HRM Notes PDF

T.Y.B.A.
COMMERCE
PAPER V
HUMAN RESOURCE MANAGEMENT
UNIVERSITY OF MUMBAI
Dr. Rajan M. Welukar
Prin. Dr. Naresh Chandra
Vice Chancellor
Pro-Vice Chancellor
University of Mumbai
Fort, Mumbai-400032.
Fort, Mumbai-400032.
Dr . Dhaneshwar Harichandan
Professor-cum-Director
Institute of Distance and Open Learning
Programme Co-ordinator
: Msr. Madhura Kulkarni,

Assistant Professor-cum Assistant Director
IDOL, University of Mumbai.
Mumbai 400 098
Editor
: Dr. R.G. Phadatare
Vice Principal,
D.G. Commerce College, Satara.
Course Writers
:
1) Dr. Nilam Arora,
2) Dr. S.V. Lasune,
I/c Principal,
HOD, Commerce Division,
Lala Lajapatrai College,
Lala Lajapatrai College,
Mahalakshmi,
Mahalakshmi,
Mumbai- 400 034.
Mumbai 400 034.
3) Dr. Sangita Pawar,
4) Prof. Rajesh Boite,
Department of Commerce,
Akabar Peerbhoy College of Commerce,
University of Mumbai,
Byculla,
Mumbai 400 098.
Mumbai 400 008.
July 2012, T.Y.B.A. Commerce Paper V Human Resource Management

Published by
: Professor cum Director

Institute of Distance and Open Learning
University of Mumbai, Vidyanagari,
Mumbai - 400 098.
DTP Composed by : Pace Computronics

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CONTENTS
Sr. No.
Title
Page No.
1.
Human Resource Management
2.
Human Resource Planning
15
3.
Recruitment and Selection
28
4.
Psychological Testing
44
5.
Interview
50
6.
Induction
61
7.
Training and Development I
68
8.
Training and Development II
84
9.
Performance Appraisal
98
10.
Group Dynamic and Human Needs
118
11.
Human Relations
131
12.
Motivation
139
13.
Employees Moral
155
14.
Communication Part I
166
15.
Communication Part II
186
16.
Leadership
198
(Revised Syllabus w.e.f. 2010 11)

T.Y.B.A.
Human Resource Management
Commerce Paper - V
Section -1
1.
Introduction to Human Resource Management
Introduction - What is Management? What is Human Resource

Management?
How it differs from Personnel Management ?
Areas covered by HRM;
Changing environment of HRM;
Challenge for HR Manager.
(10)
2.
Human Resource Planning
Importance - Definition - Need - Process of Human Resource

Planning Job - Job Analysis - Job Description, Job Specification
and Purpose or Uses of Job analysis; Content of Job analysis. (7)
3.
Recruitment and Selection Process
Introduction - Factors governing Recruitment - Constraints of

Manager to Recruit - Sources of Recruitment - Internal and
External, Selection Procedures - Steps involved.
4.
(7)
Psychological testing, Interviews and Induction
Psychological testing - Purpose, Characteristics, Classification,

Advantages, Basic guidelines.
Interviews Objectives of Interviews - Types of Interviews - Guidelines for
effective Interview, Interview Techniques (Preparation, Physical
setting, Conduct, Close and Evaluation) errors in interviewing,
Interview Guidelines for Interviewee,
Induction Objectives of Induction,
Considerations in Developing Orientations (formal/informal),
individual or collective, fixed or variable time, orientation process.
(15)
5.
Training and Development
Introduction - distinction.between Training and Development Training - Need, Principles of Training, Steps in Training program,
Training
methods
/
Techniques
(on-the-job,
vestibule,
demonstration, apprenticeship, classroom methods or off-the-job
training.)
Training evaluation - Principles, why training fails? And improving
effectiveness of Training.
Managerial Development - Importance, Characteristics of Manager,
Skills of Manager, Purpose and Objects of Manager, Components
of MD program
Basic requirements for the success of the program - on-the-job
training (Coaching, Job rotation, Assignment, Participating in
Committees) off-the-job training (Case study, Incident method, Role
playing etc.).
Organizational development (Definition, Goals - Characteristics Process).
(15)
6.
Performance Appraisal
Importance and Purpose - Appraisal Process - Methods (traditional

and new), -Contents of Appraisal - Problems.
(6)
Section -II
7.
Group dynamic & human needs
Definition of a Group - Features, Function & Goals of formal groups

- informal groups - Need for Grouping - Process of Group
Formation & its size -characteristics of Groups - Conflicts &
Managing the Conflicts.
Human needs - Meaning - Changing nature of human needs Management's role in need fulfillment.
(12)
8.
Human Relations
Introduction - Definition - Objectives - Scope - Fundamental

concept in human relations - Measures to be taken by Management
to improve relations.
(8)
9.
Motivation
Introduction - Definition - Classification of Motivation - Types of

Motivation -steps involved in Motivation - Management techniques
to increase Motivation. Organizational Detailed study of financial &
non-financial Motivations, Important theories of Motivation by

Maslow, Mc-Gregor, Herzberg, Vrooms.
10.
(10)
Employee Morale
Definition & features - Factors influencing Morale - Measurement of

morale & improving Morale.
(7)
11.
Communication
Definition & Characteristics - Importance - Objectives process formal & informal communication - written & oral communication vertical & horizontal communication- verbal & non-verbal transmission of informal messages - Media of Communication Significance of informal communication to Management -Barriers to
communication - removing the barriers.
(15)
12.
Leadership
Definition - Characteristics - Roles expected from leader - function

of-the leader -Qualities of the leader - Styles of leadership Different approaches to leadership (trait-oriented, situational,
functional, and interactive).
(8)
References
Parek Udai - Organizational Behaviour Process, Rawat Publication
M.Gangadhar Rao - Organizational Behaviour Text, Konark
Publication
Mheta KIK - Organizational Behaviour, Prentwell Publication
Greenberg & Boron - Behaviour in Organization, Prentic Hall
Mathur, B.L. -Human Resource Development, Arihant Publication
V.S.P. Rao - Human Resource Management in Small Industry,
Discovery Publication
Bhatia SK - Strategic Human Resource Management Winning
through people, Deep & Deep Publication
Prakash Ved - Human Resource Management Anmol Publication
1
HUMAN RESOURCE MANAGEMENT
CONTENTS :
1.0
Objectives
1.1
Introduction
1.2
Definition and Nature of HRM
1.2.1 Definition
1.2.2 Nature of Human Resource Management
1.3
Scope of Human Resource Management
1.4
Importance of HRM
1.5
Differences between HRM and Personnel Management
1.6
Role of HR managers In the changing business environment
1.7
Summary
1.8
Questions For Self - Assessment
1.0
OBJECTIVES
After studying this chapter the students will be able to:
Understand the concept HRM.
Know the definition of HRM.
Evaluate the scope of HRM.
Indentify the importance of HRM.
Elaborate the difference between Personnel management

and HRM.
Find out the role of HR managers in the changing business
environment.
1.1
INTRODUCTION
Human Resource management is concerned with managing

manpower to improve individual, group and organisational
effectiveness. Human resources need to be managed as
organizations can prosper and progress only through the committed
and creative efforts and competencies of their human resources
HRM involves human resource planning, recruitment and selection,
training and development, placement, motivation, performance

appraisal, career development, promotion and transfer of human
resources. So that they can effectively contribute to the success of
the organization.
1.2
DEFINITION AND NATURE OF HRM
1.2.1 DEFINITION
According to Flippo, HRM is the planning, organizing,
directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of human
resources to the end that individual, organizational and societal
objectives are achieved.
1.2.2 NATURE OF HUMAN RESOURCE MANAGEMENT
The nature of Human Resource Management can be stated
as follows.
a)
HRM is a process :
Human Resource Management is a process. It perform the

main functions such as acquisition function includes human
resource planning, recruitment and selection of employees.
Development function is concerned with training and development
of employees. Motivation function includes providing recognition
and reward to the employees and maintenance function is
concerned with providing good working conditions, welfare facilities
etc.
b)
Focus on objectives :
HRM gives more importance on the accomplishment of

objectives. The objectives may be individual or personal objectives
of the employees, Group or departmental objectives, organizational
objectives, and societal objectives.
c)
Universal Application :
HRM is all pervasive. It is required for all organizations,

trading as well as non-trading, commercial as well as
non-commercial business organization. It is required at all levels
10
and for all activities. Therefore it is universal applicable to any kind

of organization.
d)
Continuous in nature :
HRM is a continuous activity. Organisations need to manage

human resources on a continuous basis. Organisations
requirements nowadays changes very fast. In order to survive in
this competition environment. It is essential that human resource
requirements are evaluated continuously.
e)
Integrated use of subsystem :
HRM involves various functions like employee training,

formulating promotion and transfer policies, applying various
motivational theories etc. Emphasis needs to be placed in all
possible areas so that individual, group and organizational
effectiveness is enhanced.
f)
Interdisciplinary :
HRM is interdisciplinary. Effective HRM involves acquiring

knowledge from various disciplines such as psychology,
economics, philosophy, communication, organization behavior and
sociology. Since HRM aims at improving individual, group and
organizational effectiveness, it involves the use of various
disciplines of social sciences.
g)
Development of Team sprit :
The aim of HRM is to develop and maintain team spirit in the

organisation i.e. groups and departments. Such team spirit is
required in every organisation so that the people work effectively
together and contribute to the success of the organisation.
h)
Development of professional attitude :
Formal coaching and training along with a professional body

to monitor the professional activities is essential for an activity to be
classified as a profession. HRM is a profession as there are number
of college offering professional management education.
Furthermore National Institute of Personnel Management overseas
management practices.
11
i)
Long-term Benefits :
HRM brings long-term benefits to the individuals,

organisations and the society as well. Employees gain long-term
benefits buy way of better monetary and non-monetary incentives.
The organisation can gain by way of higher returns on investment,
and better corporate image. The society can be benefited by way of
better quality of goods and services.
j)
Dynamic :
HRM is dynamic in nature. Changes in the employment

practices, labour laws etc. are taking place very fast. The
organisation has to keep itself abreast with these developments
and make necessary changes in labour policies in its organisation.
1.3
SCOPE OF HUMAN RESOURCE MANAGEMENT
The scope of HRM starts with entry of a person in the job

and ends with his exit from the job. Following are the scope of
human resource management.
a)
Human resource planning :
Human resource planning involves forecasting the future

demand and supply of human resource. It involves finding out the
number of skilled, unskilled and semi-skilled people required. It also
involves finding out the possible ways to ensure that supply of
human resource meets demand continuously.
b)
Job analysis :
Job analysis is a process of collecting information about the

job. Job analysis involves job description i.e. details about the job
and job specification i.e. qualities and qualifications necessary to
perform the job.
c)
Recruitment :
Recruitment is a process of finding out and attracting

capable people for the job. The process starts with finding of new
recruits and ends when applications are submitted.
12
d)
Selection :
Selection is the process of picking individuals from the

various applicants. Individuals who have necessary qualities and
qualifications suitable for the job.
e)
Training and development :
Training and development refers to an attempt made by the

organisation to improve the current and future performance of the
employee by imparting certain skills, abilities and knowledge.
f)
Performance appraisal :
It is a systematic evaluation of individuals performance on

the job. Generally such evaluation is done with respect of certain
predetermined standard in relation to job knowledge quality and
quantity of output, co-operation, versatility etc.
g)
Job evaluation :
Job evaluation is the process of analysing and assessing the

various jobs systematically in order to ascertain their relative worth
in the organisation. For example job of a clerk or a manager. Job
evaluation helps in determining salary differentials.
h)
Executive remuneration :
Executive is considered to be an individual who is in a

management position at the highest levels. HRM function involves
deciding the amount to be paid as salary, bonus, commission and
long term incentives etc. to the executives.
i)
Motivation :
Performance depends upon ability and motivation.

Employees have to be motivated either by offering them monetary
or by offering non-monetary benefits.
j)
Safety and health :
13
HRM scope also involves ensuring safety to employees from

professional hazards. It also involves ensuring that they dont work
is an unhygienic environment.
k)
Employee welfare :
Employees welfare services includes workers recreation

facilities like gymkhana, conveniences such as provision of drinking
water, washbasins etc. distribution of work hours, canteen services
and so on. Proper employee welfare would improve their
productivity.
l)
Employee Communication :
HRM function involves developing a healthy communication

between various members of the organisation. Effective
communication is important for performing basic functions of
planning, organising, leading and controlling in an effective manner.
m)
Promotion and transfer :
Promotion and Transfer involves improvement in pay,

prestige, position and responsibilities of an employee. Formulating
promotion policies, transfer policies, selecting individuals for
promotion or transfer etc. are included in the scope of human
resource management.
n)
Trade unions :
Trade unions are voluntary organisation of workers formed to

promote and protect their interests through collective action. HRM
should ensure that a healthy relationship is developed between the
management and the union which will create a conducive
environment for work.
o)
Ethical issues in HRM :
Ethics refers to a system of moral principles. It is a study of

right and wrong. It is the duty of HRM department to formulate
norms for the employees of the ogrnaisation.
1.4
IMPORTANCE OF HRM
The main importance of HRM is as follows
14
a)
Availability of competent manpower :
HRM is of vital importance to a business organisation. It acts

as a powerful tool for achieving its objectives. It ensures effective
utilisation of human resources through scientific selection, training
and development and motivation. It ensures that right people are
available as competent manpower at the right time end at the right
place.
b)
Effective use of manpower :
HRM facilitates not only the availability of competent

manpower, but it also ensures effective use of manpower. After
selecting employees, they are placed at the right place of work.
Proper placement helps to make effective use of manpower.
c)
Motivation to manpower :
HRM facilitates motivation to manpower. There is a constant

need to motivate manpower by providing rewards and incentives.
Human resource mangers make attempt to devise the best possible
compensation packages to the employees. Nowadays, in
professional firms, employees are rewarded with performance
linked incentives. Highly motivated employees put in their best
efforts to achieve organisational objectives.
d)
Morale of employees :
Human resource manger constantly makes efforts to

improve employees morale by inviting suggestions from group
members, providing groups incentives etc., because employees
work in a group. Team work is vital to the success of the
organisation. Therefore it is essential to improve morale of the
employees.
e)
Development of employees :
HRM facilitates career development of employees. In the

present business world, manpower is one valuable asset of every
business organisation. Its stability, growth and prosperity depends
on efficient loyal and creative people. Naturally every progressive
and professionally managed organisation must attract, maintain,
develop motivate and utilise such employees in a purposeful
15
manner. Therefore human resource management develops the

employees.
f)
Working relationships :
HRM establishes and maintains desirable working

relationship among all the members of the organisation. Authority
and responsibility of each job is clearly defined, and its relations
with other jobs in the organisation clear lines of authority and
responsibility develop good relations between the superior and
subordination and also among the various departments.
g)
Corporate Image :
Effective human resource management is required to

develop and improve corporate image in the minds of various
stakeholders - customers, employees, shareholders and other
members of society. The practices adopted by human resource
managers have a direct impact on the corporate image of the
organisation.
h)
Social Objectives :
HRM plays an important role in fulfillment of social

responsibility of the organisation. Through effective training and
development, employees are motivated to produce quality goods
and services and to take appropriate measures towards social
development including environmental conservation. Business firm
fulfill their corporate social responsibility.
i)
National significance :
HRM is also significant from the nations point of view. The

efficient and effective utilisation of nations natural, physical and
financial resources depends upon commitment and dedication on
the part of the people. Therefore, effective HRM is required to
speed up the process of economic development of a nation, which
in turn would bring peace and prosperity to the nation.
In brief these are the different importance of human resource
management.
16
CHECK YOUR PROGRESS

