HUMAN RESOURCE MANAGEMENT

INDEX
SL SUBJECT PAGE
1. HUMAN RESOURCE MANAGEMENT ( H R M ) 3
2. STRATEGIC HUMAN RESOURCE MANAGEMENT 9
3. HUMAN RESOURCE DEVELOPMENT 11
4. TEAM EFFECTIVENESS 13
5. HUMAN RESOURCE PLANNING ( H R P ) 14
. JOB ANAL!SIS 2"
#. JOB DESCRIPTION 21
$. JOB SPECIFICATION 22
9. JOB EVALUATION 23
1". JOB DESIGN 25
11. JOB SATISFACTION 2$
12. %OR& SAMPLING 2$
13. RECRUITMENT 31
14. SELECTION 35
15. TRAINING ' DEVELOPMENT 3$
1. INDUCTION ' ORIENATION 44
1#. MULTI(S&ILLING 4#
1$. CHANGE MANAGEMENT 49
19. PERFORMANCE APPRAISALS 5
2". HUMAN RESOURCE AUDIT 2
21. MOTIVATION THEORIES 4
22. MORALE #
23. PERSONNEL POLICIES $
24. UNIONS #1
25. ORGANI)ATIONAL DO%NSI)ING #3
%HAT I S HRM *
MEANING OF HRM
HRM is a management function that helps organisation to recruit, select, train, develop and manage its
members. Simply stated, HRM is all about management of people in the organisation from Recruitment to
Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to
maximise both employee as well as organisational effectiveness.
Definition 1
HRM is 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 obectives are accomplished.!
Definition 2
HRM is concerned with the people dimensions in management. Since every organization is made up of
people, ac"uiring 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 obectives. $his is true, regardless of the type of the organization % government,
business, education, health, recreational, or social action.!
OBJECTIVES OF HRM
&. Organizational Objectives + $o assist the organization to achieve its primary obectives, whether
it is profit ma#ing or charity or social agenda.
'. Societal Objectives: $o be responsive to the needs and challenges of the society while
minimizing the negative impact, if any, of such demands upon the organization.

(. Functional Objecti ves+ $o maintain department)s contribution and level of services at a level
appropriate to the organization)s needs.

*. Personal Objecti ves: $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.
SCOPE OF HRM
+rom E,-./ to E01- or R23.41-52,- to R2-1.252,- of an employee in the organization
+ollowing are the areas of operation of HRM,
&. Human Resource -lanning
'. .ob /nalysis
(. .ob 0esign
*. Recruitment 1 Selection
2. 3rientation 1 -lacement
4. $raining 1 0evelopment
5. -erformance /ppraisals
6. .ob 7valuation
8. 7mployee and 7xecutive Remuneration
&9. Motivation
&&. :ommunication
&'. ;elfare
&(. Safety 1 Health
&*. <ndustrial Relations
=ased on the above activities, we can summarize the scope of HRM into following seven different
categories,
&. <ntroduction to HRM
'. 7mployee Hiring
(. 7mployee and 7xecutive Remuneration
*. 7mployee Motivation
2. 7mployee Maintenance
4. <ndustrial Relations
5. -rospects of HRM
ROLE OF HRM
&. Advisory Role: HRM advises management on the solutions to any problems affecting people,
personnel policies and procedures.
>a? P2.67,,28 P7813126+ 3rganization Structure, Social Responsibility, 7mployment $erms 1
:onditions, :ompensation, :areer 1 -romotion, $raining 1 0evelopment and <ndustrial
Relations.
>b? P2.67,,28 P.73294.26+ Relating to manpower planning procedures, recruitment and
selection procedures, and employment procedures, training procedures, management
development procedures, performance appraisal procedures, compensation procedures,
industrial relations procedures and health and safety procedures.
'. Functional Role: $he personnel function formulates personnel policies in accordance with the
company)s doctrine and management guidelines. <t provides guidance to managers to help them
ensure that agreed policies are implemented.
(. Service Role: -ersonnel function provides personnel services. $hese services constitute the main
activities carried out by personnel department, li#e payroll, disciplinary actions, etc, and involve
the implementation of the policies and procedures described above.
ROLE OF HR MANAGERS
&. Huanitarian Role: Reminding moral and ethical obligations to employees.
'. !ounsellor: :onsultations to employees about marital, health, mental, physical and career
problems.
(. "ediator: -laying the role of a peacema#er during disputes, conflicts between individuals and
groups or management.
*. S#o$esan: $o represent the company in Media and other forums because he has better overall
picture of his company)s operations.
2. Proble Solver: Solving problems of overall human resource management and long@term
organizational planning.
4. !%ange Agent: <ntroducing and implementing institutional changes and installing organizational
development programs
5. "anageent of "an#o&er Resources: =roadly concerned with leadership both in the group and
individual relationships and labour@management relations.
OB J E CT I V E S V: 6 F UNCT I ONS OF HRM
HRM O;<23-1=26 S4>>7.-1,? HRM F4,3-17,6
Social 3bectives >(? >a? Aegal :ompliance
>b? =enefits
>c? Bnion Management
Relations
3rganizational 3bectives >5? >a? Human Resource -lanning
>b? 7mployee Relations
>c? Recruitment 1 Selection
>d? $raining 1 0evelopment
>e? -erformance /ppraisals
>f? -lacement 1 3rientation
>g? 7mployee /ssessment
+unctional 3bectives >(? >a? -erformance /ppraisals
>b? -lacement 1 3rientation
>c? 7mployee /ssessment
-ersonal 3bectives >2? >a? $raining 1 0evelopment
>b? -erformance /ppraisals
>c? -lacement 1 3rientation
>d? :ompensation
>e? 7mployee /ssessment
MANAGERIAL FUNCTIONS OF HRM
&. Planning: Research and plan about wage trends, labour mar#et conditions, union demands and
other personnel benefits. +orecasting manpower needs etc.
'. Organizing: 3rganizing manpower for the achievement of organizational goals and obectives.
(. Staffing: Recruitment 1 Selection
*. Directing: <ssuance of orders and instructions, providing guidance and motivation to managers and
employees.
2. !ontrolling: Regulating personnel activities and policies according to plans. 3bservations and
comparisons of deviations
OPERATIONAL FUNCTIONS OF HRM
&. Procureent: -lanning, Recruitment and Selection, <nduction and -lacement
'. Develo#ent: $raining, 0evelopment, :areer planning and counselling.
(. !o#ensation: ;age and Salary determination and administration
*. 'ntegration: <ntegration of human resources with organization.
2. "aintenance: Sustaining and improving wor#ing conditions, retentions, employee communication
4. Se#arations: Managing separations caused by resignations, terminations, lay offs, death, medical
sic#ness etc.
CHALLENGES OF HRM IN INDIAN ECONOM!
$he ob of HRM department in <ndia has never been so challenging. Aast decade has witnessed tectonic
shift in .ob mar#et. +rom being an employer)s mar#et, it has suddenly turned into employee)s mar#et,
especially in the most crucial segment, ie middle management. Clobalisation and <ndia)s growing stature
in the world has seen demand for <ndian managers soaring. +rom the state of plenty, there is a stage of
scarcity of the right talent. $he biggest challenge is to retain the talent one has so assiduously hunted and
trained. $he attrition rate has reached alarming proportions. <t has reached such proportions that certain
segments of <ndustry are maintaining bench strengths to fill in the sudden gaps due to resignations. <n
addition, there are following new issues,
&. (lobalization: Crowing internationalization of business and wor#force has its impact on HRM in
terms of problems of unfamiliar laws, languages, practices, attitudes, management styles, wor# ethics and
more. HR managers have a challenge to deal with more and more heterogeneous functions and more
involvement in employee)s personal life.
'. !or#orate Re)organizations: Aiberalisation has led to largescale reorganization of businesses
in terms of expansions, mergers and ac"uisitions, oint ventures, ta#e overs, and internal restructuring of
organizations. <n circumstances as dynamic and as uncertain as these, it is a challenge to manage
employees) anxiety, uncertainties, insecurities and fears.
(. *e& Organizational Fors: 7xposure to international business and practices have led to
change in the organisational structure and HR policies of the local companies. $a#e for instance, the
hierarchical structure of <ndian companies. Suddenly, <ndian companies have begun to adopt flat
hierarchical management structure. =ut to implement and grout such fundamental changes in management
philosophy of any company is never easy. $he challenge for HRM is to cope with the implications of
these new relations in place of well established hierarchical relationships that existed within the
organizations for ages in the past.
*. !%anging Deogra#%ics of +or$force: :hanges in wor#force are largely reflected by dual
career couples, large chun# of young blood with contrasting ethos of wor# among old superannuating
employees, growing number of women in wor#force, wor#ing mothers, more educated and aware wor#ers
etc. $hus, changing demography of wor#force has its own implications for HR managers and a true
challenge to handle.
2. !%anged ,#loyee ,-#ectations: ;ith the changes in wor#force demographics, employee
expectations and attitudes have also transformed. $raditional allurements li#e ob security, house, and
remunerations are not much attractive today. Rather, employees are demanding empowerment and
e"uality with management. Hence, it is a challenge for HRM to redesign the profile of wor#ers, and
discover new methods of hiring, training, remunerating and motivating employees.
4. *e& 'ndustrial Relations A##roac%: <n the changed industrial climate, even trade unions
have realised that stri#es and militancy have lost their relevance and not many wor#ers are willing to oin
them and disrupt wor#. However, the problems faced by wor#force now have different dimension for the
management. $hey manifest in the form of increased attrition rate. Bnsatisfied employees instead of
approaching the management for resolution, often ta#e up the new ob. $he challenge before the HRM is
find ways and means to feel the pulse of employees and address the issues on proactive basis.
5. Rene&ed Peo#le Focus: @Man behind the machine is most important than the machine!. $his is
an old doctrine of the /rmed +orces. However, this doctrine has begun to gain acceptance in the corporate
world and thus all out efforts to grab the best talent at what ever cost.
6. "anaging t%e "anagers: Managing the managers is most difficult. /rmed with inside
information, they can not be lured with rosy promises. $hey are in great demand too with growth in
economy. $hese are the people who are most mobile, attrition rate being highest for the unior and middle
management level. $he challenge of HRM is how to manage this tribeD
8. +ea$er Section.s 'nterests: /nother challenge for HRM is to protect the interest of wea#er
sections of society. $he dramatic increase of women wor#ers, minorities and other bac#ward communities
in the wor#force, coupled with wea#ening of trade unions, has resulted in the need for organizations to re@
examine their policies, practices and values. <n the name of global competition, productivity and "uality,
the interests of the society around should not be sacrificed. <t is a challenge of today)s HR managers to see
that these wea#er sections are neither denied their rightful obs nor are discriminated while in service.
&9. !ontribution to t%e Success of Organizations: $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
way. =ecause society)s well being to a large extent depends on its organizations.
S TRATEGI C HUMAN RES OURCE MANAGEMENT
Strategy:
Strategy is a way of doing something. <t includes the formulation of goals and setting of action plans for
accomplishment of that goal.!
Strategic "anageent:
/ -rocess of formulating, implementing and evaluating business strategies to achieve organizational
obectives is called Strategic Management!
Definition of Strategic "anageent
Strategic 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, 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 wea#nesses.
STEPS IN STRATEGIC MANAGEMENT
&. ,nvironental Scanning: /nalyze the 3pportunities and $hreats in 7xternal 7nvironment
'. Strategy Forulation: +ormulate Strategies to match Strengths and ;ea#nesses. <t can be done
at :orporate level, =usiness Bnit Aevel and +unctional Aevel.
(. Strategy '#leentation: <mplement the Strategies
*. ,valuation / !ontrol: 7nsure the organizational obectives are met.
IMPORTANCE ' BENEFITS OF STRATEGIC MANAGEMENT
&. /llows identification, prioritization and exploration of opportunities.
'. -rovides an obective view of management problems.
(. Represents framewor# for improved co@ordination and control
*. Minimizes the effects of adverse conditions and changes
2. /llows maor decisions to better support established obectives
4. /llows more effective allocation of time and resources
5. /voids ad hoc decisions
6. Helps to integrate the individual behaviours
8. 7ncourages forward thin#ing
&9. 7ncourages favourable attitude towards change.
ROLE OF HRM IN STRATEGIC MANAGEMENT
Role in Strategy Forulation: HRM is in a uni"ue position to supply competitive intelligence that may
be useful in strategy formulation. 0etails 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. Bni"ue HR capabilities serve as a driving force in
strategy formulation.
Role in Strategy '#leentation: HR Manager helps strategy implementation by supplying competent
people. /dditionally, HRM facilitates strategy implementation by encouraging proactive thin#ing,
communicating goals and improving productivity and "uality.
HUMAN RES OURCE DEVELOPMENT
Human Resource 0evelopment is a process to help people to ac"uire competencies and to increase their
#nowledge, s#ills and capabilities for better performance and higher productivity.

