Third Semester

BBA LLB Paper Code: BBA LLB215

Paper: Human Resource Management

Objectives
The objective of the course is to familiarize students with the different aspects of managing Human
Resources in the organization through the phases of acquisition, development and retention.
Unit-I: Introduction (Lectures-10)
a. Concept, Nature, Scope, Objectives and Importance of HRM
b. Evolution of HRM
c. HRM Policies, Challenges of HRM
d. Personnel Management vs HRM
e. Traditional HRM vs Strategic HRM
f. New Trends in HRM
Unit-II: Human Resource Planning (Lectures-10)
a. Job Analysis: Job Description and Job Specification
b. Job Design, Job Simplification, Job Rotation, Job Enlargement, Job Enrichment
c. Recruitment: Sources and Process
d. Selection Process: Tests and Interviews
e. Placement and Induction
f. Job Changes: Transfers, Promotions/Demotions, Separations
Unit-III: Training and Development (Lectures-10)
a. Concept and Importance of Training
b. Types of Training
c. Methods of Training
d. Design of Training Programme
e. Evaluation of Training Effectiveness
f. Executive Development: Process and Techniques
g. Career Planning and Development
h. Performance and Potential Appraisal: Concept and Objectives, Traditional and
Modern methods, limitations of performance appraisal methods, Introduction to
Performance Management, 360 degree Appraisal, MBO
Unit-IV: Compensation and Maintenance (Lectures-10)
a. Compensation:
i. Job Evaluation: Concept, Process and Significance;
ii. Components of Employee Remuneration: Base and Supplementary
b. Maintenance:
i. Overview of Employee Welfare, Health and Safety, Social Security,
Grievance Redressal Procedure, Employee Participation, Flexi time, ESOPs
PSDA (Professional Skill Development Activities) 3 Hrs/Week
Case Studies on different topics, Brainstorming on New Trends
Case Studies on different topics, Exercises on Human Resource Planning, Job
Analysis, Advertisement Design for Recruitment, Role Play on Selection, Mock
Interview
Case Discussions, Exercises related to Training and Performance, Role Plays,
Brainstorming
Case Discussions, Exercises related to Compensation Design, Job Evaluation,
Brainstorming on Employee Welfare
 Unit-I: Introduction
Human Resource Management: Concept and Definition
Human Resource Management has come to be recognized as an inherent part of management,
which is concerned with the human resources of an organization. Its objective is the maintenance
of better human relations in the organization by the development, application and evaluation of
policies, procedures and programmes relating to human resources to optimize their contribution
towards the realization of organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of people. It
is an integral but distinctive part of management, concerned with people at work and their
relationships within the enterprise. HRM helps in attaining maximum individual development,
desirable working relationship between employees and employers, employees and employees,
and effective modeling of human resources as contrasted with physical resources. It is the
recruitment, selection, development, utilization, compensation and motivation of human
resources by the organization.

Nature

Human Resource Management is a process of bringing people and organizations together so that
the goals of each are met. The various features of HRM include:

•It is pervasive in nature as it is present in all enterprises.

•Its focus is on results rather than on rules.

•It tries to help employees develop their potential fully.

•It encourages employees to give their best to the organization.

•It is all about people at work, both as individuals and groups.

•It tries to put people on assigned jobs in order to produce good results.

•It helps an organization meet its goals in the future by providing for competent and well-
motivated employees.
• It tries to build and maintain cordial relations between people working at various levels in the
organization.

• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology,

economics, etc.

Human Resource Management: Scope

The scope of HRM is very wide:

1. Personnel aspect - This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.

2. Welfare aspect-It deals with working conditions and amenities such as canteens, crèches, rest
and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation
facilities, etc.

3. Industrial relations aspect-This covers union-management relations, joint consultation,

collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

FEATURE OF HUMAN RESOURCE MANAGEMENT

1) Part of Management - Human resource management is an integral part of the management

process. It is inherent in all organizations because people comprise an essential part in every
organization.

2) Pervasive Function -Human resource management is a function that is performed by all

managers at all levels of the organization. It is an essential part of the job of every manager.
Every manager has to deal with his subordinates to get things done. Therefore, human resource
management is required in all functional areas such as finance, marketing, production etc
3) Concerned with people - Human Resource management is concerned with people at work and
their relationships. It deals with employees as individual and as groups.

4) Wide Scope -The scope of human resource management is very wide. It includes a broad
spectrum of activities like recruitment, selection, placement, training, transfer, promotion,
appraisal and compensation of employees.

Human Resource Management: Objectives

•To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings. To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee's job satisfaction and self-actualization.

• To develop and maintain a quality of work

Importance of Human Resource Management

The main purpose of human resource management is to accomplish the organizational

goals. Therefore, the resources are mobilized to achieve such goals. Some importance and
objectives of human resource management are as follows:

1. Effective Utilization of Resources

Human resource management ensures the effective utilization of resources. HRM teaches how to
utilize human and non-human resources so that the goals can be achieved. Organization aiming
to utilize their resources efficiently invites the HR department to formulate required objectives
and policies.

2. Organizational Structure
Organizational structure defines the working relationship between employees and management.
It defines and assigns the task for each employee working in the organization. The task is to be
performed within the given constraints. It also defines positions, rights and duties, accountability
and responsibility, and other working relationships. The human resource management system
provides required information to timely and accurately. Hence, human resource management
helps to maintain organizational structure.

3. Development of Human Resources

Human resource management provides favorable environment for employees so that people
working in organization can work creatively. This ultimately helps them to develop their creative
knowledge, ability and skill. To develop personality of employees, human resource management
organizes training and development campaigns which provide an opportunity for employees to
enhance their caliber to work.

4. Respect for Human Beings

Another importance of human resource management is to provide a respectful environment for
each employee. Human resource management provides with required means and facilitates
employee along with an appropriate respect because the dominating tendency develops that will
result organizational crisis. Hence, all of them should get proper respect at work. Human
resource management focuses on developing good working relationships among workers and
managers in organization. So, good human resource management system helps for respecting the
employees.

5. Goal Harmony
Human resource management bridges the gap between individual goal and organizational goal-
thereby resulting into a good harmony. If goal difference occurs, the employees will not be
willing to perform well. Hence, a proper match between individual goal and organizational goal
should be there in order to utilize organizational resources effectively and efficiently.

6. Employee Satisfaction
Human resource management provides a series of facilities and opportunities to employees for
their career development. This leads to job satisfaction and commitment. When the employees
are provided with every kind of facilities and opportunities, they will be satisfied with their work
performance.

7. Employee Discipline and Moral

Human resource management tries to promote employee discipline and moral through
performance based incentives. It creates a healthy and friendly working environment through
appropriate work design and assignment of jobs.

8. Organizational Productivity
Human resource management focuses on achieving higher production and most effective
utilization of available resources. This leads to an enhancement in organizational goals and
objectives.
Evolution:

Human Resource management is considered as one of the crucial task of any organization in
today’s competitive environment. But the history about how this concept of HRM is evolved or
gained its importance is very interesting. Let us discuss the evolution of HRM here.

In starting of 19th century there was a boom in industrialization which influences the need of
personal management. But there was no separate department to take care of labour problems
except welfare officers that too who care about women & children only.

1914-39

During the 1st world was there was a expected growth for Personnel Management. The welfare
officers were increased. During this period the women were recruited in large numbers as most
of the men were joint the militaries

The first phase of labour management came in 1920 in factories to handle absenteeism etc

In mid of 1920’s to 1930’s there were employer who care their employees well being by
themselves e.g. Tata steel in Jamshedpur.

In between 2nd world war the personnel management faced an improving stage because the
government has to produce large war material then personnel department worked in full time
basis.

After independence the Role of Personnel management becomes inevitable in Industries it played
functions like Collective Bargaining, Industrial Relations, and HR Policies etc

In 1930’s the HRM started due to various reason like

1. View Point about doing works

2. Legislative frame work

3. Government policies

4. Trade unions.

5. Concepts in management

6. Change in economy

In 1990 government of various countries liberalized their policy due to which the human started
moving from one nation to another. So the need for HRM evolved as cross culture took place.
Due to this the recruitment becomes more specific were in selection is based on talent regardless
of nationality.

Evolution of HRM in India

The Evolution of human resource management in India can be summarized as

Period Development Status Emphasis on Status

1920 –
Beginning Statutory Welfare Clerical
1930
1940 – Struggling for
Introduction of Techniques Administrative
1960 recognition
1970 – Regulatory Conforming Imposition of std on
Achieving Superiority Managerial
1980 other functions
1990s Promising Human Values Executive

Apart from this it could be said that HRM had to cross various phases before reaching to this
responsible position like Industrial Revolution Era – Scientific Management Era – Paternalistic
Era – Industrial Psychology Era –Human Relations Era – Behavioural Science Era –Personnel
Specialists Era –Welfare Era etc.
There are many people in the field of management who were contributed to the development of
HRM by the various researches conducted by them or theory proposed by them to name few FW
Taylor, Robert Owen , Hugo Munsterberg , Maslow, Herzberg, Elton Mayo etc.

HRM Policies

Human resource management policies are vital for organizations that are serious about resolving
personnel issues and finding hr solutions. HRM policies are intended to help maximize the
effectiveness of your Human Resources function.
• HR should ensure that HRM policy you have consistent, well-written & legal policies and
procedures.
• HRM policy should provide hr advices for the organizations needing help with specific HR-
related issues
• Individuals and organizations who are serious about human resources should understand the
bottom-line importance of job evaluation, job descriptions and effective policies.

