Personnel Management or Human Resource Management

Personnel Management/ Human Resource Management VIMAL JOSHI
Unit-I
Concepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR
Practitioners; HR Policies, Corporate objectives and Human Resource Planning.
Modern Perspective of HRM/PM
The growth of personnel management/ human resource management in U.S.A. and U.K
was evolutionary in nature. It took place because of voluntary efforts of employers. But in India,
it grew because it was made compulsory by government.
In 1931, ‘Royal Commission on labour’ recommended appointment of labour officer. So

that labour problems might be solved. In 1948, Factories Act made it obligatory for certain
industrial enterprises to appoint welfare officers.
The Scope of Personnel management has increases because, task of personnel manager is
not only confined to recruitment of workers but also to looking after their welfare & handling
their grievances. Under influence of technological development, organisation become complex
and needs specialized skills & professionals. As a result, emphasis is being given to training &
development aspects.
Personnel management is no longer restricted to wage earners in factories. It has become

equally important in offices, sales organisation, hospitals, development institutions & in
management itself.
The other term used, in personnel problem & techniques are ‘labour relations’ and
‘industrial relations’ which are used interchangeably but it is useful to distinguish them. The
term ‘Labour relations’ refers to relations between management & unionised labour.
Which includes negotiations of contracts with unions day to day relations with union leads,
government regulation of terms & conditions of employment. The term ‘industrial relations’ is
used as synonymous with ‘Personnel management’.
In India, the field of Personnel Management has
3 Branches – (i) Personnel Administration

(ii) Industrial Relations
(iii) Labour Welfare
(1) Personnel administration- deals with administrative aspects such as recruitment,

selection, placement, promotion, wages and incentives etc.
(2) Industrial relations – deals with employer employee relationship, negotiations &
collective bargaining etc.
(3) Labour Welfare- deals with working conditions of employees by provision of facilities
such as canteen, housing, recreation, education etc.
Ques. 1 Define HRM. How HRM functions are changing business environment?
Ans. Human Resources Management is defined as policies and practices Involved in carrying
out the “people” or human resource aspects of a management position, including recruiting,
screening, training, rewarding and appraising. These include:
- Conducting job analyses (determining the nature of each employee’s job).

- Planning labour needs and recruiting job candidates
- Recruitment
- Selecting job candidates
- Orienting and training new employees
- Managing wages and salaries (compensating employees)
- Providing incentives and benefits
- Appraising performance
- Communicating (interviewing, counseling, disciplining)
- Training and developing managers
- Building employee commitment
The scope of HRM has changed over the fast few years. However, this Change has been
relatively slow in comparison to the changes in their area of business, management and
administration. Some HRM Sub- functions seems to be breaking away from HRM, other seems to
be new sub-areas while still other seem to be changing only in term of their relative emphasis
and degree of importance. Many of these changes depend on he size of the organisation in which
the HRM functions occurs, the managerial philosophies, the growing importance of the
functions, the changing organisational demands, employee needs and societal concerns.
Managerial and organisational development, Manpower planning, organisational are incoming
areas, i.e. they are now going to receive substantially more attention, they did not have any they
are now going to receive substantially more attention, they did not have any prominence in the
past. Training and managerial development and personal research have become increasingly
important today, while the importance of appraisal, wage and salary administration, has
somewhat declined in terms of relative emphasis. Employee benefits and services and worker’s
health and safety have always been important personal concerns. Labour relations, public
relations and plant security are ‘outgoing’ HRM sub areas which have been taken away from
HRM department.
Today’s it’s firm’s workforce, its knowledge, commitment, skills and training that
provides the competitive advantages for world class companies. And its HR’s job to build that
competitive advantages. That means an upgrading of HR’s traditional role. Earlier, personal
people first took over hiring and firing from supervisors, ran the payroll department and
administrated benefits plans. The job consisted largely of ensuring that procedures were
followed. The new technology in the areas like testing and interviewing began to emerge the
promotion. Today, HR’s role is shifting from protector and screener to strategic partner and
change agent. The metamporphosis of “personal” to “Human Resources” reflects that. In today’s
flattened downsized and highly performing organisations, trained and committed employees- not
machine are firms.
What is Human Resources Planning? How can NRP be integrated which Corporate
objectives?
Ans. “Manpower” human resources” may be thought as the total knowledge, skills, creative
abilities, talents and aptitudes of an organisation’s work force, as well as the values, attitudes and
benefits of an involved. “Manpower Planning” and “human resources” planning are
synonymous. Human resources or manpower planning is “the process by which a management
determines how an organisation should move form its current manpower position to its desired
manpower position. Through planning a management strives to have the right number and right
kinds of people at the right places, at the right time to do things which result in both the
organisations and the individual receiving the maximum long range benefits.
Human Resources Planning consists of series of activities
a) Forecasting future manpower requirements, either in terms of mathematical projections

of trends in the economic environment and development in industry or in terms of
judgmental estimates based on future plans of a company.
b) Making an inventory of present manpower resources and assessing the extend to which
these resources are employed optimally.
c) Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirement to determine their adequacy, both
quantitatively and qualitatively.
d) Planning the necessary Programmer of requirement selection, training, development,
utilisation transfer, promotion, motivation and compensation to ensure that future
manpower requirement are properly met.
The ultimate mission of human resources planning is to relate Future human resources to
future enterprise needs so as to maximize the future return on investment in 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 arrangement. In order to integrate
human resources planning with corporate point of time. For this estimate, the number and type of
employees needed have to be determined. Many environmental factors effect this determination.
They include business forecasts, Expansion and growth design and structural changes,
management philosophy,
Objective of HRP
(i) To ensure optimum use of human resources currently employed.

(ii) To avoid balances in distribution & allocation of human resources.
(iii) To assess or forecast future skill requirements of organisations over all objectives.
(iv) To provide control measure to ensure availability of necessary resources when
required.
(v) To control cost aspect of human resources.
(vi) To formulate transfer & promotion policies.
Benefits:-
1) It results in reducing labour cost as it helps the management to anticipate shortages or

surpluses of manpower and correct these imbalances before they become unmanageable
& expensive.
2) It helps in making optimum use of workers skill with in the organisation.
3) It leads to improvement in overall business planning process.
4) It enables identification of gaps of existing manpower so that connective training could
be imported.
5) It leads to greater awareness of importance of sound man power management through out
the organisation.
6) It serves as a tool to evaluate effect of alternative manpower actions & policies.
The Process of Human Resource Planning
Objective of Inventory of HR Work Study & Determine Job

HR Planning Skills (Finding Demand Requirements
Gaps) Forecasting
Appraisal of Training & Selection Recruitment

HR Planning Development Procedure Plan
Programme
1) Objectives of Manpower Planning:-
The persons concerned with manpower planning must be clear about goals of manpower
planning because once the wrong forecast of future requirement of human resources are made, it
may not be possible to rectify the errors in short-run.
2) Current Manpower Inventory:-
Assessment of demand for operating personnel presents less problems of uncertainty &
current manpower supply can be adjusted accordingly. But for supervisory and managerial levels
projection is complex problem because required talents are not available at a short notice. This
will also help in drawing recruitment & development plans to meet the needs of certain skills
future.
3) Demand Forecasting:-
A proper forecast of manpower required in future say, after one year, two years & so on
must be attempted. The factors relevant for manpower forecasting are as follows.
(i) Employment Trends:-

