Unit -4

Staffing and Control

Meaning of staffing :-
 Staffing is that part of management concerned with
obtaining, utilizing, and maintaining capable people to fill
all positions in the organization from top level to bottom
level.
 It involves the scientific and systematic procurement,
allocation, utilization, conservation, and development of
human resources.
 It is the art of acquiring, developing, and maintaining a
satisfactory and satisfied workforce.

 Staffing is that function by which a manager
builds an organization through the
recruitment, selection, and development of
the individual, which also includes a series of
activities.
 It ensures that the organization has the right
number of people and the right kind of people
at the right places, at the right time, and
performing the right thing
Definitions of Staffing
“The managerial function of staffing involves
manning the organizational structure through
the proper and effective selection, appraisal,
and development of personnel to fill roles
designed into the structure.”-Koontz and O’
Donell
“Staffing is the function by which managers
build an organization through the recruitment
, selection and development of individuals as
capable employees.”-Mc Farland
Importance of Staffing
Filling job with competent personnel:
• Staffing involves proper arrangement of people through
proper recruitment and selection process.
• It helps with obtaining competent staff for various jobs.
Better performance:
• The performance of an organization depends on the quality
of persons employed in the organization.
• The function of staffing is significant because it ensures
higher performance by putting the right person in the right
job at the right time.
Survival and growth:
• Staffing is a very important
function of management in comparison to
other functions because all the functions of an
organization are performed by the people.
• Competent and efficient workers bring an
organization into existence and ensure its
survival and growth.
Optimum utilization of human resources:
• The staffing process helps to ensure optimum
use of human resources by avoiding
overstaffing.
• It prevents the underutilization of personnel
and higher labor cost.
• It also helps in avoiding disruption of work by
indicating in advance the shortage of
personnel.
Improve job satisfaction and morale:
• Proper staffing improves job satisfaction and
morale of employees through objective
assessment and fair rewarding for their
contribution.
• It provides right kind of work atmosphere
and culture to employees
Features of Staffing
Staffing is an integral part of management:
Staffing is an integral part of management
because an organization cannot exist without
human resources.
Pervasive:
It is pervasive because staffing is performed by all
managers at all levels and in every department.
Continuous Process:
Staffing is a continuous process because it
continues throughout the life of the
organization. It is required to meet the growing
needs of an organization.
Deals with a human being:
Staffing deals with people because it is
concerned with the people at work and their
relationships
Wide scope:
Staffing has a wide scope because it includes a
series of activities, like workforce planning,
recruitment, selection, and training.
Multiple objective activity:
It is a multiple objective activity because it has
to fulfill its responsibility towards the
organization, employees and society.
Steps in Staffing Process
• Staffing is a complicated process, and it involves
various steps,
• It starts with workforce planning, and ends with the
proper recruitment of the employees.
• It also checks the performance of the employees
effectively.
• For successful staffing in an organisation, a manager
has to perform various steps of staffing that are as
follows:
1. Planning the Manpower Requirements:
• The very first step of staffing is to evaluate
the manpower requirement of an
organisation to match the job and positions
available in the organisation.
• It also helps in determining the skills and
qualifications required for a specific job in the
organisation
2. Recruitment of Employees:
• Once the requirement is evaluated, the next step
involves the searching of prospective persons who
are eligible for the job and inviting applicants to
apply for the positions.
• In this process, the employer advertises about the
openings in the organisation through various
media, which makes it easy for the applicants to
get to know about the job vacancy and the
required skills.
3.Selection of Employees:
• The selection process helps in screening the
employees and identifying the deserving
candidate who will be suitable for a specified
job.
• Therefore, it can be said that the main
objective of selection is to identify the right
employee for the right job.
4. Orientation and Placement:
• Once the right candidates are selected, the
organization makes the employees familiar
with the working units and working
environments through various orientation
programs.
• Then, the placement is done by putting the
right candidate at the right place which helps
in the proper functioning of the organisation.
5.Training and Development:
• Once the placement is done, the next step
involves the training and development of
employees.
• Training is an integral part of the staffing
process, and it helps the employees to
develop their skills and knowledge.
6. Remuneration to Employees:
It is the compensation given to the employees in
monetary terms in exchange for the work they
do for the organization.
It is given according to work done by the
employees.
7.Performance Evaluation:
• It is an assessment done to evaluate the attitude, behavior, and
performance of an employee.
• These steps of staffing also help in determining the success of
the whole recruitment process.
• It gives the management a clear picture of the success rate of
the entire recruitment procedure.
• This step includes elements like appraisal, promotion, and
transfer.
• The performance of the employee is assessed comparatively to
the other employees and also to his own previous performance.
• Based on these criteria, the employee gets a
hike on his pay or a promotion.
• Sometimes, employees are transferred to
another location of the same company and
are generally attached with a level up in his
position or given certain benefits.
8. Promotion of Employees:
• Promotion in simple words means the shifting of an
employee to a higher post demanding a more
significant responsibility.
• It not only makes the employee responsible but also
keeps him motivated to do his work efficiently.
• With the promotion, the monetary benefits that the
employee receives are also increased, which makes
him more efficient to complete the work on time.
9. Transfer of Employees:
• As promotion is shifting of the employee to a
higher post, transfer refers to the shifting of
employees to a different unit or department
being in the same position
• This is done to develop new skills and
knowledge of the employee.
 Recruitment
• Edwin Flippo defined”Recruitment as the process of searching for
prospective employees and stimulating them to apply for jobs in
the Organization.”
• Recruitment involves estimating the available vacancies and
making suitable arrangements for their selection and
appointment.
• In order to attract people for the jobs, the Organization must
communicate the position in such a way that job seekers respond.
• To be cost effective, the recruitment process should attract
qualified applicants and provide information for unqualified
persons to self-select themselves out.
.
• Thus, the recruitment process begins when
new recruits are sought and ends when their
applications are submitted. The result is a pool
of applicants from which new employees are
selected
Purpose and importance:
Some of the most important purposes could be as follows:
1. To determine the present and future requirements of the
organization in conjunction with the personnel planning and
job analysis activities.
2. To enhance the pool of potential job aspirants with minimal
cost.
3. To enhance the success rate of the selection process by reducing
the number of, under-qualified or overqualified job applicants.
4. To effectively reduce the probability of job applicants, once
recruited and selected, will leave the organization only after a
short period of time.
5. To meet the organization’s legal and social
obligations regarding the composition of its
workforce.
6. To start identifying and preparing potential job
applicants who will be appropriate candidates.
7. To increase organizational and individual
effectiveness in the short and long-term.
8. To evaluate the effectiveness of various recruiting
techniques and sources for all types of job
applicants.
9. To support and form the basis of the
manpower retention plan of the organization.
10. To form the basis of the manpower
development process by hiring the future
talents.
SOURCES OF RECRUITMENT
The various sources of recruitment can be
broadly classified into two categories:
A. Internal Recruitment
B. External Recruitment.
Internal Sources:
• Internal sources of recruitment consist of personnel
already working in the enterprise.
• Many organizations fill job vacancies through
promotions and transfer of existing staff and it also
refers to filling open jobs with the current
employees of the organisation.
• It is a process designed to create sufficient interest
among the current employees to cause them to
formally indicate an interest in a given position
• . The position applied for may represent a promotion,
transfer or even demotion in the organisation.
The main sources of internal recruitment are as follows;
1. Present Employee:
• The most common source of internal recruitment is
through existing employees of organization.
• Generally, the organisation maintains the inventories of
qualifications to choose employees for suitable
vacancies.
• . Promotions and transfers from present employees are
example of internal sources of recruitnement.
2. Employees Referrals:
• It is also a good source of internal recruitment.
• Employee develops good prospects for their families
and friends by acquainting them with the
advantages of a job with the company furnishing
letters of introduction and even encouraging them
to apply.
• This source is an effective source of recruiting
because many qualified people are reached at a
very low cost to the organisation.
• A major limitation of employee’s referrals is that the
referred individuals are likely to be similar in type to
those who are already working in the organisation.
• 3. Former Employees:
• Former employees are another internal source of
recruitment.
• Some retired employees may be willing to come
back to work on a part time basis or recommend
someone who would be interested in working for
the company.
• Sometimes people who have left the company
for some reason or the other are willing to
come back and work.
• An advantage of this source is that the
performance of these people is already
known.
Merits of Internal Sources:
a) It keeps employees happy and in high morale.
b) It creates a sense of security among employee.
c) Employees know that they stand the chance of promotion
to higher positions. This induces them to work harder so as
to prove their worth.
d) Internal recruitment ensures continuity of employment
and organizational stability.
e) Prospects of transfer to new posts inspire employees to
keep on adding to their knowledge and experience which
leads to their development.
• f) Filling of vacancies from internal source is
