minimum subsistence levels.
Purchasing power theory holds that the prosperity, productivity and progress of industry depend on there are
four factors land, labor, capital and entrepreneurship.
A minimum wage has been defined by the ILO committee as the wage which must provide not only for the
bare sustenance of life, but for the preservation of the efficiency of the worker. For this purpose, the minimum
wage must provide for some measure of education, medical requirements and amenities.
Fair Wages is defined as, it is the wage which is above the minimum wage but below the living wage.
Living wages is defined as one which should enable the earner to provide for himself and his family not only
the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his
children, protection against ill-health, requirements of essential social needs and a measure of insurance against
the more important misfortunes including old age.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Dessler, G., 2007. Human Resource Management, 11th ed., Prentice Hall.
Compensations Role in Human Resource Strategy [pdf] Available at: <http://www.shrm.org/Publications/Books/
Documents/5_chapter3.pdf> [Accessed 24 September 2012].
Compensation Management [Online] Available at: < http://www.citehr.com/68382-what-definition-compensation-
management.html> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Organisational Development And Business
Effectiveness, [Video Online ] Available at: < http://learnerstv.com/video/Free-video-Lecture-18514-Management.
htm> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Development And Employee
Welfare [Video Online] Available at:<http://learnerstv.com/video/Free-video-Lecture-18515-Management.htm>
[Accessed 24 September 2012].

Recommended Reading
Singh, A. K. & Duggal, B.R. Human Resource Management, Sun India Publications.
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Bohlander et all, 2004. Managing Human Resources, 13th ed., Cengage Learning.

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Self Assessment
1. Employees should be managed properly and motivated by providing best payment and compensation as per
the _______________ .
a. industry standards
b. governments laws
c. industrial policy
d. industrial rules

2. _____________ is the salary received by an employee in return for his/her contribution to the organisation.
a. Punishment
b. Compensation
c. Profit
d. Monetary

3. Compensation systems are designed keeping in mind the and business objectives of the organisation.
a. strategic goals
b. planning
c. plotting
d. analysis

4. Compensation provided to employees can be ____________in the form of monetary benefits and/or ___________
in the form of non-monetary benefits known as perks, time off, etc.
a. direct, indirect
b. indirect, direct
c. random, straight
d. straight, random

5. Organisations either provide ___________ to its employees who are from different state or country or they
provide house rent allowances to its employees.
a. accommodations
b. extra salary
c. traveling allowance
d. free calling facility

6. Organisations also look after the_________________conditions of their employees.


a. pick and drop facility
b. accommodation
c. health
d. entrainment

7. ______________ is paid to the employees during festive seasons to motivate them and provide them the social
security
a. Bonus
b. Salary
c. Allowance
d. Compensation

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8. ____________ is the right of employee to get adequate number of leave while working with the organisation.
a. Leave policy
b. Medical policy
c. Traveling policy
d. Overtime policy

9. The basic purpose of wage and salary administration is to establish and maintain an ____________ wage and
salary structure.
a. equitable
b. fair
c. unfair
d. bias

10. Which of the following theory is known as Iron Law of Wages?


a. Purchasing power
b. Standard of living
c. Demand and supply
d. Subsistence

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Chapter IX
Job Evaluation

Aim
The aim of this chapter is to:

explain the concept of job evaluation

elucidate various job evaluation methods

enlist the responsibilities of job evaluation

Objectives
The objectives of this chapter are to:

evaluate the job evaluation methods

elucidate the concept of job satisfaction

explain the need to transfer or promote the employees

Learning outcome
At the end of this chapter, you be able to:

understand what is meant by job evaluation

differentiate between various types of job evaluation

understand job descriptions as well as job evaluation plans

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9.1 Introduction
Job evaluation is a systematic process that you can use to determine the relative level, importance, complexity, and
value of each job in your organisation. With a successful job evaluation system, you can compare each job to other
jobs within your organisation. It is best to perform job evaluation after work analysis. Job evaluation, in conjunction
with work analysis, helps you develop a job description that is broad, descriptive, and flexible so that you can adapt
the description to your organisations changing needs.

9.2 Assess Employee Contribution


Job evaluation helps you establish and qualify differences in employee contribution across jobs. These differences
provide a foundation for employee compensation decisions. The job evaluation process measures the elements of a
job and produces an overall score. In each case, you evaluate the job, not the employee who performs the job.

9.3 Definition of Job Evaluation


Job evaluation deals with money and work. It determines the relative worth or money value of jobs.
The International Labor Organisation defined job evaluation as an attempt to determine and compare demands
which the normal performance of a particular job makes on normal workers without taking into account the
individual abilities or performance of the workers concerned.
Wendell L. French defined job evaluation as a process of determining the relative worth of the various job
within the organisation, so that different wages may be paid to jobs of different worth.
Job evaluation is defined as the overall activity of involving an orderly, systematic method and procedure of
ranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs.
British Institute of Management (1970) defined job evaluation as, the process of analyzing and assessing the
content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for a
remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of
new pay structures by defining relatives between jobs on a consistent and systematic basis.
Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading
them by comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix
compensation payable to the concerned job holder.

9.4 Objective of Job Evaluation


The following objectives are derived from the analysis of the above-mentioned definitions:
To gather data and information relating to job description, job specification and employee specifications of
various jobs in an organisation.
To compare the duties, responsibilities and demands of a job with that of other jobs.
To determine the hierarchy and place of various jobs in an organisation.
To determine the ranks or grades of various jobs.
To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other words, equal wages
are fixed to the jobs of equal worth or value.
To minimise wage discrimination based on sex, age, caste, region, religions etc.

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9.5 Essentials for the Success of Job Evaluation Programme


Following are the essentials for the success of job evaluation programme:
Compensable factors should represent all of the major aspects of job content.
Compensable factor selected should
Avoid excessive overlapping or duplication
Be definable and measurable
Be easily understood by employees and administrators
Not cause excessive installation or administrative cost and
Be selected with legal considerations in mind.
Operating managers should be convinced about the techniques and programme of job evaluation.
Furthermore, they should be trained in fixing and revising the wages based on job evaluation.
All the employees must be aware of the job evaluation technique and programme.
Employees groups and grades must be covered with job evaluation programme.
The programme of and techniques selected for job evaluation should be easy to understand by all the
employees.
Trade union acceptance and support to the programme should be obtained.

9.6 Procedure of Job Evaluation


Following is the procedure of job evalution
The basic procedure of job evaluation is to compare the job content of one job with those of another job.
The content to be compared is decided based on intuition of the rater or by comparing with other jobs focusing
on certain factors.
These factors are known as compensable factors.
Some organisations decide these factors based on the types of the jobs and internal factors.
Some other organisations adopt the factors from other similar companies.
Job are evaluated more systematic ally taking the compensable factor into account.
Indian institute of personnel management has evolved the following steps for evaluating jobs:

9.6.1 Analyse and Prepare Job Description


Job evaluation is the outcome of job analysis.
Job analysis provides information necessary for appraising job skills, knowledge, abilities, and aptitude.
Job description provides the information relating to duties and responsibilities.
Job specification provides information relating to employee minimum acceptable qualities.

9.6.2 Select and Prepare a Job evaluation Plan


Job should be divided into detailed task and positions.
It also includes selection of factors, elements needed for the performance of the jobs, determining the money
value of each factor and element and writing instructions for evaluations.

9.6.3 Classify Jobs


Classify the jobs in a sequential order based on their significance and contribution to the organisation.
Also assign money value to each class.

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9.6.4 Install the Programme
Educate the employees, win their confidence and then put the programme into operation.

9.6.5 Maintain the Programme


This step involves updating the job evaluation programme; bring modification based on the changes in the
condition and situations.
Make sure from time to time that the programme runs smoothly and perfectly.

9.7 Job Evaluation Method


Jobs are evaluated on the basis of various techniques. These are grouped into two classes:
Quantitative
Non-quantitative

Non- quantitative technique


The Non-Quantitative techniques are simple and crude techniques. They are ranking and job classification
methods:

Ranking method
Simple Ranking:
This is the simplest and administratively the easiest technique
The evaluator compares one job with other jobs based on duties, responsibilities and demands made by the
jobs on the job incumbent and the degree of importance of the job to organisation and ranks all the jobs
from the most important to the least important
The evaluator has to appraise and rank the jobs but not the job incumbents

Ranking the key jobs


Ranking all the jobs at a stretch under simple ranking method is difficult
The evaluator, in order to minimise this problem has to be identifying the key or representative jobs at the first
stage, rank the key jobs at the second stage, identify and rank all other jobs at the third stage.

Paired comparison
Another problem of ranking method is that each job cannot be compared with all other jobs for the purpose of
ranking
The method of paired comparison can be adopted to minimise this problem
Under this paired comparison ranking method the evaluator ranks each job in turn against all other jobs to be
appraised, so that a series of paired rankings is produced
This method is more comprehensive, logical and reliable compared to the simple ranking method.

Single factor ranking method


Another problem in ranking method is difficulty of operation. Ranking has to be done on the basis of a number
of factors
In view of this Goldenberg has suggested a single factor ranking scheme
The single factor considered is the discretionary content present in each job related to other jobs
Single most important task to be performed in a job is to identify and compare within the single most important
task to be performed in the other jobs. Thus, pure ranking dose not cover these refinements.

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Job evaluation by classification


Job classification is another easy and well-known job evaluation method that categorises jobs into groups of
relatively the same value for compensation
The groups are classified or categorised by similar compensation factors like independent judgment, physical
effort and so on.
The advantage of this method is that many jobs are already grouped for pay ranges and organisational
planning.

Job evaluation by point method


The point method is a more-complicated, analytical in nature
It involves assigning points based on several compensation factors and the degree to which they are present in
each job, to arrive at a quantitative point rating
It is a widely used job evaluation technique.

Job evaluation by factor comparison


Another popular job evaluation technique, the factor comparison, is a more in-depth ranking method
It ranks each job for several compensation factors like skill, knowledge and difficulty, which are combined into
a total rating.

Quantitative method
The quantitative method is divided into two type i.e. Point method and factor comparison method

Point method
This method was introduced by the Merrill R. Lott
This method is analytical in the sense that jobs are broken into components for purposes of comparison
This method is quantitative as each component of the job is assigned a numerical value
Each factor is divided into degrees or levels and point value is assigned to each level and point values are
assigned to each level
The total of point values assigned to each factor gives the total point value for each job which can be
compared
Typically the compensable factors include the major categories of:
Skill:
Education
Training
Judgment
Analysis
Mental complexity
Mental dexterity
Adaptability etc
Responsibilities:
Monetary loss
Machines
Materials
Safety
Policy

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Effort:
Physical demand
Visual effort
Concentration
Mental effort
Alertness etc
Working Conditions:
Working conditions and hazards etc. are the points included in the working condition.

9.8 Advantages of Job Evaluation


Following are the advantages of job evaluation
Job evaluation is a logical and an objective method of ranking jobs relative to each other. It may thus help in
removing inequities in existing wages structures and maintaining sound and consistent wage differences in a
plant or an industry
The method replaces accidental factors accidental factors occurring in less systematic procedures of wages
bargaining by more impersonal and objective standards, thus establishing a clearer basis for negotiation
The method may lead to greater uniformity in wage rates and simply the process of wages administration
Information collected in a process of job description and analysis can be used for improvement of selection,
training, transfer and promotion.

9.9 Limitations of Job Evaluation


Following are the limitations of job evaluation
Though there are many ways of applying job evaluation in a flexible manner, rapid changes in technology and
in the study of demand for particular skills, create problems of adjustment
When job evaluation results in substantial changes in the existing wage structure, the possibility of implementing
these changes in a relatively short period may be restricted by the financial limits within which the firm has to
be operate
When there are a large proportion of incentive workers, it may be difficult to maintain a reasonable and acceptable
structure of relative earnings
The process of job rating is to measure the same with accuracy
Job evaluation takes a long time to complete, requires specialised technical personnel and is quite expensive.