Manpower planning committee show examine number of employees on pay roll during
past 5 year to knew trend within each group to determine whether particular group has been
stable or unstable.
(ii) Replacement Needs:-
arises due to death, retirement, resignation & termination of employees. It may relate to
supervisory, skilled, clarical groups and must be anticipated in advance.
(iii) Productivity:-
Gain in productivity will also influence requirements of manpower. Planning for

productivity has several aspects. The first aspect relates to effective utilisation of manpower. The
second aspect relates to installation of more productive tools, equipments. The last aspect relates
to matching of skills with requirements of jobs.
(iv) Growth & Expansion: -
A good organisation always tries to adopt itself to change in method & techniques of
Production. Therefore Manpower planner should take all these factors into account while
studying impact of various business expansion plans on manpower requirements.
(v) Absenteeism:-
Means a situation when a person fails to come for work when he is scheduled to work.
Due to absenteeism work get upset leading to overtime work which in turn leads to increased
cost of production. The management should go into cause of absenteeism & attempt to reduce
absentism as far as possible.
(vi) Work Study:-
Can be used when it is possible to apply work measurement to know how long operations
should take & amount of labour required. This is also known as ‘workload analysis.’
(4) Job Requirements:-
Job analysis is the qualitative aspect of manpower requirements since it determines what
is the quantum of work which an average person can do on a job in a day. It facilitates division
of work in to different jobs.
(5) Employment Plans:-
This phase deals with planning how organisation can obtain required number of right
type of personnel as reflected by personnel forecasts.
(6) Training & Development Programme:-
Training is essential not only for new employees but also for old employees for
improving their performance. Similarly executive development programmes have to be devised
for development of managerial personnel. The talent of employees are not fully productive
without a systematic programme of training & development.
(7) Appraisal of Manpower Planning:-
After training programmes have been implemented, an appraisal must be made of

effectiveness of manpower planning. Deficiencies in programmes should be pointed out &
catalogue of manpower inventory should be updated periodically. Conective actions should also
be taken whenever it is necessary to remove deficiencies in manpower planning.
UNIT-II
Job Analysis, Role Analysis, Methods of Manpower Search, Attracting and selecting HR;
Induction and socialization, Manpower training & development; Career and succession
Planning, Managing Organisational Renewal.
JOB ANALYSIS
The procedure for determining duties and skill requirements of a Job and kind of person
who should be hired for it.
While manpower inventory is concerned with telling ‘what employees can do’, Job
Analysis assesses ‘what employees are doing.’
From job analysis, specific details of what is being done and skills utilized in job, is
obtained. It enables managers to understand jobs and job structure to improve to work flow or
develop techniques to improve productivity. It also involves job design or redesign, co-
ordinating demands on available time, individual psychological needs, technical procedures and
desired performances.
Before we proceed to discuss job analysis in detail, certain terms relating to job need to
understand. These terms are:-
Job:- A job may be defined as a “collection of tasks, duties and responsibilities which as a whole,
is regarded as a regular assignment to individual employees,” and which is different from other
assignments. In other words, when the total work to be done is divided and grouped into package
we call it a “job.”
Job Description: -
It is a written record of duties responsibilities and requirements of a particular job. It is

concerned with the job itself & not with the work. It is a statement describing the job in such
terms as its title, location, duties, working conditions & hazards. In other words, ‘what is to be
done’, and ‘how it is to be done’ and ‘why’. It is a standard of function which defines appropriate
& authorised contents of a job.
Job Specification: - It is a standard of personnel and designates the qualities required for an
acceptable performance. It is a written record of requirements sought in an individual worker for
a given job.
Job Design:- It is the division of total task to be performed into the manageable and efficient
units-position department and divisions, and to provide for their proper integration.
After a job has been defined, it is analyzed i.e., each task is described in detail. It is a
procedure and a tool for determining specified tasks, operations and requirements of each job.
“It is the process of getting information about jobs: specially what the worker does; how
he gets it done; why he does it’ skill, education and training required; relationship to other jobs;
physical demands, environmental conditions.”
In other words, it refers to the anatomy of job.
It is a complete study of job, embodying every known and determinable factor, including
duties and responsibilities involved in its performance, conditions under which performance is
carried on, nature, nature of task, qualities required in worker and such conditions of
employment as pay, hour, opportunities and privileges. It also emphasizes relation of one job to
other in the organisation.
Purposes and Uses of Job analysis:-
Job analysis is an essential ingredient of kind personnel Management. It is major input to

forecasting human resource requirements, job modification, job evaluation, determination of
proper compensation and writing of job descriptions. The fundamental importance to manpower
management programmes. The information provided by Job analysis is useful, in almost every
phase of employee relations.
(1) Organisation and Manpower planning:-
Job analysis defines labour needs in concrete terms, coordinates activities of work force,
and clearly divides duties and responsibilities.
(2) Recruitment, Selection:-
By indicating specific requirement of each job (ie, Skills and knowledge), it provides
basis for hiring, training, placement, transfer and promotion of personnel. The goal is to match
job requirement with a workers aptitude, abilities & interests.
(3) Wages and Salary: Administration:-

Job Analysis helps in salary and wages administration by indicating qualifications

required for doing a specified job & risks and hazards involved in its performance.
(4) Job Re-engineeri ng:-
It provides information which enables us to change jobs in order to permit their being
manner by personnel with specific characteristic & qualification. This takes two forms:-
(a) Industrial engineering activity:-
Which is concerned with operatio nal analysis, motion study, work simplification methods
and improvements in place of work and its measurement & aims at improving efficiency,
reducing unit Labour costs and establishing the production standard which the employee is
expected to meet.
(b) Human engineering activity:-
Which takes into consideration human, both physical and psychological, & prepares
increased efficiency & better productivity.
(5) Employee Training and Management Development:-
It provides the necessary information to the management of training & development

programmes. It helps it to determine the content and subject matter of in-training courses. It also
helps in checking application information, interviewing, weighing test results & in checking
references.
(6) Performance Appraisal:-
It helps in establishing clear-cut standards which can be compared with actual

contribution of each individual.
(7) Health and Safety:-
It provides an opportunity for identifying difficult conditions & unhealthy environmental

factors so that corrective measures may be taken to minimise and avoid the possibility of
accident.
This, it is systematic procedure for securing and reporting information which defines a
specific job. It determines the qualifications required for a job, provides guidance in recruitment
& selection, evaluates current employees for transfer or promotion, and establish requirement for
training programmes.
Steps in Job Analysis
There are 5 basic steps required for doing a job Analysis:-
Step 1 Collection of Background Information According to terry, “the make-up of a job, its
relation to other jobs, and its requirements, for competent performances are essential information
needed for a job evaluation. This information can be available by reviewing available back
ground information. Such as
Organisation charts (Which show how how job in question relates to other job & where they fit
into overall organisation.
Class specificiations – Which describes general requirement of class of job to which the job
under analysis belongs)
Job descriptions - which provide a starting point from which to build revised job description.
Step2: Selection of Representative Position to be Analysed:-
Since the analysis of all jobs would be time-consuming, few representative positions
should be analyzed.
Step3: Collection of Job Analysis Data
Data should be collected regarding employee qualification and requirements, either from
employees who actually perform a job or from other employees (Such as foreman or supervisor)
who watch the workers doing a job and thereby acquire knowledge about it or from outside
persons knows as the trade job analysis who are appointed to watch employees performing.
The duties of such a trade job analyst are
(i) to outline complete scope of a job & to consider all physical and mental activities involved in
determining what the worker does.
(ii) find out why a worker does a job and
(iii) Skill factor which may be needed in worker to differentiate between jobs & establish the
extent of difficulty of any job.
Step 4: Developing A Job Description:-
The information collected is to be developed in form of a job description. This is written

statement that describes main features of job as well as qualifications.
Step 5: Developing Job specification:-