Types of HRM Policies:

• Attendance Policy Attendance Policy

• Recruitment Policy Recruitment Policy
• Leave of Absence Policy Leave of Absence Policy
• Performance Planning and Evaluation Performance
• Probationary Period
• Compensation
• Compensatory Leave
• Overtime Leave
• Annual Leave
• Educational Leave, etc

Challenges of HRM

1. Workplace diversity. This may consist of issues involving age, education, ethnicity, gender,
income, marital status, physical limitations, religion, sexual orientation, or any number of other
things. Understanding the challenges that may be faced by the interaction of any of these diverse
groups, as well as the required openness of the company toward such groups, will help HR
personnel provide assistance in training employees to work with those they may consider
“different,” accept that such workers may be present in the business, and agree to treat each other
respectfully, even if they never come to agree with each other over various issues.

2. Change management. This is another challenge that more and more HR departments are
facing. Being able to deal with their own changing roles in corporate society, in addition to the
changes to other jobs, the overlapping responsibilities, and more. Understanding that change is
required is the first step toward accepting the change.

3. Compensation and benefits. With a slow economy and tightening corporate purse-strings,
the issue of compensation and employee benefits is one that almost every business must deal
with. The key is to present mandatory changes in such a way that employees can accept, if not
necessarily agree with them while providing non-monetary morale boosting incentives whenever
possible to make the changes less traumatic.

4. Recruiting skilled employees. In an era of rising unemployment, it would seem that finding
qualified workers would be easier than ever. But that’s seldom the case. Many industries are
facing dire needs for employees with acceptable skills and the required training or degree. This
applies not only to health care, but also to technology and other fields as well, causing many
employers to search outside their local marketplace for workers who can do the jobs they need
filled.

5. Training and development. This is another challenge that HR managers and personnel must
deal with more frequently. With the need to cut training costs, training itself often suffers. Yet
the skills an employee needs must still be taught. Many companies are meeting this challenge by
providing eLearning opportunities that allow employees to receive the training they need without
the expenses associated with travel, on-site trainers, hours away from their jobs and high-priced
materials.

6. Increasing cut-throat competition: - Currently, organizations are facing increasing internal

and external competitions. Due to this, product life cycles are getting shorter. It one starts to
produce a new product, in no time, the same kind of product, produced by another company will
be found in the market. Beside this, the size and complexity of organizations are increasing day
by day. To face these growing challenges of competition, innovative human resource
management and practices are needed.
7. Globalization: - Globalization: - HR managers have to deal with Growing
internationalization, more heterogeneous functions and involvement in employee’s personal life.
8. Corporate Re-organizations:- It is the role of HRM to deal with the anxiety, uncertainties,
insecurities and fears during the dynamic trends of Reorganization that relates to mergers and
acquisitions, joint ventures, take over, internal restructuring of organizations.

These are only a few of the many challenges an HR department must be prepared to deal with.
Knowing in advance what type situation might arise will help you to be better equipped in the
event that it does. After all, it’s always best to hope for the best, but to be prepared for the worst.
Just in case.

Personnel Management (PM) VS Human Resources Management (HRM)

1. Personnel mean employed persons of an organization. Management of these people is

personnel management (PM). Human resource management (HRM) is the management of
employees’ knowledge, aptitudes, abilities, talents, creative abilities and skills/competencies.

2. PM is traditional, routine, maintenance-oriented, administrative function whereas HRM is

continuous, on-going development function aimed at improving human processes.

3. PM is an independent function with independent sub-functions. HRM follows the systems

thinking approach. It is not considered in isolation from the larger organization and must take
into account the linkages and interfaces.
4. PM is treated like a less important auxiliary function whereas HRM is considered a strategic
management function.

5. PM is reactive, responding to demands as and when they arise. HRM is proactive, anticipating,
planning and advancing continuously.

6. PM is the exclusive responsibility of the personnel department. HRM is a concern for all
managers in the organization and aims at developing the capabilities of all line managers to carry
out the human resource related functions.
7. The scope of PM is relatively narrow with a focus on administering people. The scope of
HRM views the organization as a whole and lays emphasis on building a dynamic culture.

8. PM is primarily concerned with recruitment, selection and administration of manpower. HRM

takes efforts to satisfy the human needs of the people at work that helps to motivate people to
make their best contribution.

9. Important motivators in PM are compensation, rewards, job simplification and so on. HRM
considers work groups, challenges and creativity on the job as motivators.

10. In PM improved satisfaction is considered to be the cause for improved performance but in
HRM it is the other way round (performance is the cause and satisfaction is the result).

11. In PM, employee is treated as an economic unit as his services are exchanged for
wages/salary. Employee in HRM is treated not only as economic unit but also a social and
psychological entity.

12. PM treats employee as a commodity or a tool or like equipment that can be bought and used.
Employee is treated as a resource and as a human being.
Traditional HRM vs. Strategic HRM

Point of distinction Traditional HR Strategic HR

Focus Employee relations Partnerships with

internal and external
customers
Role of HR Transactional change, Transformational
follower and change leader and
respondent initiator
Initiatives Slow, reactive Fast proactive and
fragmented integrated
Time horizon Short term Short , medium and
long (as required)
Control Bureaucratic roles, Organic flexible
policies procedures whatever is necessary
to succeed
Job Design Tight division of Broad flexible cross
labor, independence training teams.
specialization
Key investments Capital products People knowledge
Accountability Cost center Investment center

Responsibility for HR Staff specialists Line managers

New Trends in HRM

1. Globalization and its implications

Business today doesn’t have national boundaries – it reaches around the world. The rise of
multinational corporations places new requirements on human resource managers. The HR
department needs to ensure that the appropriate mix of employees in terms of knowledge, skills
and cultural adaptability is available to handle global assignments. In order to meet this goal, the
organizations must train individuals to meet the challenges of globalization. The employees must
have working knowledge of the language and culture (in terms of values, morals, customs and
laws) of the host country.

Human Resource Management (HRM) must also develop mechanisms that will help
multicultural individuals work together. As background, language, custom or age differences
become more prevalent, there are indications that employee conflict will increase. HRM would
be required to train management to be more flexible in its practices. Because tomorrow’s
workers will come in different colors, nationalities and so on, managers will be required to
change their ways. This will necessitate managers being trained to recognize differences in
workers and to appreciate and even celebrate these differences.

2. Work-force Diversity

In the past HRM was considerably simpler because our work force was strikingly homogeneous.
Today’s work force comprises of people of different gender, age, social class sexual orientation,
values, personality characteristics, ethnicity, religion, education, language, physical appearance,
martial status, lifestyle, beliefs, ideologies and background characteristics such as geographic
origin, tenure with the organization, and economic status and the list could go on. Diversity is
critically linked to the organization’s strategic direction. Where diversity flourishes, the potential
benefits from better creativity and decision making and greater innovation can be accrued to help
increase organization’s competitiveness.
3. Changing skill requirements

Recruiting and developing skilled labor is important for any company concerned about
competitiveness, productivity, quality and managing a diverse work force effectively. Skill
deficiencies translate into significant losses for the organization in terms of poor-quality work
and lower productivity, increase in employee accidents and customer complaints. Since a
growing number of jobs will require more education and higher levels of language than current
ones, HRM practitioners and specialists will have to communicate this to educators and
community leaders etc. Strategic human resource planning will have to carefully weigh the skill
deficiencies and shortages. HRM department will have to devise suitable training and short term
programmes to bridge the skill gaps & deficiencies.

4. Corporate downsizing
Whenever an organization attempts to delayer, it is attempting to create greater efficiency. The
premise of downsizing is to reduce the number of workers employed by the organization. HRM
department has a very important role to play in downsizing. HRM people must ensure that proper
communication must take place during this time. They must minimize the negative effects of
rumors and ensure that individuals are kept informed with factual data. HRM must also deal with
actual layoff. HRM dept is key to the downsizing discussions that have to take place.

5. Continuous improvement programs

Continuous improvement programs focus on the long term well being of the organization. It is a
process whereby an organization focuses on quality and builds a better foundation to serve its
customers. This often involves a company wide initiative to improve quality and productivity.
The company changes its operations to focus on the customer and to involve workers in matters
affecting them. Companies strive to improve everything that they do, from hiring quality people,
to administrative paper processing, to meeting customer needs.

6. Re-engineering work processes for improved productivity

Although continuous improvement initiatives are positive starts in many of our organizations,
they typically focus on ongoing incremental change. Such action is intuitively appealing – the
constant and permanent search to make things better. Yet many companies function in an
environment that is dynamic- facing rapid and constant change. As a result continuous
improvement programs may not be in the best interest of the organization. The problem with
them is that they may provide a false sense of security. Ongoing incremental change avoids
facing up to the possibility that what the organization may really need is radical or quantum
change. Such drastic change results in the re-engineering of the organization.

8. Contingent workforce
A very substantial part of the modern day workforce are the contingent workers. Contingent
workers are individuals who are typically hired for shorter periods of time. They perform
specific tasks that often require special job skills and are employed when an organization is
experiencing significant deviations in its workflow. When an organization makes its strategic
decision to employ a sizable portion of its workforce from the contingency ranks, several HRM
issues come to the forefront. These include being able to have these virtual employees available
when needed, providing scheduling options that meet their needs and making decisions about
whether or not benefits will be offered to the contingent work force.

9. Decentralized work sites

Work sites are getting more and more decentralized. Telecommuting capabilities that exist today
have made it possible for the employees to be located anywhere on the globe. With this potential,
the employers no longer have to consider locating a business near its work force. Telecommuting
also offers an opportunity for a business tin a high cost area to have its work done in an area
where lower wages prevail.

Decentralized work sites also offer opportunities that may meet the needs of the diversified
workforce. Those who have family responsibilities like child care, or those who have disabilities
may prefer to work in their homes rather than travel to the organization’s facility. For HRM,
decentralized work sites present a challenge. Much of that challenge revolves around training
managers in how to establish and ensure appropriate work quality and on-time completion. Work
at home may also require HRM to rethink its compensation policy. Will it pay by the hour, on a
salary basis, or by the job performed. Also, because employees in decentralized work sites are
full time employees of the organization as opposed to contingent workers, it will be
organization’s responsibility to ensure health and safety of the decentralized work force.