9.10 Job Satisfaction


Job satisfaction is determined by a set of personal and job factor, personnel factors relate to workers age length
of service intelligence, skill and other personality or temperamental factor
R. Hoppock has made pioneering studies on job satisfaction and mention six factor as major determinants of
job satisfaction, namely:
The manner in which the individual reacts to unpleasant situations
The facility with which (s)he adjusts to other persons
Individuals relative status in the social and economic group with which (s)he identifies himself/herself
The nature of work in relation to mans abilities, interests and training, security & loyalty
One of the objectives of an enlightened personnel policy is to increase job satisfaction
To achieve the objective of job satisfaction of the worker, the management must have a clear idea as to what
the worker want from their job.

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9.11 Determinants of Job Satisfaction


Determinants of job satisfaction can be enumerated as follows:
Recognition as an individual
A meaningful task
Job security
Fair wages
Opportunity to advance
Avoidance of arbitrary action
Good working condition
Reputation of the concern
A voice in matters affecting him
Competent leadership and
Congenial associates.

9.12 Promotion and Transfers


From a general point of view, selection involves the following types of problems:
Selection from within or outside the company
Hiring new employees from outside the company
Promotion with in the company
Discharge of old employees.

9.13 Promotion
A few companies do have a clear cut policy while certain organisations issue circulars as and when they need
Many companies develop policies over a period of time through settlements and agreements with the workers/
unions
In promoting employees, consideration should be given for establishment of the horizontal or vertical
promotion
The desirability of securing assistants who complement rather than supplement their superiors is the major point
in a successive plan which is an integral part of manpower planning.

9.14 Definitions of Promotion


PIGORS & MEYERS:
PIGORS & MEYERS, define promotion as the advancement of an employee to a better job - better in terms
of greater respect of pay and salary. Better houses of work or better location or better working conditions-
also may characterise the better job to which an employee seeks promotions, but if the job does not involve
greater skill or responsibilities and higher pay, it should not be considered a promotion. This definition
takes into consideration only a Vertical promotion.
DALE YODER:
According to Dale Yoder, it is a movement to a position in which responsibilities and presumably the prestige
are increased. Promotion involves an increase in rank ordinarily; promotion is regarded as a change that results
in higher earnings, but increased earnings are essential in a promotion. This definition talks of both vertical
and horizontal promotions.
KOONTZ O`DONNEL:
KOONTZ ODONNEL observed that promotion is a change within the organisation to a higher position
with greater responsibilities and used for more advanced skills than in previous position. It usually involves
higher status and increase in pay.

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Promotions can be from within or can be from outside depending upon the need of the organisation as both have
certain advantages and disadvantages
So also are the arguments for and against the concept of promotion on seniority or merit
A wise policy which is followed by many organisations is a proper blending of both

9.15 Transfers
PIGORS & MEYERS Consider transfer as the movement of an employee from one job to another on the same
occupational level and at about the same level of wages or salary
No appreciable change in task or responsibility is expected, SCOTT and others define transfer as the movement
of an employee from one job to another. It may involve a promotion, demotion or no change in job status other
than moving from one job to another.

9.16 Types of Transfer


Transfers are of many types. It may be a reward transfer or a punishment transfer.

Transfers can be classified as follows:


Production transfers
Replacement transfers
Versatility transfers
Shift transfers
Remedial transfers

They can be temporary or permanent. However, it is better to have a clear-cut and flexible transfer policy. Otherwise,
it may lead to a lot of heart- burning among the affected employees.

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Human Resource Management

Summary
Job evaluation deals with money and work.
0Compensable factors should represent all of the major aspects of job content.
Job analysis provides information necessary for appraising job skills, knowledge, abilities, and aptitude.
The term wage is commonly used for those employees whose pay is calculated according to the number of
hours worked.
A Job is defined as a , a process of determining the relative worth of the various job within the organisation,
so that different wages may be paid to jobs of different worth.
Job satisfaction is determined by set of personnel and job factors.
Job evaluation is concerned with assessing the value of the job in relation to another.
Job satisfaction is determined by a set of personal and job factor, personnel factors relate to workers age length
of service intelligence, skill and other personality or temperamental factor.

References
Rao, P. S. 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bernardin, H. J., 2012. Human Resource Management, 6th ed., McGraw-Hill/Irwin.
Adamus, W., A New Method of the Job Evaluation, [pdf] Available at: <http://www.creativedecisions.
net/~rozann/0Proceedings/Final_Papers/106_Adamus_REV_FIN.pdf> [Accessed 27 October 2010].
Human Resources Job Description & Job Evaluation Procedures [pdf] Available at: <http://www.mcc.edu/
hr_protected/pdf/Job_Evaluation_Procedure_For_Supervisors.pdf> [Accessed 24 September 2012]
2010. Human Resource Management-I Video Lecture Course, Human Resource Development In Indian
Organisations, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-18516-Management.
htm> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Development A Scenario , [Video
Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-18517-Management.htm> [Accessed 24
September 2012].

Recommended Reading
Lepak, D. & Gowa, M., 2008. Human Resource Management, 1st ed., Prentice Hall.
Aswathappa, K. International Human Resource Management, Sadhna, Das, McGraw Hill Companies.
French, W., 2006. Human Resources Management, 6th ed., South-Western College.

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Self Assessment
1. Job evaluation is a systematic process that you can use to determine the relative level, importance,
________________ and value of each job in your organisation.
a. ease
b. difficulty
c. complexity
d. simplicity

2. Job evaluation helps you establish and qualify differences in employee contribution across____________.
a. institutes
b. organisations
c. jobs
d. work place

3. Objective of the Job evaluation is, to gather data and information relating to__________ , job specification and
employee specifications of various jobs in an organisation.
a. job description
b. job designation
c. job recruitment
d. job evaluation

4. Who Define this: A process of determining the relative worth of the various jobs within the organisation, so
that different wages may be paid to jobs of different worth.?
a. Wendell L. French
b. Pigors&Meyers
c. Dale Yoder
d. R.Hoppock

5. In which method _________is quantitative as each component of the job is assigned a numerical value.
a. simple ranking
b. point method
c. skills
d. responsibilities

6. In promoting employees consideration should be given for establishment of the __________________


promotion.
a. upward and downward
b. in circular
c. in-between
d. horizontal and vertical

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Human Resource Management

7. Which is the following statements is true


a. Job satisfaction is determined by a set of personal and job factor, personnel factors relate to workers age
length of service intelligence, skills and other personality or temperamental factor
b. Job satisfaction is determined by a set of personal and family , personnel factors relate to workers age and
personality
c. Job satisfaction is determined by a set of personal and job factor, personnel factors relate to workers job
description, working ability and competences of the employee.
d. Job satisfaction is determined by a set of personal and job factor, job factors relate to workers age length
of service intelligence, skill and other personality or temperamental factor.

8. Opposite to promotion is_____________ .


a. demotion
b. support
c. encouragement
d. upgrading

9. Job analysis is the process of getting information about_____________ .


a. personnel
b. manager
c. organisation
d. jobs

10. The basic procedure of job evaluation is to compare the job content of____________ .
a. one job requirement with those of another
b. one competence with those of anothers
c. one job with those of another job
d. our jobs with the employees

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Chapter X
Morale

Aim
The aim of this chapter is to:

introduce the concept of morale to students

explain the significance of morale

explain various methods of measuring morale of an employee

Objectives
The objectives of this chapter are to:

explain the concept of low morale and high morale

discuss management practices affect morale in an organisation

explain the concept of guided and unguided interview

Learning outcome
At the end of this chapter, you will be able to:

understand morale and its importance

understand the high and low morale concept

identify the technique of measuring morale of an employee

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Human Resource Management

10.1 Introduction
Organisational morale means as follows:
The way people feel about their job and the organisation they work for
It includes the atmosphere of the workplace and the way people work together as a team
The general level of confidence and satisfaction at work place is nothing but employees morale
High organisational morale usually leads to happy workers and financial success
Morale is internal feeling and it is inspired by the environment
In general it is referred as esprit de crop, a feeling enthusiasm, zeal, confidence in individuals or groups that
they will be able to cope with the tasks assigned to them

For example, an organisation with high morale would have a busy, but positive atmosphere, where everyone knew
what was expected and worked well together to meet these common goals.

10.2 Meaning of Morale


Morale has been variously defined by different authors. Please refer table given below:

Sr. No. Authors Name Definition

Good organisational morale is a condition in which individuals and groups


Professor Ralph
1. voluntarily make a reasonable subordination of their personal objectives for their
C. Davis
organisation.

Morale means evident commitment, that is, demonstrated spirit, enthusiasm, and
Dale Yoder and confidence in the organisations policies, programs, and accomplishments. Morale is
2.
Paul D. Standohar revealed by what individuals and groups say and do to show an interest in, understanding
of, and personal identification with work-team survival and success.

A mental condition or attitude of individuals and groups which determines their


willingness to co-operate. Good morale is evidenced by employee enthusiasm,
Edwin B. voluntary conformance with regulations and orders, and a willingness to co-operate
3.
Filippo with others in the accomplishment of an organisations objectives. Poor morale is
evinced by surliness, in subordination, a feeling of discouragement and dislike of the
job, company and associates.

It is a state of mind and emotions affecting the attitude and willingness to work,
4. Haimann
which in turn, affect individual and organisational objectives.
The sum total of several psychological qualities which include courage,
5. Joseph D. Mooney
fortitude, resolution, and above all, confidence.

Table 10.1 Morales definition

10.3 What is Low Morale?


Low morale, on the other hand, can be a destructive force. It can reduce productivity, harm relationships with
clients and customers, and, ultimately, destroy the organisations bottom line. Many different things can trigger
low organisational morale. Layoffs and job insecurity are among the most obvious. But, morale problems can also
come from poor communication between managers and workers, hard work not being recognised or rewarded, or
even missed opportunities for employees to socialise and bond with one another.

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10.4 Importance of Morale
Morale directly impacts the working of an individual in a team towards the realisation of common objectives
Morale therefore is individual specific as well as general
Building of morale is not a mechanical problem that could be solved by either rewards or by punishments
The best way to manage it is to proactively do a lot of employee related interventions that will together impact
morale positively
Morale can be broadly divided into three categories:
The first concerns, off-the job satisfaction that is expected from work such as:
Income
Security
Stature in the community
The second concerns on-the-job satisfaction:
For example-job interest
Opportunity for advancement
Status within the organisation
The third group concern personal satisfaction:
Job satisfaction that employee get is for organisation in the form of:
Growth
Achievement powers
Job expertise etc.
Each category has its impact and can damage employee morale to varying degrees
It can result in employee behavior that ranges from engaging in simple gossip to the employee exiting the
company
One of the ill effects of low employee morale is the bad-mouthing that the employee might engage in outside
the workplace with friends and might even engage in negative press reporting
This could be very harmful for the market perception about the company and even impact sales and revenue
Morale can also be understood as the spirit and confidence with which the employee performs his/her job
It is a complex psychological quality that is impossible to force on someone, difficult to measure, and easily
destroyed
The level of morale is a result of the degree to which the overall needs of the individual are fulfilled.

10.5 Employees Morale


Employees Morale can be classified as follows:

10.5.1 The Employees Background


Levels of indigence and education
Type of personality
The above two points largely determine the way in which one seeks to fulfill individual needs for belonging,
esteem, and self-realisation
Morale hinges on the satisfaction of these needs.

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10.5.2 An Employees Personal Environment Encompasses


His/her relations with his/her family, friends and neighbors
The employee brings thoughts of his/her home and social life with work and they influence thinking and attitudes
while on the job.

10.5.3 Management Practices Influencing Morale Include


Manager behavior
Company policies and procedures with respect to salaries
Promotion methods
Employee services and benefits
Working conditions
Handling grievances
Disciplinary actions
Handling employee issues etc.

10.5.4 Bottom Line


Employee morale is all about the perception of the employees expectations and reality
The closer the individuals environment comes to providing the kinds of rewards one expects; the better will
be ones morale
And as this is unique to each individuals expectations
All of the categories mentioned above need to be proactively redressed in order to best manage morale.