1.
The scope of HRM starts with entry of a person in the job

and ends with his exit from the job. Explain.
2.
Explain the following points of the nature of HRM
3.
a.
HRM is a process
b.
Universal Application
c.
Continuous in nature
d.
Interdisciplinary
e.
Development of Team sprit
f.
Dynamic
Enlist the points showing the importance of HRM.
1.5
DIFFERENCES
BETWEEN
PERSONNEL MANAGEMENT
HRM
AND
ALTHOUGH both human resource management (HRM) and

personnel management focus on people management, if we
examine critically, there are many differences between them. Some
are listed below :
i)
Nature of relations :
In personnel management, the focus is more on

individualistic where individual interest is more than group interest.
Whereas, HRM focuses more on Unitarist where the word
"uni" refers to one and together.
The distribution of power in personnel management is
centralized where the top management has full authority in
decision-making where even the personnel managers are not even
allowed to give ideas or take part in any decision which involves
"employees".
HRM, on the other hand, sees the decentralization of power
where the power between top management is shared with middle
and lower management groups. Employees play an important role
together with line and HR managers to make collective and mutual
decisions, which can benefit both the management and employees
themselves.
17
ii)
Leadership and management role :
Personnel management emphasizes much on leadership

style which is very transactional. This style of leadership merely
sees the leader as a task-oriented person. This leader focuses
more on procedures that must be followed, punishment form nonperformance and non-compliance of rules and regulations and put
figures and task accomplishments ahead of human factors such as
personal bonding, interpersonal relationship, trust, understanding,
tolerance and care.
HRM creates leaders who are transformational. This
leadership style encourages business objectives to be shared by
both employees and management. Here, leaders only focus more
on people-oriented and importance of rules, procedures and
regulations are eliminated and replaced with Shared vision,
corporate culture and missions, Trust and flexibility and HRM
needs.
iii)
Contract of employment :
In personnel management, employees contract of

employment is clearly written and employees must observe strictly
the agreed employment contract. There is no compromise in written
contracts that stipulates rules, regulations, job and obligations.
HRM, on the other hand, does not focus on one-time lifelong contract where working hours and other terms and conditions
of employment are seen as less rigid. Here, it goes beyond the
normal contract that takes place between organizations and
employees. The new "flexible approach" encourages employees to
choose various ways to keep contributing their skills and knowledge
to the organization such as flexi-working hours, work from home
policies and not forgetting the creation on "open contract" system.
HRM today gives employees the opportunity and freedom to select
any type of working system that can suit them and at the same time
benefit the organization as well.
iv)
Pay policies and job design :
Pay policies in personnel management is merely based on

skills and knowledge required for the perspective jobs only. The
value is based on the ability to perform the task and duties as per
the employment contract requirement only. It does not encourage
18
value-added incentives to be paid out. HRM, on the contrary,

encourages organizations to look beyond pay for functional duties.
Here, the pay is designed to encourage continuous job
performance and improvement which is linked to value-added
incentives such as gain sharing schemes, group profit sharing and
individual incentive plans.
In personnel management the job design is very functional,
where the functions are more departmentalized in which each job
falls into one functional department. This is merely known as
division on labour based on job needs and skill possessions and
requirement.
In HRM the job design is no more functional based but
teamwork and cyclical based. HRM creates a new approach
towards job design such as job rotation which is inter and intradepartmental based and job enlargement which encourages one
potential and capable individual to take on more tasks to add value
to his/her job and in return enjoy added incentives and benefits.
1.6
ROLE OF HR MANAGERS IN THE CHANGING

BUSINESS ENVIRONMENT
Human Resource managers role is evolving every day as

the business is becoming more complex nowadays. The role of HR
managers should be seen in the context of many companies going
global.
a)
Developing strategy :
It is essential to devise a strategy for developing various soft

skills, sensitising employees with different cultures, motivating
employees etc. as this will help them to perform better. HR
mangers need to align the HR function with the corporate strategy.
b)
Proactive Action :
In the current challenging environment, HR mangers need to

take proactive actions rather than reactive actions. Proactive
actions help to handle activities or issues effectively before any
issue becomes a problem for the organisation. For example, due to
increased mobility of employees, there is good degree of labour
turnover in several organisations. As a result, organisations lose
talented people. Therefore, professional HR managers design
19
programmes and policies to reduce or overcome the problems of

exodus before it takes place. The HR manager should develop
programmes that results in employee commitment to the
organisation.
c)
Collective
management :
bargaining
and
labour
participation
in
Both activities are useful. HR manger has to play a key role

in the participative management techniques. However introduction
of participative management is difficult due to the attitude of trade
unions. How to secure co-operation of employees and their unions
in this regard is one challenge before the present day personnel
manager.
d)
Developing Integrated HR system :
In HR system there are several variables. The variables

include programmes and policies. The policies are in respect of
recruitment and selection, induction, training and development,
transfer and promotion, career development and compensation. All
the policies and programmes must be designed and integrated with
each other. So as to create a highly dedicated and committed
workforce. For example right from the recruitment and selection
stage to placement and promotion, the HR manager must adopt
systematic and scientific procedures.
e)
Developing employee commitment :
Employee loyalty is on the decline nowadays because of the

number of opportunities available nowadays to the employees. So
the HR manager has to device personnel strategies in the form of
monetary and non-monetary incentives that they dont leave the
organisation.
f)
Human Resource Research :
Nowadays, professional organisations undertake research

on different issues of management including HRM with a view to
solve problems facing the organisation. The HR research enables
organisations to evaluate the current HR policies and practices
adopted by the organisation vis-a-vis the competing firms. It also
helps managers to gain insights in the new HR policies and
practices adopted by firms in other industries, and also the
20
competing firms. Therefore, HR manager has to play an important

role in undertaking HR Research.
g)
Industrial relations :
A personnel manager has to face many challenges in the

area of industrial relations. Co-ordial industrial relation is difficult to
maintain due to excessive demands of employees and lack of
constructive approach on the part of trade union leadership.
Industrial dispute developed even due to minor causes and disturb
the orderly functioning of the industrial unit. How to maintain coordial industrial relations over a long period and have to maintain
meaningful communication with the employees are two problems
before HR manager.
h)
Career development :
Employees nowadays are highly career oriented.

HR department has to help them in building their careers by
properly harmonising employee goals with organisational goals. HR
departments has to undertake various training programmes to find
out the aptitudes, expectations, goals etc of the employees and
then chart out a career development program for each of them.
i)
Technology :
Technology is changing very fast. This is changing the job

profile and the attributes necessary to perform the job effectively.
HR department should encourage the employees by arranging
various training programmes for them to enable them to
continuously learn new skills and technology must be understand in
order to improve their productivity.
1.7
SUMMARY
HRM is concerned with managing manpower. Nowadays

human resources are treated as business assets. The nature of
HRM is: it is a process, it focuses on objectives, it is all pervasive, it
is a continuous activity, it involves various functions, it is
interdisciplinary, the aim of HRM is to develop and maintain team
spirit, it develops professional attitude, it brings long-term benefits,
it is dynamic in nature.
21
HRM includes Human resource planning, Job analysis,

Recruitment, Selection, Training and development, Performance
appraisal, Job evaluation, Executive remuneration, Motivation,
Safety and health, Employees welfare, Employee Communication,
Promotion and Transfer, Ethical issues in HRM etc.
HRM is important as it: provides competent manpower,
ensures effective use of manpower, facilitates motivation to
manpower, improves employees morale, facilitates career
development, establishes and maintains desirable working
relationship, improves corporate image, plays an important role in
fulfillment of social responsibility.
The role of HR managers in the context of globalization is:
to devise a strategy for developing various soft skills, to take
proactive actions, to play a key role in the participative
management techniques, to develop Integrated HR system, to
device personnel strategies in the form of monetary and nonmonetary incentives, to undertake research on different issues of
management including HRM, to face many challenges in the area
of industrial relations, to help the employees in building their
careers etc.
1.8
QUESTIONS FOR SELF - ASSESSMENT
a)
Define HRM and explain its nature.
b)
What is HRM? Discuss its scope.
c)
Explain the importance of HRM.
d)
Explain the Difference between Personnel management and

HRM.
e)
Discuss the role of HR managers in the changing business

environment.
22
2
HUMAN RESOURCE PLANNING
CONTENTS :
2.0
Objectives
2.1
Introduction
2.2
Human Resources Planning
2.2.1 Definition
2.2.2 Need / Importance of Human Resource Planning
2.3
The Process of HRP
2.4
Job Analysis
2.4.1 Meaning and Definition
2.4.2 Uses / Importance of Job Analysis
2.5
Components of Job Analysis
2.5.1 Job Description
2.5.2 Job Specification
2.6
Summary
2.7
Questions for Self Assessment
2.0
OBJECTIVES
After studying this chapter the students should be able to.
Understand human Resource planning.
Know the definition, and importance of HRP.
Evaluate the steps in HRP process.
Define job analysis and understand the uses of job analysis.
Discuss the contents of Job analyses.
2.1
INTRODUCTION
Human resource planning is difficult as the organization has

to find out its growth rate in future, areas in which it would expand
and diversify its operations, the technological changes that would
take place, the economic policies of government, availability of
human resource and so on. Furthermore after people are recruited
23
they have to be trained, necessary skills have to be imparted so

that they can be properly placed in the job.
2.2
HUMAN RESOURCES PLANNING
2.2.1 DEFINITION
Human resource planning involves identifying, recruiting,
training and placing people at right time and place in order to
maximize output.
2.2.2 NEED / IMPORTANCE
PLANNING
OF
HUMAN
RESOURCE
The following points suggest the importance of human

resource planning.
a)
Meeting manpower needs :
Every organization needs adequate and properly qualified

staff for conducting the regular business activities. HRP is useful for
meeting the growing and changing human resource needs of an
organization.
b)
Recruitment and selection :
A proper forecasting of personnel recruitments enables the

organization to determine proper sources of recruitment. The
organisation can also adopt a proper selection procedure
depending upon the needs of the jobs. Proper tests and interviews
can be designed to select the right candidate for the right job.
c)
Placement of personnel :
HRP facilitates placement of newly selected personnel in

different departments as per the qualifications and also as per the
need of different department it means fitting the right person at the
right place of work. Proper placement brings job satisfaction to the
employees and enhances employees efficiency.
24
d)
Performance appraisal :
HRP assists in performance appraisal of the employees in

the organization. Performance appraisal refers to identification of
strengths and weaknesses of the employees, relating to their jobs.
The performance appraisal is conducted to find out whether
the existing work-force has the necessary qualifications and
qualities as per the job requirements. If there are weaknesses, then
additional training or some other measures can be undertaken.
e)
Promotion and transfers :
Generally in an organization people are transferred to

another location or promoted if found competent. HRP helps in
identifying out the right candidate for promotion or transfer.
f)
Training :
HRP ensures training of the employees in the organisation.

Training involves imparting knowledge and developing attitudes,
skills and social behavior of the employees. HRP identifies the
training needs of the personnel. If the personnel lack knowledge
and skills, then necessary arrangements can be made by the
organisation to provide training.
g)
Determine future personnel needs :
It is necessary to find out the future personnel needs of the

organisation. Many companies are going global furthermore
environment is very dynamic, so it is becoming very difficult to
predict the exact requirements. The company growth rate and the
industry growth rate are indicators of finding future personnel
needs.
h)
Adjusting manpower requirements :
A situation many develop in an organization when there will

be surplus staff in one department and shortage of staff in some
other department. Transfer and promotion are made for meeting
such situations.
25
i)
Career development :
HRP facilitates career development of the employees in the

organisation. Career development refers to developing career of the
employees in the organisation. HRP is conducted taking into
consideration the long range plans of the organisation. The plans
are made known to members of the organisations. The employees
can plan for their careers within the organisation.
j)
Avoid surplus staff :
Surplus staff is one which does not contribute to the

productivity of the organisation. Such a surplus staff increases the
cost of production. Planning of human resource ensures that there
is no surplus staff in the organisation.
k)
Motivation of personnel :
HRP is concerned not only with the identification of the

personnel in terms of quality and quantity, but it is also concerned
with the improvement and motivation of the human resources. The
organisation would make every possible effort to have dedicated
and committed personnel at all levels in the organisation.
l)
Help in strategy formulation :
Various marketing, management, finance strategies are

formulated in the organisation. Strategies are plans for future.
These strategies would be effective and relevant only when the
employee has an idea about the various resources including human
resource. HRP guides him in this respect.
2.3
THE PROCESS OF HRP
The process of HRP is crucial and involves many steps.