10. Employee involvement

For today’s organization’s to be successful there are a number of employee involvement
concepts that appear to be accepted. These are delegation, participative management, work
teams, goal setting, employee training and empowering of employees. HRM has a significant
role to play in employee involvement. What are needed are demonstrated leadership as well as
supportive management. Employees need to be trained and that’s where human resource
management has a significant role to play. Employees expected to delegate, to have decisions
participatively handled, to work in teams, or to set goals cannot do so unless they know and
understand what it is that they are to do. Empowering employees requires extensive training in
all aspects of the job. Workers may need to understand how new job design processes. They may
need training in interpersonal skills to make participative and work teams function properly.

UNIT 2 Human Resource Planning

Human Resource Planning: HR planning refers to classic HR administrative functions, and the
evaluation and identification of human resources requirements for meeting organizational goals.
It also requires an assessment of the availability of the qualified resources that will be needed. To
ensure their competitive advantage in the marketplace and anticipate staffing needs,
organizations must implement innovative strategies that are designed to enhance their employee
retention rate and recruit fresh talent into their companies. Human resources planning is one way
to help a company develop strategies and predict company needs in order to keep their
competitive edge.
Definition:
A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job. You need as much data as
possible to put together a job description, which is the frequent outcome of the job analysis.
Additional outcomes include recruiting plans, position postings and advertisements, and
performance development planning within your performance management system.

The job analysis may include these activities

• Reviewing the job responsibilities of current employees,
• Doing Internet research and viewing sample job descriptions online or offline
highlighting similar jobs,
• Analyzing the work duties, tasks, and responsibilities that need to be accomplished by the
employee filling the position,
• Researching and sharing with other companies that have similar jobs, and
• Articulation of the most important outcomes or contributions needed from the position.

Job Description and Specification

Job descriptions describe the job and not the individual who fills the job. They are the result of
job analysis within a given organization and are essential to the selection and evaluation of
employees. Job advertisements or postings are based on the job description.
The character of the organization is the basis for the description of positions. Information about
the organization might include

Name of Company
Main Product(s) and/or Service(s)
Location
Number of Employees
Company Structure
Names of Officers
Hours of Work

Job Analysis

Job analysis is the systematic assembly of all the facts about a job. The purpose is to study the
individual elements and duties. All information related to the salary and benefits, working hours
and conditions, typical tasks and responsibilities are required for the job analysis. The results of
job analysis are job description and job specification. Is the systematic assembly of all the facts
about a job. The purpose is to study the individual elements and duties. All information related to
the salary and benefits, working hours and conditions, typical tasks and responsibilities are
required for the job analysis. The results of job analysis are job description and job specification.

Job Description

Job description is a written statement that defines the duties, relationships and results expected of
anyone in the job. It is an overall view of what is to be done in the job. Typically it includes is a
written statement that defines the duties, relationships and results expected of anyone in the job.
It is an overall view of what is to be done in the job. Typically it includes

Job Title
Date
Title of immediate supervisor
Statement of the Purpose of the Job

Primary Responsibilities
List of Typical Duties and Responsibilities
General Information related to the job
Training requirements
Tool use
Transportation
Signature of the person who has prepared the job description

Job Specification

Job Specification is an analysis of the kind of person it takes to do the job, that is to say, it lists
the qualifications. Normally, this would include is an analysis of the kind of person it takes to do
the job, that is to say, it lists the qualifications. Typically this would include

Degree of education
Desirable amount of previous experience in similar work
Specific Skills required
Health Considerations
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organizations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many resources
and time.

Job design (also referred to as work design or task design) is the specification of contents,
methods and relationship of jobs in order to satisfy technological and organizational
requirements as well as the social and personal requirements of the job holder.
Job design means to decide the contents of a job. It fixes the duties and responsibilities of the
job, the methods of doing the job and the relationships between the job holder (manager) and his
superiors, subordinates and colleagues

Job Simplification

Job simplification is a design method whereby jobs are divided into smaller components and
subsequently assigned to workers as whole jobs.
Simplification of work requires that jobs be broken down into their smallest units and then
analyzed. Each resulting sub-unit typically consists of relatively few operations. These subunits
are then assigned to the workers as their total job.

There appears to be two major advantages in using job simplification. First, since the job
requires very little training, they can be completed by less costly unskilled labour. Second, job
speed increases because each worker is performing only a small portion of the previously large
job and thus is able to master a smaller, less complicated job unit.

On the negative side, job simplification results in workers experiencing boredom, frustration,
alienation, lack of motivation and low job satisfaction. This, in turn, leads to lower productivity
and increased cost.

Job Enlargement

Job enlargement expands job horizontally. It increases job scope; that is, it increases the number
of different operations required in a job and the frequency with which the job cycle is repeated.
By increasing the number of tasks an individual performs, job enlargement, increases the job
scope, or job diversity. Instead of only sorting the incoming mail by department, for instance, a
mail sorter's job could be enlarged to include physically delivering the mail to the various
departments or running outgoing letters through the postage meter.

Efforts at job enlargement have met with less than enthusiastic results. As one employee who
experienced such a redesign on his job remarked, “ Before I had one lousy job. Now, through
enlargement, I have three!”. So while job enlargement attacks the lack of diversity in
overspecialized jobs, it has done little to provide challenge or meaningfulness to a workers'
activities.

Job Rotation

Job rotation refers to the movement of an employee from one job to another. Jobs themselves are
not actually changed, only the employees are rotated among various jobs. An employee who
works on a routine job moves to work on another job for some hours/days/months and returns
back to the first job. This measure relieves the employee from the boredom and monotony,
improves the employee's skills regarding various jobs and prepares worker's self-image and
provides personal growth. However, frequent job rotations are not advisable in view of their
negative impact on the organization and the employee.

Job Enrichment

Job enrichment, as it is currently practiced in industry, is a direct outgrowth of Herzberg's Two

Factor Theory of motivation. It is, therefore, based on the assumption that in order to motivate
personnel, the job itself must provide opportunities for achievement recognition, responsibility,
advancement and growth. The basic idea is to restore to jobs the elements of interest that were
taken away under intensive specialization. At this stage it may be necessary to draw a distinction
between job rotation, job enlargement and job enrichment. Job enrichment tries to embellish the
job with factors that Herzberg characterized as motivators: achievement, recognition, increased
responsibilities, opportunities for growth, advancement and increased competence. There is an
attempt to build into jobs a higher sense of challenge and achievement, through vertical job
loading.

Vertical job loading entails redesigning jobs to give:

1. Greater responsibility,

2. Greater autonomy,

3. More immediate feedback to the individual or group. This might include transferring
some of the superior's activities to subordinates.

Horizontal job loading might be applied by having workers perform some of the steps that
precedes and follow them in the work flow. A single operator might fit on all four fenders, be
responsible for the car's entire front end, or do both rough and finished painting.

A general Recruitment process is as follows:

Identifying the vacancy:

The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company. These contain:
Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
Preparing the job description and person specification.
Locating and developing the sources of required number and type of employees

.
SOURCES OF RECRUITMENT
Employee Selection is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people. Effective selection can
be done only when there is effective matching. By selecting best candidate for the required job,
the organization will get quality performance of employees. Moreover, organization will face
less of absenteeism and employee turnover problems. By selecting right candidate for the
required job, organization will also save time and money. Proper screening of candidates takes
place during selection procedure. All the potential candidates who apply for the given job are
tested.

The Employee Selection Process takes place in following order-

Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum
eligiblity criteria laid down by the organization. The skills, academic and family background,
competencies and interests of the candidate are examined during preliminary interview.
Preliminary interviews are less formalized and planned than the final interviews. The candidates
are given a brief up about the company and the job profile; and it is also examined how much the
candidate knows about the company. Preliminary interviews are also called screening interviews.

Application blanks- The candidates who clear the preliminary interview are required to fill
application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.

Written Tests- Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the
potential candidate. They should not be biased.

Employment Interviews- It is a one to one interaction between the interviewer and the potential
candidate. It is used to find whether the candidate is best suited for the required job or not. But
such interviews consume time and money both. Moreover the competencies of the candidate
cannot be judged. Such interviews may be biased at times. Such interviews should be conducted
properly. No distractions should be there in room. There should be an honest communication
between candidate and interviewer.

Medical examination- Medical tests are conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee absenteeism.
Appointment Letter- A reference check is made about the candidate selected and then finally he
is appointed by giving a formal appointment letter.

Selection: Tests
Personality Tests: Selection procedures measure the personality characteristics of applicants that
are related to future job performance. Personality tests typically measure one or more of five
personality dimensions: extroversion, emotional stability, agreeableness, conscientiousness, and
openness to experience.
Advantages
• It can result in lower turnover due if applicants are selected for traits that are highly
correlated with employees who have high longevity within the organization

• It can reveal more information about applicant's abilities and interests

• It can identify interpersonal traits that may be needed for certain jobs

Disadvantages
• There is difficult to measure personality traits that may not be well defined

• The applicant's training and experience may have greater impact on job performance than
applicant's personality

• The responses by applicant may may be altered by applicant's desire to respond in a way
they feel would result in their selection

• There is lack of diversity if all selected applicants have same personality traits

• The cost may be prohibitive for both the test and interpretation of results
 • There is lack of evidence to support validity of use of personality tests.

