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PROJECT REPORT ON
HUMAN RESOURCE MANAGEMENT ORGANISATION

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY :- TEJAL .R. PAWAR

UNDER GUARDIANS :-
PROF SONAL PUROHIT MAM

Panchavati College of Management and Computer Science,

Nashik
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HUMAN RESOURCE MANAGEMENT ( H R M )

Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment relationships; their quality
contributes to the ability of the organizations and the employees to achieve their objectives.”

Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true, regardless of
the type of the organization – government, business, education, health, recreational, or social
action.”

Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.”

MEANING OF HRM: -

HRM is management function that helps managers to recruit, select, train and develop
members for an organization. Obviously HRM is concerned with the people’s dimensions in
organizations. HRM refers to set of programs, functions, and activities designed and carried
out

Core elements of HRM

• People: Organizations mean people. It is the people who staff and manage
organizations.
• Management: HRM involves application of management functions and principles for
acquisitioning, developing, maintaining and remunerating employees in organizations.
• Integration & Consistency: Decisions regarding people must be integrated and
consistent.
• Influence: Decisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• Applicability: HRM principles are applicable to business as well as non-business
organizations too, such as education, health, recreation and the like.

OBJECTIVES OF HRM: -

1. Societal Objectives: To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative impact of such demands upon the
organization.
2. Organizational Objectives: To recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization with its
primary objectives.
3. Functional Objectives: To maintain department’s contribution and level of services
at a level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least
in so far as these goals enhance the individual’s contribution to the organization. This is
necessary to maintain employee performance and satisfaction for the purpose of maintaining,
retaining and motivating the employees in the organization.

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SCOPE OF HRM: -

From Entry to the Exit of an employee in the organization

Scope of HRM can be described based on the following activities of HRM. Based on these
activities we can summarize the scope of HRM into 7 different categories as mentioned below
after the activities. Lets check out both of them.

HRM Activities – 1.
HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10.Motivation
11.Communication
12.Welfare
13.Safety & Health
14.Industrial Relations

7 Categories of Scope of HRM

1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM

ROLE OF HRM

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

2. Functional Role: The personnel function interprets and helps to communicate

personnel policies. It provides guidance to managers, which will ensure that agreed policies
are implemented.

3. Service Role: Personnel function provides services that need to be carried out by full
time specialists. These services constitute the main activities carried out by personnel
departments and involve the implementation of the policies and procedures described above.
Role of HR Managers (Today)

1. Humanitarian Role: Reminding moral and ethical obligations to employees

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2. Counselor: Consultations to employees about marital, health, mental, physical and

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

Role of HR Managers (Future)

1. Protection and enhancement of human and non-human resources

2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions Social Objectives

(3) Legal Compliance
Benefits
Union Management Relations
Organizational Objectives (7) Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment
Functional Objectives (3) Performance Appraisals
Placement & Orientation
Employee Assessment
Personal Objectives (5) Training & Development
Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union
demands and other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities
and responsibilities for the achievement of organizational goals and objectives. 3.
Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of
employees to follow the path laid-down.

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5. Controlling: Regulating personnel activities and policies according to plans.

Observations and comparisons of deviations

Operational Functions of HRM

1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counseling. 3.
Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee
communication
6. Separations: Managing separations caused by resignations, terminations, lay offs,
death, medical sickness etc.

CHALLENGES OF HRM IN INDIAN ECONOMY or CHALLENGES OF MODERN

MANAGEMENT

1. Globalization: - Growing internationalization of business has its impact on HRM in

terms of problems of unfamiliar laws, languages, practices, competitions, attitudes,
management styles, work ethics and more. HR managers have a challenge to deal with more
functions, more heterogeneous functions and more involvement in employee’s personal life.

2. Corporate Re-organizations: - Reorganization relates to mergers and acquisitions,

joint ventures, take over, internal restructuring of organizations. In these situations, it is
difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations
itself. It is a challenge to manage employees’ anxiety, uncertainties, insecurities and fears
during these dynamic trends.

3. New Organizational forms: - The basic challenge to HRM comes from the changing
character of competitions. The competition is not between individual firms but between
constellations of firm. Major companies are operating through a complex web of strategic
alliances, forgings with local suppliers, etc. These relationships give birth to completely new
forms of organizational structure, which highly depend upon a regular exchange of people
and information. The challenge for HRM is to cope with the implications of these newly
networked relations more and more, in place of more comfortable hierarchical relationships
that existed within the organizations for ages in the past.

4. Changing Demographics of Workforce: - Changes in workforce are largely

reflected by dual career couples, large chunk of young blood between age old superannuating
employees, working mothers, more educated and aware workers etc. These dynamic
workforces have their own implications for HR managers and from HRM point of view is a
true challenge to handle.

5. Changed employee expectations: - With the changes in workforce

demographics, employee expectations and attitudes have also transformed. Traditional
allurements like job security, house, and remunerations are not much attractive today, rather
employees are demanding empowerment and equality with management. Hence it is a
challenge for HRM to redesign the profile of workers, and discover new methods of hiring,
training, remunerating and motivating employees.
6. New Industrial Relations Approach: - In today’s dynamic world, even unions have
understood that strikes and militancy have lost their relevance and unions are greatly affected
by it. The trade union membership has fallen drastically worldwide and the future of labor
movement is in danger. The challenge before HRM is to adopt a proactive industrial relations
approach which should enable HR specialist to look into challenges unfolding in the future
and to be prepared to convert them into opportunities.
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7. Renewed People Focus: - The need of today’s world and business is the people’s
approach. The structure, strategy, systems approach which worked in post war era is no
more relevant in today’s economic environment which is characterized by over capacities and
intense competition. The challenge of HR manager is to focus on people and make them
justifiable and sustainable.

8. Managing the Managers: - Managers are unique tribe in any society, they believe
they are class apart. They demand decision-making, bossism, and operational freedom.
However in the post liberalization era, freedom given to managers is grossly misused to get
rid of talented and hard working juniors. The challenge of HRM is how to manage this tribe?
How to make them realize that the freedom given to them is to enable them make quick
decisions in the interest of the organization and not to resort to witchhunting.

9. Weaker Society interests: - Another challenge for HRM is to protect the interest of
weaker sections of society. The dramatic increase of women workers, minorities and other
backward communities in the workforce has resulted in the need for organizations to
reexamine their policies, practices and values. In the name of global competition, productivity
and quality the interests of the society around should not be sacrificed. It is a challenge of
today’s HR managers to see that these weaker sections are neither denied their rightful jobs
nor are discriminated against while in service.

10.Contribution to the success of organizations: - The biggest challenge to an HR

manager is to make all employees contribute to the success of the organization in an ethical
and socially responsible way. Because society’s well being to a large extent depends on its
organizations.

STRATEGIC HUMAN RESOURCE MANAGEMENT: -

Strategy:
“Strategy is a way of doing something. It includes the formulation of goals and set of action
plans for accomplishment of that goal.”

Strategic Management:
“A Process of formulating, implementing and evaluating business strategies to achieve
organizational objectives is called Strategic Management”

Definition of Strategic Management: -

“Strategic Management is that set of managerial decisions and actions that determine the
long-term performance of a corporation. It includes environmental scanning, strategy
formulation, strategy implementation and evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating

environmental opportunities and threats in the light of a corporation’s strengths and
weaknesses.

Steps in Strategic Management:

1. Environmental Scanning: Analyze the Opportunities and Threats in External

Environment
2. Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses.
It can be done at Corporate level, Business Unit Level and Functional Level.
3. Strategy Implementation: Implement the Strategies
4. Evaluation & Control: Ensure the organizational objectives are met.

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IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT

• Allows identification, prioritization and exploration of opportunities.

• Provides an objective view of management problems.
• Represents framework for improved co-ordination and control
• Minimizes the effects of adverse conditions and changes
• Allows major decisions to better support established objectives
• Allows more effective allocation of time and resources
• Allows fewer resources and lesser time devoted to correcting ad hoc decisions
• Creates framework for internal communication
• Helps to integrate the individual behaviors
• Provides basis for the clarification of responsibilities
• Encourages forward thinking
• Encourages favorable attitude towards change.