Establishing staffing needs as per the organisational objectives and
plans is the starting point of HRP process. For this, human resource
forecasting is necessary.
Following are the steps in the HRP process.
26
a)
Analyzing organizational plans :
To begin with, the objective and plans of the company are

analyzed. Plans concerning technology, production, marketing,
finance, expansion and diversification give an idea about the
volume of future work activity. Each plan can further be analysed
into sub-plans and also prepare a time schedule to achieve the
objective.
b)
Forecasting demand for HR :
The next step involves forecasting the short term and the
long term demand of various departments of the organisation in
particular and of the industry in general. This depends upon the
expansion and diversification plans of the organization. Such a
forecasting helps in preventing surplus or shortage of staff.
c)
Forecasting supply of HR :
The HRD manager should also forecast the availability of

manpower. The required manpower may be available within the
company, or they may be required to be hired from the labour
market.
d)
Reconciliation :
The next step involves reconciling or matching the demand

with supply. If it is not reconciling, i.e. if the demand is likely to
exceed the supply then the HR team should try to find out if people
can be recruited from other places which may even include
overseas recruitment.
e)
Finalizing action plan :
After having identified manpower gap, plans are prepared to

bridge these gaps. Plans to meet the surplus manpower may be
redeployment in other department / units and retrenchment in
consultation with trade unions. Employees may be asked to quit
voluntarily through golden handshake. Deficit can be met through
recruitment,
selection, transfer, promotion and training
programmes.
f)
Monitoring HR requirement :
27
The organisation needs to monitor the requirement of HR.

It requires necessary action to be taken. It is important to update
manpower inventory periodically. Appropriate changes in the
manpower plans should be made in the light of rapidly changing
environment.
In brief above stated all steps are involved in the human
resource planning process.
2.4
JOB ANALYSIS
2.4.1 MEANING AND DEFINITION

A job may be defined as a sum total of task, duties and
responsibilities which is assigned to individual employees.
After a job has been defined, it is analysed that each task is
described in detail which is called as job analysis. Job analysis is
the starting point of recruitment and selection. It is a systematic
process of collecting and studying information about the various
jobs in the organisation.
According to Edwin flipper :
Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a
specific job.
2.4.2 USES / IMPORTANCE OF JOB ANALYSIS
Job analysis is the foundation of many human resource
management programmes. Job analysis is important due to the
following.
a)
Organizational structure and design :
By classifying job requirements and the interrelationships

among jobs, responsibilities at all levels can be specified. This help
to promote organizational efficiency and effectiveness. It also
minimize overlapping or duplication of work.
28
b)
Facilitates human resource planning :
Job analysis provides useful information for forecasting

manpower requirements in terms of knowledge and skills. It helps in
determining quality of human resources required in an organization.
In short, job analysis is an essential element of effective human
resource planning.
c)
Facilitates recruitment and selection :
Job analysis is the starting point of recruitment and selection.

Properly analysed jobs can be advertised effectively. Only the
suitable candidates apply for the job. This facilitates proper
selection.
d)
Facilitates performance appraisal :
A company can make scientific and impartial performance

appraisal of its employees with the help of job analysis. Job
analysis helps in determining performance standard against which
the actual performance of employees is measured. Such appraisal
is useful for promotion, identification of training needs and pay
increase.
e)
Facilitates placement :
Job analysis facilitates proper placement. The selected

candidates can be placed at the right job depending upon their
qualities, qualifications and experience.
f)
Facilitates manpower training development programmes
Job analysis suggests the qualities necessary for performing

specific job. This information can be used in a purposeful manner
while framing training needs and programmes for different jobs. Job
analysis provides valuable information to identify training and
development needs of different individuals. Similarly, employee
development programmes such as job rotation, job enlargement
and job enrichment are based on the analysis of job requirements.
g)
Labour relations :
Information obtained through job analysis is helpful to both

management and trade unions for collective bargaining. It can also
be used to resolve disputes and grievances relating to working
29
conditions, working hours, etc. This helps to build healthy relations

between labour and management.
h)
Facilitates job evaluation :
Job evaluation is a process of determining the relative worth

of different jobs in an organisation with a view to link compensation
as per the worth of the job. Job analysis provides the worth of a job
through Job description and job specification.
i)
Facilitates employee counseling :
Job analysis provides information relating to the strengths

and weaknesses of employees and also the career opportunities
available within the organization. Such information is helpful in
vocational guidance and counseling.
j)
Facilitates scientific promotions and transfers :
Promotions and transfers become easy, quick, and accurate

on the basis of data available from job analysis.
k)
Facilitates career planning :
Job analysis helps in thorough understanding of the

requirements of available jobs and how jobs at succeeding levels
relate to one another. With the help of such understanding,
employees and the organisation can make efforts for career
planning and career development.
l)
Employee health and safely :
Job analysis helps to discover unhealthy and hazardous

environmental and operational conditions in various jobs. Heat,
noise, dust etc. are examples of such conditions. Such information
enables the management to take corrective measures to minimize
and avoid the possibility of accidents and thus, to ensure the health
and safety of employees.
m)
Facilitates redesigning of jobs :
Job analysis gives the details of different jobs and facilitates

redesigning of jobs so as to improve operational performance or to
enrich job content and employee improvement.
30
n)
Acceptance of the job offer :
Job analysis is useful to the candidate for the acceptance of

the job offer. The candidate can get clear and correct information
about the duties, salary, working conditions, promotion,
opportunities etc. This facilitates the candidates decision to accept
or reject the job offer.
CHECK YOUR PROGRESS
1.
The process of HRP is crucial. Discuss.
2.
Enlist the points suggesting the importance of human

resource planning.
3.

management programmes. Discuss.
4.
Enlist the points stating the importance of Job analysis.
5.
Explain the following steps of the process of HRP:
2.5
a.
Analyzing organizational plans
b.
Forecasting demand for HR
c.
Reconciliation
d.
Monitoring HR requirement
COMPONENS OF JOB ANALYSIS
There are two components of job analysis:

1.
Job description
2.
Job specification
Following figure explains the Contents of Job analysis:
31
2.5.3 JOB DESCRIPTION :

Job description includes basic job-related data that is useful
to advertise a specific job and attract a pool of talent. The
preparation of job description is very important before a vacancy is
advertised. It tells in brief the nature and type of job. It includes
information such as job title, job location, reporting to and of
employees, job summary, nature and objectives of a job, tasks and
duties to be performed, working conditions, machines, tools and
equipments to be used by a prospective worker and hazards
involved in it. A job description gives an account of the work and
duties associated with a particular job.
Following are the contents of Job Description :
a.
The nature of duties and operations to be performed in that

job.
b.
The nature of authority- responsibility relationships.
c.
Necessary qualifications that is required for the job.
d.
Relationship of that job with other jobs in a concern.
e.
The provision of physical and working condition or the work

environment required in performance of that job.
32
Advantages of Job Description :
a.
It helps the supervisors in assigning work to the subordinates

so that he can guide and monitor their performances.
b.
It helps in recruitment and selection procedures.
c.
It assists in manpower planning.
d.
It is also helpful in performance appraisal.
e.
It is helpful in job evaluation in order to decide about rate of

remuneration for a specific job.
f.
It also helps in chalking out training and development

programmes.
Purpose of Job Description:
a.
The main purpose of job description is to collect job-related

data in order to advertise for a particular job.
b.
It helps in attracting, targeting, recruiting and selecting the

right candidate for the right job.
c.
It is done to determine what needs to be delivered in a

particular job.
d.
It clarifies what employees are supposed to do if selected

for that particular job opening
e.
It gives recruiting staff a clear view what kind of candidate is

required by a particular department or division to perform a
specific task or job.
f.
It also clarifies who will report to whom.
2.5.4 JOB SPECIFICATION :

It is a statement which tells us minimum acceptable human
qualities which helps to perform a job. Job specification translates
the job description into human qualifications so that a job can be
performed in a better manner. Job specification helps in hiring an
appropriate person for an appropriate position. Job specifications
includes
things, such as educational qualifications, specific
qualities, level of experience, physical, emotional, technical and
communication skills required to perform a job, responsibilities
33
involved in a job and other unusual sensory demands. It also

includes general health, mental health, intelligence, aptitude,
memory, judgment, leadership skills, emotional ability, adaptability,
flexibility, values and ethics, manners and creativity, etc. It is a
statement of employee characteristics and qualifications required
for satisfactory performance of defined duties and tasks comprising
a specific job or function.
The contents are :
a.
Job title and designation
b.
Educational qualifications for that title
c.
Physical and other related attributes
d.
Physique and mental health
e.
Special attributes and abilities
f.
Maturity and dependability
g.
Relationship of that job with other jobs in a concern.
Advantages of Job Specification :
a.
It is helpful in preliminary screening in the selection

procedure.
b.
It helps in giving due justification to each job.
c.
It also helps in designing training and development

programmes.
d.
It helps the supervisors for counseling and monitoring

performance of employees.
e.
It helps in job evaluation.
f.
It helps the management to take decisions regarding

promotion, transfers and giving extra benefits to the
employees.
Purpose of Job Specification :
a.
Job specification helps candidates analyze whether they are

eligible to apply for a particular job vacancy or not as the Job
Specification gives detailed information about any job
34
including job responsibilities, desired technical and physical

skills, conversational ability and much more
b.
It helps recruiting team of an organization understand what

level of qualifications, qualities and set of characteristics
should be present in a candidate to make him or her eligible
for the job.
c.
It helps in selecting the most appropriate candidate for a

particular job.
2.6
SUMMARY
Human resource planning is necessary on every stage of

HRD. HRP is important for: Meeting manpower needs, Recruitment
and selection, Placement of personnel, Performance appraisal,
Promotion and transfers, Training, finding future personnel needs,
Adjusting manpower requirements, Career development, Avoiding
surplus staff, Motivating the personnel etc.
The process of HRP includes the steps like: Analyzing
organizational plans, Forecasting demand for HR, Forecasting
supply of HR, Matching the demand with supply, Finalizing action
plan, Monitoring HR requirement etc.
Job analyses mean the description of various tasks in detail.
management programmes. Job analysis is important due to the
reasons like: for preparing Organizational structure and design, it
facilitates human resource planning, facilitates recruitment and
selection, facilitates performance appraisal, facilitates placement,
facilitates manpower training development programmes, helpful for
healthy labour relations, facilitates job evaluation, facilitates
employee counseling, facilitates scientific promotions and transfers,
facilitates career planning, ensures the health and safety of
employees, facilitates redesigning of jobs, useful to the candidate
for the acceptance of the job offer. Job description and Job
specification are the main components of Job analysis.
2.7
QUESTIONS FOR SELF ASSESSMENT
1.
What is human resource planning? Discuss its importance.
2.
Explain steps in HRP process.
35
3.
What is job Analysis? Bracing out its uses.
4.
Write short notes

a. Job Analysis
b. Job Specification
c. Job Description
36
3
RECRUITMENT AND SELECTION
CONTENTS :
3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
Objectives
Introduction
Definition and Meaning of Recruitment
Factors Governing Recruitment
Constraints of Managers to Recruit
Sources of Recruitment
Definition and Meaning of Selection
Selection Procedures
Steps in the Selection Process
Summary
Questions
3.0
OBJECTIVES
To provide an overview of the various

aspects of
Recruitment and Selection.
To define Recruitment and Selection.
To understand the importance of Recruitment and Selection.
To see the factors Influencing Recruitment.
To highlight the problems in Recruitment and Selection.
To explain the steps involved in the selection procedure.
To highlight the sources of Recruitment.
3.1
INTRODUCTION
In any organisation the Human Resource is the most

dynamic Asset. It is essential to put the right person on the right job.
Recruitment and Selection is a process whereby the Human
Resource Managers in the company find the most suitable
employees to fill the multiple vacancies in the organisation. Now
days there is a on choosing a recruit on scientific grounds using
objective criteria, to avoid any bias. If the organizations have
dedicated and highly skilled persons with high morale, they can
easily march ahead.
37
The procedure of Recruitment and Selection is mainly

concerned with matching man and job. It basically involves
answering important questions like
* From where to Source the employees.
* How to judge their potential.
* How to select the right person for the right job.
* How to induct the new recruit into the organization.
* How to allot duties and responsibilities to the new recruit.
The success of any business organization largely vests on
the qualification, skill and ability of the employees who are the real
contributors to the eventual success of the organization.
3.2
DEFINITION AND MEANING OF RECRUITMENT
Recruitment is a positive function in the process of acquiring

Human resource for the organization. It is a process of attracting
and obtaining as many applications as possible from eligible
persons seeking jobs. It involves searching for the right persons
and encouraging them to apply for jobs. This enables the company
to have a wide choice. Suitable employee can be selected from the
pool of applicants.
Definitions of Recruitment
(1)
According to Edwin B. Flippo
"Recruitment is the process of searching the candidates for

employment and stimulating them to apply for the job in the
organisation."
(2)
According to Knootz and O'donnell
"Recruitment involves selecting the best candidates from

among the applicants to fill various jobs in the organization."
(3)
"Recruitment is a process to discover the sources of
manpower to meet the requirements of the staff schedule and to
employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient
works force. - by Yoder.
38
Thus we can say that the process of recruitment is the

process of finding suitable candidates for filling the vacancies in
the organization. It is the first step involved in hiring job-seekers. It
begins with receiving applications from prospective employees and
ends with eliminating unsuitable candidates.
3.3
FACTORS GOVERNING RECRUITMENT
Recruitment involves encouraging prospective job-seekers to apply

for the job.
Recruitment process is governed by a number of factors. It is

mainly influenced by External and Internal forces.
Factors Governing Recruitment:
External Forces
Internal Forces
(a) Supply and demand
(a) Recruitment policy
(b) Unemployment rate
(b) Human Resource Planning
(c) Labour market
(c) Size of the Firm
(d) Political - legal
(d) Cost
(e) Sons of Soil
(e) Growth and Expansion.
(f) Co. Image

