Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow MBA 011 : PRINCIPLES & PRACTICE OF MANAGEMENT UNIT

3 Staffing: Concept, System Approach, Manpower Planning, Job Design, Recruitment & Selection, Training & Development, Performance Appraisal Directing: Concept, Direction and Supervision Motivation: Concept, Motivation and Performance, Theories Of Motivation, Approaches for Improving Motivation, Pay and Job Performance, Quality of Work Life, Morale Building. Staffing The systematic approach to the problem of selecting, training, motivating an retaining good personnel in any organisation is referred to as staffing. The job of staffing is concerned with recruitment and development of managers and their maintenance in a high spirit It entails management manpower planning with a view to recruiting and training executives. Also, it calls for the satisfaction of managerial wants through the provision of individual motivation and the introduction of self-control on the part of mangers. Management manpower planning involves an estimate of the present and future requirements of executive positions in the enterprise. The demand for mangers has steadily grown in all progressive and expanding enterprises during the past several decades. In addition to this demand, existing managers require constant replenishment because of their retirement, resignation, death or oven dismisal in some cases. Accordingly, management manpower planning must be undertaken on a continuous basis. But without studying the organisation structure and its job requirements, the managerial positions can neither be planned nor filled. To make an effective manpower planning, organisation planning must begone through to find out the exact time when a certain number and type of managerial personnel are required in the enterprise. HUMAN RESOURCE PLANNING/MANPOWER PLANNING Def. of human resource planning Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. From human resource planning the organization identifies how many people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken. Process of HRP/MP//steps in HRP/MP Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. The process of HRP involves various steps they can be explained with the help of the following diagram.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

Human resource planning

Personal requirement Forecast

Personal supply forecast

Comparison

Differences

Yes

No Requirement = supply Personnel (100=75) Shortage Overtime Recruitment/hiring Subcontracting

Personnel (100=125) Surplus Layoff Termination VRS

1. Personnel requirement forecast :This is the very first step in HRP process. Here the HRP department finds out department wise requirements of people for the company. The requirement consists of number of people required as well as qualification they must posses. 2. Personnel supply forecast :In this step, HR department finds out how many people are actually available in the departments of the company. The supply involves/includes number of people along with their qualification. 3. Comparison:Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison a. No difference :It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required. b. Yes, there is a difference :There may be difference between supply and requirement. The

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow difference may be i. Personnel surplus ii. Personnel shortage 4. Personnel surplus :When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of i. Layoff ii. Termination iii. VRS/CRS 5. Personnel shortage :When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can adopt methods like Overtime, Recruitment, Subcontracting to obtain new employee Advantages of HRP/need/importance/role/benefits Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows. 1. Anticipating future requirement :Through this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future. 2. Recruitment and selection process :The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not. 3. Placement of personnel :Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant. 4. Performance appraisal :HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process. 5. Promotion opportunity :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner. Limitations of human resource planning Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. Although HRP is a very advantageous method it has some limitations which can be explained as follows 1. The future is uncertain :The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it. 2. Conservative attitude of top management :Much top management adopts a conservative attitude and is not ready to make changes. The process of HRP involves either appointing. Therefore it becomes very difficult to implement HRP in organization because top management does not support the decisions of other department. 3. Problem of surplus staff :HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company. 4. Time consuming activity :HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time. 5. Expensive process :The solution provided by process of HRP incurs expense E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive. Reasons for increased importance for HRP/Factors affecting HRP in the organization. Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management. 1. Employment :HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from government to appoint more people. Similarly some company may force shortage of skilled labour and they may have to appoint people from other countries.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 2. Technical changes in the society :Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new people. 3. Organizational changes :Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation. 4. Demographic changes :Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company. 5. Shortage of skill due to labour turnover :Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented. 6. Multicultural workforce :Workers from different countries travel to other countries in search of job. When a company plans its HRP it needs to take into account this factor also. 7. Pressure groups :Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult. Definition of VRS VRS refers to voluntary retirement scheme, when company faces the problem of surplus labour, they have to remove the extra workers. This needs to be done to avoid increase in cost. One of the methods used by the companies is the methods used by companies is the VRS scheme.Under this scheme people have put in 20 or more number of years of service are given an option to opt for early retirement benefits and some other amount which is due to them are paid when they leave the company. JOB ANALYSIS, JOB DESIGN, JOB EVALUATION Define job analysis A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. It can be explained with the help of the following diagram Job analysis

Job description

Job specification

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Job title/ name of the job Working hours Duties and responsibilities Working conditions Salary and incentives Machines to be handled on the job Qualification Qualities Experience Family background Training Interpersonal skills

As mentioned in the above table job analysis is divided into 2 parts a) Job description -where the details regarding the job are given. b) Job specification -where we explain the qualities required by people applying for the job.

Need/importance/purpose/benefits of job analysis Def: - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. The following are the benefits of job analysis. 1. Organizational structure and design :Job analysis helps the organization to make suitable changes in the organizational structure, so that it matches the needs and requirements of the organization. Duties are either added or deleted from the job. 2. Recruitment and selection :Job analysis helps to plan for the future human resource. It helps to recruit and select the right kind of people. It provides information necessary to select the right person. 3. Performance appraisal and training/development :Based on the job requirements identified in the job analysis, the company decides a training program. Training is given in those areas which will help to improve the performance on the job. Similarly when appraisal is conducted we check whether the employee is able to work in a manner in which we require him to do the job. 4. Job evaluation :Job evaluation refers to studying in detail the job performance by all individual. The difficulty levels, skills required and on that basis the salary is fixed. Information regarding qualities required, skilled levels, difficulty levels are obtained from job analysis. 5. Promotions and transfer :When we give a promotion to an employee we need to promote him on the basis of the skill and talent required for the future job. Similarly when we transfer an employee to another branch the job must be very similar to what he has done before. To take these decisions we collect information from job analysis. 6. Career path planning :Many companies have not taken up career planning for their employees. This is done to prevent the employee from leaving the company. When we plan the future career

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow of the employee, information will be collected from job analysis. Hence job analysis becomes important or advantageous. 7. Labour relations :When companies plan to add extra duties or delete certain duties from a job, they require the help of job analysis, when this activity is systematically done using job analysis the number of problems with union members reduce and labour relations improve. 8. Health and safety :Most companies prepare their own health and safety, plans and programs based on job analysis. From the job analysis company identifies the risk factor on the job and based on the risk factor safety equipments are provided. 9. Acceptance of job offer :When a person is given an offer/appointment letter the duties to be performed by him are clearly mentioned in it, this information is collected from job analysis, which is why job analysis becomes important.

Methods of job analysis Def: - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. There are different methods used by organization to collect information and conduct the job analysis. These methods are 1. Personal observation :In this method the observer actually observes the concerned worker. He makes a list of all the duties performed by the worker and the qualities required to perform those duties based on the information collected, job analysis is prepared. 2. Actual performance of the job :In this method the observer who is in charge of preparing the job analysis actually does the work himself. This gives him an idea of the skill required, the difficulty level of the job, the efforts required etc. 3. Interview method :In this method an interview of the employee is conducted. A group of experts conduct the interview. They ask questions about the job, skilled levels, and difficulty levels. They question and cross question and collect information and based on this information job analysis is prepared. 4. Critical incident method :In this method the employee is asked to write one or more critical incident that has taken place on the job. The incident will give an idea about the problem, how it was handled, qualities required and difficulty levels etc. critical incident method gives an idea about the job and its importance. (a critical means important and incident means anything which takes place in the job) 5. Questionnaire method :In this method a questionnaire is provided to the employee and they are asked to answer the questions in it. The questions may be multiple choice questions or open ended

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow questions. The questions decide how exactly the job analysis will be done. The method is effective because people would think twice before putting anything in writing. 6. Log records :Companies can ask employees to maintain log records and job analysis can be done on the basis of information collected from the log record. A log record is a book in which employees record /write all the activities performed by them on the job. The records are extensive as well as exhausted in nature and provide a fair idea about the duties and responsibilities in any job. 7. HRD records :Records of every employee are maintained by HR department. The record contain details about educational qualification, name of the job, number of years of experience, duties handled, any mistakes committed in the past and actions taken, number of promotions received, area of work, core competency area, etc. based on these records job analysis can be done.

Job design Definitions: - (2marks) Job design is the process of a) Deciding the contents of the job. b) Deciding methods to carry out the job. c) Deciding the relationship which exists in the organization. Job analysis helps to develop job design and job design matches the requirements of the job with the human qualities required to do the job. Factors affecting job design: - There are various factors which affect job design in the company. They can be explained with the help of diagram.

