HUMAN RESOURCE MANAGEMENT

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HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 Integration
HRM is a series of integrated decisions that form the employment relationships; their quality contributes to
the ability of the organizations and the employees to achieve their objectives.
Definition 2 Influencing
HRM is concerned ith the people dimensions in management. !ince every organization is made up of
people" acquiring their services" developing their s#ills" motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to the organization are essential to achieving
organizational objectives. $his is true" regardless of the type of the organization % government" business"
education" health" recreational" or social action.
Definition 3 Applicabil ity
HRM planning" organizing" directing and controlling of the procurement" development" compensation"
integration" maintenance and separation of human resources to the end that individual" organizational and
social objectives are accomplished.
MEANING OF HRM: -
HRM is management function that helps managers to recruit" select" train and develop members for an
organization. &bviously HRM is concerned ith the people's dimensions in organizations. HRM refers to
set of programs" functions" and activities designed and carried out
Core ee!ent" of HRM
#eo$e: &rganizations mean people. (t is the people ho staff and manage organizations.
M%n%&e!ent: HRM involves application of management functions and principles for acquisitioning"
developing" maintaining and remunerating )reard* employees in organizations.
Inte&r%tion ' Con"i"ten(): +ecisions regarding people must be integrated and consistent.
Inf*en(e: +ecisions must influence the effectiveness of organization resulting into betterment of
services to customers in the form of high quality products supplied at reasonable cost.
A$$i(%+i it): HRM principles are applicable to business as ell as non,business organizations too"
such as education" health" recreation and the li#e.
O,-ECTI.ES OF HRM: -
-. So(iet% O+/e(ti0e": $o be ethically and socially responsible to the needs and challenges of the
society hile minimizing the negative impact of such demands upon the organization.
.. Or&%ni 1%tion% O+/e(ti0e": $o recognize the role of HRM in bringing about organizational
effectiveness. HRM is only means to achieve to assist the organization ith its primary objectives.
/. F*n(tion% O+/e(ti0e": $o maintain department's contribution and level of services at a level
appropriate )suitable* to the organization's needs.
0. #er"on% O+/e(ti0e": $o assist employees in achieving their personal goals" at least in so far as
these goals enhance the individual's contribution to the organization. $his is necessary to maintain employee
performance and satisfaction for the purpose of maintaining" retaining and motivating the employees in the
organization.
Fe%t*re" of HRM 2 #M
-. HRM relates to M%n%&in& #eo$e %t 3or45 (t covers all level of personnel and their needs"
e1pectations etc.
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.. HRM is a $eo$e oriente6 $ro(e"" of bringing people and organizations together so that the
goals of each ate met properly.
/. HRM is concerned ith the 6e0eo$!ent of e!$o)ee7" $otenti%itie".
0. HRM is an inte&r% $%rt of or&%ni1%tion
2. HRM is a (ontin*o*" %(ti0it) as personnel problems continue to e1ist as long as employees are
or#ing in an organization.
3. HRM aims at "e(*rin& 3iin& (oo$er%tion of e!$o)ee" for achievinga organizational
objectives.
4. HRM is f*t*re oriente6 as it helps the organization to achieve its objectives in future.
5. HRM is a (8%en&in& f*n(tion as it deals ith the employees ho are alays unpredictable.
HRM .2S #M
HRM #ERSONNE9 MANAGEMENT
HRM is the latest development in the evaluation
of management of man
6ersonnel management precedes HRM
(t gives more importance to the abilities of
employees rather than evaluating them as per rules.
6erformance is evaluated ithin the
frameor# of rules.
(t or#s on the basis of integrated initiative (t or#s on the basis of piecemeal initiative
6rocess of decision ma#ing is fast 6rocess of decision ma#ing is slo
(t supports performance related remuneration (t supports fi1ed remuneration
(t uses latest techniques of training and
development
(t uses outdated techniques of training and
development
(t practices division of or# along ith team or# (t practices only division of or#
(t favors all round development of employees (t favors contractual employment based on
ritten agreement
SCO#E OF HRM: -
!cope of HRM is vast. 7ll major activities of a or#er from the time of his entry into an organization until
he leaves come under the purvie of HRM. (mportant activities under HRM are8
-. +etermining the human resources needs of the organization
.. Recruitment" selection" appointment and placement of employees.
/. $raining and manpoer development.
0. 7dministration of ages and salaries.
2. 9mployee services li#e health and safety" amenities and elfare facilities.
3. 6romotion and transfer of employees
4. (ndustrial relations and settlement of grievances of employees.
5. Human resources planning and career planning.
:. 6ersonnel research and personnel audit.
-;. -;. <abour legislation and their administration in the organization.
HRM A(ti0itie"
-. HR 6lanning
.. =ob 7nalysis
/. =ob +esign
0. Recruitment > !election
2. &rientation > 6lacement
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3. $raining > +evelopment
4. 6erformance 7ppraisals
5. =ob 9valuation
:. 9mployee and 91ecutive Remuneration
-;. Motivation
--. ?ommunication
-.. @elfare
-/. !afety > Health
-0. (ndustrial Relations
: C%te&orie" of S(o$e of HRM
-. (ntroduction to HRM
.. 9mployee Hiring
/. 9mployee and 91ecutive Remuneration )pay or reard ABCDE *
0. 9mployee Motivation
2. 9mployee Maintenance
3. (ndustrial Relations
4. 6rospects of HRM
RO9E OF HRM
-. A60i"or) Roe: HRM advises management on the solutions to any problems affecting people" personnel
policies and procedures.
a. #er"onne #oi(ie": &rganization !tructure" !ocial Responsibility" 9mployment $erms >
?onditions" ?ompensation" ?areer > 6romotion" $raining > +evelopment and (ndustrial Relations.
b. #er"onne #ro(e6*re": Relating to manpoer planning procedures" recruitment and selection
procedures" and employment procedures" training procedures" management development procedures"
performance appraisal procedures" compensation procedures" industrial relations procedures and health and
safety procedures.
.. F*n(tion% Roe: $he personnel function interprets and helps to communicate personnel policies. (t
provides guidance to managers" hich ill ensure that agreed policies are implemented.
/. Ser0i(e Roe: 6ersonnel function provides services that need to be carried out by full time specialists.
$hese services constitute) FGHE CIGJ KLGE CIGJ * the main activities carried out by personnel departments and
involve the implementation of the policies and procedures described above.
Roe of HR M%n%&er" (To6%))
-. H*!%nit%ri%n Roe: Reminding moral and ethical obligations)MNOP* to employees
.. Co*n"eor: ?onsultations to employees about marital" health" mental" physical and career problems.
/. Me6i%tor: 6laying the role of a peacema#er during disputes" conflicts beteen individuals and groups
and management.
0. S$o4e"!%n: $o represent of the company because he has better overall picture of his company's
operations.
2. #ro+e! So0er: !olving problems of overall human resource management and long,term
organizational planning.
3. C8%n&e A&ent: (ntroducing and implementing institutional changes and installing organizational
development programs
4. M%n%&e!ent of M%n$o3er Re"o*r(e": Qroadly concerned ith leadership both in the group and
individual relationships and labor,management relations.
Roe of HR M%n%&er" (F*t*re)
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-. 6rotection and enhancement of human and non,human resources
.. Rinding the best ay of using people to accomplish organizational goals
/. (mprove organizational performance
0. (ntegration of techniques of information technology ith the human resources
2. Stilizing behavioral scientists in the best ay for his people
3. Meeting challenges of increasing organizational effectiveness
4. Managing diverse or#force
FUNCTIONS OF HRM A9ONG ;ITH O,-ECTI.ES
HRM O+/e(ti0e" S*$$ortin& HRM F*n(tion"
!ocial &bjectives )/* <egal ?ompliance
Qenefits
Snion Management Relations
&rganizational &bjectives )4* Human Resource 6lanning
9mployee Relations
Recruitment > !election
$raining > +evelopment
6erformance 7ppraisals
6lacement > &rientation
9mployee 7ssessment
Runctional &bjectives )/* 6erformance 7ppraisals
6lacement > &rientation
9mployee 7ssessment
6ersonal &bjectives )2* $raining > +evelopment
6erformance 7ppraisals
6lacement > &rientation
?ompensation
9mployee 7ssessment
M%n%&eri% F*n(tion" of HRM
-. #%nnin&: 6lan and research about age trends" labor mar#et conditions" union demands and other
personnel benefits. Rorecasting manpoer needs etc.
.. Or&%ni1in&: &rganizing manpoer and material resources by creating authorities and responsibilities
for the achievement of organizational goals and objectives.
/. St%ffin&: Recruitment > !election
0. Dire(tin&: (ssuance of orders and instructions" providing guidance and motivation of employees to
follo the path laid,don.
2. Controin&: Regulating personnel activities and policies according to plans. &bservations and
comparisons of deviations
O$er%tion% F*n(tion" of HRM
-. #ro(*re!ent: 6lanning" Recruitment and !election" (nduction and 6lacement
.. De0eo$!ent: $raining" +evelopment" ?areer planning and counseling.
/. Co!$en"%tion: @age and !alary determination and administration
0. Inte&r%tion: (ntegration of human resources ith organization.
2. M%inten%n(e: !ustaining and improving or#ing conditions" retentions" employee communication
3. Se$%r%tion": Managing separations caused by resignations" terminations" lay offs" death" medical
sic#ness etc.
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CHA99ENGES OF HRM IN #%4i"t%n ECONOM< or CHA99ENGES OF MODERN
MANAGEMENT
-. Go+%i 1%tion: - Troing internationalization of business has its impact on HRM in terms of
problems of unfamiliar las" languages" practices" competitions" attitudes" management styles" or# ethics
and more. HR managers have a challenge to deal ith more functions" more heterogeneous functions and
more involvement in employee's personal life.
25 Cor$or%te Re-or&%ni1%tion": - Reorganization relates to mergers and acquisitions" joint ventures"
ta#e over" internal restructuring of organizations. (n these situations" it is difficult to imagine circumstances
that pose a greater challenge for HRM than reorganizations itself. (t is a challenge to manage employees'
an1iety" uncertainties" insecurities and fears during these dynamic trends.
35 Ne3 Or&%ni1%tion% for!": - $he basic challenge to HRM comes from the changing character of
competitions. $he competition is not beteen individual firms but beteen constellations of firm. Major
companies are operating through a comple1 eb of strategic alliances" forgings ith local suppliers" etc.
$hese relationships give birth to completely ne forms of organizational structure" hich highly depend
upon a regular e1change of people and information. $he challenge for HRM is to cope ith the implications
of these nely netor#ed relations more and more" in place of more comfortable hierarchical relationships
that e1isted ithin the organizations for ages in the past.
0. C8%n&in& De!o&r%$8i(" of ;or4for(e: - ?hanges in or#force are largely reflected by dual
career couples" large chun# of young blood beteen age old superannuating employees" or#ing mothers"
more educated and aare or#ers etc. $hese dynamic or#forces have their on implications for HR
managers and from HRM point of vie is a true challenge to handle.
2. C8%n&e6 e!$o)ee e=$e(t%tion": - @ith the changes in or#force demographics" employee
e1pectations and attitudes have also transformed. $raditional allurements li#e job security" house" and
remunerations are not much attractive today" rather employees are demanding empoerment and equality
ith management. Hence it is a challenge for HRM to redesign the profile of or#ers" and discover ne
methods of hiring" training" remunerating and motivating employees.
>5 Ne3 In6*"tri% Re%tion" A$$ro%(8: - (n today's dynamic orld" even unions have understood
that stri#es and militancy have lost their relevance and unions are greatly affected by it. $he trade union
membership has fallen drastically orldide and the future of labor movement is in danger. $he challenge
before HRM is to adopt a proactive industrial relations approach hich should enable HR specialist to loo#
into challenges unfolding in the future and to be prepared to convert them into opportunities.
:5 Rene3e6 #eo$e Fo(*": - $he need of today's orld and business is the people's approach. $he
structure" strategy" systems approach hich or#ed in post ar era is no more relevant in today's economic
environment hich is characterized by over capacities and intense competition. $he challenge of HR
manager is to focus on people and ma#e them justifiable and sustainable.
5. M%n%&in& t8e M%n%&er": - Managers are unique tribe in any society" they believe they are class
apart. $hey demand decision,ma#ing" bossism" and operational freedom. Hoever in the post liberalization
era" freedom given to managers is grossly misused to get rid of talented and hard or#ing juniors. $he
challenge of HRM is ho to manage this tribeU Ho to ma#e them realize that the freedom given to them is
to enable them ma#e quic# decisions in the interest of the organization and not to resort to itch,hunting.
:. ;e%4er So(iet) intere"t": - 7nother challenge for HRM is to protect the interest of ea#er
sections of society. $he dramatic increase of omen or#ers" minorities and other bac#ard communities in
the or#force has resulted in the need for organizations to ree1amine their policies" practices and values. (n
the name of global competition" productivity and quality the interests of the society around should not be
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sacrificed. (t is a challenge of today's HR managers to see that these ea#er sections are neither denied their
rightful jobs nor are discriminated against hile in service.
-;. Contri+*tion to t8e "*((e"" of or&%ni1%tion": - $he biggest challenge to an HR manager is to
ma#e all employees contribute to the success of the organization in an ethical and socially responsible ay.
Qecause society's ell being to a large e1tent depends on its organizations.
HUMAN RESOURCE DE.E9O#MENT
HR+ is part of HRM and constitute one ing of HRM department. HR+ is concerned ith the training and
qualitative development of employees.
Fe%t*re" of HRD
-. HR+ is a system of several interdependent sub,systems such as procurement" appraisal" development
etc.
.. HR+ is a planned process of developing people on a continuous basis.
/. HR+ is an interdisciplinary concept as it uses principles of different areas such as psychology"
economics" sociology etc.
0. HR+ basically develops competencies at individual" groups and organizational level.
Roe ' Re"$on"i+iitie" of HRD
-. HR+ ma#es effective use of manpoer by employing right man to the right job at right time.
.. HR+ facilitates human resource planning and control by maintaining data about the manpoer of
organization.
/. HR+ influence the employees to accept the change illingly.
0. HR+ creates mutual trust and confidence leading to overall better performance.
2. HR+ maintains transparency in administration.
3. HR+ encourages employees to sho innovation hile solving problems.
HRD #oi()
HR+ policy is a statement of an organization" hich provides a broad frameor# ithin hich a decision on
human resource can be made. HR+ policy is formulated by the HR+ department under the supervision of
top management. HR+ policy includes procedures" programmes and practices affecting human resources.
$his policy ma#es clear code of conduct thereby providing pleasant or# atmosphere. HR+ policy is a long
life policy; they can be used repeatedly to solve recurring problems.
HRIS
$he concept of Human Resource (nformation !ystem )HR(!* has been derived from the concept of
Management (nformation !ystem )M(!*. HR(! may be defied as a systematic procedure for collecting"
storing" maintaining and retrieving data needed by an organization about its human resource and various
activities.
<i#e any other information system" HR(! has three basic components % input" storage and output. $he
output may be in the form of hard copy or soft copy. $he information supplied by HR(! is used by all
departments of organization.
$he basic objective of HR(! is to provide accurate" relevant and timely information about human resources
and their functioning in the most cost effective ay. 7t present" every organization generally uses
computerized HR(!" hich is fast" accurate and compact in storing the information.
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CHARACTERISTICS OF TODA<7S ;OR?FORCE (Nov. 08)
(mportant characteristics of today's or#force are8
-. Composition of Workforce: (n -::: the total employment in (ndia as /:4 million. &f this /3:
million in unorganized sector and .5 million ere in organized sector. &f this .5 million" -:.0
million ere in public sector and 5.4 million in private sector. $his suggests that the share of
organized private sector in total employment as ... V indicating large,scale employment
opportunities in this sector in near future.
.. Employment in Factories: (n -::: the employment in factories as 4.00 million" hich is just ../
V of total or#force estimate of 0;. million. $his suggests the factory or#force is very small
portion of total or#force in the country.
/. Industrial Labour Growth: $he groth of industrial labour is rather slo in (ndia due to slo
groth of factories and also due to e1tensive use of automated technology. Hoever due to industrial
groth through globalization" !9W and e1port houses industrial or#force soon ill dominate total
labour force in (ndia.
0. Limited Education: (ndustrial or#force in (ndia as uneducated over years; as a result they ere
e1ploited. Hoever the situation has changed" they are no educated" get higher salaries" quic#
promotions and responsible positions.
2. Absence of Unity: (ndustrial or#force in (ndia lac#s unity. (t is divided on the basis of religion"
language" cast and region. Hoever this division is absent among highly educated and qualified
industrial or#ers.
3. Labour urno!er: $his problem as in the olden days due to rural socio,economic bac#ground"
easy availability of jobs" age differences etc. Hoever turnover is no reducing among industrial
or#force.
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
Str%te&):
!trategy is a ay of doing something. (t includes the formulation of goals and set of action plans for
accomplishment of that goal.
Str%te&i( M%n%&e!ent:
7 6rocess of formulating" implementing and evaluating business strategies to achieve organizational
objectives is called !trategic Management
Definition of Str%te&i( M%n%&e!ent: -
!trategic Management is that set of managerial decisions and actions that determine the long,term
performance of a corporation. (t includes environmental scanning" strategy formulation" strategy
implementation and evaluation and control.
$he study of strategic management therefore emphasizes monitoring and evaluating environmental
opportunities and threats in the light of a corporation's strengths and ea#nesses.
Ste$" in Str%te&i( M%n%&e!ent:
-. En0iron!ent% S(%nnin&: 7nalyze the &pportunities and $hreats in 91ternal 9nvironment
.. Str%te&) For!*%tion: Rormulate !trategies to match !trengths and @ea#nesses. (t can be done at
?orporate level" Qusiness Snit <evel and Runctional <evel.
/. Str%te&) I!$e!ent%tion: (mplement the !trategies
0. E0%*%tion ' Contro: 9nsure the organizational objectives are met.
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IM#ORTANCE ' ,ENEFITS OF STRATEGIC MANAGEMENT
7llos identification" prioritization and e1ploration of opportunities.
6rovides an objective vie of management problems.
Represents frameor# for improved co,ordination and control
Minimizes the effects of adverse conditions and changes
7llos major decisions to better support established objectives
7llos more effective allocation of time and resources
7llos feer resources and lesser time devoted to correcting ad hoc decisions
?reates frameor# for internal communication
Helps to integrate the individual behaviors
6rovides basis for the clarification of responsibilities
9ncourages forard thin#ing
9ncourages favorable attitude toards change.