quite economical and convenient. No time and
money is to be spent on advertisement, tests
and interview because the knowledge and skill
of employees are already known. There is no
need for orientation of employees for
preparing them for the new job.
Demerits of Internal sources:
a) Existing employees may not be fully qualified for the new job.
Required talent may not be available among the present staff.
b) All vacancies cannot be filled through internal sources. The
enterprise has to depend upon outside sources for entry level
jobs.
c) Internal candidates become accustomed to the company’s
work patterns and as such may lack originality and fresh
outlook. Therefore, internal recruitment involves in breeding
of ideas.
d) This method narrows the choice and denies the outsiders an
opportunity to prove their worth.
External Sources;
1. Advertising:
• Advertising in newspapers and journals is the most
popular source of recruitment from outside.
• It is a very convenient and economical method for
different types of personnel.
• Detailed information can be given in the advertisement
to facilitate self-screening by the candidates.
• If necessary, the enterprise can keep its identity secret
by giving a post box number.
2. Educational Institutions:
• Universities, colleges and institutes of higher education
have become a popular source of recruitment of
recruitment for engineers, scientists,. Management
trainees, technicians, etc.
• Business concerns may hold campus interviews and select
students for final interview at their offices.
• Universities and institutes generally run placement
bureaus to assist in recruiting students.
• But educational institutions provide only young and
inexperienced candidates.
3. Personnel Consultants:
• A consulting firm is a specialized agency which helps client
companies in recruiting personnel.
• .It serves as an intermediary between the enterprise and the
job seekers.
• On a requisition form a client company, it advertises the
vacancy and receives applications.
• It may pass on the applications to the client company or may
conduct tests and interview of the candidates,
• It charges fee from the client company.
• This source is generally used for recruiting executives.
4. Jobbers and Contractors:
• These are sources of recruitment for unskilled and manual
labour.
• They have close links with towns and villages for this
purpose
5. Employment Exchanges:
• Public employment exchanges are important sources of
recruitment of personnel.
• Job seekers register their names with these exchanges.
• Employers notify job vacancies to these exchanges that
pass on the names of suitable candidates to the employers.
6. Leasing:
• This method is often used by public sectors organizations.
• Under it personnel from civil services, defense services and
private sector are employed for specific periods due to
shortage of managerial personnel.
7. Unsolicited Applicants:
• Due to unemployment problem in India business concerns
receive a large number of unsolicited candidates at the main
gate or through mail.
• Such jobseekers may be considered for causal vacancies or
for preparing a waiting list for future use.
Merit of External sources:
a)Wide choice:
The enterprise can choose the best personnel from among a
large number of applicants.
b) Fresh Outlook:
Candidates recruited from external sources bring originality and
fresh viewpoint.
They are free from the in-built preferences and prejudices.
c) Varied Experience:
The enterprise can secure candidates with varied and broader
experience.
Demerits of External sources:
a)Danger of Maladjustment:
• Some candidates chosen from outside may fail to adjust
themselves to new environment.
• They may be irritable, quarrelsome or suspicious.
• They may have to be terminated and replaced.
b) Expensive:
• Greater time and money have to be spent on advertising, tests
and interviews of external candidates, cost of inductions of new
personnel.
c) Heart-burning: External recruitment creates heart-burning and
demoralization among the existing personnel.
d) Sense of Insecurity: Recruitment from outside
creates a sense of insecurity among the
present staff. The staff may refuse to co-
operate fully with the enterprise.
a. Job Requisition The first essential step is job requisition, which
gives the recruiting agency information regarding each job
• Qualifications required of the job;
• general educational qualifications and technical, whichever
specified;
• Specific skill, ability or aptitude (if) required has to be
determined and laid down to help chose the right selection test;
• Previous job experience if required to put premium on
continuity;
• Personal and physical attributes desired; and
• ;Age and domicile requirements if any
b. Designing Application Forms
• Application forms may be designed to procure
the required information from applicants, as
per job descriptions and specifications.
• A well designed application form is a
prerequisite for the success of the recruitment
process
c. Advertisement
• The recruiting agency notifies vacancies to identified
sources through well- articulated advertisements.
• Care should be taken in drafting advertisements as
well, as there are legal implications inherent.
• Advertisement is an attempt to secure best talents for
the post and fulfill constitutional requirements of
giving equal opportunity to all eligible candidates.
• Advertising does not imply an obligation that the post
will be filled
d. Scrutiny of Applications
• The next stage is scrutiny of applications.
• The purpose of scrutiny is to sift out less
desirable candidates.
• Scrutiny of eligible candidates can ensure if
information required of a candidate is complete
and whether he fulfils all requisite criteria of
eligibility apart from meeting essential
minimum prescribed qualifications
e. Selection
• The recruiting agency arranges an examination
or interview or both, to select the suitable
candidate(s).
• After selection, a list of selected candidates is
prepared in the order of merit and published.
• The list generally contains more names than the
actual number of vacancies as sometimes some
candidates may not join for some reason.
f. Communication
• Letter of appointment is issued after selection.
• It is a communication to the employee that she/he has been
selected for the job.
• The appointment letter, depending on the rules of the
organisation, is subject to police report and medical
examination.
• The same should be drafted carefully as conditions of service of
an employee are governed by the communication in the
appointment letter or service rules specified therein.
• Many legal complications can be avoided if appointment letters
are drafted and issued carefully.
g. Placement
The progress of the new employee is observed during the
probation period and followed by confirmation of
service of the employee, if found fit.
According to Flippo, (1976) the success in the function of
recruitment can be judged by a number of criteria:
(1) the number of applicants;
(2) the number of offers made;
(3) the number of hiring; and
(4) the number of successful placements.
Selection
• Selection is the process of picking or choosing the right
candidate, who is most suitable for a vacant job position in
an organization.
• In others words, selection can also be explained as the
process of interviewing the candidates and evaluating their
qualities, which are required for a specific job and then
choosing the suitable candidate for the position.
• The selection of a right applicant for a vacant position will
be an asset to the organization, which will be helping the
organization in reaching its objectives
Meaning of selection
Employee selection is a process of putting a right
applicant on a right job.
Selection of an employee is a process of
choosing the applicants, who have the
qualifications to fill the vacant job in an
organization.
.
Advantages of Selection
• A good selection process offers the following
advantages−
• It is cost-effective and reduces a lot of time and effort.
• It helps avoid any biasing while recruiting the right
candidate.
• It helps eliminate the candidates who are lacking in
knowledge, ability, and proficiency.
• It provides a guideline to evaluate the candidates further
through strict verification and reference-checking.
• It helps in comparing the different candidates
in terms of their capabilities, knowledge, skills,
experience, work attitude, etc.
A good selection process helps in selecting
the best candidate for the requirement of a
vacant position in an organization.
Procedure of selection
• There can be no standard procedure to select
different types of employees or to be adopted by all
concerns.
• In practice, selection procedure differs from job to
job and from organization to organization.
• In some cases, selection is a very simple and one-
step process.
• But in many cases, it is quite complex and time
consuming.
• The main steps in selection procedure may be as
follows:
1. Preliminary interview
2. Application blank
3. Selection tests
4. Employment interview
5. Checking of references
6. Physical examination
7. Final approval.
1.Preliminary Interview:
• The purpose of preliminary interview is to eliminate the totally
unsuitable candidates.
• It is generally brief and may take place across the counter in
the employment office of the company.
• It consists of a short exchange of information regarding the
candidate’s age, qualifications experience and interests, it
helps to determine whether it is worthwhile for the candidate
to fill in an application form.
• It saves the expense of processing unsuitable candidates and
saves the candidate from the trouble of passing through the
long procedure.
2. Application Blank:
• Candidate who get through the preliminary interview are
asked to fill up a blank application form specially designed
to obtain the required information about the candidate.
• Different types of application forms are used by different
organizations and for different jobs.
• As far as possible, the application should be brief and
simple.
• It should elicit only such information which is relevant for
the job concerned.
3. Selection Tests:
• Tests have become an important device in the
process of selection.
• These are used for efficient performance of
the job.
• Several types of tests are used to measure
such skills and abilities which are needed in
practice for screening applicants.
4. Employment Interview:
• Personal interview is perhaps the most widely used
method for selecting employees
• . The main purposes of employment interview are:
• (a) to check the information obtained in earlier steps,
• (b) to seek more information about the candidate,
• (c) to test the qualities of the candidate, and
• (d) to inform the candidate about the job and the
organization
5. Checking References:
• Candidates are usually required to provide some references,
i.e. names of person whom inquiries as to his educational
background, experience, ability, character, etc., could be
addressed.
• A referee can be a useful source of information in case he is
sufficiently knowledgeable and truthful.
• He may be the previous employer or teacher of the candidate.
• Before making final selection, the enterprise may contact the
references to seek information on the candidate’s ability and
integrity
6. Group Discussion:
• This method is being increasing used for the selection
of executives and civil servants.
• Under this method, several candidates are brought
together and given a topic for discussion.