Factors affecting job design

Organizational factors

Behavioral factors

Environmental factors

Task characteristics Process or flow of work Ergonomics Work practices

Feed back Autonomy Variety

Employee availability and ability Social and cultural expectations

I] Organizational factors :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Organizational factors to refer to factors inside the organization which affect job design they are a) Task characteristics :Task characteristics refer to features of the job that is depending on the type of job and the duties involved in it the organization will decide, how the job design must be done. Incase the company is not in a position to appoint many people; a single job may have many duties and vice versa. b) The process or flow of work in the organization :There is a certain order in which jobs are performed in the company. Incase the company wishes it could combine similar job and give it to one person this can be done if all the jobs come one after the other in a sequence. c) Ergonomics:Ergonomics refers to matching the job with physical ability and characteristics of the individual and in providing an office environment which will help the person to complete the jobs faster and in a comfortable manner. d) Work practices :Every organization has different work practices. Although the job may be the same the method of doing the job differs from company to company. This is called work practice and it affects job design. II] Environmental factors :Environmental factors which affect job design are as follows a) Employee availability and ability :Certain countries face the problem of lack of skilled labour. They are not able to get employees with specific education levels for jobs and have to depend on other countries due to this job design gets affected. b) Social and cultural expectations :The social and cultural conditions of every country is different so when an MNC appoints an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc. to suit the Indian conditions. This applies to every country and therefore job design will change accordingly. III] Behavioral factors :Job design is affected by behavioral factors also. These factors are a) Feedback :Job design is normally prepared on the basis of job analysis and job analysis requires employee feedback based on this employee feedback all other activities take place. Many employees are however not interested in providing a true feedback because of fear and insecurity. This in turn affects job deign. b) Autonomy :Every worker desires a certain level of freedom to his job effectively. This is called autonomy. Thus when we prepare a job design we must see to it that certain amount of autonomy is provided to the worker so that he carries his job effectively. c) Variety :When the same job is repeated again and again it leads to burden and monotony. This leads to lack of interest and carelessness on the job. Therefore, while preparing job design certain amount of variety must be provided to keep the person interested in the job.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Methods of job design There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows I. Job rotation II. Job enlargement III. Job enrichment Job Rotation :Job rotation involves shifting a person from one job to another, so that he is able to understand and learn what each job involves. The company tracks his performance on every job and decides whether he can perform the job in an ideal manner. Based on this he is finally given a particular posting. Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to the marketing department whole he learns all the jobs to be performed for marketing at his level in the organization .after this he is shifted to the sales department and to the finance department and so on. He is finally placed in the department in which he shows the best performance Job rotation gives an idea about the jobs to be performed at every level. Once a person is able to understand this he is in a better understanding of the working of organization Advantages of job rotation 1. Avoids monopoly :Job rotation helps to avoid monopoly of job and enable the employee to learn new things and therefore enjoy his job 2. Provides an opportunity to broaden ones knowledge :Due to job rotation the person is able to learn different job in the organization this broadens his knowledge. 3. Avoiding fraudulent practice :In an organization like bank jobs rotation is undertaken to prevent employees from doing any kind of fraud i.e. if a person is handling a particular job for a very long time he will be able to find loopholes in the system and use them for his benefit and indulge ( participate ) in fraudulent practices job rotation avoids this. Disadvantages of Job Rotation 1. Frequent interruption :Job rotation results in frequent interruption of work .A person who is doing a particular job and get it comfortable suddenly finds himself shifted to another job or department .this interrupts the work in both the departments. 2. Reduces uniformity in quality :Quality of work done by a trained worker is different from that of a new worker .when a new worker I shifted or rotated in the department, he takes time to learn the new job, makes mistakes in the process and affects the

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow quality of the job. 3. Misunderstanding with the union member :Sometimes job rotation may lead to misunderstanding with members of the union. The union might think that employees are being harassed and more work is being taken from them. In reality this is not the case. Job enlargement There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows I. Job rotation II. Job enlargement III. Job enrichment Job enlargement is another method of job design when any organization wishes to adopt proper job design it can opt for job enlargement. Job enlargement involves combining various activities at the same level in the organization and adding them to the existing job. It increases the scope of the job. It is also called the horizontal expansion of job activities. Job enlargement can be explained with the help of the following example - If Mr. A is working as an executive with a company and is currently performing 3 activities on his job after job enlargement or through job enlargement we add 4 more activities to the existing job so now Mr. A performs 7 activities on the job. It must be noted that the new activities which have been added should belong to the same hierarchy level in the organization. By job enlargement we provide a greater variety of activities to the individual so that we are in a position to increase the interest of the job and make maximum use of employees skill. Job enlargement is also essential when policies like VRS are implemented in the company. Advantages of job enlargement 1. Variety of skills :Job enlargement helps the organization to improve and increase the skills of the employee due to organization as well as the individual benefit. 2. Improves earning capacity :Due to job enlargement the person learns many new activities. When such people apply foe jobs to other companies they can bargain for more salary. 3. Wide range of activities :Job enlargement provides wide range of activities for employees. Since a single employee handles multiple activities the company can try and reduce the number of employees. This reduces the salary bill for the company. Disadvantages of job enlargement 1. Increases work burden :Job enlargement increases the work of the employee and not every company provides incentives and extra salary for extra work. Therefore the efforts of the individual may remain unrecognized. 2. Increasing frustration of the employee :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow In many cases employees end up being frustrated because increased activities do not result in increased salaries. 3. Problem with union members :Many union members may misunderstand job enlargement as exploitation of worker and may take objection to it.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

Job enrichment There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out. These methods are as follows I. Job rotation II. Job enlargement III. Job enrichment Job enrichment is a term given by Fredric Herzberg. According to him a few motivators are added to a job to make it more rewarding, challenging and interesting. According to Herzberg the motivating factors enrich the job and improve performance. In other words we can say that job enrichment is a method of adding some motivating factors to an existing job to make it more interesting. The motivating factors can be a) Giving more freedom. b) Encouraging participation. c) Giving employees the freedom to select the method of working. d) Allowing employees to select the place at which they would like to work. e) Allowing workers to select the tools that they require on the job. f) Allowing workers to decide the layout of plant or office. Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the employees. Advantages of job enrichment 1. Interesting and challenging job :When a certain amount of power is given to employees it makes the job more challenging for them, we can say that job enrichment is a method of employee empowerment. 2. Improves decision making :Through job enrichment we can improve the decision making ability of the employee by asking him to decide on factory layout, method and style of working. 3. Identifies future managerial caliber :When we provide decision making opportunities to employees, we can identify which employee is better that other in decision making and mark employees for future promotion. 4. Identifies higher order needs of employees :This method identifies higher order needs of the employee. Abraham Maslows theory of motivation speaks of these higher order needs e.g. ego and esteemed needs, self actualization etc. These needs can be achieved through job enrichment. 5. Reduces work load of superiors :Job enrichment reduces the work load of senior staff. When decisions are taken by juniors the seniors work load is reduced.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Disadvantages of job enrichment 1. Job enrichment is based on the assumptions that workers have complete knowledge to take decisions and they have the right attitude. In reality this might not be the case due to which there can be problems in working. 2. Job enrichment has negative implications ie. Along with usual work decision making work is also given to the employees and not many may be comfortable with this. 3. Superiors may feel that power is being taken away from them and given to the juniors. This might lead to ego problems. 4. This method will only work in certain situations. Some jobs already give a lot of freedom and responsibility; this method will not work for such jobs. 5. Some people are internally dissatisfied with the organization. For such people no amount of job enrichment can solve the problem.

JOB EVALUATION Defn : Job evaluation is defined as a procedure for determining the worth of the job and to determine the level of compensation for the job The objective of job evaluation is 1.to provide a standard procedure for fixing salary job evaluation aims to provide a standard procedure for fixing salary of employees doing a particular job and belonging to a particular level in the organization . This is required so that the employee is remunerated according to his capabilities and therefore feels satisfied on the job 2. to determine the rate of pay: Job evaluation determines how much to pay the employee according to his efforts in the organization . the rate of pay is decided by looking into various factors on the job . 3. to ensure that wages and salaries are paid according to the qualification and work Job evaluation recognizes the importance of qualification of the employee and the efforts put in by him on the job and decides the salary based on these factors. This ensures that the employees are judged on similar factors and there is no bias. 4. to decide salary using scientific methods of evaluation: The job evaluation methods are scientific in nature, i.e they have been decided after looking into the issues concerned with a scientific approach. Thus it is obvious that the results too will be very much appropriate. Job evaluation is not based on personal bias or personal choice. 5. Involves a fair study of the job factors to avoid ambiguity Job evaluation studies the job factors in a fair and just manner so that ambiguity can be avoided and the factors for judging the job are very clear and accurate. This gives more credibility to the entire job evaluation process Advantages of Job Evaluation 1. Job evaluation is a very logical method which uses common factors to decide the salary therefore there is no inequality

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 2. new jobs are adjusted in the existing structure. They are added to the old jobs and evaluated on the same factors 3. There is greater simplification and uniformity in Job evaluation Disadvantages of Job evaluation 1. The job factors fluctuate and evaluation on these factors does not reflect the true value in future 2. Job evaluation creates doubts and fear in the minds of the employees. They feel that their efforts may not be evaluated properly 3. Job evaluation program/procedures takes a long time to be installed . It requires specialized study by technical personnel so that it is accurate . Any evaluation for namesake will not do. Methods/Types of Job evaluation: There are various types of Job evaluation. They can be shown with the help of the following diagram

JOB EVALUATION

Analytical methods 1. Point ranking mehtod 2. factor comparison method

non- analytical methods 1. Ranking method 2. job grading method

non- conventional methods

I NON- ANALYTICAL METHODS These methods do not use detailed job factors. Every job is determined as a whole in determining its relative ranking. This non-analytical methods includes two types A] ranking method B] job grading method Ranking method : This is the most inexpensive and the simplest methods of evaluation . The evaluation committee assess the worth of each job on the basis of its title or its contents , if the contents are available. Each job is compared with others and its place is determined. The method has several drawbacks Job evaluation may be subjective as the jobs are not broken into factors. Its difficult to measure entire jobs. Job-grading method: It is also called job classification method. Like the ranking method this method also does not call for a detailed or quantitative analysis of job factors. It is based on the entire job. The difference between the ranking method and this method is that this method uses job classes or grades to decide the salary. The number of grades is decided first and factors

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow corresponding to the grades are decided later. Facts and information about the job are collected and matched with the grades. The advantages are it is simple and inexpensive, the companies where the number of jobs is small can use this method. The disadvantages are job description is not very clear, it becomes difficult to convince an employee as to why a particular job is put in a particular grade, the same schedule cannot be used for all jobs II ANALYTICAL METHODS: This includes the point ranking and the factor comparison method. These methods can be explained as follows: A] Point ranking method: This method starts with the selection of job factors, construction of degrees for each factor and assignment of points to each degree. Different factors are selected for different jobs and every job has different degrees and different points The advantages are 1. a job is split into a number of factors. The worth of each job is determined on the basis of each factor 2. The procedure adopted is systematic and can be easily explained to the employee 3. the method is simple to understand and easy to administer Atleast two defects are noted in this method 1. Employees may not agree with the points allotted or the factors selected 2. serious doubts are expresses about the point system and how it is assigned to the factors B] factor comparison method: This method is yet another approach to job evaluation. It is an analytical method. The method is started by selecting factors usually 5 factors are selected i] mental requirement ii] skill requirement iii] physical exertion iv] responsibility v] job condition These factors are assumed to be constant for all jobs. Each factor is ranked individually with the other jobs. For ex: A managers job will have more mental requirement than physical exertion. So mental requirements will have a higher rank. The total point values are assigned to each factor. The worth of the job is obtained by adding together the point value. The advantages of this method is that jobs which are different in nature are evaluated with the same set of factors but the method is complicated when applied on a large scale.