Definition 1:
HR0 is a process of enhancing the physical, mental and emotional capacities of individuals for
productive wor#.
Definition 2:
HR0 means to bring about the possibility of performance improvement and individual growth.
PROACTIVE HRD STRATEGIES FOR LONG TERM PLANNING AND
GRO%TH
Ai#e "uoted earlier, employee retention has become bigger challenge than employee hiring today. ;ith
trade unions breathing their last, and easy ob availability, employees have developed propensity to switch
obs for minor reasons without voicing their protest. $hus, HR0 has to ta#e a proactive approach, that is,
to see# preventive care in human relations. =y using HR0 strategies, maximization of efficiency and
productivity could be achieved through "ualitative growth of people.
Aong@term growth can also be planned by creating highly inspired groups of employees with high
aspirations to diversify around core competencies and to build new organizational responses for coping
with change.
/ proactive HR0 strategy can implement plans directed at improving personal competence and
productive potentials of human resources.
+ollowing strategic choices can be considered which would help today)s organizations to survive and
grow.
!%ange "anageent: Manage change properly and become an effective change agent rather than being
a victim of change itself.
0alues: /dopt proactive HR0 measures, which encourage values of trust, autonomy, proactive approach
and experimentation.
"a-iize Productivity and ,fficiency: Maximize productivity and efficiency of the organization by
helping "ualitative growth of people
TEAM EFFECTI VENES S
Definition:
/ team is a small group of people who agree to wor# together for achieving a clear and identifiable set of
goals.
1eas !an be 0ery ,ffective2
$he benefit of teams lie in Synergy which means % $he whole is greater than sum of its parts. $hus, a
team is able to produce more than the sum of individuals wor#ing separately. / team benefits from
complementing and some times contrasting abilities of its members. $eams can bring to bear a wider
range of s#ills and experience to solve a problem. $eams often lead to better "uality decisions as
individual whims and preudices are #ept in chec#. +urther, members of team have an obligation to each
other and thus there is a moral forceEbinding to perform.
TEAM EFFECTIVENESS
+or a team to be effective, following are the prere"uisites,
&. Harmony and trust among the team members
'. 7ffective leadership
(. Shared goals
*. 0iverse s#ills and experience @ technical, problem solving and interpersonal s#ills
2. :reativity and ris# ta#ing ability
4. +reedom to voice views
5. /bility to self@correct
6. <nterdependent wor#
8. 7ffective decision ma#ing process
&9. /bility to resolve conflict
&&. :lear communication channels
Synergy among the team members is very important. $he team needs a clear sense of direction which the
leader provides. Harmony and trust among the group members is utmost essential. <n any group, conflicts
are inevitable, how ever harmonious it may be. $here has to be a well formulated policy for conflict
management. 0ecision ma#ing is a source of potential conflicts. / well charted course for decision ta#ing
will be able to minimise such conflicts.
HUMAN RES OURCE PLANNI NG ( H R P)
Human Resource -lanning, as the name suggests, is the process of identificationE forecasting a firm)s
future re"uirement of type and number of people in order to meet the organisational goals and obectives.
<t is a continuous process either due to fresh re"uirement of manpower owing to
changeEgrowthEdiversification of business or due to attrition of manpower due to retirement, termination,
death, disability or resignations.
Definition 1:
HR- includes estimation of how many "ualified people are necessary to meet the future business
re"uirement, how many people will be available, and what, if anything, must be done to ensure
availability of personnel e"uals the demand at all times in the future.!
Definition 2:
HR- is a -rocess, by which an organization ensures that it has the right number of right #ind of people
at the right place, at the right time, capable of effectively and efficiently completing those tas#s that will
help the organization achieve its overall obectives.!
NEED ' IMPORTANCE OF HRP
Human Resource comes at a cost and generates profits. ;hile excess of human resource will lead to
unproductive costs, shortages of same will lead to idling of other resources and impede profit generation.
Having the people is not enough. 7ach ob needs specific s#ills and experience and only a certain trained
personnel can do it effectively. $herefore, it is necessary that right #inds of people are hired for each ob.
-ersonnel re"uirement is never static. Manpower wastages in the organisation #eep ta#ing place regularly
due to retirement, inury, resignations, termination, etc. <n addition, changes in the business environment,
business model and plan, capacityEproduct changes, diversifications, etc, also generate need to review the
human resource re"uirement of the organisation.
:hanges in the =usiness 7nvironment in the past one and half decade have led to relative scarcity of
talented people. Right #inds of people are no more available at short notice. $here is considerable time
gap between identifying the need for manpower and filling the vacancy, some times stretching between 4
months to one year. $hus, it will help the company if the re"uirement is forecasted ade"uately in advance
to enable hiring of right #ind of personnel ust in time so that neither the machinesEother resource idle for
want of manpower nor do the people idle. /t the same time, there could be situations when there is spare
manpower in the company. :ompany may have changed over to a new technology productions and
therefore all personnel trained in old machines may have become redundant and surplus. $he 7xit
-olicy! for wor#ers is not easy and they can not be released at short notice. Re@training or retrenchment of
personnel has to be planned in advance.
<n <ndia services is growing at a fast pace. <t has already overta#en agriculture and <ndustrial production
sectors to become the biggest contributor to C0-. <n service industry, human capital is the most important
asset. HR- bears a disproportionate importance in this industry.
Foundation of Personnel Functions : HR- provides for not only front line manpower but also
caters for support staff re"uirement which are called -ersonnel +unctions! li#e recruitment,
selection, personnel development, training and development etc. Aarge scale changes in frontline
staff will have proportional changes in re"uirement of support staff as well which can be planned
alongside.
HRP S!STEM
HR- System as such includes following elements or sets for planning.
=usiness 7nvironment
3verall 3rganization 3bectives
+orecasting Manpower Feeds
/ssessing Manpower Supply
Matching Manpower 0emand@Supply factors
=ased on these elements we can draw HR- System /rchitecture! as under.
=usiness 7nvironment
3rganization 3bectives 1 Coals
Manpower +orecast Manpower Supply /ssessment
Manpower -rogramming
Manpower <mplementation
:ontrol 1 Manpower
7valuation
Surplus Manpower Shortage of Manpower
HRP PROCESS
Organizational Objectives / Policies:
3rganizational obectives and policies give a clue to future re"uirement of manpower. / company
planning expansion would re"uire more manpower in near future. Gind of people re"uired would be
dictated by technology being planned for expansion. HR- needs to align hiring of people with these
elements. <n addition, company)s policies towards its manpower policies, li#e using internal resources for
promotion or external resources or dependence on certain caste or region for some obs have also to be
catered for. Cuarati companies in diamond business hire only guaraties. Similarly, certain =usiness
Houses from Raasthan prefer Raasthanies. So, HR- process will be dictated by following organisational
policies,

&. <nternal Hiring or 7xternal HiringD
'. $raining 1 0evelopment plans
(. Bnion :onstraints
*. .ob enrichment issues
2. Rightsizing organization
4. /utomation needs
5. :ontinuous availability of adaptive and flexible wor#force
"an#o&er Deand Forecasting: <t is the process of estimating the future "uantity and "uality of
people re"uired. $he basis should be long term corporate plans. 0emand forecasting should be based on
following factors.
'nternal Factors: )
-roduction levels
Few products and services
3rganizational structure
7mployee separation
=udget constraints
,-ternal Factors:
7conomic climate
Aaws and regulatory bodies
$echnology changes
Social +actors
Aegal re"uirements with regards to reservations
"an#o&er Su##ly Forecasting: $his process measures the number of people li#ely to be available
from within and outside the organization after ma#ing allowance for absenteeism, internal movements and
promotions, wastages, changes in hours and other conditions of wor#.
Su##ly Analysis covers:
E016-1,? H45A, R2674.326+ HR /udits facilitate analysis of existing employees with s#ills and
abilities. $he existing employees can be categorized as s#ills inventories >non@managers? and
managerial inventories >managers?.
S#ill inventory would include the followingH
-ersonal data
S#ills
Special Iualifications
Salary
.ob History
:ompany data
:apabilities
Special preferences
Management inventories would include the following,
;or# History
Strengths
;ea#nesses
-romotion -otential
:areer Coals
-ersonal 0ata
Fumber and $ypes of Subordinates supervised
$otal =udget Managed
-revious Management 0uties
'nternal Su##ly Assessent:
<nflows and outflows >transfers, promotions, separations, resignations, retirements etc.?
$urnover rate >Fo. 3f separations p.a. E /verage employees p.a. J &99?
:onditions of wor# >wor#ing hours, overtime, etc.?
/bsenteeism >leaves, absences?
-roductivity level
.ob movements >.ob rotations or cross functional utilizations?
,-ternal Su##ly Assessent: 7xternal sources are re"uired for following reasons
Few blood,
Few experiences
Replenish lost personnel
3rganizational growth
0iversification
7xternal sources can be colleges and universities, consultants, competitors and unsolicited
applications.
SUCCESSION PLANNING
"eaning of Succession Planning
Succession planning is the process or activities connected with the filling of #ey positions in the
organization hierarchy as vacancies arise. Succession planning focuses on identification of future
vacancies and locating the probable successor. +or example in succession planning the #ey concern can be
who will be next :73 or what will happen if the Mar#eting Manager retires in coming March. Crooming
a person to fill an important position may ta#e years. Succession planning involves identification of #ey
positions in the company and then scouting for people who can effectively fill those positions at short
notice.
'#ortance of Succession Planning
&. Succession planning helps when there is a sudden need due to ob hoppingEdeath of serious inury
to a #ey employee.
'. $here is little or no set bac# due to absence of #ey employee.
(. /cts as a motivator for the individual employee who comes to #now of the impending promotion
in advance.
*. Succession planning helps create loyalty towards the organization and improved motivation and
morale of individual employees.
2. 3rganization gains stable wor#force and low employee turnover.
4. Bltimately organization becomes successful in accomplishing its goals effectively.
CAREER PLANNING
:areer as a concept means a lifelong se"uences of professional, educational and developmental
experiences that an individual goes through in his wor#ing life. <t is a se"uence of positions occupied by a
person during his life.
:areer planning is the process of identifying an individual)s strengths, wea#nesses, aptitudes, inclinations,
aspirations and attitudes and designing his ob responsibilities to ta#e maximum advantages of positive
traits and minimising the effect negatives traits.
/fter identifying the personality traits of the individual begins the process of identifying suitable ob
billets for him. <t may also involve training at times to strengthen his wea# areas.
:areer planning is a process of integrating the employees) needs and aspirations with organizational
re"uirements.
/ typical succession planning involves the following activities,

&. /nalysis of the demand for managers and professionals by company level, function and
s#ill.
'. /udit of existing executives and proection of li#ely future supply from internal and
external sources.
(. -lanning of individual career paths based on obective estimates of future needs and
drawing on reliable performance appraisals and assessments of potential.
*. :areer counselling underta#en in the context of a realistic understanding of the future
needs of the firm as well as those of the individual.
2. /ccelerated promotions with development targeted against the future needs of the
business.
4. -erformance related training and development to prepare individuals for future roles as
well as current responsibilities
5. -lanned strategic recruitment not only to fill short term needs but also to provide
people for development to meet future needs
6. $he actual activities by which openings are filled
J OB ANAL!S I S
Definition 1
.ob /nalysis is a process of collecting and studying the information relating to operations and
responsibilities of a specific ob. $he immediate products of this analysis are K.ob 0escription) and K.ob
Specifications).!
Definition 2

<t is a basic technical procedure that is used to define duties and responsibilities and accountabilities of
the ob.!
PURPOSE OF JOB ANAL!SIS+ (
Huan Resource Planning 3HRP4 : .ob analysis helps in determining staffing needs, type,
"uality and "uantity.
Recruitent / Selection : Gnowing the staffing needs is essential for Recruitment and
Selection % Right person for each ob. Sourcing of recruits also becomes easy and cost effective
1raining / Develo#ent : .ob analysis is the #ey to determining $raining and 0evelopment
programs.
5ob ,valuation : .ob evaluation means determination of relative worth of each ob for the
purpose of establishing wage and salary. $his is possible with the help of ob description and
specificationsH i.e. .ob /nalysis.
Reuneration : .ob analysis also helps in determining wage and salary for the obs.
Perforance A##raisal : .ob analysis helps in fixing the bench mar#s of performance standards
which in turn help in obective -erformance appraisal, rewards, promotions, etc.