Types of Personality Tests

Personal Attribute Inventory: An interpersonal assessment instrument which consists of 50
positive and 50 negative adjectives from Gough's Adjective Check List. The subject is to select
30 which are most descriptive of the target group or person in question. This instrument was
specifically designed to tap affective reactions and may be used in either assessing attitudes
toward others or as a self-concept scale.
Personality Adjective Checklist: A comprehensive, objective measure of eight personality
styles. These eight personality styles are: introversive, inhibited, cooperative, sociable, confident,
forceful, respectful, and sensitive. This instrument is designed for use with non psychiatric
patients and normal adults who read minimally at the eighth grade level. Test reports are
computer-generated and are intended for use by qualified professionals only. Interpretive
statements are based on empirical data and theoretical inference. They are considered
probabilistic in nature and cannot be considered definitive.
Cross-Cultural Adaptability Inventory: Self-scoring six-point rating scale is a training
instrument designed to provide feedback to individuals about their potential for cross-cultural
effectiveness. It is most effective when used as part of a training program. It can also be used as
a team-building tool for culturally diverse work groups and as a counseling tool for people in the
process of cross-cultural adjustment. The inventory contains 50 items, distributed among 4
subscales: emotional resilience, flexibility/openness, perceptual acuity, personal autonomy.
Materials:
California Psychological Inventory: Multipurpose questionnaire designed to assess normal
personality characteristics important in everyday life that individuals make use of to understand,
classify, and predict their own behaviors and that of others. In this revision, two new scales,
empathy and independence, have been added; semantic changes were made in 29 items; and 18
items were eliminated. The inventory is applicable for use in a variety of settings, including
business and industry, schools and colleges, clinics and counseling agencies, and for cross
cultural and other research. It may be used to advise employees/applicants about their vocational
plans.
Achievement or Performance test: - These tests measure the applicants’ ability to do the work.
Applicants is simply asked to demonstrate his ability like typing test for the job of typist of
making Programme in particular computer language for the job of software development.
Intelligence test/ Aptitude test: - This test tries to measure the intelligence of the applicant. It
includes verbal comprehension, reasoning memory test, visualization word fluency etc. These
tests are designed for the different age groups. Organization tries to select intelligent people so
that they can learn easily during training and learning process.
Interests Test: - Interest tests are designed to discover a person’s area of interest and identifying
the jobs that will satisfy him. It generally measures interest in outdoor activities mechanical
computational artistic musical clerical etc.
Advantages of selection tests:
1. Selection test can be used to weed out the large number of candidates who may not be
considered for the employment. Normally organization receives a large number of applications
so these tests help to find out the suitable candidates having required characteristics for the
position. Selection test will provide cut off point above which candidates may be called for the
interview.
2. Selection test can provide the information about the qualities and potential of the prospective
employees which cannot be known through other methods including personal interviews. These
tests also help for the promotion of the potential candidates.
3. Selection tests are standardized and unbiased method of selecting the candidate. Thus a person
who is not selected on the basis of test cannot argue for the partiality in selection process.
Impartiality is very important for organizations like public sector.

Selection: Interviews
Interviews: A selection procedure designed to predict future job performance on the basis of
applicants' oral responses to oral inquiries.
Advantages
• It is useful for determining if the applicant has requisite communicative or social skills
which may be necessary for the job
 • The interviewer can obtain supplementary information used to appraise candidates' verbal
fluency

• It can assess the applicant's job knowledge

• It can be used for selection among equally qualified applicants

• It enables the supervisor and/or co-workers to determine if there is compatibility between

the applicant and the employees

• It allows the applicant to ask questions that may reveal additional information useful for
making a selection decision

• The interview may be modified as needed to gather important information

Disadvantages
• The subjective evaluations are made

• The decisions tend to be made within the first few minutes of the interview with the
remainder of the interview used to validate or justify the original decision

• The interviewers form stereotypes concerning the characteristics required for success on
the job

• The research has shown disproportionate rates of selection between minority and non-
minority members using interviews

• The negative information seems to be given more weight

• Not much evidence of validity of the selection procedure not as reliable as tests.

There are two primary types of interviews used by companies: screening interviews, and
selection interviews. Every company’s hiring process is different. Some companies may require
only two interviews while others may require three or more. It is also not uncommon to see a
company conduct testing (personality, skills based, aptitude, etc.) as an intermediate step in the
hiring process. Here is an overview of the major types of interviews and tips on how to handle
them:
Screening Interview: Your first interview with a company will often be a screening interview.
The purpose of a screening interview is to ensure that prospective candidates meet the basic
qualifications for a given position. It may take place in person or on the telephone. If you meet
the basic qualifications, express interest in the position, and make a positive impression on the
interviewer, you will likely be selected for a selection interview.
Selection Interview:
Selection interviews are typically conducted onsite at the hiring company. The purpose of a
selection interview is to determine whether a candidate will be selected for the position he or she
is interviewing for. A selection interview is typically more rigorous than a screening interview.
At this point, a company is trying to decide whether or not you should either be moved to the
next step in the hiring process or an offer is going to be extended, so there will be more scrutiny
than with a screening interview. The company wants to know - Are you qualified for the job?
Are you a good cultural fit? Can you make an immediate impact, or will you need extensive
training? Questions will be more specific and your answers will need to be more detailed.
Selection interviews can come in several forms:

Panel Interview
A panel interview is an interview that consists of two or more interviewers. Typically, the
interviewers will both ask questions. The purpose of a panel interview is to gain multiple
perspectives on a prospective candidate. The key to a panel interview is to keep all interviewers
involved. Make eye contact with all interviewers even when answering a question for a specific
individual.
One-on-One Interview
A one-on-one interview is an interview with a single interviewer. The key to a one-on-one
interview is to build rapport with the interviewer. Smile. Be friendly. Try to match your
interviewer’s energy level. Typically, you will have a short period of time to make an impact.
Know the position and the key attributes the company is seeking, and emphasize those things.
Stress Interview
A stress interview is designed to test your responses in a stressful environment. The interviewer
may try to intimidate you, and the purpose is to weed out candidates who don’t deal well with
adversity. The interviewer will make deliberate attempts to see how you handle yourself using
methods such as sarcasm, argumentative style questions, or long awkward silences. The key to a
stress interview is to recognize that you are in a stress interview. Don’t take it personally. Stay
calm, focused, and don’t allow yourself to be rushed. Ask for clarification if you need it. Know
how to push back. Ask an interviewer for a couple of problems they are currently facing, and
propose solutions.

Difference between Recruitment and Selection

Recruitment Selection

1. Recruitment refers to the process of 1. Selection is concerned with picking

identifying and encouraging prospective up the right candidates from a pool of
employees to apply for jobs. applicants.
2. Recruitment is said to be positive in 2. Selection on the other hand is
its approach as it seeks to attract as many negative in its application in as much as it
candidates as possible. seeks to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.

Placement is a process of assigning a specific job to each of the selected candidates. It

involves assigning a specific rank and responsibility to an individual. It implies matching the
requirements of a job with the qualifications of the candidate.
The significances of placement are as follows: -

* It improves employee morale.

* It helps in reducing employee turnover.
* It helps in reducing absenteeism.
* It helps in reducing accident rates.
* It avoids misfit between the candidate and the job.
* It helps the candidate to work as per the predetermined objectives of the organization.

Induction
Once an employee is selected and placed on an appropriate job, the process of familiarizing him
with the job and the organization is known as induction.
Induction is the process of receiving and welcoming an employee when he first joins the
company and giving him basic information he needs to settle down quickly and happily and stars
work.

The objectives of Induction

Induction is designed to achieve following objectives: -

* To help the new comer to overcome his shyness and overcome his shyness nervousness in
meeting new people in a new environment.
* To give new comer necessary information such as location of a café, rest period etc.
* To build new employee confidence in the organization.
* It helps in reducing labor turnover and absenteeism.
* It reduces confusion and develops healthy relations in the organization.
* To ensure that the new comer do not form false impression and negative attitude towards the
organization.
* To develop among the new comer a sense of belonging and loyalty to the organization.

The advantages of Formal induction

* Induction helps to build up a two-way channel of communication between management and
workers.
* Proper induction facilitates informal relation and team work among employee.
* Effective induction helps to integrate the new employee into the organization and to develop a
sense of belonging.
* Induction helps to develop good relation.
* A formal induction programme proves that the company is taking interest in getting him off to
good start.
* Proper induction reduces employee grievances, absenteeism and labor turnover.
* Induction is helpful in supplying information concerning the organization, the job and
employee welfare facilities.

The contents of Induction programme

* Brief history and operations of the company.

* The company’s organization structure.
* Policies and procedure of the company.
* Products and services of the company.
* Location of department and employee facilities.
* Safety measures.
* Grievances procedures.
* Benefits and services of employee.
* Standing orders and disciplinary procedures.
* Opportunities for training, promotions, transfer etc.
* Suggestion schemes.
* Rules and regulations.

Job Changes
Mobility of employees from one job to another through transfer, promotion and demotion is
internal mobility and some employees leave the organization due to resignation, retirement and
termination is called external mobility. Taking internal and external together makes job change.
Purpose of Job Change
• To maximize employee efficiency.

• To improve organizational effectiveness.

• To ensure discipline.

• To cope up with change in operation.

Transfer
A transfer refers to a horizontal or lateral movement of an employee from one job to another in
the same organization without any significant change in status or pay. It has been defined as “a
lateral shift causing movement of individuals from one position to another usually without
involving any marked change in duties, responsibilities, skills needed or compensation.”
Purposes of transfer
• To meet organizational needs.
• To adjust the work force.
• To better utilize employees.
• To enhance job skills, knowledge and aptitude.
• To make employee more versatile.
• To satisfy employee needs.
• To punish non-performers.

Promotions
Promotion refers to advancement of an employee to a higher post carrying greater responsibility,
higher status and better salary. It is the upward movement of an employee in the organization’s
hierarchy, to another job commanding greater authority, higher status and better working
conditions.
Advantages of Promotion
• To retain skilled and talented employees.

• To boost the morale and sense of belonging of employees.

 • To utilize more effectively the knowledge and skills of employees.

• To attract competent internal source of employees for higher level jobs.

• To develop a competitive spirit among employees for acquiring knowledge and skills
required by higher level jobs.