RECRUITMENT SELECTION AND INDUCTION

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Define recruitment Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs. Objectives of recruitment Recruitment fulfills the following objectives 1. It reviews the list of objectives of the company and tries to achieve them by promoting the company in the minds of public 2. It forecasts how many people will be required in the company. 3. It enables the company to advertise itself and attract talented people. 4. It provides different opportunities to procure human resource. Methods of recruitment/sources Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs. Companies can adopt different methods of recruitment for selecting people in the company. These methods are 1. Internal sources 2. External sources The sources can be further explained with the help of following diagram Sources of recruitment (manpower supply)

Internal source Promotion Departmental exam Transfer Retirement Internal advertisement Employee recommendation

External sources Management consultant Employment agency Campus recruitment News paper advertisement Internet advertisement Walk in interview

Internal sources of recruitment :Internal sources of recruitment refer to obtaining people for job from inside the company. There are different methods of internal recruitment 1. Promotion :Companies can give promotion to existing employees. This method of recruitment saves a lot of time, money and efforts because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers. 2. Departmental exam :This method is used by government departments to select employees for higher level posts. The advertisement is put up on the notice board of the department. People who are interested must send their application to the HR department and appear for the exam. Successful candidates are given the

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow higher level job. The method ensures proper selection and impartiality. 3. Transfer :Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of people. 4. Retirement :Many companies call back personnel who have already retired from the organization. This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired when he is called back and helps the organization to reduce recruitment selection and training cost. 5. Internal advertisement :In this method vacancies in a particular branch are advertised in the notice board. People who are interested are asked to apply for the job. The method helps in obtaining people who are ready to shift to another branch of the same company and it is also beneficial to people who want to shift to another branch. 6. Employee recommendation :In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the situation. The company is benefited because it will obtain. Advantages of internal recruitment 1. Internal methods are time saving. 2. No separate induction program is required. 3. The method increases loyalty and reduces labour turnover. 4. This method is less expensive. Disadvantages of internal recruitment 1. There is no opportunity to get new talent in this method. 2. The method involves selecting people from those available in the company so there is limited scope for selection. 3. There are chances of biased and partiality. 4. Chances of employee discontent are very high. External methods/sources of recruitment External sources of recruitment refer to methods of recruitment to obtain people from outside the company. These methods are 1. Management consultant :Management consultant helps the company by providing them with managerial personnel, when the company is on the look out for entry level management trainees and middle level managers. They generally approach management consultants. 2. Employment agencies :Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle level staff.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 3. Campus recruitment :When companies are in search of fresh graduates or new talent they opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the company and the job and invite applications. Interested candidates who have applied are made to go through a series of selection test and interview before final selection. 4. News paper advertisement :This is one of the oldest and most popular methods of recruitment. Advertisements for the job are given in leading newspapers; the details of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a specified time limit. The method has maximum reach and most preferred among all other methods of recruitment. 5. Internet advertisement :With increasing importance to internet, companies and candidates have started using the internet as medium of advertisement and search for jobs. There are various job sites like naukri.com and monster.com etc. candidates can also post their profiles on these sites. This method is growing in popularity. 6. Walk in interview :Another method of recruitment which is gaining importance is the walk in interview method. An advertisement about the location and time of walk in interview is given in the news paper. Candidates require to directly appearing for the interview and have to bring a copy of their C.V. with them. This method is very popular among B.P.O and call centers. Advantages of external recruitment 1. There is influx of new talent in the method. 2. The method encourages more and more competition. 3. There is lesser chance of partiality through this method. 4. If options like campus recruitment have been exercised we get a chance to employ fresh graduates, thus increasing employment. Disadvantages of external recruitment 1. The method is costly because it involves recruitment cost, selection, training cost. 2. The method is time consuming. 3. The method reduces loyalty to the company. Selection Define selection :right job.

Selection can be defined as process of choosing the right person for the

Process of selection :The process of selection is different in different companies; however a general procedure of selection can be framed. This process of selection can be explained with the help of following diagram

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Process of selection Job analysis Advertisement Application blank/form Written test Interview Medical examination Initial job offer Acceptance/rejection letter Final offer/letter of appointment Induction 1. Job analysis :The very first step in the selection procedure is the job analysis. The HR department prepares the job description and specification for the jobs which are vacant. This gives details for the jobs which are vacant. This gives details about the name of the job, qualification, qualities required and work conditions etc. 2. Advertisement :Based on the information collected in step 1, the HR department prepares an advertisement and publishes it in a leading news papers. The advertisement conveys details about the last date for application, the address to which the application must be sent etc. 3. Application blank/form :Application blank is the application form to be filled by the candidate when he applies for a job in the company. The application blank collects information consisting of 4 parts- 1) Personal details 2) Educational details 3) Work experience 4) Family background. 4. Written test :The application which have been received are screened by the HR department and those applications which are incomplete are rejected. The other candidates are called for the written test. Arrangement for the written test is looked after the HR department i.e. question papers, answer papers, examination centers and hall tickets etc. 5. Interview :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Candidates who have successfully cleared the test are called for an interview. The entire responsibility for conducting the interview lies with the HR department i.e. they look after the panel of interviewers, refreshments, informing candidates etc. 6. Medical examination :The candidates who have successfully cleared the interview are asked to take a medical exam. This medical exam may be conducted by the organization itself (army). The organization may have a tie up with the hospital or the candidate may be asked to get a certificate from his family doctor. 7. Initial job offer :Candidates who successfully clear the medical exam are given an initial job offer by the company stating the details regarding salary, terms of employment, employment bond if any etc. The candidate is given some time to think over the offer and to accept or reject the offer. 8. Acceptance/ rejection :Candidates who are happy with the offer send their acceptance within a specified time limit to show that they are ready to work with the company. 9. Letter of appointment/final job offer :Candidates who send their acceptance are given the letter of appointment. letter will state the name of the job. The salary and other benefits, number of medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on which the employee is required to start duty in the company. 10. Induction :On the date of joining the employee is introduced to the company and other employees through am elaborate induction program.

The

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Types of selection test Different selection test are adopted by different organization depending upon their requirements. These tests are specialized test which have been scientifically tested and hence they are also known as scientific test. Different types of test can be explained with the help of following diagram, Types of selection test

Aptitude test 1.Mental ability/ Intelligence test 2.Medical aptitude test 3. Psycho motor test

Intelligence test

Personality

Performance test test

I. Aptitude test :Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical. The different types of aptitude test are a. Mental ability/mental intelligence test :This test is used to measure the over all intelligence and intellectual ability of the candidate to deal with problems. It judges decision making abilities. b. Mechanical aptitude test :This test deals with the ability of the candidate to do mechanical work. It is used to judge and measure the specialized knowledge and problem solving ability. It is used for technical and maintenance staff. c. Psycho motor test :This test judges the motor skills the hand and eye co-ordination and evaluates the ability to do jobs like packing, quality testing, quality inspection etc. II. Intelligence test :This test measures the numerical skills and reasoning abilities of the candidates. Such abilities become important in decision making. The test consists of logical reasoning ability, data interpretation, comprehension skills and basic language skills. III. Personality test :In this test the emotional ability or the emotional quotient is tested. This test judges the ability to work in a group, inter personal skills,ability to understand and handle conflicts and judge motivation levels. This test is becoming very

the

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow popular now days. IV. Performance test :This test judges and evaluates the acquired knowledge and experience of the knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to test performance of typist, data entry operators etc. Induction (Induction = orientation) Induction can be defined as a process of introducing the employee who is newly elected to the organization. When an employee is given a letter of appointment he joins the company on duty. The very first thing that the company does is, introduces the new employee to the organization and people working there. An induction program may be conducted at a particular center for all employees or at different places (branches of the company) for different employees. Normally the new employee is called together to the staff training college for the induction program. The induction starts with an introduction session about the company, number of branches, a brief history of the company, number of products, number of countries operating in, organizational structure, culture, values, beliefs, the names of top management personnel etc. Apart from this introductory secession there will be other sessions also like sessions on behavioral science, soft skill training, sessions on giving details about the job, salary, bonus, information about different leaves that can be taken by the employee about upward mobility in the organization etc. There are different ways in which sessions can be conducted i.e. using lecture method, power point presentation, group discussion, psychological test, roll play secessions etc. The induction program concludes with the employee reporting for duty at his respective branch after induction. When he reports for duty the senior most people in the branch takes the new employee around the office and introduces to all other employees and gives information about the working of the branch. The senior people regularly stay in touch with the new employee in the first week so that he can make the new employee comfortable and help him to adjust to the company. After this the company may start a training program for the new employee. Define placement: Companies conduct recruitment and selection and finally select employees. The employees undergo an induction program. After the induction program is over the employee is given a specific job in the company. This is called placement.