RO9E OF HRM IN STRATEGIC MANAGEMENT
Roe in Str%te&) For!*%tion: HRM is in a unique position to supply competitive intelligence that may be
useful in strategy formulation. +etails regarding advanced incentive plans used by competitors" opinion
survey data from employees" elicit information about customer complaints" information about pending
legislation etc. can be provided by HRM. Snique HR capabilities serve as a driving force in strategy
formulation.
Roe in Str%te&) I!$e!ent%tion: HRM supplies the company ith a competent and illing or#force for
e1ecuting strategies. (t is important to remember that lin#ing strategy and HRM effectively requires more
than selection from a series of practice choices. $he challenge is to develop a configuration of HR practice
choices that help implement the organization's strategy and enhance its competitiveness.
HUMAN RESOURCE DE.E9O#MENT
Definition 1: Organizing and enhancing capacities to produce.
HR+ is a process of organizing and enhancing the physical" mental and emotional capacities of individuals
for productive or#.
Definition 2: Bring possibility of perforance and gro!th
HR+ means to bring about the possibility of performance improvement and individual groth.
Human resource development is a process to help people to acquire competencies and to increase their
#noledge" s#ills and capabilities for better performance and higher productivity.
#ro%(ti0e HRD Str%te&ie" for on& ter! $%nnin& %n6 &ro3t8
(n today's fast changing" challenging and competitive environment HR+ has to ta#e a proactive approach
that is to see# preventive care in human relations. Ssing HR+ strategies ma1imizations of efficiency and
productivity could be achieved through qualitative groth of people ith capabilities and potentialities to
gro and develop. HR+ is alays a function of proper utilization of creative opportunities and available
environment through acquisition of #noledge" s#ills and attitudes necessary for productive efforts.
<ong,term groth can also be planned by creating highly inspired groups of employees ith high
aspirations to diversify around core competencies and to build ne organizational responses for coping ith
change.
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7 proactive HR+ strategy can implement activities that are geared up and directed at improving personal
competence and productive potentialities of human resources.
Rolloing strategic choices can be considered hich ould help today's organizations to survive and gro.
C8%n&e M%n%&e!ent: Manage change properly and become an effective change agent rather than being a
victim of change itself.
.%*e": 7dopt proactive HR+ measures" hich encourage values of openness" trust" autonomy" proactivity
and e1perimentation.
M%=i!i1e $ro6*(ti0it) %n6 effi(ien(): $hrough qualitative groth of people ith capabilities and
potentialities to gro and develop thrive to ma1imize productivity and efficiency of the organization.
A(ti0itie" 6ire(te6 to (o!$eten(e +*i6in&: HR+ activities need to be geared up and directed at improving
personal competence and productive potentialities of manpoer resources.
TEAM EFFECTI.ENESS
;8%t i" t8e 6efinition of % te%!@ 7 team is defined as a reasonably small group of people" ho bring to
the table a set of complementary and appropriate s#ills" and ho hold themselves mutually accountable for
achieving a clear and identifiable set of goals.
Te%!" (%n +e 0er) effe(ti0e5 (n many situations teams can achieve more than individuals or#ing on their
on. $eams can bring to bear a ider range of s#ills and e1perience to solve a problem. $eams also produce
better quality decisions. @hen a team has been or#ing on a problem" and they have a sense of commitment
to the common solution
;8%t 6o 3e !e%n +) te%! effe(ti0ene""@
7 team can be considered to be effective if their output is judged to meet or e1ceed the e1pectations of
the people ho receive the output. 6roducing a quality output is not enough to judge the effectiveness of the
team.
$he second criteria" is that the team should still be able function effectively after they have completed
their tas#. (t should not be torn apart by dissension.
Rinally" effectiveness is judged by hether the team feels satisfied ith its efforts. (f the team members
are pleased ith their efforts" if the e1perience has been a good one" if time spent aay from their normal
or# has been orth the effort" the team has li#ely been effective.
;8%t t8en %re t8e f%(tor" t8%t (ontri+*te to3%r6" %n effe(ti0e te%!@
$here are three areas of group behavior that must be addressed for teams to be effective. $he team must
or# hard. $he effort that the team puts in to get the job done is dependent on hether the nature of the tas#
motivates the members of the team and hether the goals are challenging.$he team must have the right mi1
of s#ills to bring to the table. $hese s#ills include technical" problem solving and interpersonal s#ills. $he
team must be able to develop appropriate approaches to problem solving. $his depends on developing a plan
of attac# and using appropriate techniques for analysis.
$he folloing factors contribute to hard or#" s#ill development and effective problem solving strategies8
T8e t%"4 it"ef "8o*6 +e !oti0%tin&5
$he tas# itself should be seen as being orthhile. (t needs to be a hole piece of or# ith a clear and
visible outcome so that people can feel a sense of onership.
$he outcome of the tas# should be perceived as being important to other peopleXs lives. (t should affect
others in the organization or impact on the e1ternal customer.
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$he job should provide the team ith an opportunity for self,regulation. $hey should decide ho the
or# is to be done. Meaningful feedbac# should be provided on the ho ell the team is performing.
T8e te%! nee6" (8%en&in& &o%"A 38i(8 %re (e%r) 6efine65
@hen challenging goals are set the team ill mobilize its efforts to find innovative ays to achieve
feats that may have been considered impossible. 6roviding a challenging job is the most important motivator
to sustain group effort.
Toals provide a sense of direction to the team so that hen conflict occurs it is possible to channel the
conflict more constructively by returning to the goals for direction.
$he team needs to buy in to the goals. $hey must have the opportunity to buy in and commit to
achieving the goals. Toals need to be challenging" but not impossible to achieve. $hey also need to be
measurable so that progress toards achieving them can be monitored and results confirmed.
Re3%r6" %re i!$ort%nt5
$he reards need to suit the personal characteristics of the people on the team.
@hatever form the reard ta#es" it is important that group effort be recognized. &ne should avoid the
destructive effect of trying to single out individuals from the group" hen there has been a group effort.
Reards merely reinforce these conditions for fostering group effort.
T8e te%! "8o*6 8%0e t8e ri&8t !i= of "4i".
$he right mi1 of s#ills should be brought to the tas# at hand. (t is also a question of carefully revieing
the job to determine hat relevant s#ills is required and selecting staff so that the team has the right balance.
6roviding relevant training then ma#es up any shortfall in s#ills.
$echnical s#ills are required. Ror teams ho are trying to improve a process that cuts across department
boundaries" each function should be represented. &ne should achieve a balance of s#ills. $his means
avoiding having a preponderance of s#ills and e1perience in one specialized area. !heer numbers may eigh
the solution toards the dominant group.
(n the case of permanent or# teams it is li#ely that team members ill not have all the tas# relevant
s#ills at the onset. @hen the group is ne" it is li#ely that members ill bring narro s#ills learned in their
old roles. $hey ill need to develop broader s#ills for the ne job. $o ensure that this is done" training and
coaching should be provided.
$he members of the team need to have problem solving and decision,ma#ing s#ills as ell as technical
s#ills. @hen a business is ma#ing its first venture into team based or#" it is li#ely that people ill not have
a good grasp of the techniques related to problem analysis and solution.
$hese relevant s#ills must be acquired" so it ill be necessary to provide training. &ver a period of time
staff ill become e1perienced in problem solving techniques and the organization ill develop a repertoire
of s#ills among the staff so this training ill not alays be necessary.
(nterpersonal s#ills are also important. $his is not as obvious as it may sound. Most people do not listen
ell. <istening is much more than being quiet hen some else is tal#ing. 7ctive listening is required. Many
people do not spea# to the point but ramble on or go off at a tangent. Most people do not ta#e criticism ell
and tend to be defensive about their on opinions.
A&ree on % (o6e of (on6*(t.
7t the beginning of the team project it is important to develop a code of conduct for meetings. $he team
needs to agree on a set of rules to ensure that their efforts are purposeful and that all members contribute to
the or#.
$he most critical rules pertain to attendance" open discussion" using an analytical approach" not pulling
ran# over other members" planning the or# and sharing or# assignments. $his ill ensure that the or# is
done ell and done on time.
11
T8e te%! !*"t 6e0eo$ effe(ti0e $ro+e! "o0in& "tr%te&ie"5
Ror the team to be able to develop an appropriate strategy" it must have a clear definition of the
problem" #no hat resources it has available and the limits" and understand the e1pectations. (t must then
develop a problem,solving plan" based on the approach suggested in the section on continuous improvement.
@hen this does not happen" people are passive. $heir s#ills and #noledge are not utilized and they
aste their time.
S$e(i% te%!" 8%0e "$e(i% i""*e"5
Rrom the perspective of organizational improvement e are interested in three types of teams. &ne is
the problem solving team" another is the or# team and then there is the senior management team.
6roblem solving teams are set up ith a clearly defined tas# to investigate a problem and recommend a
solution. !ometimes the same team ill go on to implement the solution. @hen their tas# is completed the
team is disbanded and members go bac# to their normal organizational duties.
$here are to important issues facing these teams. &ne is getting started and the other is handing over
the recommendations for implementation. $he #ey to getting started is to ensure that the team is committed
to achieving an agreed set of goals. Toals serve to focus the teamXs effort.
(mplementation is important. (t ill not just happen; it must be planned. $he implementers must be
brought into the solution stage so that they develop a sense of onership toards the solution and buy into
it. $he best ay to do this is to have the problem solving team do the implementation.
7nother approach is to phase the implementers into the team so that the membership changes prior to
the implementation. @hatever approach is used one should remember that the idea is to implement a
solution and not to produce a report.
@or# teams are different in that they are a fi1ed part of the organization. $hey have an ongoing
function" hich is to control a set of activities that ma#e up a discrete operation in the overall business
process. $hey need to focus on the critical factors in their process and to control these factors to ensure a
quality product.
HUMAN RESOURCE #9ANNING ( H R # )
Definition 1: - Need" Availability" #upply$%eand
HR6 includes estimation of ho many qualified people are necessary to carry out the assigned activities"
ho many people ill be available" and hat" if anything" must be done to ensure personnel supply equals
personnel demand at the appropriate point in the future.
Definition 2: - &ight nubers" 'apability" Organization Ob(ectives
HR6 is a 6rocess" by hich an organization ensures that it has the right number and #ind of people at the
right place" at the right time" capable of effectively and efficiently completing those tas#s that ill help the
organization achieve its overall objectives.
Definition 3: - )ranslation of ob(ectives into *& nubers
HR6 is a process of translating organizational objectives and plans into the number of or#ers needed to
meet those objectives. OR
Definition B: -
Manpoer 6lanning and Human Resource 6lanning is rather synonyms. HR planning is a strategy for the
procurement" development" allocation and utilization of an organization's human resources
MEANING 2 #UR#OSE OF HR#
(n simple ords HR6 is understood as the process of forecasting an organization's future demand for
and supply of the right type of people in the right numbers.
12
(t is only after HR6 is done" that the company can initiate and plan the recruitment and selection process.
HR6 is a sub,system in the total organizational planning.
HR6 facilitates the realization of the company's objectives by providing right type and right number of
personnel.
HR6 is important because ithout a clear,cut manpoer planning" estimation of a organization's human
resource need is reduced to mere guessor#.
NEED ' IM#ORTANCE OF HR#
Fore(%"t f*t*re $er"onne nee6": $o avoid the situations of surplus or deficiency of manpoer in
future" it is important to plan your manpoer in advance. Ror this purpose a proper forecasting of futures
business needs helps you to ascertain our future manpoer needs. Rrom this angle" HR6 plays an important
role to predict the right size of manpoer in the organization.
Co$e 3it8 (8%n&e: HR6 enables an enterprise to cope ith changes in competitive forces" mar#ets"
technology" products and government regulations. !uch changes generate changes in job content" s#ills
demands and number of human resources required.
Cre%tin& 8i&8) t%ente6 $er"onne: !ince jobs are becoming highly intellectual and incumbents
getting vastly professionalized" HR6 helps prevent shortages of labor caused by attritions. Rurther
technology changes ould further upgrade or degrade jobs and create manpoer shortages. (n these
situations only accurate human resource planning can help to meet the resource requirements.
Rurther HR6 is also an anser to the problems of succession planning.
#rote(tion of 3e%4er "e(tion" : 7 ell,conceived personnel planning ould also help to protect the
interests of the !?Y!$" physically handicapped" children of socially oppressed and bac#ard classes ho
enjoy a certain percentage of employments notithstanding the constitutional provisions of equal
opportunity for all.
Intern%tion% "tr%te&ie": (nternational e1pansion strategies largely depend upon effective HR6. @ith
groing trends toards global operations" the need for HR6 further becomes more important as the need to
integrate HR6 more closely into the organization #eeps groing. $his is also because the process of meeting
staffing needs from foreign countries gros in a comple1 manner.
Fo*n6%tion of $er"onne f*n(tion": HR6 provides essential information for designing and
implementing personnel functions such as recruitment" selection" personnel development" training
and development etc.
In(re%"in& in0e"t!ent" in HR: 7nother importance is the investment that an organization ma#es in
human capital. (t is important that employees are used effectively throughout their careers. Qecause human
assets can increase the organization value tremendously as opposed to physical assets
Re"i"t%n(e to (8%n&e ' !o0e: $he groing resistance toards change and move" self evaluation"
loyalty and dedication ma#ing it more difficult to assume that organization can move its employees
everyhere. Here HR6 becomes very important and needs the resources to be planned carefully.
Ot8er +enefit": Rolloing are the other benefits of HR6.
-. Spper management has a better vie of HR dimensions of business
.. Management can anticipate imbalances before they become unmanageable and e1pensive.
/. More time is provided to locate talent
0. Qetter opportunities e1ists to include omen and minorities in future groth plans
2. Qetter planning of assignments to develop managers
3. Major and successful demands on local labor mar#ets can be made.
HR# S<STEM
HR6 !ystem as such includes folloing elements or sets for planning.
&verall &rganization &bjectives
Qusiness 9nvironment
Rorecasting Manpoer Zeeds
7ssessing Manpoer !upply
Matching Manpoer +emand,!upply factors
13
Qased on these elements e can dra HR6 !ystem 7rchitecture as under.
14
Qusiness 9nvironment
&rganization &bjectives > Toals
Manpoer Rorecast Manpoer !upply 7ssessment
Manpoer 6rogramming
Manpoer (mplementation
?ontrol > Manpoer
9valuation
!urplus Manpoer !hortage of Manpoer
HR# #ROCESS
Or&%ni 1%tion% O+/e(ti0e" ' #oi(ie": -
$he objectives of HR plan must be derived from organizational objectives li#e specific requirements of
numbers and characteristics of employees etc. HR6 needs to sub,serve the overall objectives by ensuring
availability and utilization of human resources. !pecific policies need to be formulated to address the
folloing decisions.
(nternal Hiring or 91ternal HiringU
$raining > +evelopment plans
Snion ?onstraints
=ob enrichment issues
Rightsizing organization
7utomation needs
?ontinuous availability of adaptive and fle1ible or#force
M%n$o3er De!%n6 Fore(%"tin&: -
(t is the process of estimating the future quantity and quality of people required.
$he basis should be annual budget and long term corporate plans
+emand forecasting should be based on folloing factors.
Internal Factors: "
Qudget constraints
6roduction levels
Ze products and services
&rganizational structure
9mployee separation
E#ternal Factors: "
?ompetition environment
9conomic climate
<as and regulatory bodies
$echnology changes
!ocial Ractors
$easons for %anpower &emand Forecastin': "
$o quantify jobs
$o determine the !taff,mi1
$o assess staffing levels and avoid unnecessary costs
6revent shortages of people
Monitor compliances of legal requirements ith regards to reservations
M%n$o3er Fore(%"tin& Te(8niC*e": -
M%n%&e!ent -*6&!ent: (n this techniques managers across all the levels decide the forecast on their on
judgment. $his can be bottom,up or top,don approach and judgments can be revieed across departments"
divisions and top management can conclude on final numbers of manpoer required.
R%tion-Tren6 An%)"i": $his technique involves studying past ratios" and forecasting future ratios ma#ing
some alloance for changes in the organization or its methods.
;or4 St*6) Te(8niC*e": (t is possible hen or# measurement to calculate the length of operations and
the amount of manpoer required. $he starting point can be production budget" folloed by standard hours"
output per hour; man,hours required etc could be computed.
De$8i Te(8niC*e": $his technique solicits estimates from a group of e1perts" and HR6 e1perts normally
15
act as intermediaries" summarizes various responses and report the findings bac# to e1perts.
Fo3 Mo6e": $his technique involves the flo of folloing components. +etermine the time required"
9stablish categories" ?ount annual movements" 9stimate probable transitions. Here demand is a function of
replacing those ho ma#e a transition.
M%n$o3er S*$$) Fore(%"tin&: -
$his process measures the number of people li#ely to be available from ithin and outside the organization
after ma#ing alloance for absenteeism" internal movements and promotions" astages" changes in hours
and other conditions of or#.
$easons for %anpower (upply Forecastin':
?larify !taff,mi1es e1ist in the future
7ssess e1isting staff levels
6revent shortages
Monitor e1pected future compliance of legal requirements of job reservations
(upply Analysis co!ers:
E=i"tin& H*!%n Re"o*r(e": HR 7udits facilitate analysis of e1isting employees ith s#ills and abilities.
$he e1isting employees can be categorized as s#ills inventories )non,managers* and managerial inventories
)managers*
#+ill inventory !ould include the follo!ing,
6ersonal data
!#ills
!pecial [ualifications
!alary
=ob History
?ompany data
?apabilities
!pecial preferences
-anageent inventories !ould include the follo!ing
@or# History
!trengths
@ea#nesses
6romotion 6otential
?areer Toals
6ersonal +ata
Zumber and $ypes of !ubordinates
$otal Qudget Managed
6revious Management +uties
Internal (upply: "
(nternal supply techniques help to assess the folloing
(nflos and outflos )transfers" promotions" separations" resignations" retirements etc.*
$urnover rate )Zo. &f separations p.a. Y 7verage employees p.a. \ -;;*
?onditions of or# )or#ing hours" overtime" etc.*
7bsenteeism )leaves" absences*
6roductivity level
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=ob movements )=ob rotations or cross functional utilizations*
E=tern% S*$$): -
91ternal sources are required for folloing reasons
Ze blood"
Ze e1periences
Replenish lost personnel
&rganizational groth
+iversification
91ternal sources can be colleges and universities" consultants" competitors and unsolicited applications.
HR #%n I!$e!ent%tion: -
7 series of action programs are initiated as a part of HR plan implementation as under.
Re(r*it!ent ' See(tion: 9mployees are hired against the job vacancies. Qased on the manpoer
demand and supply forecasts made" hiring of employees is initiated based on supply forecasts. Ror this
internal and e1ternal sources of manpoer are utilized. 7 formal selection board is established to intervie
and select the best of the candidates for the required vacancies. Rinally the selected employees also need to
be placed on proper jobs. Here some companies recruit employees for specific jobs hile others recruit fresh
trainees in large number and train them for future manpoer needs.