• Interviewers sit at the back and observe how each
candidate participates in the discussion.
• This method reveals personality characteristics,
communication skills, ability to get on with others,
ability to appreciate others ideas, etc.
7. Physical Examination:
• Physical or medical examination of candidate is carried
out to ascertain his physical fitness for the job.
• It can vary from a simple check of physical appearance
and will being to a very comprehensive examination.
• Some companies accept the medical certificate obtained
by a candidate from a qualified physician.
• Other requires the candidate to pass the fitness test
conducted by an expert appointed by the organization.
8. Final Approval:
• After screening the candidates a list of suitable
candidates is prepared.
• The list is sent to the line manager who
requisitioned the personnel.
• He gives the final approval.
• The candidates formally approved by the manager
concerned are appointed by issuing appointment
letter and concluding service agreements
Types of Tests
(i) Aptitude tests
(ii) Achievement tests
(iii) Situational tests
(iv) Interest testsand
(v) Personality tests.
(i) Aptitude Tests:
• These tests measure whether an individual
has the capacity or latent ability to learn a
given job if given adequate training.
• Aptitudes can be divided into general and
mental ability or intelligence and specific
aptitudes such as mechanical, clerical,
manipulative capacity etc.
(a) Intelligence Tests:
• These tests in general measure intelligence
quotient of a candidate.
• In detail these tests measure capacity for
comprehension, reasoning, word fluency,
verbal comprehension, numbers, memory
and space.
(b) Mechanical Aptitude Tests:
• These tests measure the capacities of spatial
visualisation, perceptual speed and knowledge
of mechanical matter.
• These tests are useful for selecting
apprentices, skilled, mechanical employees,
technicians, etc.
(c) Psychomotor Tests:
• These tests measure abilities like manual
dexterity, motor ability and eye-hand co-
ordination of candidates.
• These tests are useful to select semi-skilled
workers and workers for repetitive operations
like packing and watch assembly
(d) Clerical Aptitude Tests:
• Measure specific capacities involved in office
work.
• Items of this test include spelling,
computation, comprehension, copying, word
measuring, etc.
(ii) Achievement Tests:
• These tests are conducted when applicants
claim to know something as these tests are
concerned with what one has accomplished.
• These tests are more useful to measure the
value of specific achievement when an
organisation wishes to employ experienced
candidates.
These tests are classified into:
(a) Job knowledge test, and
(b) Work sample test.
(a) Job Knowledge Test:
• Under this test a candidate is tested in the knowledge of a
particular job.
• For example, if a junior lecturer applies for the job of a
senior lecturer in commerce, he may be tested in job
knowledge where he is asked questions about
Accountancy Principles, Banking, Law, Business
Management, etc.
(b) Work Sample Test:
• Under this test a portion of the actual work is
given to the candidate as a test and the
candidate is asked to do it.
• If a candidate applies for a post of lecturer in
Management he may be asked to deliver a
lecture on Management Information System
as work sample test.
(iii) Situational Test:
• This test evaluates a candidate in a similar real life
situation.
• In this test the candidate is asked either to cope with the
situation or solve critical situations of the job.
(a) Group Discussion:
• This test is administered through group discussion
approach to solve a problem under which candidates are
observed in the areas of initiating, leading, proposing
valuable ideas, conciliating skills, oral communicating
skills, coordinating and concluding skills.
(b) In Basket:
• Situational test is administered through in basket.
• The candidate, in this test, is supplied with actual
letters, telephone and telegraphic message, reports
and requirements by various officers of the
organisation, adequate information about the job and
organisation.
• The candidate is asked to take decisions on various
items based on the in basket information regarding
requirements in the memoranda
(iv) Interest Test:
• These tests are inventories of the likes and
dislikes of candidates in relation to work, job,
occupations, hobbies and recreational activities.
• The purpose of this test is to find out whether a
candidate is interested or disinterested in the
job for which he is a candidate and to find out
in which area of the job range/occupation the
candidate is interested.
(v) Personality Tests:
• These tests prove deeply to discover clues to an
individual’s value system, his emotional reactions
and maturity and characteristic mood.
• They are expressed in such traits like self-confidence,
tact, emotional control, optimism, decisiveness,
sociability, conformity, objectivity, patience, fear,
distrust, initiative, judgment dominance or
submission, impulsiveness, sympathy, integrity,
stability and self-confidence.
(a) Thematic Apperception Test (TAT):
• Candidates are shown a series of pictures and are asked to
write a story based on these pictures.
• This test measured candidates’ conceptual, imaginative,
projective and interpretative skills.
(b) Ink-Blot Test:
• The Rorschach Inkblot test was first described in 1921.
• The candidates are asked to see the ink-blots and make
meaningful concepts out of them.
• The examiner keeps a record of the responses, time taken,
emotional expressions and other incidental behaviours.
Different Types of Interviews
1. Structured interviews
• They are usually those interview processes
where everything is organized.
• The employer has a fixed set of questions that
he asks all the candidates.
• This help employers grade the candidates
without being biased as they’ve to answer the
same question which is not experienced based.
2. Unstructured Interviews (Non-Directive Interviews)
• Unlike structured interviews, unstructured interviews
are open-ended and the interviewer does not have a
predetermined set of questions to ask the candidate.
• The interviewer instead relies on a conversational
approach to assess the candidate’s skills, experience, and
fit for the role.
• This type of interview is designed to provide a more
informal and relaxed atmosphere, allowing the interviewer
to gain a better understanding of the candidatr’s
personality and potential.
3. Situational Interviews
• Situational interviews are those types of interviews in
which the interviewer presents the candidate with a
hypothetical situation related to the role they are
applying for and asks them how they would respond.
• The interviewer then assesses the candidate’s problem-
solving and decision-making skills, as well as his ability
to handle pressure and respond to challenges in the
workplace.
• The goal of a situational interview is to gauge his ability
to apply his skills and experience to real-life scenarios
4. Informational Interviews
• An informational interview is an informal conversation
with someone who works in the field or industry a
candidate is interested in.
• He can use it to gain firsthand insights into what a
particular job entails and learn valuable career advice.
• Informational interviews are a chance for the
candidate to ask questions, assess which career path
may be best for him, and make networking
connections that could benefit his job search.
5. Screening Interviews
• Screening interviews are brief conversations that aim
to determine if a job candidate has the qualifications
and characteristics the employer is looking for.
• It typically takes place over the phone or via video
call, usually with a recruiter or hiring manager.
During the interview, he will be asked questions about
his background and experience, motivation for
applying for the role, and skills relevant to the job.
6. Traditional Interviews
• Traditional interviews are one of the more common types of
interviews and typically occur in person.
• They involve a series of questions about the candidate’s
background, skills, and experience that allow the employer to
better understand his fit for the role.
• Additionally, he will be asked behavioral questions to assess
how he would handle certain situations on the job as well as
problem-solving scenarios.
• To make a good impression in a traditional interview, it is
important to come prepared with questions to ask the
interviewer.
7. Group Interviews & Panel Interviews
• Group interviews and panel interviews are
similar in that more than one interviewer is
present.
• In a group interview, multiple candidates will
answer questions asked by the recruiter or
hiring manager at the same time
Training
Training refers to the teaching and learning
activities carried on for the primary purpose of
helping members of an organization acquire
and apply the knowledge, skills, abilities, and
attitudes needed by a particular job and
organization.
• According to Edwin Flippo, ‘training is the act of increasing
the skills of an employee for doing a particular job’.
IMPORTANCE OF TRAINING:
1. Increased Productivity:
• It improves performance.
• Better skilled workers increase quantity and improve
quality of output. Wastages are reduced.
• It reduces the learning time with the resultant
productivity.
2. Improvement in Employee Morale:
• Training improves needed skills, which build up
confidence and satisfaction.
• This, in turn, develops enthusiasm and pride, which are
indicative of high morale.
3. Better Safety:
• More accidents are caused by deficiencies in people
than by deficiencies in equipment and working condition.
• Proper training with emphasis upon selected safety
points reduces accidents.
4. Reduced Supervision:
• Untrained personnel are a source of constant worry
to the immediate supervisor.
• Once he acquires the requisite skill he is entitled to
lesser close supervision.
5. Personal Growth:
The training programmes give the participants a wider
awareness, a sense of self-satisfaction and
fulfillment, an enlightened philosophy and a value
system that are the apex to the personal growth.
6. Ensure better Placement:
• Training helps in spotting out promising men and in locating
mistakes in selection.
• Promising trainee will be discovered from his quick
understanding of instructions.
7. Organizational Stability:
• Training and development programmes foster the initiative
and creativity of employees, which increases a sense of
belonging, thus preventing manpower obsolescence.
• There is no greater organizational asset than that of trained
and motivated personnel.
STEPS FOR TRAINING AND DEVELOPMENT PROCESSES ARE
Step
1. Identifying Training Needs:
Training need is a difference between standard performance
and actual performance.
Hence, it tries to bridge the gap between standard
performance and actual performance.
The gap clearly underlines the need for training of
employees.
Hence, under this phase, the gap is identified in order to
assess the training needs.
Step 2. Establish Specific Objectives:
• After the identification of training needs, the most
crucial task is to determine the objectives of training.
• Hence, the primary purpose of training should focus
to bridge the gap between standard performance
and actual performance.
• This can be done through setting training objectives.
• Thus, basic objective of training is to bring proper
match between man and the job.
Step 3. Select Appropriate Methods:
• Training methods are desired means of attaining
training objectives.