APPLICATION BLANK Application blank is the application form of the company which must be filled by the candidate when he applies for a job. Application blank gives information to the company

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow about the prospective candidate. The information collected relates to personal details, educational qualification, work experience, family background etc. The personal details about the candidate include name , age, gender, date of birth, photograph for identification, residential address etc. Details regarding educational qualification include the name of the degree obtained, the name of the university, subject studied, marks obtained and the year of passing. Information about educational qualification is required by the company starting from matriculation exam to the latest degree obtained. Any additional qualification obtained must also be mentioned. In case of details about work experience information about the name of the company in which the candidate has previously worked, number of years of experience , the designation held and the reasons for leaving the job are required. Apart from these details the application blank also collects information about the family background of the person i.e the number of persons in the family, their age and occupation , the number of dependent members, the annual family income etc.

A proforma of the application blank helps to further explain the concept of application blank and can be seen below

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

STATE BANK OF INDIA

APPLICATION FOR THE POST OF __________________________ PLEASE AFFIX PASSPORT SIZE PHOTO

NAME :____________________________________________ ____________________________________________ AGE ________ DATE OF BIRTH ____________ M/F_____ RESIDENTIAL ADDRESS

EDUCATIONAL QUALIFICATION: DEGREE YEAR OF PASSING NAME OF UNIV % OBTAINED

(give information starting from matriculation onwards) ADDITIONAL QUALIFICATION: DIPLOMA/ DEGREE NAME OF INSTITUTE YEAR OF PASSING % OBTAINED

WORK EXPERIENCE: NAME OF POST DATE OF COMPANY HELD JOINING

DATE OF NO OF REASON FOR LEAVING YEARS LEAVING

FAMILY DETAILS: MARRIED/ SINGLE/ DIVORCED/ WIDOW(ER)______ NAME OF FAMILY MEMBER RELATION AGE OCCUPATION

CONTINUED

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow ANNUAL FAMILY INCOME:___________________________________

I HEREBY DECLARE THAT THE ABOVE GIVEN INFORMATION IS TRUE . ANY DISCREPANCY IN THE ABOVE INFORMATION CAN LEAD TO LEGAL ACTION AGAINST ME .

PLACE: DATE :

SIGNATURE OF CANDIDATE

HEADHUNTING Headhunting refers to the activity of selection of senior level personnel like Board of Directors, very senior level mangers of the co, etc.Head hunting originally meant hunting for the prized person and was undertaken by tribes . The same word has been adapted to management because in this case the prized person is the member of the top level management Head hunting is different from the normal selection process. In case of headhunting the process of selection is handed over to agencies which specialize in this activity. The company which requires top management personnel gives its requirements to the concerned agency, - i.e the qualities required ,the type of job to be done. , the responsibilities to be handled, the desired profile etc .The agency now tries to find suitable candidates who may be employed in other companies. This is done in a discrete and unobstructive manner. It is not publicized. The agency selects 4 or 5 people who it feels are suited for the job and recommends them to the company. The company in turn interviews all of them , talks to them about the current conditions , what is expected of them , their salary package is negotiated and finally the company selects a person required by them. This selection method is different and is not publicized as in case of lower and middle level management positions. TRAINING AND DEVELOPMENT Define training/development/managerial development/executive development /mdp/edp :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program. OBJECTIVES/PURPOSE/GOALS OF TRAINING AND DEVELOPMENT Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. The purpose of training and development can be explained as follows. 1. Improving quality of work force :Training and development help companies to improve the quality of work done by their employees. Training programs concentrate on specific areas. There by improving the quality of work in that area. 2. Enhance employee growth :Every employee who takes development program becomes better at his job. Training provides perfection and required practice, therefore employees are able to develop them professionally. 3. Prevents obsolescence :Through training and development the employee is up to date with new technology and does not fear when old technology is replaced with new technology and the fear of being thrown out of the job is reduced. 4. Assisting new comers :Training and development programs greatly help new employees to get accustomed to new methods of working, new technology, the work culture of the company etc .It helps them to gain confidence in themselves. 5. Bridging the gap between planning and implementation :Plans made by companies expect people to achieve certain targets within certain time limit with certain quality. For this employee performance has to be accurate and perfect. Training helps in achieving accuracy and perfection. 6. Health and safety measures :Training and development program clearly identifies and teaches employees about the different risk involved in their job, the different problems that can arise and how to prevent such problems. This helps to improve the health and safety measures in the company. METHODS OF TRAINING OPERATING PERSONNEL/FACTORY WORKERS Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. There are different methods of training for operating personnel (factory workers). Training these workers becomes important because they handle equipment worth crores of rupees. The different methods can be explained with the help of following diagram.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Methods of training operating personnel

On the job method

Apprenticeship method

Vestibule method

Job rotation method

Classroom method

1. On the job training method :In this method workers who have to be trained are taken to the factory, divided into groups and one superior is allotted to every group. This superior or supervisor first demonstrates how the equipment must be handled, and then the worker is asked to repeat whatever he has observed in the presence of the supervisor. This method makes it easy for the employee to learn the details about specific equipment. Once the worker studies the first equipment thoroughly the supervisor moves on to the next equipment and so on. 2. Apprenticeship training :In this method both theory and practical session are conducted. The employee is paid a stipend until he completes training. The theory sessions give theoretical information about the plant layout, the different machines, their parts and safety measures etc. The practical sessions give practical training in handling the equipment. The apprentice may or may not be continued on the job after training. 3. Vestibule training :In this method of training an atmosphere which is very similar to the real job atmosphere is created. The surroundings, equipment, noise level will be similar to the real situation. When an employee is trained under such conditions he gets an idea about what the real job situation will be like. Similarly when he actually starts doing the job he will not feel out of place. This method is used to train pilots and astronauts. In some places graphics are also used to create the artificial surroundings. This method involves heavy investment. 4. Job rotation :In this method the person is transferred from one equipment to the other for a fixed amount of time until he is comfortable with all the equipments. At the end of the training the employee becomes comfortable with all the equipment. He is then assigned a specific task. 5. Classroom method :In this method the training is given in the classroom. Video clippings, slides, c charts, diagrams and artificial models etc are used to give training.

Methods of training for managers/ methods of development / managerial development/executive development

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. Various methods are used to train personnel for managerial level jobs in the company. These methods can be explained with the help of following diagram. Methods of training managers

On the job training Job rotation Planned progression Coaching and counseling Under study Junior boards

Off the job training Classroom method Simulation Business games Committees Conferences Readings In-basket training

ON THE JOB METHOD :- On the job method refers to training given to personnel inside the company. There are different methods of on the job training. 1. Job rotation This method enables the company to train managerial personnel in departmental work. They are taught everything about the department. Starting from the lowest level job in the department to the highest level job. This helps when the person takes over as a manager and is required to check whether his juniors are doing the job properly or not. Every minute detail is studied. 2. Planned progression :In this method juniors are assigned a certain job of their senior in addition to their own job. The method allows the employee to slowly learn the job of his senior so that when he is promoted to his seniors job it becomes very easy for him to adjust to the new situation. It also provides a chance to learn higher level jobs. 3. Coaching and counseling :Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually teaches his junior regarding how the work must be handled and how decisions must be taken, the different techniques that can be used on the job, how to handle pressure. There is active participation from the senior. Counseling refers to advising the junior employee as and when he faces problems. The counselor superior plays an advisory role and does not actively teach employees. 4. Under study :In this method of training a junior is deputed to work under a senior. He takes orders from the senior, observes the senior, attends meetings with him, learns about decision making and handling of day to day problems. The method

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow is used when the senior is on the verge of retirement and the job will be taken over by the junior. 5. Junior board :In this method a group of junior level managers are identified and they work t together in a group called junior board. They function just like the board of directors. They identify certain problems, they study the problem and provide suggestions. This method improves team work and decision making ability. It gives an idea about the intensity of problem faced by the company. Only promising and capable junior level managers are selected for this method. OFF THE JOB TRAINING METHOD :- Off the job training refers to method of training given outside the company. The different methods adopted here are 1. Classroom method :The classroom method is used when a group of managers have to be trained in theoretical aspects. The training involves using lectures, audio visuals, case study, role play method, group discussions etc. The method is interactive and provides very good results. 2. Simulation :Simulation involves creating an atmosphere which is very similar to the original work environment. The method helps to train managers in handling stress, taking immediate decisions, handling pressure on the jobs etc. An actual feel of the real job environment is given here. 3. Business games :This method involves providing a market situation to the trainee manager and asking him to provide solutions. If there are many people to be trained they can be divided into groups and each group becomes a separate team and play against each other. 4. Committee :A committee refers to a group of people who are officially appointed to look into a problem and provide solutions. Trainee managers are put in the committee to identify and study a problem in the organization and to provide suggestions on how they will solve the problem and to explain what they learnt from it. 5. Conference :Conferences are conducted by various companies to have elaborate discussions on specific topics. The company which organizes the conference invites trainee managers from different companies and calls for experts in different fields to give presentations or lectures. The trainee managers can ask their doubts to these experts and understand how problems can be solved on the job. 6. Readings :This method involves encouraging the trainee manager to increase his reading related to his subject and then asking him to make a presentation on what he has learnt. Information can be collected by trainee manager from books, magazines and internet etc. 7. In basket training :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow The method is adopted from the IN and OUT baskets normally found in the managers cabin. In this method the training is given to the manager to handle files coming in and to finish his work and take decisions within a specified time limit. The trainee manager is taught how to prioritize his work, the activities which are important for his job and how to take decisions within limited time. TRAINING PROCEDURE/PROCESS OF TRAINING :Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. Every company has a specific training procedure, depending upon its requirements. A general training procedure is explained below along with diagram

PROCESS/PROCEDURE OF TRAINING Determining training need of employee Select a target group for training Preparing trainers Developing training packages Presentation Performance Follow up 1. Determining training needs of employee :In the very 1st step of training procedure, the HR department, identifies the number of people requiring training, specific area in which they need training, the age group of employee, the level in organization etc. in some cases the employee may be totally new to the organization. Here the general introduction training is required. Some employees may have problems in specific areas; here the training must be specific. This entire information is collected by HR department. 2. Selecting target group :Based on information collected in step 1 the HR department divides employee into groups based on the following. i. Age group of the employee to be trained ii The area in which training is required iii Level of the employee in the organization iv The intensity of training etc. 3. Preparing trainers :-