Tr%inin& %n6 De0eo$!ent: $he training and development program is charted out to cover the
number of trainees" e1isting staff etc. $he programs also cover the identification of resource personnel for
conducting development program" frequency of training and development programs and budget allocation.
Retr%inin& %n6 Re6e$o)!entD Ze s#ills are to be imparted to e1isting staff hen technology
changes or product line discontinued. 9mployees need to be redeployed to other departments here they
could be gainfully employed.
Retention #%n: Retention plans cover actions" hich ould reduce avoidable separations of employees.
Ssing compensation plans" performance appraisals" avoiding conflicts" providing green pastures etc" can do
this.
Do3n"i1in& $%n": @here there is surplus or#force trimming of labor force ill be necessary. Ror
these identifying and managing redundancies is very essential.
M%n%&eri% S*((e""ion #%nnin&D Methods of managerial succession plans may vary. Most
successful programs seem to include top managements involvement and commitment" high,level revie of
succession plans" formal performance assessment and potential assessment and ritten development plans
for individuals. 7 typical succession planning involves folloing activities.
7nalysis of demand for managers and professionals
7udit of e1isting e1ecutives
6rojection of future li#ely supply from internal and e1ternal sources
(ndividual career path planning
?areer counseling
7ccelerated promotions
6erformance related training and development
!trategic recruitment
Contro ' E0%*%tion of HR#: -
HR 6lan must also clarify responsibilities for control and establish reporting procedures" hich ill enable
achievements to be monitored against the plan. $he HR 6lan should include budgets" targets and standards.
$hese plans may simply be reports on the numbers employed" recruited against targets etc.
SUCCESSION #9ANNING
17
Me%nin& of S*((e""ion #%nnin&
!uccession planning is the process or activities connected ith the succession of persons to fill #ey positions
in the organization hierarchy as vacancies arise. $he focus of attention is toards ]hich' person the
succession planning is needed. $he focus is not more on career development but it is more toards hat
#ind of person is required to fill the future vacancy. !uccession planning focuses on identification of
vacancies and locating the probable successor. Ror e1ample in succession planning the #ey concern can be
ho ill be ne1t ?9& or hat ill happen if the Mar#eting Manager retires in coming March.
I!$ort%n(e of S*((e""ion #%nnin&
!uccession planning helps hen there is a sudden need arises due to reason or retirement of a #ey
employee.
(ndividual employee comes to #no in advance the level to hich he can rise if he has the ability and
aptitude for it.
(ndividual employee or successor feels happy hen he feels that organization is ta#ing care of his
talents and aspirations.
!uccession planning helps create loyalty toards the organization and improved motivation and morale
of individual employees.
&rganization gains stable or#force and lo employee turnover.
Sltimately organization becomes successful in accomplishing its goals effectively.
CAREER #9ANNING
?areer planning is the process or activities offered by the organization to individuals to identify strengths"
ea#nesses" specific goals and jobs they ould li#e to occupy.
?areer as a concept means a lifelong sequences of professional" educational and developmental e1periences
that projects an individual through the orld of or#. (t is a sequence of positions occupied by a person
during his life. ?areer may also be defined as amalgamation of changes in values" attitudes and motivation
that occurs as a person gros older.
(n career planning" organization is concerned ith strategic questions of career development. Rurther the
organization is concerned about if it should employ more graduates" more engineers" more scientists or more
accountants etc. ?areer planning provides picture of succession plan for employees as per organizational
needs. (t focuses on the basis of performance" e1perience" could be placed here" hen and ho.
?areer planning is a process of integrating the employees' needs and aspirations ith organizational
requirements.
O+/e(ti0e" of C%reer #%nnin&
-. Quild commitment in the individual
.. +evelop long,range perspective
/. Reduce personal turnover e1penses
0. <essen employee obsolescence
2. 9nsure organizational effectiveness
3. 7llo individual to achieve personal and or# related goals.
I!$ort%n(e of C%reer #%nnin&
?areer planning is important because it helps the individual to e1plore" choose and strive to derive
18
satisfaction ith his on career objectives.
AD.ANTAGES OF HR #9ANNING
-. Racilitates scientific recruitment and selection of manpoer as per future needs
.. Ma#es HR+ programmes effective" this ensure full utilization of available manpoer.
/. 9nsures orderly or#ing and groth of an organization
0. Regulates labour costs and production costs and ensure adjustments beteen manpoer requirement
and manpoer available.
2. Motivate e1isting employees and #eep their morale high through training and manpoer
development programmes.
3. 6revents sudden disruption in the or#ing of organization" as it indicates shortages of particular
type's personnel in advance and facilitates suitable provisions.
9IMITATIONS OF HR #9ANNING
-. HR planning may be ineffective as future manpoer needs of organization are uncertain.
.. HR6 is time consuming and costly due to services of e1perts required for HR6.
/. (nadequate attention to environmental changes and corresponding future manpoer requirements )by
traditional management* ma#es HR6 redundant.
0. !hortage of s#illed labour and high labour turnover ma#es recruitment of required manpoer
difficult.
2. !urplus manpoer in a country li#e (ndia ma#es HR6 redundant.
-O, ANA9<SIS
-O,:
=ob is a ]group of tas#s to be performed everyday.
-O, ANA9<SIS
Definition 1: (.rocess of 'ollecting Inforation)
=ob 7nalysis is a process of studying and collecting information relating to operations and responsibilities
of a specific job. $he immediate products of this analysis are ]=ob +escription' and ]=ob !pecifications'.
Definition 2: (#ysteatic /0ploration of Activiti es)
=ob 7nalysis is a systematic e1ploration of activities ithin a job. (t is a basic technical procedure that is
used to define duties and responsibilities and accountabilities of the job.
Definition 3: (Identif ying 1ob &e2uireents)
=ob is a collection of tas#s that can be performed by a single employee to contribute to the production of
some product or service" provided by the organization. 9ach job has certain ability requirements )as ell as
certain reards* associated ith it. =ob 7nalysis is a process used to identify these requirements.
MEANING OF -O, ANA9<SIS
=ob 7nalysis is a process of collecting information about a job. $he process of job analysis results into to
sets of data.
=ob +escription
=ob !pecification
7s a result =ob analysis involves the folloing steps in a logical order.
(teps of )ob Analysis
19
-. ?ollecting and recording job information
.. ?hec#ing the job information for accuracy
/. @riting job description based on information collected to determine the s#ills" #noledge" abilities and
activities required
0. Spdating and upgrading this information
#UR#OSE OF -O, ANA9<SIS: -
H*!%n Re"o*r(e #%nnin& (HR#): , $he numbers and types of personnel are determined by the
jobs" hich need to be staffed. =ob related information in the form of =ob 7nalysis serves this purpose or
use.
Re(r*it!ent ' See(tion: , Recruitment precedes job analysis. (t helps HR to locate places to
obtain employees. (t also helps in better continuity and planning in staffing in the organization. 7lso
selecting a good candidate also requires detailed job information. Qecause the objective of hiring is to match
the right candidate for right job
Tr%inin& ' De0eo$!ent: $raining and development programs can be designed depending upon
job requirement and analysis. !election of trainees is also facilitated by job analysis.
-o+ E0%*%tion: =ob evaluation means determination of relative orth of each job for the purpose of
establishing age and salary credentials. $his is possible ith the help of job description and specifications;
i.e. =ob 7nalysis.
Re!*ner%tion: =ob analysis also helps in determining age and salary for all jobs.
#erfor!%n(e A$$r%i"%: 6erformance appraisal" assessments" reards" promotions" is facilitated
by job analysis by ay of fi1ing standards of job performance.
#er"onne Infor!%tion: =ob analysis is vital for building personnel information systems and
processes for improving administrative efficiency and providing decision support.
S%fet) ' He%t8: =ob 7nalysis helps to uncover hazardous conditions and unhealthy environmental
factors so that corrective measures can be ta#en to minimize and avoid possibility of human injury.
#ROCESS OF -O, ANA9<SIS
#ro(e"" 1: !trategic ?hoices
#ro(e"" 2: ?ollecting (nformation
#ro(e"" 3: 6rocessing (nformation
#ro(e"" B: =ob +escription
#ro(e"" E: =ob !pecification
Str%te&i( C8oi(e": -
E#tent of in!ol!ement of employees: 91tent of employee involvement is a debatable point. $oo
much involvement may result in bias in favor of a job in terms of inflating duties and responsibilities. $oo
less involvement leads to suspicion about the motives behind the job. Qesides it may also lead to inaccurate
information. Hence e1tent of involvement depends on the needs of the organization and employee.
Le!el of details of *ob analysis: $he nature of jobs being analyzed determines the level of details in
job analysis. (f the purpose ere for training programs or assessing the orth of job" levels of details
required ould be great. (f the purpose is just clarification the details required ould be less.
imin' and fre+uency of )ob Analysis: @hen do you do =ob 7nalysisU
(nitial stage" for ne organization
Ze =ob is created
?hanges in =ob" $echnology and 6rocesses
+eficiencies and +isparities in =ob
Ze compensation plan is introduced
Spdating and upgrading is required.
20
,ast"oriented and future"oriented )ob Analysis: Ror rapidly changing organization more future
oriented approach ould be desired. Ror traditional organizations past oriented analysis ould be required.
Hoever more future oriented analysis may be derived based on past data.
(ources of )ob &ata: Ror job analysis number of human and non,human sources is available besides
jobholder himself. Rolloing can be sources of data available for job analysis.
Non-H*!%n So*r(e" H*!%n So*r(e"
91isting job descriptions and specifications
9quipment maintenance records
9quipment design blueprints
7rchitectural blueprints of or# area
Rilms of employee or#ing
$raining manuals and materials
Magazines" nespapers" literatures
=ob 7nalysis
=ob (ncumbents
!upervisors
=ob 91perts
Coe(tin& Infor!%tion: -
(nformation collection is done on the basis of folloing / parameters
)ypes of %ata for 1ob Analysis3
@or# 7ctivities )$as#s details*
(nterface ith other jobs and equipment's )6rocedures" Qehaviors" Movements*
Machines" $ools" 9quipment's and @or# 7ids )<ist" Materials" 6roducts" !ervices*
=ob ?onte1t )6hysical" !ocial" &rganizational" @or# schedule*
6ersonal Requirement )!#ills" 9ducation" $raining" 91perience*
-ethods of %ata 'ollection3
&bservation
(ntervie
[uestionnaires
?hec#lists
$echnical ?onference
+iary Methods
4ho to 'ollect %ata5
$rained =ob 7nalysts
!upervisors
=ob (ncumbents
#ro(e""in& Infor!%tion: -
&nce the job information is collected it needs to be processed" so that it ould be useful in various personnel
functions. !pecifically job related data ould be useful to prepare job description and specifications" hich
form the ne1t to processes of job analysis.
METHODS OF DATA CO99ECTION:
-bser!ation: =ob 7nalyst carefully observes the jobholder and records the information in terms of hat"
ho the job is done and ho much time is ta#en. (t is a simple and accurate method" but is also time
consuming and inapplicable to jobs involving mental activities and unobservable job cycles. $he analysts
must be fully trained observers.
Inter!iew: (n this analyst intervies the jobholders" his supervisors to elicit information. (t can be
!tructured or Snstructured (ntervie. 7gain this is also a time consuming method in case of large
organizations. 6lus there is also a problem of bias.
21
.uestionnaires: 7 standard questionnaire is given to jobholder about his job" hich can be filled and
given bac# to supervisors or job analysts. $he questionnaire may contain job title" jobholder's name"
manager's name" reporting staff" description of job" list of main duties and responsibilities etc. (t is useful in
large number of staffs and less time consuming. Hoever the accuracy of information leaves much to be
desired.
Checklists: (t is more similar to questionnaire but the response sheet contains feer subjective judgments
and tends to be either yes or no variety. 6reparation of chec#list is a challenging job itself.
echnical Conference: Here a conference of supervisors is used. $he analysts initiate the discussions
providing job details. Hoever this method lac#s accuracy.
&iary %ethods: (n this method jobholder is required to note don their activities day by day in their
diary. (f done faithfully this technique is accurate and eliminates errors caused by memory lapses etc.
F*%ntit%ti0e Met8o6" of -o+ D%t% Coe(tion: -
#o"ition An%)"i" F*e"tionn%ire (#AF): -
67[ is a highly specialized instrument for analyzing any job in terms of employee activities. $he 67[
contains -:0 job elements on hich job are created depending on the degree to hich an element is present.
$hese elements are grouped together into 3 categories.
-. S % Ssability Y Sse of =ob
.. ( % (mportance of =ob
/. $ % $ime
0. 6 % 6ossibility of &ccurrence of =ob
2. 7 % 7pplicability of =ob
3. ! % !pecialty $as#s of =ob
$he primary advantage of 67[ is that it can be used to analyze almost every job. $his analysis provides a
comparison of a specific job ith other job classifications" particularly for selection and remuneration
purposes. Hoever 67[ needs to be completed by trained job analysts only rather than incumbents.
M%n%&e!ent #o"ition De"(ri$tion F*e"tionn%ire (M#DF): -
Highly structured questionnaire" containing .;5 elements relating to managerial responsibilities" demand"
restrictions and other position characteristics $hese .;5 elements are grouped under -/ categories.
67[ and M6+[ yield standardized informat ion about the or#er and the j ob.
F*n(tion% -o+ An%)"i": -
(t is a or#er oriented job anal yti cal approach" hich attempts to describe the hole
person on the job.
,ARRIERS OF -O, ANA9<SIS
!upport from $op Management
!ingle means and source" reliance on single method rather than combination
Zo $raining or Motivation to =obholders
7ctivities and +ata may be +istorted
-O, DESCRI#TION
=ob +escription implies objective listing of the job title" tas#s" and responsibilities involved in a job.
=ob description is a ord picture in riting of the duties" responsibilities and organizational relationships
that constitutes a given job or position. (t defines continuing or# assignment and a scope of responsibility
that are sufficiently different from those of the other jobs to arrant a specific title. =ob description is a
broad statement of purpose" scope" duties and responsibilities of a particular job.
22
Content" of -o+ De"(ri$tion
-. =ob (dentification
.. =ob !ummary
/. =ob +uties and Responsibilities
0. !upervision specification
2. Machines" tools and materials
3. @or# conditions
4. @or# hazards
5. +efinition of unusual terms
For!%t of -o+ De"(ri$tion
=ob $itle
RegionY<ocation
+epartment
Reporting to )&perational and Managerial*
&bjective
6rincipal duties and responsibilities
Fe%t*re" of Goo6 -o+ De"(ri$tion
-. Sp to date
.. 6roper =ob $itle
/. ?omprehensive =ob !ummary
0. ?lear duties and responsibilities
2. 9asily understandable
3. !tate job requirements
4. !pecify reporting relationships
5. !hocase degrees of difficulties
:. (ndicates opportunities for career development
-;. &ffer bird's,eye,vie of primary responsibilities
-O, S#ECIFICATIONS
=ob !pecification involves listing of employee qualifications" s#ills and abilities required to meet the job
description. $hese specifications are needed to do job satisfactorily.
(n other ords it is a statement of minimum and acceptable human qualities necessary to perform job
properly. =ob specifications see#s to indicate hat #ind of persons may be e1pected to most closely
appro1imate the role requirements and thus it is basically concerned ith matters of selection" screening and
placement and is intended to serve as a guide in hiring.
Content" of -o+ S$e(ifi(%tion"
-. 6hysical ?haracteristics
.. 6sychological characteristics
/. 6ersonal characteristics
0. Responsibilities
2. +emographic features
Rurther the job specifications can be divided into three broad categories
/ssential Attributes
%esirable Attributes
23
'ontra6Indicators 7 indicators hapering the success of (ob
-O, E.A9UATION
=ob 9valuation involves determination of relative orth of each job for the purpose of establishing age and
salary differentials. Relative orth is determined mainly on the basis of job description and job specification
only. =ob 9valuation helps to determine ages and salary grades for all jobs. 9mployees need to be
compensated depending on the grades of jobs hich they occupy. Remuneration also involves fringe
benefits" bonus and other benefits. ?learly remuneration must be based on the relative orth of each job.
(gnoring this basic principle results in inequitable compensation. 7 perception of inequity is a sure ay of
de,motivating an employee.
=ob evaluation is a process of analyzing and assessing the various jobs systematically to ascertain their
relative orth in an organization.
=obs are evaluated on the basis of content" placed in order of importance. $his establishes =ob Hierarchies"
hich is a purpose of fi1ation of satisfactory age differentials among various jobs.
=obs are ran#ed )not jobholders*
S(o$e of -o+ E0%*%tion
$he job evaluation is done for the purpose of age and salary differentials" demand for and supply of labor"
ability to pay" industrial parity" collective bargaining and the li#e.
#ro(e"" of -o+ E0%*%tion:
-. +efining objectives of job evaluation
a. (dentify jobs to be evaluated )Qenchmar# jobs or all jobs*
b. @ho should evaluate jobU
c. @hat training do the evaluators needU
d. Ho much time involvedU
e. @hat are the criteria for evaluationU
f. Methods of evaluation to be used
.. @age !urvey
/. 9mployee ?lassification
0. 9stablishing age and salary differentials.
Met8o6" of -o+ E0%*%tion
An%)ti(% Met8o6"
#oint R%n4in& Met8o6"8 +ifferent factors are selected for different jobs ith accompanying
differences in degrees and points.
F%(tor Co!$%ri"on Met8o6: $he important factors are selected hich can be assumed to be common
to all jobs. 9ach of these factors is then ran#ed ith other jobs. $he orth of the job is then ta#en by adding
together all the point values.
Non-An%)ti(% Met8o6"
R%n4in& Met8o6: =obs are ran#ed on the basis of its title or contents. =ob is not bro#en don into
factors etc.
-o+ Gr%6in& Met8o6: (t is based on the job as a hole and the differentiation is made on the basis of
job classes and grades. (n this method it is important to form a grade description to cover discernible
differences in s#ills" responsibilities and other characteristics.
24
#itf%" of -o+ E0%*%tion:
9ncourages employees on ho to advance in position hen there may be limited opportunities for
enhancement as a result of donsizing.
(t promotes internal focus instead of customer orientation
Zot suitable for forard loo#ing organizations" hich has trimmed multiple job titles into to or three
broad jobs.
-O, DESIGN
$he <ogical !equence to =ob 7nalysis is =ob +esign.