• After the determination of training needs and
specification of objectives, an appropriate training
method is to be identified and selected to achieve
the stated objectives.
• There are number of training methods available
but their suitability is judged as per the need of
organizational training needs.
Step 4. Implement Programs:
• After the selection of an appropriate method, the actual
functioning takes place.
• Under this step, the prepared plans and programs are
implemented to get the desired output.
• Under it, employees are trained to develop for better
performance of organizational activities.
Step 5. Evaluate Program:
• It consists of an evaluation of various aspects of training in order
to know whether the training program was effective.
• In other words, it refers to the training utility in terms of effect of
training on employees’ performance.
Step 6. Feedback:
• Finally, a feedback mechanism is created in order to
identify the weak areas in the training program and
improve the same in future.
• For this purpose, information relating to class
room, food, lodging etc., are obtained from
participants.
• The obtained information, then, evaluated, and
analyzed in order to mark weak areas of training
programs and for future improvements.
METHODS OF TRAINING:
On-the-job Training Method and Off-the-Job Methods
ON-THE-JOB TRAINING (OJT) METHODS:
This is the most common method of training in which a trainee is placed
on a specific job and taught the skills and knowledge necessary to
perform it.
1. Job rotation:
• This training method involves movement of trainee from one job to
another gain knowledge and experience from different job
assignments.
• This method helps the trainee understand the problems of other
employees.
• 2. Coaching: Under this method, the trainee is
placed under a particular supervisor who
functions as a coach in training and provides
feedback to the trainee. Sometimes the trainee
may not get an opportunity to express his ideas.
• 3. Job instructions: Also known as step-by-step
training in which the trainer explains the way of
doing the jobs to the trainee and in case of
mistakes, corrects the trainee.
• 4. Committee assignments: A group of trainees are
asked to solve a given organizational problem by
discussing the problem. This helps to improve
team work.
• 5. Internship training: Under this method,
instructions through theoretical and practical
aspects are provided to the trainees. Usually,
students from the engineering and commerce
colleges receive this type of training for a small
stipend.
ADVANTAGES OF ON THE JOB TRAINING
• 1. Improve Productivity
Training improves the productivity of employees. Because when
the employees are well-trained they know what to do? and
How to do?. So, training improves the productivity of the
employees.
2. Multi-Skill Training makes the employees multi-skilled.
During the training, employees learn multiple skilled. which make
them more skilled and multi-skilled as well.
3. Quick Learning On the job training provides the learning
environment to the trainees. which make them more quick
learner.
4. Make Systematic Approach
On the job training make the systematic approach in the
organization.because that time they know the right
approach of the organization
DISADVANTAGES OF ON JOB TRAINING:
1. Problem in Production
On job training create problems during the production of
finish goods, because trainees ask the queries during
production which distract the worker.
So, on the job training create problems during production.
2. Costly
On Job training method is costly in the sense that
the workers are disturbed by training activities.
3. Possibility of Accidents
When the trainees work on the floor the risk of
accidents increases because that time they will
not be aware with the dangerous machine that
can be harmful.
2. OFF-THE-JOB METHODS:
• On the job training methods have their own
limitations, and in order to have the overall
development of employee’s off-the-job
training can also be imparted.
• The methods of training which are adopted for
the development of employees away from the
field of the job are known as off-the-job
methods.
The following are some of the off-the-job techniques:
1. Case study method:
• Usually case study deals with any problem
confronted by a business which can be solved by
an employee.
• The trainee is given an opportunity to analyse the
case and come out with all possible solutions.
• This method can enhance analytic and critical
thinking of an employee.
2. Incident method:
• Incidents are prepared on the basis of actual
situations which happened in different
organizations and each employee in the training
group is asked to make decisions as if it is a real-
life situation.
• Later on, the entire group discusses the incident
and takes decisions related to the incident on
the basis of individual and group decisions.
3. Role play:
• In this case also a problem situation is
simulated asking the employee to assume the
role of a particular person in the situation.
• The participant interacts with other
participants assuming different roles.
• The whole play will be recorded and trainee
gets an opportunity to examine their own
performance.
4. In-basket method:
• The employees are given information about an
imaginary company, its activities and products,
HR employed and all data related to the firm.
• The trainee (employee under training) has to
make notes, delegate tasks and prepare
schedules within a specified time.
• This can develop situational judgments and
quick decision making skills of employees.
5. Business games:
• According to this method the trainees are
divided into groups and each group has to
discuss about various activities and functions of
an imaginary organization.
• They will discuss and decide about various
subjects like production, promotion, pricing etc.
• This gives result in co-operative decision making
process.
6. Grid training:
• It is a continuous and phased programme lasting for six years.
• It includes phases of planning development, implementation
and evaluation. The grid takes into consideration parameters
like concern for people
7. Lectures:
• This will be a suitable method when the numbers of trainees
are quite large.
• Lectures can be very much helpful in explaining the concepts
and principles very clearly, and face to face interaction is very
much possible.
8. Simulation:
Under this method an imaginary situation is created and
trainees are asked to act on it. For e.g., assuming the role
of a marketing manager solving the marketing problems or
creating a new strategy etc.
9. Management education:
• At present universities and management institutes gives
great emphasis on management education
• Many management Institutes provide not only degrees
but also hands on experience having collaboration with
business concerns.
10. Conferences:
• A meeting of several people to discuss any
subject is called conference.
• Each participant contributes by analyzing and
discussing various issues related to the topic.
Everyone can express their own view point.
ADVANTAGES OR BENEFITS OF OFF THE JOB TRAINING
1. Effective Method
Off the job training is well organized and conducted by
experts and specialists which makes the training
program more effective.
2. High Productivity
It is conducted outside the organization or workstation
and trainees are not involved in the production process.
Only trained and skilled workers are placed at the work
place. So, productivity will be higher.
3. Minimize Errors
Under this method, newly appointed employees are
trained outside the production area and skilled and
trained manpower perform the job. So, it lowers the
production errors.
4. Economical
In this method, a large number of employees can be
participated and orientation can be provided at a time.
It helps to reduce training costs. So, it is a cost effective
method.
5. No Disturbance
Trainees are not allowed to work in the actual
work place.
So, production process will not be disturbed and
existing employees can do their jobs smoothly.
• DISADVANTAGES OR DRAWBACKS OF OFF THE JOB
TRAINING
1. More Expensive
This method of training may be very expensive due to extra
space, accommodation and transportation costs and
experts' fees etc.
2. Less Effective
Off the job training is less effective than on the job training
method because it is conducted outside the working
environment.
Employees need extra induction training to handle their job.
3. Dissatisfaction
Training is conducted artificially outside the work place.
So, employees cannot learn properly in this training
method.
Dissatisfaction may arise among the employees.
4. No Production
Trainees cannot take part in the production process. So,
potential output and time is lost in this method of
training.
Promotion
• Promotion may be defined as the placement of an employee to
a better job which results in extending prestige, salary, powers,
duties, responsibilities and it requires more knowledge and
skills to perform the job.
• Every employee has the aspiration to get promotion and is
ready for acquiring the additional qualification and experience
fit for the job.
• Higher posts and key posts are filled up by the management
through the promotion policy.
• This promotion policy persuades the employees to be loyal to
the management.
• “Promotion” is a term which covers a change
and needs higher responsibilities. It normally
means increased pay and better terms and
conditions of service, resulting into, a higher
status or rank.
• “Promotion involves a change from one job to
another that is better in terms of status and
responsibilities.” (Flippo)
Promotion Objectives
The following are the important objective of
promotion:
• i. It is recognition of a job well done by the
employee.
• ii. It is to increase the employee’s and the
organization’s effective­ness.
• iii. Promotion builds loyalty, morale, and
belongingness on the part of the employee
• v. Promotion impresses upon others that
opportunities are avail­able to them also if they
perform well.
• v. Promotion is a device to retain and reward
an employee for his years of service to the
organization.
• vi. a concrete promotion policy should be
based on the following aspects
• vii. Encouragement of promotion within the
organizations, instead of looking outside to fill
vacancies in higher posts.
• viii.An understanding that ability as well as seniority
will be taken into account in making promotions.
• ix. Drawing up an organization chart to make clear
to all the ladders of promotion.
• x. All promotion should be for a trial period.
Normally during this trial period the employee
draws the pay of the higher post.
Types of Promotion
1) Open versus Closed Promotion
• A company is considered to have an open promotion system when it
is willing to consider all individuals within its organization as
potential candidates.
• Additionally, the company makes an effort to announce position
openings.
• In cases where an organization does not announce vacancies or
restrict candidacy, making promotion opportunities unavailable to all
individuals within the organization, the company is referred to as
having a closed promotion system.
• Very often, an organization has a combination of these two concepts
2) Horizontal Promotion
• This type of promotion involves both a rise in responsibilities
and a salary increase.
• However, the job classification remains the same. For example,
a lower-division clerk is promoted to a higher-division clerk.
3) Vertical Promotion
• Most of the time, when we refer to the term promotion, we
