HUMAN RESOURCE MANAGEMENT

INDEX
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SUBJECT
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATION
JOB EVALUATION
JOB DESIGN
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT
SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
MULTI-SKILLING
CHANGE MANAGEMENT
PERFORMANCE APPRAISALS
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
UNIONS
ORGANIZATIONAL DOWNSIZING

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W HAT IS HR M ?
MEANING OF HRM
HRM is a management function that helps organisation to recruit, select, train, develop and manage its
members. Simply stated, HRM is all about management of people in the organisation from Recruitment to
Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to
maximise both employee as well as organisational effectiveness.
Definition 2
HRM is concerned with the people dimensions in management. Since every organization is made up of
people, acquiring their services, developing their skills, motivating them to higher levels of performance
and ensuring that they continue to maintain their commitment to the organization are essential to
achieving organizational objectives. This is true, regardless of the type of the organization government,
business, education, health, recreational, or social action.

OBJECTIVES OF HRM
1. Organizational Objectives : To assist the organization to achieve its primary objectives, whether
it is profit making or charity or social agenda.
2. Societal Objectives: To be responsive to the needs and challenges of the society while
minimizing the negative impact, if any, of such demands upon the organization.
3. Functional Objectives : To maintain departments contribution and level of services at a level
appropriate to the organizations needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as
these goals enhance the individuals contribution to the organization. This is necessary to maintain
employee performance and satisfaction for the purpose of maintaining, retaining and motivating the
employees in the organization.

SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization
Following are the areas of operation of HRM:
1. Human Resource Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations

ROLE OF HRM
1.

Advisory Role: HRM advises management on the solutions to any problems affecting people,
personnel policies and procedures.
(a)
Personnel Policies: Organization Structure, Social Responsibility, Employment Terms &
Conditions, Compensation, Career & Promotion, Training & Development and Industrial
Relations.
(b)
Personnel Procedures: Relating to manpower planning procedures, recruitment and
selection procedures, and employment procedures, training procedures, management
development procedures, performance appraisal procedures, compensation procedures,
industrial relations procedures and health and safety procedures.

2.

Functional Role: The personnel function formulates personnel policies in accordance with the
companys doctrine and management guidelines. It provides guidance to managers to help them
ensure that agreed policies are implemented.

ROLE OF HR MANAGERS
1. Humanitarian Role:
2. Counsellor:
problems.

Reminding moral and ethical obligations to employees.

Consultations to employees about marital, health, mental, physical and career

3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and
groups or management.
4. Spokesman: To represent the company in Media and other forums because he has better overall
picture of his companys operations.
5. Problem Solver:
Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing organizational
development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and
individual relationships and labour-management relations.

OBJECTIVES V/s FUNCTIONS OF HRM

HRM Objectives
Social Objectives (3)

Organizational Objectives (7)

Functional Objectives (3)

Personal Objectives (5)

(a)
(b)
(c)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(a)
(b)
(c)
(a)
(b)
(c)
(d)
(e)

Supporting HRM Functions

Legal Compliance
Benefits
Union
Management
Relations
Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment
Performance Appraisals
Placement & Orientation
Employee Assessment
Training & Development
Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment

MANAGERIAL FUNCTIONS OF HRM

1. Planning: Research and plan about wage trends, labour market conditions, union demands and
other personnel benefits. Forecasting manpower needs etc.
2. Organizing:
3. Staffing:

Organizing manpower for the achievement of organizational goals and objectives.

Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and
employees.
5. Controlling: Regulating personnel activities and policies according to plans. Observations and
comparisons of deviations

OPERATIONAL FUNCTIONS OF HRM

1. Procurement:

Planning, Recruitment and Selection, Induction and Placement

2. Development:

Training, Development, Career planning and counselling.

3. Compensation:
4. Integration:
5. Maintenance:

Wage and Salary determination and administration

Integration of human resources with organization.

Sustaining and improving working conditions, retentions, employee communication

6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical
sickness etc.

CHALLENGES OF HRM IN INDIAN ECONOMY

The job of HRM department in India has never been so challenging. Last decade has witnessed tectonic
shift in Job market. From being an employers market, it has suddenly turned into employees market,
especially in the most crucial segment, ie middle management. Globalisation and Indias growing stature
in the world has seen demand for Indian managers soaring. From the state of plenty, there is a stage of
scarcity of the right talent. The biggest challenge is to retain the talent one has so assiduously hunted and
trained. The attrition rate has reached alarming proportions. It has reached such proportions that certain
segments of Industry are maintaining bench strengths to fill in the sudden gaps due to resignations. In
addition, there are following new issues:
1. Globalization: Growing internationalization of business and workforce has its impact on HRM in
terms of problems of unfamiliar laws, languages, practices, attitudes, management styles, work ethics and
more. HR managers have a challenge to deal with more and more heterogeneous functions and more
involvement in employees personal life.
2. Corporate Re-organizations: Liberalisation has led to largescale reorganization of businesses
in terms of expansions, mergers and acquisitions, joint ventures, take overs, and internal restructuring of
organizations. In circumstances as dynamic and as uncertain as these, it is a challenge to manage
employees anxiety, uncertainties, insecurities and fears.
3. New Organizational Forms:
Exposure to international business and practices have led to
change in the organisational structure and HR policies of the local companies. Take for instance, the
hierarchical structure of Indian companies. Suddenly, Indian companies have begun to adopt flat
hierarchical management structure. But to implement and grout such fundamental changes in management
philosophy of any company is never easy. The challenge for HRM is to cope with the implications of
these new relations in place of well established hierarchical relationships that existed within the
organizations for ages in the past.

4. Changed Employee Expectations: With the changes in workforce demographics, employee

expectations and attitudes have also transformed. Traditional allurements like job security, house, and
remunerations are not much attractive today. Rather, employees are demanding empowerment and
equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and
discover new methods of hiring, training, remunerating and motivating employees.
5. New Industrial Relations Approach: In the changed industrial climate, even trade unions
have realised that strikes and militancy have lost their relevance and not many workers are willing to join
them and disrupt work. However, the problems faced by workforce now have different dimension for the
management. They manifest in the form of increased attrition rate. Unsatisfied employees instead of
approaching the management for resolution, often take up the new job. The challenge before the HRM is
find ways and means to feel the pulse of employees and address the issues on proactive basis.

6. Renewed People Focus: Man behind the machine is most important than the machine. This is
an old doctrine of the Armed Forces. However, this doctrine has begun to gain acceptance in the corporate
world and thus all out efforts to grab the best talent at what ever cost.
7. Managing the Managers: Managing the managers is most difficult. Armed with inside
information, they can not be lured with rosy promises. They are in great demand too with growth in
economy. These are the people who are most mobile, attrition rate being highest for the junior and middle
management level. The challenge of HRM is how to manage this tribe?
8. Weaker Sections Interests: Another challenge for HRM is to protect the interest of weaker
sections of society. The dramatic increase of women workers, minorities and other backward communities
in the workforce, coupled with weakening of trade unions, has resulted in the need for organizations to reexamine their policies, practices and values. In the name of global competition, productivity and quality,
the interests of the society around should not be sacrificed. It is a challenge of todays HR managers to see
that these weaker sections are neither denied their rightful jobs nor are discriminated while in service.
9. Contribution to the Success of Organizations: The biggest challenge to an HR manager is
to make all employees contribute to the success of the organization in an ethical and socially responsible
way. Because societys well being to a large extent depends on its organizations.

S T R ATE G I C H U M A N R E S O U RC E M A N A G E M E N T
Strategy:
Strategy is a way of doing something. It includes the formulation of goals and setting of action plans for
accomplishment of that goal.
Strategic Management:
A Process of formulating, implementing and evaluating business strategies to achieve organizational
objectives is called Strategic Management
Definition of Strategic Management
Strategic Management is that set of managerial decisions and actions that determine the long-term
performance of a corporation. It includes environmental scanning, strategy formulation, strategy
implementation, evaluation and control.
The study of strategic management therefore emphasizes monitoring and evaluating environmental
opportunities and threats in the light of a corporations strengths and weaknesses.

ROLE OF HRM IN STRATEGIC MANAGEMENT

Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may
be useful in strategy formulation. Details regarding advanced incentive plans used by competitors,
opinion survey data from employees, elicit information about customer complaints, information about
pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in
strategy formulation.
Role in Strategy Implementation: HR Manager helps strategy implementation by supplying competent
people. Additionally, HRM facilitates strategy implementation by encouraging proactive thinking,
communicating goals and improving productivity and quality.

HUMAN RESOURCE DEVELOPMENT

Human Resource Development is a process to help people to acquire competencies and to increase their
knowledge, skills and capabilities for better performance and higher productivity.
Definition 1:
HRD is a process of enhancing the physical, mental and emotional capacities of individuals for
productive work.
productivity could be achieved through qualitative growth of people.
Long-term growth can also be planned by creating highly inspired groups of employees with high
aspirations to diversify around core competencies and to build new organizational responses for coping
with change.
A proactive HRD strategy can implement plans directed at improving personal competence and
productive potentials of human resources.
Following strategic choices can be considered which would help todays organizations to survive and
grow.
Change Management: Manage change properly and become an effective change agent rather than being
a victim of change itself.
Values: Adopt proactive HRD measures, which encourage values of trust, autonomy, proactive approach
and experimentation.
Maximize Productivity and Efficiency: Maximize productivity and efficiency of the organization by
helping qualitative growth of people

TEAM EFFECTIVENESS
Definition:
A team is a small group of people who agree to work together for achieving a clear and identifiable set of
goals.
Teams Can be Very Effective.
The benefit of teams lie in Synergy which means The whole is greater than sum of its parts. Thus, a
team is able to produce more than the sum of individuals working separately. A team benefits from
complementing and some times contrasting abilities of its members. Teams can bring to bear a wider
range of skills and experience to solve a problem. Teams often lead to better quality decisions as
individual whims and prejudices are kept in check. Further, members of team have an obligation to each
other and thus there is a moral force/binding to perform.