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Once the employees have been divided into groups, the HR department arranges for trainers. Trainers can be in house trainers or specialized trainers from outside. The trainers are given details by HR department, like number of people in the group, their age, their level in organization, the result desired at the end of training, the area of training, the number of days of training, the training budget, facilities available etc. 4. Preparing training packages :Based on the information provided by trainers, he prepares entire training schedule i.e. number of days, number of sessions for each day, topics to be handled each day, depth of which the subject should be covered, the methodology for each session, the tests to be given foe each session, handout/printed material to be given in each session etc. 5. Presentation :On the first day of training program the trainer introduces himself and specifies the need and objective of the program. This is done so that employees get the right idea about the objectives. He then actually starts the program. The performance of each employee is tracked by the trained and necessary feedback is provided. 6. Performance :At the end of training program the participants reports back to their office or branches. They prepare report on the entire training program and what they have learned. They the start using whatever they have learnt during their training. Their progress and performance is constantly tracked and suitable incentives are given if the participant is able to use whatever he has learnt in training. 7. Follow up :Based on the employee performance, after training, the HR department is able to identify what is exactly wrong with training program and suitable correction is made in the training programmes in the future. EVALUATION OF TRAINING PROGRAM Training is defined by Wayne Cascio as training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably. Effectiveness of training programs are constantly evaluated by the company to find if the money, they have invested has been spent properly or not. Training programs can be evaluated by asking following questions. a) Has change occurred after training? b) Is the change due to training? c) Is the change positive or negative? d) Will the change continue with every training program? A training program should give following resulting changes. 1. Reaction :Reaction refers to attitude of employee about the training, whether the employee considers training to be positive or negative one. If reactions are

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow positive then people have accepted the program and changes will be possible. 2. Learning :Another method of judging effectiveness is to identify levels of learning i.e. how much the people have learnt during the training. This can be found out by trainers mark sheet, the report submitted by the employee, and actual performance. 3. Behavior :The HR department needs to understand behavior of the employees, to understand the effectiveness of training. The behavioral change can be seen in how the person interacts with juniors, peer groups and seniors. They mark change in behavior and inform the HR department of the success of training program. 4. Result :Results provided by employee in monetary terms also determines effectiveness of training program i.e. employee success calculated in monetary terms on handling the project after training, the group performance before and after training etc. Effective training programs must give the following results i. Increase in efficiency of worker ii. Reduction in labour turnover iii. Increase in discipline iv. Reduction in wastage and therefore cost of production v. Proper care of tools and equipments vi. Employee development in career terms vii. Overall efficiency in the company ADVANTAGES OF TRAINING PROGRAMME/ TRAINING A training programme has the following advantages. They are ADVANTAGES OF TRAINING TO THE COMPANY TO THE EMPLOYEE

I ADVANTAGES TO THE COMPANY: 1. Increased efficiency of employees: An effective training programme can make the employees of the company work in an effective manner. With training people gain confidence and this confidence is seen in the output and results. 2. Reduced supervision: An employee needs to be supervised when he works. When the employee has got sufficient training the amount of supervision required is less as mistakes are less. This reduces the workload of the supervisor. 3. Less amount of wastage The amount of wastage by an employee is reduced a lot due to training and therefore if we take an account of the amount of wastage we find that the company has saved a lot of money.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 4. Reduced turnover: Proper training improves chances of obtaining promotions and employees are happy because they have better opportunities Due to this their chances of leaving their current job reduces greatly thereby reducing labour turnover in the company. 5. Helps new employees in the organization: Training always benefits employees whether old or new. In case of new employees, training helps them a lot . This is because new employees may not be aware of the functioning of the organization and training helps them to gain knowledge and insight into the working of the company. 6. Better labour management relations: Labour management relations are very essential for any organization. When companies introduce training programmes and prepare employees for future jobs and promotions they send out a message to the unions that they are interested in employee welfare. Due to this the unions also adopt a positive attitude and labour- management relations improve. II ADVANTAGES TO THE EMPLOYEE: 1. Self-confidence: Training leads to increase in employee self-confidence. The person is able to adjust to his work environment and doesnt feel humiliated in front of his seniors. This confidence leads to chances of better efforts in the future from the employees. 2. Increased motivation levels: Training brings positive attitude among employees and increases the motivation levels of the employees in the organization, thereby improving the results of the organization 3. High rewards: An effective training programme helps an employee to take the benefit of the rewards systems and incentives available in the company . Thus the employee is able to get these rewards , which in turn increases his motivation levels. 4. Group efforts: An effective training programme not only teaches an employee how to do his work but also trains him to work as a part of the group. Thus training programmes improve group efforts 5. Promotion: Effective training programmes increase performance and increase the chances of obtaining promotions. Many employees even opt for certain programmes so that they can help the employee to improve his chances of promotions and obtaining higher positions in the organization.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing 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 employee and also the future potential of the employee. 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 analyze his achievements and evaluate his contribution towards the achievements of the overall organizational 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. 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 organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the 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 organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

Process of Performance Appraisal ESTABLISHING PERFORMANCE STANDARDS: The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. COMMUNICATING THE STANDARDS :Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. MEASURING THE ACTUAL PERFORMANCE: The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE: The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS: The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Pre-requisites for Effective & Successful Performance Appraisa The essentials of an effective performance system are as follows: Documentation means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. Communication Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process. Feedback The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively. Challenges Of Performance Appraisal In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:

Determining the evaluation criteria: Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms Create a rating instrument: The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization. Lack of competence: Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively. Errors in rating and evaluation: Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluators rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees Resistance: The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow communicated and every employee should be made aware that what exactly is expected from him/her.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Purpose of Performance Appraisal Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. Typically, Performance Appraisal is aimed at:

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 organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior subordinates and management employees. The most significant reasons of using Performance appraisal are: Making payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance and its cause 76% Deciding future goals and course of action 42% Promotions, demotions and transfers 49% Other purposes 6% (including job analysis and providing superior support, assistance and counseling).

The Balanced Scorecard To evaluate the organizational and employee performance in Performance appraisal management processes, the conventional approach measures the performance only on a few parameters like the action processes, results achieved or the financial measures etc. The Balanced scorecard an approach given by Kaplan and Norton- provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. Balanced scorecard focuses on the measures that drive performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. The two basic features of the balanced scorecard are: A balanced set of measures based on. the four perspectives of balanced scorecard Linking the measures to Employee Performance The four Perspectives recommended by Kaplan and Norton for the managers to collect information are:

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow The financial measures The financial measures include the results like profits, increase in the market share, return on investments and other economic measures as a result of the actions taken. The customers measures - These measures help to get on customer satisfaction, the customers perspective about the organisation, customer loyalty, acquiring new customers. The data can be collected from the frequency and number of customer complaints, the time taken to deliver the products and services, improvement in quality etc. The internal business measures These are the measures related to the organizations internal processes which help to achieve the customer satisfaction. It includes the infrastructure, the long term and short term goals and objectives, organisational processes and procedures, systems and the human resources. The innovation and learning perspective. The innovation and learning measures cover the organisations ability to learn, innovate and improve. They can be judged by employee skills matrix, key competencies, value added and the revenue per employee. BENEFITS OF BALANCED SCORECARD The benefits of the balanced scorecard approach in measuring performance are: Gives the complete picture of the employee as well as the organisational performance. It guides users in determining the critical success factors and performance indicators. Strategic review or analysis of the organisational capabilities and performance. Focusing the whole organisation on the few key things needed to create breakthrough performance. Integrating and directing the performance and efforts from the lowest levels in the organisation to achieve excellent overall performance.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Techniques Of Performance Appraisal

1. 360 DEGREE PERFORMANCE APPRAISALS 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the on-the-job performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others. Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 2. MANAGEMENT BY OBJECTIVES The concept of Management by Objectives (MBO) was first given by Peter Drucker 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. 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 thus help in the achievement of organizational as well as personal goals. 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 organizational 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.

3. Assessment Centres Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Assessment centers simulate the employees on-the-job environment and facilitate the assessment of their on-the-job performance. An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies and onthe-job behaviour and potential to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. An assessment centre for Performance appraisal of an employee typically includes: Social/Informal Events An assessment centre has a group of participants and also a few assessors which gives a chance to the employees to socialize with a variety of people and also to share information and know more about the organisation. Information Sessions information sessions are also a part of the assessment centres. They provide information to the employees about the organisation, their roles and responsibilities, the activities and the procedures etc. Assignments- assignments in assessment centers include various tests and exercises which are specially designed to assess the competencies and the potential of the employees. These include various interviews, psychometric tests, management games etc. all these assignments are focused at the target job.

The following are the common features of all assessment centers: The final results is based on the pass/fail criteria All the activities are carried out to fill the targeted job. Each session lasts from 1 to 5 days. The results are based on the assessment of the assessors with less emphasis on selfassessment Immediate review or feedbacks are not provided to the employees. An organizations human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. TQM and Performance Appraisal According to Sashkin and Kiser, Total Quality Management (TQM) may be defined as creating an organisational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction. TQM refers to the continuous improvement in the quality of work of all employees with the focus on satisfaction of the customers. Elements of TQM are:

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Meeting customers requirements, Continuous improvement Empowerment of employees. Both TQM and Performance appraisal/ evaluation are focused on increasing the productivity of the organisation through continuous improvement. They both facilitate the systematic management of all the processes, actions and practices at all levels in the organisation. Some of the benefits of both the performance appraisal and TQM are: Improvement in the performance of the employees Brings quality consciousness Better utilization of resources Commitment to higher quality. But there also exists a few other schools of thought which refute the compatibility of the TQM and performance appraisal. According to them, both TQM and Performance appraisals differ in their fundamental nature, characteristics and requirements making it impossible to combine them.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Some fundamental differences between the two are as follows: TQM is team based whereas performance appraisals are designed for individuals i.e. it undermines teamwork. TQM focuses on customer satisfaction whereas performance appraisal focuses on the improving the performance of the employees. Performance appraisal generally results in some rewards like increased pay etc. whereas TQM may or may not yield visible results. Performance appraisal can sometimes, encourage an employee to focus on his personal goals (like his promotion) rather than the organisational goals. Therefore, the suitable practice should be chosen carefully by the top management and the leaders of the organisation.