ROLE OF HRM IN STRATEGIC MANAGEMENT

Role in Strategy Formulation: HRM is in a unique position to supply competitive

intelligence that may be useful in strategy formulation. Details regarding advanced incentive
plans used by competitors, opinion survey data from employees, elicit information about
customer complaints, information about pending legislation etc. can be provided by HRM.
Unique HR capabilities serve as a driving force in strategy formulation.

Role in Strategy Implementation: HRM supplies the company with a competent and willing
workforce for executing strategies. It is important to remember that linking strategy and HRM
effectively requires more than selection from a series of practice choices. The challenge is to
develop a configuration of HR practice choices that help implement the organization’s strategy
and enhance its competitiveness.
HUMAN RESOURCE DEVELOPMENT
Definition 1: Organizing and enhancing capacities to produce.

HRD is a process of organizing and enhancing the physical, mental and emotional capacities
of individuals for productive work.

Definition 2: Bring possibility of performance and growth

HRD means to bring about the possibility of performance improvement and individual growth.

Human resource development is a process to help people to acquire competencies and to

increase their knowledge, skills and capabilities for better performance and higher
productivity.

Proactive HRD Strategies for long term planning and growth

In today’s fast changing, challenging and competitive environment HRD has to take a
proactive approach that is to seek preventive care in human relations. Using HRD strategies
maximizations of efficiency and productivity could be achieved through qualitative growth of
people with capabilities and potentialities to grow and develop. HRD is always a function of
proper utilization of creative opportunities and available environment through acquisition of
knowledge, skills and attitudes necessary for productive efforts.

Long-term growth can also be planned by creating highly inspired groups of employees with
high aspirations to diversify around core competencies and to build new organizational
responses for coping with change.
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A proactive HRD strategy can implement activities that are geared up and directed at
improving personal competence and productive potentialities of human resources.

Following strategic choices can be considered which would help today’s organizations to
survive and grow.

Change Management: Manage change properly and become an effective change agent
rather than being a victim of change itself.
Values: Adopt proactive HRD measures, which encourage values of openness, trust,
autonomy, proactivity and experimentation.
Maximize productivity and efficiency: Through qualitative growth of people with
capabilities and potentialities to grow and develop thrive to maximize productivity and
efficiency of the organization.
Activities directed to competence building: HRD activities need to be geared up and
directed at improving personal competence and productive potentialities of manpower
resources.

HUMAN RESOURCE PLANNING ( H R P )

Definition 1: - Need, Availability, Supply=Demand
“HRP includes estimation of how many qualified people are necessary to carry out the
assigned activities, how many people will be available, and what, if anything, must be done
to ensure personnel supply equals personnel demand at the appropriate point in the future.”

Definition 2: - Right numbers, Capability, Organization Objectives

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

Definition 3: - Translation of objectives into HR numbers

“HRP is a process of translating organizational objectives and plans into the number of
workers needed to meet those objectives.”

MEANING / PURPOSE OF HRP

• In simple words HRP is understood as the process of forecasting an organization’s future

demand for and supply of the right type of people in the right numbers.
• It is only after HRP is done, that the company can initiate and plan the recruitment and
selection process.
• HRP is a sub-system in the total organizational planning.
• HRP facilitates the realization of the company’s objectives by providing right type and
right number of personnel.
• HRP is important because without a clear-cut manpower planning, estimation of a
organization’s human resource need is reduced to mere guesswork.

NEED & IMPORTANCE OF HRP

Forecast future personnel needs: To avoid the situations of surplus or deficiency of

manpower in future, it is important to plan your manpower in advance. For this purpose a
proper forecasting of futures business needs helps you to ascertain our future manpower
needs. From this angle, HRP plays an important role to predict the right size of manpower in
the organization.

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Cope with change: HRP enables an enterprise to cope with changes in competitive forces,
markets, technology, products and government regulations. Such changes generate changes
in job content, skills demands and number of human resources required.
Creating highly talented personnel: Since jobs are becoming highly intellectual and
incumbents getting vastly professionalized, HRP helps prevent shortages of labor caused by
attritions. Further technology changes would further upgrade or degrade jobs and create
manpower shortages. In these situations only accurate human resource planning can help to
meet the resource requirements. Further HRP is also an answer to the problems of succession
planning.
Protection of weaker sections : A well-conceived personnel planning would also help to
protect the interests of the SC/ST, physically handicapped, children of socially oppressed and
backward classes who enjoy a certain percentage of employments notwithstanding the
constitutional provisions of equal opportunity for all.
International strategies: International expansion strategies largely depend upon effective
HRP. With growing trends towards global operations, the need for HRP further becomes more
important as the need to integrate HRP more closely into the organization keeps growing.
This is also because the process of meeting staffing needs from foreign countries grows in a
complex manner.
Foundation of personnel functions: HRP provides essential information for designing
and implementing personnel functions such as recruitment, selection, personnel
development, training and development etc.
Increasing investments in HR: Another importance is the investment that an organization
makes in human capital. It is important that employees are used effectively throughout their
careers. Because human assets can increase the organization value tremendously as opposed
to physical assets
Resistance to change & move: The growing resistance towards change and move, self
evaluation, loyalty and dedication making it more difficult to assume that organization can
move its employees everywhere. Here HRP becomes very important and needs the resources
to be planned carefully.
Other benefits: Following are the other benefits of HRP.
1. Upper management has a better view of HR dimensions of business
2. Management can anticipate imbalances before they become unmanageable and
expensive.
3. More time is provided to locate talent
4. Better opportunities exists to include women and minorities in future growth plans
5. Better planning of assignments to develop managers
6. Major and successful demands on local labor markets can be made.

HR Plan Implementation: -

A series of action programs are initiated as a part of HR plan implementation as under.

Recruitment & Selection: Employees are hired against the job vacancies. Based on the
manpower demand and supply forecasts made, hiring of employees is initiated based on
supply forecasts. For this internal and external sources of manpower are utilized. A formal
selection board is established to interview and select the best of the candidates for the
required vacancies. Finally the selected employees also need to be placed on proper jobs.
Here some companies recruit employees for specific jobs while others recruit fresh trainees
in large number and train them for future manpower needs.
Training and Development: The training and development program is charted out to cover
the number of trainees, existing staff etc. The programs also cover the identification of
resource personnel for conducting development program, frequency of training and
development programs and budget allocation.
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Retraining and Redeployment; New skills are to be imparted to existing staff when
technology changes or product line discontinued. Employees need to be redeployed to other
departments where they could be gainfully employed.
Retention Plan: Retention plans cover actions, which would reduce avoidable separations
of employees. Using compensation plans, performance appraisals, avoiding conflicts,
providing green pastures etc, can do this.
Downsizing plans: Where there is surplus workforce trimming of labor force will be
necessary. For these identifying and managing redundancies is very essential.
Managerial Succession Planning; Methods of managerial succession plans may vary. Most
successful programs seem to include top managements involvement and commitment, high-
level review of succession plans, formal performance assessment and potential assessment
and written development plans for individuals. A typical succession planning involves
following activities.
• Analysis of demand for managers and professionals
• Audit of existing executives
• Projection of future likely supply from internal and external sources
• Individual career path planning
• Career counseling
• Accelerated promotions
• Performance related training and development
• Strategic recruitment JOB ANALYSIS

JOB:
“Job is a ‘group of tasks to be performed everyday.”

JOB ANALYSIS

Definition 1: (Process of Collecting Information)

“Job Analysis is a process of studying and collecting information relating to operations and
responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’
and ‘Job Specifications’.”

Definition 2: (Systematic Exploration of Activities)

“Job Analysis is a systematic exploration of activities within a job. It is a basic technical
procedure that is used to define duties and responsibilities and accountabilities of the job.”

Definition 3: (Identifying Job Requirements)

“Job is a collection of tasks that can be performed by a single employee to contribute to the
production of some product or service, provided by the organization. Each job has certain
ability requirements (as well as certain rewards) associated with it. Job Analysis is a process
used to identify these requirements.”