TEAM EFFECTIVENESS
For a team to be effective, following are the prerequisites:
1. Harmony and trust among the team members
2. Effective leadership
3. Shared goals
4. Diverse skills and experience - technical, problem solving and interpersonal skills
5. Creativity and risk taking ability
6. Freedom to voice views
7. Ability to self-correct
8. Interdependent work
9. Effective decision making process
10. Ability to resolve conflict
11. Clear communication channels
Synergy among the team members is very important. The team needs a clear sense of direction which the
leader provides. Harmony and trust among the group members is utmost essential. In any group, conflicts
are inevitable, how ever harmonious it may be. There has to be a well formulated policy for conflict
management. Decision making is a source of potential conflicts. A well charted course for decision taking
will be able to minimise such conflicts.

HUMAN RESOURCE PLANNING (H R P)

Human Resource Planning, as the name suggests, is the process of identification/ forecasting a firms
future requirement of type and number of people in order to meet the organisational goals and objectives.
It is a continuous process either due to fresh requirement of manpower owing to
change/growth/diversification of business or due to attrition of manpower due to retirement, termination,
death, disability or resignations.
Definition 1:
HRP includes estimation of how many qualified people are necessary to meet the future business
requirement, how many people will be available, and what, if anything, must be done to ensure
availability of personnel equals the demand at all times in the future.

Definition 2:
HRP is a Process, by which an organization ensures that it has the right number of right kind of people
at the right place, at the right time, capable of effectively and efficiently completing those tasks that will
help the organization achieve its overall objectives.

NEED & IMPORTANCE OF HRP

Human Resource comes at a cost and generates profits. While excess of human resource will lead to
unproductive costs, shortages of same will lead to idling of other resources and impede profit generation.
Having the people is not enough. Each job needs specific skills and experience and only a certain trained
personnel can do it effectively. Therefore, it is necessary that right kinds of people are hired for each job.
Personnel requirement is never static. Manpower wastages in the organisation keep taking place regularly
due to retirement, injury, resignations, termination, etc. In addition, changes in the business environment,
business model and plan, capacity/product changes, diversifications, etc, also generate need to review the
human resource requirement of the organisation.
Changes in the Business Environment in the past one and half decade have led to relative scarcity of
talented people. Right kinds of people are no more available at short notice. There is considerable time
gap between identifying the need for manpower and filling the vacancy, some times stretching between 6
months to one year. Thus, it will help the company if the requirement is forecasted adequately in advance
to enable hiring of right kind of personnel just in time so that neither the machines/other resource idle for
want of manpower nor do the people idle. At the same time, there could be situations when there is spare
manpower in the company. Company may have changed over to a new technology productions and
therefore all personnel trained in old machines may have become redundant and surplus. The Exit
Policy for workers is not easy and they can not be released at short notice. Re-training or retrenchment of
personnel has to be planned in advance.
In India services is growing at a fast pace. It has already overtaken agriculture and Industrial production
sectors to become the biggest contributor to GDP. In service industry, human capital is the most important
asset. HRP bears a disproportionate importance in this industry.

Business Environment

Organization Objectives & Goals

Manpower Forecast

Manpower Supply Assessment

Manpower Programming
Manpower Implementation
Surplus Manpower

Control & Manpower

Evaluation

Shortage of Manpower

HRP PROCESS
Organizational Objectives & Policies:
Organizational objectives and policies give a clue to future requirement of manpower. A company
planning expansion would require more manpower in near future. Kind of people required would be
dictated by technology being planned for expansion. HRP needs to align hiring of people with these
elements. In addition, companys policies towards its manpower policies, like using internal resources for
promotion or external resources or dependence on certain caste or region for some jobs have also to be
catered for. Gujarati companies in diamond business hire only gujaraties. Similarly, certain Business
Houses from Rajasthan prefer Rajasthanies. So, HRP process will be dictated by following organisational
policies:
1.
2.
3.
4.
5.
6.
7.

Internal Hiring or External Hiring?

Training & Development plans
Union Constraints
Job enrichment issues
Rightsizing organization
Automation needs
Continuous availability of adaptive and flexible workforce

Supply Analysis covers:

Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and
abilities. The existing employees can be categorized as skills inventories (non-managers) and
managerial inventories (managers).
Skill inventory would include the following;

Personal data

Skills

Special Qualifications

Salary

Job History

Company data

Capabilities

Special preferences
Management inventories would include the following:
Work History
Strengths
Weaknesses
Promotion Potential
Career Goals
Personal Data
Number and Types of Subordinates supervised
Total Budget Managed
Previous Management Duties
Internal Supply Assessment:

Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.)

Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)

Conditions of work (working hours, overtime, etc.)

Absenteeism (leaves, absences)

Productivity level

Job movements (Job rotations or cross functional utilizations)

External Supply Assessment: External sources are required for following reasons

New blood,

New experiences

Replenish lost personnel

Organizational growth

Diversification
External sources can be colleges and universities, consultants, competitors and unsolicited
applications.

SUCCESSION PLANNING

Meaning of Succession Planning

Succession planning is the process or activities connected with the filling of key positions in the
organization hierarchy as vacancies arise. Succession planning focuses on identification of future
vacancies and locating the probable successor. For example in succession planning the key concern can be
who will be next CEO or what will happen if the Marketing Manager retires in coming March. Grooming
a person to fill an important position may take years. Succession planning involves identification of key
positions in the company and then scouting for people who can effectively fill those positions at short
notice.

CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and developmental
experiences that an individual goes through in his working life. It is a sequence of positions occupied by a
person during his life.
Career planning is the process of identifying an individuals strengths, weaknesses, aptitudes, inclinations,
aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive
traits and minimising the effect negatives traits.
After identifying the personality traits of the individual begins the process of identifying suitable job
billets for him. It may also involve training at times to strengthen his weak areas.
Career planning is a process of integrating the employees needs and aspirations with organizational
requirements.
A typical succession planning involves the following activities:
1.

Analysis of the demand for managers and professionals by company level, function and
skill.

2.
3.
4.
5.
6.
7.
8.

Audit of existing executives and projection of likely future supply from internal and
external sources.
Planning of individual career paths based on objective estimates of future needs and
drawing on reliable performance appraisals and assessments of potential.
Career counselling undertaken in the context of a realistic understanding of the future
needs of the firm as well as those of the individual.
Accelerated promotions with development targeted against the future needs of the
business.
Performance related training and development to prepare individuals for future roles as
well as current responsibilities
Planned strategic recruitment not only to fill short term needs but also to provide
people for development to meet future needs
The actual activities by which openings are filled

J O B AN A LYS I S
Definition 1
Job Analysis is a process of collecting and studying the information relating to operations and
responsibilities of a specific job. The immediate products of this analysis are Job Description and Job
Specifications.

PURPOSE OF JOB ANALYSIS:

Human Resource Planning (HRP) :

quality and quantity.

Recruitment & Selection :

Knowing the staffing needs is essential for Recruitment and
Selection Right person for each job. Sourcing of recruits also becomes easy and cost effective

Training & Development :

programs.

Job Evaluation :
Job evaluation means determination of relative worth of each job for the
purpose of establishing wage and salary. This is possible with the help of job description and
specifications; i.e. Job Analysis.

Remuneration :

Performance Appraisal : Job analysis helps in fixing the bench marks of performance standards
which in turn help in objective Performance appraisal, rewards, promotions, etc.

Safety & Health : Job Analysis helps to uncover hazardous conditions and unhealthy
environmental factors so that corrective measures can be taken to minimize and avoid possibility
of human injury.

Job analysis helps in determining staffing needs, type,

Job analysis is the key to determining Training and Development

Job analysis also helps in determining wage and salary for the jobs.

JOB DESCRIPTION
Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.
Job description is a word picture of the duties, responsibilities and organizational relationships that
constitutes a given job or position. It defines work assignment and a scope of responsibility that are
sufficiently different from those of the other jobs to warrant a specific title. Job description is a broad
statement of purpose, scope, duties and responsibilities of a particular job.

Contents of Job Description

1.
2.
3.
4.
5.
6.
7.
8.

Job Identification
Job Summary
Job Duties and Responsibilities
Supervision specification
Machines, tools and materials
Work conditions
Work hazards
Definition of unusual terms

Format of Job Description

1.
2.
3.
4.
5.
6.

Job Title
Region/Location
Department
Reporting to (Operational and Managerial)
Objective
Principal duties and responsibilities

J O B S P E C I F I C ATI O N S
Job Specification involves listing of qualifications, skills and abilities required in an employee to meet
the job description. These specifications are minimum required to do the job satisfactorily.
In other words, it is a statement of minimum acceptable physical/psychological attributes and professional
skills necessary to perform the job properly. Job specifications seek to indicate kind of persons who can
be expected to meet the role requirements. Thus, it is basically concerned with matters of selection,
screening and placement and is intended to serve as a guide in hiring.

Contents of Job Specifications

1.
2.
3.
4.
5.
6.