Safety / Healt% : .ob /nalysis helps to uncover hazardous conditions and unhealthy
environmental factors so that corrective measures can be ta#en to minimize and avoid possibility
of human inury.
J OB DES CRI PTI ON
.ob 0escription implies obective listing of the ob title, tas#s, and responsibilities involved in a ob.!
.ob description is a word picture of the duties, responsibilities and organizational relationships that
constitutes a given ob or position. <t defines wor# assignment and a scope of responsibility that are
sufficiently different from those of the other obs to warrant a specific title. .ob description is a broad
statement of purpose, scope, duties and responsibilities of a particular ob.
C7,-2,-6 7B J7; D263.1>-17,
&. .ob <dentification
'. .ob Summary
(. .ob 0uties and Responsibilities
*. Supervision specification
2. Machines, tools and materials
4. ;or# conditions
5. ;or# hazards
6. 0efinition of unusual terms
F7.5A- 7B J7; D263.1>-17,
&. .ob $itle
'. RegionEAocation
(. 0epartment
*. Reporting to >3perational and Managerial?
2. 3bective
4. -rincipal duties and responsibilities
J OB S PECI FI CATI ONS
.ob Specification involves listing of "ualifications, s#ills and abilities re"uired in an employee to meet
the ob description. $hese specifications are minimum re"uired to do the ob satisfactorily.!
<n other words, it is a statement of minimum acceptable physicalEpsychological attributes and professional
s#ills necessary to perform the ob properly. .ob specifications see# to indicate #ind of persons who can
be expected to meet the role re"uirements. $hus, it is basically concerned with matters of selection,
screening and placement and is intended to serve as a guide in hiring.
C7,-2,-6 7B J7; S>231B13A-17,6
&. -hysical :haracteristics
'. -sychological characteristics
(. -ersonal characteristics
*. 7ducational Iualifications
2. S#ill Set and 7xperienceEResponsibilities
4. 0emographic features
.ob specifications can be further divided into three broad categories
&. 7ssential /ttributes
'. 0esirable /ttributes
(. :ontra@<ndicators % /ttributes which are li#ely to act as impediments to success of ob
J OB EVALUATI ON
.ob evaluation is the process of analyzing and assessing various obs systematically to ascertain their
relative worth in an organization.
.ob 7valuation involves determination of relative worth of each ob for the purpose of establishing wage
and salary differentials. Relative worth is determined mainly on the basis of .ob 0escription and .ob
Specification only. .ob 7valuation helps to determine wages and salary grades for all obs. 7mployees
need to be compensated depending on the grades of obs they perform. Remuneration must be based on
the relative worth of each ob. <gnoring this basic principle results in ine"uitable compensation and
attendant ill effects on employees) morale. / perception of ine"uity is a sure way of de@motivating an
employee.
.obs are evaluated on the basis of content and placed in order of importance. $his establishes .ob
Hierarchies, which becomes the basis for satisfactory wage differentials among various obs.
.obs are ran#ed >not obholders?
PROCESS OF JOB EVALUATION+
&. 0efining obectives of ob evaluation
>a? <dentify obs to be evaluated >=enchmar# obs or all obs?
>b? ;ho should evaluate obD
>c? ;hat training do the evaluators needD
>d? How much time involvedD
>e? ;hat are the criteria for evaluationD
>f? Methods of evaluation to be used
'. ;age Survey
(. 7mployee :lassification
*. 7stablishing wage and salary differentials.
METHODS OF JOB EVALUATION
&. Analytical "et%ods
>a? P71,- RA,C1,? M2-D796+ 0ifferent factors are selected for different obs with accompanying
differences in degrees and points.
>b? FA3-7. C75>A.167, M2-D79+ $he important factors are selected which can be assumed
to be common to all obs. 7ach of these factors are then ran#ed with other obs. $he worth
of the ob is then ta#en by adding together all the point values.
'. *on)Analytical "et%ods
>a? RA,C1,? M2-D79+ .obs are ran#ed on the basis of their title or contents. Ai#e Managers,
Supervisors, ;or#ers, -eon, etc. /ll managers whether from production, planning, sales,
stores or /llied Services >House Geeping? 0eptt are treated e"ual. .ob is not bro#en down
into factors etc. <t is easier to implement but not always satisfactory for the employees.
>b? J7; G.A91,? M2-D79+ <t is based on the ob as a whole and the differentiation is made on the
basis of ob classes and grades. Ai#e in a hotel, Receptionist)s ob may be graded higher
than bac# office billing cler#)s ob. Similarly, a productionEsales manager billet may be
graded higher than /llied Services Manager)s. <n this method it is important to form a
grade description to cover discernible differences in s#ills, importance to company)s core
operations, responsibilities and other characteristics.
PITFALLS OF JOB EVALUATION+
&. Sometimes encourages employees to manipulate for promotionEinternal placement when there may be
limited opportunities for enhancement as a result of downsizing.
'. <t promotes internal focus >office politics? instead of customer orientation
(. Fot suitable for forward loo#ing organizations, which may have trimmed multiple ob titles into two
or three broad obs.
J OB DES I GN
<n the most simplified form @ $he process of brea#ingEorganizing wor# into specific tas#s in order to
perform a specific ob is called .ob 0esign. .ob 0esign is the logical Se"uence to .ob /nalysis. .ob
design involves conscious efforts to organise tas#s, duties and responsibilities into a unit of wor# to
achieve certain obective.
Ste#s in 5ob Design
&. Specification of <ndividual $as#s
'. Specification of Methods for $as#s -erformance
(. :ombination of $as#s into Specific .obs to be assigned to individuals
FACTORS AFFECTING JOB DESIGN
&. Organizational factors
>a? :haracteristics of $as#s >-lanning, 7xecution and :ontrolling of $as#?
>b? ;or# +low >-rocess Se"uences?
>c? 7rgonomics >$ime 1 Motion Study?
>d? ;or# -ractices >Set of ways of performing tas#s?
2. ,nvironental Factors
>a? 7mployee /bilities and /vailability
>b? Social and :ultural 7xpectations
3. 6e%avioural ,leents
>a? +eedbac#
>b? /utonomy
>c? Bse of /bilities
>d? Lariety
TECHNIEUES OF JOB DESIGN
&. +or$ Si#lification : .ob is simplified or specialized. $he ob is bro#en down into small
parts and each part is assigned to an individual. $o be more specific, wor# simplification is
brea#ing down the ob to such small tas#s that complexity is ta#en out of them. Ai#e in a assembly
line of car, one person only tighten wheel nuts with a pneumatic tool which tighten the nuts. $he
complexity of ensuring that each nut is tightened to re"uired degree has been transferred to
machine and the wor#er only applies the tool to the right place. He does not even put the wheel in
place. <n such cases, wor# becomes repetitive in nature. ;or# simplification is used when obs are
not specialized.
'. 5ob Rotation : Same ob, same people, same surrounding, days over days, months over
months, leads to boredom and even fatigue. /nd it manifests in higher error rate, fall in
productivity, absenteeism, ob hopping, etc. .ob rotation is answer to such problems. ;hile
broadly the ob may remain same, minor variations between obs are enough to reuvenate the
employee. <t not only benefits the personnel but also the organisation in e"ual measure
>a? B2,2B1- -7 -D2 E5>87/22. <t is a development tool since the employees get exposure to
several obs which develops their personality and employability. <t improves their self@
image and leads to personal growth. Such cross functional deployments often reveal
hidden performance potentialsEs#ills of many employees in the course of new ob.
>b? B2,2B1-6 -7 -D2 C75>A,/+ Such cross functional #nowledge of employees provides the
company with a fall bac# option in case of absence of any employee. <t also gives
flexibility to the management to reorganise the functional setup ust in case of need li#e
demand pattern shift or change in business model or any other eventuality. /lso, periodic
ob rotation is the best method to avoid compartmentalisation of departments. Movement
of personnel between departments and first hand #nowledge of limitations and problems
faced by other departments reduces frictions and leads to better cooperation between them.
<nterpersonal bonds developed during in the course of such cross functional ob rotation
further smoothens the interaction between departments. 3n the negative side, training costs
rise and it can also de@motivate intelligent and ambitious trainees who might ta#e it as their
undesirability in their own department unless it is well laid down policy of the company.
(. 5ob ,nlargeent : <t means expanding the number of tas#s, or duties assigned to a given ob.
.ob enlargement is naturally opposite to wor# simplification. /dding more tas#s or duties to a ob
does not necessarily mean that new s#ills and abilities are needed. $here is only horizontal
expansion. <t is with same s#ills ta#ing additional responsibilities li#e increasing the number of
machines operators under a supervisor from &9 to &2. .ob enlargement may involve brea#ing up of
the existing wor# system and redesigning a new wor# system. +or this employees also need to be
trained to adust to the new system. .ob enlargement is said to contribute to employee motivation
but the claim is not validated in practice.
*. 5ob ,nric%ent : .ob enrichment is to add a few more motivators to a ob to ma#e it more
rewarding. / ob is enriched when the nature of the ob is exciting, challenging, rewarding and
creative or gives the ob holder more decision@ma#ing, planning and controlling powers. /n
enriched ob will have more authority, responsibility, autonomy >vertical enrichment?, more
variety of tas#s >horizontal enrichment? and more growth opportunities. $he employee does more
planning and controlling with less supervision but more self@evaluation. +or example, transferring
some of the supervisor)s tas#s to the employee and ma#ing his ob enriched. /s per Hertzberg,
who was the father of this term, an enriched ob has eight characteristics,
>a? Direct Feedbac$: 7mployee should be able to get immediate #nowledge of the results they
are achieving.
>b? !lient Relations%i#: /n employee who serves a client or customer directly has an
enriched ob. $he client can be outside or inside the firm.
>c? *e& 7earning: /n enriched ob allows its incumbent to feel that he is growing intellectually.
>d? Sc%eduling O&n +or$: +reedom to schedule own wor# >autonomy? is ob enrichment.
>e? 8ni9ue ,-#erience: / enriched ob has some uni"ue "ualities or features.
>f? !ontrol over Resources: 3ne approach to .ob enrichment is for the each employee to have
control over his or her resources and expenses.
>g? Direct !ounication Aut%ority: /n enriched ob allows wor#er to communicate directly
with people who use his or her output.
>h? Personal Accountability: /n enriched ob holds the incumbent responsible for the results. He
or she receives praise for good wor# and blame for poor wor#.
Probles &it% 5ob ,nric%ent
>a? .ob enrichment is not a substitute for good governance. <f other environmental factors in the
business are not right, mere ob enrichment will not mean much.
>b? .ob enrichment may have short term negative effects till the wor#er gets used to the new
responsibility.
>c? .ob enrichment itself might not be a great motivator since it is ob@intrinsic factor. /s per the
two@factor motivation theory, ob enrichment is not enough. <t should be preceded by
hygienic factors etc.
>d? .ob enrichment assumes that wor#ers want more responsibilities and those wor#ers who are
motivated by less responsibility, ob enrichment surely de@motivates them
>e? ;or#ers participation may affect the enrichment process itself.
>f? :hange is difficult to implement and is always resisted as ob enrichment brings in a changes
the responsibility.
2. Autonoous or Self)Directed 1eas : 7mpowerment results in self@directed wor# teams.
/ self@directed team is a group of employees responsible for a whole wor# segment. $hey wor#
together, handle day@to@day problems, plan and control, and are highly effective team.
J OB S ATI S FACTI ON
.ob satisfaction is self satisfaction derived by an employee in doing the ob he has been entrusted to do.
.ob satisfaction is more a function of the various attitudes possessed by an employee towards his ob,
related factors and life in general than the ob itself. $he attitudes related to ob may be wages,
supervision, steadiness, wor#ing conditions, advancement opportunities, recognitions, fair evaluation of
wor#, social relations on ob, prompt settlement of grievances etc. / person with a #ind heart will find
high level of ob satisfaction in wor#ing with some agency involved in charitable wor# though the salary
might be relatively less. /n over ambitious person will never find the ob satisfaction.
<n short ob satisfaction is a general attitude towards the ob, which is the result of many specific attitudes
in three areas namely, ob factors, individual characteristics and group relationships outside the ob.
COMPONENTS OF JOB SATISFACTION
Personal factors: Sex, 0ependents, /ge, $imings, <ntelligence, Fatural affinity towards the ob,
7ducation and -ersonality.
5ob 'n%erent Factors: Fature of wor#, S#ills, 3ccupational status, Ceography, etc.
"anageent !ontrolled Factors: Security, -ayment, +ringe benefits, /dvancement opportunities and
;or#ing conditions, :o@wor#ers, Responsibilities, Supervision
%OR& S AMPLI NG
Definition:
M/ measurement techni"ue for the "uantitative analysis of an randomEirregularly occurring activity.M
MEANING OF %OR& SAMPLING
;or# sampling is based on the theory that the characteristics of a sufficiently large sample represent the
actual characteristics of entire population. ;or# sampling operates by an observer ta#ing a series of
random observations on a particular MitemM of interest >machine, operating room, doc#, etc.? to observe its
MstateM >wor#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.
/ssume, for example, that you wish to determine the proportion of time a factory operator is wor#ing or
idle. /lso assume that '99 random observations were made of the operator and during '* of these he or
she was observed to be idle. +rom the random samples of his state you conclude that the individual is
wor#ing &54E'99 N 66O of the time.
ADVANTAGES OF %OR& SAMPLING
<t is relatively easy, simple and inexpensive to use and extremely helpful in providing a deeper
understanding of all types of operations.
;hen properly used, it can help pinpoint those areas, which should be analyzed in further detail and can
serve as a measure of the progress being made in improving operations.
EUESTIONS OF %OR& SAMPLING STUD!
;hat is our e"uipmentEasset utilizationD
;hen we are not adding value to the product, how are we spending our timeD
How are our inter@dependent systems performingD
;here should we focus our continuous improvement activitiesD
DISTINCTION BET%EEN %OR& SAMPLING AND FTIME STUDIESF
=efore we set out to analyse the distinctions between wor# sampling and time studies, let us understand
that the two are as different as chal# and cheese. $he purpose of each is different and one can not be
substituted by the other in most cases. ;hile wor# sampling is a broad analysis of trend, time study is
microanalysis of the ob and procedure. $ime study is conducted with a view to improve the
processEmethod where as wor# sampling is done to improve "uantitative utilisation of resources.
;or# sampling is relatively cheaper because it uses random samples instead of continuous
observations.
Many operators or machines can be studied by a single observer
;or# sampling normally spans over several days or wee#s, thus minimizing the effects of sudden
variations on a particular day.
;or# Sampling tends to minimize operator behaviour modification during observation >operator,
deliberately or otherwise, under or over performing while under observation?.
;or# Sampling, in general, does not re"uire a trained time@study analyst to ta#e the observations.
/lso, stopwatches or other timing devices are not re"uired. Many studies ma#e use of off@shift
technicians or operators to ta#e the observations.
%OR& SAMPLING METHODOLOG!
/n analyst R/F03MAP observes an activity >e"uipment, 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 will approximate the percentage of time that the activity is in that given state.
Randomness of observations is very critical for a wor# sampling study. $he observations should vary
over the time of the day, days of the wee# and if possible, months to get he correct trend.
RECRUI TMENT
Definition:
Recruitment is the process of finding and attracting capable applicants for a ob to create a pool from
which selection is to be made of the most suitable candidates!.
$he -rocess begins when new recruits are sought and ends when their applications are submitted. $hough
theoretically recruitment process is said to end with the receipt of applications, in practice, the activity
extends to the screening of applications so as to eliminate those who are not "ualified for the ob. $he
result is a pool of applicants from which selections for new employees are made.!
PURPOSE AND IMPORTANCE
&. $o broad base the applicant pool in order to get the right talent at the affordable cost.
'. <ncrease the pool of ob candidates at minimum cost
(. Help increase success rate of selection process by reducing number of under@"ualified or over@
"ualified applications.
*. Meet legal and social obligations
2. <dentify and prepare potential ob applicants
FACTORS AFFECTING RECRUITMENT
,-ternal Factors:
&. 0emand and Supply status of specific s#ills set.
'. Bnemployment Rate >/rea@wise?
(. Aabour Mar#et :onditions
*. -olitical and Aegal 7nvironment >Reservations, Aabour laws?
2. :ompany)s <mage
'nternal Factors:
&. Recruitment -olicy ><nternal Hiring or 7xternal HiringD?
'. Human Resource -lanning >-lanning of resources re"uired?
(. Size of the 3rganization >=igger the size lesser the recruitment problems?
*. :ost
2. Crowth and 7xpansion -lans
RECRUITMENT PROCESS
12 Recruitent Strategy Develo#ent
>a? $rained or untrained >to be trained at company)s expense?
>b? <nternal or external sourcing
'nternal Recruitent 3Source 14
>i? -resent employees
>ii? 7mployee referrals
>iii? $ransfers 1 -romotions
>iv? +ormer 7mployees
>v? -revious /pplicants
,-ternal Recruitent 3Source 24
>i? -rofessionals or $rade /ssociations
>ii? /dvertisements
>iii? 7mployment 7xchanges
>iv? :ampus Recruitment
>v? ;al#@ins <nterviews
>vi? :onsultants
>vii? :ontractors
>viii? 0isplaced -ersons
>ix? Radio 1 $elevision
>x? /c"uisitions 1 Mergers
>c? :ompetitors
>d? $echnological tools to be used for advertising
>e? ;here to loo#
>f? How to loo#
22 Recruitent Planning
>a? Fumber of applicants sought >=ased on past experience?
>b? $ypes of applicants to be called >Iualification, category, area, etc?
:2 Searc%ing
>a? Source activation
>b? Selling
;2 Screening of A##lications
<2 ,valuation and !ost !ontrol
>a? Salary :ost
>b? Management 1 -rofessional $ime spent
>c? /dvertisement :ost
>d? -roducing Supporting literature
>e? Recruitment 3verheads and 7xpenses
>f? :ost of 3vertime and 3utsourcing
>g? :onsultant)s fees
EVALUATION OF RECRUITMENT PROCESS
&. Return rate of each source of recruitment
'. Selection rate from each source
(. Retention and -erformance of selected candidates
*. Recruitment :ost
2. $ime lapsed data
4. <mage proection
INTERNAL RECRUITMENT
A9=A,-A?26 D16A9=A,-A?26
&. Aess :ostly
'. :andidates already oriented towards
organization
(. 3rganizations have better #nowledge
about internal candidates
*. 7mployee morale and motivation is
enhanced
&. 3ld concept of doing things
'. <t abets raiding
(. :andidates current wor# may be
affected
*. -olitics play greater roles
2. Morale problem for those not
promoted.
EXTERNAL RECRUITMENT
A9=A,-A?26 D16A9=A,-A?26
&. =enefits of new s#ills, talents and <deas
'. =enefits of new experiences
(. :ompliance with reservation policy
becomes easy
*. Scope for resentment, ealousies, and
heartburn are avoided.
&. =etter morale and motivation
associated with internal recruiting is
denied
'. <t is costly method
(. :hances of creeping in false positive
and false negative errors
*. /dustment of new employees ta#es
longer time.
S ELECTI ON
MEANING OF SELECTION
Selection is the process of pic#ing up individuals >out of the pool of ob applicants? with re"uisite
"ualifications and competence to fill obs in the organization. / formal definition of Selection is as under,
Selection is the process of differentiating between applicants in order to identify and hire those with a
greater li#elihood of success in a ob.!
RECRUITMENT V6 SELECTION+ DIFFERENCE
R23.41-52,- S2823-17,
&. Recruitment refers to the process of
identifying and encouraging people
with re"uired "ualifications to apply for
ob.
'. Recruitment is said to be positive in its
approach as it see#s to attract as many
candidates as possible.
&. Selection is concerned with pic#ing up
the right candidates from a pool of
applicants.
'. Selection on the other hand is negative
in its application in as much as it see#s
to eliminate as many un"ualified
applicants as possible in order to
identify the right candidates.
PROCESS : STEPS IN SELECTION
&. Preliinary 'ntervie& : $his is a short interview. $he purpose of preliminary interviews is to
weed out the prima facie misfit applicants. <t is also called courtesy interview and is a good public
relations exercise.
'. Selection 1ests : .obsee#ers who pass the preliminary interviews are called for tests. $here are
various types of tests conducted depending upon nature of ob and the company. $hese tests can be
/ptitude $ests, -ersonality $ests and /bility $ests and are conducted to udge how well an
individual can perform tas#s related to the ob. =esides this, there are some other tests also li#e
<nterest $ests >activity preferences?, Craphology $est >Handwriting?, Medical $ests, -sychometric
$ests etc.
(. ,#loyent 'ntervie& : $he next step in selection is employment interview. Here, interview is a
formal and in@depth conversation to assess applicant)s suitability. <t is considered to be an
excellent selection device. <nterview type and pattern can vary greatly. <nterviews can be 3ne@to@
3ne, -anel <nterview, or Se"uential <nterviews. =esides there can be Structured and Bnstructured
interviews, =ehavioural <nterviews, Stress <nterviews.
*. Reference / 6ac$ground !%ec$s : Reference chec#s and bac#ground chec#s are conducted
for provisionally identified candidates to verify the information provided by them. Reference
chec#s can be through formal letters or telephonic. However, it is more of a formality and
selections decisions are very seldom affected by it.
2. Selection Decision : /fter obtaining all the information, selection decision is made. $he final
decision has to be made out of applicants who have been identified as suitable. $he views of line
managers carry much weight at this stage because it is they who are eventually responsible for the
performance of the new employee. :onsidering the ob climate, often more than re"uired number
is selected to cater for any selected candidate withdrawing at the ob offer stage.
4. P%ysical ,-aination : /fter the selection decision is made, the candidate is re"uired to
undergo a physical fitness test. / ob offer is often contingent upon the candidate passing the
physical examination.
5. 5ob Offer : $he next step in selection process is ob offer to those applicants who have
successfully passed all tests. <t is made by way of letter of appointment.
6. !ontract of ,#loyent : /fter the ob offer is made and candidates accept the offer, certain
documents are needed to be executed by the employer and the candidate. / formal contract of
employment, containing written contractual terms of employment etc are signed by both sides.
GOOD SELECTION PRACTICE+ ESSENTIALS
&. 0etailed .ob 0escriptions and .ob Specifications prepared in advance and endorsed by personnel and
line management should be available with Selection =oard.
'. $rain the selectors to assess the right attributes in applicants.
(. 0etermine aids to be used for selection process.
*. :hec# competence of recruitment consultants before hiring their services.
2. <nvolve line managers at all stages
4. /ttempt to validate the procedure regularly
5. Help the appointed candidate to succeed by training and management development
BARRIERS TO EFFECTIVE SELECTION
&. Perce#tion : ;e all perceive the world differently. 3ur limited perceptual ability is obviously a
stumbling bloc# to the obective and rational assessment of people.
'. Fairness : =arriers of fairness includes discrimination against religion, region, caste, race or
gender, etc.
(. Plet%ora of Huan 1raits : Success in any ob is more a function of attitude than aptitude. $he
tests are validated over a period of time to differentiate between the employees who can perform
well and those who will not. Pet, no test can claim &99O success in finding the right employee.
*. Pressure : -ressure brought on selectors by management, politicians, bureaucrats, relatives, friends
and peers to select particular candidate are also barriers to effective selection.
2. 1ie and !ost : 3ften the time and funds available to underta#e selection process are limited
forcing the selectors to forego certain tests.
TRAI NI NG ' DEVELOPMENT
$raining and development, though are spo#en in the same breadth, are "uite different. $raining generally
refers to teaching of new s#ill in professional field of the employee. Ai#e an employee being taught to
operate another machine, or to perform a new operation in the same machine. 0evelopment refers to
enhancement of personal "ualities of the employee which do not have a one to one relationship with his
current ob. <t may be to help an employee to grow. Ai#e stress management techni"ues, yoga lessons,
meditation exercises, soft s#ills training, etc. ;hile training is expected to reward the company
immediately in terms of better productivity of employee, 0evelopment does not lead to any immediate
and tangible benefits to the company. /t the best, there might be some intangible benefits in the long run,
li#e improved motivation, loyalty, improved intra@departmental relations, reduced absenteeism on medical
ground, etc.
0ividing line between training and development is expectation of immediate benefits. $hus, in case a
program, generally "ualifying as development program, is directly related to employee)s ob s#ills, li#e
:ommunication S#ills course for telephone attendant or receptionist, will "ualify as training and not as
development. Same program for some one in bac# office would be termed as 0evelopment program.
E943A-17,+ <t is a theoretical learning in classrooms. $he purpose of education is to teach theoretical
concepts and develop a sense of reasoning and udgment. /ny training and development program must
contain an element of education.
Definition of 1raining / Develo#ent