Definition 1: Integration of !or+" re!ards and 2ualification
=ob +esign integrates or# content )tas#s" functions" and relationships*" the reards and qualifications
required including s#ills" #noledge and abilities for each job in a ay that meets the needs of employees
and the organization.
Ste$" in -o+ De"i&n: -
-. !pecification of (ndividual $as#s
.. !pecification of Methods of $as#s 6erformance
/. ?ombination of $as#s into !pecific =obs to be assigned to individuals
F%(tor" %ffe(tin& -o+ De"i&n: -
Or&%ni 1%tion% f%(tor":
?haracteristics of $as#s )6lanning" 91ecution and ?ontrolling of $as#*
@or# Rlo )6rocess !equences*
9rgonomics )$ime > Motion !tudy*
@or# 6ractices )!et of ays of performing tas#s*
En0iron!ent% F%(tor":
9mployee 7bilities and 7vailability
!ocial and ?ultural 91pectations
,e8%0ior% Ee!ent":
Reedbac#
7utonomy
Sse of 7bilities
^ariety
TECHNIFUES OF -O, DESIGN: -
;or4 Si!$ifi(%tion: =ob is simplified or specialized. $he job is bro#en don into small parts and each
part is assigned to an individual. $o be more specific" or# simplification is mechanical pacing of or#"
repetitive or# processes" or#ing only on one part of a product" predetermining tools and techniques"
restricting interaction amongst employees" fe s#ills requirement. @or# simplification is used hen jobs are
not specialized.
-o+ Rot%tion: @hen incumbents become bore of routine jobs" job rotation is an anser to it. Here jobs
remain unchanged" but the incumbents shift from one job to another. &n the positive side" it increases the
intrinsic reard potential of a job because of different s#ills and abilities needed to perform it. @or#ers
25
become more competent in several jobs" #no variety of jobs and improve the self,image" personal groth.
Rurther the or#er becomes more valuable to the organization. 6eriodic job changes can improve
interdepartmental cooperation. &n the negative side" it may not be much enthusiastic or efficiency may not
be more. Qesides jobs may not improve the relationships beteen tas#" hile activities and objectives
remain unchanged. Rurther training costs also rise and it can also de,motivate intelligent and ambitious
trainees ho see# specific responsibilities in their chosen specialties.
-o+ En%r&e!ent: (t means e1panding the number of tas#s" or duties assigned to a given job. =ob
enlargement is naturally opposite to or# simplification. 7dding more tas#s or duties to a job does not mean
that ne s#ills and abilities are needed. $here is only horizontal e1pansion. (t is ith same s#ills ta#ing
additional responsibilities li#e e1tending or#ing hours etc. =ob enlargement may involve brea#ing up of the
e1isting or# system and redesigning a ne or# system. Ror this employees also need to be trained to
adjust to the ne system. =ob enlargement is said to contribute to employee motivation but the claim is not
validated in practice.
/enefits of )ob Enlar'ement:
-. $as# ^ariety
.. Meaningful @or# Modules
/. Rull 7bility Stilization
0. @or#er 6aced ?ontrol
2. Meaningful 6erformance Reedbac#
&isad!anta'es of )ob Enlar'ement
-. High $raining ?osts
.. Redesigning e1isting or# system required
/. 6roductivity may not increase necessarily
0. @or#load increases
2. Snions demand pay%hi#e
3. =obs may still remain boring and routine
-o+ Enri(8!ent: =ob enrichment is improvisation of both tas#s efficiency and human satisfaction by
building into people's jobs" quite specifically" greater scope for personal achievement and recognition" more
challenging and responsible or# and more opportunity for individual advancement and groth. 7n
enriched job ill have more responsibility" more autonomy )vertical enrichment*" and more variety of tas#s
)horizontal enrichment* and more groth opportunities. $he employee does more planning and controlling
ith less supervision but more self,evaluation. (n other ords" transferring some of the supervisor's tas#s to
the employee and ma#ing his job enriched.
,enefit" of -o+ enri(8!ent
-. (t benefits employee and organization in terms of increased motivation" performance"
satisfaction" job involvement and reduced absenteeism.
.. 7dditional features in job meet certain psychological needs of jobholders due to s#ill variety"
identity" significance of job etc.
/. (t also adds to employee self,esteem and self,control.
0. =ob enrichment gives status to jobholder and acts as a strong satisfier in one's life.
2. =ob enrichment stimulates improvements in other areas of organization.
3. 9mpoerment is a by,product of job enrichment. (t means passing on more authority and
responsibility.
De!erit" of -o+ Enri(8!ent
-. <azy employees may not be able to ta#e additional responsibilities and poer. (t on't fetch the
desired results for an employee ho is not attentive toards his job.
26
.. Snion's resistance" increased cost of design and implementation and limited research on long
term effect of job enrichment are some of the other demerits.
/. =ob enrichment itself might not be a great motivator since it is job,intrinsic factor. 7s per the
to,factor motivation theory" job enrichment is not enough. (t should be preceded by hygienic factors etc.
0. =ob enrichment assumes that or#ers ant more responsibilities and those or#ers ho are
motivated by less responsibility" job enrichment surely de,motivates them
2. @or#ers participation may affect the enrichment process itself.
3. ?hange is difficult to implement and is alays resisted as job enrichment brings in a changes the
responsibility.
A*tono!o*" of Sef-Dire(te6 Te%!": 9mpoerment results in self,directed or# teams. 7 self %
directed team is an intact group of employees responsible for hole or# segment" they or# together"
handle day,to,day problems" plan and control" and are highly effective teams.
Hi&8 #erfor!%n(e ;or4 De"i&n: (mproving performance in an environment here positive and
demanding goals are set leads to high performance or# design. (t starts from the principle of autonomous
groups or#ing and developing an approach" hich enables group to or# effectively together in situations
here the rate of innovation is very high. &perational fle1ibility is important and there is the need for
employees to gain and apply ne s#ills quic#ly ith minimum supervision. Hoever due to bureaucracy
high performance or# design does not or#.
DESIGNING -O,S MOTI.ATING -O,S
$he concept of motivating jobs relates to =ob design. =ob design affects employee productivity" motivation
and satisfaction. =ob design is a conscious effort to organize tas#s" duties and responsibilities into a unit of
or# to achieve certain objectives.
Ho a job design creates a motivating job can be seen ith the help of certain components of job design"
namely" job rotation" job enlargement" job enrichment" or# simplification etc.
@or# simplification simplifies the job by brea#ing don the job into small parts. !implified jobs are easy to
perform hence employees find it easy to do. $raining requirements are reduced and it benefits the
organizations in terms of cost.
=ob rotation means movement of employees of job to job across the organization. (t improves the intrinsic
reard potential of a job because of different s#ills and abilities are needed to perform a job. @or#ers
become more competent in several jobs rather than only one. (t also improves or#ers self image" provides
personal groth and ma#es or#ers more valuable to the organization. 6eriodic job change can improve
inter,departmental cooperation. 9mployees become more understanding to each other's problems.
?onsequently it provides a high level of motivation to employees because jobs itself become motivators.
Hence job rotation helps the job become more motivating.
=ob enlargement involves e1panding number of tas#s or duties assigned to a given job.
=ob enrichment involves improving tas# efficiency and human satisfaction. =ob enrichment provides greater
scope for personal achievement and recognition" more challenging and responsible or# and more
opportunity for individual advancement and groth. 7n enriched job gives vertical enrichment in the form
of more responsibility and autonomy and a horizontal enrichment in the form of variety of tas#s and more
groth opportunities. $he employee does more planning and controlling ith less supervision but more self,
evaluation. 7ll these factors lead to increased level of motivation and hence ma#e the jobs more motivated.
?onsidering above e1amples" e can say that designing jobs is actually using the relevant and right
techniques of job design" li#e rotation" enrichment" simplifications and ma#e the jobs more motivating to
27
perform.
!o e can say that +esigning =obs is actually creating Motivated =obs.
-O, SATISFACTION
=ob satisfaction is the result of various attitudes possessed by an employee toards his job" related factors
and life in general. $he attitudes related to job may be ages" supervision" steadiness" or#ing conditions"
advancement opportunities" recognitions" fair evaluation of or#" social relations on job" prompt settlement
of grievances etc.
(n short job satisfaction is a general attitude" hich is the result of many specific attitudes in three areas
namely" job factors" individual characteristics and group relationships outside the job.
Co!$onent" of -o+ S%ti"f%(tion
#er"on% f%(tor": !e1" +ependents" 7ge" $imings" (ntelligence" 9ducation and 6ersonality.
-o+ in8erent f%(tor": $ype of or#" !#ills" &ccupational status" Teography" !ize of plant
M%n%&e!ent (ontroe6 f%(tor": !ecurity" 6ayment" Rringe benefits" 7dvancement opportunities and
@or#ing conditions" ?o,or#ers" Responsibilities" !upervision
-o+ S%ti"f%(tion ' ,e8%0ior re%tion"8i$ i" 6e"(ri+e6 t8ro*&8 foo3in& e=%!$e"5
!atisfaction > $urnover
!atisfaction > 7bsenteeism
!atisfaction > 7ccidents
!atisfaction > =ob 6erformance
;OR? SAM#9ING
Definition 1: -easuring and 2uantifying activities
_7 measurement technique for the quantitative analysis of non,repetitive or irregularly occurring activity._
Me%nin& of ;or4 S%!$in&
@or# sampling is based on the theory that the percentage of the number of observations on a particular
activity is a reliable measure of the percentage of the total actual time spent on that activity.
@or# sampling operates by an observer ta#ing a series of random observations on a particular _thing_ of
interest )machine" operating room" doc#" etc.* to observe its _state_ )or#ing" idle" sleeping" empty" etc.*.
@hen enough samples are ta#en" an analysis of the observations yields a statistically valid indication of the
states for each thing analyzed.
7ssume" for e1ample" that you ish to determine the proportion of time a factory operator is or#ing or
idle. 7lso assume that .;; random observations ere made of the operator and during .0 of these he or she
as observed to be idle. $herefore" you find that the individual is or#ing -43Y.;; ` 55V of the time.
A60%nt%&e" of ;or4 S%!$in&
(t is relatively ine1pensive to use and e1tremely helpful in providing a deeper understanding of all types of
operations.
28
@hen properly used" it can help pinpoint those areas" hich should be analyzed in" further detail and can
serve as a measure of the progress being made in improving operations.
F*e"tion" of 3or4 "%!$in& "t*6)
@hat is our equipmentYasset utilizationU
@hen e are not adding value to the product" ho are e spending our timeU
Ho are our inter,dependent systems performingU
@here should e focus our continuous improvement activitiesU
Di"tin(tion +et3een ;or4 "%!$in& %n6 GTi!e St*6ie"G
@or# sampling is loer cost because it uses random samples instead of continuous observations.
Many operators or machines can be studied by a single observer
@or# sampling can span several days or ee#s" thus minimizing the effects of day to day load or
equipment variations
@or# !ampling tends to minimize operator behavior modification during observation.
@or# !ampling" in general" does not require a trained time,study analyst to ta#e the observations. 7lso"
stopatches or other timing devices are not required. Many studies ma#e use of off,shift technicians or
operators to ta#e the observations.
;or4 "%!$in& Met8o6oo&)
7n analyst R7Z+&M<a observes an activity )equipment" operating room" production line* and notes the
particular states of the activity at each observation.
$he ratio of the number of observations of a given state of the activity to the total number of observations
ta#en ill appro1imate the percentage of time that the activity is in that given state.
Zote that random observations are very critical for a or# sampling study. 7 brief e1ample might be that 44
of -;; observations shoed a machine to be running. @e might then conclude" ithin certain statistical
limits" that the equipment is operational 44V of the time.
RECRUITMENT ' SE9ECTION
RECRUITMENT
Definition of Re(r*it!ent: 8inding and Attracting Applications
Recruitment is the 6rocess of finding and attracting capable applicants for employment. $he 6rocess begins
hen ne recruits are sought and ends hen their applications are submitted. $he result is a pool of
application from hich ne employees are selected.
MEANING OF RECRUITMENT:
Recruitment is understood as the process of searching for and obtaining applicants for jobs" from among
them the right people can be selected. $hough theoretically recruitment process is said to end ith the
receipt of applications" in practice the activity e1tends to the screening of applications so as to eliminate
those ho are not qualified for the job.
#UR#OSE AND IM#ORTANCE OF RECRUITMENT: -
-. +etermine the present and future requirements in conjunction ith personnel planning and job analysis
activities
.. (ncrease the pool of job candidates at minimum cost
29
/. Help increase success rate of selection process by reducing number of under,qualified or over,qualified
applications.
0. Reduce the probability that job applicants once selected ould leave shortly
2. Meet legal and social obligations
3. (dentify and prepare potential job applicants
4. 9valuate effectiveness of various recruitment techniques and sources for job applicants.
FACTORS GO.ERNING RECRUITMENT
E=tern% F%(tor":
+emand and !upply )!pecific !#ills*
Snemployment Rate )7rea,ise*
<abor Mar#et ?onditions
6olitical and <egal 9nvironment )Reservations" <abor las*
(mage
Intern% F%(tor"
Recruitment 6olicy )(nternal Hiring or 91ternal HiringU*
Human Resource 6lanning )6lanning of resources required*
!ize of the &rganization )Qigger the size lesser the recruitment problems*
?ost
Troth and 91pansion 6lans
SOURCSES 2 METHODS OF MANAGERIA9 RECRUITMENT
Intern% So*r(e" of M%n$o3er
-. ,romotions: 6romotions means an improvement in pay" position" authority" status and
responsibilities of an employee ithin the organisation. (n non,unionized companies promotions are
made on merit bases hile in government departments it is on seniority basis.
.. ransfers: $ransfer means filling a ne vacancy in the organisation by shifting of e1isting employee
ithin the organisation.
/. Internal 0otification: !ince employees #no requirements of the job and hat sort of person the
company is loo#ing for. &ften they have friends and acquaintances ho meet these requirements.
$hus sometimes company issues an internal advertisement for the benefit of e1isting employees.
0. $etirements: !ometimes management may not find the suitable candidate in place of the retired
employee. Snder the circumstances management may call retired manager ith ne e1tension.
2. $ecalls: @hen management faces a problem that can be solved only by a manager ho has
proceeded on long leave" management may call that person. 7fter the problem is solved" his leave
may be e1tended.
3. Former Employee: (ndividuals" ho left for some other job" might be illing to come bac# for
higher ages and incentives.
%erits of Internal (ources
-. (t is economical" quic# and most reliable method
.. $he present employees already #no the company ell.
/. (t provides security and continuity of employment.
0. 6eople recruited internally do not need induction training.
2. (t reduced labour turnover as capable employees get internal promotions.
De!erit" of Intern% So*r(e"
30
-. (t prevents the entry of young blood in the organization.
.. (t unable the organization to attract capable persons from outside.
/. (t may encourage favoritism and nepotism ithin the organization.
0. 6romotions create a feeling of discontent among those ho are not promoted.
2. 6romotions may not be possible due to non,availability of competent person.
E=tern% So*r(e of M%n$o3er
12 Campus (election
$he groth of management institutes" (($s and engineering colleges has provided a popular source of
recruitment #non as ?ampus !election.
6rocedure8
i* !election committee of company personally visits the institute campus.
ii* (nformation are collected from interested students and intervieed ithin the campus.
iii* !uitable candidates are selected and as#ed to join the organisation after final e1am result
7dvantages8
i* (t is easy" quic# and economical
ii* (t is convenient to the company as ell as candidates.
iii* (t is an e1cellent source of selecting management trainees.
iv* 6romising students get job security immediately after securing degree.
32 ,ress Ad!ertisement
6ress advertisement is also called Recruitment 7dvertisement" as its purpose is to give publicity to vacancies
available in the organisation and to appeal deserving candidates to submit their applications. Recruitment
7dvertisement has folloing contents8
, +etails of the job i.e. job description and job specification.
, (nformation to be supplied
, ?opies of documents to be attached
, $o hom the application is to be submitted
, 6erforma of application blan#" so that the candidates submit e1act information required by the company.
42 $ecruitment hrou'h Consultants and ,ri!ate Employment E#chan'es: Management consultants select
suitable staff required by the business unit. Ror this they publish advertisement" conduct tests and arrange
intervies. !imilarly private employment e1changes #eep details of candidates interested in jobs and
provide services to employers. $his source is mainly useful for the selection of top,level e1ecutives. 9.g.
$ata ?onsultancy !ervices" birlos#ar ?onsultants.
52 &eputation of ,ersonnel: Ror e1ecutive position for short period" the services of an e1ecutive from
31
another company can be used on loan basis. $his is #non as deputation. $his is quite common in the case
of sister concerns.
62 %ana'ement rainin' (cheme: Here" the young talented candidates of the age group of .; to .2 are
selected as trainee e1ecutives in different areas such as accounts" technical" mar#eting etc. 7fter selection"
candidates are sent to their institutes for e1ecutive training. 7fter completion of training they are appointed
as a regular manager.
72 Walk"ins8 Write"ins8 and alk"ins: (n these methods the candidates submit their resumes directly to the
employer. @al#,ins are those here on advertisement mentioned date and time applicant al#,in for an
intervie. @rite,ins are those ho send ritten application. (n tal#,ins the applicants are required to meet
the employer for detailed tal#s.
92 %iscellaneous (ources:
i* 7ppointment of retired officers from civil services or from public sectors
ii* 6rofessional meetings for the selection of e1ecutives
iii* 7ssistance from professional associations
iv* Sse of e1ecutive placement agencies
v* Tovernment employment 91changes
Merit" of E=tern% So*r(e"
-. 9ntry of young blood in the organisation is possible
.. @ide scope is available for selection
/. !election can be made in an impartial manner
0. Reservation can be provided to the bac#ard section of the society.
De!erit" of E=tern% So*r(e"
-. (t leads to labour turnover particularly of s#illed and e1perienced employees.
.. 91isting employees may lose their sense of security.
/. Relations beteen employer and employee deteriorate leading to industrial disputes.