refer to this context.
• In vertical promotion, there is a change in the job classification,
responsibilities, status, and salary. For example, a production
superintendent is promoted to production manager.
4) Dry Promotion
• The term “dry promotion” refers to a situation
in which an individual’s responsibilities and
status are elevated without any increase in
salary or other financial benefits. For example,
a Professor in a college becomes Head of the
Department.
Principles of Promotion
1) Uniformity
• Promotional opportunities should be uniformly
distributed throughout the organisation.
• Uneven distribution of promotional opportunities may
make the employees disrespect the promotional
policies of the organisation.
• Thus, the promotional opportunities at different levels
and departments should be in equal ratio to the
external recruitment.
2) Consistency
• A promotion policy must include regular
promotions.
• Promotions should be given by the organisation
from time to time so that employees get motivated
to work hard.
• A larger gap between two promotions may
discourage an employee, diminishing the
enthusiasm to work in the interest of the company.
3) Fair and Impartial
• Promotion policy should be unbiased and fair i.e., there should be no
scope for any doubts or suspicion in the minds of other employees.
• Management should be completely responsible for the selection of
the most suited individual for the promotion.
4) Planned Activity
• The promotion policy should be well-planned.
• Promotion charts may be prepared by the management to assess the
organisation’s employees’ efficiency.
• Moving in a planned manner will help in correct assessment avoiding
any kind of chaos or misunderstanding on the part of the
management.
5) Definite Basis
• The promotion policy should be based on any of
the following criteria either merit-based
promotion or seniority-based promotion.
• The management can also follow merit cum
seniority criteria for the smooth functioning of
the organisation as well as the employees.
• But the basis should be specific and mentioned.
•
6) Right to Appeal
• The promotion policy must provide the
employees with the right to question the
fairness of the promotion given to the existing
employees by the management.
7) Sanction
• Different departmental heads should be given the right to
propose the names of potential candidates having good
performance records for the vacancies available in the
organisation.
• In this way, other departments cannot point out the bias on
behalf of the management.
• Thus, all promotions should be first sanctioned by the
concerned departmental heads and then finally by the
management.
• Thus, it will lead to the uninterrupted working of the
organisation.
8) Follow-up
• A sound promotion policy must involve regular follow-
ups and counselling of the promoted employee.
• A brief interview should take place between the
promoted employee and the new superior to see
whether everything is going well or not.
• Promotions can also be made for a trial period so that
if case promoted employee proves to be inefficient he
can be reverted to his previous post and previous pay
scale.
Criteria for employee promotion
• Experience in the job or tenure
• High performance level in recent review cycles
• Skillset that matches the minimum
requirements of the new role
• Personal motivation and willingness for a
change in responsibilities
• .
• Signs that an employee is due for promotion i
nclude mastering their current job function, ta
king on informal mentorship or leadership role
s, exceeding expectations, and willingly accept
ing new responsibilities without being asked.
• Other factors may include exceeding performa
nce expectations, taking initiative to expand sk
ills, and acquiring advanced degrees or creden
tials
 Transfer
• Meaning of Transfer in hrm
• The transfer of an employee refers to their movement
from one location to another or between branches.
• Companies often follow a common policy of granting
transfers based on circumstances or accepting
employee transfer requests.
• Sometimes, the transfer in HRM takes place with no
change in the pay scale or position, and sometimes it
may prove to be financially beneficial to the employee.
Definition of Transfer
• According to Yoder and Associates, “Transfer is a
lateral shift causing movement of individuals from
one position to another usually without involving
any marked change in duties, responsibilities, skills
needed or compensation”.
• According to Edwin B. Flippo, “Transfer is a change
in job where the new job is substantially equal to
the old in terms of pay, stats and responsibilities”.
Reasons for Transfer
1) To Fulfil Employee Requirements
• The company may opt for transfers if an employee
struggles to fit or adapt to the working environment.
• If an employee experiences discomfort with superiors or
colleagues, lacks visibility for future growth in a specific
role, or faces family issues, the organization can consider
transfers as a means to address these concerns.
• Transfers may involve moving the employee to a different
location or department, catering to their needs and
requirements
2) To Meet Organisational Needs
• An organisation has to go through several changes in the
path of growth and achievement of its goal successfully.
• These changes may include work inconsistencies, changes
in the structure of the organisation, changes in the
economic status, changes in the quantity of production, etc.
• This demands either reduction or reallocation of the
workforce.
• Hence, the organization makes necessary adjustments to
meet these requirements by transferring suitable
candidates to the appropriate positions.
3) To Make Effective Utilisation of Employees’ Skills
• In certain instances, employees’ skills remain underutilized,
leading to unsatisfactory job performance.
• Thus, the organization undertakes the task of shifting these
employees to positions that match their capabilities.
4) To Enhance Employee Productivity
• When an employee performs the same task for an extended
period, both their productivity and level of excitement start
to decline.
• Thus, to break this boredom and make the jobs more
interesting, transfers are made
5) To Increase Employees’ Versatility
• Transferring an employee from one
department to another or from one place to
another helps the employees face new
challenges and gain new experiences.
• This increases the versatility of the employee
as he receives enough opportunities to
improve his diverse skills.
6) To Adjust the Employees and their Timing
• Transfer takes place to adjust the employees into different
departments, particularly when there are certain changes
in the organisation.
• Employees can also request transfers based on their
convenience.
• Some people prefer morning shifts, some prefer evening,
and some prefer night shifts.
• For example, working women prefer to work evening
shifts as they have to do their daily household work in the
morning.
7) To Maintain a Tenure System
• Many organisations follow a tenure system. Government
organizations, especially, hire employees for a designated
tenure and specific position.
• Subsequently, the organization transfers these employees to
different locations or departments to gain fresh knowledge and
skills.
• The company may opt for transfers to prevent employees from
engaging in politics against the organization.
• For example, Banks recruit probationary officers for a tenure
of 3 years, after which they relocate them to different locations
for the subsequent 3 years.
8) To Ensure Discipline in Employees
• There are some officers or employees of the
organisation who violate the rules and
regulations and work for their own benefit.
• Therefore, to penalise, such employees are
transferred to a distant branch or office where
they do not get a chance to carry out their
unlawful activities.
Types of Transfer
Different types of transfer are as follows:
• Based on Purpose
• Production Transfers
• Replacement Transfers
• Shift Transfers
• Remedial Transfers
• Versatility Transfers
• Based on Unit
• Sectional Transfers
• Departmental Transfers
• Inter-Plant Transfers
1) Based on Purpose
• It includes the following:
i) Production Transfers
• Production transfers are based on the changing requirements of
the organisation.
• When the employees are moved from the place where they are
available in excessive numbers to a place where there is
demand for more employees, such a transfer is called a
production transfer.
• In this case, the organisation is the same, only the departments
are changed to increase the productivity of the organisation.
ii) Replacement Transfers
• Replacement means to substitute a new employee in
place of an old employee who has been working in the
organisation for a long time.
• New employees are energetic and have new ideas.
• Replacement transfer helps in utilising the new
knowledge and advanced skills of the fresh talent in
the interest of the organisation.
• The purpose of these transfers is mainly to avoid
layoffs.
iii) Shift Transfers
• Shift transfers mean a transfer from one shift to
another at the convenience of the employee as
well as the organisation.
• It is a very common type of transfer.
• There are usually 3 shifts, namely morning,
evening, and night.
• The position and job remain the same, only the
timings are adjusted accordingly.
iv) Remedial Transfers
• As the name indicates, remedial transfers are made
to remedy the situation or faults that happened
during the placement.
• When employees are not able to perform their
duties effectively or they are unable to adjust
themselves to the changing environment,
employees are transferred to a more suitable place
where their skills can be better utilised and their
performance can become better.
v) Versatility Transfers
• These transfers are made to make the
employees more versatile.
• They are transferred to a different job so that
they can get varied experience and skills.
• It also prepares the employee for future
promotions, along with greater
job satisfaction.
2) Based on Unit
• It includes the following:
i) Sectional Transfers
• When the transfers are made to train the
employees to handle the operations and
working of different sections of the same
department, such transfers are called
sectional transfers.
ii) Departmental Transfers
• Transfers made from one department to another
department within the same organisation are called
departmental transfers.
• In such transfers, the job responsibilities remain the
same for the employees in the departments.
iii) Inter-Plant Transfers
• If an organisation has more than one branch or plant,
inter-plant transfers can be made to fulfil the various
changing needs of the organisation.
 Demotion
Definition:
• Demotion implies the unavoidable reduction in the
rank or designation of the employee, within the
hierarchy of the organization.
• It can be a permanent reassignment of the
employee to a lower rank than the rank he is
working on currently.
• Further, the rank in which the employee will work
after demotion shall contain lower responsibilities
and will require a lesser number of skills.
Inefficiency
• When an employee gets a promotion on the basis of
seniority and past performance, but he proves to be
incompetent in performing tasks related to that
post.
• He/She thinks it is difficult to reach performance
standards.
• Hence, the management demotes these employees
back to the job in which their capabilities, aptitude
and knowledge match the job requirements.
Adverse business conditions