Performance Appraisal Process Change Management The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become an ongoing part of everyday practice and helps employees to take the responsibility of their work and boosts their professional development. Various studies in the field of human resources have already proved that performance appraisal process can affect the individual performance (in a negative or positive way), thus having an impact on the collective performance. Performance appraisal: An opportunity for an organisational culture shift Performance appraisal process focuses on the goal setting approach throughout the organisation. Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees. The performance appraisal processes have the potential positive effects on recruitment It increases organisational effectiveness i.e. what to do and how to do through a formal and structured approach. Some evidence of the beneficial effects of team rewards Therefore, performance appraisal is also an important link in the process of change in organization culture.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow

DIRECTING
MEANING AND DEFINITION According to G. R. Terry - "Directing means moving to action and supplying simulative power to a group of persons". Thus, the plan is put into operation through the organisation by the process of direction. Another term used to describe this function is "Activating". In the words of G. R. Terry - "Activating means moving into action - supplying simulative power to the group". According to Dale, "Direction is telling people what to do and seeing that they do it to the best of their ability. It is through directing that managers get the work done through people. It consists of: l Issuing orders and instructions by a superior to his subordinates. l Guiding, advising and helping subordinates in the proper methods of work. l Motivating them to achieve goals by providing incentives, good working environment etc. l Supervising subordinates to ensure compliance with plans". To carry out physically the activities resulting from the planning and organising steps, it is necessary for the manager to take measures that will start and continue action as long as they are needed in order to accomplish the task by the members of the group. The process of directing or activating involves: 1. Providing effective leadership 2. Integrating people and tasks and convincing them to assist in the achievement of the overall objectives 3. Effective communication 4. Providing climate for 'subordinate' development Directing represents one of the essential functions of management because it deals with human relations. Once the organisational plans have been laid down, the structure being designed and competent people brought in to fill various positions in organisation, direction starts. Direction phase of management is the heart of management-in action. 3 CHARACTERISTICS OF DIRECTING Directing has the following characteristics features: 1. It is the function of the superior manager and runs from top to down in the organisation structure. A subordinate has to receive instructions for doing his job from his superior. 2. Direction implies issuing orders and instruction. Besides issuing orders and instruction a superior also guides and counsels his subordinates to do his job properly. 3. The top management gives broad direction to the middle level managers who in turn give specific direction to the lower level management. 4. The four important aspects of directing are supervision, motivation, leadership and communication. All these functions are interconnected and mutually dependent.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 4 SCOPE OF DIRECTING The function of directing is concerned with employee orientation, issuing instructions, supervision, motivation, communication and leadership. 1. Employee Orientation: An employee must be properly oriented to the enterprise in which they are working. This orientation is necessary for them to accomplish the objectives of the enterprise. 163 2. Instructions: An instruction is an order or command by a senior directing a Directing subordinate to act or refrain from acting under a given situation. The right to issue orders should be with the superior by virtue of his position. 3. Supervision: In order to see that the work is done according to the instructions the superior must observe the activities of the subordinates. Supervision is done at all levels of management. However, supervision is more important at lower levels. 4. Motivation: One of the most challenging problems for management is to motivate people. Management has to induce the employee to utilise his talent and skill to contribute to the organisational goal. 10.5 IMPORTANCE OF DIRECTION The importance of direction in an organisation can be viewed by the fact that every action is initiated through direction. It is the human element which handles the other resources of the organisation. Each individual in the organisation is related with others and his functioning affects others and, in turn, is affected by others. This makes the functioning of direction all the more important. The importance of the direction function is given below: 1. Direction integrates employees' efforts: The individual efforts needs to be integrated so that the organisation achieves its objectives. No organisational objective can be achieved without the function of direction. 2. Direction initiates action: It is through direction that the management makes individuals function in a particular way to get organisational objectives. 3. Direction gets output from individuals: Every individual in the organisation has some potentials and capabilities which can be properly utilised through the function of direction. 4. Direction facilitates changes: To manage change management must motivate individuals to accept these changes which can be accomplished through motivation. NATURE OF DIRECTION Direction is one of the most important functions of management. A good plan may have been checked out, sound organisation may have been evolved and a sound team of workers may be employed, but all these will not produce any result until there is proper direction of the people in the use of various resources. Direction helps in achieving coordination among various operations of the enterprise. It is only after the performance of direction function that the purpose of planning, organising and staffing is achieved. Directing is the process around which all performance revolves. It is the essence of operation and co-ordination is a necessary by-product of good managerial directing. 1 Pervasiveness of Direction Direction is a pervasive function of management. It exists at every level, location and operation throughout an enterprise. Some people think that only the managers at the lower level who deal directly with the workers, perform the direction function. This point of view is not correct. Direction function must be performed by every manager at different

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow levels of the enterprise. For instance, chief executive of a company interprets the objectives and policies of the company and delegates authority to the departmental managers, the direction function is part and parcel of these activities. Every manager, regardless of the number of subordinates, performs this function because he is busy in giving instructions to the subordinates, guiding them, and motivating them for the achievement of certain goals. 2 Continuing Function Like any other function of management, directing is a continuing activity. A manager never ceases to direct, guide and supervise his subordinates. A manager who issues orders and instructions and thinks his job is complete is committing a very serious error. He must continuously supervise the execution of his orders or instructions by the subordinates. He should also provide them effective leadership and motivation. Thus, he will have to continue to devote considerable time on the direction function.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow PRINCIPLES OF DIRECTION For effective direction, following principles may be used: (i) Principle of leadership: Ability to lead effectively is essential to effective direction. (ii) Principle of informed communication: The management should recognise and utilise informal organisation constructively. (iii) Principle of direct supervision: The manager should supplement objective methods of supervision and control with direct personal supervision to ensure personal contact. (iv) Principle of direct objectives: The manager should communicate effectively and motivate the subordinates for most effective performance. (v) Principle of harmony of objectives: The manager should guide the subordinates so that their individual interest harmonizes with group interests. (vi) Principle of unity of command: For most effective direction, subordinates should be responsible to one superior. (vii) Principle of managerial communication: The manager being the principle medium of communication, should keep lines of communication open. (viii) Principle of comprehension: The communication should ensure that the recipients of the information actually comprehend it. (ix) Principle of direct communication: The direct flow of information is most effective for communications. TYPES OF DIRECTION Directions may be either oral or written. Some of the advantage of written directions are as follows: (i) Written directions are more clear, comprehensive and clarity of thought and better quality of direction maintained. (ii) Written orders are comparatively more intelligible and the chances for misunderstanding and duplication of efforts will be minimised. (iii) The subordinates also get an ample opportunity to study the directive carefully. (iv) It also makes it possible to communicate to all interested parties simultaneously. (v) A written order can be consulted readily to maintain accuracy. (vi) It helps in accountability and smooth carrying out of orders. TECHNIQUES OF DIRECTION 1. Consultative direction: In this method executive consults with his subordinates concerning the feasibility, the workability and the extent and content of a problem before the superior makes a decision and issues a directive. The following advantages are claimed in this type of method: (a) Participation occurs on every level of organisation. (b) Better communication. (c) Least resistance from subordinates, experience and knowledge of subordinate also can be used to arrive at right directives. (d) It induces better motivation and morale. (e) It leads to better co-ordination and effective results. This method has the following disadvantages: (a) It is time consuming. (b) Subordinates may consider it their right and prerogative to be consulted before a directive is given to them by their superiors. (c) Sometimes unnecessary arguments arise leading to wastage of time. 2. Free rein direction: The free rein technique encourages and enables the