RECRUITMENT #ROCESS
Re(r*it!ent #%nnin&
Zumber of contacts
$ypes of contacts
Re(r*it!ent Str%te&) De0eo$!ent
Ma#e or Quy 9mployees
$echnological !ophistication
@here to loo#
Ho to loo#
Intern% Re(r*it!ent (So*r(e 1)
6resent employees
9mployee referrals
32
$ransfers > 6romotions
Rormer 9mployees
6revious 7pplicants
9valuation of (nternal Recruitment
E=tern% Re(r*it!ent (So*r(e 2)
6rofessionals or $rade 7ssociations
7dvertisements
9mployment 91changes
?ampus Recruitment
@al#,ins (ntervies
?onsultants
?ontractors
+isplaced 6ersons
Radio > $elevision
7cquisitions > Mergers
?ompetitors
9valuation of 91ternal Recruitment
Se%r(8in&
!ource activation
!elling
!creening of 7pplications
E0%*%tion %n6 Co"t Contro
!alary ?ost
Management > 6rofessional $ime spent
7dvertisement ?ost
6roducing !upporting literature
Recruitment &verheads and 91penses
?ost of &vertime and &utsourcing
?onsultant's fees
E0%*%tion of Re(r*it!ent #ro(e""
Return rate of applications sent out
!uitable ?andidates for selection
Retention and 6erformance of selected candidates
Recruitment ?ost
$ime lapsed data
(mage projection
INTERNA9 RECRUITMENT
A60%nt%&e" Di"%60%nt%&e"
-. <ess ?ostly
.. ?andidates already oriented toards
organization
/. &rganizations have better #noledge
about internal candidates
0. 9mployee morale and motivation is
enhanced
-. &ld concept of doing things
.. (t abets raiding
/. ?andidates current or# may be
affected
0. 6olitics play greater roles
2. Morale problem for those not
promoted.
EHTERNA9 RECRUITMENT
A60%nt%&e" Di"%60%nt%&e"
33
-. Qenefits of ne s#ills and talents
.. Qenefits of ne e1periences
/. ?ompliance ith reservation policy
becomes easy
0. !cope for resentment" jealousies" and
heartburn are avoided.
-. Qetter morale and motivation
associated ith internal recruiting is denied
.. (t is costly method
/. ?hances of creeping in false positive
and false negative errors
0. 7djustment of ne employees ta#es
longer time.
SE9ECTION: -
MEANING OF SE9ECTION:
!election is the process of pic#ing up individuals )out of the pool of job applicants* ith requisite
qualifications and competence to fill jobs in the organization. 7 formal definition of !election is as under
Definition of See(tion: .rocess of differentiating
!election is the process of differentiating beteen applicants in order to identify and hire those ith a
greater li#elihood of success in a job.
DIFFERENCE ,ET;EEN RECRUITMENT AND SE9ECTION:
Re(r*it!ent See(tion
-. Recruitment refers to the process of
identifying and encouraging prospective
employees to apply for jobs.
.. Recruitment is said to be positive in its
approach as it see#s to attract as many
candidates as possible.
-. !election is concerned ith pic#ing up
the right candidates from a pool of
applicants.
.. !election on the other hand is negative
in its application in as much as it see#s to
eliminate as many unqualified applicants as
possible in order to identify the right
candidates.
#ROCESS 2 STE#S IN SE9ECTION
-. #rei!in%r) Inter0ie3: $he purpose of preliminary intervies is basically to eliminate unqualified
applications based on information supplied in application forms. $he basic objective is to reject misfits. &n
the other hands preliminary intervies is often called a courtesy intervie and is a good public relations
e1ercise.
.. See(tion Te"t": =obsee#ers ho past the preliminary intervies are called for tests. $here are
various types of tests conducted depending upon the jobs and the company. $hese tests can be 7ptitude
$ests" 6ersonality $ests" and 7bility $ests and are conducted to judge ho ell an individual can perform
tas#s related to the job. Qesides this there are some other tests also li#e (nterest $ests )activity preferences*"
Traphology $est )Handriting*" Medical $ests" 6sychometric $ests etc.
/. E!$o)!ent Inter0ie3: $he ne1t step in selection is employment intervie. Here intervie is a
formal and in,depth conversation beteen applicant's acceptability. (t is considered to be an e1cellent
selection device. (ntervies can be &ne,to,&ne" 6anel (ntervie" or !equential (ntervies. Qesides there can
be !tructured and Snstructured intervies" Qehavioral (ntervies" !tress (ntervies.
0. Referen(e ' ,%(4&ro*n6 C8e(4": Reference chec#s and bac#ground chec#s are conducted to
verify the information provided by the candidates. Reference chec#s can be through formal letters" telephone
conversations. Hoever it is merely a formality and selections decisions are seldom affected by it.
2. See(tion De(i"ion: 7fter obtaining all the information" the most critical step is the selection
decision is to be made. $he final decision has to be made out of applicants ho have passed preliminary
intervies" tests" final intervies and reference chec#s. $he vies of line managers are considered generally
34
because it is the line manager ho is responsible for the performance of the ne employee.
3. #8)"i(% E=%!in%tion: 7fter the selection decision is made" the candidate is required to undergo a
physical fitness test. 7 job offer is often contingent upon the candidate passing the physical e1amination.
4. -o+ Offer: $he ne1t step in selection process is job offer to those applicants ho have crossed all the
previous hurdles. (t is made by ay of letter of appointment.
5. Contr%(t of E!$o)!ent: 7fter the job offer is made and candidates accept the offer" certain
documents need to be e1ecuted by the employer and the candidate. Here is a need to prepare a formal
contract of employment" containing ritten contractual terms of employment etc.
ESSENTIA9S OF A GOOD SE9ECTION #RACTICE
-. +etailed job descriptions and job specifications prepared in advance and endorsed by personnel and line
management
.. $rained the selectors
/. +etermine aids to be used for selection process
0. ?hec# competence of recruitment consultants before retention
2. (nvolve line managers at all stages
3. 7ttempt to validate the procedure
4. Help the appointed candidate to succeed by training and management development
,ARRIERS TO EFFECTI.E SE9ECTION: -
-. #er(e$tion: @e all perceive the orld differently. &ur limited perceptual ability is obviously a
stumbling bloc# to the objective and rational selection of people.
.. F%irne"": Qarriers of fairness includes discrimination against religion" region" race or gender etc.
/. .%i6it): 7 test that has been validated can differentiate beteen the employees ho can perform ell
and those ho ill not. Hoever it does not predict the job success accurately.
0. Rei%+iit): 7 reliable test may fail to predict job performance ith precision.
2. #re""*re: 6ressure brought on selectors by politicians" bureaucrats" relatives" friends and peers to
select particular candidate are also barriers to selection.
Re(r*it!ent See(tion (Nov. 09)
&efinition:
7ccording to 9din Rlippo" Recruitment is
the process of searching for prospective
employees and stimulating them to apply for
jobs in the organization.
!election is a process of choosing most
suitable candidates out of many interested
candidates.
,urpose:
$o attract ma1imum number or interested
candidates through applications.
$o select the best candidates out of those
qualified and interested in appointment.
,riority:
Recruitment is prior to selection. (t creates
actual base for proper selection.
!election is ne1t to recruitment.
0ature of Function:
(t is a positive function in hich interested
candidates are encouraged to submit
applications.
(t is a negative function in hich the
unsuitable candidates are eliminated and the
best one is selected.
,rocess:
(t is a short process" only publicity is given to
vacancies and applications are collected.
(t is a lengthy process" involves scrutiny of
applications" giving tests" intervie and
medical e1aminations.
E#pert:s (er!ice:
!ervices of e1perts are not required
!ervices of e1perts are required
Cost In!ol!ed: (t is a costly process" e1penditure is needed
35
(t is not costly" only e1penditure is
advertisement given for publicity.
for testing candidates and conducting
intervies.
(teps In!ol!ed:
i* ^acancies available are finalized
ii* 6ublicity is given to them
iii* 7pplications are collected
i* 7pplications are scrutinized
ii* $ests" intervies and medical
e1aminations are conducted.
TRAINING ' DE.E9O#MENT
Definition of Tr%inin& ' De0eo$!ent: Iprove perforance
:)raining ; %evelopent is any attempt to improve current or future employee performance by increasing
an employee's ability to perform through learning" usually by changing the employee's attitude or increasing
his or her s#ills and #noledge.
MEANING OF TRAINING ' DE.E9O#MENT: -
$he need for $raining and +evelopment is determined by the employee's performance deficiency" computed
as follos.
$raining > +evelopment Zeed ` !tandard 6erformance % 7ctual 6erformance
@e can ma#e a distinction among $raining" +evelopment and 9ducation.
Di"tin(tion +et3een Tr%inin& %n6 E6*(%tion
Tr%inin& E6*(%tion
7pplication oriented
=ob e1perience
!pecific $as# in mind
Zarro 6erspective
$raining is =ob !pecific
$heoretical &rientation
?lassroom learning
?overs general concepts
Has Qroad 6erspective
9ducation is no bar
Tr%inin&: $raining refers to the process of imparting specific s#ills. 7n employee undergoing training is
presumed to have had some formal education. Zo training program is complete ithout an element of
education. Hence e can say that $raining is offered to operatives.
E6*(%tion: (t is a theoretical learning in classrooms. $he purpose of education is to teach theoretical
concepts and develop a sense of reasoning and judgment. $hat any training and development program must
contain an element of education is ell understood by HR !pecialists. 7ny such program has university
professors as resource persons to enlighten participants about theoretical #noledge of the topics proposed
to discuss. (n fact organizations depute or encourage employees to do courses on part time basis. ?9&s are
#non to attend refresher courses conducted by business schools. $he education is more important for
managers and e1ecutives rather than lo cadre or#ers. 7nyays education is common to all employees"
their grades notithstanding.
De0eo$!ent: +evelopment means those learning opportunities designed to help employees to gro.
+evelopment is not primarily s#ills oriented. (nstead it provides the general #noledge and attitudes" hich
ill be helpful to employers in higher positions. 9fforts toards development often depend on personal
drive and ambition. +evelopment activities such as those supplied by management development programs
36
are generally voluntary in nature. +evelopment provides #noledge about business environment"
management principles and techniques" human relations" specific industry analysis and the li#e is useful for
better management of a company.
O+/e(ti0e" of (MD#) M%n%&e!ent De0eo$!ent #ro&r%!" OR
A60%nt%&e" of De0eo$!ent
-. Ma#ing them
!elf,starters
?ommitted
Motivated
Result oriented
!ensitive to environment
Snderstand use of poer
.. ?reating self aareness
/. +evelop inspiring leadership styles
0. (nstill zest for e1cellence
2. $each them about effective communication
3. $o subordinate their functional loyalties to the interests of the organization
Differen(e +et3een Tr%inin& %n6 De0eo$!ent
Tr%inin& De0eo$!ent
$raining is s#ills focused +evelopment is creating learning abilities
$raining is presumed to have a formal
education
+evelopment is not education dependent
$raining needs depend upon lac# or
deficiency in s#ills
+evelopment depends on personal drive
and ambition
$rainings are generally need based +evelopment is voluntary
$raining is a narroer concept focused on
job related s#ills
+evelopment is a broader concept focused
on personality development
$raining may not include development +evelopment includes training herever
necessary
$raining is aimed at improving job related
efficiency and performance
+evelopment aims at overall personal
effectiveness including job efficiencies
;8%t %re t8e Tr%inin& In$*t"@
!#ills
9ducation
+evelopment
9thics
6roblem !olving !#ills
+ecision Ma#ing
37
7ttitudinal ?hanges
I!$ort%n(e of Tr%inin& ' De0eo$!ent
Helps remove performance deficiencies in employees
Treater stability" fle1ibility and capacity for groth in an organization
7ccidents" scraps and damages to machinery can be avoided
!erves as effective source of recruitment
(t is an investment in HR ith a promise of better returns in future
Reduces dissatisfaction" absenteeism" complaints and turnover of employees
Nee6 of Tr%inin&
In6i0i6*% e0e
+iagnosis of present problems and future challenges
(mprove individual performance or fi1 up performance deficiency
(mprove s#ills or #noledge or any other problem
$o anticipate future s#ill,needs and prepare employee to handle more challenging tas#s
$o prepare for possible job transfers
Gro*$ e0e
$o face any change in organization strategy at group levels
@hen ne products and services are launched
$o avoid scraps and accident rates
I6entifi(%tion of Tr%inin& Nee6" (Met8o6")
In6i0i6*% Tr%inin& Nee6" I6entifi(%tion
-. 6erformance 7ppraisals
.. (ntervies
/. [uestionnaires
0. 7ttitude !urveys
2. $raining 6rogress Reedbac#
3. @or# !ampling
4. Rating !cales
Gro*$ 9e0e Tr%inin& Nee6" I6entifi(%tion
-. &rganizational Toals and &bjectives
.. 6ersonnel Y !#ills (nventories
/. &rganizational ?limate (ndices
0. 9fficiency (ndices
2. 91it (ntervies
3. MQ& Y @or# 6lanning !ystems
4. [uality ?ircles
5. ?ustomer !atisfaction !urvey
:. 7nalysis of ?urrent and 7nticipated ?hanges
,enefit" of Tr%inin& Nee6" I6entifi(%tion
-. $rainers can be informed about the broader needs in advance
.. $rainers 6erception Taps can be reduced beteen employees and their supervisors
/. $rainers can design course inputs closer to the specific needs of the participants
0. +iagnosis of causes of performance deficiencies can be done
38
Met8o6" of Tr%inin&
On t8e -o+ Tr%inin&": $hese methods are generally applied on the or#place hile employees are actually
or#ing. Rolloing are the on,the,job methods.
A60%nt%&e" of On-t8e--o+ Tr%inin&:
(t is directly in the conte1t of job
(t is often informal
(t is most effective because it is learning by e1perience
(t is least e1pensive
$rainees are highly motivated
(t is free from artificial classroom situations
Di"%60%nt%&e" of On-t8e--o+ Tr%inin&:
$rainer may not be e1perienced enough to train
(t is not systematically organized
6oorly conducted programs may create safety hazards
On t8e -o+ Tr%inin& Met8o6"
-. -o+ Rot%tion: (n this method" usually employees are put on different jobs turn by turn here they
learn all sorts of jobs of various departments. $he objective is to give a comprehensive aareness about the
jobs of different departments. 7dvantage % employee gets to #no ho his on and other departments also
function. (nterdepartmental coordination can be improved" instills team spirit. +isadvantage % (t may
become too much for an employee to learn. (t is not focused on employees on job responsibilities.
9mployees basic talents may remain under utilized.
.. -o+ Co%(8in&: 7n e1perienced employee can give a verbal presentation to e1plain the nitty,gritty's
of the job.
/. -o+ In"tr*(tion: (t may consist an instruction or directions to perform a particular tas# or a function.
(t may be in the form of orders or steps to perform a tas#.
0. A$$renti(e"8i$": Tenerally fresh graduates are put under the e1perienced employee to learn the
functions of job.
2. Intern"8i$" %n6 A""i"t%nt"8i$": 7n intern or an assistants are recruited to perform a specific time,
bound jobs or projects during their education. (t may consist a part of their educational courses.
Off t8e -o+ Tr%inin&": $hese are used aay from or# places hile employees are not or#ing li#e
classroom trainings" seminars etc. Rolloing are the off,the,job methods;
A60%nt%&e" of Off-t8e--o+ Tr%inin&:
$rainers are usually e1perienced enough to train
(t is systematically organized
9fficiently created programs may add lot of value
Di"%60%nt%&e" of Off-t8e--o+ Tr%inin&:
(t is not directly in the conte1t of job
(t is often formal
(t is not based on e1perience
(t is least e1pensive
$rainees may not be highly motivated
(t is more artificial in nature
Off t8e -o+ Tr%inin& Met8o6"
39
-. C%""roo! 9e(t*re": (t is a verbal lecture presentation by an instructor to a large audience.
7dvantage % (t can be used for large groups. ?ost per trainee is lo. +isadvantages % <o popularity. (t is
not learning by practice. (t is &ne,ay communication. Zo authentic feedbac# mechanism. <i#ely to
boredom.
.. A*6io-.i"*%: (t can be done using Rilms" $elevisions" ^ideo" and 6resentations etc. 7dvantages %
@ide range of realistic e1amples" quality control possible". +isadvantages % &ne,ay communication" Zo
feedbac# mechanism. Zo fle1ibility for different audience.
/. Si!*%tion: creating a real life situation for decision,ma#ing and understanding the actual job
conditions give it. Rolloing are some of the simulation methods of trainings
a. C%"e St*6ie": (t is a ritten description of an actual situation and trainer is supposed to
analyze and give his conclusions in riting. $he cases are generally based on actual organizational
situations. (t is an ideal method to promote decision,ma#ing abilities ithin the constraints of limited data.
b. Roe #%)": Here trainees assume the part of the specific personalities in a case study and
enact it in front of the audience. (t is more emotional orientation and improves interpersonal relationships.
7ttitudinal change is another result. $hese are generally used in M+6.
c. Sen"iti0it) Tr%inin&"8 $his is more from the point of vie of behavioral assessment" under
different circumstances ho an individual ill behave himself and toards others. $here is no preplanned
agenda and it is instant. 7dvantages % increased ability to empathize" listening s#ills" openness" tolerance"
and conflict resolution s#ills. +isadvantage % 6articipants may resort to their old habits after the training.
0. #ro&r%!!e6 In"tr*(tion": 6rovided in the form of bloc#s either in boo# or a teaching machine
using questions and Reedbac#s ithout the intervention of trainer. 7dvantages % !elf paced" trainees can
progress at their on speed" strong motivation for repeat learning" material is structured and self,contained.
+isadvantages % !cope for learning is less; cost of boo#s" manuals or machinery is e1pensive.
2. Co!$*ter Ai6e6 In"tr*(tion": (t is e1tension of 6( method" by using computers. 7dvantages %
6rovides accountabilities" modifiable to technological innovations" fle1ible to time. +isadvantages % High
cost.
>5 9%+or%tor) Tr%inin&
,%rrier" to Effe(ti0e Tr%inin&:
-. <ac# of Management commitment
.. (nadequate $raining budget
/. 9ducation degrees lac# s#ills
0. <arge scale poaching of trained staff
2. Zon,coordination from or#ers due to donsizing trends
3. 9mployers and Q !chools operating distantly
4. Snions influence
Ho3 To M%4e Tr%inin& Effe(ti0e@
-. Management ?ommitment
.. $raining > Qusiness !trategies (ntegration
/. ?omprehensive and !ystematic 7pproach
0. ?ontinuous and &ngoing approach
2. 6romoting <earning as Rundamental ^alue
3. ?reations of effective training evaluation system
INDUCTION ' ORIENATION
Definition 1: .lanned Introduction
(t is a 6lanned (ntroduction of employees to their jobs" their co,or#ers and the organization per se.
Orient%tion (on0e)" B t)$e" of infor!%tion:
-. +aily @or# Routine
.. &rganization 6rofile
40
/. (mportance of =obs to the organization
0. +etailed &rientation 6resentations
#*r$o"e of Orient%tion
-. $o ma#e ne employees feel at home in ne environment
.. $o remove their an1iety about ne or#place
/. $o remove their inadequacies about ne peers
0. $o remove orries about their job performance
2. $o provide them job information" environment
T)$e" of Orient%tion #ro&r%!"