External Forces:
(a)
Supply and demand :
The supply and demand of a particular skill or ability will

influence the process of recruitment. If the demand for specific skill
and ability is very high in the organization but the availability of
persons with the required skill and ability is limited in the market,
the organization will have to make extraordinary effort
to attract suitable candidates. For e.g. demand for Software
39
Programmers, Financial Planners is very high but the number of

qualified persons available is limited.
(b)
Unemployment rate :
If the rate of unemployment in a given area is very high, it is

easier to recruit suitable candidates as it will be easy to attract
suitable candidates to apply for the jobs. On the other hand, as the
unemployment rate drops, it is more difficult to recruit candidates
and attract them to job.
(c)
Labour market :
The availability of suitable candidates in the job market is of

prime importance, specially in recruiting non-managerial,
supervisory and middle management positions.
(d)
Political and legal factors :
When recruiting suitable candidates, the organization must

take due care of political and legal considerations in the form of
reservations for SCs and STs, women, minorities, and backward
classes as decided by the government policy. Due care must be
taken of the provisions pertaining to working conditions,
compensation, recruitment benefits, health and safety of the
employees. There are various Acts which deal with recruitment and
selection. Child labour (Prohibition and Regulation) Act 1986
prohibits employment of children in certain employment. The
Factories Act 1948, Mines Act 1952, also deal with provisions
pertaining to recruitment. Constitution also prohibits discrimination
in matters of employment.
(e)
Sons of Soil :
Political leaders insist on giving first preference to

prospective candidates by the respective state or local area and
restrict employment oppotunities to outsiders.
(f)
The Company' Image :
The goodwill and reputation enjoyed by Company helps to

build its image and attract job seekers. Well known companies like
Tatas, Reliance, and Infosys attract vast number of applicants for
job vacancies in their organization.
40
Internal Factors:
These are factors present within the organization, which

influence the recruitment of employees in the Company.
(a)
Recruitment Policy :
Most firms have their own recruitment policy based on

various criteria such as whether promotion will be effected from
within the organization and existing vacancies will be filled from
internal sources or they will seek fresh blood in the form of external
sources of recruitment. Firm will also consider converting the
temporary employees into permanent employees. Some companies
prefer to give an opportunity to the friends and relatives of existing
employees to enhance the loyalty factor.
(b)
Human Resource Planning (HRP) :
HRP involves forecasting the firm's future demand for and

supply of the right type of people in the right number. The company
will assess its own need of employees with the help of the Human
Resource Management's department. The organization will know
the surplus or shortage of employees and thereby plan to hire the
right number and type of employees.
(c)
Size of the firms :
Generally large size firms find it easier to recruit new

employees as compared to smaller size firms.
(d)
Cost :
Hiring new employees involves considerable cost in the form

of placing an advertisement, conducting interviews, sending out
letters of recruitment etc. The Company must assess its own
budget and find the most economical manner of recruitment.
(e)
Growth and Expansion :
Those companies which are constantly growing and

diversifying will require more employees over a period of time and
41
recruit more personnel. Companies which are ever expanding into

new sectors merging, taking-over companies will have ever
increasing need for newer employees.
3.4
CONSTRAINTS OF MANAGERS TO RECRUIT
Managers face a number of constraints in the process of

recruiting the candidates for their organization.
Following are some of the major constraints faced.
(a)
Finding the right kind of employee.
(b)
It requires a keen sense of judgment, foresight to pick the

right candidate.
(c)
Possibility of wrong person being selected.
(d)
Increasing level of competitiveness makes it difficult to find

the right person.
(e)
Limiting government policies and organizational policies

force managers to narrow their choice.
(f)
Dynamic nature of the job market and changing job profile

makes difficult to assess the applicant on a specific skill and
ability.
(g)
The manager may lack good business perspective to find

and place the candidate for a particular job.
(i)
High cost of recruitment is also a limiting factor.
(j)
Problem of high rate of turnover and job- hopping in specific

industries make it difficult to recruit highly motivated
employees.
(h)
Ineffective Human Resource Planning makes it difficult for

Human Resource Managers to understand the exact type
and number of personnel required in the organization.
(i)
Political and Social pressures on Managers to source

potential employees from a given area or state and promote
local recruitment limits the choice.
42
3.5
SOURCES OF RECRUITMENT
There are two main Sources of Recruitment, viz.

(a) Internal Sources
(b) External Sources
Sources of Recruitment
Internal Sources
External Sources
(a) Current Employees
(a) Advertisement
(b) Ex- employees
(b) Campus recruitment
(c) Friends and Relatives of
(c) Employment Exchanges
existing employees
(d) Data base of previous applicants (d) Placement agencies
(e) Walk-in and talk-in
(f) Consultants
(g) Contractors
(h) Professional or Trade Associations
(i) E- recruiting
Internal Sources of Recruitment
(a)
Current Employees :
The present employees can be transferred or promoted to

higher post. This method has a positive influence on the present
employees as it motivates them to work hard. The company can
43
save considerable cost of recruitment. The current employees are

well known to the organization and this can foster their loyalty.
However it gives scope of bias. The personnel manager has limited
choice as he has to select candidates already present leaving no
scope for fresh blood with new ideas and innovative outlook.
(b)
Ex- Employees :
Employees who may have retired or may have left the

current job due to a desire for a break or personal factors may show
an interest in rejoining. Such employees can be considered as they
are well versed with the organization.
(c)
Friends and Relatives of existing employees :
Current employees may recommend prospective candidates

from among people known to them including their friends and
relatives. Human resource Managers generally ask the existing
employees to bring persons known to them, specially for lower level
jobs. Jobs are also allotted to sons and daughters of retired
personnel or in place of deceased workers on sympathetic grounds.
The company can save considerable cost.
(d)
Data base of previous applicants :
The company may have collected a pool of applicants who

may have applied for the jobs earlier. When a new recruit is
required, the company can select from the pool of available
applications and shortlist suitable candidate. This saves the cost of
fresh recruitment.
Benefits of Internal Recruitment
(a)
Saves cost of recruitment.
(b)
Motivation to existing employees.
(c)
The managers are well aware of the potential and

capabilities of the existing employees.
(d)
Fosters loyalty and dedication.
(e)
Employees can get job satisfaction.
(f)
Suitable for lower level jobs.
44
Limitations of Internal Recruitment

(a)
The managers have a narrow choice as they have to select

candidates from within the organization.
(b)
Scope for bias and favouritism.
(c)
No fresh ideas and new blood will enter the organization.
(d)
It is not suitable for top level jobs.
External Sources of Recruitment

External Sources of recruitment are more widely used by a
firm to choose a potential employee. Following are the various
sources of external recruitment.
(a)
Advertisement :
This is the most popular and widely used method of

recruitment. The Company places advertisement in leading
newspapers and magazines. The wanted advertisement describes
the job, identifies the employer, and outlines the duties and
responsibilities. It invites suitable candidates fulfilling the
requirement of specific skill and ability to apply for the job. Such
advertisements have a wide reach and seek potential employees
from all areas.
When giving advertisement the company must carry out job
analyses and clearly give out job specifications and job description.
(b)
Campus recruitment :
Management Institutes, IITs, Engineering colleges are good

sources from where
companies source new recruits. Such
a source is suitable when companies are looking for freshers.
A number of Institutes have their placement cells.
The Companies contact the placement cells and inform them
about the vacancies in their organizations or the placement cells
contact the companies and inform them about the availability of the
prospective candidates.
(c)
Employment Exchanges :
45
Employment Exchanges are set up all over the country in

deference to the provisions of the Employment Exchanges
(compulsory notification of vacancies) Act 1959.
The Act applies to all industrial establishments having 25
workers. The Act requires all companies to notify the vacancies
before they are filled. These Exchanges have a pool of applicants.
They supply the information to the company and serve as a link
between the Employment Exchange and the company.
(d)
Placement agencies :
Private placement agencies collect a pool of applicants from

prospective candidates and help to be placed in organization where
suitable vacancies are present. The agencies get commission from
the companies.
(e)
Walk-in and talk-in :
These are popularly called as gate recruitment. This is the

most widely used and economical way of recruitment. Job-seekers
may either walk in or call up seeking jobs and leave their resume
and contact details. This direct approach often helps the companies
to find suitable employees.
(f)
Consultants :
Nowadays a number of consultants offer their services to

find suitable candidates for the companies. Some of the leading
consultants in the field include Head Hunters, Ferguson
Association, Batliboi & co. The consultants have contacts with a
large number of people. However, this is an expensive method as
consultants charge 20 to 50 percent of the annual salary as fees.
(g)
Contractors :
When companies require casual workers for a short tenure,

they depend on job contractors to find such workers. The workers
are terminated on completion of the task.
(h)
Professional or Trade Associations :
Many Associations provide placement services for their

members. Most of the Professional and Trade Associations publish
journals or magazines for their members. These publications carry
46
classified advertisement inviting applications from highly educated

and qualified persons.
(i)
E- recruiting :
With the growing role of internet E-recruitment is fast

becoming a preferred source of recruitment. This has a wide scope
and can source applications from all over the world. This is
economical method as it involves minimum cost.
Benefits of External Recruitment
(a)
Unbiased and objective method of finding employees.
(b)
The company has a wide choice.
(c)
Persons with new ideas join the firm.
Limitations of External Sources of Recruitment

(a)
It is an expensive and time consuming process.
(b)
The present employees get demotivated.
(c)
It will lead to strained employer-employee relationship.
CHECK YOUR PROGRESS

1.
Give Definitions of Recruitment
2.
Enlist the factors governing Recruitment process.
3.
Fill in the blanks

a. There are mainly two sources of recruitment namely,
---------------- and ---------------b. ---------------------- is the process of searching for
candidates for employment and stimulating them to apply
for the job.
c. ----------------- are popularly called as gate recruitment.
d. When companies require casual workers for a short
tenure, they depend on -----------------------------------.
47
e. ----------------------- is a suitable source when companies

are looking for freshers.
f. ------------------------ method has a positive influence on the
present employees.
3.6
DEFINITION AND MEANING OF SELECTION
Selection is a negative process as it rejects those candidates

who are not suitable for the job. Selection is the process whereby
applications are screened and those applications which are
unsuitable for the jobs are rejected.
Definitions of Selection :
(a)
"Selection is a long process, commencing from preliminary
interview of the applicants and ending with the contract of
employment."
- by C.B. Mamoria and S.V. Gankar.
(b)
"The hiring process is of one or many go, no-go gauges .
Candidates are screened by the applications of these tools.
Qualified applicants go on to the next hurdle, while the unqualified
are eliminated."
by - Yoder
(c)
"Selection is the process of differentiating between
applicants in order to identify and hire those with a greater
likelihood of success in a job.
- K. Aswnthappa
3.7
SELECTION PROCEDURES
Till recently the process of hiring employees in an

organisation was carried out in an unplanned manner where each
department hired its own candidate. This led to unscientific
selection. Nowadays selection in an organisation is streamlined and
centralised. Every organisation has a Human Resource Department
which looks after the selection of the candidates for the entire
organization. This is a systematic process as all the applications
are received by a centralised department who scrutinize the
48
applications and call suitable candidates for job interviews. This

helps to considerably reduce cost and also avoids duplication of
work. The HRM department hires specialists and well trained staff
to select the right candidate.
3.8
STEPS IN THE SELECTION PROCESS
A number of steps are involved in the selection process.

Following are the main steps involved in the process of scientific
selection of the right person for the right job.
Selection Process:
(a)
Application blank & screening the application.
(b)
Preliminary Interview.
(c)
Selection Tests.
(d)
Personal Interview.
(e)
Reference Check.
(f)
Medical Examination.
(g)
Job offer
(h)
Final selection for appointment and job contract.
(a)
Application blank & screening the application :
The prospective employees are given application blank to

seek information which includes their personal data, educational
data, physical data, employment data and references. The
information is screened to find suitable candidates to invite them for
a preliminary interview.
(b)
Preliminary Interview :
The preliminary interview is conducted by the Human

Resource Specialist to get pertinent information on the candidate
and to have a courtesy conversation with the shortlisted candidate.
The HR specialist can verify the testimonials, certificates brought by
the candidate and reject unqualified and unsuitable candidates who
do not meet organizational needs.
49
(c)
Selection Tests :
Job seekers who qualify for the job after passing through
preliminary interview are called for selection tests. Different types of
psychological test like aptitude test, interest test, personality test
are administered to determine the ability and skill of the prospective
candidate. Nowadays companies also use graphology to
understand the characteristics of the candidates by analysing their
handwriting.
(d)
Personal Interview :
Shortlisted candidates who qualify in the tests are called for

employment & interview for final selection. An interview is face to
face communication and one of the best ways of understanding the
candidate and seeks direct information from him. Interviews are
formal in nature and help to have an in-depth conversation with the
prospective candidate.
Interviews may be of the following type.
(e)
Structured Interview: This type of interview is formal in

nature. The interviewer has well defined predecided set of
questions which he asks the candidate.
Unstructured Interview: This is more informal in nature and

encourages the candidate to talk freely about himself and
voice his opinion.
In-depth Interview: This is conducted on short-listed

candidate to get full details about their ability, skill, past
experience, expectation, qualification etc.
Panel Interview: When the interview is conducted by two or

more interviewers who are representatives of the various
departments of the company.
Reference Check :
The employers often ask the candidate for character

certificates and references from past employers, known persons or
from their teachers and principals. The companies may also
conduct a background check to establish the credentials of the
candidate. This check also helps to detect fraud status.
50
(f)
Medical Examination :
A medical fitness test iis administered to see the physical

fitness of the candidate. Many jobs have specific requirement in
terms of physical characteristics, in terms of health, eye-sight,
hearing ability. The medical examination result will determine if the
candidate is physically fit to undertake the job. It will also help to
detect diseases which may be detrimental for the job.
(g)
Job offer :
The successful candidates who pass the interview and

medical examination are finally short-listed and a job offer is made.
This will include issuing a letter of appointment. It will outline details
of job, its nature, duties, responsibilities, timing and salary payable.
(h)
Final selection for appointment and job contract. If the
candidate accepts the job offer, he binds himself with the rules and
regulations of the organisation. He may then be successfully
inducted in the job. A formal job contract is signed accepting the
terms and conditions laid down by the company. The candidate is
thus placed in a suitable post. He is told what are his duties and
responsibilities and asked to commence his job.
3.9
SUMMARY
Recruitment and selection is a process of finding the right

candidates and selecting them for the organisation.
There are two sources of recruitment namely, External and

Internal.
Steps in selection process include

(1)
Application blank
(2)
(3)
Selection Tests.
(4)
Personal Interview.
(5)
Reference Check.
(6)
Medical Examination.
51
(7)
Job offer
(8)
Final selection for appointment and job contract.
Types of Interviews
There are various types of Interviews
(a)
Structured Interview
(b)
Unstructured Interview
(c)
In-depth Interview
(d)
Panel Interview
3.10
QUESTIONS
Questions :
(Q1)
What is recruitment? Explain the sources of recruitment.
(Q2)
Explain the factors influencing recruitment.
(Q3)
What are the steps in the selection process?
(Q4)
Name and explain the various types of interviews.
(Q5)
Explain the following concepts.