10.6 Morale and Productivity


It is assumed that high morale and high productivity go hand in hand
Since morale manifests itself in the attitudes of employees, it is important to know about the results of high
and low morale
One of the most unpredictable effects of the level of morale is its impact on employee productivity
The productivity of a group is a composite of many factors, at least one of which is the general state of mind
or the commitment of the group
Formerly it was thought that high morale resulted in high productivity
The more we study the casual relationship in business; the less prone we are to oversimplify these
relationships
Research is repeatedly proving that this correlation is not as simple
Various studies have revealed that the group having the highest morale need not always be the highest in
productivity
As morale is made up of so many factors, so is productivity, hence both the terms are combination of complex
factors
The higher the groups satisfactions the higher the productivity
Though high morale may not be the single cause of the high productivity
A high-producing group nearly always has a reasonably high morale
Morale development most of the time results in successful operations
Where the individuals can relate their respective endeavors and objectives to the success of the enterprise
as a whole

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So this concluded that A morale-building organisation tends to utilise fully the skill, initiative, judgment,
and training of its members, and through such utilisation succeeds in building up these and other qualities
in everyone, so that the abilities of all constantly expand, and the organisation thus is able to succeed and
grow.

10.7 Measurement of Employees Morale


Morale can be measured by accessing attitude and job satisfaction
As it is intangible and subjective concept, it cannot be directly measured or evaluated
Employees may be unwilling to express their feelings of satisfaction or dissatisfaction with their job to the
management
Methods of measuring morale all the way from the hunch or general feeling, appraisal to reasonably
scientific efforts.
There are some scales on which we can measure employees Morale:
The supervisor/executives impressions
The guided interview
The unguided interview
A combination of the guided and unguided interview
An analysis of company records
The listening-in process
The questionnaire
A combination of any of the foregoing methods.

10.8 Interview Method


Interview may be of two types:
Guided
Unguided

10.8.1 Guided Interview


In guided interview method emphasises mainly on the questions set out before hand by consulting the higher
management
Under this method, the investigators go to the respondent with printed questionnaires
Explaining them the general objects and provide explanation, if asked for
The interview asks a series of formal questions with simple choice responses
Similar to those included in the printed questionnaire which answered orally.

10.8.2 Unguided Interview


In unguided interview the participants are encouraged to talk freely about what he thinks about the organisation
and its people
There are no specific or formal questions
The interviewer listens to and encourages the employees to take freely with an assurance that talk will remain
secret and confidential
It may be held individually or in groups
The interviewer may ask questions of general interest and should avoid specific questions.

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Human Resource Management

10.9 A Combination of the Guided and Unguided Interview


To combine the two methods, the interviewer may start with the guided interview, which should be not too long
or cover too much territory
The interviewer is then invited to discuss any subject that (s)he may like to talk about
During the guided interview some persons tend to bring in material that has no special significance in relation
to the information sought
The interviewer should observe such instances and encourage the interviewee to follow up these leads during
the unguided position of the interview
As a matter of fact, few guided interviews are strictly kept on the detailed subjects laid out in the formal
program
And a conscious effort has to be put forth to get the most out of the unguided phases of the interview.

10.10 Companys Record Method


The investigators analyses the records and bring out the variations in output, such as:
Rate of absenteeism
Labor turnover and accident
Grievances
Complaints and their severity
By analysing the records, one checks the extent to which organisation is achieving results
The extent of increase or decrease in profitability, productivity or any other direct benefits to the enterprise
It is the indirect method of measuring the employee morale.

10.11 General Impression of the Supervisor


Some supervisors may not be able to tell you how they know the morale of their men (team member)
But they enjoy such an intimate relationship with their team member that they do know what their attitudes
are
They usually know how to get things done according to the methods they have been taught, but few of them
have had any special training in evaluating morale as such
Some executives are inspirational leaders and capable of developing a high morale, but few of these are trained
in observing and evaluating morale standards
Executives should be encouraged to strive to sense the morale situation and should be aided by more accurate
tools that are available.

10.12 Listening-in by a Trained Observer


Whiting Williams of Cleveland, Ohio has developed the listening-in technique to which is called Whiting Williams
Method. He personally possesses the ability to make his observations largely objective, something that is unusual
in men who might be available for such work.

10.13 The Questionnaire Method


This method is generally used to collect employee opinions about the factors which affect morale and their
effect on personnel objectives
Morale surveys are generally conducted with a view to:
Finding out what employees really think
Finding out about the kind of education and information they need
Improving morale and keeping a check on the effectiveness of personnel programs
Determining the training needs of employees

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Finding out what employees really like.
In the questionnaire, questions may be asked in various ways
The interviewer has to determine the type of questions to be used depending on the objectives of the survey
These include multiple choice, dichotomous (yes or no) and open-ended questions.

10.14 Conducting the Survey


Management may engage an outside consultant to conduct the entire survey
In this event, the consultant must be introduced to the employees, and they should be assured that the person
will not reveal to anyone an individuals answer
In some cases the companys representatives may give the employees the questionnaires in a stamped
envelope
Then they do planning on a table about how to distribute those envelopes
They let the employees to get them if they wish to
Employees can even give that envelop to their fellow employees to distribute them
The stamped envelopes are frequently addressed to some management consultant or college professor who
tabulates the results.

10.15 Measurement of Employee Morale


An organisation with low morale must move quickly and decisively to fix the problem before it is out of
control
For the most part, it is up to the managers and other senior staffs to implement strategies that will fix the
problem
However, the average worker does have some influence over improving morale
Dale Yoder and other pointed out the following as signals of low morale:
Employee unrest
High rate of absenteeism
Tardiness
High employee turnover
Grievances
Need for discipline
Fatigue and monotony

10.16 Improving Morale


There are a number of measures which can be used to control the warning signal of low morale
The following are the positive measures to be taken to bring job satisfaction to the employees and reconcile
individual interests with the interests of the organisation
Creation of whole jobs
Job enrichment
Building responsibility into job
Modifying the work environment
Job-sharing
Rotation of jobs
Profits-sharing

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Human Resource Management

Morale can be improved in several other measures such as:


Employee contest
Special recognition
Awards to long service employees
Free coffee during rest pauses
Films shows to employees during their lunch hour
Training the supervisors in how to handle people
Under these methods complete jobs are assigned to workers
The complexity of a job should be increased so that it may appeal their higher needs
Job enrichment tries to deal with dissatisfaction by increasing job depth
Under this, individual employees may be given responsibility for setting their own work pace for concerning
their own error, and/or for deciding on the best way to perform a particular task
Employees should be encouraged to take risk decision
This can be achieved by:
Developing work groups
Developing the social contact of the employees
The use of music
Regular rest breaks
Flex time permits employees to arrange their work hours to suit their personal needs and life-styles
This is particularly suited to situations with fluctuating work loads
Flex time employees are responsible for coordinating their functions with other employees
Furthermore, it will increase the responsibility and autonomy on employee
Two workers divide a full-time job between themselves splitting not only the hours of work but also salary
This reduced employees boredom which arises out of the monotonous nature of his work
Morale can be improved by effective profit-sharing schemes
In addition to its economic aspects, profit sharing has also psychological aspects relating to friendly move by
the management in providing the workers an opportunity to participate in the profits.

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Summary
Good organisational morale is a condition in which individuals and group voluntarily make a reasonable
subordination of their personal objectives of their organisation.
Morale can be measured by assessing attitude and job satisfaction.
The guided interview is based on the hypothesis that employees answers to certain questions will reveal their
attitudes.
Questionnaire method is generally used to collect employee opinions about the factors which affect morale and
their effect on personnel objectives.
Definition of morale by Professor Ralph C. Davis, Good organisational morale is a condition in which individuals
and groups voluntarily make a reasonable subordination of their personal objectives for their organisation.
Morale is nothing but esprit de crop, a feeling enthusiasm, zeal, confidence in individuals or groups that they
will be able to cope with the tasks assigned to the employees.
Low morale can reduce productivity, harm relationships with clients and customers, and, ultimately, destroy
the organisations bottom line.

References
Decenzo, 2009. Fundamentals Of Human Resource Management, 8th ed., John Wiley & Sons.
Kumar, A. & Sharma, R. Principles of Business Management.
Managing Through Change [pdf] Available at: <http://www.hr.ucdavis.edu/worklife-wellness/ASAP/mgrstoolkit/
Managing%20Change.pdf> [Accessed 25 September 2012]
A moral principles framework for human resource management ethics [pdf] Available at: <http://cf.linnbenton.
edu/bcs/bm/gusdorm/upload/Moral%20Principles%20Framework.pdf> [Accessed 25 September 2012].
2010. Human Resource Management-I Video Lecture Course, Nature and Scope of HRM, [Video Online ]
Available at: <http://www.youtube.com/watch?v=Fa8E3tCDIpo&feature=player_embedded> [Accessed 14
September 2012]..
2010. Human Resource Management-I Video Lecture Course, Human Resource Development A Scenario , [Video
Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-18517-Management.htm> [Accessed 25
September 2012].

Recommended Reading
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Patnayak, B., 2005. Human Resource Management, 3rd ed., PHI publications.
Venkata Ratnam C. S. & Srivatsava, B. K., Personnel Management and Human Resources, Tata Mc-Graw
Hill.

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Human Resource Management

Self Assessment
1. _____________________is revealed by what individuals and groups say and do to show an interest in,
understanding personal identification with work-team survival and success.
a. Morale
b. Commitment
c. Spirit
d. Zeal

2. ____________ is evinced by surliness, insubordination, a feeling of discouragement and dislike of the job,
company and associates.
a. Low morale
b. High morale
c. Poor morale
d. Morale

3. ________________ is a condition in which individuals and groups voluntarily make a reasonable subordination
of their personal objectives for their organisation.
a. Willingness and confidence
b. Attitude and patiences
c. Exceptions and reality
d. Good organisational morale

4. The content of morale could be broadly divided into group.


a. four
b. three
c. two
d. seven

5. The___________ which include his levels of indigence and education and his type of personality-largely
determines the way in which he seeks to fulfill his needs for belonging, esteem, and self realisation.
a. employees background
b. employees morale
c. employees salary
d. employees job satisfaction

6. One of the most unpredictable effects of the level of morale is its impact on worker________.
a. productivity
b. creativity
c. ability
d. capability

7. A_____________tends to utilise fully the skills, initiative, judgment and training of its members and through
such utilisation succeeds in building up these and other qualities in everyone.
a. morale- building group
b. demoralising institute
c. morale-building organisation
d. morale-boosting organisation

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8. It is assumed that_________ morale and_________ productivity go hand in hand.
a. high , high
b. high, low
c. low , high
d. low, varying

9. Which of the following statements is true?


a. In unguided interview the participants are encouraged to talk freely about what he thinks about the organisation
and its people
b. In unguided interview the participants are forced to talk freely about what he thinks about the organisation
and its people
c. In unguided interview the participants are encouraged to talk freely about what he thinks about the organisation
and its people
d. In unguided interview the participants are discouraged to talk freely about what he thinks about the
organisation and its people

10. Guided interview method emphasises mainly on the questions set out before hand by consulting the .
a. employees
b. employers
c. HR
d. higher management

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Human Resource Management

Chapter XI
Motivation

Aim
The aim of this chapter is to:

introduce the concept of motivation

evaluate different types of theories of motivation

explain the significance of motivation

Objectives
The objectives of this chapter are to:

explain the need of motivation for an employee

highlight the effect of motivation in an organisation

evaluate the theory of motivation

Learning outcome
At the end of this chapter, you will be able to:

understand the concept of motivation

identify the importance of motivation

recognise motivation techniques in his organisation

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11.1 Introduction
Management involves creation and maintenance of environment.This environment is needed for performance of
individuals working together in groups. This group performs towards accomplishment of common objectives. Hence
the managers cannot perform their functions without knowing what motivates people.