MEANING OF JOB ANALYSIS

Job Analysis is a process of collecting information about a job. The process of job analysis
results into two sets of data.
• Job Description
• Job Specification
As a result Job analysis involves the following steps in a logical order.

Steps of Job Analysis

1. Collecting and recording job information
2. Checking the job information for accuracy
3. Writing job description based on information collected to determine the skills,knowledge,
abilities and activities required 4. Updating and upgrading this information

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PURPOSE OF JOB ANALYSIS: -

• Human Resource Planning (HRP): - The numbers and types of personnel are
determined by the jobs, which need to be staffed. Job related information in the form of Job
Analysis serves this purpose or use.
• Recruitment & Selection: - Recruitment precedes job analysis. It helps HR to
locate places to obtain employees. It also helps in better continuity and planning in staffing
in the organization. Also selecting a good candidate also requires detailed job information.
Because the objective of hiring is to match the right candidate for right job
• Training & Development: Training and development programs can be designed
depending upon job requirement and analysis. Selection of trainees is also facilitated by job
analysis.
• Job Evaluation: Job evaluation means determination of relative worth of each job
for the purpose of establishing wage and salary credentials. This is possible with the help of
job description and specifications; i.e. Job Analysis.
• Remuneration: Job analysis also helps in determining wage and salary for all jobs.
Performance Appraisal: Performance appraisal, assessments, rewards,
promotions, is facilitated by job analysis by way of fixing standards of job performance.
Personnel Information: Job analysis is vital for building personnel information
systems and processes for improving administrative efficiency and providing decision
support.
• Safety & Health: Job Analysis helps to uncover hazardous conditions and unhealthy
environmental factors so that corrective measures can be taken to minimize and avoid
possibility of human injury.

PROCESS OF JOB ANALYSIS

Process 1: Strategic Choices Process

2: Collecting Information
Process 3: Processing Information
Process 4: Job Description
Process 5: Job Specification

Strategic Choices: -

Extent of involvement of employees: Extent of employee involvement is a debatable

point. Too much involvement may result in bias in favor of a job in terms of inflating duties
and responsibilities. Too less involvement leads to suspicion about the motives behind the
job. Besides it may also lead to inaccurate information. Hence extent of involvement depends
on the needs of the organization and employee.
Level of details of job analysis: The nature of jobs being analyzed determines the level of
details in job analysis. If the purpose were for training programs or assessing the worth of
job, levels of details required would be great. If the purpose is just clarification the details
required would be less.
Timing and frequency of Job Analysis: When do you do Job Analysis?
• Initial stage, for new organization
• New Job is created
• Changes in Job, Technology and Processes
• Deficiencies and Disparities in Job New compensation plan is introduced
Updating and upgrading is required.
Past-oriented and future-oriented Job Analysis: For rapidly changing organization
more future oriented approach would be desired. For traditional organizations past oriented
analysis would be required. However more future oriented analysis may be derived based
on past data.
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Sources of Job Data: For job analysis number of human and non-human sources is available besides
jobholder himself. Following can be sources of data available for job analysis.
Non-Human Sources Human Sources
Existing job descriptions and Job Analysis
specifications Job Incumbents
Equipment maintenance records Supervisors
Equipment design blueprints Job Experts
Architectural blueprints of work area
Films of employee working
Training manuals and materials
Magazines, newspapers, literatures

Collecting Information: -

Information collection is done on the basis of following 3 parameters

Types of Data for Job Analysis:

• Work Activities (Tasks details)
• Interface with other jobs and equipments (Procedures, Behaviors, Movements)
• Machines, Tools, Equipments and Work Aids (List, Materials, Products, Services)
• Job Context (Physical, Social, Organizational, Work schedule) Personal
Requirement (Skills, Education, Training, Experience)

Methods of Data Collection:

• Observation
• Interview
• Questionnaires
• Checklists
• Technical Conference Diary Methods

Who to Collect Data?

• Trained Job Analysts
• Supervisors
• Job Incumbents

Processing Information: -
Once the job information is collected it needs to be processed, so that it would be useful in
various personnel functions. Specifically job related data would be useful to prepare job
description and specifications, which form the next two processes of job analysis.

BARRIERS OF JOB ANALYSIS

• Support from Top Management

• Single means and source, reliance on single method rather than combination
• No Training or Motivation to Jobholders Activities and Data may be Distorted

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

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Contents of Job Description

1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards
8. Definition of unusual terms

Format of Job Description

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

Features of Good Job Description

1. Up to date
2. Proper Job Title
3. Comprehensive Job Summary
4. Clear duties and responsibilities
5. Easily understandable
6. State job requirements
7. Specify reporting relationships
8. Showcase degrees of difficulties
9. Indicates opportunities for career development
10.Offer bird’s-eye-view of primary responsibilities

JOB SPECIFICATIONS
“Job Specification involves listing of employee qualifications, skills and abilities required to
meet the job description. These specifications are needed to do job satisfactorily.”

In other words it is a statement of minimum and acceptable human qualities necessary to

perform job properly. Job specifications seeks to indicate what kind of persons may be
expected to most closely approximate the role requirements and thus it is basically concerned
with matters of selection, screening and placement and is intended to serve as a guide in
hiring.

Contents of Job Specifications

1. Physical Characteristics
2. Psychological characteristics
3. Personal characteristics
4. Responsibilities
5. Demographic features

Further the job specifications can be divided into three broad categories
Essential Attributes
Desirable Attributes Contra-Indicators – indicators hampering the success of job
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JOB EVALUATION
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. Remuneration also involves fringe benefits, bonus and other benefits.
Clearly remuneration must be based on the relative worth of each job. Ignoring this basic
principle results in inequitable compensation. A perception of inequity is a sure way of de-
motivating an employee.

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)

Scope of Job Evaluation

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

Process of Job Evaluation:

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

Methods of Job Evaluation 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.

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.

Pitfalls of Job Evaluation:

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• Encourages employees on how to advance in position when there may be limited

opportunities for enhancement as a result of downsizing. It promotes internal focus instead
of customer orientation
• Not suitable for forward looking organizations, which has trimmed multiple job titles
into two or three broad jobs.

JOB DESIGN
The Logical Sequence to Job Analysis is Job Design.

Definition 1: Integration of work, rewards and qualification

“Job Design integrates work content (tasks, functions, relationships), the rewards and
qualifications required including skills, knowledge and abilities for each job in a way that
meets the needs of employees and the organization.”

Steps in Job Design: -

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

Factors affecting Job Design: -

Organizational factors:
• Characteristics of Tasks (Planning, Execution and Controlling of Task)
• Work Flow (Process Sequences)
• Ergonomics (Time & Motion Study)
• Work Practices (Set of ways of performing tasks)

Environmental Factors:
• Employee Abilities and Availability Social and Cultural Expectations

Behavioral Elements:
• Feedback
• Autonomy
• Use of Abilities
• Variety

TECHNIQUES OF JOB DESIGN: -

Work Simplification: Job is simplified or specialized. The job is broken down into small parts
and each part is assigned to an individual. To be more specific, work simplification is
mechanical pacing of work, repetitive work processes, working only on one part of a product,
predetermining tools and techniques, restricting interaction amongst employees, few skills
requirement. Work simplification is used when jobs are not specialized.

Job Rotation: When incumbents become bore of routine jobs, job rotation is an answer to
it. Here jobs remain unchanged, but the incumbents shift from one job to another. On the
positive side, it increases the intrinsic reward potential of a job because of different skills and
abilities needed to perform it. Workers become more competent in several jobs, know variety
of jobs and improve the self-image, personal growth. Further the worker becomes more
valuable to the organization. Periodic job changes can improve interdepartmental
cooperation. On the negative side, it may not be much enthusiastic or efficiency may not be
more. Besides jobs may not improve the relationships between task, while activities and
objectives remain unchanged. Further training costs also rise and it can also de-motivate
intelligent and ambitious trainees who seek specific responsibilities in their chosen specialties.
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Job Enlargement: It means expanding the number of tasks, or duties assigned to a given
job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties
to a job does not mean that new skills and abilities are needed. There is only horizontal
expansion. It is with same skills taking additional responsibilities like extending working hours
etc. Job enlargement may involve breaking up of the existing work system and redesigning
a new work system. For this employees also need to be trained to adjust to the new system.
Job enlargement is said to contribute to employee motivation but the claim is not validated
in practice.