-. Rormal or (nformal
.. (ndividual or Troup
/. !erial or +isjunctive
#rereC*i"ite" of Effe(ti0e Orient%tion #ro&r%!
-. 6repare for receiving ne employee
.. +etermine information ne employee ants to #no
/. +etermine ho to present information
0. ?ompletion of 6aperor#
#ro+e!" of Orient%tion"
-. Qusy or Sntrained supervisor
.. $oo much information
/. &verloaded ith paperor#
0. Tiven menial tas#s and discourage interests
2. +emanding tas#s here failure chances are high
3. 9mployee thron into action soon
4. @rong perceptions of employees
;8%t i" t8e 6ifferen(e +et3een in6*(tion %n6 orient%tion@
(nduction referred to formal training programs that an employee had to complete before they could start
or#
&rientation as the informal information giving that made the recruit aare of the comfort issues , here
the facilities are" hat time lunch is and so forth.
Ho3 on& "8o*6 t8e in6*(tion $ro(e"" t%4e@
(t starts hen the job ad is ritten" continues through the selection process and is not complete until the ne
team member is comfortable as a full contributor to the organizationXs goals.
$he first hour on day one is a critical component , signing on" issuing #eys and passords" e1plaining no go
zones" emergency procedures" meeting the people that you ill interact ith all have to be done
immediately. Sntil they are done the necomer is on the payroll" but is not employed.
7fter that it is a matter of just in time training , e1panding the content as ne duties are underta#en.
;e on) e!$o) ne3 $eo$e one %t % ti!e - 8o3 (%n 3e in6*(t t8e!@
$here are some issues" hich cannot ait , they vary according to your situation. 6erhaps a buddy system on
the job may be the best ay to deal ith these. &ther subjects may be incorporated ith refresher training
for current staff" or handled as participant in an outside program. 6erhaps some can ait until there are
groups of people ho have started in the last fe months.
41
$his may ta#e some creative thin#ing" but the anser is quite simple , until the ne people are integrated
then they are less useful. $he math is often amazingly simple , not ta#ing the time to train consumes more
time than the training ould.
;8%t e0e" of "t%ff nee6 in6*(tion@
9verybody. $he ?9& needs to #no different things to the temporary concierge" but everyone needs a
planned program of induction and orientation.
#9ACEMENT
6lacement is allocation of people to jobs. (t is assignment or reassignment of an employee to a ne or
different job.
MU9TI S?I99ING
Multi !#illing is $he (ntegrated !#ills 6rogram that has been developed to build on the e1isting s#ills of the
current or# force to reduce redundancies and avoid donsizing situations. $he objective of this program is
to gain total integration of s#ills.
$he program is based around ]on,the,job' > ]off,the,job' competence. $hat is the ability to do the job on the
shop floor )training to gain or# e1perience* and ]off,the,job' )training in the classroom* to gain
underpinning #noledge.
$he program requires the individual to demonstrate competence in a number of different s#ills and this
competence is measured and assessed on the job.
Multi,s#illing of course or#s best ith more advanced s#illed or#ers because their individual s#ills levels
are developed enough here they can fluidly transition from one s#ill to the ne1t ithout degradation of a
s#ills performance. (f you are multi,s#illing and a great percentage of your or#ers are having problems
e1ecuting one of the s#ills effectively it is probably a good signal you need to go bac# to basics ith that
s#ill and pull it out of the multi,s#illing sequences. 7nother advantage of multi,s#illing is the positive effect
of hat is called _conte1tual learning_. ?onte1tual learning involves discovery and improvement from to
s#ills" hich donXt" on the surface" appear to have a direct relationship.
$he disadvantages of multi,s#illing include the obvious danger of moving on to quic#ly toard advanced
s#ills and combinations ithout sufficiently drilling basic s#ills. @hile there is a great desire to learn
quic#ly ( thin# this is one of the reason e are seeing better s#illed from some of the best or#ers. $he
consequence is that e become _partially s#illed_. $he greater the number of partial s#ills e develop" the
less chance e ever have of reaching our full potential.
CHANGE MANAGEMENT
C8%n&e 0i"-I-0i"
Recruitment
6erformance 7ppraisals
Me%nin& of C8%n&e:
7lterations in %6eople" !tructure and $echnology
E=tern% For(e" of C8%n&e:
Mar#etplace
42
<abor mar#ets
9conomic ?hanges
$echnology
<as and Regulations
Intern% For(e" of C8%n&e
?orporate !trategies
@or#place
$echnology and 9quipments
9mployee 7ttitudes
C8%n&e A&ent": (;8o (%n +rin& %+o*t (8%n&e@)
Managers
91ternal ?onsultants
!taff !pecialists
#ro(e"" of C8%n&e (9e3in" "te$")
Snfreezing
?hanging
Refreezing
;8ite 3%ter r%$i6" !et%$8or
<ac# of !tability
<ac# of 6redictability
^irtual ?haos
?onstant ?hange
Re"i"t%n(e to C8%n&e
Sncertainty and 7mbiguity
6ersonal <oss ?oncerns
+isbelief in ?hange benefits
Te(8niC*e" of Re6*(in& Re"i"t%n(e to C8%n&e
9ducation and ?ommunication
Zegotiation
Manipulation and ?o,optation
6articipation
Racilitation
?oercion
C8%n&e M%n%&e!ent
!tructural ?hanges $echnological ?hanges 6eople ?hanges
7uthority
?oordination
?entralization
6rocesses
Methods
9quipments
7ttitudes
91pectations
Qehaviors
Or&%ni1%tion% De0eo$!ent Te(8niC*e"
!urvey Reedbac#
!ensitivity $raining
6rocess ?onsultation
$eam Quilding
(nter,group +evelopment
Con6ition" F%(iit%tin& C8%n&e
+ramatic ?risis
43
<eadership ?hange
@ea# ?ulture
aoung and !mall &rganization )ageing*
T8e Ro%6 to C8%n&e in C*t*re
7nalyze the culture
Zeed for change
Ze leadership
Reorganize
Restructure
Ze stories and rituals
?hange the job systems
TFM .2"5 Reen&ineerin&
$[M )$otal [uality Management* Re engineering
?ontinuous ?hange
Ri1ing and (mproving
Mostly focused on ]7s,(s'
!ystems indispensable
Qottom to $op
Radical and &ne time ?hange
Redesigning
Mostly focused on ]hat can beU'
$op to Qottom
M%n%&in& Do3n"i1e6 ;or4for(e
&pen and honest communication
7ssistance to them
Help for survivors of the donsized
Stre"" in ;or4$%(e
&pportunities stress
+emands stress
?onstraints stress
Ho3 to re6*(e 3or4$%(e "tre""
9mployee selection
&rganizational communication
6erformance 6lanning
=ob redesign especially hen processes change" jobs merged" and relocation happens
9mployee counseling
$ime management programs
;8%t i" (re%ti0it)@
?ombining ne ideas in unique ays or associating ideas in unusual ays
;8%t i" inno0%tion@
$urning creative ideas into useful products" services or methods of operations
3 Set" of 0%ri%+e "i!*%te inno0%tion
!tructural ?hanges
?ultural ?hanges
Human Resources ?hanges
C8%n&e Define6
44
_?hange is the indo through hich the future enters your life._ (tXs all around you" in many types and
shapes. aou can bring it about yourself or it can come in ays
;8) C8%n&e M%n%&e!ent@
aou can bring the change about yourself or it can come in ays that give you little choice about its hat"
hen" and ho. Righting against change can slo it don or divert it" but it onXt stop it hoever. (f you
ish to succeed in this rapidly changing ne orld _you must learn to loo# on change as a friend , one ho
presents you ith an opportunity for groth and improvement._
:
$he rate of change in todayXs orld is constantly increasing. 9verything that e1ists is getting old" earing
out and should be replaced. _Revolutionary technologies" consolidation" ell,funded ne competition"
unpredictable customers" and a quic#ening in the pace of change hurled unfamiliar conditions at
management._
4
$rue success and long,term prosperity in the ne orld depends on your ability to adapt to different and
constantly changing conditions. $he strategic selection of the best strategic positioning in the playing field"
or the Qusiness !pace" your firm must ta#e is complicated by the fact that the characteristics of the Qusiness
!pace change over time. $oday" the orld is a different place than it as yesterday. _7t certain points" the
difference becomes material. !uccessful firms recognize change. ^ery successful ones anticipate it._
5
E0o*tion%r) (#%nne6) C8%n&e 0er"*" Re0o*tion%r) A(tion
Ho you change a business unit to adapt to shifting economy and mar#ets is a matter of management style.
9volutionary change" that involves setting direction" allocating responsibilities" and establishing reasonable
timelines for achieving objectives" is relatively painless. Hoever" it is rarely fast enough or comprehensive
enough to move ahead of the curve in an evolving orld here sta#es are high" and the response time is
short. @hen faced ith mar#et,driven urgency" abrupt and sometimes disruptive change" such as dramatic
donsizing or reengineering" may be required to #eep the company competitive. (n situations hen timing is
critical to success" and companies must get more efficient and productive rapidly" revolutionary change is
demanded.
@hen choosing beteen evolutionary change and revolutionary action" a leader must pursue a balanced and
pragmatic approach. !inging too far to revolutionary e1treme may create _an organizational culture that is
so impatient" and so focused on change" that it fails to give ne initiatives and ne personnel time to ta#e
root" stabilize" and gro. @hatXs more" it creates a high,tension environment that intimidates rather than
nurtures people" leaving them ith little or no emotional investment in the company._
0
Re"i"t%n(e to C8%n&e
Most people donXt li#e change because they donXt li#e being changed. _(f you ant to ma#e enemies" try to
change something_" advised @oodro @ilson. @hen see#ing to change an organization" itXs strategy or
processes" leaders run into ZetonXs la that a body at rest tends to stay at rest. 7dvocates for change are
greeted ith suspicion" anger" resistance" and even sabotage.
0
_Zot invented here_ syndrome also #eeps
many sound ideas from gaining the objective assessment they deserve...More
To6%)J" ;or6 Re%itie"
$he magnitude of todayXs environmental" competitive" and global mar#et change is unprecedented. (tXs a very
interesting and e1citing orld" but itXs also volatile and chaotic8
.o%tiit) describes the economyXs rate of change8 e1tremely fast" ith e1plosive upsurges and
sudden donturns.
C8%o" describes the direction of the economyXs changes8 eXre not sure e1actly here eXre headed"
but e are singing beteen the various alternatives at a very high speed.
3

$o cope ith an unpredictable orld you must build an enormous amount of fle1ibility into your
organization. @hile you cannot predict the future" you can get a handle on trends" hich is a ay to ta#e
advantage of change and convert ris#s into opportunities.
Cre%tin& C8%n&e for I!$ro0e!ent %n6 Co!$etiti0e A60%nt%&e
45
?hange creates opportunities" but only for those ho recognize and seize it. _!eeing is the first step" seizing
the second" and continuously innovating is the third._
2
(nnovation redefines groth opportunities. 7s current
products are becoming obsolete faster than ever" in order to survive and prosper" organizations continually
need to improve" innovate and modify their products and services. $he !ilicon ^alley slogan _9at lunch and
you are lunch_ is more than a reflection of increasingly intense or# ethic. Riding the ave of change is
becoming the most important part of the business. @hile the economy is shifting and innovation is rampant"
_doing it the same ay_ is a recipe for corporate e1tinction.
-
!uccessful change efforts are those here the choices both are internally consistent and fit #ey e1ternal and
situational variables. _aou have to find subtle ays to introduce change" ne concepts" and give feedbac# to
people so that they can accept and gro ith it._
0
Anti(i$%tin& C8%n&e
$here is big difference beteen anticipating and guessing. 7nticipation means e1pecting" being aare of
something in advance" to regard it as possible. $he ability to anticipate is one of the #ey ingredients of
efficient speed and change management. _Qeing able to anticipate that hich is li#ely to occur in the ne1t
fe months and the ne1t fe years is enough to give you an edge over ::V of the population ho simply go
along ith hatever happens._
4
Ho can you see the futureU 7ctually" anticipation is natural , everyone does it every day. Snfortunately"
most people limit e1ercising their anticipatory s#ills to daily routine matters. 7ll you really need to start
applying these s#ills for your business is a small head start...More
St%rtin& 3it8 <o*r"ef
$he best place to start change is ith yourself. (f hatever you do doesnXt or#" you must be fle1ible , you
must change your action plan if the current one does not produce the required results. (f you ant other
people to change" you must be prepared to ma#e the first step yourself. (f you cannot change your
environment" you should change your attitude. $o achieve effective personal change" consider practicing the
Z<6 $echnology of 7chievement that as specially developed to discover ho people can e1cel" and most
particularly hen managing change , ho to create the Xdifference that ma#es the differenceX...More
9e%6in& C8%n&e
$he old ays of management no longer or# and ill never or# again. !uccessful change requires
leadership. @hen change fails to occur as planned" the cause if often to be found at a deeper level" rooted in
the inappropriate behavior" beliefs" attitudes" and assumptions of ould,be leaders.
3
<eadership is all about
the process of change8 ho to stay ahead of it" master it" benefit from the opportunities it brings. $he best
leaders stri#e first by ta#ing the offensive against economic cycles" mar#et trends" and competitors. $hey
discover the most effective ays for achieving significant change , _a change that identifies the realities of
the business environment and reorders them so that a ne force is able to leverage" rather than resist" those
realities in order to achieve a competitive advantage._
0
$he folloing system ill help you to unleash the poer of your organization and reshape it into a more
competitive enterprise8
+evelop a vision. $o create a seamless bridge from the vision to action" start ith your top
management team , they should understand and embrace your vision.
7lign all your people against the endgame. (nvite their opinion regarding critical issues such as the
direction you should be headed" the changes you have to ma#e" and the resources you have to acquire.
Ssing the employee feedbac#" develop a strategic plan. !tay laser,focused on the methods that ill
drive your business unit toards its stated objectives.
Quild a diverse leadership group representing all the #ey constituencies of your organization. $hey
ill share responsibility for plan management.
!hare detail information about the company and the change progress , people have to understand
here you are and here you are going in order to contribute effectively to your mission.
M%n%&in& Or&%ni1%tion% C8%n&e
!uccess in business doesnXt come from feeling comfortable. (n todayXs technology,driven orld" business life
46
cycles have accelerated e1ponentially. $he challenge is to #eep a step ahead of changing mar#et conditions"
ne technologies and human resources issues.
$he heel of business evolution is a frameor# and set of tools" hich enables you to manage the comple1
process of organizational change and transformation more effectively. $he sequence of the eight segments
, business environment" business ecosystem" business design" leadership style" organizational values"
management process" #noledge management systems" and performance measures , reflects the learning
cycle that occurs hen outside,in or bottom,up learning ta#es place.
,e8%0ior% C8%n&e
$he challenge and the shape of an organizationXs behavioral change program depend on the corporate culture
and the targeted behaviors that need to be changed. aour change program needs to be e1plicitly built around
these challenges. _^ery often" these programs involve the creation of incentives hich elegantly reinforce
the desired behavior )and therein reinforce the change loop in the learning dynamic*._
5
...
Moti0%tin& E!$o)ee" to E!+r%(e C8%n&e
aou have a choice of instruments to motivate your people to embrace change. 6erformance,incentive levers
are especially useful in driving those ho lac# direction or initiative. aou may also encourage employee
feedbac# on here and ho the company can ta#e corrective action and reard employees for their
contribution. (n any case" _once you open the gates and encourage employees to serve as agents of change"
you must demonstrate that their input ill have a real,orld impact on the ay your company does
business._
0
&n the other side" you have to be rather aggressive hen dealing ith people ho vie change as a threat
and create roadbloc#s that stall progress. 7nyone ho thin#s that itXs harmless to ma#e e1ceptions for a fe
people and shift resources to accommodate poor performers is missing an important point. _(tXs not a fe
people ho are at sta#e" itXs the corporate culture_" says Miles Treer" of !avannah 9lectric. _Qy permitting
those ho resist or retaliate against change to remain in the company" you broadcast a message that suggests
supporting the companyXs mission statement is optional. 9ven orse" you permit the least,committed
employees to taint and influence the attitude and performance of their peers._
Mo0in& 3it8 S$ee6
(n the ne economy here everything is moving faster and itXs only going to get faster" the ne mantra is"
_+o it more ith less and do it faster._
-
$o be able to move ith speed" companies need to establish a
change,friendly environment and develop four major competencies8 fast thin#ing" fast decision ma#ing" fast
acting" and sustaining speed.
M%4in& F*i(4 De(i"ion" t8ro*&8 E"t%+i"8in& G*i6in& #rin(i$e"
Rast companies that have demonstrated the ability to sustain surge and velocity all have established sets of
guiding principles to help them ma#e quic# decisions. 7bandoning theoretical and politically correct XvaluesX
and bureaucratic procedures in favor of a practical" don,to,earth list of guiding principles ill help your
company ma#e the decision,ma#ing process much faster. &nly one question ill need to be as#ed of any
proposed course of action8 +oes it fit our guiding principlesU
47
#ERFORMANCE A##RAISA9S
Definition 1: #ysteatic /valuation
(t is a systematic evaluation of an individual ith respect to performance on the job and individual's
potential for development.
Definition 2: 8oral #yste" &easons and -easures of future perforance
(t is formal" structured system of measuring" evaluating job related behaviors and outcomes to discover
reasons of performance and ho to perform effectively in future so that employee" organization and society
all benefits.
Me%nin& of #erfor!%n(e A$$r%i"%"
6erformance 7ppraisals is the assessment of individual's performance in a systematic ay. (t is a
developmental tool used for all round development of the employee and the organization. $he performance
is measured against such factors as job #noledge" quality and quantity of output" initiative" leadership
abilities" supervision" dependability" co,operation" judgment" versatility and health. 7ssessment should be
confined to past as ell as potential performance also. $he second definition is more focused on behaviors
as a part of assessment because behaviors do affect job results.
#erfor!%n(e A$$r%i"%" %n6 -o+ An%)"i" Re%tion"8i$
=ob 7nalysis 6erformance !tandards
6erformance 7ppraisals
+escribe the or# and
personnel requirement of a
particular job.
$ranslate job requirements
into levels of acceptable or
unacceptable performance
+escribe the job relevant
strengths and ea#nesses of
each individual.