11.2 Concept of Motivation


Less skilled individuals are motivated to show good performance effectively unless which they may not achieve
the level of performance that is desired from them
Managerial people are always facing the problems of motivating their subordinates to release their potential
most effectively
It is necessary to motivate employees as this will assure that the goals of the organisation are achieved
Knowledge of the motivational process provides the basis for understanding what people do and why
Motivation is positively correlated with concepts of:
level of aspiration
degree of commitment
inclination towards action
Motivation is defined as, You can buy a mans time, you can buy a mans physical presence at a given place,
but you cannot buy his enthusiasm, initiative and loyalty.
Motivation aims at transforming the ability to do into the will to do
Motivation has been defined as the act of stimulating someone to take a desired course of action-to push the
right button to get a desired reaction
Motivation includes a stimulus and desired results
Motivation concerns itself with the will to work
Motivation also seeks to know the motives for work and to find out ways and means, by which their realisation
can be helped and encouraged

11.3 Definition of Motivation by Different Author

Sr.no Authors names Definition


1. Mr. Urwick The dynamic aspect of management
2. Michael Jucius Act of stimulating someone to get a desired course of action
3. James Driver The phenomena involved in the operation of incentives and drives
Of arousing or initiating behavior
4. P.T.Young Of sustaining an activity in progress
Of channeling of activity in the given course.

Table 11.1 Motivation by different author

A mans performance on a specific task is a function of his skill and motivation


Thus it can be said that p=f(S, M),
Where, P=performance, S= skill and M=motivation.
Skill does not guarantee that the individual will put forth his/her best effort
There is another variable, namely motivation which finally determines the effort which can be expected from
such employees
In laboratory experiments it was found that other things being equal, performance level is higher if the motivation
level is higher
The key to understand motivation lies in the meaning and relationships between needs, drives and goals

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11.4 The Motivation Cycle


The motivation cycle comprises of three terms needs, drives and goals. For better understanding refer the diagram
given below:

NEEDS
(Deprivation)

GOALS DRIVES
(Reduction of) (Deprivation with)
Drives Direction

Fig. 11.1 Motivation cycle

Needs
The one word definition of a need is efficiency
In the domestic sense, needs are created whenever there is a physiological or psychological imbalance For
example, a need exists when a cell in the body is deprived of food and water or when the human personality is
deprived of other persons who serve as friends or comparisons

Drives
Drives are set up to alleviate needs
A drive can be defined as deficiency with direction
Drives are action-oriented and provide an energising thrust toward goalac complishment
The examples of the needs for food and water are translated into hunger and thirst drives, and need for friends
becomes a drive for affiliation

Goals
At the end of the motivation cycle is the goal.
A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive

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11.5 Working Situation of Employees
Motivation may range from a threatening gesture to a tradition inspired activity
The atmosphere of working situation
The past history of human relations in a company
Expectations about the future as well as a wage incentive plan are stimuli to action. It is believed that the full
force of motivation lies in the person doing the motivation

11.6 Motivation Techniques


According to Michael Jucius, management may proceed to motivate employees. This activity may be divided into
two parts:
What is to be done?
How and why what is done?

The former are steps in motivation and the latter are rules governing the steps. Both are performed
simultaneously

11.7 Steps of Motivation


Size up situation requiring motivation
The first stage of motivation is to make sure of motivational needs
Every employee needs motivation
However, all people do not react in exactly the same way to the same stimuli
Keeping this in mind the executive shall size up how much and what kind of motivation is needed and when
and by which individuals

Prepare a set of motivating tools


Having determined the motivational needs of a particular person or group an executive must have a list from
which (s)he should select and apply specific tools of motivation
An executive from his personal experience should prepare a list of what devices are likely to work with what
type of people and under what circumstances

Selecting and applying the appropriate motivator


Proper application of motivational plan is very important
This involves selection of following things:
The appropriate technique
The method of application
The timing and location of applications
Having selected appropriate techniques, thought must be given to its application

Follow-up the results of the application


The last stage of motivation is to follow-up the results of the application of the plan
The primary objective is to determine whether an employee has been motivated or not
If not, some other technique should be tried
A secondary purpose of follow-up is to evaluate motivation plans for future guidance

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Rules of Motivating
In following the steps of motivation a manager should be guided by some fundamental rules which should be based
upon the following principles:
Self-interest and Motivation:
Undoubtedly, motivation is mainly built on selfishness
To seek some other basis of motivation would be to ignore the real nature of man
The aim should be to learn more about selfishness

Attainability
Motivation must establish attainable goals
What is prescribed for a particular person must be attainable by him
This does not mean that the goal is realised at once
Such goals as promotion or desirable transfer may take years to attain. But it must be within reach

Based on a fact-finding study conducted at several manufacturing plants of the General Electric Company, Sorcher and
Meyer have made the following recommendations for improving the motivation of employees in routine jobs:
Provide assembly line employees with more than minimum training. Providing some sort of formal training for
a factory employee beyond the minimum requirement should result in greater personal involvement in the job
Create sub-goals to measure accomplishment. A sense of competition is important for motivation.
When people work towards clearly defined goals they perform better. Moreover, they are likely to be more
interested in the work which will reduce monotony and mental fatigue
Provide regular feedback on performance. Psychological studies show that people perform better when they
receive positive as well as negative feedback about their performance on a regular basis
Maintain a neat and orderly work area. If the foreman does not care about neatness, employees may feel that
they need not care about it and this attitude may also affect the quality of their work
Arrange work situations so that conversation between employees is either easy or impossible
Experienced workers can do routine jobs with little attention to the task
Conversation while working may reduce monotony and fatigue and thus have a favorable effect on output
If possible, increase the number of operations performed by one employee
This can be done by the simplification of manual operations. It offers several advantages, viz.
The risk of errors is reduced
Training costs are minimised
Management can hire employees at lower wages
Structure jobs, so that workers can, at least occasionally move about the work area
Besides job rotation, there are other ways to provide for physical movement such as setting employees
secure their own tools or by adding operations which require some physical activities
Explore ways to assign greater personal responsibility
Increased responsibility means greater self-esteem and greater job meaningfulness viii. One way to enlarge
responsibility is to let an employee inspect his/her own work

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11.8 Theories of Motivation
As a leader, one need to interact with their followers, peers, seniors, and others whose support they need in
order to accomplish their goals
To gain their support, one must be able to understand and motivate them
To understand and motivate people, you must know human nature
Human nature is the common qualities of all human beings
People behave according to certain principles of human nature
Human needs are an important part of human nature
Values beliefs and customs differ from country to country and even within group to group, but in general, all
people have a few basic needs
As a leader you must understand these needs because they can be powerful motivators

11.9 Maslows Hierarchy of Needs


Unlike others researchers in the earlier days of psychology, Abraham Maslow based his theory of human needs
on creative people who used all their talents, potential, and capabilities (Bootzin, Loftus, Zajonc, Hall, 1983)
His methodology differed from most other psychological researchers at that time in which these researchers
mainly observed mentally unhealthy people
Maslow (1970) felt that human needs were arranged in a hierarchical order that could be divided into two major
groups:
Basic needs
Meta needs (higher order needs)

Basic needs
The Basic needs are physiological, such as food, water, and sleep; and psychological, such as affection,
security and self-esteem
These basic needs are also called deficiency needs because if they are not met by an individual, then that
person will strive to make up the deficiency

Meta needs
Meta needs or being needs (growth needs)
These include justice, goodness, beauty, order, unity etc.
Basic needs normally take priority over these Meta needs

For example, a person who lacks food or water will not normally attend to justice or beauty needs

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These needs are normally listed in a hierarchical and it as follows:


Diagram of Maslows hierarchy of need:

Self-Actualization

Esteem

Belongingness and love

Safety

Physiological

Fig. 11.2 Maslows hierarchy of need

Level Title Description


It knows exactly who you are, where you are going, and
5th level Self-actualisation what you want to accomplish
It is a state of well-being
Feeling of moving up in world, recognition, few doubts
4th level Esteem
about self
3rd level Belongingness and love Belong to a group, close friends to confide with
2nd level Safety Feels free from immediate danger
1st level Physiological Food, water, shelter.

Table 11.2 Maslow hierarchy of need

It should be noted that almost no one stays in one particular hierarchy for an extended period
We constantly strive to move up, while at the same time various forces outside our control try to push us
down
Those on top get pushed down for short time periods, i.e. death of a loved-one or an idea that does not work,
while those on the bottom get pushed up, i.e., come across a small prize
Our goal as leaders therefore is to help people obtain the skills and knowledge that will push them up the
hierarchy on a more permanent basis
People who have their basic needs met become much better workers
As now these workers are able to concentrate on fulfilling the visions put forth to them
Moreover, they will not have to consistently keep struggling to meet their goals

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11.10 McGregors Theory X and Theory Y
The character of an enterprise depends on the assumptions of the management in controlling its human
resources
Douglas McGregor (1957) developed a philosophical view of humankind with his Theory X and Theory Y
These two theories represent the extreme ranges of assumption; there are a number of possible combinations
on the continuum
The managerial attitudes and supervisory practices resulting from such assumption have an important bearing
on employees behavior

11.10.1 Theory X
People have an inherent dislike for work and will avoid it whenever possible.
People must be forced, controlled, directed, or threatened with punishment in order to get them to achieve the
organisational objectives.
People prefer to be directed, do not want responsibility, and have little or no ambition
In an organisation with Theory X assumptions, managements role is to coerce and control employees
Theory X is the view that traditional management has taken towards the workforce.

11.10.2 Theory Y
People will exercise self-direction if they are committed to the objectives (they are NOT lazy).
Commitment to objectives is a function of the rewards associated with their achievement.
People learn to accept and seek responsibility.
Creativity, ingenuity, and imagination are widely distributed among the population People are capable of using
these abilities to solve an organisational problem.
People have potential. in an organisation with Theory Y assumptions, managements role is to develop the
potential in employees and help them to release that potential towards common goals.

Most organisations are now taking the enlightened view of theory Y (even though they might not be very good at
it). A boss can be viewed as taking the theory X approach, while a leader takes the theory Y approach.

11.10.3 Theory Z
Prof. William G.Ouchi has developed theory Z
This theory is based on the comparative study of Japanese and American management practices
Theory Z describes how Japanese management practices can be adopted to the environment of the other countries
especially in the United States
This theory focuses attention on the organisational behavior side of management
Theory Z can be treated as a model for motivation
This theory believes in the philosophy of management
Both major and minor decisions are taken through consensus in the truly democratic and dynamic
management
Besides, family relationship prevails between the employer and employees
In other words, close, Co-operative and trust-worthy relationship prevails among workers, managers and other
groups

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11.10.4 Some Important Points


Both theories X and Y make certain not-so-valid judgments
They may not reflect mans inherent nature; rather such behavior in man is in part of management philosophy
and practices
Theory Y particularly emphasises self-actualisation and freedom, implying that all people seek freedom, while
there are definite indications that all people may not feel comfortable with freedom because freedom entails
responsibility and independent decision-making which people may not subscribe to
In an organisation, depending on a situation, either the theory X or theory Y could be effectively applied
However, in choosing one or the other managers have to bear the implications in mind so that problem such as
interpersonal or interdepartmental conflict can be avoided

11.11 Herzbergs Hygiene & Motivational Factors


Hygiene or Dissatisfying factors must be present in the job before motivators can be used to stimulate a person
i.e. one cannot use motivators until all the hygiene factors are met
Herzbergs needs are specifically job related and reflect some of the distinct things that people want from their
work as opposed to Maslows Hierarchy of Needs which reflect all the needs in a persons life

Dissatisfiers Motivators

Working
Conditions

Policies and
administration Recognition
ve practices
Achievement
Salary and
Advancement
Benifits
Growth
Supervision
Responsibility
Status
Job Challenge
Job Security

Co-workers

Personal Life

Fig. 11.3 Herzbergs hygiene and motivational factors

11.11.1 Hygiene or Dissatisfiers


Working conditions
Policies and administrative practices
Salary and Benefits
Supervision

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Status
Job security
Co-workers
Personal life