Training & Development is any attempt to improve current or future employee performance by
improving his performance capabilities and potential through learning, usually by changing the
employee)s attitude or increasing his or her s#ills and #nowledge.!
$he need for $raining and 0evelopment is determined by the employee)s performance deficiency,
computed as follows.
$raining 1 0evelopment Feed N Standard -erformance % /ctual -erformance
OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP)
&. $o ma#e the managers
Self@starters
:ommitted
Motivated
Result oriented
Sensitive to environment
Bnderstand use of power
'. :reating self awareness
(. 0evelop inspiring leadership styles
*. <nstil zest for excellence
2. $each them about effective communication
4. $o subordinate their functional loyalties to the interests of the organization
TRAINING AND DEVELOPMENT+ DIFFERENCE
T.A1,1,? D2=287>52,-
$raining is s#ills focused 0evelopment is creating learning abilities
$raining is presumed to have a formal
education
0evelopment is not education dependent
$raining needs depend upon lac# or
deficiency in s#ills
0evelopment depends on personal drive
and ambition
$rainings are generally need based 0evelopment is voluntary
$raining is a narrower concept focused on
ob related s#ills
0evelopment is a broader concept focused
on personality development
$raining may not include development 0evelopment includes training wherever
necessary
$raining is aimed at improving ob related
efficiency and performance
0evelopment aims at overall personal
effectiveness >including ob efficiencies?
IMPORTANCE OF TRAINING ' DEVELOPMENT
&. Helps remove performance deficiencies in employees
'. Creater stability, flexibility and capacity for growth in an organization
(. /ccidents, scraps and damages to machinery can be avoided
*. Serves as effective source of recruitment
2. <t is an investment in HR with a promise of better returns in future
4. Reduces dissatisfaction, absenteeism, complaints and turnover of employees
IDENTIFICATION OF TRAINING NEEDS
'ndividual 1raining *eeds 'dentification
&. -erformance /ppraisals
'. <nterviews
(. Iuestionnaires
*. /ttitude Surveys
2. $raining -rogress +eedbac#
4. ;or# Sampling
5. Rating Scales
(rou# 7evel 1raining *eeds 'dentification
&. 3rganizational Coals and 3bectives
'. -ersonnel E S#ills <nventories
(. 3rganizational :limate <ndices
*. 7fficiency <ndices
2. 7xit <nterviews
4. M=3 E ;or# -lanning Systems
5. Iuality :ircles
6. :ustomer Satisfaction Survey
8. /nalysis of :urrent and /nticipated :hanges
B2,2B1-6 7B T.A1,1,? N2296 I92,-1B13A-17,
&. $rainers can be informed about the broader needs in advance
'. $rainers -erception Caps can be reduced between employees and their supervisors
(. $rainers can design course inputs closer to the specific needs of the participants
*. 0iagnosis of causes of performance deficiencies can be done
METHODS OF TRAINING
On t%e 5ob 1rainings 3O514: ;hen an employee learns the ob in actual wor#ing site in real life
situation, and not simulated environment, it is called 3.$. 7mployee learns while wor#ing. $a#e the
instance of roadside mechanics. Small boys wor#ing there as helpers learn while helping the head
mechanic. $hey do not learn the defect analysis and engine repairing s#ills in any classroom on engine
models.
Advantages of On)t%e)5ob 1raining:
&. <t is directly in the context of ob
'. <t is often informal
(. <t is most effective because it is learning by experience
*. <t is least expensive
2. $rainees are highly motivated
4. <t is free from artificial classroom situations
Disadvantages of On)t%e)5ob 1raining:
&. $rainer may not be experienced enough to train or he may not be so inclined.
'. <t is not systematically organized
(. -oorly conducted programs may create safety hazards
=On t%e 5ob 1raining> "et%ods
&. J7; R7-A-17,+ Refer page '5.
'. J7; C7A3D1,?+ /n experienced employee can give a verbal presentation to explain the
nitty@gritty)s of the ob.
(. J7; I,6-.43-17,+ <t may consist of 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#.
*. A>>.2,-1326D1>6+ Cenerally fresh graduates are put under the experienced employee to
learn the functions of ob.
2. I,-2.,6D1>6 A,9 A6616-A,-6D1>6+ <nterns or assistants are recruited to perform specific
time@bound obs or proects during their education.
Off t%e 5ob 1raining: $rainings conducted in simulated environments, classrooms, seminars, etc are
called 3ff the .ob $raining.
Advantages of Off)t%e)5ob 1raining
&. $rainers are usually experienced enough to train
'. <t is systematically organized
(. 7fficiently created programs may add lot of value
Disadvantages of Off)t%e)5ob 1raining:
&. <t is not directly in the context of ob
'. <t is often formal
(. <t may not be based on experience.
*. <t is expensive.
2. $rainees may not be much motivated
4. <t is artificial in nature
=Off t%e 5ob 1raining> "et%ods
&. C8A66.775 L23-4.26+ /dvantage % <t can be used for large groups. :ost per trainee is low.
0isadvantages % Aow interest of employees . <t is not learning by practice. <t is 3ne@way
communication. Fo authentic feedbac# mechanism. Ai#ely to lead to boredom for
employees.
'. A4917(V164A8+ <t can be done using +ilms, $elevisions, Lideo, and -resentations etc.
/dvantages % ;ide range of realistic examples, "uality control possible. 0isadvantages %
3ne@way communication, Fo feedbac# mechanism. Fo flexibility for different audience.
(. S1548A-17,+ :reating a real life situation for decision@ma#ing and understanding the actual ob
conditions give it. 7nsures active participation of all trainees. :an be very effective but
needs good conductors.
*. CA62 S-49126+ <t is a written description of an actual situation in the past in same organisation
or some where else and trainees are supposed to analyze and give their conclusions in
writing. $his is another excellent method to ensure full and whole hearted participation of
employees and generates good interest among them. :ase is later discussed by instructor
with all the pros and cons of each option. <t is an ideal method to promote decision@ma#ing
abilities within the constraints of limited data.
2. R782 P8A/6+ 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. /ttitudinal change is another result. $hese are generally used in
M0-.
4. S2,61-1=1-/ T.A1,1,?6, $his is more from the point of view of behavioural assessment as to
how an individual will conduct himself and behave towards others under different
circumstances. $here is no pre@planned agenda and it is instant. /dvantages % increased
ability to empathize, listening s#ills, openness, tolerance, and conflict resolution s#ills.
0isadvantage % -articipants may resort to their old habits after the training.
5. P.7?.A5529 I,6-.43-17,6+ -rovided in the form of bloc#s either in boo# or a teaching
machine using "uestions and feedbac#s without the intervention of trainer. /dvantages %
Self paced, trainees can progress at their own speed, strong motivation for repeat learning,
material is structured and self@contained. 0isadvantages % Scope for learning is lessH cost
of boo#s, manuals or machinery is expensive.
6. C75>4-2. A1929 I,6-.43-17,6+ <t is extension of -< method, by using computers.
/dvantages % -rovides accountabilities, modifiable to technological innovations, flexible
to time. 0isadvantages % High cost.
8. LA;7.A-7./ T.A1,1,?.
BARRIERS TO EFFECTIVE TRAINING
&. Aac# of Management commitment
'. <nade"uate $raining budget
(. Aarge scale poaching of trained staff
*. Fon@cooperation from wor#ers
2. Bnions influence
HO% TO MA&E TRAINING EFFECTIVE
&. Management :ommitment
'. <ntegration of $raining with =usiness Strategies
(. :omprehensive and Systematic /pproach
*. :ontinuous and 3ngoing approach
2. -romoting learning as fundamental value
4. :reations of effective training evaluation system
I NDUCTI ON ' ORI ENTATI ON
<nduction and 3rientation are the procedure that a new employee has to go through in the organisation.
7very employee starting from the lower most, say, from peon to :73, need orientation course when they
oin the organisation. / new employee carries with him a lot of apprehension about place, ob, colleagues,
organisational culture, and so on. 3n the day of reporting, he needs to #now his officeEwor# place,
routine, amenities, functional and reporting channels, etc.
Definition
<t is a -lanned <ntroduction of employees to their obs, their co@wor#ers and the organization per se.!
Difference 6et&een 'nduction and Orientation
<nduction refers to formal training programs that an employee has to complete before he is put on ob.
Ai#e in Military, before a new recruit is sent to border, he is trained for a few months in 0rillE-arade,
physical fitness, weapon handling, etc. $his is called <nduction.