48
O+/e(ti0e" of #erfor!%n(e A$$r%i"%"
U"e of #erfor!%n(e A$$r%i"%"
-. 6romotions
.. ?onfirmations
/. $raining and +evelopment
0. ?ompensation revies
2. ?ompetency building
3. (mprove communication
4. 9valuation of HR 6rograms
5. Reedbac# > Trievances
B Go%" of #erfor!%n(e A$$r%i"%"
Teneral Toals !pecific Toals
+evelopmental Sse (ndividual needs
6erformance feedbac#
$ransfers and 6lacements
!trengths and +evelopment needs
7dministrative +ecisions Y Sses !alary
6romotion
Retention Y $ermination
Recognition
<ay offs
6oor 6erformers identification
&rganizational Maintenance HR 6lanning
$raining Zeeds
&rganizational Toal achievements
Toal (dentification
HR !ystems 9valuation
Reinforcement of organizational needs
+ocumentation ^alidation Research
Ror HR +ecisions
<egal Requirements
#erfor!%n(e A$$r%i"% #ro(e""
-. &bjectives definition of appraisal
.. =ob e1pectations establishment
/. +esign an appraisal program
0. 7ppraise the performance
2. 6erformance (ntervies
3. Sse data for appropriate purposes
4. (dentify opportunities variables
5. Ssing social processes" physical processes" human and computer assistance
Differen(e +et3een Tr%6ition% %n6 Mo6ern (S)"te!") %$$ro%(8 to A$$r%i"%"
'ategories )raditional Appraisals -odern" #ystes
Appraisals
Tuiding ^alues (ndividualistic" ?ontrol
oriented" +ocumentary
!ystematic" +evelopmental"
6roblem solving
<eadership !tyles +irectional" 9valuative Racilitative" ?oaching
Rrequency &ccasional Rrequent
Rormalities High <o
49
Reards (ndividualistic Trouped" &rganizational
TECHNIFUES 2 METHODS OF #ERFORMANCE A##RAISA9S
Zumerous methods have been devised to measure the quantity and quality of performance appraisals. 9ach
of the methods is effective for some purposes for some organizations only. Zone should be dismissed or
accepted as appropriate e1cept as they relate to the particular needs of the organization or an employee.
Qroadly all methods of appraisals can be divided into to different categories.
6ast &riented Methods
Ruture &riented Methods
#%"t Oriente6 Met8o6"
-. R%tin& S(%e": Rating scales consists of several numerical scales representing job related performance
criterions such as dependability" initiative" output" attendance" attitude etc. 9ach scales ranges from e1cellent
to poor. $he total numerical scores are computed and final conclusions are derived. 7dvantages %
7daptability" easy to use" lo cost" every type of job can be evaluated" large number of employees covered"
no formal training required. +isadvantages % Rater's biases
.. C8e(4i"t: Snder this method" chec#list of statements of traits of employee in the form of aes or Zo
based questions is prepared. Here the rater only does the reporting or chec#ing and HR department does the
actual evaluation. 7dvantages % economy" ease of administration" limited training required" standardization.
+isadvantages % Raters biases" use of improper eighs by HR" does not allo rater to give relative ratings
/. For(e6 C8oi(e Met8o6: $he series of statements arranged in the bloc#s of to or more are given and
the rater indicates hich statement is true or false. $he rater is forced to ma#e a choice. HR department does
actual assessment. 7dvantages % 7bsence of personal biases because of forced choice. +isadvantages %
!tatements may be rongly framed.
0. For(e6 Di"tri+*tion Met8o6: here employees are clustered around a high point on a rating scale. Rater
is compelled to distribute the employees on all points on the scale. (t is assumed that the performance is
conformed to normal distribution. 7dvantages % 9liminates +isadvantages % 7ssumption of normal
distribution" unrealistic" errors of central tendency.
2. Criti(% In(i6ent" Met8o6: $he approach is focused on certain critical behaviors of employee that
ma#es all the difference in the performance. !upervisors as and hen they occur record such incidents.
7dvantages % 9valuations are based on actual job behaviors" ratings are supported by descriptions" feedbac#
is easy" reduces recency biases" chances of subordinate improvement are high. +isadvantages % Zegative
incidents can be prioritized" forgetting incidents" overly close supervision; feedbac# may be too much and
may appear to be punishment.
3. ,e8%0ior%) An(8ore6 R%tin& S(%e": statements of effective and ineffective behaviors determine the
points. $hey are said to be behaviorally anchored. $he rater is supposed to say" hich behavior describes the
employee performance. 7dvantages % helps overcome rating errors. +isadvantages % !uffers from
distortions inherent in most rating techniques.
4. Fie6 Re0ie3 Met8o6: $his is an appraisal done by someone outside employees' on department
usually from corporate or HR department. 7dvantages % Sseful for managerial level promotions" hen
comparable information is needed" +isadvantages % &utsider is generally not familiar ith employees or#
environment" &bservation of actual behaviors not possible.
50
5. #erfor!%n(e Te"t" ' O+"er0%tion": $his is based on the test of #noledge or s#ills. $he tests may be
ritten or an actual presentation of s#ills. $ests must be reliable and validated to be useful. 7dvantage %
$ests may be apt to measure potential more than actual performance. +isadvantages % $ests may suffer if
costs of test development or administration are high.
:. Confi6enti% Re(or6": Mostly used by government departments" hoever its application in industry is
not ruled out. Here the report is given in the form of 7nnual ?onfidentiality Report )7?R* and may record
ratings ith respect to folloing items; attendance" self e1pression" team or#" leadership" initiative"
technical ability" reasoning ability" originality and resourcefulness etc. $he system is highly secretive and
confidential. Reedbac# to the assessee is given only in case of an adverse entry. +isadvantage is that it is
highly subjective and ratings can be manipulated because the evaluations are lin#ed to HR actions li#e
promotions etc.
-;. E""%) Met8o6: (n this method the rater rites don the employee description in detail ithin a number
of broad categories li#e" overall impression of performance" promoteability of employee" e1isting
capabilities and qualifications of performing jobs" strengths and ea#nesses and training needs of the
employee. 7dvantage % (t is e1tremely useful in filing information gaps about the employees that often
occur in a better,structured chec#list. +isadvantages % (t its highly dependent upon the riting s#ills of rater
and most of them are not good riters. $hey may get confused success depends on the memory poer of
raters.

--. Co"t A((o*ntin& Met8o6: Here performance is evaluated from the monetary returns yields to his or her
organization. ?ost to #eep employee" and benefit the organization derives is ascertained. Hence it is more
dependent upon cost and benefit analysis.
-.. Co!$%r%ti0e E0%*%tion Met8o6 (R%n4in& ' #%ire6 Co!$%ri"on"): $hese are collection of
different methods that compare performance ith that of other co,or#ers. $he usual techniques used may
be ran#ing methods and paired comparison method.
$ankin' %ethods: !uperior ran#s his or#er based on merit" from best to orst. Hoever ho
best and hy best are not elaborated in this method. (t is easy to administer and e1planation.
,aired Comparison %ethods: (n this method each employee is rated ith another employee in
the form of pairs. $he number of comparisons may be calculated ith the help of a formula as under.
Z 1 )Z,-* Y .
F*t*re Oriente6 Met8o6"
-. M%n%&e!ent ,) O+/e(ti0e": (t means management by objectives and the performance is rated against
the achievement of objectives stated by the management. MQ& process goes as under.
9stablish goals and desired outcomes for each subordinate
!etting performance standards
?omparison of actual goals ith goals attained by the employee
9stablish ne goals and ne strategies for goals not achieved in previous year.
7dvantage % (t is more useful for managerial positions.
+isadvantages % Zot applicable to all jobs" allocation of merit pay may result in setting short,term goals
rather than important and long,term goals etc.
.. #")(8oo&i(% A$$r%i"%": $hese appraisals are more directed to assess employees potential for future
performance rather than the past one. (t is done in the form of in,depth intervies" psychological tests" and
discussion ith supervisors and revie of other evaluations. (t is more focused on employees emotional"
intellectual" and motivational and other personal characteristics affecting his performance. $his approach is
slo and costly and may be useful for bright young members ho may have considerable potential.
Hoever quality of these appraisals largely depend upon the s#ills of psychologists ho perform the
51
evaluation.

/. A""e""!ent Center": $his technique as first developed in S!7 and Sb in -:0/. 7n assessment center
is a central location here managers may come together to have their participation in job related e1ercises
evaluated by trained observers. (t is more focused on observation of behaviors across a series of select
e1ercises or or# samples. 7ssessees are requested to participate in in,bas#et e1ercises" or# groups"
computer simulations" role playing and other similar activities hich require same attributes for successful
performance in actual job. $he characteristics assessed in assessment center can be assertiveness" persuasive
ability" communicating ability" planning and organizational ability" self confidence" resistance to stress"
energy level" decision ma#ing" sensitivity to feelings" administrative ability" creativity and mental alertness
etc. +isadvantages % ?osts of employees traveling and lodging" psychologists" ratings strongly influenced by
assessee's inter,personal s#ills. !olid performers may feel suffocated in simulated situations. $hose ho are
not selected for this also may get affected.
A60%nt%&e" % ell,conducted assessment center can achieve better forecasts of future performance and
progress than other methods of appraisals. 7lso reliability" content validity and predictive ability are said to
be high in assessment centers. $he tests also ma#e sure that the rong people are not hired or promoted.
Rinally it clearly defines the criteria for selection and promotion.
0. 3>K-De&ree Fee6+%(4: (t is a technique hich is systematic collection of performance data on an
individual group" derived from a number of sta#eholders li#e immediate supervisors" team members"
customers" peers and self. (n fact anyone ho has useful information on ho an employee does a job may be
one of the appraisers. $his technique is highly useful in terms of broader perspective" greater self,
development and multi,source feedbac# is useful. /3;,degree appraisals are useful to measure inter,personal
s#ills" customer satisfaction and team building s#ills. Hoever on the negative side" receiving feedbac# from
multiple sources can be intimidating" threatening etc. Multiple raters may be less adept at providing
balanced and objective feedbac#.
Et8i(" of #erfor!%n(e A$$r%i"%" 2 9e&%) 6efen"i+e #erfor!%n(e A$$r%i"%"
Et8i(" of #ro(e6*re"
-. Rormal !tandardized 6erformance 7ppraisal !ystems
.. Sniform to all employees" no illegal differentiations based on cast" religion etc.
/. !tandards formally communicated to all employees
0. Rreedom to revie performance appraisal results
2. Rormal appeal process about ratings and judgments
3. @ritten instructions and training to raters
4. 7ll personal decision ma#ers should be aare of anti,discrimination las.
Et8i(" of Content"
-. ?ontent based on job analysis
.. $raits based appraisals should be avoided
/. &bjectively verifiable data should be used
0. ?onstraints on performance beyond control should be prevented
2. !pecific job related dimensions to be used rather than single or global dimensions.
3. +imensions must be assigned eight to reflect relative importance in performance score
Et8i(" of Do(*!ent%tion of Re"*t"
-. 7 thoroughly ritten record of evidence leading to termination should be maintained
.. @ritten documentation of e1treme ratings should be maintained
/. +ocumentation should be consistent among the raters.
52
Et8i(" of R%ter"
-. $he raters should be trained in ho to use an appraisal system
.. $he rater must have opportunity to observe ratees first hand and revie important ratee performance
products.
/. Sse of more than one rater is desirable to reduce biases.
Or&%ni1%tion% S*$$ort F%(tor" for #erfor!%n(e A$$r%i"% S)"te!"
6erformance appraisal serves many organizational objectives and goals. Qesides encouraging high level of
performance" the evaluation system is useful in identifying employees ith potential" rearding them
equitably" and determining employee needs for development. 7ll these activities are instrumental in
achieving corporate plans and long,term groth" typical appraisal system in most organizations have been
focused on short,term goals only.
Rrom the strategic management point of vies" organizations can be grouped under / different categories as
defenders" prospectors and analyzers.
Defen6er": $hey have narro and stable product mar#et domain. $hey don't need to ma#e any adjustment
in technology" structure or methods of operations etc. $hey devote entire attention on improving e1isting
operations. Qecause of emphasis on s#ill building successful defenders use appraisals as means for
identifying training needs. (t is more behavior oriented.
#ro"$e(tor": $hey continuously search for ne products and opportunities. $hey e1periment regularly to
ne and emerging trends. $hey more focus on s#ills identification and acquisition of human resources from
e1ternal sources prospectors often use appraisals for identifying staffing needs. $he focus is on results.
An%)1er": $hey operate in to type of product domain mar#ets. &ne is stable and other is changing. $hey
atch their competitors closely and rapidly adopt the ideas that are promising. $hey use cost effective
technologies for stable products and matri1 technologies for ne products. 7nalyzers tend to emphasize on
s#ills building and s#ills acquisitions and employ e1tensive training programs. Hence they use appraisal
more for training and staffing purposes.
Hoever performance appraisal systems has strategic importance in three different ays.
Fee6+%(4 Me(8%ni"!: 6erformance evaluation is the central mechanism that not only provides feedbac# to
individuals but also aids in the assessment of the progress of organization as a hole. @ithout appraisals
managers of any firm can only guess as to hether or not employees are or#ing toards realization of the
organization goals.
Con"i"ten() +et3een "tr%te&) %n6 /o+ +e8%0ior: 6erformance appraisal not only is a means of #noing if
the employee behavior is consistent ith the overall strategies focus but also a ay of bringing to the fore
any negative consequence of the strategy % behavior fit. $hus the performance appraisal system is an
important mechanism to elicit feedbac# on the consistency of the strategy % behavior lin#.
Con"i"ten() +et3een .%*e" %n6 -o+ ,e8%0ior in4: 6erformance evaluation is a mechanism to reinforce
values and culture of the organization. 7nother importance is to align appraisal ith organizational culture.
$hus the purpose of performance evaluation is to ma#e sure that employee's goals" employees behavior and
feedbac# of information about performance are all lin#ed to the corporate strategy.
E""enti%" of % Goo6 #erfor!%n(e A$$r%i"% S)"te!:
-. !tandardized 6erformance 7ppraisal !ystem
.. Sniformity of appraisals
/. +efined performance standards
0. $rained Raters
2. Sse of relevant rating tools or methods
3. !hould be based on job analysis
53
4. Sse of objectively verifiable data
5. 7void rating problems li#e halo effect" central tendency" leniency" severity etc.
:. ?onsistent +ocumentations maintained
-;. Zo room for discrimination based on cast" creed" race" religion" region etc.
#ro+e!" of R%tin&:
-. <eniency > !everity
.. ?entral $endency
/. Halo 9rror
0. Rater 9ffect
2. 6rimacy > Recency 9ffect
3. 6erceptual !ets
4. 6erformance +imensions &rder
5. !pillover 9ffects
:. !tatus 9ffect
INCENTI.ES ,ASED COM#ENSATION
(ncentives are monetary benefits paid to or#men in recognition of their outstanding performance. $hey are
defined as variable reards granted according to variations in the achievement of specific results.
A60%nt%&e" of In(enti0e +%"e6 (o!$en"%tion"
-. (ncentives are important for inducement and motivation of or#ers for higher efficiency and greater
output.
.. 9mployee earnings go up
/. 9nhanced standard of livings of employees
0. Reduction in total unit cost of production"
2. 6roductivity increases.
3. 6roduction capacity is also li#ely to increase
4. Reduced supervision
Di"%60%nt%&e" of In(enti0e +%"e6 (o!$en"%tion
-. $endency of quality of products deteriorated due to increased output and lo cost
.. 9mployees may oppose introduction of ne machines
/. @or#ers demand for minimum age limit may go up due to high incentive earnings
0. !ometimes employees may disregard security regulations due to payment by results approach
adopted for higher incentive figures
2. &veror#ing may affect employee health
3. 9mployee jealousies ith respect to high and lo performers
54
HUMAN RESOURCE AUDIT
N%t*re of HR A*6it
HR 7udit is a tool for evaluating the personnel activities of an organization. $he audit may include one
division or entire company. (t gives feedbac# about HR functions to operating managers and HR specialists.
(t also shos ho ell managers are meeting HR duties.
(n short HR audit is an overall control chec# on HR activities in a division or a company and evaluation of
ho these activities support organization's strategy.
,%"i" of HR A*6it
(#er"onne Re"e%r(8)
-. @age !urveys
.. Recruitment !ources effectiveness
/. $raining efforts effectiveness
0. !upervisor's effectiveness
2. (ndustrial settlements
3. =ob 7nalysis
4. =ob !atisfaction !urvey
5. 9mployee needs survey
:. 7ttitude !urveys
-;. High accident frequency surveys
,enefit" of HR A*6it
-. (dentification of contributions of HR department
.. (mprovement of professional image of HR department
/. 9ncouragement of greater responsibility and professionalism among HR members
0. ?larification of HR duties and responsibilities
2. !timulation of uniformity of HR policies and practices
3. Rinding critical personnel problems
4. 9nsuring timely compliance ith legal requirements
5. Reduction of HR costs through more effective personnel procedures
:. ?reation of increased acceptance of changes in HR department
-;. 7 thorough revie of HR information systems
S(o$e %n6 T)$e" of HR A*6it
55
HR 7udit must cover the activities of the department and e1tend beyond because the people problems are
not confined to HR department alone. Qased on this HR audit can be spread across folloing four different
categories.
Human Resource Runction 7udit
Managerial ?ompliance 7udit
Human Resource ?limate 7udit
9mployee $urnover
7bsenteeism
7ccidents
7ttitude !urveys
HR , ?orporate !trategy 7udit
A$$ro%(8e" to HR A*6it
-. ?omparative 7pproach )Qenchmar#ing ith another company*
.. &utside 7uthority 7pproach )&utside consultants' standards*
/. !tatistical 7pproach )!tatistical measures and tools*
0. ?ompliance 7pproach )<egal and company policies*
2. Management Qy &bjectives 7pproach )Toals > &bjectives based*
56
MOTI.ATION THEORIES
6erformance is a function of ability and motivation. 6 ` f )7 1 M*
Definition 1: 'hoices aong voluntary activities
7 process governing choices made by persons or loer organisms among alternative forms of voluntary
activity
Definition 2: Arouse enthusias to pursue
7 result of internal and e1ternal processes to the individual that arouse enthusiasm and persistence to pursue
a certain course of action
Definition 3: Need that activates behavior
7 process that starts ith a physiological deficiency or need that activates behavior or a drive that is aimed
at a goal or an incentive.
Me%nin& of Moti0%tion
Motivation is a set of forces that cause people to behave in certain ays.