11.11.2 Motivators or Satisfiers


Recognition
Achievement
Advancement
Growth
Responsibility
Job challenge

11.12 Analysis of Maslow, Herzberg, and McGregors Theories


Herzbergs theory is a micro version of Maslows theory that is focused in the work environment
McGregors Theory X is based on workers caught in the lower levels (1 to 3) of Maslows theory due to
bad management practices, while his Theory Y is for workers who have gone above level 3 with the help of
management
McGregors Theory X is also based on workers caught in Herzbergs Hygiene Dissatisfies, while Theory Y is
based on workers who are in the Motivators or Satisfiers section

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Summary
Motivation is defined as, You can buy a mans time, you can buy a mans physical presence at a given place,
but you cannot buy his enthusiasm, initiative and loyalty.
Less skilled individuals are motivated to show good performance effectively unless which they may not achieve
the level of performance that is desired from them.
The motivation cycle comprises of three terms needs, drives and goals.
The one word definition of a need is efficiency.
A drive can be defined as deficiency with direction.
A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive.
Good organisation morale is a condition in which individuals and groups voluntarily make a reasonable
subordinate of their personal object of their organisation.
The building of morale is a not a mechanical problem that could be solved by either rewards or punishment.
The study of human motivation is of great importance in any theory of management.
Employees must be motivated time to time, so that they will be able to achieve the desired target.
Motivation aims at transforming the ability to do into the will to do.
Maslow View an individuals motivation as a pre-determined order of needs which he strives to satisfy.
The Basic needs are physiological, such as food, water, and sleep; and psychological, such as affection, security
and self-esteem.
Douglas McGregor (1957) developed a philosophical view of humankind with his Theory X and Theory Y.
These two theories represent the extreme ranges of assumption; there are a number of possible combinations
on the continuum.
Theory X is the view that traditional management has taken towards the workforce.
Theory Y assumptions, managements role is to develop the potential in employees and help them to release
that potential towards common goals.
Theory Z can be treated as a model for motivation. This theory believes in the philosophy of management.
Herzbergs needs are specifically job related and reflect some of the distinct things that people want from their
work as opposed to Maslows Hierarchy of Needs which reflect all the needs in a persons life.

References
Rao, P.S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Wilton, N., 2010. An Introduction to Human Resource Management, SAGE.
Motivation and its Theories , [pdf] Available at: <http://management consulting courses.com/
Lesson20Motivation&ItsTheories.pdf> [Accessed 26 October 2010].
Guide on Staff Motivation [pdf] Available at: <http://www.csb.gov.hk/hkgcsb/hrm/pdf-file/e-motivation.pdf>
[Accessed 25 September 2012]
2010. Human Resource Management-I Video Lecture Course, Recruitment and Selection, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10029-Management.htm> [Accessed 25 September
2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 25
September 2012].

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Recommended Reading
Suri, R. K. & Chhabra, TN., Industrial Psychology, Sun India Publications, New Delhi.
French,V., The Personnel Management Process. Houghton, Boston.
Parweek, U. & Rao T.V., 1999. Designing and Managing Human Resource Systems, Anmol Publishers.

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Human Resource Management

Self Assessment
1. It is necessary to_____________ employees, as it will assure that the goals of the organisation will be
achieved.
a. motivate
b. encourage
c. respect
d. inspire

2. You can buy a mans time, you can buy a mans physical presence at a given place, but you cannot buy his
___________________, initiative and loyalty.
a. patience
b. ability
c. enthusiasm
d. experience

3. Which of the following sentences is true:


a. Motivation aims at transforming the ability to do into the will to do.
b. Motivation aims at dominating the ability to do into the will to do.
c. Motivation aims at confusing the ability to do into the will to do.
d. Motivation aims at transforming the ability to do into the will not do.

4. Motivated employees who are in a state of________________.


a. happiness
b. curious
c. confuse
d. tension

5. Motivation has been defined as the act of stimulating someone to take a desired course of action-to push the
right button to get a desired_____________.
a. feedback
b. reaction
c. work done
d. action

6. Who has defined motivation as this, The dynamic aspect of management?


a. P.T Young
b. Mr. Urwick
c. Michael Jucius
d. James Driver

7. _____________ does not guarantee that the individual will put forth his/her best effort.
a. Morale
b. Education
c. Experience
d. Skill

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8. Needs are created whenever there is a physiological or psychological_______________.
a. imbalance
b. balance
c. steadiness
d. stable

9. A drive can be defined as deficiency with_____________.


a. direction
b. motivation
c. skills
d. patiences

10. A_____________ in the motivation cycle can be defined as anything which will alleviate a need and reduce a
drive.
a. morale
b. goal
c. aim
d. target

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Chapter XII
Grievance and Discipline Procedure

Aim
The aim of this chapter is to:

explain the grievances and discipline procedure

elucidate general practices that organisations use for grievances and discipline

enlist general guidelines of a disciplinary action

Objectives
The objectives of this chapter are to:

explain pre-requisites of a grievance procedure

explain the meaning of grievances and reason as to why they arise

enlist the importance of grievances handling

Learning outcome
At the end of this chapter, you will be able to:

understand the critical role of management in maintaining discipline and dealing with grievances

identify appropriate procedure for grievance and discipline

recognise the procedure of grievances and discipline

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12.1 Introduction
Definition of Grievances
Definition of grievances changes form company to company and from author to author. Please refer the table
below for definition made by different authors
Grievance is nothing but an indication of dissatisfaction of employees in an organisation

Sr.
Name of author Definition
No.
1. Dale Yoder A written complaint filled by an employee and claiming unfair treatment.
Any discontent or dissatisfaction, whether expressed or not and whether valid
2. Prof. Jucious or not, arising out of anything connected with the company that an employee
thinks, believes or even feels unfair, unjust or inequitable.
Dissatisfaction of an employees is anything that disturbs the employee,
3. Prof Pigors and Meyers
whether expressed or not.

Table 12.1 Definition of grievances


International Labor Organisation classifies the grievances as a complaint of one or more workers with respect to:
Wages and allowances
Condition of work
Interpretation of services stipulations
Covering such areas overtime, leaves, transfer, promotion, seniority, job assignment and termination of
service

National Commission of labor states that complaints affecting one or more individual workers in respect of their:
Wage payments
Overtime
Leave
Transfer
Promotion
Seniority
Work assignment
Discharge

All above mentioned points would contribute grievances.

12.2 Causes of Grievance Arise


A grievance is always a symbol of some malfunctioning or maladjustment. Due to this a talented and skillful manager
can always find out the real or submerged reasons for a grievance

Following are the causes of grievances:


Promotion
Amenities
Continuity of services
Compensation
Disciplinary action
Fines
Increments

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Wages
Acting promotion
Recovery of dues
Safety appliance
Superannuation
Supersession
Transfer
Victimization
Condition of work

12.3 Pre-requisites of a Grievance Procedure


The efficiency of a grievance procedure depends upon the fulfillment of certain pre-requisites. These are as
follows:

Conformity with prevailing legislation


While designing the grievances procedure due consideration must be given to the existing statutory provisions.

Clarity
There should be clarity regarding each and every aspect of the grievances procedure
An aggrieved employee must be informed about:
The person to whom a representation can be made
The form of submission in written or oral about the aggrieved employee
The time limit for the redressal of grievance
Similarly, the redressing authority should be very clear about what is expected from them, what measures they
can take, and the limit within which they should resort to an action.

Simplicity
The grievances method should be simple
Every employee must understand different stages of the procedure

Promptness
The promptness with which a grievance is processed adds further to the success of the grievance procedure
Since justice delayed is justice denied the procedure should aim at rapid disposal of the grievances

Training
The success of the procedure also depends upon imparting training to the supervisors and union representative
in handling grievances

Follow-up
The successful working of a grievance procedure depends upon a proper follow-up by the personnel
department
The department should periodically review the procedure and introduce the essential structural changes making
it more effective

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12.4 Grievance Handling Procedure
Following is the procedure to handle grienvance
A grievance should be dealt within the limits of the first line supervisor
The appellate authority should be made clear to the employee so that if an individual cannot get satisfaction
from his/her immediate supervisor, (s)he should know the next step
The grievance should be dealt speedily
If the grievance is against an instruction given by a superior in the interest of order and discipline, the instruction
must be carried out first and then only employee can register his/her protest

12.5 Benefits of the Grievance Handling


Following are the benefits of grievance gandling
It encourages employees to raise concerns without fear of reprisal
It provides a fair and speedy means of dealing with complaints
It prevents minor disagreements developing into serious disputes
It saves employers time and money as solutions are found for workplace problems
It helps to build an organisational climate, based on openness and trust

12.6 Grievance Handling


To understand the Grievance handling procedure refer diagram given below:

ARBITRATION

TOP UNION
TOP MANAGEMENT
LEADERSHIP

COMPANY UNION
MIDDLE GRIEVANCE
MANAGEMENT COMMITTEE

SUPERVISOR UNION STEWARD

AGGRIEVED
EMPLOYEE

Fig. 12.1 Grievance handling procedure

12.6.1 Initial Step


The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure
If there is no formal procedure and the firm announces an open-door policy then it is possible that the supervisors
may get by passed by the workers who would take grievance directly to the higher level of management
Such bypassing not only undermines the supervisors authority but also creates an atmosphere of win-or-loose
in which both the workers and supervisors will try to prove the other wrong

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12.6.2 Intermediate Step


As shown in diagram (above), the next step on the management side of the procedure is to submit the dispute to
middle management.
Involving the supervisors middle and senior-line managers in the grievance process helps in two ways
Initially, social barrier between various categories are broken by personal contact and mutual understanding
Various problem-solving methods are carried by the organisation to overcome the problem
Some decision-making committees are appointed by the organisation
At the union side higher personnel in the union hierarchy take charge of the union.
Business agent, a full-time negotiations specialist of the union, takes over the intermediate or sometimes thefinal
steps.
Business agent also gives best remedies over the problem.
The line manger often considers grievance processing a minor, incidental, and distasteful duty.

12.6.3 Final Company-Union Step


Usually, the final step to be undertaken by the company and union is a discussion of the grievance between
representative of top management and top union officials.

12.7 Arbitration
In case, the grievance has not been settled by top management and top union leadership, three possibilities
remain:
The union can temporarily or permanently drop the issues b. The union can call a strike if the contract
permits
The case may be submitted to impartial arbitrator
Arbitration is usually handled by either a single individual or a panel of three
(S) He can make decision of the dispute brought to them by the union
Generally, the person may be acceptable by both union and management
It is important that no undue influence should have a bearing on his/her deliberations

12.8 Concept of the Discipline


During the last decade, the growth of industries has been hampered by indiscipline
Maintenances of discipline in an organisation are of paramount importance for its smooth running and
survival
During the early stages of industrialisation, labor was exploited i.e.
Child employment
Longer working hours
Inhuman and unhealthy working conditions
Low wages
Absences of safety
Welfare measures were quite common
The labor, majority being illiterate had to seek outside help to solve their problem
The trade unions, instead of helping in some cases, tried to fulfill their own needs
This led to unlawful activities (strikes, gheraos) and indiscipline in industries
Further with the emergence of union, inter-union rivalry is prevalent in most of the public and private sector
industries
These factors lead to indiscipline among workmen

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The rapid industrial growth in the country results in many problem. They are as follows:
Arising out of social changes
Displacement from familiar environment
Lack of adjustment to industrial atmosphere
Changes in living condition
New stresses and strains of industries disputes
Indiscipline and violence, etc

12.9 Principles for Maintenance of Discipline


The discipline unit deals with the principles of maintenance of discipline and basic ingredients or guidelines of a
disciplinary action.

12.10 Meaning and Objective of Discipline


Discipline is the observance of principles, rules or any other laid down procedure, practices, Witten or otherwise
in the organisation by the employees or group of employees, to whom these apply, for smooth and effective
functioning of the organisation
Refer the table given below for definition of discipline:

Sr.
Name of the Author Definition
No
Dr.Spriegal Discipline is the force that prompts an individual or a group to observe
the rules, regulations and procedures which are deemed to be necessary to the
attainment of an objective; it is fear of force which restrains an individual or
1.
a group from doing things which are deemed to be destructive of group objec-
tives. It is also the exercise of restraint or the enforcement of penalties for the
violation of group regulations.
2. Bremblett, Earl R Discipline in the board sense means orderliness-the opposite of confusion
Discipline may be considered as a force that prompts individuals or groups to
3. Calhoon. Richard.D observe the rules, regulation and procedures which are deemed to be necessary
for the effective functioning of an organisation.