3rientation is the information given to the new employees to ma#e him aware of the comfort issues @
where the facilities are, what time lunch is, who are the people he would be wor#ing with and so forth.
3rientation conveys following information,
&. 3rganisation)s geographyElayout
'. 3rganisational set up >Structure?
(. 0aily ;or# Routine
*. 3rganization -rofile, History, 3bectives, -roducts and Services, etc
2. <ntroduction to colleaguesEimmediate superiors and subordinates.
4. <mportance of .obs to the organization
5. 0etailed 3rientation -resentation covering policies, wor# rules and employee benefits.
PURPOSE OF ORIENTATION
$he idea of 3rientation programme is to ma#e the new employees feel at home! in new environment.
/ny employee while oining a new organisation is anxious about the new set@up, new colleagues, his own
performance vis a vis other more experienced employees in the organisation, his wor# place, his exact
responsibilities, etc. / structured information and introduction system will ma#e his transitory period
short and reduce his anxiety "uic#ly. He will begin to perform to his potential "uic#ly.
T!PES OF ORIENTATION PROGRAMS
&. Foral or 'nforal: <n informal orientation, new employees are put on the obs and they are
expected to acclimatise themselves with the wor# and the organisation. <n contrast, in formal
orientation, an employee goes through a structured introduction programme.
'. 'ndividual or !ollective: /nother choice is to be made whether new employees are to be inducted
in group or individually.
(. Serial or Disjunctive: 3rientation becomes serial when the person relin"uishing the post hands over
the position to the new incumbent. <t becomes disunctive when the new employee occupies a
vacant position with no one to hand him over the position. He learns the prevalent practices and
history slowly from his subordinates and superiors on gradual basis.
*. 'nvestiture or Divestiture: $his is the final strategic choice which relates to decision regarding
allowing the new employees to affect the organisation with his identityEideasEfunctional methods
or as#ing him to modify his identity to merge with existing culture of the organisation. $his is
more applicable to high positions who may have been hired with a view to bring in their
experiences and methods of management to the organisation.
Ho& long s%ould t%e induction #rocess ta$e?
<t starts when the ob ad is written, continues through the selection process and is not complete until the
new team member is comfortable as a full contributor to the organizationQs goals.
$he first hour on day one is a critical component @ signing on, issuing #eys and passwords, explaining no
go zones, emergency procedures, meeting the people that you will interact with all have to be done
immediately. Bntil they are done the newcomer is on the payroll, but is not employed.
/fter that it is a matter of ust in time training @ expanding the content as new duties are underta#en.
+e only e#loy ne& #eo#le one at a tie ) %o& can &e induct t%e?
$here are some issues, which cannot wait @ they vary according to your situation. -erhaps a buddy system
on the ob may be the best way to deal with such situations. >$his is a system being followed by many BS
universities receiving lot of foreign students. / local student is given a foreign student as buddy to help in
all matters in the initial days.? 3ther subects may be incorporated with refresher training for current staff,
or handled as participant in an outside program. -erhaps some can wait until there are groups of people
who have started in the last few months.
$his may ta#e some creative thin#ing, but the answer is "uite simple @ until the new people are integrated,
they are less useful. $he mathematics of <nduction and orientation is often amazingly simple @ not
investing time and money to train costs more than training would.
MULTI S &I LLI NG
Definition
Multi@S#illing@ the ability of an employee to perform more than one function or the cross@training of an
employee in several disciplines or tas#s.
Multi@S#illing is training of an employee to be able to do more than one ob with e"ual dexterity.
Multi@S#illing is immensely beneficial to any organisation. /part from flexibility to redeploy man power
as per changing needs, it also #eeps the labour costs low. Many complex obs re"uire different s#ills to
accomplish though involvement of each s#ill may be for very short duration. $hus, in absence of multi@
s#illed wor#ers, the team becomes very large and there is inade"uate utilisation of team members. =ut, if
the team members are multi@s#illed, team size can be #ept small and thus the labour cost in minimised. <n
addition, often ob is accomplished much faster with better "uality as no time is lost in explaining the ob
re"uirements by one team member to another with attendant ris#s of misunderstanding and rewor#. =an#
tellers are examples of multi@s#illing. Result is much faster service.
<magine the state of extension counters of ban#s at school or college premises which are operated by ust
one or two employees. $hose one or two people perform all the functions which ta#e up to 5 @6 people in
bigger branches. 3pening the ban#, opening new account, attending "ueries, accepting deposits and
dispensing cash, verification of signatures, maintaining account boo#s and many other tas#s are done by
them. <f such multi@s#illing was not available with the ban#s, such branches would have become unviable.
7ven in the larger branches,
A9=A,-A?26 7B M48-1(SC1881,? (TA,?1;82 B2,2B1-6)
&. ;or# force is more flexible.
'. Smaller team size for complex tas#s re"uiring multiple s#ills.
(. +aster ob
*. Aabour cost economy
2. 7mployees can assume other tas#s when there is absenteeism.
4. 7mployees can be moved into other positions in case of overload of any department.
A9=A,-A?26 7B M48-1(SC1881,? (I,-A,?1;82 B2,2B1-6)
&. 7mployees become more aware of the wor#flow.
'. 7mployees are better prepared to anticipate problems or re"uirements of other areas.
(. / new employee at a ob may have new ideas to fine@tune that ob.
*. 7mployees overcome feelings of having a dead@end ob.
2. .obs remain interesting and challenging.
4. $edious tas#s can be spread around, decreasing turnover.
5. =oredom in the wor#place is reduced.
6. :ohesiveness is enhanced.
D16A9=A,-A?26 7B M48-1(SC1881,?
&. -ossible reduction in productivity during the training periodElonger training period.
'. <ncreased supervisory time is re"uired until the employee is up to speed.
(. :ompetence assessments may be more detailed than in traditional systems.
*. :hances of partial s#illing in various obs instead of fully s#illed in any one.
CHANGE MANAGEMENT
Change Management is a Critical HR Professional Skill
Definitions:
1. The adoption of a new idea or behaviour by an organization.
'. /lterations in -eople, Structure and $echnology
:hange has become inevitable due to, @
>a? $echnology
>b? :ompetition
>c? Crowing customer needs
>d? 7nvironment
>e? -olitics
HRs role in the change process is to help forecast future changes, develop systems and policies for
managing human capital before, during & after the change.
:hange can be classified as follows, @
Structural !%anges 1ec%nological !%anges Peo#le !%anges
/uthority
:oordination
:entralization
-rocesses
Methods
7"uipments
/ttitudes
7xpectations
=ehaviours
EXTERNAL FORCES OF CHANGE
&. Mar#etplace
'. Aabour mar#ets
(. 7conomic :hanges
*. $echnology
2. Aaws and Regulations
INTERNAL FORCES OF CHANGE
&. :orporate Strategies
'. ;or#place
(. $echnology and 7"uipments
*. 7mployee /ttitudes
CHANGE AGENTS (%HO CAN BRING ABOUT CHANGE*)
&. Managers
'. 7xternal :onsultants
(. Staff Specialists
PROCESS OF CHANGE
Lewins Three-Step Procedure of Change
&. Bnfreeze present level of behaviour
'. Movement from present to new
(. Refreezing process
Kotters Change Management Model
1. Unfreeze
2. Establish Sense of Urgency
3. Form Powerful Guiding Coalition
4. Create the Vision
5. Communicate the Vision
RESISTANCE:BARRIERS TO CHANGE
1. Fear of uncertainty or unknown
2. Fear of economic loss
3. Social pressures/peer pressure
4. Perceived inconveniences
5. Fear of loss of power
6. Need for new styles/skills/knowledge
7. Resistance from groups
8. Organisational culture
9. Feeling of insecurity
10. Lack of incentives
MANAGING CHANGE
<t involves, @
1. Strategic planning and alignment
2. Minimising resistance
3. Maximising acceptance
4. External environment assessment
5. Change of Organisational structure and culture
6. Developing work climate to enhance teamwork, trust and co-operation
7. Whole hearted implementation
TECHNIEUES OF REDUCING RESISTANCE
1. Education through communication
2. Participation of affected people from beginning rather than at the end. Making the potential
hardliners a member of the committee designing the change.
3. Facilitation through support to people to overcome the blues of change
4. Negotiation Give and take attitude
5. Manipulation co-option
6. Explicit or implicit coercion
Mixed strategies are used to overcome change
FOUR PHASES OF TRANSITION( OLD TO NE%
1. Denial
Diagnosis: Common to observe withdrawal; focusing on the past; increased activity
with reduced productivity.
Management: Confront with information; reinforce reality of change; explain what they
can do; give them time.
2. Resistance
Diagnosis: Anger, blame, depression, resentment, continued lack of productivity.
Management: Listen, acknowledge feelings, be empathetic; help people to say good by to
the old; sometimes ritual is important. Offer rewards for change, be
optimistic.
3. Exploration
Diagnosis: Confusion, chaos; energy; new ideas; lack of focus.
Management: Facilitate brainstorming, planning, help people to see opportunity, create
focus through short term wins.
4. Commitment
Diagnosis: Enthusiasm & cooperation; people identify with organization; look for new
challenges.
Management: Set long term goals; reward those who have changed.
ORGANI )ATI ONA L DE V E L OP ME N T TE CHNI EU E S
Survey +eedbac#
Sensitivity $raining
-rocess :onsultation
$eam =uilding
<nter@group 0evelopment
C7,91-17,6 FA3181-A-1,? CDA,?2
0ramatic :risis
Aeadership :hange
;ea# :ulture
Poung and Small 3rganization >ageing?
TD2 R7A9 -7 CDA,?2 1, C48-4.2
/nalyze the culture
Feed for change
Few leadership
Reorganize
Restructure
Few stories and rituals
:hange the ob systems
TEM V:S. REENGINEERING
$IM >$otal Iuality Management? Re engineering
:ontinuous :hange
+ixing and <mproving
Mostly focused on K/s@<s)
Systems indispensable
=ottom to $op
Radical and 3ne time :hange
Redesigning
Mostly focused on Kwhat can beD)
$op to =ottom
MA,A?1,? D7G,61H29 %7.CB7.32
3pen and honest communication
/ssistance to them
Help for survivors of the downsized
S-.266 1, %7.C>8A32
3pportunities stress
0emands stress
:onstraints stress
HO% TO REDUCE %OR&PLACE STRESS
=iggest source of stress is Bncertainty. Iuite often worst of the result is less painful than the anxiety
waiting for it. <f you can reduce uncertainty, stress will automatically reduce. However, reducing
uncertainty is not always possible. Some of these methods can be employed to reduce wor# place stress, @
&. 3rganizational communication, :lear and prompt communication of policies and decisions can
help in #eeping the stress within manageable limits.
'. -erformance /ssessment is another source of anxiety. :lear predefined performance parameters
will ta#e the uncertainty out of assessment and also anxiety.
(. .ob Redesign, especially when processes change, obs merging, and relocation happens
*. 7mployee :ounselling
2. $ime management programs for employees, <n the busy life of today, time management is
another source of stress for a lot of employees. $ime management programs will allow them to fill
in more events into their daily life and reduce stress.
%H! CHANGE MANAGEMENT*
:hange is the only constant in today)s world. /nd the rate of change is faster than ever. Pou can not
escape change. $he choice is @ Pou can bring the change yourself at your pace, place and time, or /llow it
to overcome you at its own choosing of time, place and pace. +ighting against change can slow it down or
divert it temporarily, but it wonQt stop. <f you wish to succeed in this rapidly changing new world Myou
must learn to loo# at change as a friend @ one who presents you with an opportunity for growth and
improvement.M 7arlier you change, higher the benefits. $hose who recognise the changing trends and
change simultaneously are successful. $hose who anticipateEforesee the impending change and prepare
according are the ones who are hugely successful. =ut those who lead the change are the ones who ma#e
the fortune.
$he rate of change in todayQs world is constantly increasing. Rate of obsolescence and therefore
replacement is increasing. Few, better, safer and cheaper products are entering the mar#et at constantly
decreasing interval. :hanges in technology is leading to changes in business models and customer
behaviour. $rue success and long@term prosperity in the new world depends on your ability to adapt to
different and constantly changing conditions.
=ut despite all this, basic human nature, that resists change, is still intact. /ny attempt to bring change is
fiercely resisted. /nd if the resistance is not well managed, it can be catastrophic for the organisation.
$herefore, change management assumes criticality.
EVOLUTIONAR! (PLANNED) CHANGE VERSUS REVOLUTIONAR!
(FORCED) CHANGES
How you change a business unit to adapt to shifting economy and mar#ets is a matter of management
style. 7volutionary change, that involves setting direction, allocating responsibilities, and establishing
reasonable timelines for achieving obectives, is relatively painless. However, it is rarely fast enough or
comprehensive enough to move ahead of the curve in an evolving world where sta#es are high, and the
response time is short. ;hen faced with mar#et@driven urgency, abrupt and sometimes disruptive change,
such as dramatic downsizing or reengineering, may be re"uired to #eep the company competitive. <n
situations when timing is critical to success, and companies must get more efficient and productive
rapidly, revolutionary change is demanded.
;hen choosing between evolutionary change and revolutionary action, a leader must pursue a balanced
and pragmatic approach. Swinging too far to revolutionary extreme may create Man organizational culture
that is so impatient, and so focused on change, that it fails to give new initiatives and new personnel time
to ta#e root, stabilize, and grow. ;hatQs more, it creates a high@tension environment that intimidates rather
than nurtures people, leaving them with little or no emotional investment in the company.M
CREATING CHANGE FOR IMPROVEMENT AND COMPETITIVE
ADVANTAGE
:hange creates opportunities, but only for those who recognize and seize it. MSeeing is the first step,
seizing the second, and continuously innovating is the third.M <nnovation redefines growth opportunities.
/s 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 Silicon Lalley slogan
M7at lunch and you are lunchM is more than a reflection of increasingly intense wor# ethic. Riding the
wave of change is becoming the most important part of the business. ;hile the economy is shifting and
innovation is rampant, Mdoing it the same wayM is a recipe for corporate extinction.
&
Successful change efforts are those where the choices both are internally consistent and fit #ey external
and situational variables. MPou have to find subtle ways to introduce change, new concepts, and give
feedbac# to people so that they can accept and grow with it.M
PERFORMANCE APPRAI S ALS
%HAT IS PERFORMANCE APPRAISAL*
-erformance /ppraisals is the assessment of individual)s performance in a systematic way. <t is a
developmental tool used for all round development of the employee and the organization. $he
performance is measured against a number of factors. $hese factors can be divided into two groups.
>a? G2,2.A8 >2.67,A81-/ such as initiative, leadership "ualities, dependability, team spirit, etc.
>b? P.7B26617,A8 I4A81-126 li#e ob #nowledge, "uality and "uantity of output, versatility and
so on.
+actors vary from organization to organization and ob to ob. +or a soldier, courage and endurance are
more important factors. =ut for the /rmy Ceneral, his tactical abilities are more important. 3n the other
side, a foreman in a factory would never be assessed for his courage. /ssessment is often not confined to
past performance but chec#s for potential performance also. $he second definition brings in focus
behaviour because behaviour affects not only employee)s performance but even his peers) and
subordinates).