Physical Characteristics
Psychological characteristics
Personal characteristics
Educational Qualifications
Skill Set and Experience/Responsibilities
Demographic features

Job specifications can be further divided into three broad categories

1.
Essential Attributes
2.
Desirable Attributes
3.
Contra-Indicators Attributes which are likely to act as impediments to success of job

J O B E VAL U AT I O N
Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their
relative worth in an organization.
Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage
and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job
Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees
need to be compensated depending on the grades of jobs they perform. Remuneration must be based on
the relative worth of each job. Ignoring this basic principle results in inequitable compensation and
attendant ill effects on employees morale. A perception of inequity is a sure way of de-motivating an
employee.
Jobs are evaluated on the basis of content and placed in order of importance. This establishes Job
Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs.
Jobs are ranked (not jobholders)

PROCESS OF JOB EVALUATION:

1. Defining objectives of job evaluation
(a)
Identify jobs to be evaluated (Benchmark jobs or all jobs)
(b)
Who should evaluate job?
(c)
What training do the evaluators need?
(d)
How much time involved?
(e)
What are the criteria for evaluation?
(f)
Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.

METHODS OF JOB EVALUATION

1.

Analytical Methods
(a) Point Ranking Methods: Different factors are selected for different jobs with accompanying
differences in degrees and points.
(b) Factor Comparison Method:
The important factors are selected which can be assumed
to be common to all jobs. Each of these factors are then ranked with other jobs. The worth
of the job is then taken by adding together all the point values.

2.

Non-Analytical Methods
(a) Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers,
Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales,
stores or Allied Services (House Keeping) Deptt are treated equal. Job is not broken down
into factors etc. It is easier to implement but not always satisfactory for the employees.

PITFALLS OF JOB EVALUATION:

1. Sometimes encourages employees to manipulate for promotion/internal placement when there may be
limited opportunities for enhancement as a result of downsizing.
2. It promotes internal focus (office politics) instead of customer orientation
3. Not suitable for forward looking organizations, which may have trimmed multiple job titles into two
or three broad jobs.

JOB DESIGN
In the most simplified form - The process of breaking/organizing work into specific tasks in order to
perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job
design involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to
achieve certain objective.

Steps in Job Design

1. Specification of Individual Tasks
2. Specification of Methods for Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals

FACTORS AFFECTING JOB DESIGN

1.

Environmental Factors
(a) Employee Abilities and Availability
(b) Social and Cultural Expectations

2.
(a)
(b)
(c)
(d)

Behavioural Elements
Feedback
Autonomy
Use of Abilities
Variety

TECHNIQUES OF JOB DESIGN

1.

Work Simplification : Job is simplified or specialized. The job is broken down into small
parts and each part is assigned to an individual. To be more specific, work simplification is
breaking down the job to such small tasks that complexity is taken out of them. Like in a assembly
line of car, one person only tighten wheel nuts with a pneumatic tool which tighten the nuts. The
complexity of ensuring that each nut is tightened to required degree has been transferred to
machine and the worker only applies the tool to the right place. He does not even put the wheel in
place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are
not specialized.

2.

Job Rotation :
Same job, same people, same surrounding, days over days, months over
months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in
productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While
broadly the job may remain same, minor variations between jobs are enough to rejuvenate the
employee. It not only benefits the personnel but also the organisation in equal measure
(a) Benefit to the Employee.
It is a development tool since the employees get exposure to
several jobs which develops their personality and employability. It improves their selfimage and leads to personal growth. Such cross functional deployments often reveal
hidden performance potentials/skills of many employees in the course of new job.
(b) Benefits to the Company: Such cross functional knowledge of employees provides the
company with a fall back option in case of absence of any employee. It also gives

flexibility to the management to reorganise the functional setup just in case of need like
demand pattern shift or change in business model or any other eventuality. Also, periodic
job rotation is the best method to avoid compartmentalisation of departments. Movement
of personnel between departments and first hand knowledge of limitations and problems
faced by other departments reduces frictions and leads to better cooperation between them.
Interpersonal bonds developed during in the course of such cross functional job rotation
further smoothens the interaction between departments. On the negative side, training costs
rise and it can also de-motivate intelligent and ambitious trainees who might take it as their
undesirability in their own department unless it is well laid down policy of the company.
3.

Job Enrichment :
Job enrichment is to add a few more motivators to a job to make it more
rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and
creative or gives the job holder more decision-making, planning and controlling powers. An
enriched job will have more authority, responsibility, autonomy (vertical enrichment), more
variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more
planning and controlling with less supervision but more self-evaluation. For example: transferring
some of the supervisors tasks to the employee and making his job enriched. As per Hertzberg,
who was the father of this term, an enriched job has eight characteristics:
(a) Direct Feedback: Employee should be able to get immediate knowledge of the results they
are achieving.
(b) Client Relationship:
An employee who serves a client or customer directly has an
enriched job. The client can be outside or inside the firm.
(c) New Learning: An enriched job allows its incumbent to feel that he is growing intellectually.
(d) Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment.
(e) Unique Experience: A enriched job has some unique qualities or features.
(f) Control over Resources: One approach to Job enrichment is for the each employee to have
control over his or her resources and expenses.
(g) Direct Communication Authority: An enriched job allows worker to communicate directly
with people who use his or her output.
(h) Personal Accountability: An enriched job holds the incumbent responsible for the results. He
or she receives praise for good work and blame for poor work.
Problems with Job Enrichment
(a) Job enrichment is not a substitute for good governance. If other environmental factors in the
business are not right, mere job enrichment will not mean much.
(b) Job enrichment may have short term negative effects till the worker gets used to the new
responsibility.
(c) Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the
two-factor motivation theory, job enrichment is not enough. It should be preceded by
hygienic factors etc.
(d) Job enrichment assumes that workers want more responsibilities and those workers who are
motivated by less responsibility, job enrichment surely de-motivates them
(e) Workers participation may affect the enrichment process itself.
(f) Change is difficult to implement and is always resisted as job enrichment brings in a changes
the responsibility.

4.

Autonomous or Self-Directed Teams : Empowerment results in self-directed work teams.

A self-directed team is a group of employees responsible for a whole work segment. They work
together, handle day-to-day problems, plan and control, and are highly effective team.

J O B S ATI S FAC T I O N
Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do.
Job satisfaction is more a function of the various attitudes possessed by an employee towards his job,
related factors and life in general than the job itself. The attitudes related to job may be wages,
supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of
work, social relations on job, prompt settlement of grievances etc. A person with a kind heart will find
high level of job satisfaction in working with some agency involved in charitable work though the salary
might be relatively less. An over ambitious person will never find the job satisfaction.
In short job satisfaction is a general attitude towards the job, which is the result of many specific attitudes
in three areas namely, job factors, individual characteristics and group relationships outside the job.

WORK SAMPLING
Definition:
"A measurement technique for the quantitative analysis of an random/irregularly occurring activity."

MEANING OF WORK SAMPLING

Work sampling is based on the theory that the characteristics of a sufficiently large sample represent the
actual characteristics of entire population. Work sampling operates by an observer taking a series of
random observations on a particular "item" of interest (machine, operating room, dock, etc.) to observe its
"state" (working, idle, sleeping, empty, etc.). When enough samples are taken, an analysis of the
observations yields a statistically valid indication of the states for each thing analyzed.
Assume, for example, that you wish to determine the proportion of time a factory operator is working or
idle. Also assume that 200 random observations were made of the operator and during 24 of these he or
she was observed to be idle. From the random samples of his state you conclude that the individual is
working 176/200 = 88% of the time.

ADVANTAGES OF WORK SAMPLING

It is relatively easy, simple and inexpensive to use and extremely helpful in providing a deeper
understanding of all types of operations.
When properly used, it can help pinpoint those areas, which should be analyzed in further detail and can
serve as a measure of the progress being made in improving operations.

QUESTIONS OF WORK SAMPLING STUDY

What is our equipment/asset utilization?

When we are not adding value to the product, how are we spending our time?
How are our inter-dependent systems performing?
Where should we focus our continuous improvement activities?

DISTINCTION BETWEEN WORK SAMPLING AND "TIME STUDIES"

Before we set out to analyse the distinctions between work sampling and time studies, let us understand
that the two are as different as chalk and cheese. The purpose of each is different and one can not be
substituted by the other in most cases. While work sampling is a broad analysis of trend, time study is
microanalysis of the job and procedure. Time study is conducted with a view to improve the
process/method where as work sampling is done to improve quantitative utilisation of resources.
Work sampling is relatively cheaper because it uses random samples instead of continuous
observations.
Many operators or machines can be studied by a single observer
Work sampling normally spans over several days or weeks, thus minimizing the effects of sudden
variations on a particular day.
Work Sampling tends to minimize operator behaviour modification during observation (operator,
deliberately or otherwise, under or over performing while under observation).
Work Sampling, in general, does not require a trained time-study analyst to take the observations.
Also, stopwatches or other timing devices are not required. Many studies make use of off-shift
technicians or operators to take the observations.

WORK SAMPLING METHODOLOGY

An analyst RANDOMLY observes an activity (equipment, operating room, production line) and notes the
particular states of the activity at each observation.
The ratio of the number of observations of a given state of the activity to the total number of observations
taken will approximate the percentage of time that the activity is in that given state.
Randomness of observations is very critical for a work sampling study. The observations should vary
over the time of the day, days of the week and if possible, months to get he correct trend.

RECRUITMENT
Definition:
Recruitment is the process of finding and attracting capable applicants for a job to create a pool from
which selection is to be made of the most suitable candidates.
The Process begins when new recruits are sought and ends when their applications are submitted. Though
theoretically recruitment process is said to end with the receipt of applications, in practice, the activity
extends to the screening of applications so as to eliminate those who are not qualified for the job. The
result is a pool of applicants from which selections for new employees are made.

PURPOSE AND IMPORTANCE

1.
2.
3.
4.
5.