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow subordinate to contribute his own initiative, independent thought, drive, perspicacity and ingenuity to the solution of the problem. The free rein technique of direction will probably show the best and quickest results, if the subordinate is highly educated, brilliant young man a sole performer, who has a sincere desire to become a top level manager. Automatic direction: In this method manager gives direct, clear and precise orders to his subordinates, with detailed instructions as how and what is to be done allowing no room for the initiative of the subordinate.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow DEFINITION OF MOTIVATION "Motivation" is a Latin word, meaning "to move". Human motives are internalised goals within individuals. Motivation may be defined as those forces that cause people to behave in certain ways. Motivation encompasses all those pressures and influences that trigger, channel, and sustain human behaviour. Most successful managers have learned to understand the concept of human motivation and are able to use that understanding to achieve higher standards of subordinate work performance. Motivation has been defined by Michael J Juicus as "the act of stimulating someone or oneself to get a desired course of action". In the words of Lewis Allen, "Motivation is the work a manager performs to inspire, encourage and impel people to take required action". According to Dubin, Motivation is, "The complex of forces starting and keeping a person at work in an organization. To put it generally, motivation starts and maintains an activity along a prescribed line. Motivation is something that moves the person to action, and continuous him in the course of action already initiated". According to William G Scott, "Motivation means a process of stimulating people to action to accomplish desired goals".According to Koontz and O'Donnell, "Motivation is a general term applying to the entire class of drives, needs, wishes and similar forces".In the words of Brech, "Motivation is a general inspiration process which gets the members of the team to pull their weight effectively, to give their loyalty to the group, to carry out properly the tasks they have accepted and generally to play an effective part in the job that the group has undertaken".In the words of Dalton E McFarland, "Motivation refers to the way in which urges,drives, desires, aspirations, striving or needs direct, control or explain the behaviour of human beings". In the words of Tolman, "The term motivation has been called an intervening variable. Intervening variables are internal and psychological process which are not directly observable and which, in turn, account for behaviour". The Encyclopaedia of Management observes: "Motivation refers to the degree of readiness of an organism to pursue some designated goal, and implies the determination of the nature and locus of the forces, including the degree of readiness". In the words of C. B. Mamoria - Motivation is - "a willingness to expend energy to achieve a goal or reward. It is a force that activates dormant energies and sets in motion the action of the people. It is the function that kindles a burning passion for action among the human beings of an organization". Motivation is a process by which a need or desire is aroused and a psychological force within our mind sets us in motion to fulfil our needs and desire. An unsatisfied need becomes the motive for a person to spend his energy in order to achieve a goal. In a business organization the 4 P's praise, prestige promotion and pay are the best positive motivators. NATURE AND CHARACTERISTICS OF MOTIVATION Psychologists generally agree that all behaviour is motivated, and that people have reasons for doing the things they do or for behaving in the manner that they do. Motivating is the work a manager performs to inspire, encourage and impel people to take required action. The process of motivation is characterized by the following:Motivation is an Internal Feeling Motivation is a psychological phenomenon which generates in the mind of an individual the feeling that he lacks certain things and needs those things. Motivation is a force within an individual that drives him to behave in a certain way. Motivation is Related to Needs Needs are deficiencies which are created whenever there is a physiological or psychological imbalance. In order to motivate a person, we have to understand his needs

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow that call for satisfaction. Motivation Produces Goal-Directed Behaviour Goals are anything which will alleviate a need and reduce a drive. An individual's behaviour is directed towards a goal. Motivation can be either Positive or Negative Positive or incentive motivation is generally based on reward. According to Flippo "positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward". Negative or fear motivation is based on force and fear. Fear causes persons to act in a certain way because they are afraid of the consequences if they don't. IMPORTANCE AND BENEFITS OF MOTIVATION A manager's primary task is to motivate others to perform the tasks of the organization. Therefore, the manager must find the keys to get subordinates to come to work regularly and on time, to work hard, and to make positive contributions towards the effective and efficient achievement of organizational objectives. Motivation is an effective instrument in the hands of a manager for inspiring the work force and creating confidence in it. By motivating the work force, management creates "will to work" which is necessary for the achievement of organizational goals. The various benefits of motivation are:(i) Motivation is one of the important elements in the directing process. By motivating the workers, a manager directs or guides the workers' actions in the desired direction for accomplishing the goals of the organization. (ii) Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization thereby increasing productivity. (iii) For performing any tasks, two things are necessary. They are: (a) ability to work and (b) willingness to work. Without willingness to work, ability to work is of no use. The willingness to work can be created only by motivation. (iv) Organizational effectiveness becomes, to some degree, a question of management's ability to motivate its employees, to direct at least a reasonable effort towards the goals of the organization. (v) Motivation contributes to good industrial relations in the organization. When the workers are motivated, contented and disciplined, the frictions between the workers and the management will be reduced. (vi) Motivation is the best remedy for resistance to changes. When changes are introduced in an organization, generally, there will be resistance from the workers. But if the workers of an organization are motivated, they will accept, introduce and implement the changes whole heartily and help to keep the organization on the right track of progress. (vii) Motivation facilitates the maximum utilization of all factors of production, human, physical and financial resources and thereby contributes to higher production. (viii) Motivation promotes a sense of belonging among the workers. The workers feel that the enterprise belongs to them and the interest of the enterprise is their interests. (ix) Many organizations are now beginning to pay increasing attention to developing their employees as future resources upon which they can draw as they grow and develop.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow TYPES OF MOTIVATION If a manager wants to get work done by his employees, he may either hold out a promise of a reward (positive motivation) or he may install fear (negative motivation). Both these types are widely used by managements. 1 Positive or Incentive Motivation This type of motivation is generally based on reward. A positive motivation involves the possibility of increased motive satisfaction. According to Flippo - "Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward". Incentive motivation is the "pull" mechanism. The receipt of awards, due recognition and praise for work-well done definitely lead to good team spirit, co-operation and a feeling of happiness. Positive motivation include:l Praise and credit for work done l Wages and Salaries l Appreciation l A sincere interest in subordinates as individuals l Delegation of authority and responsibility 2 Negative or Fear Motivation This type of motivation is based on force and fear. Fear causes persons to act in a certain way because they fear the consequences. Negative motivation involves the possibility of decreased motive satisfaction. It is a "push" mechanism. The imposition of punishment frequently results in frustration among those punished, leading to the development of maladaptive behaviour. It also creates a hostile state of mind and an unfavourable attitude to the job. However, there is no management which has not used the negative motivation at some time or the other. THEORIES OF MOTIVATION Motivation to work is very complex. There are many internal and environmental variables that affect the motivation to work. Behavioural scientists started to search new facts and techniques for motivation. These theories are termed as theories of motivation. The most important theories are explained below. 5.6.1 McGregor's Theory X and Theory Y Different styles of management have a different bearing on the motivation of workers in the organization. The style adopted by a manager in managing his subordinates is basically dependent upon his assumption about human behaviour. Theory X is negative, traditional and autocratic style while Theory Y is positive, participatory and democratic. Thus, these labels describe contrasting set of assumptions about human nature. Douglas McGregor has classified the basic assumption regarding human nature into two parts and has designated them as 'theory X and 'theory Y'. Theory X: This is the traditional theory of human behaviour, which makes the following assumptions about human nature: 1. Management is responsible for organizing the elements of productive enterprises money, material, equipment, and people - in the interest of economic ends. 2. With reference to people it is a process of directing their efforts, motivating them, controlling their actions, modifying their behaviour in order to be in conformity with the needs of the organization. 3. Without this active intervention by management, people would be passive even resistant to organizational needs. Hence they must be persuaded, rewarded, punished

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow and properly directed. 4. The average human being has an inherent dislike of work and will avoid it if he can. 5. He lacks ambition, dislikes responsibility and prefers to be led. 6. He is inherently self-centred, indifferent to organizational needs. 7. He is by nature resistant to change. 8. He is gullible, not very bright. Theory Y: The assumption of theory Y, according to McGregor are as follows:1. Work is as natural as play or rest, provided the conditions are favourable; the average human being does not inherently dislike work. 2. External control and the thrust of punishment are not the only means for bringing about efforts towards organizational objectives. Man can exercise self-control and self-direction in the service of objectives to which he is committed. 3. Commitment to objectives is a result of the rewards associated with their achievement. People select goals for themselves if they see the possibilities of some kind of reward that may be material or even psychological. 4. The average human being, under proper conditions does not shirk responsibility, but learn not only to accept responsibility but also to seek it. 5. He has capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems in widely, not narrowly distributed in the population. 6. Under conditions of modern industrial life the intellectual potentialities of people are only partially utilized. As a matter of fact, men, have unlimited potential. Comparison of Theory X and Theory Y Maslow's Need-Hierarchy Theory of Motivation According to Abraham Maslow, a U.S psychologist, man is a wanting animal. He has a variety of wants or needs. All motivated behaviour of man is directed towards the satisfaction of his needs. The theory postulated that people are motivated by multiple needs, which could be arranged in a hierarchy. Maslow offers a general theory of motivation called the 'need hierarchy theory'. The features of his theory are as follows:1. People have a wide range of needs which motivate them to strive for fulfilment. 2. Human needs can be definitely categorized into five types: l Physical needs, l Safety or security needs, l Affiliation or social needs, l Esteem needs and l Self-actualisation needs. 3. These needs can be arranged into a hierarchy. Physical needs are at the base whereas self-actualisation needs are at the apex. 4. People gratify their physical needs first, when the need is satisfied, they feel the urge for the next higher level need. 5. Relative satisfaction of lower level need is necessary to activate the next higher level need. THEORY X THEORY Y 1. Theory X assumes human beings inherently dislike work and are distasteful towards work. 1.Theory Y assumes that work is as natural as play or rest

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 2. Theory X emphasizes that people do not have ambitions and they shrink responsibility 2. Theory Y assumes just the reverse. Given proper conditions, people have ambitions and accept responsibility 3. Theory X assumes that people in general have little capacity for creativity 3. According to Theory Y the creativity is widely distributed in the population 4. According to Theory X, people lack self motivation and require be externally controlling and closely supervising in order to get maximum output. 4. While in Theory Y people are selfdirected and creative and prefer Selfcontrol 5. Theory X emphasise upon centralization of authority in decision-making process 5. Theory Y emphasizes decentralization and greater participation in decisionmaking process 6. A satisfied need does not motivate human behaviour. It only triggers or activates the urge for the next higher level of needs. Deficit and Progression Principles: In order to comprehend the full meaning of Maslow's theory, it is necessary to understand the deficit and progression principles. Deficit Principle: According to Maslow, once a need is fairly well satisfied, it is no longer a stronger motivator of behaviour. People are motivated to satisfy only those needs that are perceived to be deficient. Progression Principle: Maslow contends that the five categories of needs exist in a hierarchy. A need at a given level is not activated until the need directly below it is fairly well gratified. Thus, the person is expected to progress step-by-step up the need hierarchy. The need-hierarchy theory must not be viewed as a rigid structure to be applied universally in all situations. The hierarchy represents a typical pattern that operates most of the time. 3 Hertzberg's Theory of Motivation Hertzberg developed a theory of motivation on the premise that human nature has two separate elements - The motivators and maintenance factors. According to this theory of motivation the items that determine job content are considered motivational factors e.g.:- Achievement, recognition, responsibility, advancement and the work itself. The elements that influence the job context are the hygiene or maintenance factors e.g.:company policy, salary, inter-personal relations, working conditions etc. They must be adequate and if they are absent or inadequate, they will create dissatisfaction. (a) Hygiene Factors: Hygiene factors represent the need to avoid pain in the environment. They are not an intrinsic part of a job, but they are related to the conditions under which a job is performed. They are associated with negative feelings. They must be viewed as preventive measures that remove sources of dissatisfaction from environment. Hertzberg believed that hygiene factors created a zero level of motivation and if maintained at proper level prevents negative type of motivation from occurring. Thus, hygiene factors, when absent, increase dissatisfaction with the job. When present, help in preventing dissatisfaction but do not increase satisfaction or motivation. (b) Motivators: Motivators are associated with positive feelings of employees about the job. They make people satisfied with their job. Motivators are necessary to keep job satisfaction and job performance high. On the other hand, if they are not PHYSIOLOGICAL (Hunger, thirst, relaxation, sex,