1.
Selection.
2.
Constraints of Managers to recruit.
3.
Selection Procedure.
4.
5.
Selection tests.
52
4
PSYCHOLOGICAL TESTING
CONTENTS :
4.0
Objectives
4.1
Introduction
4.2
Meaning and Objectives
4.2.1 Meaning
4.2.2 Objectives/Purpose
4.2.3 Characteristics
4.3
Classification of Psychological Testing
4.4
Advantages
4.5
Guidelines for Carrying Psychological Tests
4.6
Summary
4.7
Questions
5.0
OBJECTIVES
After studying the unit the students will be able:
To understand the meaning of Psychological testing.
To know the purpose of such a testing
To learn the characteristics of this kind of testing
To understand various types/Classification of it.
To know the merits and benefits of such a testing
To understand various points to be considered while carrying

such as testing
4.1
INTRODUCTION
Use of employment tests is fairly widespread in personnel

selection. Such tests provide a systematic basis for comparing
performance, personality traits and intelligence. Employment tests
are important and essential as they facilitate the selection of most
promising candidate for specific post. Such tests are useful for
judging the mental qualities of candidates which are not directly
visible. The use of such tests is increasing and proves useful to the
53
organizations. Many benefits are available from such employment

tests for selection as well as for appropriate placement, promotion,
transfer, counseling and so on. Psychological test is one of the
employment tests.
4.2
MEANING AND OBJECTIVES
4.2.1 MEANING
While appointing candidates in the organization or while
staffing, the most important step followed is employment test.
Different type of employment tests helps in understanding
personality, psychological, social and general attitude of
candidates. These tests are compulsory. These tests reveal the
potentialities and abilities of candidate to be appointed for the job.
These tests are administered by experts. These tests are carried
according to the specific job so that the right candidate can be
chosen for the job.
4.2.2 OBJECTIVES/PURPOSE
To know the personality traits and qualities of prospective

candidate.
To know the reasoning ability and analytical capacities of

candidate.
To understand the behavioral pattern of candidate.
To know the interests of candidate so that he can be

assigned job according to his interest.
To understand the technical knowledge of the candidate
To understand the alertness of behavior of the candidate
To know, how he will perform if complex situation emerges
To know candidates comprehension reasoning.
4.2.3 CHARACTERISTICS
These tests are selective in nature. As they are taken

according to the specific job requirement.
54
These test are a part of selection process as without these

test the appointments are not made
They are taken before the appointment of the candidate so

that the proper selection and placement is assured.
They are inclusive of Psychological attribute testing of

candidates as along with external body features it is
necessary to know the internal behavioral attributes too.
They are universally taken by all the organization as a part of

selection process.
They serve the interest of an organization in selecting human

resources or asset to work for them.
These tests are peculiar as they are conducted by experts

and psychologists.
They are suitable for all kind of occupations or jobs.
They consist of number of tests know the overall abilities of

the candidates.
4.3
CLASSIFICATION OF PSYCHOLOGICAL
TESTING
Following are the various types of Psychological Test

1.
Intelligence test
This test is carried out to understand the cognitively of the

candidate. It is the most important employment test. It helps to
know the alertness, comprehension and reasoning power of the
candidate necessary to perform toward duties for which he is going
to be appointed. This test is taken to know the ability of the
candidate to form concepts, to solve problems, to reason and carry
intellectual operations. With the help this test, IQ of an individual is
assessed.
2.
Aptitude test
This test is taken to know in which area or field the candidate

can excel. It is occupational oriented intelligence test. An exam
used to determine an individual's propensity to succeed in a given
activity. Aptitude tests assume that individuals have inherent
55
strengths and weaknesses, and are naturally inclined toward

success or failure in certain areas based on their inherent
characteristics. For the selection of career, this test is very
important. It specifies the suitability of the candidate for the job.
This test answers if candidate has special aptitude or not.
3.
Interest test
This test is carried to know the individuals vocational

potential or to compare his performance. It reveals his intensity to
work for what he is assigned to work for. It helps to know whether
an individual is seeking the work where he is interested in.
4.
Achievement test
This test is carried to know the proficiency over something

achieved in job. It speaks about the knowledge of an individual in
the work or job assigned to him. This test is often taken and is
essential for performance appraisal of an individual.
5.
Analytical test
This test is taken to know the logical thinking of an individual

or his power to understand the situation or problem. This test is
necessary today to be taken because the target oriented jobs need
analytical thinking among executives. Communication industry
carries this test.
6.
Performance test
This test is taken to see the effectiveness of an employee

toward the job he is assigned to do or the post he is selected. It
speaks about the time taken for accomplishing given task and the
measurement of active participation in work.
7.
Personality test
This test is taken to know the particular behavioral pattern of

an individual or candidate. It reveals their attitude, nature,
personality traits etc. This test is carried to know the smartness of
an individual and his behavior toward general appeal.
It speaks about temperament of the candidate.
56
4.4
ADVANTAGES
1.
Sound selection :
Psychological tests helps in selecting the suitable candidate

for the job as he has to undergo for all kind of test required for his
appointment and nature of job. the selection done after these test is
always sound and organization is benefited as the outcome and
productivity of candidates qualified in these test is always high and
positive.
2.
Compatibility :
As good number of candidates apply for the job with due

qualification, it is necessary to select the right person for the job.
Here these tests help management to do the selection of
excellence. Comparison can be made between candidate and more
promising one can be chosen without condition.
3.
Metal qualities :
After holding employment tests, the mental abilities of the

candidates can be easily traced out. These tests helps to
understand the cognitively of candidates and his power of
knowledge.
4.
Application of knowledge :
Having degrees and qualification never assures job to the

candidates. Here these tests enables organization to understand
how they apply their senses and knowledge toward the tests
conducted. Their smartness, alertness and interest is revealed from
these tests.
5.
Accuracy and exactness :
These tests help in following accuracy in the selection

process and to bring exactness in the staffing. It assures right man
selected for the right job.
57
4.5
GUIDELINES FOR CARRYING PSYCHOLOGICAL

TESTS
Before carrying these tests, the nature of job should be taken

into consideration. It means the job analysis should be done
well.
Objective of selecting the right person for right job should not
be overlooked.
The candidates should be assessed objectively in such a

testing
The appointment of experts and psychologist should be done

for carrying such tests
The tests should be inclusive of all its types to understand

the candidate to the best of his knowledge.
The test must be carried as a compulsory and integral part of

selection process.
Subjectivity should not be entertainment.
These tests should be carried in the centers and scope for

the environmental aptness should be left for the best
performance of candidates.
4.6
SUMMARY
Psychological tests are helpful for knowing the personality

traits and qualities of prospective candidate. The psychological
tests given to candidates include Intelligence test, Aptitude test,
Interest test, Achievement test, Analytical test, performance test,
synthetic test and personality test. Each test needs to be given
separately and each test is useful for judging specific quality of a
candidate to be selected for the executive post.
Sound selection, Compatibility, Metal qualities, Application of
knowledge, Accuracy and exactness, these are the main
advantages of Psychological testing
4.7
1)
QUESTIONS
What is Psychological testing? What are the objectives of it?
58
2)
Explain the features of psychological testing.
3)
Why Psychological testing is carried?
4)
What are the classifications of psychological testing?
5)
Explain the merits of psychological testing
6)
What points should

psychological testing?
be
considered
while
carrying
59
5
INTERVIEW
CONTENTS :
5.0
Objectives
5.1
Introduction
5.2
Meaning And Objectives of Interview
5.2.1 Meaning
5.2.2 Objectives of An Interview
5.3
Types of Interview
5.4
Guidelines for an Effective Interview
5.5
Steps or Process of Interview
5.6
Role / Advantages of Interview
5.7
Guidelines for Interviewee
5.8
Limitations of an Interview
5.9
Summary
5.10 Questions
5.0
OBJECTIVES
After studying this unit the students will be able:
To understand the meaning and objective of interview
To know the types of interviews taken
To understand the process of an interview
To discuss guidelines for effective interview
To focus on limitations of interview
5.1
INTRODUCTION
Every organization requires human resource to work for

them and lead the organization ahead. There are many ways of
recruitment and selection. One of the important stages of the
selection process is interview. It is the interpersonal way of
understanding the applicant personally and observes them before
the appointment is done. Almost interview has become the integral
part of selection process. It is the strong way of adding valuable
60
human resources with existing one. So in this unit we are going to

learn about interview and various issues related to it.
5.2
MEANING AND OBJECTIVES OF INTERVIEW
5.2.1 MEANING
An interview is an oral examination of an applicant. Mere
written exam never proves the efficiency of the applicant for the job.
His communication skill, expressions, presentation, body language
characteristics are well observed in the interview process. So
interview is the most important stage of selection process. Though
it is considered more subjective, it is an effective process for the
selection of the applicant for the job.
5.2.2 OBJECTIVES OF AN INTERVIEW
To know and understand the applicant personally.
To chose the right person for right job.
To fulfill the position vacant of the organization with proper

formal way
To increase the human resource asset for the company
To know the additional information about the candidate.
To promote an additional employee.
To have better conversation and

communication skill of an applicant.
To check out the applicants abilities and capabilities duly

mentioned by him in his application.
5.3
TYPES OF INTERVIEW
understand
the
Following are various types of interview:

1.
In depth interview
This is some sort of unstructured interview which is taken to

understand the applicant well. His talent is understood by this kind
of interview. He is given freedom to talk and express himself. This
61
interview helps in understanding various traits of the personality of

the applicant.
2.
Stress interview
Handling job and service industry is not an easy job. The

candidate has to be tested with his personality and balanced
behavior. There may be situation where he may lose his balance
and create conflict around. To know how he will react during
unexpected situations this kind interview is taken.
The candidate is put into the pressure by this or that way and
observed carefully how he reacts. This interview is good for the
person to be appointed at post of human relation officer or
responsible position.
3.
Formal Interview
A Formal interview is an interview which is conducted as per

the rules, convention, or practice. For this interview everything is
well prepared and carried according to the rules set. No informality
is encouraged. Most of the interview is of this kind only.
4.
Informal Interview
Informal interviews are interviews which are conducted

without any formal notice and specific aim or contention. This type
of interview is taken for the sake of discussion being into the group
or informal atmosphere. It is more unplanned and has no formal
rules or conventions to follow.
5.
Panel interview
A Panel is group of people who come together to conduct an

interview. Generally panel members are experts in their fields and
are in a position to evaluate generally consists of 5 to 10 people. It
is good kind of interview to select the candidate for right place. It is
because the marks and appraisal is done by all the panel members.
It is not subjective. Group decision or consensus is considered for
selection.
6.
Group interview:
This is a technique of interviewing people in a group with

purpose to catch their attention to some particular topic or issue. It
62
help the participate to interact freely and talk openly with their
views. It is unstructured in nature.
7.
Exit interview
This interview is taken when an employee plans to leave the

organization. The main purpose behind such an interview is to
understand he wants to leaves the organization. It helps
management to understand the reason behind such a decision of
an employee. It helps in future correction if required in the HR
policies.
8.
Video conference
This is a new method of interviewing candidates through use

of satellite communication. It is good when the executives are not at
one place. But from the home access they can communicate with
each other.
CHECK YOUR PROGRESS
1.
What is an interview and why it is necessary?
2.
What is the difference between Group and Panel interview?
3.
Bring out difference between formal and informal interview.
4.
Define the following terns :
5.4
a.
Stress interview
b.
Exit Interview
c.
Video conference
d.
Group interview
e.
Panel interview
GUIDELINES FOR AN EFFECTIVE INTERVIEW
Following points should be considered before taking an interview:
The list of the candidates should be prepared and they

should be intimated with the time and related information of
an interview.
The arrangement should be done at the venue of interview.
63
The experts or external interviewer should be intimated for

their approval.
The interview process should be planned accordingly.
The order of interviewees should be made if subjects differ.
Interview should be taken with time management.
Prepare close ended or open ended questions accordingly.
Allow sufficient time to the interviewee to answer.
Create healthy environment for the interviewee
Dont irritate or
interviewing him.
Personal bias should be discouraged during effective

interview sessions.
5.5
make
interviewee
feel
guilty
while
STEPS OR PROCESS OF INTERVIEW
Following are the Steps or process of interview or techniques

followed for an interview:
1.
Interviewees information :
The interviewer should collect information about the

interviewee, the area of his expertise, area of his interest, previous
experience, extracurricular activities etc. this type of information
helps the panel to judge him or her during the interview process.
The factualitys are proved accordingly. It is easy as the resume
sent by an interviewee is mentioned with this all the information
already. Sometimes before an interview the application blank form
is taken filled one more time.
2.
Deciding objectives :
The interviewer should know the objectives of interview. The

position of an appointment. The requirement of the organization
should be considered in this stage. The appointing panel or the
management should be clear with their recruitment objectives. It
helps them to plan out next process or step easily.
64
3.
Adjusting with an interviewee :
In order to make the interviewee interact freely in the

interview he should be made comfortable. It is sure that the person
who is going to be interview must be tensed and worried. So an
attempt should be made by the management to understand him
and tackle accordingly. Even if he answered wrong, he should be
encouraged to correct it again. He should be considered and made
felt that it not an interview but just a group talk.
4.
Closing the interview :
The interviewer should not close the interview abruptly.