The last step is to convert job Description statements into job specifications i.e. to
specifically mention what personal qualities, traits, skills and background is necessary for getting
the job done.
Techniques of Job Analysis Data:-
The determination of job tasks, skills and abilities necessary for successful. Performance
and responsibilities internet in job can be obtained through such methods or approaches as the
following:
(i) Personal observation

(ii) Sending out questionnaires.
(iii) Maintenance of log records
(iv) Conducting Personal interviews.
(1) Personal Observation:-
The materials & equipment used working conditions & probable hazards, and an
understanding of what the work involves are the facts which should be known by an analyst.
Direct observation is especially useful in jobs that consist of physical ability like jobs of
draftsman, mechanic, or weaver..
(2) Sending Out Questionnaires:- This method is usually employed by engineering consultants.
Properly drafted questionnaires are sent out to job- holders for complete & are returned to
supervisors. However, information received is often unorganized & incoherent. The idea in
issuing questionnaire is to elicit necessary information from job holders so that any error may
first be discussed, with employee and after due corrections, may be submitted to job analyst.
(3) Maintenance of Log Records:-
The employee maintains a daily record of duties he performs, marking the time at which
each task is started and finished. But this system is incomplete because it does not give us any
desirable data on supervisor relationship, equipment used, and working conditions. Moreover, it
is time consuming.
(4) Personal Interviews:-
May be held by analyst with the employees, and answers to relevant questions may be
recorded. But this method is time-consuming &costly.
However, it may be noted that personal observation & interview approach are more or
less complete & accurate. If a particular job is simple & repetitive observations may be only
technique required. Otherwise in most cases, interview coupled with observation constitute
desirable approach.
Recruitment /Search
Definition:-
According to Edwin. B. Flippo, “Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organisation.”
The aim of recruitment is to attract a large number of applications from job seekers. It
makes the requirements of job known to the likely candidate in the job market. It provides
sufficiently large group of qualified candidates so that most eligible employees can be selected.
Thus recruitment is a positive activity which seeks to persuade people to apply for jobs.
The process of recruitment:-
(i) Identifies different source of labour supply.

(ii) Assesses their validity.
(iii) Chooses the most suitable source or sources.
(iv) Invites applications from prospective candidates for vacant jobs.
SOURCES OF RECRUITMENT:-
1) Internal Source (recruitment from within enterprise)

2) External Source (recruitment from outside)
A) INTERNAL SOURCES:-
1) Promotion:-
Means shifting an employee to a higher position carrying greater pay, status &
responsibilities Various positions in an organisation are usually filled up by promotion of
existing employee on basis of merit or seniority or combination of both.
2) Transfer:-
Refers to change in job assignment which may involve promotion, demotion or no

change in terms of responsibility & status. Transfer may be either temporary or permanent
depending upon necessities of filling jobs. Transfer generally involves no significant change in
pay, status & responsibility of employees.
Advantages:-
1) Employees are motivated to improve their performance.

2) Industrial peace prevails in enterprise because of promotional avenues.
3) It is cheaper source as compared to external source.
4) Transfer of job is a tool of training employees to prepare them for higher job.
5) It promotes loyalty among employees as they feel secured on account of chances of

advancement.
Limitations:-
1) The scope of fresh talent is reduced, when vacancies are filled through internal promotions.
2) The spirit of competition among employees may be hampered.
3) Frequent transfer of employees may reduce overall productivity of organisation.
4) There may be chances of conflict in fighting among emp loyees who aspire for promotion to
available vacancies as those not promoted may become unhappy & there efficiency may decline.
EXTERNAL SOURCES
1) Advertisement:-
Enterprise advertises vacancies through newspaper, trade journals & magazines. The
content of advertisement & media through which advertisement is to be given is decided by
Human Resource department. It is convenient & economical method.
2) Casual Callers:-
On occasions people drop in without any announcement of vacancy to find out if jobs are
available. A waiting list of such visitors may be prepared & they may be screened to fill the
vacancies whenever they arise.
3) Gate hiring or Recruitment at factory gate:
It is usually followed by factories to fill up vacancies at lower level. Large enterprises

usually plays a notice on notice board specifying details of job available. A large number of
unemployed persons assemble at gate where personnel manage scrutinize them & pick the
persons as per requirement Small workshops recruit fitters, welders etc, through this source.
4) Educational Institutions:-
School, colleges & professional institutions offer opportunities for recruiting their
students. Prospective employeers verify credentials of students & conduct interview directly,
placement cells have been set up in well known educational institutions to help students in
securing suitable jobs.
5) Management Consultants:-
Help to recruit technical, professional & managerial personnel for example accountants,
engineers. They specialize in middle level & top level executive placements. They maintain data
bank of persons with different qualifications & skills & even advertise jobs on behalf their
clients to recruit right type of personnel.
6) Recommendations:-
Friends & relative of present employees are also good source of recruitment. Many
concerns prefer such candidates as they generally stand surety for new recruits and their
background is partly known & type of preliminary screening takes place.
7) Labour Contractor:-
Workers are recruited through labour contractors who are themselves employees of
organisation. The dis advantage of this system is that if contractor leaves the organisation, all the
workers employed through him will also leave. Recruitment through this source has been banned
for public sector units. However, this practice is still common in case of construction industry.
8) Telecasting:-
The practice of telecasting of vacant posts over T.V. (Doordarshan & other channels) is
gaining importance these days. Special programmes like ‘Job Watch’, ‘Youth Pulse’,
‘Employment News’ etc, over T.V. have become quite popular in recruitment for various types
of jobs.
The use of T.V. as a source of recruitment is less as compared to other sources because it
is an expensive medium.
9) Union list:-
‘Sometimes trade Unions list maintain list of candidates seeking employment in the
concern. Such candidates could be recruited in consultation with union.
10) Central application file:-
A file is maintained of past applicants who were not selected earlier, in case of immediate
requirements such candidates can also be contacted.
Merits:-
1) Wide Options:-
It brings large number of applicants as it permits enterprise to have free hands in making
selection.
2) Fresh talent:-
Enterprise can expect to get fresh talented candidates from outside which leads to
infusion of New Blood & new ideas in to enterprises.
3) Element of competition:-
This is a healthy feature from point of view of enterprise as internal candidates have to
compete with outside candidate.
Limitations:-
1) Lengthy process:-
It takes long time. The business has to notify vacancies & wait for applicantions to
initiate selection process.
2) Costly process:-
A lot of money has to be spent on advertisement & processing of applications.
3) Uncertain Response:-
The candidates from outside may not be suitable for enterprise. There is no guarantee that
enterprise will be able to attract right kinds of people from external sources.
4) Dissatisfaction among Existing staff:-
They may feel that their chances of promotion may be reduced.
Career Planning and Succession Planning:-
A succession plan to fill key positions over time is essential for success & survival of an
organisation. Its purpose is to identify & develop people to replace current incumbents in key
positions in case of resignation, retirement, promotion, growth etc. succession can be within or
from outside the organisation. Succession by people from within provides opportunities to
employees for advancement in their careers. Complete dependence on internal sources may
however cause conflicts & stagnation in the organisation. Similarly, complete dependence on
outside talent may cause stagnation in career of present employees which may in turn lead to a
sense of frustration and job dissatisfaction.
Career planning & succession planning appear to be similar but not synonymous. Career
planning covers all levels of employees where as succession planning is generally required for
higher level executives. Generally, career planning is based on a succession plan for higher level
executives. A succession plan involves identification of vacancies that are likely to occur in
higher levels and locating probable successors. Succession planning facilitates continuity of
organisation. Career planning may consists of charts showing career paths of different categories
of employees showing how they can advance up in the organisation. But a succession plan
consists of a runner up chart or succession chart for a particular position such as General
Manager.
Exhibit 1:- Career Paths for Various types of Jobs
S.No. Name Current Designation Age
1 Mr. A Marketing Manager 59