Definition 1+ <t is a systematic evaluation of an individual with respect to present performance on the ob
and his potential.!
Definition 2: <t is formal, structured system of measuringEevaluating ob related behaviours and
outcomes to discover how an employee has performed on the ob and how he can perform more
effectively in future so that employee, organization and society, all benefits.!
PERFORMANCE APPRAISALS AND JOB ANAL!SIS RELATIONSHIP
J7; A,A8/616 P2.B7.5A,32 S-A,9A.9 P2.B7.5A,32 A>>.A16A8
0escribes the wor# and
personnel re"uirement of a
particular ob
$ranslate ob re"uirements
into levels of acceptable or
unacceptable performance
0escribe the individual)s
past performance, suitability
and potential.
Objectives: -erformance appraisals are used as a basis for following activities, @
&. -romotions
'. :onfirmations
(. $raining and 0evelopment program planning
*. :ompensation reviews
2. :ompetency building
4. 7valuation of HR -rograms
5. +eedbac# 1 Crievances
PERFORMANCE APPRAISAL PROCESS
&. Setting 3bectives and Standards of performance
'. 0esign an appropriate appraisal program % /ppraisal program for different levels of employees would
be different.
(. -erformance <nterviews
*. /ppraise and record the performance
2. Bse and store data for appropriate purposes
4. <dentify opportunities variables
TECHNIEUES : METHODS OF PERFORMANCE APPRAISALS
Fumerous methods have been devised to measure the "uantity and "uality of performance appraisals.
7ach of the methods is effective for a particular class of employees in certain types of organization only.
=roadly all methods of appraisals can be divided into two different categories.
-ast 3riented Methods
+uture 3riented Methods
PAST ORIENTED METHODS
&. RA-1,? S3A826+ $his is simplest and most popular method. Rating scales consist of grading an
employee)s past performance on a scale of say & @&9. 7ach of the selected performance attribute is
numerically mar#ed and then totalled to arrive at the final figure. /dvantages % /daptability, easy to use,
low cost, every type of ob can be evaluated, large number of employees covered, no formal training
re"uired. 0isadvantages % Rater)s biases.
'. CD23C816-+ Bnder this method, chec#list of Statements of $raits! of employee in the form of Pes or
Fo based "uestions is prepared. Here, the rater only does the reporting or chec#ing and HR department
does the actual evaluation. /dvantages % economy, ease of administration, limited training re"uired,
standardization. 0isadvantages % Rater)s biases, use of improper weights by HR 0eptt, does not allow
rater to give relative ratings.
(. F7.329 CD7132 M2-D79+ / series of statements arranged in the bloc#s of two or more are given and
the rater indicates which statement is true or false. $he rater is forced to ma#e a choice. HR department
does actual assessment. /dvantages % /bsence of personal biases because of forced choice.
0isadvantages % Statements may not be correctly framed.
*. F7.329 D16-.1;4-17, M2-D79+ 3ne of the problems faced in large organizations is relative
assessment tendencies of raters. Some are too lenient and others too severe. $his method overcomes that
problem. <t forces every one to do a comparative rating of all the employees on a predetermined
distribution pattern of good to bad. Say &9O employees in 7xcellent Crade, '9O in Cood Crade, *9O in
/verage Crade, '9O in =elow /verage Crade and &9O in Bnsat grade. $he real problem of this method
occurs in organizations where there is a tendency to pac# certain #ey departments with all good
employees and some other departments with discards and laggards. Relatively good employees of #ey
departments get poor rating and relatively poor employees of laggards) departments get good rating.
&9O '9O *9O '9O &9O
Bnsat =elow /vg /verage Cood 7xcellent
2. C.1-13A8 I,3192,-6 M2-D79+ <t ta#es cognisance of abnormal incidences only, good or bad.
Supervisors record such incidents as and when they occur. /dvantages % 7valuations are based on actual
ob behaviours. Ratings are supported by descriptions, thus favouritism is beaten. +eedbac# is easy and
reduces recency biases. 0isadvantages % Fegative incidents may get priority or incidences could be
forgotten.
4. F1289 R2=12G M2-D79+ $his method is useful only for senior positions in a large organisation
spread over cities and countries. /ppraisal is done by someone outside employees) own department
usually from corporate or HR department. /dvantages % Bseful for managerial level promotions, when
comparable information is needed, on employees wor#ing at distant locations in different set of
conditions. 0isadvantages % 3utsider is generally not familiar with employees) wor# environment,
3bservation of actual behaviours not possible.
5. P2.B7.5A,32 T26-6 ' O;62.=A-17,6+ $his is based on the test of #nowledge or s#ills. $he tests
may be written or an actual presentation of s#ills. $ests must be reliable and validated to be useful.
/dvantage % $ests only measure potential and not attitude. /ctual performance is more a function of
attitude of person than potential. 0isadvantages % Some times costs of test development or administration
are high.
6. C7,B192,-1A8 R2>7.-6+ $hough popular with government departments, its application in industry is
not ruled out. Here the report is given in the form of /nnual :onfidentiality Report >/:R?. $he system is
highly secretive and confidential. +eedbac# to the assessee is given only in case of an adverse entry.
0isadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because
the evaluations are lin#ed to future rewards li#e promotions, good postings, etc.
8. E66A/ M2-D79+ <n this method the rater writes down the employee description in the form of an
essay. /dvantage % <t is extremely useful in filing information gaps about the employees that often occur
in a better@structured chec#list. 0isadvantages % <t its highly dependent upon the writing s#ills of rater and
most of them are not good writers. Moreover, it is also time consuming and therefore affects full
assessment. /lso, comparative or relative performance among employees is not clearly demarcated.