Some questions which indicate conclusion or summary can be
asked. The interview should have conclusion or should reach to the
point where it seems to get ended.
5.
Evaluating interviewee :
The interviewer should immediately evaluate the interviewee.

Special personality traits which were observed during the interview
should be noted separately. It is good for the reference of panel.
The discussion should be made once the interview leaves the
interview room. If number of candidates is more, comparative
statements should be made toward the final selection.
5.6
ROLE / ADVANTAGES OF INTERVIEW
Following are the advantages of Interview:

To the organization:
Claim verification :
The company can check the claims made by the candidates

in their application form. The documents can be verified accordingly
in origin. It helps to ensure the relevancy of an applicant for the job.
Additional information :
The organization can get additional information about the

candidate. His family background, history of job experience and so
many things felt relevant to discuss. In in-depth interview most of
the information is collected by the interviewee himself.
65
Suitability :
Interview helps the interview to understand the suitability of

the candidate for the job. His attitude toward job is assessed. His
job relevancy is checked out. The most suitable candidate thus can
be chosen on the ground of successful interview.
Selection :
Mere recruitment does not provide guarantee for the

selection of an applicant. Successful interview enables the
management to appoint right person for the right job. So interview
proves to be an important in this case.
To the candidates
Chance to express oneself :
The candidates get an opportunity to present himself with his

skills to the interviewers. It is an opportunity to show his
communication skills, talents, knowledge, extra attributes etc.
Placement opportunity :
Appearing for the interview provides job opportunity to the

candidates. He can be sure of job after the successful interview.
Even though he is not selected for said the post, management can
try to put him or her to some positions available.
Understand job specification
After attending interview the candidate comes to know about

the actual specifications. He
learns many things for his next
attempts. He comes to know the nature of questions asked, the
attitude of interviewers toward asking questions etc. it orients him or
her for the next interviews.
Confidence development
Candidates develop confident after attending the interview.

These would help in presenting himself in a better manner in future.
The experience of interview makes him comfortable enough to
develop good level of confidence.
66
CHECK YOUR PROGRESS

1.
Being an interviewer which points you would keep in mind for

carrying interview process?
2.
Explain the interview techniques in brief.
3.
How an interview is useful to the company as well as an

interviewee?
5.7
GUIDELINES FOR INTERVIEWEE
He should prepare for an interview well in advanced.
Good preparation should be done with the subject of an

interview or post to be appointed for.
Dressing should be formal and neat.
The approach should be positive toward the response of the

interviews
He should keep calm during the stress interview and show

his balance behavior.
Should listen carefully what the interviewers say and then

answer accordingly.
The answers should be to the point and not too descriptive

unless asked for.
Should keep
confidence.
Body language should be appropriate and not pretending or

dull.
eye
contact
with
the
interviewer
with
5.10 LIMITATIONS OF AN INTERVIEW

1.
Personal bias :
Interview method is more subjective in nature. There are

more chances of personal bias. The interview may take advantage
of his interpersonal relationship with any candidate approached for
the interview. At last it is very difficult to control. By wrong means
interview can be set accordingly.
67
2.
Limited scope to understand :
A few minutes interview can never guarantee the

effectiveness of an interviewee. It is very difficult to understand
human behavior. So in this method mere questioning to the
interviewee may give an idea to the interviewer regarding him. But
actually interview only cannot ensure the appointment of good
personnel.
3.
Appointment of experts :
Especially in panel interview, it is very difficult to take

appointments of all the experts or panel member according to the
requirement of interviewing committee. The time availability of all
these members should be seen and accordingly interview day, date
and time has be decided. So it seems to be difficult somewhere.
4.
Expensive :
Interview method is more expensive. The cost incurs for the

arrangement and remuneration of all the external experts or panel
members. It is feature with quite a high cost.
5.
Different opinion :
Sometimes difference in the opinion of panel member or

selecting committee may be issue. As an interviewee is observed
and interviewed by all the members, different impressions can be
created by person to person. So consensus may be a matter of
good discussion at last.
CHECK YOUR PROGRESS
1.
What care should be taken by you before facing an

interview?
2.
What are the disadvantages of an interview?
5.9
SUMMARY
An Interview is an oral examination. Several methods can be

applied for taking interviews the main methods are: Focused
directed interview, In-depth interview, Informal Interview, Formal
Interview, Panel interview, Group interview, Exit interview, Stress
interview, Video conferencing etc.
68
The process of interview includes the points like: Information

about the interviewee, deciding the objectives of interview,
adjusting with an interviewee, closing the interview, evaluating
interviewee etc.
Interview plays an important role in the selection process.
The points explaining the role of interview are divided in two
groups:
1.
Advantages to the organization are: Claim verification, to get

the Additional information about the candidate, to understand
the suitability of the candidate, to appoint right person for the
right job,
2.
Advantages to the candidates are: getting an opportunity to

present himself with his skills, provides job opportunity to the
candidates, the candidate comes to know about the actual
specifications, candidates develop confident after attending
the interview.
There are some limitations of Interview such as: There are

more chances of personal bias, it is very difficult to understand
human behavior in a few minutes, it is very difficult to take
appointments of all the experts or panel member, Interview method
is more expensive. Sometimes difference in the opinion of panel
member or selecting committee may be issue.
5.10 QUESTIONS
What is interview? Explain objectives of it
Explain various types of interview in brief
What guidelines should be followed by interview as well as

by an interviewee before interviewee?
What are the techniques or stages followed in the interview

process?
Explain significance of interview in detail
What are the limitations or disadvantages of an interview?
69
6
INDUCTION
CONTENTS :
6.0
Objectives
6.1
Introduction
6.2
Meaning and Definition
6.2.2 Objectives of Induction
6.3
Type of Induction
6.4
Phases of Induction Programme
6.5
The Stages or Procedure of Induction Programme
6.6
Importance of Induction
6.7
Summary
6.8
Questions
7.0
OBJECTIVES
After studying the unit the student will be able:
To understand the term Induction.
To know the objectives of induction
To learn the types of induction
To understand the phases and stages of induction

programme
To study the importance of induction.
6.1
INTRODUCTION
Induction is the important part of HR management and

Development because after the appointments, it is the prime duty of
an organization to make their newly employees acquainted with
work place and environment. It is but obvious that they are curious
as well as nervous initially. To reduce their anxiety and tension,
induction training should be given to each and every newly
70
appointed entrant. It makes them comfortable at work place and

they get adapted to the work accordingly. So in this unit we shall
study about induction and related issues of it.
6.2
MEANING AND DEFINITION

Every organization has a recruitments policy by which many
people are appointed time to time. These newly appointed
employees are new to the job place and for them everything is
strange. The environment, people, work system is new for them.
They may feel nervous or stressed due to this all. So it is very
essential to introduce them with the organization, its mission, vision,
culture, system etc. every organization has to provide training to
their new entrants.
It is known as induction. It is the next step after selection and
placement. It helps newly joined employees to adjust him or her to
the work in the organization and to make him or her feel at home
with his co-workers. So in easy words, we can say that introducing
new entrants with the organization and its people is induction.
It is must for the organizational as well as individual point of
view. Induction is welcoming a new employee to the organization.
In other words, it is a well orchestrated event to socialize the new
entrant with the people & the work environment in a particular
organization.
According to Michael Armstrong:
Induction is the process of receiving & welcoming an
employee when he first joins a company & giving him basic
information he needs to settle down quickly & happily & start
work.
6.2.2 OBJECTIVES OF INDUCTION :
To help new employees not to feel strange being a part of

the organization after appointment.
To make employees familiar with the people, work culture,

duties and responsibilities to be performed.
71
To make them enable to adapt the new environment and feel

stress free.
To reduce exploitation by the unscrupulous co workers.
To make him feel confident at eh work place and work

without anxiety and tension
6.3
TYPE OF INDUCTION
Following are the types of Induction:

A)
Informal induction :
In his type of induction newly appointed employees are

introduced with the company and activities carries in it. They are
made familiarize with the environment they are expected to work. It
is informal because no planning is made as such but in friendly
manner it is provided to the employees.
B)
Formal induction :
In this induction a lengthy process is followed according to

planning. The role of HR and line manager is very important here.
CHECK YOUR PROGRESS
1.
What are the objectives of Induction?
2.
Define the following terms:
6.4
a.
Induction
b.
Informal Induction
c.
Formal Induction
PHASES OF INDUCTION PROGRAMME
Induction is not an immediate activity but it is a process. Its stages

are :
1.
General Induction
2.
Specific Induction
3.
Follow up Induction
72
1.
General Induction
This first phase of induction is considered by the HR

department. Here the new employees are made aware about the
mission, philosophy and vision of the organization. The very
purpose of the organization is made clear while introduction them
with organization. The new employees is also briefed about his
service condition, pay & perks, promotion procedure, personnel
policies & grievance handling mechanisms practiced in the
organization. This type of induction is given accordingly. No time is
fixed for it. It may be given for a week or for many weeks.
2.
Specific Induction
This induction is given by the new employees supervisor or

boss. The focus is on the overall exposition of the new employee of
the new employee to his job. the employee is introduced to the job,
shown place of work & around the premises, introduced to the job.
He is introduced to his colleagues & informed about the procedure
of work, rules and conventions to be followed etc. This helps the
new employee adjust with his work environment. It also improves
the relationship between superior and subordinates.
3.
Follow up Induction
This type of induction is carried to know to know whether the

new entrant is capable to carry his duties or not or if he understood
the organizational related issues. This induction is given by the
employees supervisor or a qualified specialist on industrialist
psychology. It is more psychological in nature and concluded with
the effectiveness of induction training provided already.
6.5
THE STAGES OR PROCEDURE OF INDUCTION

PROGRAMME
The stages or procedure followed while carrying induction

programme are:
1.
Welcoming new entrants :
The new employees need to be welcomed by the

organization. It makes them well confident and starts feeling that
they are being considered as a part of the organization. It creates a
73
sense of belongingness among them. From the day of their joining,

they should be treated with care.
2.
Determining the information :
In this stage it should be considered what the new entrants

need to know. What exactly they are interested to know. Of course
the basic information should be provided to them. It is also not
necessary that everything should be informed at a time or load their
minds with the information. They should be given time to adapt
themselves with the organizational environment.
3.
Method of providing information :
At his stage, decision should be taken regarding how to

provide the information to the employees. Most of the time through
power point presentations is used in the classroom to train the new
employees. But until otherwise employees are physically making
acquainted with the organization, it will difficult to get mixed with
everyone.
4.
Right Instructor :
It is expected that the induction training should be provided

by the experienced staff or most of the time superior. It is very
important because the mind of the new employee is full off
questions and doubts. So the instructor should be a man of
knowledge and motivated himself to help the new entrants come
out of anxiety.
5.
Evaluation of the induction :
It is the last step of induction programme where attempts are

made to understand to what extent the induction training has been
useful to the employees. There are many methods of evaluating the
effectiveness of induction programme. It helps HR department to
bring new ideas in the area of induction training.
6.6
IMPORTANCE OF INDUCTION
Easy entry :
Due to the induction training, newly appointed employees

feel happy on the introduction with existing employees and the work
74
environment. So induction helps them to get oriented with the

everything within the organization.
High morale :
Being made introduced with the organization, newly

appointed employees feel highly motivated and their moral gets
boosted. They fell satisfied doing work at right place and being
trained formally, they get adapted the organizational environment
easily.
Role clarity :
Duplication work is avoided here by ensuring newly

appointed employees what they are expected to do. They are made
clearly understood with the work assigned and overcome with
ambiguity.
Satisfaction of the job :
Today most of the job skipping or turnover is observed

because new entrants are not happy with job or they are not
provided with proper training. If the induction is properly provided
and they are introduced well with the organization, they feel
contented and do the job at their best.
Less absenteeism and turnover :
Most of the time an employee remains absent if he is not

happy with the work place or do not many things at the work place.
So if they are provided proper introduction, they do not remain
absent and also do not leave an organization. But stay connected
for long.
Goodwill :
Companies with good image in the market never

compromise with any problem. They provide induction training to
their entire entrant considering them an asset of the organization. It
increases their goodwill or brand in the market.
75
CHECK YOUR PROGRESS

1.
Induction is not an immediate activity but it is a process,
Discuss.
2.
Enlist the stages of Induction Programme.
3.
Explain the importance of Induction.
4.
What is the significance of induction training?
6.7
SUMMARY
Induction means giving brief introduction about the

organisation in which the newly selected employee is going to work
for a long period.
Informal Induction and Formal Induction are the main types
of Induction. Induction is a procedure. The main stages in this
procedure are: Welcoming new entrants, Determining the
information, Deciding the Method of providing information, Selecting
a Right Instructor, Evaluating the induction programme.
Induction is important for newly appointed employees as it
helps them to get oriented with everything within the organization,
Being made introduced with the organization, newly appointed
employees feel highly motivated and their moral gets boosted,
Duplication work is avoided here by ensuring newly appointed
employees what they are expected to do, Employees feel contented
and do the job at their best, they do not remain absent and also do
not leave an organization, providing induction training to their entire
entrant considering them an asset of the organization increases the
goodwill or brand in the market.
6.8
QUESTIONS
1.
What is induction training? What are the objectives of such

training?
2.
What are the stages or phases of carrying induction?
3.
What are the various phases of induction?
4.
Explain the importance and significance of induction.
76
7
TRAINING AND DEVELOPMENT
PART I
CONTENTS :
7.0
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
7.11
7.0
Objectives
Introduction to Training
Distinguish Between Development and Training
Training Needs
Principles of Training
Steps in Training Program
Training Methods
Training Evaluation
Why Training Fails?
How to Make Training Effective?
Summary
Questions
OBJECTIVES
To provide an overview of what is Training.
To distinguish between the concept of Training and

development.
To assess the need for training in an organization.
to highlight the principles of training
To outline the steps in training program.
To explain the various methods of training.
7.1
INTRODUCTION TO TRAINING
After an employee is selected for an organization and

inducted, he needs to know his role and how can he perform his
duties. Organization arranges training for the new recruits.
77
Training can be defined as follows :