To broad base the applicant pool in order to get the right talent at the affordable cost.
Increase the pool of job candidates at minimum cost
Help increase success rate of selection process by reducing number of under-qualified or overqualified applications.
Meet legal and social obligations
Identify and prepare potential job applicants

FACTORS AFFECTING RECRUITMENT

External Factors:
1.
Demand and Supply status of specific skills set.
2.
Unemployment Rate (Area-wise)
3.
Labour Market Conditions
4.
Political and Legal Environment (Reservations, Labour laws)
5.
Companys Image
Internal Factors:
1.
Recruitment Policy (Internal Hiring or External Hiring?)
2.
Human Resource Planning (Planning of resources required)
3.
Size of the Organization (Bigger the size lesser the recruitment problems)
4.
Cost
5.
Growth and Expansion Plans

RECRUITMENT PROCESS
1.

Recruitment Strategy Development

(a)
Trained or untrained (to be trained at companys expense)
(b)
Internal or external sourcing
Internal Recruitment (Source 1)
(i)
Present employees
(ii)
Employee referrals
(iii)
Transfers & Promotions
(iv)
Former Employees
(v)
Previous Applicants

2.
3.
4.
5.

External Recruitment (Source 2)

(i)
Professionals or Trade Associations
(ii)
Advertisements
(iii)
Employment Exchanges
(iv)
Campus Recruitment
(v)
Walk-ins Interviews
(vi)
Consultants
(vii) Contractors
(viii) Displaced Persons
(ix)
Radio & Television
(x)
Acquisitions & Mergers
Recruitment Planning
(a)
Number of applicants sought (Based on past experience)
(b)
Types of applicants to be called (Qualification, category, area, etc)
Searching
(a)
Source activation
(b)
Selling
Screening of Applications
Evaluation and Cost Control
(a)
Salary Cost
(b)
Management & Professional Time spent
(c)
Advertisement Cost
(d)
Producing Supporting literature
(e)
Recruitment Overheads and Expenses
(f)
Cost of Overtime and Outsourcing
(g)
Consultants fees

EVALUATION OF RECRUITMENT PROCESS

1.
2.
3.
4.
5.
6.

1.
2.
3.
4.

Return rate of each source of recruitment

Selection rate from each source
Retention and Performance of selected candidates
Recruitment Cost
Time lapsed data
Image projection
INTERNAL RECRUITMENT
Advantages
Disadvantages
Less Costly
1. Old concept of doing things
Candidates already oriented towards 2. It abets raiding
organization
3. Candidates current work may be
Organizations have better knowledge
affected
about internal candidates
4. Politics play greater roles
Employee morale and motivation is 5. Morale problem for those not
enhanced
promoted.

EXTERNAL RECRUITMENT
Advantages
Disadvantages
1. Benefits of new skills, talents and Ideas 1. Better morale and motivation

2. Benefits of new experiences

associated with internal recruiting is
3. Compliance with reservation policy
denied
becomes easy
2. It is costly method
4. Scope for resentment, jealousies, and 3. Chances of creeping in false positive
heartburn are avoided.
and false negative errors
4. Adjustment of new employees takes
longer time.

SELECTION
MEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under:
Selection is the process of differentiating between applicants in order to identify and hire those with a
greater likelihood of success in a job.

RECRUITMENT Vs SELECTION: DIFFERENCE

Recruitment
Selection
1. Recruitment refers to the process of
1. Selection is concerned with picking up
identifying and encouraging people
the right candidates from a pool of
with required qualifications to apply for
applicants.
job.
2. Selection on the other hand is negative
2. Recruitment is said to be positive in its
in its application in as much as it seeks
approach as it seeks to attract as many
to eliminate as many unqualified
candidates as possible.
applicants as possible in order to
identify the right candidates.

PROCESS / STEPS IN SELECTION

1. Preliminary Interview :
This is a short interview. The purpose of preliminary interviews is to
weed out the prima facie misfit applicants. It is also called courtesy interview and is a good public
relations exercise.
2. Selection Tests : Jobseekers who pass the preliminary interviews are called for tests. There are
various types of tests conducted depending upon nature of job and the company. These tests can be
Aptitude Tests, Personality Tests and Ability Tests and are conducted to judge how well an
individual can perform tasks related to the job. Besides this, there are some other tests also like
Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric
Tests etc.
3. Employment Interview : The next step in selection is employment interview. Here, interview is a
formal and in-depth conversation to assess applicants suitability. It is considered to be an
excellent selection device. Interview type and pattern can vary greatly. Interviews can be One-toOne, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioural Interviews, Stress Interviews.
4. Reference & Background Checks : Reference checks and background checks are conducted
for provisionally identified candidates to verify the information provided by them. Reference
checks can be through formal letters or telephonic. However, it is more of a formality and
selections decisions are very seldom affected by it.
5. Selection Decision :
After obtaining all the information, selection decision is made. The final
decision has to be made out of applicants who have been identified as suitable. The views of line
managers carry much weight at this stage because it is they who are eventually responsible for the
performance of the new employee. Considering the job climate, often more than required number
is selected to cater for any selected candidate withdrawing at the job offer stage.

6. Physical Examination :
After the selection decision is made, the candidate is required to
undergo a physical fitness test. A job offer is often contingent upon the candidate passing the
physical examination.
7. Job Offer :
The next step in selection process is job offer to those applicants who have
successfully passed all tests. It is made by way of letter of appointment.
8. Contract of Employment :
After the job offer is made and candidates accept the offer, certain
documents are needed to be executed by the employer and the candidate. A formal contract of
employment, containing written contractual terms of employment etc are signed by both sides.

GOOD SELECTION PRACTICE: ESSENTIALS

1. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and
line management should be available with Selection Board.
2. Train the selectors to assess the right attributes in applicants.
3. Determine aids to be used for selection process.
4. Check competence of recruitment consultants before hiring their services.
5. Involve line managers at all stages
6. Attempt to validate the procedure regularly
7. Help the appointed candidate to succeed by training and management development

BARRIERS TO EFFECTIVE SELECTION

1. Plethora of Human Traits : Success in any job is more a function of attitude than aptitude. The
tests are validated over a period of time to differentiate between the employees who can perform
well and those who will not. Yet, no test can claim 100% success in finding the right employee.
2. Pressure : Pressure brought on selectors by management, politicians, bureaucrats, relatives, friends
and peers to select particular candidate are also barriers to effective selection.
3. Time and Cost : Often the time and funds available to undertake selection process are limited
forcing the selectors to forego certain tests.

TRAINING & DEVELOPMENT

Training and development, though are spoken in the same breadth, are quite different. Training generally
refers to teaching of new skill in professional field of the employee. Like an employee being taught to
operate another machine, or to perform a new operation in the same machine. Development refers to
enhancement of personal qualities of the employee which do not have a one to one relationship with his
current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons,
meditation exercises, soft skills training, etc. While training is expected to reward the company
immediately in terms of better productivity of employee, Development does not lead to any immediate
and tangible benefits to the company. At the best, there might be some intangible benefits in the long run,
like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on medical
ground, etc.
Dividing line between training and development is expectation of immediate benefits. Thus, in case a
program, generally qualifying as development program, is directly related to employees job skills, like
Communication Skills course for telephone attendant or receptionist, will qualify as training and not as
development. Same program for some one in back office would be termed as Development program.
Education: It is a theoretical learning in classrooms. The purpose of education is to teach theoretical
concepts and develop a sense of reasoning and judgment. Any training and development program must
contain an element of education.
Definition of Training & Development
Training & Development is any attempt to improve current or future employee performance by
improving his performance capabilities and potential through learning, usually by changing the
employees attitude or increasing his or her skills and knowledge.
The need for Training and Development is determined by the employees performance deficiency,
computed as follows.
Training & Development Need = Standard Performance Actual Performance

OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP)

1. To make the managers

Self-starters

Committed

Motivated

Result oriented

Sensitive to environment

Understand use of power

2. Creating self awareness
3. Develop inspiring leadership styles
4. Instil zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

TRAINING AND DEVELOPMENT: DIFFERENCE

Training
Training is skills focused
Training is presumed to have a formal
education
Training needs depend upon lack or
deficiency in skills
Trainings are generally need based
Training is a narrower concept focused on
job related skills
Training may not include development

Development
Development is creating learning abilities
Development is not education dependent

Development depends on personal drive

and ambition
Development is voluntary
Development is a broader concept focused
on personality development
Development includes training wherever
necessary
Training is aimed at improving job related Development aims at overall personal
efficiency and performance
effectiveness (including job efficiencies)

IDENTIFICATION OF TRAINING NEEDS

Individual Training Needs Identification
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales
Group Level Training Needs Identification
1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes
Benefits of Training Needs Identification
1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done

METHODS OF TRAINING

On the Job Trainings (OJT): When an employee learns the job in actual working site in real life
situation, and not simulated environment, it is called OJT. Employee learns while working. Take the
instance of roadside mechanics. Small boys working there as helpers learn while helping the head
mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine
models.
Disadvantages of On-the-Job Training:
1.
Trainer may not be experienced enough to train or he may not be so inclined.
2.
It is not systematically organized
3.
Poorly conducted programs may create safety hazards
On the Job Training Methods
1.
2.
3.
4.
5.

Job Rotation: Refer page 27.

Job Coaching: An experienced employee can give a verbal presentation to explain the
nitty-grittys of the job.
Job Instruction: It may consist of an instruction or directions to perform a particular task
or a function. It may be in the form of orders or steps to perform a task.
Apprenticeships: Generally fresh graduates are put under the experienced employee to
learn the functions of job.
Internships and Assistantships: Interns or assistants are recruited to perform specific
time-bound jobs or projects during their education.