&9. C76- A3374,-1,? M2-D79+ Here performance is evaluated from the monetary returns yield 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.
&&. C75>A.A-1=2 E=A84A-17, M2-D79 (RA,C1,? ' PA1.29 C75>A.167,6)+ $hese are collection of
different methods that compare performance with that of other co@wor#ers. $he usual techni"ues used
may be ran#ing methods and paired comparison method.
Ran$ing "et%od: Superior ran#s his wor#er based on merit, from best to worst. However
how best and why best are not elaborated in this method. <t is easy to administer.

Paired !o#arison "et%od: <n this method each employee is paired with every other
employee in the same cadre and then comparative rating done in pairs so formed. $he number of
comparisons may be calculated with the help of a formula % F x >F@&? E '. $he method is too
tedious for large departments and often such exact details are not available with rater.
FUTURE ORIENTED METHODS
&. MA,A?252,- B/ O;<23-1=26 (MBO)+ P2.B7.5A,32 16 .A-29 A?A1,6- -D2 A3D12=252,- 7B
obectives mutually agreed by the employee and the management. /dvantage % <t is direct and
accurate and transparent.
0isadvantages % /pplicable only to "uantifiable obs. Short@term goals given preference at the cost of
long@term goals etc.
'. P6/3D787?13A8 A>>.A16A86+ $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 interviews, psychological
tests, and discussion with supervisors and review of other evaluations. <t is more focused on employees
emotional, intellectual, and motivational and other personal characteristics affecting his performance. $his
approach is slow and costly and may be useful for bright young members who may have considerable
potential. However "uality of these appraisals largely depends upon the s#ills of psychologists who
perform the evaluation.

(. A6626652,- C2,-.26+ $his techni"ue was first developed in BS/ and BG in &8*(. /n
assessment centre is a central location where managers may come together to have their participation in
ob related exercises evaluated by trained observers. <t is more focused on observation of behaviours
across a series of select exercises or wor# samples. /ssessees are re"uested to participate in in@bas#et
exercises, wor# groups, computer simulations, role playing and other similar activities which re"uire same
attributes for successful performance in actual ob.
D16A9=A,-A?26 % :oncentrates on future performance potential. Fo assessment of past performance.
:osts of employees travelling and lodging, psychologists. Ratings strongly influenced by assessee)s inter@
personal s#ills. Solid performers may feel suffocated in simulated situations.
A9=A,-A?26 % ;ell@conducted assessment centre can achieve better forecasts of future performance and
progress than other methods of appraisals. /lso reliability, content validity and predictive ability are said
to be high in /ssessment :entres. $he tests also ma#e sure that the wrong people are not hired or
promoted. +inally, it clearly defines the criteria for selection and promotion.
*. 3"(D2?.22 F229;A3C+ <t is a techni"ue in which performance dataEfeedbac#Erating is collected
from all sections of people employee interacts in the course of his ob li#e immediate supervisors, team
members, customers, peers, subordinates and self with different weightage to each group of raters. $his
techni"ue has been found to be extremely useful and effective. <t is especially useful to measure inter@
personal s#ills, customer satisfaction and team building s#ills. 3ne of the biggest advantage of this system
is that assesssees can not afford to neglect any constituency and has to show all@round performance.
However, on the negative side, receiving feedbac# from multiple sources can be intimidating, threatening,
expensive and time consuming.
-urpose of performance evaluation is to ma#e sure that employee)s goals, employees behaviour and
feedbac# about performance are all lin#ed to the corporate strategy.
ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL S!STEM+
&. Standardized -erformance /ppraisal System
'. 0efined performance standards % =ench Mar#s
(. Bniformity of appraisals
*. $rained Raters
2. Bse of relevant rating tools or methods
4. Should be based on ob analysis
5. Bse of obectively verifiable data
6. /void rating problems li#e halo effect, central tendency, leniency, severity etc.
8. :onsistent 0ocumentations maintained
&9. Fo room for discrimination based on cast, creed, race, religion, region etc.
Probles of Rating:
&. Aeniency 1 Severity % 7ither too lenient or too severe. /ll good or all bad.
'. :entral $endency % Maority is crowded around average.
(. HaloECholem 7ffect % 7ntire assessment is affected by one or few aspects.
*. Rater 7ffect % +avouritism, stereotyping, hostility, etc, #ind of biases.
2. -rimacy 1 Recency 7ffect % 7arly period or near end period behaviour effects.
4. -erceptual Sets % 7ffects of old beliefs about groups, regions, groups, etc
5. Spill@over 7ffects % 7ffects of previous appraisal affecting recent appraisal
6. Status 7ffect % High esteemed or low esteemed ob bearing on the appraisal.
HUMAN RES OURCE AUDI T
NATURE OF HR AUDIT
HR /udit 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 shows how well 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
how these activities support organization)s strategy.
BASIS OF HR AUDIT(PERSONNEL RESEARCH)
&. ;age Surveys
'. Recruitment Sources effectiveness
(. $raining efforts effectiveness
*. Supervisor)s effectiveness
2. <ndustrial dispute settlements
4. .ob /nalysis
5. .ob Satisfaction Survey
6. 7mployee needs survey
8. /ttitude Surveys
&9. /ccident fre"uency surveys
BENEFITS OF HR AUDIT
&. /ssessment of contributions of HR department
'. <mprovement of professional image of HR department
(. 7ncouragement of greater responsibility and professionalism among HR members
*. :larification of HR duties and responsibilities
2. Stimulation of uniformity of HR policies and practices
4. +inding critical personnel problems
5. 7nsuring timely compliance with legal re"uirements
6. Reduction of HR costs through more effective personnel procedures
8. :reation of increased acceptance of changes in HR department
&9. / thorough review of HR information systems
SCOPE AND T!PES OF HR AUDIT
HR /udit must cover the activities of the department and even extend beyond because the people
problems are not confined to HR department alone. =ased on this, HR audit can be spread across
following four different categories.
&. Human Resource +unction /udit
'. Managerial :ompliance /udit
(. Human Resource :limate /udit
>a? 7mployee $urnover
>b? /bsenteeism
>c? /ccidents
>d? /ttitude Surveys
*. HR @ :orporate Strategy /udit
APPROACHES TO HR AUDIT
&. :omparative /pproach >=enchmar#ing with another company?
'. 7xternal /uthority /pproach >3utside consultants) standards?
(. Statistical /pproach >Statistical measures and tools?
*. :ompliance /pproach >Aegal and company policies?
2. Management =y 3bectives /pproach >Coals 1 3bectives based?
MOTI VATI ON THEORI ES
-erformance is a function of ability and motivation. - N f >/ x M?
Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.
MOTIVATION PROCESS ( STEPS)
&. <dentify <ndividual)s Feeds
'. Search for ways to satisfy needs
(. Coal 1 3bectives directed
*. <ncreased performance
2. Receiving rewards or punishment
4. Reassessment of needs
CRITICALIT! OF MOTIVATION TO MANAGERS
Manager is responsible for improving the productivity of his subordinates and ensuring that his they
contribute towards the obective and mission of the organisation. <t is only possible when employees
perform at their maximum efficiency level. Motivation is a tool to achieve high level of performance
from employees. 0epending upon the direction, motivation can achieve one or more of the obectives
below, @
&. Motivation improves productivity.
'. Motivation stimulates both participation and production at wor#
(. Motivation helps employees find new ways of doing a ob
*. Motivation ma#es employees "uality conscious
2. Motivation improves ob related behaviour.
4. Motivation increases attention towards human resources along with physical resources
CHALLENGES OF MOTIVATION
&. 0iverse and changing wor#force
'. Rightsizing, 0ownsizing, Hire@n@+ire, -ay@for@-erformance strategies
(. Motives can only be inferred, not seen
*. 0ynamic nature of human needs
T HE ORI E S OF MOT I VATI ON
EARL! THEORIES
Scientific "anageent 3F2+2 1aylor4: Motivation by scientific management is associated with +.;.
$aylor)s techni"ues of scientific management. $aylor said that people are primarily motivated by
economic rewards and will ta#e direction if offered an opportunity to improve their economic positions.
=ased on this $aylor described following arguments
-hysical wor# could be scientifically studied to determine optimal method of doing of a ob.
;or#ers can be made more efficient by telling them how they were to do a ob.
;or#ers would accept the above prescription if paid on differentiated piecewor# basis.
0isadvantages % 0ehumanized wor#ers, treated them as mere factors of production, only stressed
on monetary needs, ignored human needs.
Huan Relations "odel 3,lton "ayo4: 7lton Mayo)s human relations model, developed through
Hawthorne Studies, stressed on social contacts as motivational factor. Creater importance was given to
informal groups. However, too much reliance on social contacts to improve productivity was a maor
drawbac#.
CONTEMPORAR! THEORIES
C7,-2,- TD27.126 >Maslow)s Feed Hierarchy, Hertzberg)s '@factors, /lderfer)s 7RC, /chievement
Motivation $heory?
P.73266 TD27.126 >Lroom)s expectancy, /dam)s 7"uity, -orter)s -erformance and Satisfaction Model?
R21,B7.3252,- CA-2?7.126 (ERG TD27./ (A892.B2.) E016-2,32 ( R28A-29,266 ( G.7G-D)
7RC theory emphasizes more on three broad needs that is 7xistence, Relatedness and Crowth. <ts
hypothesis is that there may be more than one need operating at the same time. 7RC theory further states
that when a higher level need is frustrating, the individual)s desire to increase lower level needs ta#es
place. $hus, 7RC theory contains frustration@regression dimension. +rustration at higher level need may
lead to regression at lower level need.
A9=A,-A?26 % More consistent with our #nowledge of differences among people, it is less restrictive and
limiting, it is a valid version of need hierarchy.
D16A9=A,-A?26 % Fo clear@cut guideline of individual behaviour patterns, too early to pass a udgment on
the overall validity of the theory.
TG7(FA3-7. TD27./ (H2.-H;2.?)
+redric# Hertzberg states that the motivation concept is generally driven by two factors of motivators of
ob satisfactions and hygiene factors about ob dissatisfaction. Motivators are generally achievement,
recognition, the wor# itself, responsibility, advancement and growth, which are related to ob satisfaction.
Hygiene factors deal with external factors li#e company policy, supervision, administration and wor#ing
conditions, salary, status, security and interpersonal relations. $hese factors are #nown as hygiene factors
or ob dissatisfiers, ob context factors.
A9=A,-A?26 % $remendous impact on stimulating thought on motivation at wor#, increased understanding
of role of motivation, specific attention to improve motivational levels, ob design techni"ue of ob
enrichment is contribution of Hertzberg, double dimensions of two factors are easy to interpret and
understand.
D16A9=A,-A?26 % Aimited by its methodology, reliability "uestioned, it focuses more on ob satisfaction
not on motivation, no overall measure of satisfaction utilized, inconsistent with previous research,
productivity factor ignored.
MORALE
Definition 1:
Morale is a mental condition or attitude of individual and groups, which determines their willingness to
co@operate.
Definition 2:
Morale is attitudes of individuals and groups towards their wor# environment and towards voluntary
cooperation to the full extent of their ability in the best possible interest of the organization.
Morale can be said to be a combination of satisfaction, happiness and enthusiasm.
0istinction between Morale and Motivation, @
M7.A82 M7-1=A-17,
&. :omposite of feelings, attitudes and
sentiments that contribute towards general
satisfaction at wor#place.
'. / +unction of freedom or restraint towards
some goal.
(. <t mobilizes sentiments.
*. Morale reflects Motivation.
&. Motivation moves person to action.
'. / -rocess of stimulating individuals into
action to accomplish desired goals.
(. / +unction of drives and needs.
*. <t mobilizes energy.
2. Motivation is a potential to develop morale.