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow etc) SECURITY (Protection against danger, threat deprivation etc) SOCIAL ASSOCIATION WITH OTHERS (Belonging, giving and receiving affection etc) ESTEEM SELFRESPECT (Status etc) SELFACTUALISATION (Creativity, selfexpression etc. present they do not prove highly satisfying. Motivational factors or satisfiers are directly related to job content itself, the individual's performance of it, its responsibilities and the growth and recognition obtained from it. Motivators are intrinsic to the job. Thus, when motivators are absent, prevent both satisfaction and motivation. When, motivators are present, they lead to satisfaction and motivation. To apply the two-factor theory to the workplace, Hertzberg suggests a two-step process (i) The supervisor should attempt to eliminate the hygiene factors that are found to be more basic than factors that lead to satisfaction. (ii) Once the dissatisfies have been somewhat neutralized, the supervisor may be able to motivate workers through the introduction of motivational factors. 4 Victor Vroom's Expectancy Theory Expectancy Theory was developed by Victor H Vroom. It is based on the notion that human behaviour depends on people's expectations concerning their ability to perform tasks and to receive desired rewards. The expectancy theory argues that the strength of a tendency to act in a certain way depends in the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. It includes three variables which Vroom refers to as (i) Valance: Valence means the strength of an individual's preference for a particular outcome. A valence of zero occurs when the individual is indifferent towards the outcome. The valance is negative when the individual prefers not attaining the outcome to attaining it. (ii) Instrumentality: Instrumentality refers to the relationship between performance and reward. It refers to a degree to which a first level outcome (e.g.:-superior performance) will lead to a desired second level outcome (e.g.:- promotion). If people perceive that their performance is adequately rewarded the perceived instrumentality will be positive. On the other hand, if they perceive that performance does not make any difference to their rewards, the instrumentality will be low. (iii) Expectancy: People have expectancies about the likelihood that an action or effort on their part will lead to the intended performance. Workers will be motivated by the belief that their performance will ultimately lead to payoffs for them. Expectancy is the probability that a particular action will lead to a particular first level outcome. In sum, Vroom emphasizes the importance of individual perceptions and assessments of organizational behaviour. The key to "expectancy" theory is the "understanding of an individual's goals" - and the linkage between "effort" and "performance" between

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow "performance" and "rewards" and between "rewards" and "individual-goal satisfaction". It is a contingency model, which recognizes that there is no universal method of motivating people. Because we understand what needs an employee seeks to satisfy does not ensure that the employee himself perceives high job performance as necessarily leading to the satisfaction of these needs. McClelland's Need for Achievement Theory David C McClelland, a Harvard Psychologist, has proposed that there are three major relevant motives most needs in work-place situations. According to him, the motives are:l The need for achievement i.e., strives to succeed. l The need for affiliation i.e., warm relationship with others. l The need for power i.e., controls other people. 99 Human Factors and Motivation According to McClelland, every motive is acquired except striving for pleasure and avoiding pain. He proposed that people acquire these needs for achievement, power and affiliation through experiences over the time. On the job, people are motivated by these needs, and the manager can learn to recognize these needs in workers and use them to motivate behaviour. McClelland used the Thematic Apperception Test (TAT) to study human needs. The TAT process involves asking respondents to look at pictures and write stories about what they see in the pictures. The stories are then analysed to find certain themes that represent various human needs. From his research, McClelland found that, achievement motive is a "desire to perform in terms of a standard of excellence or to be successful in competitive situations". They (employees) seek situations where: 1. They can attain personal responsibility for finding solutions to problems. 2. They can receive immediate feedback information on how they are progressive towards a goal. 3. They can set moderately challenging goals. 4. They find accomplishing a task intrinsically satisfying. "High achievers" differentiate themselves from others by their desire to do things better. Evaluation: Achievement motivated people is the backbone of any organization. As such considerable time and attention must be devoted to constructing ways of developing the achievement motive at the managerial level. Organizational climate must be conducive to high achievement. Managers must try to raise the achievement need level of subordinates by creating the proper work environment, increasing responsibility and autonomy and rewarding excellence in performance. REQUIREMENTS OF A SOUND MOTIVATION SYSTEM It is very difficult for an average manager to sort through all the different motivational theories and models and know when and how to maximize their application in widely differing situations. There should be a sound system of motivation to make the workers put forth their best efforts. A sound system of motivation should have the following essential features. 1. A sound motivation system should satisfy the needs and objectives of both organization and employees.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow 2. Motivational system should change with the changes in the situation. 3. Jobs should be designed in such a way as to provide challenge and variety. 4. Managers should recruit the active co-operation of subordinates in improving the organization's output. Subordinates should be made to realize that they are stakeholders in the organization. 5. The motivational system should satisfy the different needs of employees. It should be directly related to the efforts of the employers. 6. The motivational system should be simple so that it is easily understood by the workers. METHODS OF MOTIVATING PEOPLE Several factors influence human behaviour. There are numerous drives and needs which can act as good motivators moving people to work and getting things done through them as per the plan. People respond to physiological needs, social needs and egoistic needs. Human needs and desires are the door ways through which the manager channelises his motivation efforts. There are three types of motivational programmes to improve a person's behaviour towards his job. These are:1. Pay incentive plans, 2. Job enrichment and 3. Management by objectives. Factors Determining Response to Motivation There are four important factors governing employee response to the measures of motivation: l The intensity or urge of the Drive. l Past Experience - can he rely upon the promises given by the boss. l Amount of Reward - The quantity and quality of the reward can influence the amount of extra effort put forth by the employee. l Time Relationship of Response to Reward - Long range promises are less effective than immediate fulfilment.

Quality Work life

Quality of work life (QWL) is viewed as an alternative to the control approach of managing people. The QWL approach considers people as an asset'to the organization rather than as costs'. It believes that people perform better when they are allowed to participate in managing their work and make decisions. This approach motivates people by satisfying not only their economic needs but also their social and psychological ones. To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work. Further, today's workforce is realizing the importance of relationships and is trying to strike a balance between career and personal lives.

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow Successful organizations support and provide facilities to their people to help them to balance the scales. In this process, organizations are coming up with new and innovative ideas to improve the quality of work and quality of work life of every individual in the organization. Various programs like flex time, alternative work schedules, compressed work weeks, telecommuting etc., are being adopted by these organizations. Technological advances further help organizations to implement these programs successfully. Organizations are enjoying the fruits of implementing QWL programs in the form of increased productivity, and an efficient, satisfied, and committed workforce which aims to achieve organizational objectives. The future work world will also have more women entrepreneurs and they will encourage and adopt QWL programs. Morale Building

For, management is genuinely interested in high production and higher productivity of workers to achieve the desired results, it should know the impact of its policies and practices on the attitude of he workers about work and be ready in promoting the good feelings about the work, policies, practices and about the organisation among workers and stimulate them to get the predetermined objectives willingly. Higher productivity is the direct result of the attitude of the workers about work i.e high morale will yield more production and better quality at lower cost and is an index of good feelings about the fellow-workers and the organisation. If workers appear to feel enthusiastic optimistic about the groups activities and mission and friendly to each other, they are described as having good or high morale. If they seem dissatisfied, irritated, cranky. Critical restless and pessimistic, these reactions are described as evidence of poor or low morale,' Therefore, form the view point of the management, the problem of employee morale, is always at the top priority. They consistently and persistently make the efforts for stimulating a feeling of togetherness, a sense of identification with the elements of one['s job, working conditions, fellow workers, supervisors and the company which is conductive to the achievement of the company's goals. It is essentially a responsibility of the management to maintain high morale. Morale hos been recognized bu military authorities as one of the most important factors in winning or lossing wars. Napolean rated morale so high to say that more conditions made up 95 per cent of success or failure in a military situation. High morale leads to success and low morale brings defeat in tis wake. The place of morale is no less important for an industrial undertaking. The success or failure of he industry must depends upon the morale of its employees. Kelth Davis has rightly compared the morale with the woman according to him .....never underestimate the power of a woman, and the same certainly must be said about morale, never under estimate the power of morale. High morale assists the management to overcome the several labour problems such as labour turnover, absenteeism, indiscipline, grievance etc. ti also helps to seek cooperation of the workers in the running of the organisation and thus getting higher production to minimum possible cost by reducing the wastage of time, man, machines and materials. It is, in other sense, an index of good industrial relations. In modern times the psychological researchers have increased the importance of the morale in the industrial field. They showed remarkable progress in output by improving morale among the industrial workers. The government is also taking interest in this direction and have introduced

Notes on PPM Unit 3 Ram Singh Lecturer IET, Lucknow several labour welfare an social security measures to improve the morale of the industrial workers. The management has also recognized the importance of high morale and realized that low morale has long-range effects which are even more damaging to the organisation. ----------------------------------------ALL THE BEST-----------------------------------------