Benefits of Job Enlargement:

1. Task Variety
2. Meaningful Work Modules
3. Full Ability Utilization
4. Worker Paced Control
5. Meaningful Performance Feedback

Disadvantages of Job Enlargement

1. High Training Costs
2. Redesigning existing work system required
3. Productivity may not increase necessarily
4. Workload increases
5. Unions demand pay–hike
6. Jobs may still remain boring and routine

Job Enrichment: Job enrichment is improvisation of both tasks efficiency and human
satisfaction by building into people’s jobs, quite specifically, greater scope for personal
achievement and recognition, more challenging and responsible work and more opportunity
for individual advancement and growth. An enriched job will have more responsibility, more
autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more
growth opportunities. The employee does more planning and controlling with less supervision
but more self-evaluation. In other words, transferring some of the supervisor’s tasks to the
employee and making his job enriched.

Benefits of Job enrichment

1. It benefits employee and organization in terms of increased motivation,

performance, satisfaction, job involvement and reduced absenteeism.
2. Additional features in job meet certain psychological needs of jobholders due to
skill variety, identity, significance of job etc.
3. It also adds to employee self-esteem and self-control.
4. Job enrichment gives status to jobholder and acts as a strong satisfier in one’s life.
5. Job enrichment stimulates improvements in other areas of organization.
6. Empowerment is a by-product of job enrichment. It means passing on more
authority and responsibility.

Demerits of Job Enrichment

1. Lazy employees may not be able to take additional responsibilities and power. It
won’t fetch the desired results for an employee who is not attentive towards his
job.
2. Unions resistance, increased cost of design and implementation and limited
research on long term effect of job enrichment are some of the other demerits.
3. Job enrichment itself might not be a great motivator since it is job-intrinsic factor.
As per the two-factor motivation theory, job enrichment is not enough. It should
be preceded by hygienic factors etc.
4. Job enrichment assumes that workers want more responsibilities and those

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workers who are motivated by less responsibility, job enrichment surely de-motivates them
5. Workers participation may affect the enrichment process itself.
6. Change is difficult to implement and is always resisted as job enrichment brings in a
changes the responsibility.

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

A self –directed team is an intact group of employees responsible for whole work segment,
they work together, handle day-to-day problems, plan and control, and are highly effective
teams.

High Performance Work Design: Improving performance in an environment where positive

and demanding goals are set leads to high performance work design. It starts from the
principle of autonomous groups working and developing an approach, which enables group
to work effectively together in situations where the rate of innovation is very high. Operational
flexibility is important and there is the need for employees to gain and apply new skills quickly
with minimum supervision. However due to bureaucracy high performance work design does
not work.

JOB SATISFACTION
Job satisfaction is the result of various attitudes possessed by an employee towards his job,
related factors and life in general. The attitudes related to job may be wages, supervision,
steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of
work, social relations on job, prompt settlement of grievances etc.

In short job satisfaction is a general attitude, which is the result of many specific attitudes in
three areas namely, job factors, individual characteristics and group relationships outside the
job.

Components of Job Satisfaction

Personal factors: Sex, Dependents, Age, Timings, Intelligence, Education and Personality.

Job inherent factors: Type of work, Skills, Occupational status, Geography, Size of plant

Management controlled factors: Security, Payment, Fringe benefits, Advancement

opportunities and Working conditions, Co-workers, Responsibilities, Supervision

Job Satisfaction & Behavior relationship is described through following examples.

Satisfaction & Turnover

Satisfaction & Absenteeism
Satisfaction & Accidents
Satisfaction & Job Performance

RECRUITMENT & SELECTION

RECRUITMENT

Definition Of Recruitment: Finding and Attracting Applications

“Recruitment is the Process of finding and attracting capable applicants for employment. The
Process begins when new recruits are sought and ends when their applications are submitted.
The result is a pool of application from which new employees are selected.”

MEANING OF RECRUITMENT:
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Recruitment is understood as the process of searching for and obtaining applicants for jobs,
from among them the right people can be selected. Though theoretically recruitment process
is said to end with the receipt of applications, in practice the activity extends to the screening
of applications so as to eliminate those who are not qualified for the job.

PURPOSE AND IMPORTANCE OF RECRUITMENT: -

1. Determine the present and future requirements in conjunction with personnel planningand
job analysis activities
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified
orover-qualified applications.
4. Reduce the probability that job applicants once selected would leave shortly
5. Meet legal and social obligations
6. Identify and prepare potential job applicants
7. Evaluate effectiveness of various recruitment techniques and sources for job applicants.

FACTORS GOVERNING RECRUITMENT

External Factors:
• Demand and Supply (Specific Skills)
• Unemployment Rate (Area-wise)
• Labor Market Conditions
• Political and Legal Environment (Reservations, Labor laws)
• Image
Internal Factors
• Recruitment Policy (Internal Hiring or External Hiring?)
• Human Resource Planning (Planning of resources required)
• Size of the Organization (Bigger the size lesser the recruitment problems)
• Cost
• Growth and Expansion Plans

RECRUITMENT PROCESS

Recruitment Planning
• Number of contacts
• Types of contacts
Recruitment Strategy Development
• Make or Buy Employees
• Technological Sophistication
• Where to look
• How to look
Internal Recruitment (Source 1)
• Present employees Employee referrals
• Transfers & Promotions
• Former Employees
• Previous Applicants
• Evaluation of Internal Recruitment
External Recruitment (Source 2)
• Professionals or Trade Associations
• Advertisements
• Employment Exchanges
• Campus Recruitment
• Walk-ins Interviews

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• Consultants
• Contractors
• Displaced Persons
• Radio & Television
• Acquisitions & Mergers
• Competitors
• Evaluation of External Recruitment
Searching
• Source activation
• Selling
• Screening of Applications
Evaluation and Cost Control
• Salary Cost
• Management & Professional Time spent
• Advertisement Cost
• Producing Supporting literature
• Recruitment Overheads and Expenses
• Cost of Overtime and Outsourcing
• Consultant’s fees
Evaluation of Recruitment Process
• Return rate of applications sent out
• Suitable Candidates for selection
• Retention and Performance of selected candidates
• Recruitment Cost
• Time lapsed data
• Image projection

INTERNAL RECRUITMENT
Advantages Disadvantages
1. Less Costly 1. Old concept of doing things
2. Candidates already oriented towards 2. It abets raiding
organization 3. Candidates current work may be
3. Organizations have better knowledge affected
about internal candidates 4. Politics play greater roles
4. Employee morale and motivation is 5. Morale problem for those not enhanced
promoted.

EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Benefits of new skills and talents 1. Better morale and motivation
2. Benefits of new experiences associated with internal recruiting is 3. Compliance with
reservation policy denied
becomes easy 2. It is costly method
4. Scope for resentment, jealousies, and 3. Chances of creeping in false positive heartburn
are avoided. and false negative errors
4. Adjustment of new employees takes longer
time.
SELECTION: MEANING OF

SELECTION:
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Selection is the process of picking up individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. A formal definition of
Selection is as under

Definition of Selection: Process of differentiating

“Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.”

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

Recruitment Selection
1. Recruitment refers to the process of 1. Selection is concerned with picking up
identifying and encouraging prospective 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 negative in its application in as much as many
candidates as possible. it seeks to eliminate as many unqualified applicants as possible
in order to identify the right candidates.