2 Mr. B HR. Manager 58
3 Mr. C Finance Manager 57
4 Mr. D Production Manager 54
SELECTION
Selection mean a process by which qualified personnel can be chosen from the applicants
who have offered their services to the organisation for employment. Thus, the selection process
is a tool in the hands of the management. Selection involves a series of steps by which candidates
are screened for choosing most suitable persons for vacant posts. It is done by evaluation of
qualification, experience & other information provided by candidates. The object underlying
selection process is eliminated of those judged unqualified to meet job & organisation
requirements. Thus it tends to be a negative process as it reject good proportion of those who
apply.
SELECTION PROCEDURE:-
1) Preliminary Screening:-
a) Receive of application:-
Selection process starts with receipt of application by personnel department.
b) Scruitiny:-
All applications received are scrutinised to find out whether candidates fulfill minimum
academic qualification & other requirements.
c) Preliminary Interview: -
It eliminates unqualified candidate
Application Blank:-
If candidate appears to have some chance of being selected, he is given prescribed

application form known as “application Blank.” Application blank is a personal history question
are. Application blank consist of following particulars usually. Indentifying information such as
name, address, age marital status, educational qualification, work experience etc, candidates are
usually ask to fill up the application form in their own hand writing.
3. Employment test:-
Candidates who meet minimum requirements appear written or oral tests as means of
examining suitable for job. The various test include intelligence test aptitude test, trade test,
general personality test, psychological test and proficiency est. depending on job requirements.
These tests are selected and administereal. Some organisation may hold one or more test while
some other may not hold test at all. Much depends on policy of top management, nature of jobs
and availability of candidates.
4. Selection interview:-
It basically consist of conversation between employer and prospective employee. The

selectors ask for job related and some general questions and see the response of candidates it
helps in avessing candidates strength and a weaknesses. Candidates interact with selector and the
letter gets a first hand idea of personality and other qualities of candidates. Candidates also get a
chance to seek information about enterprise, nature of the job, prospects of promotion.
Ques. 4 Distinguish between training and development. Explain various techniques of

development of managers.
Ans. Training is a process of learning a sequence of programmed behavior. It is application of

knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It
attempts to improve their performance on the currents job or prepare them for an intended job.
Development is a related process. It covers not only those activities, which improve job
performance, but also those which bring about growth of the personality; help individuals in the
progress towards maturity and actualization of their potential capacities so that they become not
only good employees but better men and woman. In organisational terms, it is intended to equip
persons to earn promotion and hold greater responsibility. Training a person for higher and
bigger job is development. And this may well include not only imparting specific skills and
knowledge but also inculating certain personality and mental attitudes.
Training is short term process utilizing a systematic and organized procedure by which
non managerial personal learns technical knowledge and skills for a definite purpose.
Development is a long term educational process utilizing a systema tic and organised procedure
by which managerial personnel learn conceptual and theoretical knowledge for general purpose.
Management development is any attempt to improve managerial performance by

imparting knowledge, changing attitude or increasing skills. The general management
development consists of (1) assessing the company’s strategic needs (for instance, to full future
executive openings or to boost competitiveness).
(2) Developing managers for future responsibilities.

There is more emphasis on choosing management development methods that are more
organizationally relevant and effective that they have been in the past. Various techniques of
management development include:-
(a) Management on-the-job training.

(b) Off the job training.
Managerial on-the-job training methods include job-rotation, coaching/understudy approach and

action learning.
Job rotation means moving management trainees from department to broaden their
understanding of all part of the business and to test their babilities. A manager may spend several
months in each department. The person may just bean observer in each department but more
commonly gets fully involved in its operations.
Coaching/understudy approach: Here the person workers directly with the senior manager or
with the person he or she is to replace; the latter is responsible for the executive of certain
responsibilities, giving the trainee a chance to learn the job.
Action learning programmers give managers and others released time to work full time on
projects, analysis and solving problems in departments other than their own trainees meet
periodically in four or five person project groups to discuss their findings. Several trainees may
work together as a project group or compare notes and discuss each other’s projects.
Off the job training and development techniques
The off the job development techniques for managers include case study method; management
games; role playing etc.
Case Study method:- Case study method presents a trainee with a written description of an
organisational problem. The person then analyzes the case, diagnoses the problem and presents
his or her findings and solutions in discussion with other trainees.
Management Games:- With management games trainees are dividend in to give or six persons
group, each of which competes with the others in a stimulated marketplace. Management games
can be good development tools. People learn best by getting involved, and the games can be
useful for gaining such involvement. They help trainee develop their problem solving skills, as
well as to focus attention on planning rather than just putting out fires. The group also usually
elect their own officers and organize themselves; they can thus develop leadership skills and
faster cooperation and team work.
Roll Playing:- The aim of role playing is to create a realistic situation and then have the trainees
assume the role of specific persons in that situation. When combined with the general instruction
and other roles for the exercise, role playing can trigger spirited discussions among the role
player trainees. The aim is to develop trainee’s skills in areas like leadership and delegation.
UNIT –3
Compensation-Aims & components, Factors determining pay rates; Establishing pay rates,
Job Evaluation; Pay for performance; Employee benefits & services; Performance appraisal,
360 degree feed back, Potential appraisal.
Compensation
“ Compensation refers to a wide range of financial and non-financial rewards to employees for
their services rendered to the organisation.” It is paid in form of wages, salaries, and employee
benefits such as paid vacations, insurance, maternity leave, free travel facility, retirement
benefits etc. monetary payments are a direct form of compensating employees & have a great
impact in motivating employees. The system of compensation should be designed in such a way
that it achieves following objectives:
(1) Capable employees are attracted towards organisation.