Demotions
Demotion is “reverse” of promotion. Demotion is the lowering of a rank, reduction in salary,
status and responsibilities. It may be defined as the assignment of an individual to a job of lower
rank and pay usually involving lower level of authority and responsibility. Demotion is normally
used as a punishment for breach of discipline. It brings bad name to the employee. The juniors
supersede a person which brings humiliation. Even the reduction of pay will adversely affect the
budget of an employee.
Causes of Demotion:
Demotion may take place due to the following reasons:
1. Breach of Discipline: A breach of discipline may attract demotion as a punishment. An
organization can work only if proper discipline is maintained. A punitive action for such breach
may be necessary so that people do not flout rules, regulation etc. of the company.
2. Inadequacy of Knowledge: A person may not be competent to perform his job properly. He
may not be able to meet job requirements. In such a situation demotion becomes necessary.
3. Unable to Cope With Change: Now-a-days, there is a rapid change in technology and
methods of work. The existing employees may not be able to adjust themselves as per the new
requirements. It may be due to lack of education, technical skill, ill health, old age or other
personal reasons. Under these circumstances new persons may be needed to take up such jobs.
4. Organizational Re-Organization: Sometimes there may be organizational changes. It may
be necessitated by either combining the departments or closing of some sections or departments.
In such situations the number of positions is reduced and some employees may be posted at the
lower positions until normality is restored. Such demotions are not due to any fault of the
employees.
Separation
Separated employees include employees who retire. Employee separation, in some instances, is a
relatively neutral way to describe the end of the employment relationship. Separation can occur
when the employee doesn't necessarily want to leave, but does so anyway for reasons other than
leaving the company for a better opportunity or embarking upon a new career path. Employee
separation is a phrase also used to describe the end of the employment relationship due to death.

Unit-III: Training and Development

Concept of Training:

What is meant by training? Training is the process of teaching the new and/or present employees
the basic skills they need to effectively perform their jobs. Alternatively speaking, training is the
act of increasing the knowledge and skill of an employee for doing his/her job.

Thus, training refers to the teaching and learning activities carried on for the primary purpose of
helping members of an organization to acquire and also to apply the required knowledge, skill
and attitudes to perform their jobs effectively.

According to Edwin B. Flippo, “training is the act of increasing the knowledge and skills of an
employee for doing a particular job.”

Michael Armstrong points “training is the systematic modification of behaviour through learning
which occurs as a result of education, instruction, development and planned experience”.

In the opinion of Michael J. Jucious, “training is any process by which the attitudes, skills and
abilities of employees to perform specific jobs are improved.”
Thus, it can be concluded that training is a process that tries to improve skills, or add to the
existing level of knowledge so that the employee is better equipped to do his present job, or to
mould him to be fit for a higher job involving higher responsibilities. In other words, training is a
learning experience that seeks a relatively permanent change in an individual that will improve
his/her ability to perform his job.

Importance of training:

The following two Chinese proverbs highlight the importance of the employee training:

“Give a man a fish, and you have given him meal. Teach man to fish, and you have given him
livelihood.”

“If you wish to plan for a year sow seeds, if you wish to plan for ten years plant trees, if you plan
for life-time develop men.”

The importance of employee training can best be appreciated with the help of various advantages
it offers to both employees and employers.

These are explained under the following heads:

1. Better Performance:

Training improves employee’s ability and skills and, in turn, improves employee’s performance
both in quantity and quality. Better or increased employee performance directly leads to
increased operational productivity and increased organisational profits. Improvements in
employee performance/productivity in developed countries’ lend support to this statement.

2. Improved Quality:

In formal training programmes, the best methods of performing jobs are standardised and then
taught to employees. This offers two-fold benefits. Firstly, uniformity in work performance helps
improve the quality of work or service. Secondly, better informed, or say, trained workers are
less likely to make operational mistakes.
3. Less Supervision:

A trained worker is self-reliant. He knows his work and way to perform it well. Therefore, his
work requires less supervision. The supervisor can devote his time on more urgent works.

4. Less Learning Period:

A well planned and systematically organised training programme reduces the time and cost
involved in learning. Training enables to avoid waste of time and efforts in learning through trial
and error method’.

5. High Morale:

Training not only improves the ability and skill of employees, but also changes employee
attitude toward positive. Higher performance, job satisfaction, job security and avenues for
internal promotion lead to high morale among the employees. High morale, in turn, makes
employees’ lore loyal to the organisation.

6. Personal Growth:

Training improves employee’s ability, knowledge and skills and, thus, prevents employee’s
obsolescence. This makes employees growth-oriented.

7. Favourable organisational climate:

The aforesaid advantages combined lead to an improved and favourable organisational climate
characterised by better industrial relations and disciplines, reduced resistance to change, reduced
absenteeism and turnover of employees, and improved stability of organisation.

Thus, it may be observed that the importance of training can be imbued with multiplicity of
justifications. In fact, a systematic and effective training is an invaluable investment in the
human resources of an organisation. Therefore, no organisation can choose whether or not to
train employees.

Types of Training:
Various types of training can be given to the employees such as induction training, refresher
training, on the job training, vestibule training, and training for promotions.

Some of the commonly used training programs are listed below:

1. Induction training:

Also known as orientation training given for the new recruits in order to make them familiarize
with the internal environment of an organization. It helps the employees to understand the
procedures, code of conduct, policies existing in that organization.

2. Job instruction training:

This training provides an overview about the job and experienced trainers demonstrates the
entire job. Addition training is offered to employees after evaluating their performance if
necessary.

3. Vestibule training:

It is the training on actual work to be done by an employee but conducted away from the work
place.

4. Refresher training:

This type of training is offered in order to incorporate the latest development in a particular field.
This training is imparted to upgrade the skills of employees. This training can also be used for
promoting an employee.

5. Apprenticeship training:

Apprentice is a worker who spends a prescribed period of time under a supervisor.

Training Methods: On Job Training and off the Job Training Methods

A large variety of methods of training are used in business. Even within one organization
different methods are used for training different people. All the methods are divided into two
classifications for:

A. On-the-job Training Methods:

1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

A. On-the-job training Methods:

Under these methods new or inexperienced employees learn through observing peers or
managers performing the job and trying to imitate their behaviour. These methods do not cost
much and are less disruptive as employees are always on the job, training is given on the same
machines and experience would be on already approved standards, and above all the trainee is
learning while earning. Some of the commonly used methods are:

1. Coaching:

Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to
focus on them. It also offers the benefit of transferring theory learning to practice. The biggest
problem is that it perpetrates the existing practices and styles. In India most of the scooter
mechanics are trained only through this method.

2. Mentoring:

The focus in this training is on the development of attitude. It is used for managerial employees.
Mentoring is always done by a senior inside person. It is also one-to- one interaction, like
coaching.

3. Job Rotation:

It is the process of training employees by rotating them through a series of related jobs. Rotation
not only makes a person well acquainted with different jobs, but it also alleviates boredom and
allows to develop rapport with a number of people. Rotation must be logical.

4. Job Instructional Technique (JIT):

It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares
a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the
task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own,
and (d) follows up to provide feedback and help. The trainees are presented the learning material
in written or by learning machines through a series called ‘frames’. This method is a valuable
tool for all educators (teachers and trainers). It helps us:

a. To deliver step-by-step instruction

b. To know when the learner has learned

c. To be due diligent (in many work-place environments)

5. Apprenticeship:

Apprenticeship is a system of training a new generation of practitioners of a skill. This method of

training is in vogue in those trades, crafts and technical fields in which a long period is required
for gaining proficiency. The trainees serve as apprentices to experts for long periods. They have
to work in direct association with and also under the direct supervision of their masters.

The object of such training is to make the trainees all-round craftsmen. It is an expensive method
of training. Also, there is no guarantee that the trained worker will continue to work in the same
organisation after securing training. The apprentices are paid remuneration according the
apprenticeship agreements.

6. Understudy:

In this method, a superior gives training to a subordinate as his understudy like an assistant to a
manager or director (in a film). The subordinate learns through experience and observation by
participating in handling day to day problems. Basic purpose is to prepare subordinate for
assuming the full responsibilities and duties.

B. Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study material
is supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:
1. Lectures and Conferences:

Lectures and conferences are the traditional and direct method of instruction. Every training
programme starts with lecture and conference. It’s a verbal presentation for a large audience.
However, the lectures have to be motivating and creating interest among trainees. The speaker
must have considerable depth in the subject. In the colleges and universities, lectures and
seminars are the most common methods used for training.

2. Vestibule Training:

Vestibule Training is a term for near-the-job training, as it offers access to something new
(learning). In vestibule training, the workers are trained in a prototype environment on specific
jobs in a special part of the plant.

An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop.

This enables the workers to secure training in the best methods to work and to get rid of initial
nervousness. During the Second World War II, this method was used to train a large number of
workers in a short period of time. It may also be used as a preliminary to on-the job training.
Duration ranges from few days to few weeks. It prevents trainees to commit costly mistakes on
the actual machines.

3. Simulation Exercises:

Simulation is any artificial environment exactly similar to the actual situation. There are four
basic simulation techniques used for imparting training: management games, case study, role
playing, and in-basket training.

(a) Management Games:

Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete
information, communication and leadership capabilities. Use of management games can
encourage novel, innovative mechanisms for coping with stress.

Management games orient a candidate with practical applicability of the subject. These games
help to appreciate management concepts in a practical way. Different games are used for training
general managers and the middle management and functional heads – executive Games and
functional heads.

(b) Case Study:

Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that
demonstrate theoretical concepts in an applied setting.

A case study allows the application of theoretical concepts to be demonstrated, thus bridging the
gap between theory and practice, encourage active learning, provides an opportunity for the
development of key skills such as communication, group working and problem solving, and
increases the trainees” enjoyment of the topic and hence their desire to learn.

(c) Role Playing:

Each trainee takes the role of a person affected by an issue and studies the impacts of the issues
on human life and/or the effects of human activities on the world around us from the perspective
of that person.

It emphasizes the “real- world” side of science and challenges students to deal with complex
problems with no single “right” answer and to use a variety of skills beyond those employed in a
typical research project.