• It may also be due to adverse business conditions.

This may cover:
• Closure of some departments or plants
• Withdrawal of some products
• Reduction in quality of production
• In such cases, freshly recruited employees or lower-
level employees may be laid off. While the retrenched
and senior employees may be demoted.
Change in technology
• When there is a change in technology, method or
technique, there is a need for new or higher-
level skills to perform the job.
• And if the employees who are working currently
in the organization, do not upgrade themselves
with the emerging requirement ,then, the
company’s management demotes the employees
to lower ranks where they can fit suitably.
Administrative Convenience
• Because of external developments or internal
reconstruction, an organization is bound to eliminate
certain positions or merge them for administrative
purposes.
• In these cases, the incumbents of merged or
eliminated positions may be moved to lower ranks.
• In such situations, organizations prefer demotion as a
better alternative to layoff when the reduction of staff
becomes necessary.
Disciplinary Action
• A firm may also demote employees as a result of
disciplinary action, but only a few organizations practice it.
• That is to say, the organizations practice this as a
punishment for employees for serious breaches of rules
and regulations and for continuous poor performance.
• Basically, demotion is a less severe punishment in
comparison to the dismissal or discharge of employees.
• But employee unions strongly condemn it, because it has a
very negative impact on the mental and emotional health
of the employees.
2 Types of Demotion
Voluntary Demotion.
Involuntary Demotion.
Voluntary Demotion
• A permanent employee may request a voluntary demotion to a
vacant position in a class with a lower salary rate, provided that the
employee has previously achieved permanent status in that class or
the request for demotion is to a related class in the same job series as
defined by the Personnel Commission.
Involuntary Demotion
• An involuntary demotion is a disciplinary action and, as such, is
subject to the disciplinary procedures in these Rules and Regulations.
Demotion will serve its purpose if it satisfies the following
conditions;
• A clear and reasonable list of rules should be framed, violation of
which would subject an employee to demotion.
• This information should be communicated to employees.
• There should be a proper investigation of any alleged violation.
• If violations are found, there should be a consistent and
equitable application of the penalty, preferably by the immediate
supervisor.
• There should be a provision for review.
• Since demotions adversely affect employee morale, they are
made infrequently.
 Performance Evaluation
• Performance evaluation is a process used by
organizations to assess how well employees are
performing in their roles.
• It involves reviewing an employee’s work,
behavior, and achievements to see if they meet
the company’s expectations and goals.
• The goal of performance evaluation is to
provide feedback, identify areas for
improvement, and recognize accomplishments.
• For employees, it’s a chance to understand their
strengths and weaknesses, while for employers,
it helps guide decisions about promotions,
raises, training, or other development needs.
• Overall, performance evaluation helps ensure
that both employees and the company grow
and succeed together.
Advantages of Performance Evaluation
• Promotion
• Compensation
• Employees Development
• Selection Validation
• Communication
• Motivation
• Feedback and Development Applications
• Basis for Administration Decisions
1.Promotion
• Performance evaluation helps the supervisors to chalk out
the promotion programs for efficient employees.
• In this regard, inefficient workers can be dismissed or
demoted in case.
2.Compensation
• Performance evaluation helps in chalking out
compensation packages for employees.
• Merit rating is possible through performance evaluation.
• Performance evaluation tries to give worth to a
performance.
• Compensation packages which include bonuses, high salary
rates, extra benefits, allowances, and prerequisites are
dependent on performance evaluation.
• The criteria should be merit rather than seniority.
3.Employees Development
• The systematic procedure of performance evaluation helps
the supervisors to frame training policies and programs.
• It helps to analyze the strengths and weaknesses of
employees so that new jobs can be designed for efficient
employees.
• It also helps in framing future development programs.
4.Selection Validation
• Performance evaluation helps the supervisors
to understand the validity and importance of
the selection procedure.
• The supervisors come to know the validity and
thereby the strengths and weaknesses of the
selection procedure.
• Future changes in selection methods can be
made in this regard.
5. Communication
• For an organization, effective communication between
employees and employers is very important. Through
performance evaluation, communication can be sought
in the following ways:
• Through performance evaluation, employers can
understand and accept the skills of subordinates.