(2) Employees are motivated for better performance.
(3) Employees do not leave employer frequently.
Base compensation: Wages and Salary
Base compensation includes monetary benefits to employees in form of wages or salaries. The
term ’wage’ is used to denote remuneration to workers doing manual or physical work. Thus
wages are given to compensate the unskilled workers for their services rendered to organisation.
Wages may be based on hourly, daily, weekly or even monthly basis.
The term ‘salary’ means compensation to office employees, foremen, managers &
professional & technical staff. It is based on weekly, monthly &yearly basis. Thus time period
for which salaries are paid is generally higher than in case of wage payments.
Wages may be based on number of units produced (i.e. piece wage system) or time spent
on job. But salary is always based on time spent on job.
Factors determining pay rates:
1) Demand and supply:- Wage rates of workers depends upon demand and supply force in
labour market. If the labour is in short supply, the workers will offer the services only if they are
paid well. On the other hand, if the supply is more then workers available might get ready work
at cheaper rates.
2) Bargaining Power: Where labour unions are strong enough to force the hand of employers,
the wages will be determined at a higher level in comparison to other units where unions are
weak.
3) Cost of living:- Wages of workers also depends upon the cost of living of the worker so as to
ensure him a decent living wage. Cost of living varies under deflationary and inflationary
pressures. Where labour uncons are strong and employer do not show enough awareness, here
wage are adjusted according to cost of living index numbers.
4) Condition of product market:- Degree of competitions prevailing in the market for the
product of the industry will also influence the wage level. For eg if there is perfect compition in
the market the wage level may be at par with the value of net additions made by the workers to
the total output, but may not reach this level in case of imperfect compition in the market.
5) Comparative Wages:- Wages paid by the other firms for the same work also influence the
wage levels. Wage rates must also be in consistent with the wages paid by the other firms in the
same industry so as to increases the job satisfaction among the workers.
6) Ability to Pay:- Wage rates are influenced by the paying ability of industry or firms to its
workers. Those firms which are earning huge profits may afford to pay high wages and can
provide more facilities to its workers in comparison to the firms earning comparatively low
profits.
(7) Productivity of labour:- Fligher productivity will automatically fetch more profit to the
firm, where in turn workers will be paid high wages in comparison to other firms with low
productivity.
(8) Job Requirements:- If a job require higher skill, greater responsibility and risk, the worker
placed on that job will naturally get higher wages in comparison to other jobs which do not
require the same degree of skill, responsibility or risk.
(9) Govt. Policy:- Since the bargaining power of the workers is not enough to ensure fair wages
in all industries, the Govt. has to interfere in regulating wage rate to guarantee minimum wage
rates in order to cover the essentials of a decent living.
(10) Goodwill of the company:- A few employers want to establish themselves as good
employer in the society and fix higher wages for their workers. It attract qualified employees.
In addition there are other important factors which affect the individual differences in wage rates.
These are:
1). Worker’s Capacity and Age

2). Educational qualification.
3). Work experience.
4). Promotion possibilities.
5). Stability of employment
6). Demand for product.
7). Profits earned by the organisation.
8). Hazards involved in work etc.
Affecting, determining and establishing pay rates.
Ans. Compensation may be defined as money received in the performance of work, plus the
many kinds of benefits and services than organisations provide their employees. Money is
included under direct compensations (popularly known as wages i.e. gross pay): while benefits
come under indirect compensation and may consist of life, accident and health insurance and
employer’s contribution to retirement, pay for vacation or illness and employer’s required
payments for employees welfare as social security.
Factor affective pay rates include:-
a) The organisation’s ability to pay

b) Supply and demand of labour
c) The prevailing market rates
d) The cost of living
e) Living wage
f) Productivity
g) Trade union Bargaining power
h) Job requirements
i) Management attitudes
Higher wages are given by those organisation which can afford them. Companies that have
good sales and therefore, high profits tend to pay higher wages than those which are running at
loss or earning low profits because of high cost of production or low sales.
The labour market condition or supply and element forces operate at the national, regional
and local levels and determine wage structure and level. If the demand for certain skills is high
and the supply is low, the result is a rise in the price to be paid for these skills.
Most of the companies adopt prevailing market safe or going wage safe criterion for
compensating its employees. This is done for several reasons. First, competition demands that
competitors adhere to same relative wage rate. Second, various government laws and judicial
decisions make the adoption of uniform wage rate an attractive proposition. Third, trade unions
encourage this practice so that their members can have equal pay for equal work. Fourth,
functionally related firms in the same industry require essentially the same quality of employees,
with the same skills and experience. This result in a considerably uniformity in wages and salary
rates, finally if the same or about the same general rates of wages are not paid to the employees
as are paid by the organisational competitors, it will not be able to attract and maintain a
sufficient quantity and quality of manpower.
The cost of living pay criterion is usually regarded as an automatic minimum equity pay
criterion. This criterion calls for pay adjustments based on increases or decreases in an
acceptable cost living index.
The living wage criterion means that wages paid should be adequate to enable an employee
to maintain himself and his family at a reasonable level of existence.
Trade unions do effect rate of wages. Generally, the stronger and more powerful the trade
union; the higher the wages. A trade union bargaining power is often measured in terms of its
membership, its financial strength and the nature of its leadership.
Generally, the more difficult a job, the higher are the wages. Measures of job difficulty are
frequently used when the relative value of one job to another in an organisation is to be as
curtained. Job are graded according to the relative skill, effort, responsibility and job conditions
required.
Managerial attitudes have decisive influence on the wage structure and wage level since
judgment is exercised in many areas of wage and salary administration including whether the
firm should pay below average or above average rates, what job factors should be used to reflect
job worth, the weight to be given below the structure and level of wages are bound to be affected
accordingly. These matters require the approval of top executives.
Various factors for establishing pay rates include:-
1. These should be definite plan to ensure that differences in pay for jobs are based upon
variations in job requirements. Such as skill, effort, responsibility or job or working
conditions and mental and physical requirements.
2. The general level of wages and salaries should be reasonably in line with that
prevailing in labour market.
3. The plan should carefully distinguish between jobs and employee. A job carries a A
certain wage rate and a person is assigned to fill it at that rate. Exceptions sometimes
occur in very high level jobs in which the job holder may make the job large or small,
depending upon his ability and contributions.
4. Equal pay for equal work i.e. if two jobs have equal difficulty requirements, the Pay
should be the same, regardless of who bills them.
5. An equitable practice should be adopted for the recognisation of individual
differences in ability and contribution. For some units this may take the form of rate
ranges, with in grade increases; in other this may take form of closely integrated
sequences of job promotion.
6. The should be a clearly established procedures for hearing and adjusting with the
regular grievance procedure if it exits.
7. The employees should be informed about the procedures used to establish wage rates.
Every employee should be informed of his position and of the wage and salary
structure. Secrecy in wage matters should not be used as a cover up for haphazard and
unreasonable wage programme.
1. The wage should be sufficient to ensure for the worker and his family reasonable
Standard of living. Workers should receive a guaranteed minimum wage to protect
them against conditions beyond their contract.
2. The wage and salary structure should be flexible so that changing conditions can Be
easily met.
3. The wage and salary payments must fulfill a wide variety of human needs, Including
the need for self actualization. It has been recognized that money is the only form of
incentive which is wholly negotiable, appealing to widest range of seekers. Monetary
payments of ten out as motivators and satisfiers interdependently of other job factors.
Ques 6 What is Performance appraisal? List out methods of Performance Appraisal?