In particular, role-playing presents the student a valuable opportunity to learn not just the course
content, but other perspectives on it. The steps involved in role playing include defining
objectives, choose context & roles, introducing the exercise, trainee preparation/research, the
role-play, concluding discussion, and assessment. Types of role play may be multiple role play,
single role play, role rotation, and spontaneous role play.

(d) In-basket training:

In-basket exercise, also known as in-tray training, consists of a set of business papers which may
include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to prioritise the
decisions to be made immediately and the ones that can be delayed.

4. Sensitivity Training:

Sensitivity training is also known as laboratory or T-group training. This training is about
making people understand about themselves and others reasonably, which is done by developing
in them social sensitivity and behavioral flexibility. It is ability of an individual to sense what
others feel and think from their own point of view.

It reveals information about his or her own personal qualities, concerns, emotional issues, and
things that he or she has in common with other members of the group. It is the ability to behave
suitably in light of understanding.

A group’s trainer refrains from acting as a group leader or lecturer, attempting instead to clarify
the group processes using incidents as examples to clarify general points or provide feedback.
The group action, overall, is the goal as well as the process.

The Design of the Training Program can be undertaken only when a clear training
objective has been produced. The training objective clears what goal has to be achieved by
the end of training program i.e. what the trainees are expected to be able to do at the end of
their training. Training objectives assist trainers to design the training program.

The trainer – Before starting a training program, a trainer analyzes his technical,
interpersonal, judgmental skills in order to deliver quality content to trainers.
 The trainees – A good training design requires close scrutiny of the trainees and their
profiles. Age, experience, needs and expectations of the trainees are some of the important
factors that affect training design.

Training climate – A good training climate comprises of ambience, tone, feelings, positive
perception for training program, etc. Therefore, when the climate is favorable nothing goes
wrong but when the climate is unfavorable, almost everything goes wrong.

Trainees’ learning style – the learning style, age, experience, educational background of
trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates it
into specific training areas and modules. The trainer prepares the priority list of about what
must be included, what could be included.

Training topics – After formulating a strategy, trainer decides upon the content to be
delivered. Trainers break the content into headings, topics, ad modules. These topics and
modules are then classified into information, knowledge, skills, and attitudes.

Sequence the contents – Contents are then sequenced in a following manner:

• From simple to complex

• Topics are arranged in terms of their relative importance
• From known to unknown
• From specific to general
• Dependent relationship
 Training tactics – Once the objectives and the strategy of the training program becomes
clear, trainer comes in the position to select most appropriate tactics or methods or
techniques. The method selection depends on the following factors:

• Trainees’ background
• Time allocated
• Style preference of trainer
• Level of competence of trainer
• Availability of facilities and resources, etc

Evaluation of Training Effectiveness

Donald Kirkpatrick, professor emeritus, university of Wisconsin began working on evaluating
the effectiveness of training very early in his life. His early work on the same was published in
the year 1959 in a journal of American Society of Training Directors. He laid out four levels for
evaluation of any training. This model is arguably the most widespread for evaluation in use. It is
simple, very flexible and complete. The four levels as described by Kirkpatrick are as follows:
1. Reaction of the Trainee - thoughts and feelings of the participants about the training
2. Learning - the increase in knowledge or understanding as a result of the training
3. Behavior - extent of change in behavior, attitude or capability
4. Results - the effect on the bottom line of the company as a result of the training.
Reaction
Reaction implies how favorably the participants have responded to the training. This evaluation
is primarily quantitative in nature and is a feedback to the training and the trainer. The most
common collection tool is the questionnaire that analyses the content, methodology, facilities and
the course content.
Learning
At the level of learning the evaluation is done on the basis of change in the ASK (Attitudes,
skills and knowledge) of the trainees. The evaluation involves observation and analysis of the
voice, behaviour, text. Other tools used apart from the observation are interviews, surveys, pre
and post tests etc.
Behaviour
Behaviour evaluation analyses the transfer of learning from the training session to the work
place. Here the primary tool for evaluation is predominantly the observation. Apart from the
observation, a combination of questionnaires and 360 feedbacks are also used.
Results
The results stage makes evaluations towards the bottom line of the organization. Here the
definition of the results depends upon the goal of the training program. The evaluation is done by
using a control group allowing certain time for the results to be achieved.

Executive Development Programme

It means that executive development focuses more on the executive’s personal growth. Thus,
executive development consists of all the means that improve his/her performance and
behaviour. Executive development helps understand cause and effect relationship, synthesizes
from experience, visualizes relationships or thinks logically. That is why some behavioural
scientists suggest that the executive development is predominantly an educational process rather
than a training process.

Flippo has viewed that “executive/management development includes the process by which
managers and executives acquire not only skills and competency in their present jobs but also
capabilities for future managerial tasks of increasing difficulty and scope”.

According to S.B. Budhiraja, former Managing Director of Indian Oil Corporation. “Any activity
designed to improve the performance of existing managers and to provide for a planned growth
of managers to meet future organisational requirements is called management development”. It is
now clear from the above definitions of executive/management development that it is based on
certain assumptions.

Executive Development Programme: Process

Like any learning programme, executive development also involves a process consisting o)
certain steps. Though sequencing these various steps in a chronological order is difficult,
behavioural scientists have tried to list and sequence them in six steps as shown in figure 11.1

These steps, also called the components of the executive development programme, have been-
discussed in the succeeding paragraphs.

Identifying Development Needs:

Once the launching of an executive development programme (EDP) is decided, its

implementation begins with identifying the developmental needs of the organisation concern. For
this, first of all, the present and future developmental needs for executives/ managers ascertained
by identifying how many and what type of executives will be required in the organisation at
present and in future.

This needs to be seen in the context of organisational as well as individual, i.e. manager needs.
While organisational needs may be identified by making organisational analysis in terms of
organisation’s growth plan, strategies, competitive environment, etc., individual needs to be
identified by the individual career planning and appraisal.

Appraisal of Present Managerial Talent:

The second step is an appraisal of the present managerial talent for the organisation. For this
purpose, a qualitative assessment of the existing executives/managers in the organisation is
made. Then, the performance of every executive is compared with the standard expected of him.
Inventory of Executive Manpower:

Based on information gathered from human resource planning, an inventory is prepared to have
complete information about each executive in each position. Information on the executive’s age,
education, experience, health record, psychological test results, performance appraisal data, etc.
is collected and the same is maintained on cards and replacement tables.

An analysis of such inventory shows the strengths and also discloses the deficiencies and
weaknesses of the executives in certain functions relative to the future needs of the concern
organisation. From this executive inventory, we can begin the fourth step involved in the
executive development process.

Developing Development Programmes:

Having delineated strengths and weaknesses of each executive, the development programmes are
tailored to fill in the deficiencies of executives. Such tailormade programmes of development
focus on individual needs such as skill development, changing attitudes, and knowledge
acquisition.

Conducting Development Programmes:

At this stage, the manager actually participates in development programmes. It is worth mention-
ing that no single development programme can be adequate for all managers. The reason is that
each manager has a unique set of physical, intellectual and emotional characteristics.

As such, there can be different development programmes to uniquely suit to the needs of an
executive/ manager. These development programmes may be on-the-job or off-the-job
programmes organised either by the organisation itself or by some outside agencies.

Executive Development Programme: Techniques

Career Planning and Development

• A Career has been defined as the sequence of a person’s experiences on different jobs
over the period of time.
• It is viewed as fundamentally a relationship between one or more organizations and the
individual. To some a career is a carefully worked out plan for self advancement to others
it is a calling-life role to others it is a voyage to self discovery and to still others it is life
itself.
• A career is a sequence of positions/jobs held by a person during the course of his working
life.
• According to Edwin B. Flippo,“ A career is a sequence of separate but related work
activities that provide continuity, order and meaning to a person’s life”.
• According to Garry Dessler, “The occupational positions a person has had over many
years”. Many of today's employees have high expectations about their jobs. There
has been a general increase in the concern of the quality of life. Workers expect more
from their jobs than just income.
• A further impetus to career planning is the need for organizations to make the
best possible use of their most valuable resources the people in a time of rapid
technological growth and change
 • Career development, both as a concept and a concern is of recent origin. The reason for
this lack of concern regarding career development for a long time has been the careless,
unrealistic assumption about employees functioning smoothly along the right lines, and
the belief that the employees guide themselves in their careers.

OBJECTIVE OF CAREER PLANNING

• To attract and retain the right type of person in the organization

• To map out career of employees suitable to their ability and their willingness to be
trained and developed for higher positions
• To have a more stable workforce by reducing labour turnover and absenteeism.
• It contributes to man power planning as well as organizational development and effective
achievement of corporate goals
• To increasingly utilize the managerial talent available at all levels within the organization
• To improve employee morale and motivation by matching skills to job requirement and
by providing opportunities for promotion
• It helps employee in thinking of long term involvement with the organisation
• To provide guidance and encourage employees to fulfill their potentials
• To achieve higher productivity and organizational development
• To ensure better use of human resource through more satisfied and productive employees
• To meet the immediate and future human resource needs of the organisation on the timely
basis

NEED FOR CAREER PLANNING

o To desire to grow and scale new heights.

o Realize and achieve the goals.
o Performance measure.
o High employee turnover
o To educate the employees
 o It motivates employees to grow.
o It motivates employees to avail training and development.
o It increases employee loyalty as they feel organization care’s about them.

CAREER PLANNING AND DEVELOPMENT PROCESS

1. Identifying individual needs and aspirations: It’s necessary to identify and

communicate the career goals, aspiration and career anchors of every employee because
most individuals may not have a clear idea about these. For this purpose, a human
resource inventory of the organization and employee potential areas concerned

2. Analyzing career opportunities: The organizational set up, future plans and career
system of the employees are analyzed to identify the career opportunities available within
it. Career paths can be determined for each position. It can also necessary to analyze
career demands in terms of knowledge, skill, experience, aptitude etc

3. Identifying match and mismatch: A mechanism to identifying congruence between

individual current aspirations and organizational career system is developed to identify
and compare specific areas of match and mismatch for different categories of employees

4. Formulating and implementing strategies: Alternative action plans and strategies for
dealing with the match and mismatch are formulated and implemented

5. Reviewing career plans: A periodic review of the career plan is necessary to know
whether the plan is contributing to effective utilization of human resources by matching
employee objectives to job needs. Review will also indicate to employees in which
direction the organization is moving, what changes are likely to take place and what skills
are needed to adapt to the changing needs of the organization.