• The subordinates can also understand and create trust

and confidence in their superiors.
• It also helps in maintaining cordial and
congenial labor-management relationships.

• It develops the spirit of work and boosts the

morale of employees. All the above factors
ensure effective communication.
6. Motivation
• Performance evaluation serves as a
motivational tool.
• Through evaluating the performance of
employees, a person’s efficiency can be
determined if the targets are achieved.
• This very well motivates a person for a better
job and helps him to improve his performance
in the future.
7.Feedback and Development Applications
• Performance appraisal helps in the following:
• Controlling the performance of subordinates

• Assessing training needs and skill gaps

• It is input to goal setting

8. Basis for Administration Decisions
Performance appraisal acts as the:
• Basis for pay increases based on performance

• Basis for promotions (or demotions)

• Basis for layoffs (or retention)

• Basis for work assignments

• Used for the legal defense of HR practices

Methods of Performance Evaluatio
1. Self-Assessment
• Self-assessment requires an employee to judge their
own performance against predetermined criteria.
• It’s usually part of an official performance review
aimed at gaining deeper insight.
• The goal is to ensure that employees understand
how they will be evaluated.
• While this method can be subjective, discrepancies
between employee and employer evaluations can be
revealed.
2. 360-Degree Evaluation
• One of the most important performance evaluation
methods, 360 degree feedback evaluation, provides a
comprehensive view of an employee’s work by
obtaining feedback from external sources.
• This includes direct reports, peers, supervisors,
customers, and other relevant parties who regularly
interact with the leader.
• The objective is to provide a holistic view of the
leader’s performance from multiple perspectives.
3. 180-Degree Evaluation
• Also known as “manager feedback” or “upward
feedback,” the 180-degree evaluation gathers input
from direct subordinates and immediate superiors of
a leader.
• This approach collects feedback from those who
closely interact with the leader on a daily basis.
• The main goal is to assess the leader’s impact on
immediate team members and how their actions
align with the organization’s objectives.
4. Behavior Verification
• Another performance evaluation method
involves creating a checklist based on
expected behaviors for each worker, such as
timely deliveries or teamwork.
• The evaluator marks the elements where the
employee succeeds and provides specific
feedback on missing elements.
5. Management by Objectives (MBO)
• A more modern approach to performance
reviews, MBO involves the employee in the
goal-setting process.
• The manager and employee agree on specific,
achievable objectives with set deadlines.
• Unlike subjective evaluations, MBO makes
defining success and failure easier.
6. Rating Scale
• A rating scale is one of the most commonly used
performance evaluation methods.
• It’s based on a set of criteria developed by the
employer, against which employees are judged.
• Most organizations use this approach.
• It specifies goals (behaviors, traits, skills, or
completed projects) on a scale that generally
ranges from 5 to 10 points.
7. Peer Review
• Peer review is used to enhance the traditional
evaluation process.
• It involves receiving anonymous feedback from
colleagues and team members on specific aspects of
an employee’s performance.
• This process provides a unique opportunity to
identify the strengths and weaknesses of each
employee, using this valuable data for succession
planning, team creation, and role rotation.
8. Critical Incident Method
• This method is crucial in the customer service
world, enabling managers to provide more
comprehensive feedback on how an employee
handles issues.
• It encourages managers to focus on specific
events where the person’s behavior was
positive or negative, offering insights on how
to align with best practices.
9. Performance Test
• While a written or multiple-choice test benefit
from increased objectivity, a practical
presentation of skills is often a better indicator
of mastery.
• The evaluator of this test should be an expert
in the field, capable of communicating the
results’ significance within the hierarchy.
10. Behaviorally Anchored Rating Scale (BARS)
• This widely-used method allows the collection of both
qualitative and quantitative data.
• In the Behaviorally Anchored Rating Scale (BARS) system,
the employer compares employee performance against
specific behavioral examples, assigning numerical ratings.
• This method provides clear standards, improves employee
feedback, offers accurate performance analysis, and ensures
consistent evaluation by incorporating both quantitative and
qualitative measures.
11. Psychological Assessments
• This method is particularly useful for uncovering
employees’ hidden potential, as it focuses on
evaluating an employee’s future performance rather
than their past work results.
• It involves various tests, including in-depth interviews,
psychological tests, and private discussions.
• These tests aim to identify an employee’s emotions,
intellect, and related traits that might influence their
future performance within an organization.
 Retention
• Employee Retention is defined as the ability of an
organisation to keep its employees with itself and reduce
turnover.
• This involves creating an environment and implementing
strategies that encourage employees to stay with the
company for a longer duration.
• This is achieved by creating a positive work culture, providing
development opportunities, and competitive advantages, and
recognising and rewarding employees for their contributions.
• High employee retention is a sign of a healthy workplace
where employees are engaged, satisfied, and committed to
the organisation's goals.
Employee Turnover
• Employee turnover is the tendency of an employee to leave an
organisation, employee turnover is the opposite of employee
retention. Some of the reasons for employee turnover are,
• 1. Poor Work-Life Balance:
• Poor work-life balance means that working hours are too long,
causing the employee to devote too much time to work and
have too few holidays.
• Due to this, personal life gets disturbed, and the employee
leaves the organisation and goes to an organisation where
work-life balance is ensured.
2. Personal Reasons:
• Sometimes, an employee's decision to leave a job is due to
personal reasons, such as their family relocating to a new city.
• Since the entire family is shifting, this forces the employee to
leave the job.
3. Incompatibility with the Job:
Dissatisfaction arises from the inconsistency between an
employee's skills, knowledge, and experience with the
demands of the job, that the employee is not given relevant
work, this inconsistency causes people to leave the job and
join a company that promotes employee development
4. Lack of Growth:
Lack of growth means that the structure of the company is such
that the employees they hire remain in the same position for a
long time, do not get promotions, and have no growth within
the organisation.
5. Poor Employee-Employer Relationship:
A major cause of employee turnover, poor relationships, whether
within management or between management and employees,
contribute significantly to turnover.
When employees feel undervalued and their feedback is not
acknowledged, they seek a more supportive work
environment.
Objectives of Employee Retention
• Employee Retention is very important for the
organisation, as the organisation hires skilled and
talented people.
• It is a difficult task to pull off as the recruitment
process takes a lot of time and also involves costs.
• But it is not favourable for the organisation if
those employees leave the organisation, so here
are the benefits of employee retention:
1. Reducing Recruitment and Training Costs:
Retaining employees reduces expenses paid in
the exhaustive recruitment process.
2. Minimising Production Cost and Wastage:
A stable workforce ensures smoother
operations, reducing production costs, and
minimising wastage due to workforce
disturbances.
3. Maximising Productivity and Work Quality:
Engaged and satisfied employees tend to be more
productive and maintain higher work standards,
positively impacting the organisation's output.
4. Increasing Revenue and ROI:
Retained employees contribute to the company's
growth and success, ultimately reflecting