Off the Job Training: Trainings conducted in simulated environments, classrooms, seminars, etc are
called Off the Job Training.
Advantages of Off-the-Job Training
1.
Trainers are usually experienced enough to train
2.
It is systematically organized
3.
Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
1.
It is not directly in the context of job
2.
It is often formal
3.
It may not be based on experience.
4.
It is expensive.
5.
Trainees may not be much motivated
6.
It is artificial in nature
Off the Job Training Methods
1. Classroom Lectures: Advantage It can be used for large groups. Cost per trainee is low.
Disadvantages Low interest of employees . It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to lead to boredom for
employees.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc.
Advantages Wide range of realistic examples, quality control possible. Disadvantages
One-way communication, No feedback mechanism. No flexibility for different audience.
3. Simulation: Creating a real life situation for decision-making and understanding the actual job
conditions give it. Ensures active participation of all trainees. Can be very effective but
needs good conductors.

4. Case Studies: It is a written description of an actual situation in the past in same organisation
or some where else and trainees are supposed to analyze and give their conclusions in
writing. This is another excellent method to ensure full and whole hearted participation of
employees and generates good interest among them. Case is later discussed by instructor
with all the pros and cons of each option. It is an ideal method to promote decision-making
abilities within the constraints of limited data.
5. Role Plays:
Here trainees assume the part of the specific personalities in a case study and
enact it in front of the audience. It is more emotional orientation and improves
interpersonal relationships. Attitudinal change is another result. These are generally used in
MDP.
6. Sensitivity Trainings: This is more from the point of view of behavioural assessment as to
how an individual will conduct himself and behave towards others under different
circumstances. There is no pre-planned agenda and it is instant. Advantages increased
ability to empathize, listening skills, openness, tolerance, and conflict resolution skills.
Disadvantage Participants may resort to their old habits after the training.
7. Programmed Instructions:
Provided in the form of blocks either in book or a teaching
machine using questions and feedbacks without the intervention of trainer. Advantages
Self paced, trainees can progress at their own speed, strong motivation for repeat learning,
material is structured and self-contained. Disadvantages Scope for learning is less; cost
of books, manuals or machinery is expensive.
8. Computer Aided Instructions:
It is extension of PI method, by using computers.
Advantages Provides accountabilities, modifiable to technological innovations, flexible
to time. Disadvantages High cost.
9. Laboratory Training.

BARRIERS TO EFFECTIVE TRAINING

1.
2.
3.
4.
5.

Lack of Management commitment

Inadequate Training budget
Large scale poaching of trained staff
Non-cooperation from workers
Unions influence

HOW TO MAKE TRAINING EFFECTIVE

1.
2.
3.
4.
5.
6.

Management Commitment
Integration of Training with Business Strategies
Comprehensive and Systematic Approach
Continuous and Ongoing approach
Promoting learning as fundamental value
Creations of effective training evaluation system

I N D U C T I O N & O R I E N T AT I O N
Induction and Orientation are the procedure that a new employee has to go through in the organisation.
Every employee starting from the lower most, say, from peon to CEO, need orientation course when they
join the organisation. A new employee carries with him a lot of apprehension about place, job, colleagues,
organisational culture, and so on. On the day of reporting, he needs to know his office/work place,
routine, amenities, functional and reporting channels, etc.
Definition
It is a Planned Introduction of employees to their jobs, their co-workers and the organization per se.
Difference Between Induction and Orientation
Induction refers to formal training programs that an employee has to complete before he is put on job.
Like in Military, before a new recruit is sent to border, he is trained for a few months in Drill/Parade,
physical fitness, weapon handling, etc. This is called Induction.
Orientation is the information given to the new employees to make him aware of the comfort issues where the facilities are, what time lunch is, who are the people he would be working with and so forth.
Orientation conveys following information:
1. Organisations geography/layout
2. Organisational set up (Structure)
3. Daily Work Routine
4. Organization Profile, History, Objectives, Products and Services, etc
5. Introduction to colleagues/immediate superiors and subordinates.
6. Importance of Jobs to the organization
7. Detailed Orientation Presentation covering policies, work rules and employee benefits.

PURPOSE OF ORIENTATION
The idea of Orientation programme is to make the new employees feel at home in new environment.
Any employee while joining a new organisation is anxious about the new set-up, new colleagues, his own
performance vis a vis other more experienced employees in the organisation, his work place, his exact
responsibilities, etc. A structured information and introduction system will make his transitory period
short and reduce his anxiety quickly. He will begin to perform to his potential quickly.

TYPES OF ORIENTATION PROGRAMS

1. Formal or Informal:
In informal orientation, new employees are put on the jobs and they are
expected to acclimatise themselves with the work and the organisation. In contrast, in formal
orientation, an employee goes through a structured introduction programme.
2. Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over
the position to the new incumbent. It becomes disjunctive when the new employee occupies a
vacant position with no one to hand him over the position. He learns the prevalent practices and
history slowly from his subordinates and superiors on gradual basis.
3. Investiture or Divestiture: This is the final strategic choice which relates to decision regarding
allowing the new employees to affect the organisation with his identity/ideas/functional methods
or asking him to modify his identity to merge with existing culture of the organisation. This is

more applicable to high positions who may have been hired with a view to bring in their
experiences and methods of management to the organisation.
How long should the induction process take?
It starts when the job ad is written, continues through the selection process and is not complete until the
new team member is comfortable as a full contributor to the organization's goals.
The first hour on day one is a critical component - signing on, issuing keys and passwords, explaining no
go zones, emergency procedures, meeting the people that you will interact with all have to be done
immediately. Until they are done the newcomer is on the payroll, but is not employed.
After that it is a matter of just in time training - expanding the content as new duties are undertaken.
We only employ new people one at a time - how can we induct them?
There are some issues, which cannot wait - they vary according to your situation. Perhaps a buddy system
on the job may be the best way to deal with such situations. (This is a system being followed by many US
universities receiving lot of foreign students. A local student is given a foreign student as buddy to help in
all matters in the initial days.) Other subjects may be incorporated with refresher training for current staff,
or handled as participant in an outside program. Perhaps some can wait until there are groups of people
who have started in the last few months.
This may take some creative thinking, but the answer is quite simple - until the new people are integrated,
they are less useful. The mathematics of Induction and orientation is often amazingly simple - not
investing time and money to train costs more than training would.

M U LTI S K I L L I N G
Definition
Multi-Skilling- the ability of an employee to perform more than one function or the cross-training of an
employee in several disciplines or tasks.
Multi-Skilling is training of an employee to be able to do more than one job with equal dexterity.
Multi-Skilling is immensely beneficial to any organisation. Apart from flexibility to redeploy man power
as per changing needs, it also keeps the labour costs low. Many complex jobs require different skills to
accomplish though involvement of each skill may be for very short duration. Thus, in absence of multiskilled workers, the team becomes very large and there is inadequate utilisation of team members. But, if
the team members are multi-skilled, team size can be kept small and thus the labour cost in minimised. In
addition, often job is accomplished much faster with better quality as no time is lost in explaining the job
requirements by one team member to another with attendant risks of misunderstanding and rework. Bank
tellers are examples of multi-skilling. Result is much faster service.
Imagine the state of extension counters of banks at school or college premises which are operated by just
one or two employees. Those one or two people perform all the functions which take up to 7 -8 people in
bigger branches. Opening the bank, opening new account, attending queries, accepting deposits and
dispensing cash, verification of signatures, maintaining account books and many other tasks are done by
them. If such multi-skilling was not available with the banks, such branches would have become unviable.
Even in the larger branches,
Advantages of Multi-Skilling (Tangible Benefits)
1. Work force is more flexible.
2. Smaller team size for complex tasks requiring multiple skills.
3. Faster job
4. Labour cost economy
5. Employees can assume other tasks when there is absenteeism.
6. Employees can be moved into other positions in case of overload of any department.
Advantages of Multi-Skilling (Intangible Benefits)
1. Employees become more aware of the workflow.
2. Employees are better prepared to anticipate problems or requirements of other areas.
3. A new employee at a job may have new ideas to fine-tune that job.
4. Employees overcome feelings of having a dead-end job.
5. Jobs remain interesting and challenging.
6. Tedious tasks can be spread around, decreasing turnover.
7. Boredom in the workplace is reduced.
8. Cohesiveness is enhanced.
Disadvantages of Multi-Skilling
1. Possible reduction in productivity during the training period/longer training period.
2. Increased supervisory time is required until the employee is up to speed.
3. Competence assessments may be more detailed than in traditional systems.
4. Chances of partial skilling in various jobs instead of fully skilled in any one.

CHANGE MANAGEMENT
ChangeManagementisaCriticalHRProfessionalSkill
Definitions:
1.

Theadoptionofanewideaorbehaviourbyanorganization.

2.

Alterations in People, Structure and Technology

Change has become inevitable due to: (a)

Technology
(b)
Competition
(c)
Growing customer needs
(d)
Environment
(e)
Politics
HRsroleinthechangeprocessistohelpforecastfuturechanges,developsystemsandpolicies for
managinghumancapitalbefore,during&afterthechange.
Change can be classified as follows: Structural Changes
Authority
Coordination
Centralization

Technological Changes
Processes
Methods
Equipments

People Changes
Attitudes
Expectations
Behaviours

INTERNAL FORCES OF CHANGE

1.
2.
3.
4.

Corporate Strategies
Workplace
Technology and Equipments
Employee Attitudes

CHANGE AGENTS (WHO CAN BRING ABOUT CHANGE?)

1.
2.
3.