"Training is a short- term process utilizing a systematic and
organized procedure by which non-managerial persons learn
technical knowledge and skill."
- by Steinmcz
"Training is the art of increasing the knowledge and skill of
an employee for doing a particular job."
- by Tripathy
"Training is a learning process which seeks a relatively
permanent change in behaviour that occurs as a result of
experience."
- by S.P. Robbins
" Training involves changing of skills, knowledge, attitude, or
social behaviour ."
- by David de Cenzo and S.P. Robbins
7.2
DISTINGUISH BETWEEN DEVELOPMENT AND

TRAINING
Development refers to those learning opportunities designed to help

employees grow.
Development is defined as :
Development is an inclusive process with which both
managers and individual employees are involved. It offers
opportunities to learn skills but also provide an environment
designed to discovering and cultivating basic attitudes and
capabilities and facilitating continuing personal growth."
- by Yoder
Distinction between Training and Development
Training
Development
Meaning; Training refers to the Development
refers
to
the
78
process of imparting specific learning opportunities learning

skills
opportunities
Nature : It is skill oriented.
It is knowledge oriented.
Need:It is required to perform a Efforts towards development

depend on personal drive and
particular task efficiently.
ambition.
Positions: It is basically required It is required for personnel at
at lower positions.
managerial and higher positions.
Time period: It is a short term It is a
process.
process.
7.3
continuous
learning
TRAINING NEEDS
Training basically helps to bridge the gap between lack of

skill and ability to acquiring new skill and ability to enable the
weakness to perform the tasks.
Need for training :
(1)
Constant change in technology requires the workers to learn

and acquire new skills.
(2)
Increasing competition constantly puts pressure on the

employees to upgrade their abilities.
(3)
There is an increasing need to conserve resources and

minimise wastage. Training helps the workers to learn new
ways of performing a task which is cost effective.
(4)
Growing expansion and growth in an organisation constantly

requires training to be imparted to the workers.
(5)
For personal growth and to acquire skills.
(6)
To improve quantity and quality of products.
(7)
To minimise accidents and improve health.
79
7.4
PRINCIPLES OF TRAINING
Certain general principles have to be taken into account,

when organising a training program.
(a)
Determine the exact need and objective of training.
(b)
Training will be more effective if the trainee knows that the

training will lead to better performance and answer his
questions
(c)
Learning becomes more effective if there is reinforcement in

the form research and punishment.
(d)
The trainee should be provided with feedback on the

progress he is making in utilising the training e has received.
(e)
The larger the reward expected after the completion of the

training, the greater will be the reinforcement of the new
behaviour.
(f)
The techniques and process of a training programme should

be related directly to the needs and objectives of an
organisation.
(g)
The objectives and scope of a training plan should be

defined before its development is begun in order to provide a
basis for common agreement and co-operative action.
(h)
To be effective, training must use the tested principles of

learning.
(i)
Training should be conducted in the actual job environment

to the maximum possible extent.
(j)
Training is properly the responsibility of anyone in the

management who wants to attain a particular objective.
(k)
Training should be a continuous process.
CHECK YOUR PROGRESS

1.
Define the terms

a. Training
80
b. Development
2.
Which are the general principles a training program?
3.
Development is distinct from Training, explain.
7.5
STEPS IN TRAINING PROGRAM
Following are the main steps in the Training Program.

(1)
Need Assessment.
(2)
Designing the training program.
(3)
Select a method of training.
(4)
Implement the training program.
(5)
Evaluation of the training program.
(6)
Obtaining feed-back.
1.
Need Assessment :
Need Assessment find a gap between present needs and

future needs. Need assessment will generally occur at two levels.
(a)
Group level
(b)
Individual level
The focus of need assessment must be on deficiency in the

existing skills and efficiency level of the employees and the required
skill and level of performance based on new technology demand,
job transfers. Group training need arises when there is a change in
the organization's strategy for e.g. when the organization enters a
new line of business or introduces new technology, the entire
department or entire staff may be required to undergo training.
Individual training; Individual may require training if their
performance falls below the level of expectation or when the
employee is transferred to another department or job making it
necessary for him to acquire new skills.
81
Proper need assessment will help the organization to

develop an appropriate training program which may be tailor-made
for the needs of the organization.
2.
Designing the training program :
The training program must be well designed to suit the

needs of the organization. It must address important issues as
follows.
(a)
Who will participate in the training program? The

organization must invite applications from those desiring to
undergo training or the Human Resource Department can
identify potential candidates and nominate them for training.
(b)
Who will impart the training? The organization must carefully

choose the trainees who are themselves well versed with the
training methods and skills to be imparted from within the
organization including supervisors, managers, co-workers.
The company may hire outsiders, who are experts in their
field and invite them to impart the training. Large
organisations generally maintain their own training
department whose staff conduct the programmes.
3.
Select the training method :
There are large numbers of training methods used to train

employees. Mainly on the job and off the job methods are used . On
the job methods include orientation training, apprentice training,
internships, job rotation. This method is used at the workplace while
the employee is actually working on the job. Off the job methods
are used among from the job and include vestibule schools,
lectures, seminars, workshops, conferences, case studies,
stimulation, role play etc.
4.
Implement the training programme :
Once the training method is decided, the company must

successfully implement the training program.
Prepare a schedule and duly inform the trainees and
trainers. Decide on the level of training whether it should be basic
level to teach fundamental knowledge. Next level is skill
development or acquiring the ability to perform a particular task.
82
The highest level is increasing operational proficiency. This involves

acquiring additional experience and improves skills which are
already acquired. The company must also decide the duration of
the training program depending on the need and completing the
job.
The following aspects are important in implementing a
training program.
5.
(a)
Make a training schedule.
(b)
Decide on the duration.
(c)
Select a suitable location.
(d)
Conduct the program.
(e)
Keep a check on the progress.
Evaluation of the training program :
Evaluation helps to see if the program has been successful

and whether the objective has been achieved. Evaluation will bring
to light if there is any improvement in the employee's performance
due to the training provided and whether the organization has
benefited after the training program in terms of cost-effectiveness
and better qualified personnel. The process of evaluation has to be
continuous to get complete information of the short comings and
take corrective action.
6.
Obtaining feed-back :
Finally to conclude the training program the company can

obtain a feedback from the trainers and trainees. As they can
inform the organization about the benefits they gained through
training, they can also point out the short comings of training
program. In terms of content methods adopted and commitment of
the organization in imparting the training. This feedback can be
documented in a report which can be successfully used for future
reference. The feedback will help to overcome the difficulty and
rectify the mistakes committed.
83
7.6
TRAINING METHODS
These are basically two methods of training.

(a)
On the job training.
(b)
Off the job training.
(a)
On the job training :
On the job training takes place within the organization itself.

The trainees earn and learn in this method. This is the most widely
used method of training.
Following are the Sub methods of On the job training method :
(i)
Orientation training :
This is generally carried out for new employees who just join
the company. This training orients the employees to the rules and
regulations of the company, the role they have to play, their duties
and responsibilities.
(ii)
Apprentice training :
This method involves training under the watchful eye of a

master mechanic or craftsman in the actual work environment.
Employees are coached and instructed by skilled co-workers.
(iii)
Job rotation :
Job rotation is a planned movement of men from one job to

another job within the organisation in order to develop their skills
and broaden their understanding and experience. It is horizontal
loading of the job. Rotation ensures that several people are
prepared to assume executive responsibilities in almost every
position in the hierarchy.
(iv)
Coaching :
Under this method a superior coaches his subordinates to

work either as his substitute or as his replacement. The superior
84
offers consultation to the subordinates or gives him independent

work assignments with guidance whenever required.
Merits of on the job training :
(a)
Trainees learn on the actual equipment in use and in the

actual environment.
(b)
It is highly economical as it does not require special training

course or hiring trainers.
(c)
The employee can earn while he learns.
(d)
The employee can understand the rules, regulations and

procedures of the company while being trained.
(e)
It helps to build a friendly atmosphere and makes the

employee comfortable in the workplace.
Demerits of on the job training :
(1)
This method of training does not expose the employees to

experts and specialists.
(2)
This method is highly disorganised and haphazard and does

not fix the responsibility on anyone particular person.
(3)
The new employees get easily distracted by noisy shop and

find it difficult to concentrate.
(4)
New employee may not be able to fully develop his skills and
abilities.
(5)
The experienced employees may lack the knowledge, skill,

expertise or inclination to train the new recruits.
(6)
The training program itself may be poorly organised.
(b)
Off the job methods :
Off the job methods are used when employees are sent for
training away from the work.
Following are the main methods of off the job methods of
training :
85
(i)
Vestibule training :
This is class room training. The equipments used are similar

to the ones used at the actual work place. This helps the trainee to
learn the skill and concentrate on improving his ability rather than
on performing task.
(ii)
Lecture method :
Lecture is a verbal presentation of information by an

instructor who has in-depth knowledge about the subject. Generally
a lecturer will address a large group of persons at a time making it
an economical method of imparting training.
(iii)
Role playing :
Role playing means having members of a group act out a

situation involving human relation arising in a supervisory contract.
Members of the group assume different roles thrashing out the
problem. Role may help to develop better understanding among
individuals and foster healthy inter-personal relationship.
(iv)
Seminars, workshops, conferences :
Periodically employees are encouraged to attend seminars,

practical workshops and conferences where a number of experts
discuss the issues relevant to the job, offer remedies and
suggestions for improvement. It is a group activity and promotes
healthy discussion on matters pertaining to cost control, grievance
handing, merit rating etc.
(v)
Case Study :
This method uses an actual case occurred in business. It is a

written description of an actual situation in business which provokes
the reader. The readers are encouraged to discuss the case and
offer their conclusions and suggestions. The challenge is to locate
the central issue from the mass of details and arrive at a course of
action.
(vi)
Simulation :
The on-the job situation is duplicated with the help of

equipments and machines which are identical with those in use at
place of week.
86
(vii)
Programmed institution :
Programmed institution involves training with the help of a

computer or teaching machine, the trainer is eliminated. The
information is provided to the trainee in blocks either in a book
forms through a computer CD The program involves presenting
questions, facts or problems to the trainee to utilise the information
given. The trainee gets immediate feedback on the basis of the
accuracy of his answers.
Merits of on the job training methods
(1)
The employee can concentrate on acquiring skill knowledge.
(2)
Services of experts and specialists can be used.
(3)
It is systematically organised having a specific period of time.
(4)
The new employee feels confident after acquiring the

training.
Demerits of on the job training methods.
(a)
It is an expensive method of training.
(b)
It results in loss of working days as the employee has to

remain absent from work during the training period.
(c)
The employee cannot earn while he learns.
CHECK YOUR PROGRESS

1.
Enlist the steps in training programme.
2.
Fill in the blanks:

a. ----------------------finds a gap between present needs and
future needs.
b. The trainees earn and learn in ------------------------ method.
c. ---------------------- training orients the employees to the
rules and regulations of the company.
d. In ---------------------------training Employees are coached
and instructed by skilled co-workers.
87
e. -------------------is a planned movement of men from one

job to another job within the organization.
f. In ---------------------------- a superior coaches his
subordinates to work either as his substitute or as his
replacement.
g. ---------------------------- methods are used when employees
are sent for training away from the work.
h. -------------------- is a verbal presentation of information by
an instructor having in-depth knowledge about the
subject.
i. In -------------------------Members of the group assume
different roles thrashing out the problem.
j. The equipments used are similar to the ones used at the
actual work place in--------------------------training.
k. ----------------- a written description of an actual situation in
business which provokes the reader.
7.7
Training Evaluation
Training is very beneficial to the company and the

employers. Evaluation helps to understand if workers can perform
their jobs.
Benefits to the Company:
(i)
Knowledgeable employees.
(ii)
Reduced turnover of employees.
(iii)
Highly motivated workforce.
(iv)
Reduction in absenteeism, accidents and dissatisfaction.
(v)
Scope for promotions from within the organisation.
(vi)
Company can get a feedback by observing the employees if

the training has resulted in better performance.
(vii)
Lesser wastage and better quality and quantity of work can

be seen.
88
Benefits of training to the employees:
(i)
The employees feel more confident and motivated.
(ii)
They can take up additional challenges after acquiring new

skills.
(iii)
Performance will improve leading to better rewards.
Training Evaluation can take place in the following manner.

(a)
Reaction :
This measures whether the employees appreciate the

training and the facilities. Questionnaire is used to find out did they
like the programme and did they think it is worthwhile.
(b)
Learning :
This measures whether the employees learnt the principles,

skills and facts that the trainers imparted in the training process. It
will help to understand if the trainees know more than they did
before undergoing training.
(c)
Behaviour :
This measures what employees do on the job after the

training. Performance appraisal can be carried out to understand
the bevaourial impact.
(d)
Result :
This is the outcome of the training program and the impact

the training has on productivity, efficiency, quality customer service,
or another dimensions. This can be measured by sales figures,
growth in production and other measurements of performance.
7.8
WHY TRAINING FAILS?
(a)
The methods adopted for the training may not be

appropriate.
89
(b)
Management may not give due importance and appropriate

attention to training.
(c)
The rewards received after training may not be equal to the

effort put in.
(d)
Lack of interest on the part of the trainees to acquire new

skills and techniques.
(e)
Skills acquired after training may be more theoretical

oriented rather than practical.
7.9
HOW TO MAKE TRAINING EFFECTIVE?
(a)
Management must offer full support and commitment.
(b)
Proper trainers and trainees must be selected.
(c)
Ensure that there is proper linkage among organisational

and individual training needs.
(d)
Attempt to find out if the trainee has intelligence, maturity

and motivation to successfully complete the training
programme.
(e)
Make learning one of the fundamental values of the

company.
(f)
Ensure that a comprehensive and systematic approach to

training exists and training and retraining are done at all
levels on a continuous and on-going basis.
7.10 SUMMARY
Training : Training is the art of increasing the knowledge and skill
of an employee in the organisation.
Training and Development : Training is a short term process to
impart specific skill at lower positions. Development is a long term
continuous process to help employees grow.
It is used for managerial personnel at higher level.
Training needs :
90
To adapt to changing needs
To acquire new skills
To face competition by upgrading oneself
To learn new ways of doing a task
To reduce wastage, accidents and time consumed.
To improve quality and quantity of production
To improve health and safety.
Methods of training :
(1) On the job methods
(2) Off the job methods
Training Evaluation :
Reaction
Learning
Behaviour
Result
7.11 QUESTIONS
1.
Distinguish between training and development.
2.
Explain the benefits of training.
3.
Explain the methods of training.
4.
Outline the steps involved in designing a training program.
5.
Explain the following terms.