PROCESS / STEPS IN SELECTION

1. Preliminary Interview: The purpose of preliminary interviews is basically to

eliminate unqualified applications based on information supplied in application forms. The
basic objective is to reject misfits. On the other hands preliminary interviews is often called
a courtesy interview and is a good public relations exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests.
There are various types of tests conducted depending upon the jobs and the company. These
tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge
how well an individual can perform tasks related to the job. Besides this there are some other
tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical
Tests, Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here
interview is a formal and in-depth conversation between applicant’s acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel
Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioral Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be
through formal letters, telephone conversations. However it is merely a formality and
selections decisions are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the
selection decision is to be made. The final decision has to be made out of applicants who
have passed preliminary interviews, tests, final interviews and reference checks. The views
of line managers are considered generally because it is the line manager who is responsible
for the performance of the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required
to undergo a physical fitness test. A job offer is often contingent upon the candidate passing
the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. It is made by way of letter of appointment.
8. Contract of Employment: After the job offer is made and candidates accept the
offer, certain documents need to be executed by the employer and the candidate. Here is a

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need to prepare a formal contract of employment, containing written contractual terms of

employment etc.

ESSENTIALS OF A GOOD SELECTION PRACTICE

1. Detailed job descriptions and job specifications prepared in advance and endorsed
bypersonnel and line management
2. Trained the selectors
3. Determine aids to be used for selection process
4. Check competence of recruitment consultants before retention
5. Involve line managers at all stages
6. Attempt to validate the procedure
7. Help the appointed candidate to succeed by training and management development

BARRIERS TO EFFECTIVE SELECTION: -

1. Perception: We all perceive the world differently. Our limited perceptual ability is
obviously a stumbling block to the objective and rational selection of people.
2. Fairness: Barriers of fairness includes discrimination against religion, region, race or
gender etc.
3. Validity: A test that has been validated can differentiate between the employees who
can perform well and those who will not. However it does not predict the job success
accurately.
4. Reliability: A reliable test may fail to predict job performance with precision.
5. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends
and peers to select particular candidate are also barriers to selection.

TRAINING & DEVELOPMENT

Definition of Training & Development: Improve performance
“Training & Development is any attempt to improve current or future employee performance
by increasing an employee’s ability to perform through learning, usually by changing the
employee’s attitude or increasing his or her skills and knowledge.”

MEANING OF TRAINING & DEVELOPMENT: -

The need for Training and Development is determined by the employee’s performance
deficiency, computed as follows.
Training & Development Need = Standard Performance – Actual Performance

We can make a distinction among Training, Development and Education.

Distinction between Training and Education

Training Education
Application oriented Theoretical Orientation
Job experience Classroom learning
Specific Task in mind Covers general concepts
Narrow Perspective Has Broad Perspective Training is Job Specific
Education is no bar

Training: Training refers to the process of imparting specific skills. An employee undergoing
training is presumed to have had some formal education. No training program is complete
without an element of education. Hence we can say that Training is offered to operatives.
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Education: It is a theoretical learning in classrooms. The purpose of education is to teach

theoretical concepts and develop a sense of reasoning and judgment. That any training and
development program must contain an element of education is well understood by HR
Specialists. Any such program has university professors as resource persons to enlighten
participants about theoretical knowledge of the topics proposed to discuss. In fact
organizations depute or encourage employees to do courses on part time basis. CEOs are
known to attend refresher courses conducted by business schools. The education is more
important for managers and executives rather than low cadre workers. Anyways education is
common to all employees, their grades notwithstanding.

Development: Development means those learning opportunities designed to help employees

to grow. Development is not primarily skills oriented. Instead it provides the general
knowledge and attitudes, which will be helpful to employers in higher positions. Efforts
towards development often depend on personal drive and ambition. Development activities
such as those supplied by management development programs are generally voluntary in
nature. Development provides knowledge about business environment, management
principles and techniques, human relations, specific industry analysis and the like is useful
for better management of a company.

Objectives of (MDP) Management Development Programs OR Advantages of

Development

1. Making them
• Self-starters
• Committed
• Motivated
• Result oriented
• Sensitive to environment
• Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instill zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

Difference between Training and Development

Training Development
Training is skills focused Development is creating learning abilities Training is
presumed to have a formal Development is not education dependent education
Training needs depend upon lack or Development depends on personal drive
deficiency in skills and ambition
Trainings are generally need based Development is voluntary
Training is a narrower concept focused Development is a broader concept on job
related skills focused on personality development
Training may not include development Development includes training wherever
necessary
Training is aimed at improving job Development aims at overall personal related efficiency
and performance effectiveness including job efficiencies

What are the Training Inputs?

• Skills
• Education
• Development
• Ethics

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• Problem Solving Skills

• Decision Making
• Attitudinal Changes

Importance of Training & Development

• Helps remove performance deficiencies in employees
• Greater stability, flexibility and capacity for growth in an organization
• Accidents, scraps and damages to machinery can be avoided
• Serves as effective source of recruitment
• It is an investment in HR with a promise of better returns in future
• Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Need of Training Individual level

• Diagnosis of present problems and future challenges
• Improve individual performance or fix up performance deficiency
• Improve skills or knowledge or any other problem
• To anticipate future skill-needs and prepare employee to handle more challenging tasks
To prepare for possible job transfers
Group level
• To face any change in organization strategy at group levels
• When new products and services are launched To avoid
scraps and accident rates

Identification of Training Needs (Methods)

Individual Training Needs Identification

1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification

1. Organizational Goals and Objectives

2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification

1. Trainers can be informed about the broader needs in advance

2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done
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Methods of Training

On the Job Trainings: These methods are generally applied on the workplace while
employees is actually working. Following are the on-the-job methods.
Advantages of On-the-Job Training:
It is directly in the context of job
It is often informal
It is most effective because it is learning by experience
It is least expensive
Trainees are highly motivated
It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

Trainer may not be experienced enough to train
It is not systematically organized
Poorly conducted programs may create safety hazards

On the Job Training Methods

1. Job Rotation: In this method, usually employees are put on different jobs turn by
turn where they learn all sorts of jobs of various departments. The objective is to give a
comprehensive awareness about the jobs of different departments. Advantage – employee
gets to know how his own and other departments also function. Interdepartmental
coordination can be improved, instills team spirit. Disadvantage – It may become too much
for an employee to learn. It is not focused on employees own job responsibilities. Employees
basic talents may remain under utilized.
2. Job Coaching: An experienced employee can give a verbal presentation to explain
the nitty-gritty’s of the job.
3. Job Instruction: It may consist an instruction or directions to perform a particular
task or a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships: Generally fresh graduates are put under the experienced employee
to learn the functions of job.
5. Internships and Assistantships: An intern or an assistants are recruited to perform
a specific time-bound jobs or projects during their education. It may consist a part of their
educational courses.

Off the Job Trainings: These are used away from work places while employees are not
working like classroom trainings, seminars etc. Following are the off-the-job methods;
Advantages of Off-the-Job Training:
Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value Disadvantages
of Off-the-Job Training:
It is not directly in the context of job
It is often formal
It is not based on experience
It is least expensive
Trainees may not be highly motivated It
is more artificial in nature

Off the Job Training Methods

1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a large
audience. Advantage – It can be used for large groups. Cost per trainee is low. Disadvantages
– Low popularity. It is not learning by practice. It is One-way communication. No authentic
feedback mechanism. Likely to boredom.