Managers
External Consultants
Staff Specialists

PROCESS OF CHANGE
LewinsThreeStepProcedureofChange
1.
Unfreeze present level of behaviour
2.
Movement from present to new
3.
Refreezingprocess
KottersChangeManagementModel
1.
Unfreeze
2.
EstablishSenseofUrgency
3.
FormPowerfulGuidingCoalition
4.
CreatetheVision
5.
CommunicatetheVision

RESISTANCE/BARRIERS TO CHANGE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Fearofuncertaintyorunknown
Fearofeconomicloss
Socialpressures/peerpressure
Perceivedinconveniences
Fearoflossofpower
Needfornewstyles/skills/knowledge
Resistancefromgroups
Organisationalculture
Feelingofinsecurity
Lackofincentives

TECHNIQUES OF REDUCING RESISTANCE

1.
2.

Educationthroughcommunication
Participation of affected people from beginning rather than at the end. Making the potential
hardlinersamemberofthecommitteedesigningthechange.
3.
Facilitationthroughsupporttopeopletoovercomethebluesofchange
4.
NegotiationGiveandtakeattitude
5.
Manipulationcooption
6.
Explicitorimplicitcoercion
Mixedstrategiesareusedtoovercomechange

FOUR PHASES OF TRANSITION- OLD TO NEW

1.

Denial
Diagnosis:

Commontoobservewithdrawal;focusingonthepast;increasedactivity
withreducedproductivity.
Management: Confrontwithinformation;reinforcerealityofchange;explainwhatthey
cando;givethemtime.

2.

3.

4.

Resistance
Diagnosis: Anger,blame,depression,resentment,continuedlackofproductivity.
Management: Listen,acknowledgefeelings,beempathetic;helppeopletosaygoodbyto
the old; sometimes ritual is important. Offer rewards for change, be
optimistic.
Exploration
Diagnosis: Confusion,chaos;energy;newideas;lackoffocus.
Management: Facilitate brainstorming,planning,helppeopletoseeopportunity,create
focusthroughshorttermwins.
Commitment
Diagnosis:

Enthusiasm&cooperation;peopleidentifywithorganization;lookfornew
challenges.
Management: Setlongtermgoals;rewardthosewhohavechanged.

ORGANIZATIONAL DEVELOPMENT TECHNIQUES

Survey Feedback
Sensitivity Training
Process Consultation
Team Building
Inter-group Development
Conditions Facilitating Change
Dramatic Crisis
Leadership Change
Weak Culture
Young and Small Organization (ageing)
The Road to Change in Culture
Analyze the culture
Need for change
New leadership
Reorganize
Restructure
New stories and rituals
Change the job systems

TQM V/S. REENGINEERING

TQM (Total Quality Management)
Continuous Change
Fixing and Improving
Mostly focused on As-Is
Systems indispensable
Bottom to Top

Re engineering
Radical and One time Change
Redesigning
Mostly focused on what can be?
Top to Bottom

Managing Downsized Workforce

Open and honest communication
Assistance to them
Help for survivors of the downsized
Stress in Workplace
Opportunities stress
Demands stress
Constraints stress

HOW TO REDUCE WORKPLACE STRESS

Biggest source of stress is Uncertainty. Quite often worst of the result is less painful than the anxiety
waiting for it. If you can reduce uncertainty, stress will automatically reduce. However, reducing
uncertainty is not always possible. Some of these methods can be employed to reduce work place stress: 1.
Organizational communication: Clear and prompt communication of policies and decisions can
help in keeping the stress within manageable limits.
2.
Performance Assessment is another source of anxiety. Clear predefined performance parameters
will take the uncertainty out of assessment and also anxiety.

3.
4.
5.

Job Redesign, especially when processes change, jobs merging, and relocation happens
Employee Counselling
Time management programs for employees:
In the busy life of today, time management is
another source of stress for a lot of employees. Time management programs will allow them to fill
in more events into their daily life and reduce stress.

WHY CHANGE MANAGEMENT?

Change is the only constant in todays world. And the rate of change is faster than ever. You can not
escape change. The choice is - You can bring the change yourself at your pace, place and time, or Allow it
to overcome you at its own choosing of time, place and pace. Fighting against change can slow it down or
divert it temporarily, but it won't stop. If you wish to succeed in this rapidly changing new world "you
must learn to look at change as a friend - one who presents you with an opportunity for growth and
improvement." Earlier you change, higher the benefits. Those who recognise the changing trends and
change simultaneously are successful. Those who anticipate/foresee the impending change and prepare
according are the ones who are hugely successful. But those who lead the change are the ones who make
the fortune.
The rate of change in today's world is constantly increasing. Rate of obsolescence and therefore
replacement is increasing. New, better, safer and cheaper products are entering the market at constantly
decreasing interval. Changes in technology is leading to changes in business models and customer
behaviour. True success and long-term prosperity in the new world depends on your ability to adapt to
different and constantly changing conditions.
But despite all this, basic human nature, that resists change, is still intact. Any attempt to bring change is
fiercely resisted. And if the resistance is not well managed, it can be catastrophic for the organisation.
Therefore, change management assumes criticality.

EVOLUTIONARY (PLANNED) CHANGE VERSUS REVOLUTIONARY

(FORCED) CHANGES
How you change a business unit to adapt to shifting economy and markets is a matter of management
style. Evolutionary change, that involves setting direction, allocating responsibilities, and establishing
reasonable timelines for achieving objectives, is relatively painless. However, it is rarely fast enough or
comprehensive enough to move ahead of the curve in an evolving world where stakes are high, and the
response time is short. When faced with market-driven urgency, abrupt and sometimes disruptive change,
such as dramatic downsizing or reengineering, may be required to keep the company competitive. In
situations when timing is critical to success, and companies must get more efficient and productive
rapidly, revolutionary change is demanded.
When choosing between evolutionary change and revolutionary action, a leader must pursue a balanced
and pragmatic approach. Swinging too far to revolutionary extreme may create "an organizational culture
that is so impatient, and so focused on change, that it fails to give new initiatives and new personnel time
to take root, stabilize, and grow. What's more, it creates a high-tension environment that intimidates rather
than nurtures people, leaving them with little or no emotional investment in the company."

CREATING CHANGE FOR IMPROVEMENT AND COMPETITIVE

ADVANTAGE
Change creates opportunities, but only for those who recognize and seize it. "Seeing is the first step,
seizing the second, and continuously innovating is the third." Innovation redefines growth opportunities.
As current products are becoming obsolete faster than ever, in order to survive and prosper, organizations
continually need to improve, innovate and modify their products and services. The Silicon Valley slogan
"Eat lunch and you are lunch" is more than a reflection of increasingly intense work ethic. Riding the
wave of change is becoming the most important part of the business. While the economy is shifting and
innovation is rampant, "doing it the same way" is a recipe for corporate extinction.1
Successful change efforts are those where the choices both are internally consistent and fit key external
and situational variables. "You have to find subtle ways to introduce change, new concepts, and give
feedback to people so that they can accept and grow with it."

PERFORMANCE APPRAISALS
WHAT IS PERFORMANCE APPRAISAL?
Performance Appraisals is the assessment of individuals performance in a systematic way. It is a
developmental tool used for all round development of the employee and the organization. The
performance is measured against a number of factors. These factors can be divided into two groups.
(a)
General personality such as initiative, leadership qualities, dependability, team spirit, etc.
(b)
Professional qualities like job knowledge, quality and quantity of output, versatility and
so on.
Factors vary from organization to organization and job to job. For a soldier, courage and endurance are
more important factors. But for the Army General, his tactical abilities are more important. On the other
side, a foreman in a factory would never be assessed for his courage. Assessment is often not confined to
past performance but checks for potential performance also. The second definition brings in focus
behaviour because behaviour affects not only employees performance but even his peers and
subordinates.
Definition 1: It is a systematic evaluation of an individual with respect to present performance on the job
and his potential.
Definition 2: It is formal, structured system of measuring/evaluating job related behaviours and
outcomes to discover how an employee has performed on the job and how he can perform more
effectively in future so that employee, organization and society, all benefits.

PERFORMANCE APPRAISALS AND JOB ANALYSIS RELATIONSHIP

Job Analysis
Describes the work and
personnel requirement of a
particular job

Performance Standard
Translate job requirements
into levels of acceptable or
unacceptable performance

Performance Appraisal
Describe the individuals
past performance, suitability
and potential.

Objectives: Performance appraisals are used as a basis for following activities: 1.

2.
3.
4.
5.
6.
7.

Promotions
Confirmations
Training and Development program planning
Compensation reviews
Competency building
Evaluation of HR Programs
Feedback & Grievances

PERFORMANCE APPRAISAL PROCESS

1. Setting Objectives and Standards of performance
2. Design an appropriate appraisal program Appraisal program for different levels of employees would
be different.
3. Performance Interviews
4. Appraise and record the performance
5. Use and store data for appropriate purposes
6. Identify opportunities variables

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of performance appraisals.
Each of the methods is effective for a particular class of employees in certain types of organization only.
Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods

Future Oriented Methods

PAST ORIENTED METHODS

1. Rating Scales:
This is simplest and most popular method. Rating scales consist of grading an
employees past performance on a scale of say 1 -10. Each of the selected performance attribute is
numerically marked and then totalled to arrive at the final figure. Advantages Adaptability, easy to use,
low cost, every type of job can be evaluated, large number of employees covered, no formal training
required. Disadvantages Raters biases.
2. Checklist: Under this method, checklist of Statements of Traits of employee in the form of Yes or
No based questions is prepared. Here, the rater only does the reporting or checking and HR department
does the actual evaluation. Advantages economy, ease of administration, limited training required,
standardization. Disadvantages Raters biases, use of improper weights by HR Deptt, does not allow
rater to give relative ratings.
3. Forced Distribution Method:
One of the problems faced in large organizations is relative
assessment tendencies of raters. Some are too lenient and others too severe. This method overcomes that
problem. It forces every one to do a comparative rating of all the employees on a predetermined
distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in
Average Grade, 20% in Below Average Grade and 10% in Unsat grade. The real problem of this method
occurs in organizations where there is a tendency to pack certain key departments with all good
employees and some other departments with discards and laggards. Relatively good employees of key
departments get poor rating and relatively poor employees of laggards departments get good rating.