Moti0%tion #ro(e"" (> Ste$")
-. (ndividual Zeeds
.. !earch for ays to satisfy needs
/. Toal > &bjectives directed
0. (ncreased performance
2. Receiving reards or punishment
3. Reassessment of needs
Criti(%it) of Moti0%tion to M%n%&er"
I!$ort%n(e of Moti0%tion
Motivation helps employees find ne ays of doing a job
Motivation ma#es employees quality conscious
Motivation increases productivity very high
Motivation stimulates both participation and production at or#
Motivation comprehends jobs related behaviors
57
Motivation increases attention toards human resources along ith physical resources
C8%en&e" of Moti0%tion
+iverse and changing or#force
Rightsizing" +onsizing" Hire,n,Rire" 6ay,for,6erformance strategies
Motives can only be inferred" not seen
+ynamic nature of human needs
O+/e(ti0e" of Moti0%tion
High productivity
(ncrease quality consciousness
!timulate participation at or#
T8eorie" of Moti0%tion
E%r) T8eorie"
S(ientifi( M%n%&e!ent: Motivation by scientific management is associated ith R.@. $aylor's techniques
of scientific management. $aylor said that people are primarily motivated by economic reards and ill
ta#e direction if offered an opportunity to improve their economic positions. Qased on this $aylor described
folloing arguments
6hysical or# could be scientifically studied to determine optimal method of performance of a job
@or#ers could be more efficient by telling them ho they ere to do a job
@or#ers ould accept the above prescription if paid on differentiated pieceor# basis
+isadvantages % +ehumanized or#ers" treated them as mere factors of production" only stressed on
monetary needs" ignored human needs
H*!%n Re%tion" Mo6e: 9lton Mayo's human relations model stressed on social contacts as motivational
factor. Treater importance as given to informal groups. Hoever too much reliance on social contacts to
improve productivity as a major drabac#.
Conte!$or%r) T8eorie"
Content T8eorie" )Maslo's Zeed Hierarchy" Herzberg's .,factors" 7lderfer's 9RT" 7chievement
Motivation $heory*
#ro(e"" T8eorie" )^room's e1pectancy" 7dam's 9quity" 6orter's 6erformance and !atisfaction Model*
Reinfor(e!ent (%te&orie"
ERG T8eor) (A6erfer): E=i"ten(e Re%te6ne"" Gro3t8
9RT theory emphasizes more on three broad needs that is e1istence" relatedness and groth. (ts hypothesis
is that there may be more than one need operating at the same time. 9RT theory further states that hen a
higher level need is frustrating" the individual's desire to increase loer level needs ta#es place. $hus 9RT
theory contains frustration,regression dimension. Rrustration at higher level need may lead to regression at
loer level need.
A60%nt%&e" % More consistent ith our #noledge of differences among people" it is less restrictive and
limiting" it is a valid version of need hierarchy.
Di"%60%nt%&e" % Zo clear,cut guideline of individual behavior patterns" too early to pass a judgment on the
overall validity of the theory.
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T3o-F%(tor T8eor) (Her1+er&)
Rredric# Herzberg states that the motivation concept is generally driven by to factors of motivators of job
satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement"
recognition" the or# itself" responsibility" advancement and groth" hich are related to job satisfaction.
Hygiene factors deal ith e1ternal factors li#e company policy" supervision" administration and or#ing
conditions" salary" status" security and interpersonal relations. $hese factors are #non as hygiene factors or
job dissatisfiers" job conte1t factors.
A60%nt%&e" % tremendous impact on stimulating thought on motivation at or#" increased understanding of
role of motivation" specific attention to improve motivational levels" job design technique of job enrichment
is contribution of herzberg" double dimensions of to factors are easy to interpret and understand.
Di"%60%nt%&e" % <imited by its methodology" reliability questioned" it focuses more on job satisfaction not
on motivation" no overall measure of satisfaction utilized" inconsistent ith previous research" productivity
factor ignored.
MORA9E
Definition 1: -ental condition" attitude" !illingness
Morale is a mental condition or attitude of individual and groups" hich determines their illingness to co,
operate.
Definition 2: Attitudes" voluntary cooperation
Morale is attitudes of individuals and groups toards their or# environment and toards voluntary
cooperation to the full e1tent of their ability in the best possible interest of the organization.
+istinction beteen Morale and Motivation8 ,
Mor%e Moti0%tion
-. ?omposite of feelings" attitudes and
sentiments that contribute toards general
satisfaction at or#place.
.. 7 Runction of freedom or restraint
toards some goal.
/. (t mobilizes sentiments.
0. Morale reflects Motivation.
-. Motivation moves person to action.
.. 7 6rocess of stimulating individuals
into action to accomplish desired goals.
/. 7 Runction of drives and needs.
0. (t mobilizes energy.
2. Motivation is a potential to develop
morale.
I!$ort%n(e of Mor%e %" % Re"$on"i+iit) of M%n%&e!ent
Or&%ni1%tion Ci!%te: Morale is an important part of organization climate.
Attit*6e" ' Senti!ent": Morale reflects attitudes and sentiments toards organization goals and
objectives.
#ro6*(ti0it): Morale highly affects productivity and satisfaction of individuals.
Tot% S%ti"f%(tion: Morale is total satisfaction derived from employees job" boss and his organization.
9%+or #ro+e!" So0e6: High morale assists managers to overcome several labor problems li#e labor
turnover" absenteeism" indiscipline" grievances" disharmony etc.
Coo$er%tion: Morale helps to see# cooperation from the or#ers in getting higher production at
minimum possible cost by reducing astages of time" man" machines and materials.
#ro6*(tion ' #ro6*(ti0it): 6roduction and productivity are directly affected by high morale in a
positive manner.
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#ERSONNE9 #O9ICIES
Me%nin& of #er"onne #oi()
7 6olicy is a 6lan of 7ction. (t is a statement of intentions committing the management to a general course
of action. 7 6olicy may contain philosophy and principles as ell. Hoever a policy statement is more
specific and commits the management to a definite course of action.
Hence 6ersonnel policy is a plan of action to be implemented by HR department toards the organization
and employees. 7 personnel policy spells out basic needs of the employees. $hrough personnel policy the
personnel department ensure a consistent treatment to all personnel by minimizing favoritism and
discrimination. 6ersonnel policy serves as a standard of performance for all employees. !ound personnel
policies help build employee motivation and loyalty. 7nd this happens hen personnel policies reflect fair
play and justice and help people gro ithin the organization. 6ersonnel policies are also plans of action to
resolve intra,personal" inter,personal and inter,group conflicts.
I!$ort%n(e of #er"onne #oi()
6ersonnel policy is very important for an organization since it gives several benefits for managing your
human resources effectively. (n the light of these benefits listed belo e ould be able to understand the
relative importance of 6ersonnel policy.
,%"i( Nee6": 6ersonnel policy helps the management to thin# deeply about basic needs of organization
and the employees.
Con"i"tent Tre%t!ent: 6ersonnel policies ensure consistent treatment of all personnel throughout the
organization.
Mini!i1e F%0oriti"!: 6ersonnel policies help minimize favoritism and discrimination
Contin*o*" %(tion8 6ersonnel policies ensure continuous action even if top management is changed.
$hese policies promote stability.
St%n6%r6 of #erfor!%n(e: 6ersonnel policies serve as a standard of performance.
Moti0%tion ' 9o)%t): 6ersonnel policies help build employee motivation and loyalty.
F%ir #%) ' -*"ti(e: 6ersonnel policies reflect established principles of fair play and justice.
Gro3t8: 6ersonnel policies help people gro ithin the organization.
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;OR?ERS7 #ARTICI#ATION IN MANAGEMENT
Qroadly" or#er's participation in management means associating representatives of or#ers at every stage
of decision,ma#ing. 6articipative management is considered as a process by hich the or#er's share in
decision,ma#ing e1tends beyond the decisions that are implicit in the specific content of the jobs they do.
$his amounts to the or#ers having a share in the reaching of final managerial decisions in an enterprise.
Definition 1: Association of 4or+ers in decision6a+ing process
@or#ers' participation may be ta#en to cover all terms of association of or#ers and their representatives
ith the decision,ma#ing process" ranging from e1change of information" consultations" decisions and
negotiations to more institutionalized forms such as the presence of the or#ers' members on management
or supervisory boards or even management by or#ers themselves.
S(o$e of 3or4er"7 $%rti(i$%tion
!cope of or#ers participation ranges over three managerial decision,ma#ing stages.
So(i% De(i"ion": Hours of or#" elfare measures" or# rules" safety" health" sanitation and noise control.
#er"onne De(i"ion": Recruitment and selection" promotions and transfers" grievance settlements" or#
distribution
E(ono!i( De(i"ion": Methods of manufacturing" automation" lay offs" shut,dons" mergers and
acquisitions and other financial aspects.
Met8o6" of ;or4er"7 #%rti(i$%tion in M%n%&e!ent
-. Qoard <evel
.. &nership
/. ?omplete ?ontrol
0. !taff ?ouncils
2. =oint ?ouncils
3. ?ollective Qargaining
4. =ob 9nlargement and 9nrichment
5. !uggestion !chemes
:. [uality ?ircles
-;. 9mpoered $eams
--. $otal [uality Management
-.. Rinancial 6articipation
#rereC*i"ite" of S*((e""f* #%rti(i$%tion
-. ?learly defined and complementary &bjectives
61
.. Rree flo of information and communication
/. Representatives of or#ers from or#ers themselves
0. &utside trade union participation should be avoided
2. @or#ers' education and training
3. Zo threat by participation
4. 7ssociation at all levels of decision,ma#ing
,enefit" of #%rti(i$%tion
-. Tives identity to an employee
.. Motivates employee
/. !elf,esteem" job satisfaction and cooperation improves
0. Reduced conflicts and stress
2. More commitment to goals
3. <ess resistance to change
4. <ess labor problems
5. Qetter quality suggestions e1pected
UNIONS
9mployee associations are popularly #non as unions. Hoever these unions are not confined to only
stri#es and negotiations. $heir role is much ider than this. Snions ma#e their presence felt in recruitment
and selection" promotions" training" termination or lay off. Many programs" hich contribute to the [uality
of @or# <ife )[@<* and productivity" are underta#en by management in consultation ith and ith the
cooperation of the unions. Snions also participate in deciding age and salary structure and negotiate
revisions once in / or 2 years.
$rade unions are voluntary organizations of or#ers or employers formed to promote their interests through
collective action. $rade unions 7ct -:.3 defines a trade union as a combination" hether temporary or
permanent formed primarily for the purpose of regulating the relation beteen
-* @or#men and 9mployers
.* @or#men and @or#men
/* 9mployers and 9mployers
Ror imposing restrictive conditions on the conduct of any trade or business and includes any federation of
to or more trade unions
;8) 6o e!$o)ee" /oin Tr%6e Union"@
$o protect themselves against e1ploitation by management
Qy force
+issatisfaction
<ac# of 6oer
Snion (nstrumentality
RO9E OF CONSTRUCTI.E AND #OSITI.E UNION
Snions have a crucial role to play in (ndustrial Relations. Snions have folloing broad role or objectives as
mentioned belo.
$o redress the bargaining advantage of the individual or#er vis,c,vis the individual employer" by
substituting joint or collective action for individual action.
$o secure improved terms and conditions of employment for its members and the ma1imum degree
of security to enjoy these terms and conditions.
$o obtain improved status for the or#er in his or# or her or#
$o increase the e1tent to hich unions can e1ercise democratic control over decisions" hich affect
their interests by poer sharing at the national" corporate and plant levels.
$he union poer is e1erted primarily at to levels. (ndustry level to establish joint regulation on basic
62
ages and hours ith an employer's association. 6lant level" here the shop steards organizations e1ercise
joint control over some aspects of the organization of or# and localized terms and conditions of
employment.
Snions are party to national" local and plant level agreements" hich govern their actions to a greater or
lesser e1tent" depending on their poer and on local circumstances.
UNFAIR 9A,OR #RACTICES
(ndustrial +isputes 7ct -:04 specifies the folloing as unfair labor practices
$o interfere" restrain" coerce or#men in the e1ercise of their right to organize" form" join or assist a
trade union.
$hreatening or#men ith discharge or dismissal
$hreatening of loc#out or closure
Tranting age increases to undermine trade union efforts
$o dominate" interfere ith or support financially or socially by ta#ing active interest in forming on
trade union" and
!hoing partiality or granting favor to one of several trade unions to a non,recognized trade union
$o establish employer sponsored trade unions
$o encourage or discourage memberships in any trade union by discriminating or#man by
punishing or discharging" changing seniority ratings" refuse promotions" giving unmerited
promotions" discharging union office bearers
$o discharge or dismiss or#men by victimizing" not in good faith" implicating in criminal case" for
patently false reasons
$o abolish or# of a regular nature
$o transfer or#men
$o sho favoritism or partiality
$o replace or#ers
$o recruit or#men during legal stri#es
$o indulge in acts of violence or force
$o refuse collective bargaining
6roposing and continuing loc#outs
63
ORGANILATIONA9 DO;NSILING
+onsizing necessarily means reducing or# force to an optimal level depending upon the business
conditions and organizational needs. (t is said that an organization should be rightly staffed ie. (t should not
be overstaffed and or understaffed. $here are broadly folloing method used to donsize the or#force as
mentioned belo.
Retren(8!ent:
(t means termination of service. (t is a termination for reasons other than disciplinary actions" retirement or
superannuating" e1piry and termination of contract or prolonged illness. Retrenchment compensation and
notice for retrenchment are only pre,conditions for retrenchment and not a right" hich a retrenched or#er
can claim. (f notice and compensation are not given" the or#er ill not be called as retrenched.
?ompensation is payable for -2 days ages for every completed year of service besides one month's notice
or pay in lieu of notice. Qut employee should have completed at least one year of complete service in order
to receive compensation.
9%) Off"
<ay of is inability of the employer to provide employment to or#ers due to circumstances beyond his
control such as shortage of poer" coal" brea#don of machinery" natural calamity etc. (t is not a
termination of service. <ay off compensation can be claimed as a statutory right by the or#er if he has
completed one year of continuous service or has or#ed for .0; days on the surface or -:; days
underground in -. calendar months. ?ompensation payable is half of the ages.
.o*nt%r) Retire!ent S(8e!e"
^R! are announced hen there is a huge pool of old aged manpoer occupying senior positions amounting
to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. ^R!
in other ords is a retirement before the age of retirement.
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MEANING OF ORGANILATION STRUCTURE
&rganizational structure is the formal decision,ma#ing frameor# by hich job tas#s are divided" grouped"
and coordinated. Rormalization is an important aspect of structure. (t is the e1tent to hich the units of the
organization are e1plicitly defined and its policies" procedures" and goals are clearly stated. (t is the official
organizational structure conceived and built by top management. $he formal organization can be seen and
represented in chart form. 7n organization chart displays the organizational structure and shos job titles"
lines of authority" and relationships beteen departments.
Or&%ni"%tion C8%rt":
$he organization charts are the sample and an understandable ay shoing the formal organization
structure,(t gives a clear overvie of the shape and structure of an organization.
(t is an order and the design of an organization captured in a visual form.
(t is a blue print or a basis for proper conceptualization" further thin#ing" a discussion board for further
modifications ithout affecting the actual changes.
$he organization chart ell dran" can give an insight in to the organization" its hierarchical structure line
and staff authority" authority and responsibility levels" chain of command" line of delegated authority"
decentralization or otherise in an organization" span of control etc.
(t also helps and guides the management in evolving changes ith the changes in the environment and for
faster realization of goals.
(t is a good guide for the ne recruits in their initiation in the organization and in understanding the
authority responsibility levels including his on.
For!% Or&%ni"%tion
$he intentional structure of roles in a formally organised enterprise is a formal organisation
(t should have an attribute of fle1ibility" room for discretion and the recognition of individual talents and the
capacities. (n a group functioning the individual effort ill have to be chanelize through the group leader
and has to be for the organization's good.
Infor!% Str*(t*re
65
$he informal organization is the netor#" unrelated to the firmXs formal authority structure" of social
interactions among its employees. (t is the personal and social relationships that arise spontaneously as
people associate ith one another in the or# environment. $he supervisor must realize that the informal
organization affects the formal organization. $he informal organization can pressure group members to
conform to the e1pectations of the informal group that conflict ith those of the formal organization. $his
can result in the generation of false information or rumors and resistance to change desired by management.
$he supervisor should recognize the e1istence of information groups" identify the roles member play ithin
these groups" and use #noledge of the groups to or# effectively ith them. $he informal organization can
ma#e the formal organization more effective by providing support to management" stability to the
environment" and useful communication channels.
M%tri= Str*(t*re
(n a matri1 organization" teams are formed and team members report to to or more managers. M%tri=
"tr*(t*re" utilize functional and divisional chains of command simultaneously in the same part of the
organization" commonly for one,of,a,#ind projects. (t is used to develop a ne product" to ensure the
continuing success of a product to hich several departments directly contribute" and to solve a difficult
problem. Qy superimposing a project structure upon the functional structure" a matri1 organization is formed
that allos the organization to ta#e advantage of ne opportunities. $his structure assigns specialists from
different functional departments to or# on one or more projects being led by project managers. $he matri1
concept facilitates or#ing on concurrent projects by creating a dual chain of command" the project
)program" systems" or product* manager and the functional manager. 6roject managers have authority over
activities geared toard achieving organizational goals hile functional managers have authority over
promotion decisions and performance revies. 7n e1ample is an aerospace firm ith a contract from
Z7!7.
Di0i"ion% Str*(t*re
(n a 6i0i"ion% or&%ni1%tion" corporate divisions operate as relatively autonomous businesses under the
larger corporate umbrella. (n a conglomerate organization" divisions may be unrelated. +ivisional structures
are made up of self,contained strategic business units that each produces a single product. Ror e1ample"
Teneral MotorsX divisions include ?hevrolet" &ldsmobile" 6ontiac" and ?adillac. 7 central headquarters"
focusing or results" coordinates and controls the activities" and provides support services beteen divisions.
Runctional departments accomplish division goals. 7 ea#ness hoever" is the tendency to duplicate
activities among divisions.
Or&%ni( Str*(t*re
&n the other hand" the organic structure is more fle1ible" more adaptable to a participative form of
management" and less concerned ith a clearly defined structure. $he organic organization is open to the
environment in order to capitalize upon ne opportunities.
&rganic organizations have a flat structure ith only one or to levels of management. F%t or&%ni1%tion"
emphasize a decentralized approach to management that encourage high employee involvement in decisions.
$he purpose of this structure is to create independent small businesses or enterprises that can rapidly
respond to customersX needs or changes in the business environment. $he supervisor tends to have a more
personal relationship ith his or her employees.
F*n(tion% Str*(t*re
Runctions or divisions arrange traditional organizations. (n a f*n(tion% or&%ni1%tion" authority is
determined by the relationships beteen group functions and activities. Runctional structures group similar
66
or related occupational specialties or processes together under the familiar headings of finance"
manufacturing" mar#eting" accounts receivable" research" surgery" and photo finishing. 9conomy is achieved
through specialization. Hoever" the organization ris#s losing sight of its overall interests as different
departments pursue their on goals.
67