Table 12.2 Definition of discipline

Websters dictionary gives the meaning of the word discipline as follows:


It is the training that correct moulds, strengthens or perfects
It is the control gained by enforcing Obedience
It is punishment or chastisement.

12.11 The Aims and Objectives of Discipline


To accept the rules, regulations and procedures of an organisation, so that organisational goals may be attained
To impact an element of certainty despite several differences in informal behavior patterns and other related
changed in an organisation
To develop among the employees a spirit of tolerance and a desire to make adjustments
To give and seek direction, and responsibility
To create an atmosphere of respect for the human personality and human relations
To increase the working efficiency and moral of the employees so that their productivity is stepped up and the
cost of production brought down to improve the quality of production

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12.12 Disciplinary Procedure


Disciplinary procedure in Indian industries comprise as follows:
Issuing a letter of charge to the employee calling upon him/her for an explanation
Consideration of the explanation by an employee
Issuance of show cause notice to the employees
Holding of a full-fledged enquiry by an organisation
Considering the enquiry proceedings and findings and making final order of punishment
Follow-up will help an employee to avoid the mistake made by him/her previously

12.13 Basic Ingredients or Guidelines of a Disciplinary Action


The principal ingredients of a sound disciplinary system are:
Location of responsibility:
The responsibility for maintaining disciplines should be entrusted to a responsible person for e.g. line
executive
The line executive should issue only verbal and written warnings
In serious cases like suspension only the industrial relation officer should be consulted
Proper formulation and communication of rules
Rules and regulation should be reasonable
Equal treatment to all the employees even defaulters should be treated alike
Disciplinary action should be taken in private
Importance of promptness in taking disciplinary action
An individual is assume to be innocent until and unless (s)he is proved guilty
Before taking any disciplinary action, it should be made sure to get and keep adequate records of offences and
warnings
Action should be taken in cool atmosphere
Natural justice is accepted
After a disciplinary action has been taken by the supervisor, (s)he should treat subordinates in a manner
Negative motivation should be handled in a positive manner

12.14 Disciplinary:Action Penalties


There are varying penalties for first, second and third offenses of the same rule. Among the penalties available in
business are:
Oral reprimand
Written reprimand
Loss of privileges
Fines
Lay off
Demotion
Discharge

12.15 Procedure for Disciplinary


Though there is no specific rules to be followed, the following rules are taken into consideration:
An accurate statement of the disciplinary problem
Collection of data or fact bearing on the case

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Selection of tentative penalties to be imposed
Choice of the penalty
Application of the penalty
Follow-up on the disciplinary action

12.15.1 An Accurate Statement of the Disciplinary Problem


The first step is to ascertain the problem by seeking answer to the following questions:
Does this case call for a disciplinary action?
What exactly is the nature of the violation or offence?
Under what-condition did it occur?
Which individual/s was/were involved in it?
When, or how often, did the violation occur?

12.15.2 Collection of Data or Fact Bearing on the Case


Before any action taken in a case, it is essential to gather all the fact about it
A through examination of the case should be made within the stipulated time limit

12.15.3 Selection of Tentative Penalty


The kind of the penalty to be imposed for an offence should be determine before hand should it be simple reprimand,
a financial or non-financial penalty Or should it be a demotion, temporary lay-off or outright discharge.

12.15.4 Choice of Penalty


When a decision has been taken to impose a penalty, the punishment to be awarded should be such as would
prevent
Application of penalty: The application of penalty involves a positive and assured attitude on the part of the
management.
Follow-up on disciplinary action: The ultimate purpose of a disciplinary action is to maintain discipline, to
ensure productivity, and avoid a repetition of the offense.

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Summary
A grievance is always a symbol of some malfunctioning or maladjustment.
Good discipline might be described as orderly conducts based on definite standards catalyzed by effective
leadership.
As far as possible, all the rules should be framed in co-operation and collaboration with the representatives of
employees.
Rules should be uniformly enforced if they are to be effective.
If the penalty is imposed long after a violation of rules has been committed, it loses its positive and corrective
influence.
Grievance is nothing but an indication of dissatisfaction of employees in an organisation.
Maintenances of discipline in an organisation are of paramount importance for its smooth running and
survival.
Aaccept the rules, regulations and procedures of an organisation, so that organisational goals may be attained.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Wilton, N., 2010. An Introduction to Human Resource Management, SAGE.
Disciplinary and Grievance Procedures [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/
documents/policies/disciplinary/Disciplinary-policy-grades-1to6.pdf> [Accessed 25 September 2012]
Managers Guide:Grievance Investigations [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/
documents/policies/grievance/Grievance%20Guidance%20for%20Managers%20Grades%201-6.pdf> [Accessed
25 September 2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - I, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10027-Management.htm> [Accessed 17 September
2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - II, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10028-Management.htm> [Accessed 17 September
2012].

Recommended Reading
De Cenzo, D. A. & Robin, S. P.,1997. Personnel /Human Resource Management. McGraw Hill.
Parweek, U. & Rao, T.V., 1999. Designing and Managing Human Resource Systems. Anmol Publishers.
Verma, P., Personnel Management in Indian Organisations, Oxford & IBM Publishing Co. Ltd.

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Self Assessment
1. Who has defined grievance as, A written complaint filled by an employee and claiming unfair treatment?
a. Dale Yoder
b. Prof. Jucious
c. Prof. Pigors
d. Prof. Meyers

2. Which of the following statements is true?


a. A grievance is always a symbol of some malfunctioning or maladjustment.
b. A grievance is always a symbol of some manipulation or maladjustment.
c. A grievance is always a symbol of good organisation.
d. A grievance is always a symbol of some good HR management.

3. The grievances method should be____________.


a. complex
b. simple
c. messy
d. difficult

4. The successful working of a grievance procedure depends upon a proper __________by the personnel
department.
a. follow-up
b. records
c. malfunctioning
d. adjustment

5. A grievance should be dealt within the limits of the supervisor.


a. first line
b. second line
c. last line
d. in-between

6. It encourages employees to raise concerns without fear of_____________.


a. revenge
b. settlement
c. reprisal
d. conclusion

7. Who has defined discipline as, Discipline in the board sense means orderliness-the opposite of confusion?
a. Dr.Spriegal
b. Bremblett, Earl R
c. Calhoon.
d. Richard.D

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8. The Websters dictionary gives the meaning of the word discipline as, It is the that correct moulds,
strengthens or perfects.
a. preparation
b. grouping
c. punishment
d. training

9. The efficiency of a grievance procedure depends upon the___________of certain pre-requisites.


a. execution
b. skills
c. fulfillment
d. qualification

10. The kind of the penalty to be imposed for an offence should be determined____________.
a. before hand
b. after procedure is over
c. in between
d. after verdict is given

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Chapter XIII
Group and Leadership

Aim
The aim of this chapter is to:

enlist the types of groups

evaluate the effect of group and leadership on organisation and on employees

explain the rules and regulations for groups and leaders

Objectives
The objectives of this chapter are to:

outline the concept of groups and leadership

describe the need for groups and leaders

explain the activities of group and leadership

Learning outcome
At the end of the chapter, you will be able to:

understand the role of groups and leaders in an organisation

identify the job responsibility of leaders and groups

understand the need for leaders and groups in an organisation

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13.1 Concept of Group


A group refers to two or more persons who interact for a common explicit purpose
A mere collection of individuals assembled in a place like on the street, at a bus stand, or in railway station,
waiting room, etc. are not called a group as they are physically gathered together
These groups do not jointly pursue a common objective or share a common feeling

13.1.1 Definition of Group

Sr. No Author Name Definition

1. Kimball Young Two or more persons in a state of social interaction


A group consists of two or more persons who share norms about certain
2. T.M.Newcomb
things with one another and whose social roles are closely interlocking
3. W.J.H. Sprott A group is plurality of persons who interact with anyone else.

Table 13.1 Definition of group

13.2 Characteristic of a Group


The necessary characteristic of a group are as follows:
Two or more people who interact with one another share some common ideology see themselves as a group
The second characteristic means, the members of a group occasionally meet, talk, and do things together
Third characteristic means, the members of a group have something in common like common goals, common
threat, security concern, etc
Fourth characteristic means, people who interact with each other and who share a common ideology are attracted
to one another

13.3 Group Fulfills the Needs of its Members


Affinitive needs of an individual are fulfilled by the group through friendship between individuals
A group also fulfills egoistic needs of an individual by developing self-esteem and status
A group fulfills functional needs of its members by helping individuals in their daily activities, adjusting work
routines and avoiding boredom
Cognitive needs may be satisfied by motivation

13.4 Group Serves the Purposes


Group is a means for affiliation needs like needs for friendship, love and support
A group is a means of developing a sense of identity and maintaining self-esteem
It is a means of establishing and testing reality through developing consensus among group members
It is a means of increasing security and power to handle a common enemy or threat

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13.5 Types of Groups
Groups may be classified on the basis of the following criteria:
Purpose or goal
Extent of structuring
Legal organisation or setting
Groups may be formal or informal
All groups have the following common characteristics:
Have leaders
Have followers
Try to achieve some goal or goals
Have ideas about how to achieve the goals
Communicate expectations to members
Satisfy some needs of its members

13.6 Formal Work Groups


Organising means arranging people in such a pattern that they can perform the required activities
The purpose of managers organising responsibility is to create formal workgroups that are necessary to achieve
the goals of the organisation
The characteristics of formal workgroups are:
They are approved by some authority
There is a fixed division of labor
Individuals are assigned specific responsibilities
There are personal interactions between the group members

13.7 Informal Work Groups


Informal groups are not very well organised groups
They exist because the formal groups in an organisation do not satisfy human needs sufficiently
Informal workgroups provide a means of satisfaction for security needs, social needs and esteem needs

13.7.1 Informal Work Groups and Security Needs


Informal groups support their members and protect them from outside pressure and authority
The group protects an individual from unfriendly work environment
New employees try to find an existing group and join it for helping the orientation process

13.7.2 Informal Work Groups and Social Needs


Many jobs do not allow communication and interaction between workers
In this situation, people cannot make friends and are unable to satisfy their need for companionship
People want to belong to a small social group in which relationships are based on common interests and
values
Social groups occur in most of the companies
Members of a social group enjoy each others company

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13.7.3 Informal Work Groups and Esteem Needs


Informal groups are also a means of status or prestige for its members. This is especially true if:
The group is well known in the organisation
Outsiders want to join the group
It is difficult to achieve acceptance into the group
The informal group is a source of egoistic need satisfaction
The need to achieve can be partially satisfied by the informal group

13.7.4 Advantages of Informal Groups


Informal groups increase the employees sense of security and help them to do the work more effectively
Informal groups can help managers maintaining discipline
Informal groups help to maintain no time clock policy because the employees are highly motivated and also
there is peer pressure
So any individual cannot take undue advantage of this policy

13.7.5 Disadvantages of Informal Groups


The disadvantages of informal groups arise when the goals of the group do not match with the organisational
goals
This problem occurs when a planned change is implemented
The protection and social relationships provided by informal groups are in danger due to new plans that disturb
order and stability creating new procedures of standard and production moreover disturb the pattern of personal
interactions on the job

13.7.6 Elements of Group Behavior


Membership in the Group:
It is a process in which membership is provided to individuals on the basis of common interests and readiness to be
cooperative and follow group norms.