10%
20%
Unsat Below Avg

40%
Average

20%
Good

10%
Excellent

4. Field Review Method:

This method is useful only for senior positions in a large organisation
spread over cities and countries. Appraisal is done by someone outside employees own department
usually from corporate or HR department. Advantages Useful for managerial level promotions, when
comparable information is needed, on employees working at distant locations in different set of

conditions. Disadvantages Outsider is generally not familiar with employees work environment,
Observation of actual behaviours not possible.
5. Performance Tests & Observations:
This is based on the test of knowledge or skills. The tests
may be written or an actual presentation of skills. Tests must be reliable and validated to be useful.
Advantage Tests only measure potential and not attitude. Actual performance is more a function of
attitude of person than potential. Disadvantages Some times costs of test development or administration
are high.
6. Confidential Reports: Though popular with government departments, its application in industry is
not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is
highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.
Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because
the evaluations are linked to future rewards like promotions, good postings, etc.
7. Essay Method: In this method the rater writes down the employee description in the form of an
essay. Advantage It is extremely useful in filing information gaps about the employees that often occur
in a better-structured checklist. Disadvantages It its highly dependent upon the writing skills of rater and
most of them are not good writers. Moreover, it is also time consuming and therefore affects full
assessment. Also, comparative or relative performance among employees is not clearly demarcated.
8. Cost Accounting Method: Here performance is evaluated from the monetary returns yield to his or
her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence, it is
more dependent upon cost and benefit analysis.
9. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of
different methods that compare performance with that of other co-workers. The usual techniques used
may be ranking methods and paired comparison method.
Ranking Method: Superior ranks his worker based on merit, from best to worst. However
how best and why best are not elaborated in this method. It is easy to administer.
Paired Comparison Method: In this method each employee is paired with every other
employee in the same cadre and then comparative rating done in pairs so formed. The number of
comparisons may be calculated with the help of a formula N x (N-1) / 2. The method is too
tedious for large departments and often such exact details are not available with rater.

FUTURE ORIENTED METHODS

1.

Management By Objectives (MBO): Performance is rated against the achievement of

objectives mutually agreed by the employee and the management. Advantage It is direct and
accurate and transparent.
Disadvantages Applicable only to quantifiable jobs. Short-term goals given preference at the cost of
long-term goals etc.
2.
Psychological Appraisals: These appraisals are more directed to assess employees potential for
future performance rather than the past one. It is done in the form of in-depth interviews, psychological
tests, and discussion with supervisors and review of other evaluations. It is more focused on employees

emotional, intellectual, and motivational and other personal characteristics affecting his performance. This
approach is slow and costly and may be useful for bright young members who may have considerable
potential. However quality of these appraisals largely depends upon the skills of psychologists who
perform the evaluation.
3.
Assessment Centres:
This technique was first developed in USA and UK in 1943. An
assessment centre is a central location where managers may come together to have their participation in
job related exercises evaluated by trained observers. It is more focused on observation of behaviours
across a series of select exercises or work samples. Assessees are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job.
Disadvantages Concentrates on future performance potential. No assessment of past performance.
Costs of employees travelling and lodging, psychologists. Ratings strongly influenced by assessees interpersonal skills. Solid performers may feel suffocated in simulated situations.
Advantages Well-conducted assessment centre can achieve better forecasts of future performance and
progress than other methods of appraisals. Also reliability, content validity and predictive ability are said
to be high in Assessment Centres. The tests also make sure that the wrong people are not hired or
promoted. Finally, it clearly defines the criteria for selection and promotion.
4.
360-Degree Feedback: It is a technique in which performance data/feedback/rating is collected
from all sections of people employee interacts in the course of his job like immediate supervisors, team
members, customers, peers, subordinates and self with different weightage to each group of raters. This
technique has been found to be extremely useful and effective. It is especially useful to measure interpersonal skills, customer satisfaction and team building skills. One of the biggest advantage of this system
is that assesssees can not afford to neglect any constituency and has to show all-round performance.
However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening,
expensive and time consuming.
Purpose of performance evaluation is to make sure that employees goals, employees behaviour and
feedback about performance are all linked to the corporate strategy.

ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM:

1.
2.
3.
4.
5.
6.
7.
8.

Standardized Performance Appraisal System

Defined performance standards Bench Marks
Uniformity of appraisals
Trained Raters
Use of relevant rating tools or methods
Should be based on job analysis
Use of objectively verifiable data
Avoid rating problems like halo effect, central tendency, leniency, severity etc.

9. Consistent Documentations maintained

10. No room for discrimination based on cast, creed, race, religion, region etc.

Problems of Rating:
1.
2.
3.
4.
5.
6.
7.
8.

Leniency & Severity Either too lenient or too severe. All good or all bad.
Central Tendency Majority is crowded around average.
Halo/Gholem Effect Entire assessment is affected by one or few aspects.
Rater Effect Favouritism, stereotyping, hostility, etc, kind of biases.
Primacy & Recency Effect Early period or near end period behaviour effects.
Perceptual Sets Effects of old beliefs about groups, regions, groups, etc
Spill-over Effects Effects of previous appraisal affecting recent appraisal
Status Effect High esteemed or low esteemed job bearing on the appraisal.

HUMAN RESOURCE AUDIT

NATURE OF HR AUDIT
HR Audit is a tool for evaluating the personnel activities of an organization. The audit may include one
division or entire company. It gives feedback about HR functions to operating managers and HR
specialists. It also shows how well managers are meeting HR duties.
In short HR audit is an overall control check on HR activities in a division or a company and evaluation of
how these activities support organizations strategy.

BASIS OF HR AUDIT(PERSONNEL RESEARCH)

1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisors effectiveness
5. Industrial dispute settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10. Accident frequency surveys

BENEFITS OF HR AUDIT
1. Assessment of contributions of HR department
2. Improvement of professional image of HR department
3. Encouragement of greater responsibility and professionalism among HR members
4. Clarification of HR duties and responsibilities
5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems
7. Ensuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
9. Creation of increased acceptance of changes in HR department
10. A thorough review of HR information systems

SCOPE AND TYPES OF HR AUDIT

HR Audit must cover the activities of the department and even extend beyond because the people
problems are not confined to HR department alone. Based on this, HR audit can be spread across
following four different categories.
1.
Human Resource Function Audit
2.
Managerial Compliance Audit
3.
Human Resource Climate Audit
(a)
Employee Turnover
(b)
Absenteeism
(c)
Accidents
(d)
Attitude Surveys
4.
HR - Corporate Strategy Audit

APPROACHES TO HR AUDIT
1.
2.
3.
4.
5.

Comparative Approach (Benchmarking with another company)

External Authority Approach (Outside consultants standards)
Statistical Approach (Statistical measures and tools)
Compliance Approach (Legal and company policies)
Management By Objectives Approach (Goals & Objectives based)

M O T I V AT I O N T H E O R I E S
Performance is a function of ability and motivation. P = f (A x M)
Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.

MOTIVATION PROCESS (6 STEPS)

1.
2.
3.
4.
5.
6.

Identify Individuals Needs

Search for ways to satisfy needs
Goal & Objectives directed
Increased performance
Receiving rewards or punishment
Reassessment of needs

CRITICALITY OF MOTIVATION TO MANAGERS

Manager is responsible for improving the productivity of his subordinates and ensuring that his they
contribute towards the objective and mission of the organisation. It is only possible when employees
perform at their maximum efficiency level. Motivation is a tool to achieve high level of performance
from employees. Depending upon the direction, motivation can achieve one or more of the objectives
below: 1.
Motivation improves productivity.
2.
Motivation stimulates both participation and production at work
3.
Motivation helps employees find new ways of doing a job
4.
Motivation makes employees quality conscious
5.
Motivation improves job related behaviour.
6.
Motivation increases attention towards human resources along with physical resources

CHALLENGES OF MOTIVATION
1.
2.
3.
4.

Diverse and changing workforce

Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies
Motives can only be inferred, not seen
Dynamic nature of human needs

T H E O R I E S O F M O T I V AT I O N
EARLY THEORIES
Scientific Management (F.W. Taylor): Motivation by scientific management is associated with F.W.
Taylors techniques of scientific management. Taylor said that people are primarily motivated by
economic rewards and will take direction if offered an opportunity to improve their economic positions.
Based on this Taylor described following arguments
Physical work could be scientifically studied to determine optimal method of doing of a job.
Workers can be made more efficient by telling them how they were to do a job.
Workers would accept the above prescription if paid on differentiated piecework basis.
Disadvantages Dehumanized workers, treated them as mere factors of production, only stressed
on monetary needs, ignored human needs.

Human Relations Model (Elton Mayo):

Elton Mayos human relations model, developed through
Hawthorne Studies, stressed on social contacts as motivational factor. Greater importance was given to
informal groups. However, too much reliance on social contacts to improve productivity was a major
drawback.