Performance Appraisal is the procedure done after the performance of the current year or
by monthly basis also
Potential appraisal is done with the skills which are present in the individual eg:- Leadership
qualities, Communication Skills etc.

POTENTIAL APPRAISAL

Potential Appraisal is the identification of the hidden talents and skills of a person. The person
might or might not be aware of them.
Potential appraisal is a future – oriented appraisal whose main objective is to identify and
evaluate the potential of the employees to assume higher positions and responsibilities in the
organizational hierarchy. Many organization consider and use potential appraisal as a part of the
performance appraisal processes.

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
 2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.

Performance Appraisal Methods

Traditional Methods
1. Critical incident method

This format of performance appraisal is a method which is involved identifying and describing
specific incidents where employees did something really well or that needs improving during
their performance period.

2. Weighted checklist method

In this style, performance appraisal is made under a method where the jobs being evaluated
based on descriptive statements about effective and ineffective behavior on jobs.
3. Paired comparison analysis
This form of performance appraisal is a good way to make full use of the methods of options.
There will be a list of relevant options. Each option is in comparison with the others in the list.
The results will be calculated and then such option with highest score will be mostly chosen.

4. Graphic rating scales

This format is considered the oldest and most popular method to assess the employee’s
performance.
In this style of performance appraisal, the management just simply does checks on the
performance levels of their staff.
5. Essay Evaluation method
In this style of performance appraisal, managers/ supervisors are required to figure out the strong
and weak points of staff’s behaviors. Essay evaluation method is a non-quantitative technique. It
is often mixed with the method the graphic rating scale.

Modern Methods
6. Behaviorally anchored rating scales
This formatted performance appraisal is based on making rates on behaviors or sets of indicators
to determine the effectiveness or ineffectiveness of working performance. The form is a mix of
the rating scale and critical incident techniques to assess performance of the staff.
7. Performance ranking method
The performance appraisal of ranking is used to assess the working performance of employees
from the highest to lowest levels.
Managers will make comparisons of an employee with the others, instead of making comparison
of each employee with some certain standards.
8. Management By Objectives (MBO) method
MBO is a method of performance appraisal in which managers or employers set a list of
objectives and make assessments on their performance on a regular basis, and finally make
rewards based on the results achieved. This method mostly cares about the results achieved
(goals) but not to the way how employees can fulfill them.
9. 360 degree performance appraisal
The style of 360 degree performance appraisal is a method that employees will give confidential
and anonymous assessments on their colleagues. This post also information that can be used as
references for such methods of performance assessments of 720, 540, 180…
10.Forced ranking (forced distribution)
In this style of performance appraisal, employees are ranked in terms of forced allocations.
For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the
highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in
the lowest one.

11. Behavioral Observation Scales

The method based on the scales of observation on behaviors is the one in which important tasks
that workers have performed during their working time will be assessed on a regular basis.

Limitations of performance appraisal methods

1. Halo Effect
The rater may base the full appraisal on the basis or one positive quality which was found out
earlier. For e.g. If a person is evaluated on one quality i.e. emotional stability and if he scores
very high in the case of emotional stability, then the rater may also give him high scores (marks
or grades) for other qualities such as intelligence, creativity etc., even without judging these
characteristics.

2. Problem of Leniency or Strictness

Many raters are too lenient (not strict) in their ratings. High scores may be given to all
employees, even if they have no merit. Also a reverse situation may take place, where all
employees are rated very strictly and very low scores are given.

3. Central Tendency
Sometimes a rater gives only middle range scores to all individuals. Extremely high or low
scores are avoided. This is called Central Tendency.

4. Personal Bias
Performance appriasal is affected by personal bias of the rater. If the rater has good relations
with the ratee (an employee who is getting rated), he may give higher scores to the ratee, even
though the ratee does not deserve such high scores. So personal bias may lead to favoured
treatment for some employees, and bad treatment to others.

5. Paper Work
Some supervisors complain that performance appraisal is pointless paper work. They complain
because many times, performance appraisal reports are found only in the files. It does not serve
any practical purpose. In other words, the performance appraisal reports are not used by some
organisations. They are conducted just as a formality or for the name sake.

6. Fear of Spoiling Relations

Performance appraisal may also affect superior-subordinate relations. An appraisal makes the
superior more of a judge than a coach. So, the subordinate may have a feeling of suspicion and
mistrust, about the superior.

7. Evaluate performance not person

The rater should evaluate the performance, i.e. output, new ideas, extraordinary efforts, etc. and
not the person. In reality, the person is evaluated and not his performance. It should be noted that
failure is an event and a not a person.

8. Horn Effect
Sometimes the raters may evaluate on the basis of one negative quality. This results in overall
lower rating of the particular employee. For e.g. "He does not shave regularly. Therefore, he
must be lazy at work."

9. Spillover Effect
In this case, the present performance appraisal is greatly influenced by past performance. A
person who has not done a good job in the past is considered (assumed) to be bad for doing
present work.
Introduction to Performance Management
Performance management is the process of creating a work environment or setting in which
people are enabled to perform to the best of their abilities. It is the main vehicle by which
managers communicate what is required from employees and give feedback on how well they
are achieving job goals (CIPD, 2009). It brings together many of the elements that make up the
practice of people management, including in particular learning and development. Performance
management establishes shared understanding of what is to be achieved and provides an
approach to leading and developing people that will ensure it is achieved; as such it is an
essential element of your role and will support your relationship with individuals in your team.

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal
where the feedback about the employees’ performance comes from all the sources that come in
contact with the employee on his job.
360 degree appraisal has four integral components:

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

Management By Objectives (MBO) method

MBO is a method of performance appraisal in which managers or employers set a list of
objectives and make assessments on their performance on a regular basis, and finally make
rewards based on the results achieved. This method mostly cares about the results achieved
(goals) but not to the way how employees can fulfill them.

Unit-IV: Compensation and Maintenance

Compensation:
Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
Compensation is a tool used by management for a variety of purposes to further the existance of
the company. Compensation may be adjusted according the the business needs, goals, and
available resources.
Compensation may be used to:
•recruit and retain qualified employees.
•increase or maintain morale/satisfaction.
•reward and encourage peak performance.
•achieve internal and external equity.
•reduce turnover and encourage company loyalty.
•modify (through negotiations) practices of unions.

Components of Employee Remuneration: Base and Supplementary

1. Basic pay
2. Dearness allowance
3. House rental allowance
4. Medical allowance
5. City compensatory allowance
6. Conveyance allowances
7. Incentives
8. Fringe benefits
I. Basic Pay
It is the fixed & primary part of the pay-package.
For Blue-Collared employees, basic wage may be based upon the work done (i.e. piece wage
system)
For White-Collared employees, basic wage is generally time bound (i.e. time wage system)
Factors which determine the basic wage/salary:-
1. Job-Evaluation
2. Demand for & supply of Labor
3. Prevailing wage-rate
4. Statutory requirements (minimum wage-rate)
5. Employer’s ability to pay
II. Allowances/ Supplementary
These allowances ensure the retention and prolonged years of service of am employee in the
same organization, as it provides job & salary satisfaction.
1. Dearness allowance- This allowance is given to deal with the pressure of inflation in the
economy. It protects the real income (what we get in-hand) against inflation.
2. House rental allowance- Those employers who do not provide living accommodation to its
employees, they provide HRA to its employees. It is calculated as a percentage of basic pay.
3. City compensatory allowance- This kind of allowance is generally paid to employees in
Metropolitan Cities or other big cities where Cost of Living is comparatively higher than other
cities.
4. Conveyance allowances- Some employers pay Travelling Allowance to their employees. It is
usually fixed sum, which is paid to cover some part of travelling charges.
5. Incentives- Incentive Compensation is the Performance-Linked remuneration. It is paid with a
view to inspire, encourage & motivate employees to work hard & do better. Incentives can be
both Individual & Group- Based.
6. Fringe Benefits - These are the additional benefits that an employee gets in addition to the
Basic Pay. This is usually paid to Executive-Class Employees.

Job evaluation – concept, process and significance;

JOB EVALUATION
Job evaluation is a process of analyzing and assessing the various jobs systematically to ascertain
their relative worth in an organization.
Jobs are evaluated on the basis of content, placed in order of importance. This establishes Job
Hierarchies, which is a purpose of fixation of satisfactory wage differentials among various jobs.
Jobs are ranked (not jobholders)
Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the basis of
job description and job specification only. Job Evaluation helps to determine wages and salary
grades for all jobs. Employees need to be compensated depending on the grades of jobs which
they occupy.
Clearly remuneration must be based on the relative worth of each job.

SCOPE OF JOB EVALUATION

The job evaluation is done for the purpose of wage and salary differentials, demand for and
supply of labour, ability to pay, industrial parity, collective bargaining etc

PROCESS OF JOB EVALUATION:

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

METHODS OF JOB EVALUATION

A. Analytical Methods
• Point Ranking Methods: Different factors are selected for different jobs with accompanying
differences in degrees and points.
• Factor Comparison Method: The important factors are selected which can be assumed to be
common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is
then taken by adding together all the point values.
B. Non-Analytical Methods
• Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not broken down
into factors etc.
• Job Grading Method: It is based on the job as a whole and the differentiation is made on the
basis of job classes and grades. In this method it is important to form a grade description to cover
discernible differences in skills, responsibilities and other characteristics.