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2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc.
Advantages – Wide range of realistic examples, quality control possible,. Disadvantages –
One-way communication, No feedback mechanism. No flexibility for different audience.
3. Simulation: creating a real life situation for decision-making and understanding the
actual job conditions give it. Following are some of the simulation methods of trainings
a. Case Studies: It is a written description of an actual situation and trainer is supposed
to analyze and give his conclusions in writing. The cases are generally based on actual
organizational situations. It is an ideal method to promote decision-making abilities within
the constraints of limited data.
b. Role Plays: Here trainees assume the part of the specific personalities in a case study
and enact it in front of the audience. It is more emotional orientation and improves
interpersonal relationships. Attitudinal change is another result. These are generally used in
MDP.
c. Sensitivity Trainings: This is more from the point of view of behavioral assessment,
under different circumstances how an individual will behave himself and towards others.
There is no preplanned agenda and it is instant. Advantages – increased ability to empathize,
listening skills, openness, tolerance, and conflict resolution skills. Disadvantage – Participants
may resort to their old habits after the training.
4. Programmed Instructions: Provided in the form of blocks either in book or a
teaching machine using questions and Feedbacks without the intervention of trainer.
Advantages – Self paced, trainees can progress at their own speed, strong motivation for
repeat learning, material is structured and self-contained. Disadvantages – Scope for learning
is less; cost of books, manuals or machinery is expensive.
5. Computer Aided Instructions: It is extension of PI method, by using computers.
Advantages – Provides accountabilities, modifiable to technological innovations, flexible to
time. Disadvantages – High cost.
6. Laboratory Training

Barriers to Effective Training:

1. Lack of Management commitment
2. Inadequate Training budget
3. Education degrees lack skills
4. Large scale poaching of trained staff
5. Non-coordination from workers due to downsizing trends
6. Employers and B Schools operating distantly
7. Unions influence

How To Make Training Effective?

1. Management Commitment
2. Training & Business Strategies Integration
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting Learning as Fundamental Value
6. Creations of effective training evaluation system

INDUCTION & ORIENATION

Definition 1: Planned Introduction
“It is a Planned Introduction of employees to their jobs, their co-workers and the organization
per se.”

Orientation conveys 4 types of information:

1. Daily Work Routine
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2. Organization Profile
3. Importance of Jobs to the organization
4. Detailed Orientation Presentations

Purpose of Orientation
1. To make new employees feel at home in new environment
2. To remove their anxiety about new workplace
3. To remove their inadequacies about new peers
4. To remove worries about their job performance
5. To provide them job information, environment

Types of Orientation Programs

1. Formal or Informal
2. Individual or Group
3. Serial or Disjunctive

Prerequisites of Effective Orientation Program

1. Prepare for receiving new employee
2. Determine information new employee wants to know
3. Determine how to present information
4. Completion of Paperwork

Problems of Orientations
1. Busy or Untrained supervisor
2. Too much information
3. Overloaded with paperwork
4. Given menial tasks and discourage interests
5. Demanding tasks where failure chances are high
6. Employee thrown into action soon
7. Wrong perceptions of employees

What is the difference between induction and orientation?

Induction referred to formal training programs that an employee had to complete before they
could start work
Orientation was the informal information giving that made the recruit aware of the comfort
issues - where the facilities are, what time lunch is and so forth.

How long should the induction process take?

It starts when the job ad is written, continues through the selection process and is not
complete until the new team member is comfortable as a full contributor to the organization's
goals.

The first hour on day one is a critical component - signing on, issuing keys and passwords,
explaining no go zones, emergency procedures, meeting the people that you will interact with
all have to be done immediately. Until they are done the newcomer is on the payroll, but is
not employed.

After that it is a matter of just in time training - expanding the content as new duties are
undertaken.

We only employ new people one at a time - how can we induct them?

There are some issues, which cannot wait - they vary according to your situation. Perhaps a
buddy system on the job may be the best way to deal with these. Other subjects may be

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incorporated with refresher training for current staff, or handled as participant in an outside
program. Perhaps some can wait until there are groups of people who have started in the
last few months.

This may take some creative thinking, but the answer is quite simple - until the new people
are integrated then they are less useful. The math is often amazingly simple - not taking the
time to train consumes more time than the training would.
What levels of staff need induction?

Everybody. The CEO needs to know different things to the temporary concierge, but everyone
needs a planned program of induction and orientation.

PLACEMENT

Placement is allocation of people to jobs. It is assignment or reassignment of an employee to

a new or different job.

MULTI SKILLING

Multi Skilling is The Integrated Skills Program that has been developed to build on the existing
skills of the current work force to reduce redundancies and avoid downsizing situations. The
objective of this program is to gain total integration of skills.

The program is based around ‘on-the-job’ & ‘off-the-job’ competence. That is the ability to
do the job on the shop floor (training to gain work experience) and ‘off-the-job’ (training in
the classroom) to gain underpinning knowledge.

The program requires the individual to demonstrate competence in a number of different

skills and this competence is measured and assessed on the job.

Multi-skilling of course works best with more advanced skilled workers because their
individual skills levels are developed enough where they can fluidly transition from one skill
to the next without degradation of a skills performance. If you are multi-skilling and a great
percentage of your workers are having problems executing one of the skills effectively it is
probably a good signal you need to go back to basics with that skill and pull it out of the
multi-skilling sequences. Another advantage of multi-skilling is the positive effect of what is
called "contextual learning". Contextual learning involves discovery and improvement from
two skills, which don't, on the surface, appear to have a direct relationship.

The disadvantages of multi-skilling include the obvious danger of moving on to quickly toward
advanced skills and combinations without sufficiently drilling basic skills. While there is a
great desire to learn quickly I think this is one of the reason we are seeing better skilled from
some of the best workers. The consequence is that we become "partially skilled". The greater
the number of partial skills we develop, the less chance we ever have of reaching our full
potential.

PERFORMANCE APPRAISALS
Definition 1: Systematic Evaluation
“It is a systematic evaluation of an individual with respect to performance on the job and
individual’s potential for development.”
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Definition 2: Formal System, Reasons and Measures of future performance

“It is formal, structured system of measuring, evaluating job related behaviors and outcomes
to discover reasons of performance and how to perform effectively in future so that employee,
organization and society all benefits.”

Meaning of Performance Appraisals

Performance Appraisals is the assessment of individual’s performance in a systematic way. It

is a developmental tool used for all round development of the employee and the organization.
The performance is measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, cooperation, judgment,
versatility and health. Assessment should be confined to past as well as potential performance
also. The second definition is more focused on behaviors as a part of assessment because
behaviors do affect job results.

Performance Appraisals and Job Analysis Relationship

Job Analysis Performance Standards Performance Appraisals

Describe the work and Translate job requirements Describe the job relevant
personnel requirement of into levels of acceptable or strengths and weaknesses a
particular job. unacceptable performance of each individual.

Objectives of Performance Appraisals

Use of Performance Appraisals
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs8. Feedback & Grievances

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4 Goals of Performance Appraisals

General Goals Specific Goals

Developmental Use Individual needs
Performance feedback
Transfers and Placements
Strengths and Development needs
Administrative Decisions / Uses Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification
Organizational Maintenance HR Planning
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs
Documentation Validation Research
For HR Decisions
Legal Requirements

Performance Appraisal Process

1.Objectives definition of appraisal
2. Job expectations establishment
3. Design an appraisal program
4. Appraise the performance
5. Performance Interviews
6. Use data for appropriate purposes
7. Identify opportunities variables
8. Using social processes, physical processes, human and computer assistance
Difference between Traditional and Modern (Systems) approach to Appraisals

Categories Traditional Appraisals Modern, Systems

Appraisals
Guiding Values Individualistic, Control Systematic,
oriented, Documentary Developmental, Problem
solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low Rewards Individualistic Grouped, Organizational

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of performance
appraisals. Each of the methods is effective for some purposes for some organizations only.
None should be dismissed or accepted as appropriate except as they relate to the particular
needs of the organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.

• Past Oriented Methods

• Future Oriented Methods
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Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance, attitude
etc. Each scales ranges from excellent to poor. The total numerical scores are computed and
final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of
job can be evaluated, large number of employees covered, no formal training required.
Disadvantages – Rater’s biases

2. Checklist: Under this method, checklist of statements of traits of employee in the

form of Yes or No based questions is prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation. Advantages – economy, ease of
administration, limited training required, standardization. Disadvantages – Raters biases, use
of improper weighs by HR, does not allow rater to give relative ratings

3. Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is forced
to make a choice. HR department does actual assessment. Advantages – Absence of personal
biases because of forced choice. Disadvantages – Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered around a high point on
a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is
assumed that the performance is conformed to normal distribution. Advantages – Eliminates
Disadvantages – Assumption of normal distribution, unrealistic, errors of central tendency.