Explain in detail 360 degree performance appraisal method.
Ans. Performance appraisal means evaluating an employee’s current or past Performance relative
to the person’s performance standards. Appraisal involves:
(i) Setting work standards (ii) Assessing the employee’s actual performance relative to these
standards (iii) Providing feedback to the employees with the aim of motivating that person to
eliminate deficiencies or to continue to perform above par.
Managers usually conduct the appraisal using a predetermined and formal method. Various
methods of appraisal include:-
a) Graphic rating scale method.

b) Alternate ranking method
c) Paired comparison method
d) Forced distribution method
e) Critical incident method
f) Narrative forms
g) Behaviorally anchored rating scales
h) Management by objective (MBO)
i) 360 degree feedback.
Graphic rating scale method:- The graphic rating scale method is the simplest and most
popular technique for appraising performance. A graphic rating scale list traits (such as quality
and reliability) and a range of performance values (from unsatisfactory to outstanding) for each
trait. Subordinates are rated by circling of checking the score that best describes his or her
performance for each trait. Then the total of assigned value is calculated.
Alternate ranking method: - This method involves ranking employees from best to worst on a
particular trait, choosing highest, then lowest until all are ranked. Since it is easier to distinguish
between the worst and best employees and alternate ranking is quite popular. First, list all
subordinates to be rated. Then indicate the employee who is the highest on the characteristic
being measured and also the one who is lowest. The process continues till all the employees are
ranked on similar fashion.
Paired comparison method:- Paired comparison method helps make the ranting method more
precise. For every trait (quality of work, quality etc), Pairs are made and every subordinate is
compared with every other subordinate.
Forced distribution method: - Forced distribution method is similar to grading on a curve. With
this method, manager place predetermined percentage or rates in to performance categories. For
example you may decide to distribute employees as follows:
15% high performance

20% High average performance
30% average performance
20% low average performance
15% low performance
Forced distribution means tow things for employee: Not everyone can get an A; and ones
performance is always rated relative to ones peers. One practical, one practical, if low-tech, way
to do this is to write each employee’s name on a separate index card. Then for each trait (quality
of work, creativity etc.) managers place the employee’s card in the appropriate performance
category.
Critical Incident Method:- Critical incident method involves keeping a record of uncommonly
good or undesirable examples of an employee’s work related behavior and reviewing it with the
employee at predetermined time.
Narrative Forms:- The final written appraisal is often in narrative form. A person’s supervisor
is asked (i) to rate the employees performance for each performance factor or skill (ii) to write
down examples and (iii) an important plan. This aids the employee to understand where his or
her performance was good or bad and how to improve that performance.
Behaviorally Anchored Rating Scales is an appraisal method that aims at combining the
benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with
specific narrative example of good and poor performance.
Employees benefits & Services
Health of Workers in Factories
See- 11 to 20 of Factories Act 1948 contain provision regarding creation provision regarding
creation of Healthy working conditions for Workers:-
1) Cleanliness (Sec11):-
Every factory should be kept clean & free from drain, nuisance, dust. It should be
suitably cleaned & repainted.
2) Disposal of wastes & Effluents:- (Sec 12)
Proper provision should be made for disposal of waste due to manufacturing process.
3) Ventilation & Temperature :- (Sec 13)
There should be adequate ventilation by circulation of fresh air & such a temperature as
will secure to workers there in resonable conditions of comfort & prevent injury to health.
4) Dust and fume:- (Sec 14)
Effective measure must be taken to prevent dust or fume or other impurity whic h are
injurious to workers. Exhaust appliance are necessary for this purpose.
5) Artificial Humidification :- (Sec 15)
In respect of all factories in which humidity of air is artificially increased, the state
government may prescribed standards of humidification, regulate methods used for artificially
increasing humidity of air.
6) Over crowding :- (Sec 19)
No room in any factory should be overcrowded & at least 350 cubic feet of space for
every worker should be provided.
7) Lighting :- (Sec 17)
In every part of factory there should be proper lighting natural or artificial or both.
Glazed windows & skylights should be used for lightings.
8) Drinking Water: - (Sec 18)
In every factory, effective arrangements should be made to provide & maintain suitable
points conveniently situated for all workers employed there in.
Unit-IV
Industrial Relations; Industrial disputes and dispute resolution; Trade Unions; Employee
grievances and Discipline; Participation and Employee empowerment.
INDUSTRIAL RELATIONS
The term ‘industrial Relations’ refers to all type of relationships between all the parties
concerned with industry. The parties related to industry are the workers and management
representing owners. Thus, industrial relations connote a vast complex relationships obtaining
between management and employees, union and management, union & employees and between
employees themselves. Both parties to industrial relations have a common interest in industry but
many a time, they are found to be pulling in different directions which leads to industrial unrest.
Therefore, it has become necessary to secure the cooperation of both workers and management
to achieve good industrial relations.
According to DaleYoder, “ The term ‘industrial relations’ refers to the relationship

between management and employees or among employees and their organisation that arise out of
employment.”
Its scope includes three rarely distinct areas:-
(i) Relations between managers and individual workers.

(ii) Collective relations between employers and labour unions and.
(iii) The role of government in the regulation of these relationship. These three closely
associated areas are often referred to respectively as personnel management,
collective bargaining and labour legislation.
Objectives of Industrial Relations
The Primary objective of industrial relations is to maintain good & healthy relations between
workers and management in the enterprise. All other objectives revolve around this primary
objective. Some of these are as below:-
(1) To Promote healthy Labour- management relations.

(2) To protect interest of employees as well as management by securing highest level of
mutual understanding and goodwill among them.
(3) To raise productivity to a higher level which is the need of the day & to contribute to
economic development of the country.
(4) To check industrial conflicts & minimise the occurrence of strikes, lockouts & gheraos.
(5) To minimise labour turnover & absenteeism by providing job satisfaction to the workers.
(6) To facilitate & develop industrial democracy based on workers’ partnership in
management of industry.
(7) To establish government control over industries to regulate production and industrial
relations.
Parties to Industrial Relations
(1) Workers & their Organisation:-
The personal characteristics of workers, their culture, educational attainments,

qualifications, skills, attitude towards work etc, play an important role in industrial relations.
Workers’ organisations, known as trade unions, are political institutions.
(2) Employers & their Organisations:-
The employers are a very important variable in industrial relations & regulate their
behaviour for getting high productivity from them. Industrial unrest generally arises when the
employers demands from workers are very high and they offer low economic & other benefits.
(3) Government:-
The government exerts an important influence on industrial relations through such

measures as providing employment, and regulating wages, bonus and working conditions,
through various laws relating to labour.
Significance of good Industrial Relations or Industrial Peace
(1) Industrial Peace:-

Cordial industrial relations bring harmony & remove causes of disputes which leads to
industrial peace which is necessary for productivity and growth.
(2) Higher Produc tivity:-
Due to cordial industrial relations, workers take interest in their jobs and work efficiently
which leads to higher productivity and production & thus contribute to economic growth of the
nation.
(3) Industrial Democracy:-

Sound industrial relations are based on consultation between the workers and
management which help in establishment of industrial democracy in the organisation.
(4) Collective Bargaining:-
Good industrial relations are extremely helpful for entering into long-term agreements as
regards various issues between Labour and Management.
(5) Fair Benefits to Workers:-
The Workers should get sufficient economic and non-economic benefits to lead a happy
life. It is possible when relations between workers and management are cordia l and productivity
is high.
(6) High Morale:-
Good industrial relations imply existence of an atmosphere of mutual cooperation,

confidence & respect within enterprise. In such an atmosphere, there are common goals, which
motivate all members of organisation to contribute their best.
(7) Facilatation of change :-
By creating a climate of cooperation, & confidence make the process of change easy.
Hence, full advantage of latest inventions, innovations & other technological advancements can
be obtained. The work force easily adjusts itself to required changes for betterment.
Thus, smooth industrial relations are necessary and useful to employers and employees.
Rapid industrial growth and high industrial productivity are possible when smooth industrial
relations exist. Along with this, workers get higher wages and other monetary benefits.
Trade Union
A trade Union may be defined as an organisation of employees formed on a continous

basis for the purpose of securing diverse range of benefits. Sec (h) of Indian Trade Unions Act,
1926 defines trade union as any combination, whether temporary or permanent, formed primarily
for the purpose of regulating the relations between workmen and employers or between
workmen and workmen, or between employers and employers or for imposing restrictive
conditions on the conduct of any trade or business, and includes any federation of two or more
trade unions.”
According to Edwin.B.Filippo, “ A trade union is an organisation of workers formed to

promote, protect and improve, through collective action, the social, economic and political
interests of its members.”
Features of trade Unions:-
a) They are voluntary association of workers in one or more occupations.