increased revenue and Return on Investment
(ROI).
Employee Retention Strategies
Here are 10 employee retention strategies that organisations can
implement to reduce turnover and keep their employees
engaged and motivated:
1. Hiring the Right People:
• With 80 percent of employee turnover occurring due to
poor hiring decisions, hiring the right people can substantially
reduce employee turnover and help with employee retention.
• It is like laying a strong foundation, bringing the right
individuals on board sets the stage for a flexible and
connected team.
2. Attractive Incentives and Rewards:
• Providing performance-based bonuses and rewards
beyond financial incentives can be impactful.
• This can be a great way to recognise employees who
are consistently exceeding expectations.
• Offer non-monetary rewards like gift cards,
company swag, or vacations.
• These types of rewards can be just as motivating as
financial incentives.
3. Redressal of Employee Grievances:
To ensure that employee concerns are
addressed appropriately and promptly, the
organisation should have a grievance redressal
process.
It established a transparent and effective
mechanism to boost employee confidence and
prevent turnover
4. Participation in Decision-Making:
Participation in decision-making creates a
sense of belonging among the workers.
• When they are part of the decision-making
process, employees feel heard, recognised and
integral to the organisation's growth.
• It makes them feel valued and recognised.
5. Good Employee-Employer Relationship:
Encourage open communication and feedback
loops by creating a safe and supportive
environment where employees feel
comfortable sharing their ideas and concerns
openly and are receptive to their feedback.
6. Better Service Structure:
• Employees want the opportunity to advance
their careers at their current company.
• Companies can Provide clear career paths and
advancement opportunities, ensuring
employees see a future within the organisation.
• Empower employees to excel in new roles by
offering training and development programs
within a better service structure.
7. Better Working Conditions:
• Promote work-life balance by offering flexible
scheduling options, remote work options, regular
breaks, holidays, personal time, and paid time off.
• Offer competitive benefits like health insurance,
stock options, vision insurance, and retirement
savings plans.
• Seek employee feedback, provide recognition and
rewards for good work, and create a positive and
supportive work environment.
8. Conducting Exit Interviews:
It is very important to conduct an exit interview
just before an employee leaves, an exit
interview asks the employee about their
experience with the company.
This process can help shed light on things like
toxic management and departmental conflict.
9. Conduct Health and Wellness Programs:
• It is important to have a comprehensive health
plan, and health insurance initiative is
essential for the overall well-being of the
employees.
• It is not just about providing benefits, it is
about showing care and contributing to a
healthier and more engaged workforce.
10. Providing Leadership Opportunities:
• Many people feel they can contribute more,
and giving them the right work opportunities
and responsibilities can increase employee
satisfaction and help retain employees.
• It is about enabling them to make meaningful
contributions and promoting job satisfaction
and loyalty.
 Attrition
• Employee attrition is the gradual reduction of
a company’s workforce due to various factors,
including resignations, retirements, layoffs, or
employees leaving without being replaced.
• Unlike turnover, which focuses on the
frequency and reasons for employees leaving,
attrition emphasizes a slow, natural decrease
in the workforce over time.
• High attrition can be a red flag for issues like
low employee morale, lack of engagement, or
poor workplace culture.
• Lower attrition, especially when voluntary, can
also mean employees are satisfied, creating a
stable workforce.
• Managing attrition rates is crucial for
organizational planning and maintaining
productivity.
Types of Attrition
1. Voluntary Attrition
• Voluntary attrition occurs when employees choose
to leave an organization of their own accord, often
by resigning or moving on to other opportunities.
• This type of attrition is within the control of the
employees and is often influenced by various
personal and professional factors.
Here are some common reasons behind voluntary
attrition:
• Lack of Opportunities for Learning and
Development
• Job Role and Skill Mismatch
• Limited Career Advancement Opportunities
• Lack of Appreciation and Recognition
• Prolonged Workplace Stress
2. Involuntary Attrition
• Involuntary attrition happens when employees
are separated from their organization without
their consent, usually due to circumstances or
decisions beyond their control.
• This form of attrition is often initiated by the
organization and can arise from several factors
such as organizational restructuring, financial
constrain or performance-based termination.
3. Retirement
• Retirement is when an employee ends their
working tenure after reaching a desired age.
• This attrition is related to an employee’s
personal decision and the work protocol
based on age, health, and financial readiness
4. Internal Attrition
• Internal attrition occurs when employees choose to
leave their current position to take on a new role
within the same organization.
• This shift often involves a transition to a different
department or a complete change in job
responsibilities.
• This type of attrition allows employees to explore
new areas within the company while maintaining
their tenure and commitment to the organization.
5. Demographic Attrition
• Demographic attrition occurs when employees from a
particular demographic group—such as a specific age
bracket, ethnicity, or gender—leave an organization at
higher rates than other groups.
• It generally results from differences that stem from
workplace experiences, opportunities, and career goals
among various demographic groups.
• Such trends can often point to underlying issues within the
workplace, such as biases in advancement opportunities,
lack of mentorship, or a cultural disconnect.
5 Major Causes of Employee Attrition
1. Toxic Workplace Culture
• One of the key drivers of employee attrition is workplace
culture.
• A toxic work environment can lead to high levels of stress
and dissatisfaction among employees.
• It can leave employees feeling undervalued, demotivated
and unsupported.
• Factors such as poor communication, lack of transparency,
unresolved conflicts and micromanaging can contribute to
a negative workplace culture.
2. Lack of Diversity and Inclusion
• Organizations that fail to embrace diversity and
inclusion often see higher rates of employee
turnover, especially among individuals from
underrepresented backgrounds.
• They may struggle to feel genuinely integrated into
the workplace, often experiencing feelings of
isolation and alienation.
• This lack of connection can prompt employees to
seek a more inclusive workplace elsewhere.
3. Poor Management
• As the saying goes, "Employees don't quit their jobs; they quit
bosses and work cultures."
• Poor leadership and management are perhaps one of the
biggest contributors to employee attrition. It can lead to high
levels of stress due to unclear expectations, a lack of guidance,
or even toxic behaviors, such as favoritism or
micromanagement.
• Inconsistent communication or overbearing demands can also
push employees toward burnout, making them more likely to
leave for roles that support a healthier work-life balance.
4. Lack of Recognition and Appreciation
• Employees who feel that their contributions are not
recognized or appreciated by their organization are more
likely to become disengaged.
• Over time, this lack of acknowledgment can lead to a
feeling of resentment.
• For instance, imagine an employee who consistently goes
above and beyond in their work but never receives any
recognition or praise.
• Over time, this lack of recognition can make them
demotivated and leave them disengaged at work.
5. Job Insecurity
• Uncertainty about job stability, such as rumors of
layoffs or frequent restructuring, can create
anxiety and stress among employees.
• Imagine a company that is experiencing financial
difficulties and is forced to downsize its workforce
• This uncertainty can create a sense of instability
and prompt employees to start looking for more
stable employment opportunities elsewhere.