Emergent leadership
The informal leader performs two functions:
Starts action and provides direction
Tries to eliminate the differences of opinion within the group and makes effort so that the group achieves its
goals
Communicates the groups beliefs, policies, job, organisation, supervision and other matter to non-members

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Formal hierarchy
All groups have some formal arrangement
The sub-leaders communicate the message to the members of the group
The individuals performing leadership role possess prestige because of their role

Group has some activity or task to perform


A group does something which may be related to its job or not related to it

Interaction
All people interact with one another
During interaction one person responds to another
According to Berne, people interact with each other in terms of three psychological positions or behavioral
patterns known as ego status
These ego states are parent, adult and child
Persons interacting with a parent ego are protective (caring), dogmatic (strict), evaluative and righteous (honest
and respectable)
They prefer laws, rules and standards
People with adult ego state are based on reasons, looking for information and processing it and on factual
discussions
It views people as equal, worthy and reasonable human beings
The child ego state shows the conditions and experiences of childhood
It is dependent, rebellious (disobedient), selfish and sometimes creative

Group norms
Every group has some rules, norms, beliefs, traditions and attitudes that the group members must follow:
Norms are the ought tos of behavior. They are prescriptions for acceptable behavior determined by a group,
institution or society.----Luthens

Group norms are rules or guidelines of accepted behavior which are established by a group and used to monitor
the behavior of its members.----Argyle

Group cohesiveness
It is the degree of attraction that the group has for its members
Cohesiveness is shown by attitudes like loyalty to the group, a feeling of responsibility for group efforts,
friendliness

Member satisfaction:
The end result of group membership is satisfaction of members
In a survey of 37 studies, Heslin and Dumply have shown specific relationship between satisfactions of members
of work group
Perceived freedom to participate
Perceived goal attainment
Status consensus

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Perceived Freedom to Participate:


A members opinion of freedom to participate affects need satisfaction
Individuals who feel that they are active participators are more satisfied while those who feel that their freedom
to participate not important were less satisfied

Perceived Goal Attainment:


A group member s opinion of progress towards achievement of desired goals is related to member
satisfaction
Members of the groups which progressed towards goal achievement showed higher satisfaction while members
of the groups which are not progressing towards the achievement of goals showed lower satisfaction

Status Consensus
It is an agreement about the relative status of all group members
When the degree of status consensus within the group is low, members satisfaction is low
Status consensus is achieved in groups where the members consider group task specialist as competent
A leader plays an important role
A leadership role is performed by an individual who focuses on coordinating and maintaining the activities of
the group

13.8 Group Decision Making


Important decisions are taken by groups and not by individuals
Generally, group decision making is better than individual decision making

13.9 Advantages of Group Decision Making


Groups perform better than individuals in decision making because:
A wide range of alternatives and solutions are considered
Decisions taken in a group are well accepted and the level of commitment is also high
People accept a decision when they have contributed to decision making

13.10 Potential Problems with Group Decisions


Group decisions take longer time than individual decisions
Sometimes, group decision may be a compromise which gives no positive results
A dominant person in a group may dominate over other members and affect decision making
This is more common when group members are of unequal rank
A person with high rank tries to dictate over members with low rank

13.11 Problems of Individual Dominance


Avoid announcing your preferred solution while the group is working on the problem.
Listen carefully to suggestions from every member
Encourage every group member to participate
Try to achieve a good solution

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13.12 Group Dynamics
It is related to the interactions between group members in a social situation
It is concerned with getting knowledge of groups, how they develop, and their effect on individual members
and organisation
Thomas Harrell defines Group dynamic as, Group dynamics is an expression that describes the situation in
which people acting together in a group accomplish certain thing, either positively or negatively in a way that
cannot be explained adequately in terms of individual acting separately.
The word dynamics is derived from a Greek word which means force. Thus, group dynamics are the forces
working in a group

Many factors in the work environment affect group behavior. The two broad aspects are:
The physical environment, for example, plant, equipment, layout
The psycho-social environment, for example, worker needs reward systems, work group structure, supervisory
practices, work group norms, worker roles and attitudes

13.13 Principles of Group Dynamics


Principles of group dynamics (termed by Cartwright) are the norms that the group must follow to work
effectively.

These principles are as follows


There should be no barrier between the leaders and the followers
The leader (who changes others) and the follower (who are changed) should have a strong sense of belongingness
to the group
The group should be attractive to its members
It increases the groups influence on its members
A group member with higher prestige has a greater influence on other members of the group
Efforts to change individual members of a group will make them conform to the norms of the group
Pressure for changes in a group can be established by creating the perception that there is a need for change
Information related to the need for change, plans for change, and the results of change should be shared by all
members of the group
Changes in one part of the group may cause tension in other parts
This tension can be reduced by removing the change or making some adjustments

Cattell proposed seven theorems which show characteristics of synergy within a group:
Groups are formed to satisfy individual needs and stop to exist when this purpose is not solved
The total synergy of a group is the result of the attitudes of all members towards the group
Effective synergy may be aimed to achieve goals outside the group
Individual group members may also use groups to achieve personal goals; group goals may be secondary to
them
Group memberships may overlap, but the total synergy in the group remains constant

13.14 Definition of Leadership


According to Koontz and o Donnell It is the art of including the subordinates to accomplish their assignments
with zeal and confidence. Zeal reflects ardor, earnestness and intensity in execution of work; confidence reflects
experience and technical ability.

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13.15 Concept of Leadership


Managers are people who do things right, while leaders are people who do the right thing
Leadership is all about courage to dream big
Leadership is a complex process by which a person influences others to accomplish a mission, task, or objective
and directs the organisation in a way that makes it more cohesive and coherent
Leadership makes people want to achieve high goals and objectives, while, on the other hand, bosses tell people
to accomplish a task or objective
Leadership can be used for good or ill
Leadership skills can be perverted to pursue bad end

13.16 Characteristics of Leadership


Following are the characteristics of leadership:
Co-existence with follower ship
Responsibility
Understanding nature
Precedence
Situation

13.17 Co-existence with Followership


A leader cannot exist without following:
A leader exercises authority over the group, and it should be willingly group and it should be willingly accepted
by his followers
Leadership is not conferred or ordered but is one to be earned

13.18 Responsibility
A leader is expected to take full responsibility in all situations
He must steer the group clear of all difficulties
He has to assume responsibility for all actions of the group

13.19 Understanding Nature


Important feature of leadership is its nature to understand the feelings and problems of the group as a whole as
well as the individuals
Guide a leader is looked upon as a friend and a philosopher
A leader should strive to satisfy the personal and social needs of his/her followers, which is very much expected
by them

13.20 Situation
Leadership pattern changes according to the type of group and the situation in which the group is operating
A leader should know on the role to be adopted on different situations

13.21 Importance of Leadership


Initiates action
A leader communicates the policies and plans to the subordinates from where the work actually starts.

Motivation
A leader motivates the employees with economic and non-economic rewards and thereby gets the work from the
subordinates.

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Providing guidance
A leader guides by instructing the subordinates the way they have to perform their work effectively and
efficiently.

Creating confidence
Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates,
explaining them clearly their role and giving them guidelines to achieve the goals effectively.

Building morale
A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as
they work to achieve goals.

Building work environment


Management is getting things done from people. An efficient work environment helps in sound and stable growth.
He should listen to his subordinates problems and solve them. He should treat employees on humanitarian terms.

Co-ordination
Co-ordination can be achieved through reconciling personal interests with organisational goals. This synchronisation
can be achieved through proper and effective co-ordination which should be primary motive of a leader.

13.22 Impact of Leadership in an Organisation


Leadership and human behavior
Communication is very important because a leader coach, coordinate, counsel, evaluate, and supervise through this
process.

Leadership and Communication


Communication is very important because a leader coach, coordinate, counsel, evaluate, and supervise through this
process.

Leadership and motivation


A persons motivation is a combination of desire and energy directed at achieving a goal.

13.23 Leadership Theories


Following are the leadership theories:

13.23.1 Trait Approach


Keith Davis has summarised four of the major traits which might have an impact on successful organisational
leadership. They are as follows:

Intelligence
Research has shown that generally a leader has higher intelligence than the average intelligence of the
followers
However the leader cannot be exceedingly much more intelligent than his/her followers

Social maturity and breath


Leaders tend to be emotionally stable and mature and to have broad interests and activities
They have an assured, interests and activities
They have an assured, respectful self concept

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Inner motivation and achievement drives


Leaders have relatively intense motivational drives of the achievement type
Strive for drives of the intrinsic than extrinsic rewards

Human relations attitude


Successful leaders recognise the worth and dignity of their followers and are able to emphasise with them
According to research studies leaders possess consideration and are employee centered rather than production
centered

13.23.2 Behavior Approach


Autocratic
An autocratic leader is one who commands and expects compliance
(S)He is dogmatic and positive and leads by his/her ability to withhold or give rewards and punishment

Participative or supportive
The participative or supportive leadership behavior is based on the assumption that :
People essentially want to participate,
They want to accomplish and
They will work well if general supervision is employed

Instrumental or instrumental supportive:


Instrumental behavior of leadership emphasises the leaders role as a manager in the rational aspects of
management namely planning, organising, controlling etc.

13.23.3 Situation Approach


Stag Dill and his associates research findings revealed that leadership ability is heavily affected by situational
factors like their :
Job
The organisational environment in which they operated history of the enterprise
Community in which the organisation operates
Psychological climate of the group and their characteristics
Group member personalities and cultural influences and so on

13.24 Contingency Theories


The Fiedler Model
Fred E. Fiedler Argued that effectiveness depends on two interacting factor:
Leadership style
Degree to which the situation gives a leader to control and influence
There are three important tasks in leadership
The relationship between the leaders and followers
If the leaders are liked and respected they are more likely to have the support of others.

The structure of the task


If the task is clearly spelled out as to goals, methods and standards of performance then it is more likely that
leaders will be able to exert influence

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Position power
If an organisation or group confers powers on the leader for the purpose of getting the job done, then this may
well increase the influence of the leader.

13.25 Situational Leadership Theory


It is a contingency theory that focuses on followers readiness. Readiness refers to the extent to which people have
the ability and willingness to accomplish a specific task.
There are four stages of readiness:
Able and willing
Able and unwilling
Unable and willing
Unable and unwilling

13.26 The Path-Goal Theory


Path-goal theory identifies four kinds of leadership behaviors.

Directive leader behavior


Letting subordinates know what is expected of them, giving guidance and direction, and scheduling work.

Supportive leader behavior


Being friendly and approachable, showing concern for subordinate welfare, and treating members as equals.

Participative leader behavior


Consulting subordinates, soliciting suggestions, and allowing participation in decision making.

Achievement-oriented behavior
Setting challenging goals, expecting subordinates to perform at high levels, encouraging subordinates and
showing confidence in subordinates abilities.

13.27 Contemporary Theories


Transactional leaders
Clarify the role and task requirements of subordinates
Initiate structure
Transactional Leaders
Provide appropriate rewards
Display consideration for subordinates
Meet the social needs of subordinates

13.28 Charismatic Leaders


The ability to inspire
Motivate people to do more than they would normally do
Tend to be less predictable than transactional leaders
Create an atmosphere of change
May be obsessed by visionary ideas

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13.29 Transformational Leader


Similar to charismatic leaders
Distinguished by their special ability to bring about innovation and change by
Recognising followers needs and concerns
Helping them look at old problems in new ways
Encouraging them to question the status quo

13.30 Team Leader


Leadership is increasingly taking place within a team context
The role of team leader is different from the traditional leadership role
The challenge for most managers is learning how to become an effective team leader
There are four basic team leadership roles:
Team leaders are liaisons with external constituencies
Troubleshooters
Conflict managers
Coaches

13.31 Classification of Leadership


According to the personnel research board of Ohio University leaders were classified as follows:
The bureaucrat
Who sticks to routine, pleases his superiors, avoid subordinates and he is contemptuous to them.

The autocrat
He is directive and expects obedience from followers (Do as I say-not, as I do). Hence, subordinate do not like
him.

The diplomat
He is an opportunities who exploit subordinates. Hence, he is not trusted by his subordinates.

The expert
He is an over-specialised man. He is self-centered and interested in his owned narrow field. He treats his subordinate
only as his fellow-workers without any feelings. He always finds himself along.

The quarter back


He identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates
at times. However, he is generally liked by his followers.