b) They are formed for the pursuit of common interests of members. They protect the
economic interests of members and also promote their welfare.
c) They always act collectively i.e. through united action of members.
d) They are concerned with economic, cultural, political and social life of their members.
Objectives of Trade Union: -
Trade Unions are organised for protection and promotion of interests of their members in
particular and workers in general. It generally pursue the following broad objectives.
(1) Steady employment:-
Steady employment is something which the employer by himself may not be able to
guarantee to the workers. Achievement of this aspiration may thus involve workers in political
action, through their unions, for maintenance of full employment.
(2) Rationalisation of personnel policies:-
The economic security of an employee is determined not only by level of wages and
duration of his employment but also by management’s personnel policies - in its selection of
employees for lay off, retrenchment, transfer and promotion, the assignment of employees to
jobs etc. if these decisions are based on subjective evaluation, there is no security for workers. If
such decisions are governed by rules and rational policies, there is greater assurance for fair
treatment.
(3) Voice in decisions affecting workers:-
workers may successfully pressurise for higher wages workers want to know what his
chances are for continued attachment to the company. What is “the success of the company” to
him if in transferring the plant, say, from Delhi to Ghaziabad he is laid off? The intervention of
trade union in such decisions of management is the only method by which the workers is able to
achieve any degree of control over the affairs that concern him.
(4) Recognition and participation:-
Another objective that unions seek to achieve is winning recognition for workers that
they are equal partners with management in the task of production. It is an intellectual quality
that is the intellectual faculties of workers are no inferior to those of management.
(5) Gaining legislative enactments:-
To Provide legal sanctions to its demands, the unions attempt to get these framed in form
of Acts so that they become permanent features of the contract between employers and workers.
(6) Miscellaneous Services:-
Modern trade union also engage in providing educational, medical, recreational and other
facilities for development and welfare of their members.
Functions:-
For the achievement of the above mentioned objectives, the trade Unions generally perform the
following functions:-
(i) Collective bargaining with the management to settle terms and conditions of
employment.
(ii) Advise the management on personnel policies and practices.
(iii) Taking up the individual and collective grievances of the workers with the
management.
(iv) Work for achieving better say of workers in the management of affairs of the
enterprise which influence the lives of the workers directly.
(v) Organising demonstrations, strikes, etc, to press demands of workers.
(vi) Education of workers and their children.
(vii) Welfare and recreational activities for their members.
(viii) Representing of workers in various national and international forums.
(ix) Securing legislative protection for workers from the government.
GRIEVANCES
Grievances is a feeling of discontenment or distatisfaction among workers regarding

anything concerned with the company. Grievance may be felt by any party (employer and
employee) against the other party.
Definition:-
According to Richard P. Calhoon, “ a grievance is anything that an employee thinks or

feels is wrong, generally accompanied by an activity disturbing feeling.” According to
Dale.S.Beach,” Grievance is any dissatisfaction or feeling of injustice in connection.
Sources of Grievances:-
The causes of grievances may be grouped under three heads-
(1) Grievances resulting from Managerial Polices:-
a) Wage rates or scale of Pay.

b) Overtime
c) Leave
d) Transfer- improper matching of worker with the job
e) Seniority, Promotion and discharges.
f) Lack of career planning and employee development plan
g) Lack of role clarity.
h) Lack of regards for collective agreement.
i) Hostility towards a labour union.
j) Autocratic leadership style of supervisors.
(ii) Grievances resulting from Working conditions:-
(a) Unrealistic.
(b) Non-availability of proper tools, machines and equipments for doing the job.
(c) Tight Production standards.
(d) Bad working conditions.
(e) Poor relationship with the supervisor.
(f) Negative approach to discipline.
(iii) Grievances resulting from Personal factors.
(a) Narrow attitude

(b) Over-ambition
(c) Egoistic personality
(d) Non Cooperative fellow workers
(e) Personal Problems outside factory.
Handling of Grievances:-
Grievances are symptoms of conflicts in enterprise. So they should be handled very

promptly and efficiently. Coping with grievances forms an important part of manager’s job. The
manner in which he deals with grievances determines his efficiency in dealing with subordinates.
A manager is successful if he is able to build a team of satisfied workers by removing their
grievances. While dealing with grievances of subordinates, it is necessary to keep in mind the
following points:
(1) A grievances may or may not be real.

(2) Grievances may arise out of not one cause but multifarious causes.
(3) Every individual does not give expression to his grievances.
For the purpose of handling grievances efficiently, it is necessary to find & analyse the
grievances of the subordinates. If a grievances is found to be real or genuine, the corrective
action should be taken immediately. But if grievances arises due to imagination or distributed
frame of mind of workers, then it is necessary to exp lain & clear up the matter. Before dealing
with the grievances, their causes. He may realise the existence of grievances because of high
labour turnover, high rate of absentecism & poor quality of work.
While dealing with grievances, a manager cannot depend upon any readymade Solutions.
Every case has to be dealt with on its merits. The following guidelines may be followed to deal
effectively with the grievances:-
(1) The complainant should be given a patient hearing. He should be allowed to express himself
completely.
(2) Attempts should be made to get at the root of the problem.
(3) The management must show its anxiety to remove the grievances of the workers.
(4) If the grievances are real & their causes are known, attempts should be made to remove the
causes.
(5) If grievances are imaginery, attempts should be made to cousel the workers.
Grievance Procedure:-
These include:-
(i) Open door policy.
(ii) Step- ladder procedure.
(I) Open Door Policy:-
under this procedure, the employees are free to meet the top executive of the organisation
& get their grievances redressed. Such a policy may work well in small organisation and may not
be suitable for big organisation because top executives will be too busy in other matters
Moreover, top management is not too familiar with working conditions of operative employees.
It may be difficult for it to attend to employee grievances because of lack of sufficient
information. Lastly, it is also said that this policy is suitable for executives to walk through & not
operative employees. The employees may even hesitate to go to top executives with their
grievances.
(ii) Step-Ladder Procedure:-
Under this procedure, aggrieved employee has to proceed step by step in getting his
grievances heard & redressed, as given in diagram.
Step No. 1
Filing of Written
grievances
Step No. 2
Supervisor or
Foreman
Step No. 3
Head of
Department
Step No. 4
Joint Grievances
Committee
Step No. 5
Chief Executive
Last Step
Voluntary
Arbitration
SETTLEMENT
Step- ladder Grievance Procedure
Firstly, he has to present his grievance in writing to his supervisor or foreman. If he is not
satisfied with his decision, he may go to the head of the department. There may be joint
grievance committee after the decision of the head of department is not acceptable to the
employee. If the committee also fails to redress his grievances, the matter may be referred to
chief executive. The grievance procedure will be said to be exhausted if chief executive is also
not able to redress the grievance. The worker should not take any action against management
until the whole grievance procedure has been exhausted.
The grievance assume the form of a conflict after the worker is not satisfied with the
decision of chief executive. For maintaining industrial peace in the plant, it is advisable to refer
such grievance to the voluntary arbitrations. The award of arbitrator should be binding on both
the parties.
DISCIPLINE
Meaning:-
Maintenance of harmonious human relations in an organisation depends upon promotion