5. Critical Incidents Method: The approach is focused on certain critical behaviors of

employee that makes all the difference in the performance. Supervisors as and when they
occur record such incidents. Advantages – Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of
subordinate improvement are high. Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too much and may appear to
be punishment.

6. Behaviorally Anchored Rating Scales: statements of effective and ineffective

behaviors determine the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee performance. Advantages – helps
overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating
techniques.

7. Field Review Method: This is an appraisal done by someone outside employees’ own
department usually from corporate or HR department. Advantages – Useful for managerial
level promotions, when comparable information is needed, Disadvantages – Outsider is
generally not familiar with employees work environment, Observation of actual behaviors not
possible.

8. Performance Tests & Observations: This is based on the test of knowledge or

skills. The tests may be written or an actual presentation of skills. Tests must be reliable and
validated to be useful. Advantage – Tests may be apt to measure potential more than actual
performance. Disadvantages – Tests may suffer if costs of test development or administration
are high.

9. Confidential Records: Mostly used by government departments, however its

application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;

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attendance, self expression, team work, leadership, initiative, technical ability, reasoning
ability, originality and resourcefulness etc. The system is highly secretive and confidential.
Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is
highly subjective and ratings can be manipulated because the evaluations are linked to HR
actions like promotions etc.

10.Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of performing jobs, strengths and
weaknesses and training needs of the employee. Advantage – It is extremely useful in filing
information gaps about the employees that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing skills of rater and most of them are
not good writers. They may get confused success depends on the memory power of raters.

11.Cost Accounting Method: Here performance is evaluated from the monetary returns
yields to his or her organization. Cost to keep employee, and benefit the organization derives
is ascertained. Hence it is more dependent upon cost and benefit analysis.

12.Comparative Evaluation Method (Ranking & Paired Comparisons): These are

collection of different methods that compare performance with that of other co-workers. The
usual techniques used may be ranking methods and paired comparison method.

• Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to administer
and explanation.
• Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the help
of a formula as under. N x (N-1) / 2

Future Oriented Methods

1. Management By Objectives: It means management by objectives and the performance

is rated against the achievement of objectives stated by the management.
MBO process goes as under.
• Establish goals and desired outcomes for each subordinate
• Setting performance standards
• Comparison of actual goals with goals attained by the employee
• Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-
term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess employees

potential for future performance rather than the past one. It is done in the form of in-depth
interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and
other personal characteristics affecting his performance. This approach is slow and costly and
may be useful for bright young members who may have considerable potential. However
quality of these appraisals largely depend upon the skills of psychologists who perform the
evaluation.

3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assessees are
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requested to participate in in-basket exercises, work groups, computer simulations, role

playing and other similar activities which require same attributes for successful performance
in actual job. The characteristics assessed in assessment center can be assertiveness,
persuasive ability, communicating ability, planning and organizational ability, self confidence,
resistance to stress, energy level, decision making, sensitivity to feelings, administrative
ability, creativity and mental alertness etc. Disadvantages – Costs of employees traveling
and lodging, psychologists, ratings strongly influenced by assessee’s inter-personal skills.
Solid performers may feel suffocated in simulated situations. Those who are not selected for
this also may get affected.

Advantages – well-conducted assessment center can achieve better forecasts of future

performance and progress than other methods of appraisals. Also reliability, content validity
and predictive ability are said to be high in assessment centers. The tests also make sure
that the wrong people are not hired or promoted. Finally it clearly defines the criteria for
selection and promotion.

4. 360-Degree Feedback: It is a technique which is systematic collection of

performance data on an individual group, derived from a number of stakeholders like
immediate supervisors, team members, customers, peers and self. In fact anyone who has
useful information on how an employee does a job may be one of the appraisers. This
technique is highly useful in terms of broader perspective, greater self-development and
multi-source feedback is useful. 360-degree appraisals are useful to measure inter-personal
skills, customer satisfaction and team building skills. However on the negative side, receiving
feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be
less adept at providing balanced and objective feedback.

Ethics of Performance Appraisals / Legally defensible Performance Appraisals

Ethics of Procedures

1. Formal Standardized Performance Appraisal Systems

2. Uniform to all employees, no illegal differentiations based on cast, religion etc.
3. Standards formally communicated to all employees
4. Freedom to review performance appraisal results
5. Formal appeal process about ratings and judgments
6. Written instructions and training to raters
7. All personal decision makers should be aware of anti-discrimination laws.

Ethics of Contents

1. Content based on job analysis

2. Traits based appraisals should be avoided
3. Objectively verifiable data should be used
4. Constraints on performance beyond control should be prevented
5. Specific job related dimensions to be used rather than single or global dimensions.
6. Dimensions must be assigned weight to reflect relative importance in performance score

Ethics of Documentation of Results

1. A thoroughly written record of evidence leading to termination should be maintained

2. Written documentation of extreme ratings should be maintained 3. Documentation
should be consistent among the raters.

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Ethics of Raters

1. The raters should be trained in how to use an appraisal system

2. The rater must have opportunity to observe ratees first hand and review importantratee
performance products.
3. Use of more than one rater is desirable to reduce biases.

Organizational Support Factors for Performance Appraisal Systems

Performance appraisal serves many organizational objectives and goals. Besides encouraging
high level of performance, the evaluation system is useful in identifying employees with
potential, rewarding them equitably, and determining employee needs for development. All
these activities are instrumental in achieving corporate plans and longterm growth, typical
appraisal system in most organizations have been focused on shortterm goals only.

From the strategic management point of views, organizations can be grouped under 3
different categories as defenders, prospectors and analyzers.

Defenders: They have narrow and stable product market domain. They don’t need to make
any adjustment in technology, structure or methods of operations etc. They devote entire
attention on improving existing operations. Because of emphasis on skill building successful
defenders use appraisals as means for identifying training needs. It is more behavior oriented.
Prospectors: They continuously search for new products and opportunities. They experiment
regularly to new and emerging trends. They more focus on skills identification and acquisition
of human resources from external sources prospectors often use appraisals for identifying
staffing needs. The focus is on results.
Analyzers: They operate in two type of product domain markets. One is stable and other is
changing. They watch their competitors closely and rapidly adopt the ideas that are
promising. They use cost effective technologies for stable products and matrix technologies
for new products. Analyzers tend to emphasize on skills building and skills acquisitions and
employ extensive training programs. Hence they use appraisal more for training and staffing
purposes.

However performance appraisal systems has strategic importance in three different ways.
Feedback Mechanism: Performance evaluation is the central mechanism that not only
provides feedback to individuals but also aids in the assessment of the progress of
organization as a whole. Without appraisals managers of any firm can only guess as to
whether or not employees are working towards realization of the organization goals.
Consistency between strategy and job behavior: Performance appraisal not only is a
means of knowing if the employee behavior is consistent with the overall strategies focus but
also a way of bringing to the fore any negative consequence of the strategy – behavior fit.
Thus the performance appraisal system is an important mechanism to elicit feedback on the
consistency of the strategy – behavior link.
Consistency between Values and Job Behavior link: Performance evaluation is a
mechanism to reinforce values and culture of the organization. Another importance is to align
appraisal with organizational culture.

Thus the purpose of performance evaluation is to make sure that employee’s goals,
employees behavior and feedback of information about performance are all linked to the
corporate strategy.

Essentials of a Good Performance Appraisal System:

1. Standardized Performance Appraisal System
2. Uniformity of appraisals
3. Defined performance standards
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4. Trained Raters
5. Use of relevant rating tools or methods
6. Should be based on job analysis
7. Use of objectively verifiable data
8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.
9. Consistent Documentations maintained
10.No room for discrimination based on cast, creed, race, religion, region etc.

Problems of Rating:
1. Leniency & Severity
2. Central Tendency
3. Halo Error
4. Rater Effect
5. Primacy & Recency Effect
6. Perceptual Sets
7. Performance Dimensions Order
8. Spillover Effects
9. Status Effect

INCENTIVES BASED COMPENSATION

Incentives are monetary benefits paid to workmen in recognition of their outstanding
performance. They are defined as variable rewards granted according to variations in the
achievement of specific results.