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Summary
A group refers to two or more persons who interact for a common explicit purpose.
Kimball Young defines a group as two or more person in a state of social interaction.
Group may be classified in many different ways: the basic for differentiation may be purpose or goal; extend
of structuring; legal organisation or setting.
The end goal of the managers organising responsibility is to create formal work groups that are necessary to
achieve the organisations goals.
Group dynamic is concerned with the interactions and forces between group members in a social situation.
Group can be formal or informal.
Informal groups support their members and protect them from outside pressure and authority.
According to Koontz and o Donnell It is the art of including the subordinates to accomplish their assignments
with zeal and confidence. Zeal reflects ardor, earnestness and intensity in execution of work; confidence reflects
experience and technical ability.

References
Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. A Review of Leadership Theory and Competency
Frameworks.
WHAT IS LEADERSHIP IN HR? [pdf] Available at: <http://xa.yimg.com/kq/groups/3598466/685835961/name/
article+-+leadership+in+HR+-+Anil+Kaushik.pdf> [Accessed 25 September 2012].
Inside Leadership [pdf] Available at:<http://www.hrmrecruit.com/files/New%20PDFs/JL%20Inside%20
Leadership%20-%20Preparation%20makes%20Interim%20Perfection%20July2012.pdf> [Accessed 25
September 2012].
2010. Human Resource Management-I Video Lecture Course, Organisation Culture, [Video Online] Available at:
<http://learnerstv.com/video/Free-video-Lecture-10037-Management.htm> [Accessed 24 September 2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 24
September 2012]

Recommended Reading
Mathis, R. L. & Human, J. H., 2007. Human Resource Management, 12th ed., South-Western College Pub.
French, W., 2006. Human Resources Management, 6th ed.,South-Western College Pub.
DeCenzo, D. A. & Robbins, P. R., 2004. Human Resource Management, 8th ed., John Wiley and Sons Ltd

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Self Assessment
1. A_____________ refers to two or more persons who interacts for a common explicit purpose.
a. leader
b. group
c. organisation
d. hr

2. Who has defined group as, Two or more persons in a state of social interaction?
a. Kimball young
b. T.M Newcomb
c. W.J.Sprott
d. T.M Young

3. Affinitive needs of an individual are fulfilled by the group through _____________________between


individuals.
a. revenge
b. friendship
c. companionship
d. reprisal

4. A group is a means of developing a sense of identity and maintaining______________.


a. self-esteem
b. overconfidence
c. boldness
d. self-respect

5. _____________ exist because the formal groups in an organisation do not satisfy human needs sufficiently.
a. Formal work-group
b. Informal work group
c. Group
d. Leader

6. ______________ is all about courage to dream big.


a. Leadership
b. Group
c. Boss
d. Manager

7. Leadership skills can be______________ to pursue bad end.


a. protected
b. perverted
c. prevented
d. preserve

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8. A leader is expected to take full_____________ in all situations.
a. responsibility
b. action
c. job
d. work

9. A persons____________ is a combination of desire and energy directed at achieving a goal.


a. morale
b. courage
c. motivation
d. qualification

10. A_______________ leader is one who commands and expects compliance.


a. autocratic
b. democratic
c. aristocratic
d. nobel

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Human Resource Management

Case Study I
HR Functions
Mr. A.P. Dutta is in charge of a bindery in Vijayawada, which employs fifteen people. Presently, three of the
employees run machines; one supervises, while others are helpers in the factory. However, there is no one to move
blank papers and finish print by hand-car. Thus, this position, which demands no skill other than driving a hand-
car, needs to be filled as soon as possible. There are three applicants who have responded for this vacancy. The HR
needs to select the right candidate.
The first one is Mr. Kumar Gujar who is thirty-five, unmarried, and a Navy veteran. Kumar has poor work record.
In Vijayawada, he has worked for five years in seasonal labor and occasional odd jobs. He drove a forklift in
the navy, while working at Vishakhapatnam. He has a strong muscular build. However, there is no heavy work
involved for this profile.
Mr. Nehal Singh, age twenty-two, came to Vijayawada two years before from Punjab. He has done farm labor for
many years and assembly line work for one year in an automobile industry. His command over English is poor
(but can speak regional language, Telgu, fluently). He lives with his mother and seems to remain in the area for
some time. After having experience to run farm equipments, he should have no problem steering a hand-car.
Mr. Swami Nathan Raja is a local boy who finished high school two years ago. Subsequently, he got a diploma
and is currently employed as an assistant engineer in Laxmi Transport Company, Vijayawada. His character
references are excellent. Mr. Raja is small, but he seems quick and was a star in high school.

(Source:Kumar, R. Human Resource Management:Strategic Analysis Text and Cases, Available at


<http://books.google.co.in/books?> Accessed 14 October 2012)

Questions
1. How much consideration should be given to Mr. Kumar Gujars poor work record? Should the HR check to
verify it?
Answer
The work experience should be given prime importance while recruiting any applicant. The work performance
of Mr. Gujar can affect the performance of the factory. So, the HR should check Mr. Kumar Gujars work record
once again.

2. How much importance should be given to communication in any job? How quickly could Mr. Nehal Singh
assimilate enough English to be effective?
Answer
Communication plays an important role in business world. However, for this profile, it is not necessary that the
applicant should be fluent in English.
Mr. Nehal Singh is originally from Punjab, but is fluent in Telgu and thus, seems to be a fast learner. So, he can
easily learn English language to be effective in future.

3. Should the HR pass Mr. Nehal Singh because of his status as a recent migrant?
Answer
The HR cannot pass Mr. Nehal Singh only because he has recently transferred to Vijayawada from Punjab.

4. Should Mr. Raja get the job?


Answer
Mr. Raja is a good applicant. However, the job position doesnt require any diploma holder or who has was a
star performer at high school level.

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Case Study II
Employee Performance
Raj Sharma has been employed for six months in the accounts section of a large manufacturing company, named
J.P Company in Faridabad. You have been informed by his supervisor about his performance.

You are the HR manager responsible for training and development in J.P Company. The supervisor has evaluated the
performance of all employees in the account section for six months. After the performance evaluation, the supervisor
finds that Raj is not performing well, while other employees are performing well and average. The supervisor
informs you that Raj is not performing well since he has joined the organisation. All other employees are meeting
their targets and performing well. But there is no performance growth shown by Raj.

The Supervisor has discussed with Raj the performance that is expected from him. He has shown Raj the performance
after he has joined the company. In spite of Raj being informed about his performance, there is no improvement.
The Supervisor has now escalated this matter to you.

Questions
1. Can you find out whether Rajs performance is weak because of poor training or any other reason?
2. If you find Raj has been inadequately trained, how do you go about introducing remedial training program?
3. If he has been in the organisation for six months, what kind of remedial program would be best?
4. Do you need to discuss it again with Raj?

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Case Study III


Company Example
ABC Company had developed a training strategy for training its global training force. An important feature of
the strategy was to create a master training plan for each year. The organisations strategic plans, objectives, and
functional tactics gave a direction to this plan. Once an initial procedure was designed, it was then evaluated by the
top management, different units, and training council. The input from these stakeholders would be summarised and
transferred into a master training plan.

The designers of the training program had only one question in mind, WHAT RESULTS DO WE WANT FROM
SALESPEOPLE AFTER THE TRAINING PROGRAM IS OVER? Thus, the answer to this question was the
main training objective.

For the training content design, videos were prepared. The videos were produced in 3 to 6 months. The content in
the videos included production plants, clients offices, partner offices, suppliers, manufacturers location, and other
locations.

The training material was used to train the sales people in following areas:
Market information
Policies and procedures
Sales process
Product information

The training material that was provided to the sales people included video training. The sales persons had to go
through the entire training material, and then call a toll free number to give examination. Those, who passed the
examination, were given job responsibilities. While others who failed, had to go through the training material and
give the examination again. However, if a sales person fails in the exam once again, the reporting manager was
notified about it.

Questions
1. Do you think video is the most effective way to achieve training objectives?
2. In todays technological world, is video still the best way to deliver the training?
3. What are the other training methods that ABC Company can add in their next training program?
4. What role did cost of development cost of delivery, and other constraints play in the selection of video delivery
system?

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Bibiliography
References
2010. Human Resource Management-I Video Lecture Course, Analysing and Designing Job: I, [Video Online]
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Human Resource Management

Recommended Reading
Ashwatappa, K., Human Resource Management, 5th ed., TMH.
Aswathappa, K. International Human Resource Management, Sadhna, Das, McGraw Hill Companies.
Beardwell, L. & Holden, L., Human Resource Management, Jacrnillan, Delhi.
Bohlander, et al, 2004. Managing Human Resources, 13th ed., Cengage Learning
Byars, L. & Rue, L., 2010. Human Resource Management, 10th ed., McGraw-Hill/Irwin.
Chhabra, T. N. Human Resource Management, Dhanpat Rai & Co., Delhi.
De Cenzo D.A & Robin, S.P.,1997. Personnel /Human Resource Management. McGraw Hill.
DeCenzo, D. A. & Robbins, P. R., 2004. Human Resource Management, 8th ed., John Wiley and Sons Ltd
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Evans, P. & Pucik, E., The Global Challenge- Framework for International Human Resource Management, Tata
McGraw-Hill Irwin.
Fisher, C., 2005. Human Resource Management, 5th ed., Shaw Wiley / Biztantra.
French, W., 2006. Human Resources Management, 6th ed., South-Western College.
French,V., The Personnel Management Process. Houghton, Boston.
Lepak, D. & Gowa, M., 2008. Human Resource Management, 1st ed., Prentice Hall.
Mathis, R. L. & Human, J. H., 2007. Human Resource Management, 12th ed., South-Western College Pub.
Parweek, U. & Rao T. V., 1999. Designing and Managing Human Resource Systems, Anmol Publishers.
Patnayak, B., 2005. Human Resource Management, 3rd ed., PHI publications.
Singh, K. & Duggal, B. R. Human Resource Management, Sun India Publications, Delhi.
Stewart, G. L. & Kenneth, G. B., 2010. Human Resource Management, 2nd ed., Wiley.
Suri, R. K. & Chhabra, T.N. Industrial Psychology, Sun India Publications, New Delhi.
Tayeb, M. H., 2005. International Human Resource Management, Oxford University Press.
Venkata Ratnam C. S. & Srivatsava, B. K., Personnel Management and Human Resources, Tata Mc-Graw
Hill.
Verma, P., Personnel Management in Indian Organisations, Oxford & IBM Publishing Co. Ltd.

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Self Assessment Answers
Chapter I
1. a
2. a
3. d
4. c
5. b
6. c
7. a
8. b
9. d
10. a

Chapter II
1. b
2. a
3. d
4. a
5. a
6. a
7. a
8. b
9. a
10. b

Chapter III
1. b
2. a
3. a
4. b
5. a
6. a
7. a
8. a
9. d
10. a

Chapter IV
1. c
2. a
3. a
4. c
5. a
6. c
7. b
8. b
9. a
10. a

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Chapter V
1. a
2. b
3. a
4. b
5. a
6. b
7. b
8. a
9. a
10. a

Chapter VI
1. b
2. a
3. a
4. c
5. a
6. a
7. b
8. a
9. a
10. c

Chapter VII
1. a
2. a
3. c
4. c
5. b
6. a
7. c
8. a
9. a
10. c

Chapter VIII
1. a
2. b
3. a
4. a
5. a
6. c
7. a
8. a
9. a
10. d

160/JNU OLE
Chapter IX
1. c
2. c
3. a
4. a
5. b
6. d
7. a
8. a
9. d
10. a

Chapter X
1. a
2. c
3. a
4. b
5. a
6. a
7. a
8. a
9. a
10. d

Chapter XI
1. a
2. c
3. a
4. d
5. b
6. b
7. d
8. a
9. a
10. b

Chapter XII
1. a
2. a
3. b
4. a
5. a
6. c
7. b
8. d
9. c
10. a

161/JNU OLE
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Chapter XIII
1. b
2. a
3. b
4. a
5. b
6. a
7. b
8. a
9. c
10. a

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