and maintenance of discipline. No organisation can prosper without discipline because it is a
matter of utmost concern for all organisations.
Discipline in Industry may be described as willing cooperation and observance of rules

and regulations of the organisation. Simply stated, it means orderliness. It implies absence of
chaos irregularity and confusion in behaviour of workers.
Definition:- According to Ordway Tead, “Discipline is the orderly conduct of affairs by the
members of an organisation, who adhere harmoniously in forwarding towards the end which the
group has in view and willingly recognise that.”
Aspects- There are 2 aspects of discipline.
(a) Positive Aspect :-
Employees believe in and support discipline and adhere to rules, regulations, and desired
standards of behaviour. Positive discipline takes places whenever the organisational climate is
marked by aspects such as payment of adequate remuneration and incentives, chances for career
advancement, etc, which all motivate employees to adhere to organisation rules & regulations.
(b) Negative Aspect:-
Employees sometimes do not believe in discipline. As such, they do not adhere to rules,
regulations and desired standards of behaviour. This approach to discipline is called negative
approach or corrective approach or punitive approach. In this approach people are forced to
observe rules and regulations on account of fear of fine, demotion or transfer.
Importance:-
Discipline is very essence of life. Absence of discipline means chaos and disorder. In an
industry big or small, manpower is the most important factor which can be used effectively only
if there is discipline in the industry. It can be brought about by fear or punitive actions, it should
be brought voluntarily. A man may work under compulsion but he will constantly be in conflict
with his natural impulse and strain which can’t be considered good social relations in work
group. So in order to bring discipline there should be good relationship between employer and
employee and interest of workers should also be highlighted.
Maintenance of discipline is a prerequisite for the attainment of maximum productivity,

not only of workers but also of entire nation. Self-discipline is the highest form of discipline and
management effort should be directed to encourage this. True discipline is education because it
changes attitude of workers towards their work and workplace. Thus, discipline is to be
developed from within and it has to be reformative and not punitive.
Principles:-
The basic prerequisites of discipline in industrial organisations are as follows:-
1) The objective of industrial discipline should be clearly stated and specify the standards
expected of the work men.
2) Specific and clear rules and regulations should be laid down in consultation with the
workers which serve as code of conduct for workers and managers.
3) Rules must be communicated to all in organisation and must be understood in same
terms.
4) The rules of conduct must contain provision for investigation and settlement of
grievances arising out of and during course of employment.
5) The management should ensure that their own conduct and policies do not encourage
breach of discipline. This will promote self-discipline among workers.
6) The enforcement authority must be specified. The procedure for appeal against
disciplinary action by aggrieved party should also be provided.
7) The quantum of prescribed punishment in specified cases of indiscipline should be
known.
8) All rules and regulations should be executed objectively and consistently. They should be
appraised regularly to keep them suitable and upto date.
9) The discipline policy should seek to prevent the breach of discipline rather than to
administer penalties. Penalties should be used only when they become absolutely
necessary.
10) There should be suitable grievance procedure for the prompt redressal of all grievances
of employees. All awards & agreements should be implemented with out delay and
discrimination.
11) A discipline committee may be constituted to look into the causes of indiscipline in the
enterprise and to suggest suitable measures for their removal.
EMPOWERMENT
Empowerment occurs when employees are adequately trained, provided with all relevant
information & the best possible tools, fully involved in key decision & are fairly rewarded for
result. Empowerment is a key building block of progressive management by those who view
power an unlimited resource. The more power you give away (to lower level), the more you have
in terms of productivity & performance. This can be a difficult concept to grasp for traditional
authoritarian managers who see empowerment as a threat to their authority. Today, the issue is
not empowerment verses no empowerment. Rather the issue is how empowerment should take
place.
The famous exp. Of empowerment a total Quality Management (TQM) which is

employee driven for ensuring best possible quality products & services for satisfaction of
customers. TQM empowers employees at all levels in order to tap their full creativity, motivation
& commitment. The other practices which encourage teamwork & employer involvement
include suggestion system, quality circles, self managed team, participative leadership etc

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Personnel Management or Human Resource Management

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Personnel Management/ Human Resource Management VIMAL JOSHI

Modern Perspective of HRM/PM

In 1931, ‘Royal Commission on labour’ recommended appointment of labour officer. So

Personnel management is no longer restricted to wage earners in factories. It has become

3 Branches – (i) Personnel Administration

(1) Personnel administration- deals with administrative aspects such as recruitment,

- Conducting job analyses (determining the nature of each employee’s job).

Human Resources Planning consists of series of activities

a) Forecasting future manpower requirements, either in terms of mathematical projections

(i) To ensure optimum use of human resources currently employed.

1) It results in reducing labour cost as it helps the management to anticipate shortages or

The Process of Human Resource Planning

Objective of Inventory of HR Work Study & Determine Job

Appraisal of Training & Selection Recruitment

1) Objectives of Manpower Planning:-

2) Current Manpower Inventory:-

(i) Employment Trends:-

(ii) Replacement Needs:-

Gain in productivity will also influence requirements of manpower. Planning for

(iv) Growth & Expansion: -

(vi) Work Study:-

(4) Job Requirements:-

(5) Employment Plans:-

(6) Training & Development Programme:-

(7) Appraisal of Manpower Planning:-

After training programmes have been implemented, an appraisal must be made of

It is a written record of duties responsibilities and requirements of a particular job. It is

In other words, it refers to the anatomy of job.

Purposes and Uses of Job analysis:-

Job analysis is an essential ingredient of kind personnel Management. It is major input to

(1) Organisation and Manpower planning:-

(2) Recruitment, Selection:-

(3) Wages and Salary: Administration:-

Job Analysis helps in salary and wages administration by indicating qualifications

(4) Job Re-engineeri ng:-

(b) Human engineering activity:-

(5) Employee Training and Management Development:-

It provides the necessary information to the management of training & development

(6) Performance Appraisal:-

It helps in establishing clear-cut standards which can be compared with actual

(7) Health and Safety:-

It provides an opportunity for identifying difficult conditions & unhealthy environmental

Steps in Job Analysis

There are 5 basic steps required for doing a job Analysis:-

Step2: Selection of Representative Position to be Analysed:-

Step3: Collection of Job Analysis Data

The duties of such a trade job analyst are

(ii) find out why a worker does a job and

Step 4: Developing A Job Description:-

The information collected is to be developed in form of a job description. This is written

Step 5: Developing Job specification:-

Techniques of Job Analysis Data:-

(i) Personal observation

(1) Personal Observation:-

(3) Maintenance of Log Records:-

(4) Personal Interviews:-

According to Edwin. B. Flippo, “Recruitment is the process of searching for prospective

The process of recruitment:-

(i) Identifies different source of labour supply.

1) Internal Source (recruitment from within enterprise)

Refers to change in job assignment which may involve promotion, demotion or no

1) Employees are motivated to improve their performance.

5) It promotes loyalty among employees as they feel secured on account of chances of

2) The spirit of competition among employees may be hampered.