Advantages of Incentive based compensations

1. Incentives are important for inducement and motivation of workers for higher
efficiency and greater output.
2. Employee earnings go up
3. Enhanced standard of livings of employees 4. Reduction in total unit cost of
production,
5. Productivity increases.
6. Production capacity is also likely to increase
7. Reduced supervision
Disadvantages of Incentive based compensation

1. Tendency of quality of products deteriorated due to increased output and low cost
2. Employees may oppose introduction of new machines
3. Workers demand for minimum wage limit may go up due to high incentive earnings
4. Sometimes employees may disregard security regulations due to payment by
results approach adopted for higher incentive figures
5. Overworking may affect employee health
6. Employee jealousies with respect to high and low performers

HUMAN RESOURCE AUDIT

Nature of HR Audit

HR Audit is a tool for evaluating the personnel activities of an organization. The audit may
include one division or entire company. It gives feedback about HR functions to operating
managers and HR specialists. It also shows how well managers are meeting HR duties.

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In short HR audit is an overall control check on HR activities in a division or a company and

evaluation of how these activities support organization’s strategy.

Basis of HR Audit (Personnel Research)

1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisor’s effectiveness
5. Industrial settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10.High accident frequency surveys

Benefits of HR Audit

1. Identification of contributions of HR department

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

Scope and Types of HR Audit

HR Audit must cover the activities of the department and extend beyond because the people
problems are not confined to HR department alone. Based on this HR audit can be spread
across following four different categories.

• Human Resource Function Audit

• Managerial Compliance Audit
• Human Resource Climate Audit
Employee Turnover
Absenteeism
Accidents
Attitude Surveys
• HR - Corporate Strategy Audit

Approaches to HR Audit

1. Comparative Approach (Benchmarking with another company)

2. Outside Authority Approach (Outside consultants’ standards)
3. Statistical Approach (Statistical measures and tools)
4. Compliance Approach (Legal and company policies)
5. Management By Objectives Approach (Goals & Objectives based)
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MOTIVATION THEORIES
Performance is a function of ability and motivation. P = f (A x M)

Definition 1: Choices among voluntary activities

A process governing choices made by persons or lower organisms among alternative forms
of voluntary activity

Definition 2: Arouse enthusiasm to pursue

A result of internal and external processes to the individual that arouse enthusiasm and
persistence to pursue a certain course of action

Definition 3: Need that activates behavior

A process that starts with a physiological deficiency or need that activates behavior or a drive
that is aimed at a goal or an incentive.

Meaning of Motivation

Motivation is a set of forces that cause people to behave in certain ways.

Motivation Process (6 Steps)

1. Individual Needs
2. Search for ways to satisfy needs
3. Goal & Objectives directed
4. Increased performance
5. Receiving rewards or punishment
6. Reassessment of needs

Criticality of Motivation to Managers

Importance of Motivation
• Motivation helps employees find new ways of doing a job
• Motivation makes employees quality conscious
• Motivation increases productivity very high
• Motivation stimulates both participation and production at work
• Motivation comprehends jobs related behaviors
• Motivation increases attention towards human resources along with physical resources

Challenges of Motivation
• Diverse and changing workforce
• Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies
• Motives can only be inferred, not seen
• Dynamic nature of human needs

Objectives of Motivation
High productivity
Increase quality consciousness
Stimulate participation at work

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WORKERS’ PARTICIPATION IN MANAGEMENT

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

Definition 1: Association of Workers in decision-making process

Workers’ participation may be taken to cover all terms of association of workers and their
representatives with the decision-making process, ranging from exchange of information,
consultations, decisions and negotiations to more institutionalized forms such as the presence
of the workers’ members on management or supervisory boards or even management by
workers themselves.

Scope of workers’ participation

Scope of workers participation ranges over three managerial decision-making stages. Social
Decisions: Hours of work, welfare measures, work rules, safety, health, sanitation and noise
control.
Personnel Decisions: Recruitment and selection, promotions and transfers, grievance
settlements, work distribution
Economic Decisions: Methods of manufacturing, automation, lay offs, shut-downs, mergers
and acquisitions and other financial aspects.

Methods of Workers’ Participation in Management

1. Board Level
2. Ownership
3. Complete Control
4. Staff Councils
5. Joint Councils
6. Collective Bargaining
7. Job Enlargement and Enrichment
8. Suggestion Schemes
9. Quality Circles
10.Empowered Teams
11.Total Quality Management
12.Financial Participation

Prerequisites of Successful Participation

1. Clearly defined and complementary Objectives
2. Free flow of information and communication
3. Representatives of workers from workers themselves
4. Outside trade union participation should be avoided
5. Workers’ education and training
6. No threat by participation
7. Association at all levels of decision-making

Benefits of Participation
1. Gives identity to an employee
2. Motivates employee
3. Self-esteem, job satisfaction and cooperation improves
4. Reduced conflicts and stress
5. More commitment to goals
6. Less resistance to change
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7. Less labor problems

8. Better quality suggestions expected
UNIONS
Employee associations are popularly known as unions. However these unions are not confined
to only strikes and negotiations. Their role is much wider than this. Unions make their
presence felt in recruitment and selection, promotions, training, termination or lay off. Many
programs, which contribute to the Quality of Work Life (QWL) and productivity, are
undertaken by management in consultation with and with the cooperation of the unions.
Unions also participate in deciding wage and salary structure and negotiate revisions once in
3 or 5 years.

Trade unions are voluntary organizations of workers or employers formed to promote their
interests through collective action. Trade unions Act 1926 defines a trade union as a
combination, whether temporary or permanent formed primarily for the purpose of regulating
the relation between
1) Workmen and Employers
2) Workmen and Workmen
3) Employers and Employers
For imposing restrictive conditions on the conduct of any trade or business and includes any
federation of two or more trade unions

Why do employees join Trade Unions?

To protect themselves against exploitation by management
By force
Dissatisfaction
Lack of Power
Union Instrumentality

ROLE OF CONSTRUCTIVE AND POSITIVE UNION

Unions have a crucial role to play in Industrial Relations. Unions have following broad role or
objectives as mentioned below.
• To redress the bargaining advantage of the individual worker vis-à-vis the individual
employer, by substituting joint or collective action for individual action.
• To secure improved terms and conditions of employment for its members and the
maximum degree of security to enjoy these terms and conditions.
• To obtain improved status for the worker in his work or her work
• To increase the extent to which unions can exercise democratic control over decisions,
which affect their interests by power sharing at the national, corporate and plant
levels.

The union power is exerted primarily at two levels. Industry level to establish joint regulation
on basic wages and hours with an employer’s association. Plant level, where the shop
stewards organizations exercise joint control over some aspects of the organization of work
and localized terms and conditions of employment.

Unions are party to national, local and plant level agreements, which govern their actions to
a greater or lesser extent, depending on their power and on local circumstances.

UNFAIR LABOR PRACTICES

Industrial Disputes Act 1947 specifies the following as unfair labor practices
• To interfere, restrain, coerce workmen in the exercise of their right to organize, form,
join or assist a trade union.

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• Threatening workmen with discharge or dismissal

• Threatening of lockout or closure
• Granting wage increases to undermine trade union efforts
• To dominate, interfere with or support financially or socially by taking active interest
in forming own trade union, and
• Showing partiality or granting favor to one of several trade unions to a nonrecognized
trade union
• To establish employer sponsored trade unions
• To encourage or discourage memberships in any trade union by discriminating
workman by punishing or discharging, changing seniority ratings, refuse promotions,
giving unmerited promotions, discharging union office bearers
• To discharge or dismiss workmen by victimizing, not in good faith, implicating in
criminal case, for patently false reasons
• To abolish work of a regular nature
• To transfer workmen
• To show favoritism or partiality
• To replace workers
• To recruit workmen during legal strikes
• To indulge in acts of violence or force
• To refuse collective bargaining
• Proposing and continuing lockouts