PERS ONNEL POLI CI ES
MEANING OF PERSONNEL POLIC!
/ -olicy is a -lan of /ction. <t is a statement of intentions committing the management to a general
course of action. / -olicy may contain philosophy and principles as well. However a policy statement is
more specific and commits the management to a definite course of action.
Hence -ersonnel policy is the company)s plan of action towards treatment of its employees in matters of
pay, benefits, welfare, wor#, etc. / personnel policy spells out basic needs of the employees. $hrough
personnel policy the personnel department ensure a fair and consistent treatment to all personnel by
minimizing favouritism and discrimination. -ersonnel policy serves as a standard of treatment to all
employees. Sound personnel policies help build employee motivation and loyalty. /nd this happens when
personnel policies reflect fair play and ustice and help people grow within the organization. -ersonnel
policies are also plans of action to resolve intra@personal, inter@personal and inter@group conflicts.
IMPORTANCE OF PERSONNEL POLIC!
-ersonnel policy is very important for an organization since it gives several benefits for managing the
human resources effectively. Aisted below are some of the benefits,
&. C7,616-2,- T.2A-52,-+ -ersonnel policies ensure consistent treatment of all personnel
throughout the organization.
'. FA1. P8A/ ' J46-132+ -ersonnel policies reflect established principles of fair play and ustice.
(. M1,151H2 FA=74.1-165+ -ersonnel policies help minimize favouritism and discrimination
*. P.757-2 S-A;181-/, -ersonnel policies ensure continuity of action plan even if top management
is changed. $hese policies promote stability.
2. M7-1=A-17, ' L7/A8-/+ Sound -ersonnel policies help build employee motivation and loyalty.
4. BA613 N2296+ -ersonnel policy helps the management to thin# deeply about basic needs of
organization and the employees.
5. S-A,9A.9 7B P2.B7.5A,32+ -ersonnel policies serve as a standard of performance.
6. G.7G-D+ -ersonnel policies help people grow within the organization.
%OR&ERSJ PARTICIPATION IN MANAGEMENT
=roadly, wor#er)s participation in management means associating representatives of wor#ers at every
stage of decision@ma#ing. -articipative management is considered as a process by which the wor#er)s
share in decision@ma#ing extends beyond the decisions that are implicit in the specific content of the obs
they do. $his amounts to the wor#ers having a share in final managerial decisions in an enterprise.
SCOPE OF %OR&ERSJ PARTICIPATION
Scope of wor#ers participation ranges over three managerial decision@ma#ing stages.
&. Social Decisions: Hours of wor#, welfare measures, wor# rules, safety, health, sanitation and
noise control.
'. Personnel Decisions: Recruitment and selection, promotions and transfers, grievance settlements,
wor# distribution
(. ,conoic Decisions: Methods of manufacturing, automation, lay offs, shut@downs, mergers and
ac"uisitions and other financial aspects.
METHODS OF %OR&ERSJ PARTICIPATION IN MANAGEMENT
&. =oard Aevel
'. 3wnership >share allocation?
(. :omplete :ontrol
*. Staff :ouncils
2. .oint :ouncils
4. :ollective =argaining
5. .ob 7nlargement and 7nrichment
6. Suggestion Schemes
8. Iuality :ircles
&9. 7mpowered $eams
&&. $otal Iuality Management
&'. +inancial -articipation
BENEFITS OF PARTICIPATION
&. Cives identity to an employee
'. Motivates employee
(. Self@esteem, ob satisfaction and cooperation improves
*. Reduced conflicts and stress between Management and wor#ers
2. More commitment to goals
4. Aess resistance to change
5. Aess labour problems
6. =etter "uality suggestions expected
UNI ONS
7mployee associations are popularly #nown as unions. /lthough they have become synonymous with
stri#es and unreasonable demands, their role is much wider than this. Bnions ma#e their presence felt in
recruitment and selection, promotions, training, termination or lay off. Many programs, which contribute
to the Iuality of ;or# Aife >I;A? and productivity, are underta#en by management in consultation with
and with the cooperation of the unions. Bnions also participate in deciding wage and salary structure and
negotiate revisions once in ( or 2 years.
$rade unions are voluntary organizations of wor#ers or employers formed to promote their interests
through collective action. $rade unions /ct &8'4 defines a trade union as a combination, whether
temporary or permanent formed primarily for the purpose of regulating the relation between
&. ;or#men and 7mployers
'. ;or#men and ;or#men
(. 7mployers and 7mployers
+or imposing restrictive conditions on the conduct of any trade or business and includes any federation of
two or more trade unions
%H! DO EMPLO!EES JOIN TRADE UNIONS*
&. $o protect themselves against exploitation by management
'. =y force
(. 0issatisfaction
*. Aac# of -ower
2. Bnion <nstrumentality
ROLE OF CONSTRUCTIVE AND POSITIVE UNION
Bnions have a crucial role to play in <ndustrial Relations. Bnions have following broad role or obectives
as mentioned below.
&. $o redress the genuine grievances of individual wor#er vis@R@vis the individual employer, by
substituting oint or collective action for individual action.
'. $o secure improved terms and conditions of employment for its members and the maximum
degree of security to enoy these terms and conditions.
(. $o obtain improved status for the wor#er in his wor# or her wor#
*. $o increase the extent to which unions can exercise democratic control over decisions, which
affect their interests by power sharing at the national, corporate and plant levels.
$he union power is exerted primarily at two levels. <ndustry level to establish oint regulation on basic
wages and hours with an employer)s association. -lant level, where the shop stewards organizations
exercise oint control over some aspects of the organization of wor# and localized terms and conditions of
employment.
Bnions are party to national, local and plant level agreements, which govern their actions to a greater or
lesser extent, depending on their power and on local circumstances.
UNFAIR LABOR PRACTICES
<ndustrial 0isputes /ct, &8*5, specifies the following as unfair labour practices,
&. $o interfere, restrain, coerce wor#men in the exercise of their right to organize, form, oin or assist
a trade union.
'. $hreatening wor#men with discharge or dismissal
(. $hreatening of loc#out or closure
*. Cranting wage increases to undermine trade union efforts
2. $o dominate, interfere with or support financially or socially by ta#ing active interest in forming
own trade union, and
4. Showing partiality or granting favours to one of several trade unions
5. $o establish employer sponsored trade unions
6. $o encourage or discourage memberships in any trade union by discriminating wor#man by
punishing or discharging, changing seniority ratings, refusing promotions, giving unmerited
promotions, discharging union office bearers
8. $o discharge or dismiss wor#men by victimizing, not in good faith, implicating in criminal case
for patently false reasons.
&9. $o abolish wor# of a regular nature
&&. $o transfer wor#men
&'. $o show favouritism or partiality
&(. $o replace wor#ers
&*. $o recruit wor#men during legal stri#es
&2. $o indulge in acts of violence or force
&4. $o refuse collective bargaining
&5. -roposing and continuing loc#outs
ORGANI )ATI ONAL DO%NS I )I NG
0ownsizing necessarily means reducing wor# 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 following method used to downsize the
wor#force as mentioned below.
RETRENCHMENT
<t means termination of service. <t is a termination for reasons other than disciplinary actions, retirement
or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation
and notice for retrenchment are only pre@conditions for retrenchment. <f notice and compensation are not
given, the wor#er will not be called as retrenched. :ompensation is payable for &2 days wages for every
completed year of service besides one month)s notice or pay in lieu of notice. =ut employee should have
completed at least one year of complete service in order to receive compensation.
LA! OFFS
Aay off is inability of the employer to provide employment to wor#ers due to circumstances beyond his
control such as shortage of power, coal, brea#down of machinery, natural calamity etc. <t is not a
termination of service. Aay off compensation can be claimed as a statutory right by the wor#er if he has
completed one year of continuous service or has wor#ed for '*9 days on the surface or &89 days
underground in &' calendar months. :ompensation payable is half of the wages.
VOLUNTAR! RETIREMENT SCHEMES
LRS are announced when there is a huge pool of old aged manpower occupying senior positions
amounting to surplus. Many organizations are providing liberal incentives to leave before age of
superannuation. LRS in other words is a retirement before the age of retirement.