CONTEMPORARY THEORIES
Content Theories (Maslows Need Hierarchy, Hertzbergs 2-factors, Alderfers ERG, Achievement
Motivation Theory)
Process Theories (Vrooms expectancy, Adams Equity, Porters Performance and Satisfaction Model)
Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth)
ERG theory emphasizes more on three broad needs that is Existence, Relatedness and Growth. Its
hypothesis is that there may be more than one need operating at the same time. ERG theory further states
that when a higher level need is frustrating, the individuals desire to increase lower level needs takes
place. Thus, ERG theory contains frustration-regression dimension. Frustration at higher level need may
lead to regression at lower level need.
Advantages More consistent with our knowledge of differences among people, it is less restrictive and
limiting, it is a valid version of need hierarchy.
Disadvantages No clear-cut guideline of individual behaviour patterns, too early to pass a judgment on
the overall validity of the theory.
Two-Factor Theory (Hertzberg)
Fredrick Hertzberg states that the motivation concept is generally driven by two factors of motivators of
job satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement,
recognition, the work itself, responsibility, advancement and growth, which are related to job satisfaction.
Hygiene factors deal with external factors like company policy, supervision, administration and working
conditions, salary, status, security and interpersonal relations. These factors are known as hygiene factors
or job dissatisfiers, job context factors.
Advantages Tremendous impact on stimulating thought on motivation at work, increased understanding
of role of motivation, specific attention to improve motivational levels, job design technique of job
enrichment is contribution of Hertzberg, double dimensions of two factors are easy to interpret and
understand.
Disadvantages Limited by its methodology, reliability questioned, it focuses more on job satisfaction
not on motivation, no overall measure of satisfaction utilized, inconsistent with previous research,
productivity factor ignored.

MORALE
Definition 1:
Morale is a mental condition or attitude of individual and groups, which determines their willingness to
co-operate.
Definition 2:
Morale is attitudes of individuals and groups towards their work environment and towards voluntary
cooperation to the full extent of their ability in the best possible interest of the organization.
Morale can be said to be a combination of satisfaction, happiness and enthusiasm.
Distinction between Morale and Motivation: Morale
1. Composite of feelings, attitudes and
sentiments that contribute towards general
satisfaction at workplace.
2. A Function of freedom or restraint towards
some goal.
3. It mobilizes sentiments.
4. Morale reflects Motivation.

Motivation
1. Motivation moves person to action.
2. A Process of stimulating individuals into
action to accomplish desired goals.
3. A Function of drives and needs.
4. It mobilizes energy.
5. Motivation is a potential to develop morale.

PERSONNEL POLICIES
MEANING OF PERSONNEL POLICY
A Policy is a Plan of Action. It is a statement of intentions committing the management to a general
course of action. A Policy may contain philosophy and principles as well. However a policy statement is
more specific and commits the management to a definite course of action.
Hence Personnel policy is the companys plan of action towards treatment of its employees in matters of
pay, benefits, welfare, work, etc. A personnel policy spells out basic needs of the employees. Through
personnel policy the personnel department ensure a fair and consistent treatment to all personnel by
minimizing favouritism and discrimination. Personnel policy serves as a standard of treatment to all
employees. Sound personnel policies help build employee motivation and loyalty. And this happens when
personnel policies reflect fair play and justice and help people grow within the organization. Personnel
policies are also plans of action to resolve intra-personal, inter-personal and inter-group conflicts.

IMPORTANCE OF PERSONNEL POLICY

Personnel policy is very important for an organization since it gives several benefits for managing the
human resources effectively. Listed below are some of the benefits:
1.
Consistent Treatment:
Personnel policies ensure consistent treatment of all personnel
throughout the organization.
2.
Fair Play & Justice: Personnel policies reflect established principles of fair play and justice.
3.
Minimize Favouritism: Personnel policies help minimize favouritism and discrimination
4.
Promote Stability: Personnel policies ensure continuity of action plan even if top management
is changed. These policies promote stability.
5.
Motivation & Loyalty: Sound Personnel policies help build employee motivation and loyalty.
6.
Basic Needs:
Personnel policy helps the management to think deeply about basic needs of
organization and the employees.
7.
Standard of Performance: Personnel policies serve as a standard of performance.
8.
Growth: Personnel policies help people grow within the organization.

WORKERS PARTICIPATION IN MANAGEMENT

Broadly, workers participation in management means associating representatives of workers at every
stage of decision-making. Participative management is considered as a process by which the workers
share in decision-making extends beyond the decisions that are implicit in the specific content of the jobs
they do. This amounts to the workers having a share in final managerial decisions in an enterprise.

SCOPE OF WORKERS PARTICIPATION

Scope of workers participation ranges over three managerial decision-making stages.
1.
Social Decisions: Hours of work, welfare measures, work rules, safety, health, sanitation and
noise control.
2.
Personnel Decisions: Recruitment and selection, promotions and transfers, grievance settlements,
work distribution

3.

Economic Decisions: Methods of manufacturing, automation, lay offs, shut-downs, mergers and
acquisitions and other financial aspects.

METHODS OF WORKERS PARTICIPATION IN MANAGEMENT

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Board Level
Ownership (share allocation)
Complete Control
Staff Councils
Joint Councils
Collective Bargaining
Job Enlargement and Enrichment
Suggestion Schemes
Quality Circles
Empowered Teams
Total Quality Management
Financial Participation

BENEFITS OF PARTICIPATION
1.
2.
3.
4.
5.
6.
7.
8.

Gives identity to an employee

Motivates employee
Self-esteem, job satisfaction and cooperation improves
Reduced conflicts and stress between Management and workers
More commitment to goals
Less resistance to change
Less labour problems
Better quality suggestions expected

UNIONS
Employee associations are popularly known as unions. Although they have become synonymous with
strikes and unreasonable demands, their role is much wider than this. Unions make their presence felt in
recruitment and selection, promotions, training, termination or lay off. Many programs, which contribute
to the Quality of Work Life (QWL) and productivity, are undertaken by management in consultation with
and with the cooperation of the unions. Unions also participate in deciding wage and salary structure and
negotiate revisions once in 3 or 5 years.
Trade unions are voluntary organizations of workers or employers formed to promote their interests
through collective action. Trade unions Act 1926 defines a trade union as a combination, whether
temporary or permanent formed primarily for the purpose of regulating the relation between
1.
Workmen and Employers
2.
Workmen and Workmen
3.
Employers and Employers
For imposing restrictive conditions on the conduct of any trade or business and includes any federation of
two or more trade unions

WHY DO EMPLOYEES JOIN TRADE UNIONS?

1.
2.
3.
4.
5.

To protect themselves against exploitation by management

By force
Dissatisfaction
Lack of Power
Union Instrumentality

ROLE OF CONSTRUCTIVE AND POSITIVE UNION

Unions have a crucial role to play in Industrial Relations. Unions have following broad role or objectives
as mentioned below.
1.
To redress the genuine grievances of individual worker vis--vis the individual employer, by
substituting joint or collective action for individual action.
2.
To secure improved terms and conditions of employment for its members and the maximum
degree of security to enjoy these terms and conditions.
3.
To obtain improved status for the worker in his work or her work
4.
To increase the extent to which unions can exercise democratic control over decisions, which
affect their interests by power sharing at the national, corporate and plant levels.
The union power is exerted primarily at two levels. Industry level to establish joint regulation on basic
wages and hours with an employers association. Plant level, where the shop stewards organizations
exercise joint control over some aspects of the organization of work and localized terms and conditions of
employment.
Unions are party to national, local and plant level agreements, which govern their actions to a greater or
lesser extent, depending on their power and on local circumstances.

UNFAIR LABOR PRACTICES

Industrial Disputes Act, 1947, specifies the following as unfair labour practices:
1.
To interfere, restrain, coerce workmen in the exercise of their right to organize, form, join or assist
a trade union.
2.
Threatening workmen with discharge or dismissal
3.
Threatening of lockout or closure
4.
Granting wage increases to undermine trade union efforts
5.
To dominate, interfere with or support financially or socially by taking active interest in forming
own trade union, and
6.
Showing partiality or granting favours to one of several trade unions
7.
To establish employer sponsored trade unions
8.
To encourage or discourage memberships in any trade union by discriminating workman by
punishing or discharging, changing seniority ratings, refusing promotions, giving unmerited
promotions, discharging union office bearers
9.
To discharge or dismiss workmen by victimizing, not in good faith, implicating in criminal case
for patently false reasons.
10.
To abolish work of a regular nature
11.
To transfer workmen
12.
To show favouritism or partiality
13.
To replace workers
14.
To recruit workmen during legal strikes
15.
To indulge in acts of violence or force
16.
To refuse collective bargaining
17.
Proposing and continuing lockouts

O R G A N I ZATI O N A L D O W N S I ZI N G
Downsizing necessarily means reducing work force to an optimal level depending upon the business
conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should
not be overstaffed and or understaffed. There are broadly following method used to downsize the
workforce as mentioned below.

RETRENCHMENT
It means termination of service. It is a termination for reasons other than disciplinary actions, retirement
or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation
and notice for retrenchment are only pre-conditions for retrenchment. If notice and compensation are not
given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every
completed year of service besides one months notice or pay in lieu of notice. But employee should have
completed at least one year of complete service in order to receive compensation.

LAY OFFS
Lay off is inability of the employer to provide employment to workers due to circumstances beyond his
control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a
termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has
completed one year of continuous service or has worked for 240 days on the surface or 190 days
underground in 12 calendar months. Compensation payable is half of the wages.

VOLUNTARY RETIREMENT SCHEMES

VRS are announced when there is a huge pool of old aged manpower occupying senior positions
amounting to surplus. Many organizations are providing liberal incentives to leave before age of
superannuation. VRS in other words is a retirement before the age of retirement.