Significance Of Job Evaluation

1. Job evaluation helps to rate the job
Job evaluation is a technique which helps to rate the job in terms of complexities and
importance. It rates the job but the job holder. This helps determining and fixing wages
accordingly.

2. Job evaluation helps to determine pay structure

Job evaluation is a consistent and rational process of determining wages and salary structure for
various level of jobs. Internal and external consistencies are analyzed in order to determine wage
levels.

3. Job evaluation helps in bringing harmonious relation between labor and management
Job evaluation brings harmony and good labor relation through eliminating wage inequalities
within the organization.

4. Job evaluation helps to minimize the cost of recruitment and selection

Job evaluation helps in keeping down the recruitment and selection costs as it assists in retaining
employees. It means, job evaluation inspires for keeping down the labor turnover, as a result of
which there will be less need of new recruitment. Moreover, due to systematic analysis of
various aspects of jobs, recruitment and selection can be made by matching the qualification and
candidate.

Maintenance

Overview of Employee Welfare, Health and Safety, Social security

Organizations provide welfare facilities to their employees to keep their motivation levels high.
The employee welfare schemes can be classified into two categories viz. statutory and non-
statutory welfare schemes. The statutory schemes are those schemes that are compulsory to
provide by an organization as compliance to the laws governing employee health and safety.
These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act
(safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from
organization to organization and from industry to industry.

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

Drinking Water: At all the working places safe hygienic drinking water should be provided.
Facilities for sitting: In every organization, especially factories, suitable seating arrangements are
to be provided.
First aid appliances: First aid appliances are to be provided and should be readily assessable so
that in case of any minor accident initial medication can be provided to the needed employee.
Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office
and factory premises and are also to be maintained in a neat and clean condition.
Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide
hygienic and nutritious food to the employees.
Spittoons: In every work place, such as ware houses, store places, in the dock area and office
premises spittoons are to be provided in convenient places and same are to be maintained in a
hygienic condition.
Lighting: Proper and sufficient lights are to be provided for employees so that they can work
safely during the night shifts.
Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on
the stand pipe are provided in the port area in the vicinity of the work places.
Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth
in the factory area and office premises. Adequate lockers are also provided to the workers to
keep their clothes and belongings.
Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of
water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes:
Personal Health Care (Regular medical check-ups): Some of the companies provide the facility
for extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to
work with flexible working schedules. Flexible work schedules are initiated by employees and
approved by management to meet business commitments while supporting employee personal
life needs
Employee Assistance Programs: Various assistant programs are arranged like external
counseling service so that employees or members of their immediate family can get counseling
on various matters.
Harassment Policy: To protect an employee from harassments of any kind, guidelines are
provided for proper action and also for protecting the aggrieved employee.
Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity
leave policies have also been introduced by various companies.
Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of
employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
Employee Referral Scheme: In several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organization.

For smooth functioning of an organization, the employer has to ensure safety and security of his
employees. Health and safety form an integral part of work environment. A work environment
should enhance the well being of employees and thus should be accident free.
In organizations the responsibility of employee health and safety falls on the supervisors or HR
manager. An HR manager can help in coordinating safety programs, making employees aware
about the health and safety policy of the company, conduct formal safety training, etc. The
supervisors and departmental heads are responsible for maintaining safe working conditions.
Responsibilities of managers:
Monitor health and safety of employees
Coach employees to be safety conscious
Investigate accidents
Communicate about safety policy to employees
Responsibilities of supervisors/departmental heads:
Provide technical training regarding prevention of accidents
Coordinate health and safety programs
Train employees on handling facilities an equipments
Develop safety reporting systems
Maintaining safe working conditions

Social security is primarily a social insurance program providing social protection or protection
against socially recognized conditions, including poverty, old age, disability, unemployment and
others. Social security may refer to:
social insurance, where people receive benefits or services in recognition of contributions to an
insurance program. These services typically include provision for retirement pensions, disability
insurance, survivor benefits and unemployment insurance.
income maintenance, mainly the distribution of cash in the event of interruption of employment,
including retirement, disability and unemployment
services provided by administrations responsible for social security. In different countries this
may include medical care, aspects of social work and even industrial relations.
More rarely, the term is also used to refer to basic security, a term roughly equivalent to access to
basic necessities—things such as food, clothing, housing, education, money, and medical care.

Grievance Redressal Procedure

Grievances are but natural in organisations. However like disciplinary problems, grievances also
benefit none. Hence, there is a need for handling or redressing grievances. For this, most large
organisations in India have, therefore, evolved a formal grievance procedure which enables an
organisation to handle grievances satisfactorily.

The procedure consists of the following stages:

Stage 1:

The worker fills in a grievance form and submits the same to the shift incharge for information
and consideration.

Stage 2:

In case, he is not satisfied with the decision, he goes to the departmental head for the settlement
of his grievance.

Stage 3:

If the aggrieved employee is still dissatisfied, he forwards it to the appropriate chairman of the
zonal works committee (ZWC). Each zonal works committee consists of five management and
five union representatives. Their decision is final and binding on both the parties. The individual
grievances considered by the zonal committee pertain to promotion, suspension, discharge and
dismissal.
Stage 4:

If the zonal committee either does not reach to a unanimous decision or the decision is not
accepted by the employee, the grievance is, then, forwarded to the central works committee. This
committee consists of representatives of top management and union officials. Here also, the
unanimity of principle operators and the decision taken by the committee is binding on both the
parties.

Stage 5:

If this committee also does not reach to an unanimous decision, the matter is referred to the
Chairman of the company. His or her decision is final and is binding on both the parties.

The stage at which the grievance is settled indicates the climate or the spirit that prevails in the
organisation. Obviously, lower the level of settlement, the quicker the redressal of a grievance.
The concerned officer, be the supervisor or manager, remains in a position to “give and take” at
initial lower stages such as stage 1. Gradually, he or she comes under the glare of publicity; his
or her position becomes harder at the subsequent stages.

Viewed from an aggrieved employee’s point, the delay in the settlement of grievance would
intensify his or her anxiety and dissatisfaction. Which, in turn would affect his or her morale and
productivity. The colleagues would also get affected. For the organisation, the delay in
settlement is a loss of goodwill and camaraderie that might have been built up over the period.

Employee participation
Employee participation is the process whereby employees are involved in decision making
processes, rather than simply acting on orders. Employee participation is part of a process of
empowerment in the workplace.

Employee participation is in part a response to the quality movement within organisations.

Individual employees are encouraged to take responsibility for quality in terms of carrying out
activities, which meet the requirements of their customers. The internal customer is someone
within the organisation that receives the 'product of service' provided by their 'supplier' within
the organisation. External customers are buyers and users outside of the organisation. Employee
participation is also part of the move towards human resource development in modern
organisations. Employees are trusted to make decisions for themselves and the organisation. This
is a key motivational tool.

Employee participation is also referred to as employee involvement (EI)

Examples of employee participation include:

i. Project teams or quality circles in which employees work on projects or tasks with
considerable responsibility being delegated to the team.

ii. Suggestion schemes - where employees are given channels whereby they can suggest new
ideas to managers within the organisation. Often they will receive rewards for making
appropriate suggestions.

iii. Consultation exercises and meetings whereby employees are encouraged to share ideas.

iv. Delegation of responsibility within the organisation. In modern organisations ground level
employees have to be given considerable responsibility because they are dealing with customers
on a day-to-day basis often in novel situations. Such employees need to be trusted to make
decisions for themselves.

v. Multi-channel decision making processes. In such situations decisions are not only made in a
downward direction, they also result from communications upwards, sideways, and in many
other directions within the organisation.

Flexi-Time
Flexi time (or flextime, flexi-time, originally derived from the German word Gleitzeit which
literally means "sliding time") is a variable work schedule, in contrast to traditional work
arrangements requiring employees to work a standard 9 a.m. to 5 p.m. day. Its invention is
usually credited to William Henning. Under flextime, there is typically a core period (of
approximately 50% of total working time/working day) of the day, when employees are expected
to be at work (for example, between 11 a.m. and 3 p.m.), while the rest of the working day is
"flexi time", in which employees can choose when they work, subject to achieving total daily,
weekly or monthly hours in the region of what the employer expects, and subject to the
necessary work being done.
A flextime policy allows staff to determine when they will work, while a flex place policy allows
staff to determine where they will work. Its practical realization can mainly be attributed to the
entrepreneur Wilhelm Haller who founded Hengstler Gleitzeit, and later "Inter flex
Datensysteme GmbH" in Southern Germany, where today a number of companies offer Flexi
time (Gleitzeit) solutions which have grown out of his initiative

ESOP
An Employee Stock Ownership Plan (ESOP) is an employee benefit plan which makes the
employees of company owners of stock in that company. Several features make ESOPs unique
as compared to other employee benefit plans. First, only an ESOP is required by law to invest
primarily in the securities of the sponsoring employer. Second, an ESOP is unique among
qualified employee benefit plans in its ability to borrow money. As a result, "leveraged ESOPs"
may be used as a technique of corporate finance.
The benefits for the company include increased cash flow, tax savings, and increased
productivity from highly motivated workers. The main benefit for the employees is the ability to
share in the company's success. Due to the tax benefits, the administration of ESOPs is regulated,
and numerous restrictions apply. It is also called stock purchase plan.

References
Webliography
www.enotesmba.com/p/human-resource-management-notes.html
http://www.managementstudyguide.com/human-resource-
management.htmwww.tutor2u.net/business/people/hrm_introduction.asp
studyvalue.com/_.../_hrm/hrm_planning_and_manpower_13.html
http://hrdictionaryblog.com/2012/10/28/evolution-of-human-resource-management/evolution-of-
hrm-4/#main

Text Books:
1. G. Dessler, Human Resource Management, Pearson Education, 2008
2. Snell et al, Human Resource Management, Cenage Learning(India Edition), 2010
3. V. S.P. Rao, Human Resource Management: Text and Cases, Excel Books, 2007
4. D. Lepak, & M. Gowan, Human Resource Management, Pearson Education,2009