7.9.1 Training
7.9.2 Development
7.9.3 Training Evaluation.
7.9.4 Need for trining.
91
6.
Outline the steps to improve effectiveness of training.
7.
Why training fails?
92
8
TRAINING AND DEVELOPMENTPART II
MANAGERIAL DEVELOPMENT
CONTENTS :
8.0
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
8.13
8.14
Objectives
Introduction
Meaning of Managerial Development
8.2.2 Importance of Management Development
Characteristics of Manager
Skills of Manager
Purpose and Objects of Managers
Components of Management Development Program
Basic Requirements for the Success Of The Program
On the Job Training and Off the Job Training
Organizational Development
Goals of Organization Development
Characteristics of Organizational Development
Process of Organizational Development
Summary
Questions
8.0
OBJECTIVES
After studying the unit the students will able
To provide information of what is managerial development
To explain the methods of managerial development
To see the purpose of managerial development
To understand the characteristics

Organizational Development.
and
process
of
93
8.1
INTRODUCTION
Managers who will be promoted are the ones who not only
manage efficiently but also lead their teams effectively. The ability
to do this during tough times is the acid test. Developing leadership
skills is crucial.
Sometimes managers are promoted into
managerial roles because they exhibited strong performance as
technicians. The shift from technical to strategic can be a difficult
one, however, and many new managers flounder. Too often
organizations provide no formal development program for its new
managersand no "refresher" training for existing managers or
high-potential employees.
An organization's managers are its direct link to
employeesthey have a strong influential role and impact on
performance and morale. The business environment is changing at
an ever-quickening pace requiring ongoing education. Managerial
work has become increasingly fast-paced, less structured and more
reliant on strong interpersonal and leadership skills than ever
before. In addition, with a shrinking labor pool, organizations need
to take steps to identify strong leaders and provide the appropriate
development opportunities for them. Growing talent from within is
becoming an increasingly prevalent staffing alternative.
8.2
MEANING OF MANAGERIAL DEVELOPMENT

The success of the organization depends on the caliber and
performance of the managers, their skill and ability.
Definition of Managerial Development
(a)
"Management Development is an attempt of improving an

individual's managerial effectiveness through a planned and
deliberate process of learning"
- by C.B. Mamoria and S.V. Gankar
(b)
" The concept of Management development is based on the

five Ss theory which must be imbibed at each level at all
times. These five Ss are System, Speed, Security, Service
and Success. "
94
- by L.C. Goya
(c)
"Development is an inclusive process with which both

managers and individual employees are involved. It offers
opportunities to learn skills, but also provide an environment
designed to discovering and cultivating basic attitudes and
capabilities and facilitating continuing personal growth"
- by Yoder
8.2.2 IMPORTANCE OF MANAGEMENT DEVELOPMENT
Trained Managers will be an asset to the organization
With dynamic market conditions managers with high

qualification and caliber are required.
There is a constant need to conserve resources, develop

new products; managers play an active role in this.
Constant technical up gradation is required.
8.3
CHARACTERISTICS OF MANAGER
He is a decision maker
He is a visualiser and forecaster
He is a resource provider
He is flexible, realistic and sensitive
He is a policy maker and goal setter
He is a motivator and organiser
He is capable of solving problems
He is the goal achiever
He moves from job to job
He is the dynamic life giving element in a business
He is a thinker
95
He is the co-ordinator and leader
Managers include the president, vice-president, the

managing director, works manger, plant superintendent, the
treasurer, officer managers, engineers and directors.
8.4
SKILLS OF MANAGER
A manager basically needs four skills.

(a)
Technical skill
(b)
Human skill
(c)
Conceptual skill
(d)
Design skill
(a)
Technical skill: It includes
(1)
Knowledge about job, procedures, methods, skill to perform

a task.
(2)
It involves working with tools, equipments, techniques.
(3)
It is mainly used by operating managers to perform their

jobs.
(b)
Human skill : It includes
(1)
It involves ability to deal with people and develop team spirit.
(2)
It requires excellent communication and inter-personal skill.
(3)
It involves building a co-operative group and working

effectively with others.
(4)
It involves the qualities of leadership and motivation.
(5)
It helps in creating an environment of making people secure.
(6)
It requires tact, patience.
(c)
Conceptual skill. It involves.
96
(1)
It involves viewing the organization as a whole and evaluate

the relationship. that exists between various parts or
functions of a business.
(2)
It involves understanding relationship between elements.
(3)
It helps to see and analyse the problems from all angles.
(4)
It is concerned with realms of ideas and creativity.
(d)
Design skill : It involves
(1)
Solving the problem in such a way that it will benefit the

entire organization.
(2)
It encourages the manager to be a problem solver than a

problem watcher.
(3)
It encourages the managers to offer suggestions and

innovative ideas.
8.5
PURPOSE AND OBJECTS OF MANAGERS
Purpose and objects of managers is to bring about a change.

The change can result in
(a)
Knowledge change
(b)
Attitude change
(c)
Behaviour change
(d)
Performance change
(e)
Improvement in technical performance
(f)
Stimulate junior executives to do better work
(g
Improve inter-departmental co-operation
(h)
facilitate sound " promotion from within policies and practices
(i)
To develop a sense of co-operation among employees
97
(j)
To create an understanding of the methods and problems of

management
(k)
Improvement of the organizational structure
(l)
To help fast and steady growth of the organization
8.6
COMPONENTS OF MANAGEMENT
DEVELOPMENT PROGRAM
Following are the important components or steps of a

comprehensive management development program
1.
Set the organizational goals and objectives :
Set realistic and achievable goals and lay down clear cut
objectives which are quantifiable. This will help the managers to
build a framework. Objectives may be short term or long term.
2.
Ascertain Development Need :
This requires organizational planning and forecast of its

needs for present and future growth. This is based on job analyses
comprising of job description and job specification.
3.
Assess
managers:
the
strength
and
weakness
of
existing
Take an inventory of the present managerial talent available,

their strength and weakness. See what are the unique capabilities
they have in terms of their abilities, skill, knowledge and
achievement. Compare the performance with laid down standards
to judge his traits and performance. It will inform the management
of the potential obsolescence of the present executives, their
inefficiency and their own future needs.
4.
Develop long range training and development plans :
The management prepares long range training and

development plans for their executives which include the following
Annual training targets in terms of number of executives

being trained
98
Annual budgets
Specific area of training
number of executives who require training
Understand the area in which training is required.
Utilization of internal and external resources.
5.
Plan the individual Development Program :
Keeping in mind the difference in the ability, skill, knowledge,

intelligence, difference in attitude and behaviour, physical and
emotional qualities, and tailor-made programs for individual
managers can be defined.
6.
Implement the program :
Put the plan in action. Arrange for the necessary classrooms,

teaching aids, instructors, study material etc. Prepare a proper
timetable and initiate the training programs.
7.
Evaluation :
Measure the effectiveness of the training and development

program by measuring the improved performance of executives
who underwent the programme on their job. See if it has led to
reduction in grievances, and if it has improved quality, safety and
performance.
8.7
BASIC REQUIREMENTS FOR THE SUCCESS OF

THE PROGRAM
According to K. Prasad (of the Management Training

Institute of Hindustan Steel Ltd) the basic requisites for the success
of management development programmes are:
(1)
The top management should accept responsibility for getting

the policy of development executed. For this purpose, a
senior officer may be placed in charge to initiate and
implement the management development programme
(MDP).
99
(2)
MDP is essentially a line job. It takes place on the job and

involves both the man and his boss.
(3)
Every manager must accept direct responsibility for

developing managers under his control on the job and a high
priority should be given to his task.
(4)
MDP must be geared to the needs of the company and the

individual.
(5)
A policy of promotion from within is a necessary incentive for

managers to develop in an organization.
(6)
MDP starts with the selection of the right materials for

managerial rank.
(7)
There should be a realistic timetable in accordance with the

needs of the company.
Thus we can say that development programme should be

based on a definite strategy, which should outline the type,
coverage and objectives of the programme. The programme should
be prepared well in advance and should contain decisions about
instructional methods and development approach to be used and
have a provision of expertise and the necessary support system
and should be based on the policy promoting a proper use of
trained executives , their knowledge and techniques in the
improvement of the operations in an organization.
8.8
ON THE JOB TRAINING AND OFF THE JOB

TRAINING
There are basically two methods of training

(a) On the job training
(b) Off the job training
ON THE JOB TRAINING :
On the job training is carried out within the working

environment.
The various methods of on the job training include:
100
(1)
Coaching : In Coaching the superior plays the role of the
guide and instructor and tells the trainee what needs to be done. It
is easy to execute as the trainees are from within the organization.
It is inexpensive and simple method.
(2)
Job Rotation : It refers to the transfer or movement of
executives from one job to another and from one plan to another on
some planned basis for educational learning purpose. Such rotation
continues for a period of 6 months to 24 months.
The main aim of job rotation is to impart an overall
knowledge and familiarity with the different sections in the
organization. The persons do not get bored; they can learn the
overall functioning of the entire organization. However the problem
is that adjusting him to new bosses.
(3)
Assignment : This method uses understudy assignment
where a prospective employee is picked and he is put under
training under an experienced manager from whom he learns how
to solve problems and make decisions. He is generally given a
project related to his work. The trainee gets practical training. The
trainee gets highly motivated while learning on the job.
(4)
Participating in committees : In this technique the juniors
are assigned to a committee by the chief executive. They are given
real life problems and asked to give their views and make
decisions. Committees may be permanent or temporary in nature.
Committees generally make suggestions or offer solutions to a
problem.
OFF THE JOB TRAINING METHODS :
In off the job training methods the trainees are sent out of the
working environment.
(i)
Case study : A case is a written description of an actual
situation in business which provokes the reader to think about
solution to the problems discussed in the case. This gives an
excellent opportunity to the trainees to give their opinions and
suggestions.
(ii)
Incident method : This method was developed by Paul and
Faith Pigors. The central aim of this method is to stimulate self
development in a blend of understanding that is essential for
101
productive interaction. Groups meet and discuss questions on what,

when, where, how of the situation in which an incident work place
and who was present there. The group leader is then asked to
make short-term decision in the role of a person who had to cope
with the incident when it actually happened.
(iii) Role playing : Role playing involves human interactions in
imaginary situations. Various individuals are given the roles of
different managers who are required to solve a problem or to arrive
at a decision. Dialogue grows spontaneously between the members
as the role playing proceeds. After the role playing session, the
trainees are given feedback about their role playing. It helps the
trainees to see the problems from different angles.
(iv)
In-basket method : This method is designed around the
incoming mail of a manager. A variety of situations is presented in
this exercise which would usually be dealt by a manager in this
typical working day.
(v)
Sensitivity Training : This type of training involves the use
of development techniques which attempt to increase or improve
human sensitivity and awareness. It provides maximum possible
opportunity to expose their behaviour, give and receive feedback,
experiment with new behaviour and develop awareness of self and
of others. This training helps to increase awareness of own feelings
and reactions and of own impact on others.
(vi)
Lectures & Conferences : These are knowledge based
management development methods. Theories, basic concepts and
applied knowledge is communicated to the trainees. In conferences
there is a two-way communication and discussions among
participants.
CHECK YOUR PROGRESS
1.
The success of the organization depends on the caliber and

performance of the managers, their skill and ability.
2.

a.
On the job training
b.
Off the job training
c.
Case study
102
d.
Role playing
e.
Job rotation
f.
Assignment
g.
In basket method
3.
Enlist the important components of a comprehensive

management development programme.
8.9
ORGANIZATIONAL DEVELOPMENT
DEFINITION :
Organizational Development refer to long range effort to
improve on organization's problem solving capabilities and its ability
to cope with changes in its external environment with the help of
external or internal behavioural scientist consultants, or change
agents, as they are sometimes called."
- by Wendell French
" Organizational Development is a response to change,
a complex educational strategy intended to change the beliefs,
attitudes, values and structure of organizations so that they can
better adapt new technologies, markets and challenges and the
dizzying rate of change itself.''
- by Warner Burke
We can say that Organization Development is a planned
change and dynamic process which helps the organization to face
new challenges.
8.10 GOALS OF ORGANIZATION DEVELOPMENT

According to Wendell French following are some of the goals
of Organizational Development.
(a)
To develop a self-renewing viable system which can be

organized in a variety of ways, depending on the tasks that
are to be performed.
103
(b)
To increase level of trust and support among organization's

members.
(c)
To create an environment in which authority based role is

divided by authority based on knowledge and skill.
(d)
To open all types of communication, lateral, vertical and

diagonal.
(e)
To move towards high collaboration and low competition

between interdependent units.
(f)
To create an environment which will help to effectively

manage conflict.
(g)
To reach a point where decisions are made on the bases of

information.
(h)
To help the managers in setting challenges but realistic

goals for themselves.
(i)
To help the members of the group to identify with the

organizational role.
8.11 CHARACTERISTICS
DEVELOPMENT
OF
ORGANIZATIONAL
Following are the Characteristics of Organizational Development

(1)
It is an educational strategy which helps to bring about

planned change.
(2)
It is related to actual organizational problems.
(3)
Its Change agents are external consultants outside the

organization.
(4)
It is a dynamic process.
(5)
Long range change is brought about.
(6)
Its emphasis is on Intervention and action Research.
(7)
It is an ongoing process.
104
8.12 PROCESS OF ORGANIZATIONAL

DEVELOPMENT
Following are the steps in the process of Organizational
Development:
(1)
Identify the problem : The first step is to find out the

problem and diagnose it from all angles.
(2)
Plan a strategy for change : After diagnosing the problem,

the consultant plans a strategy to transform the organization
into a better place.
(3)
Intervening in the system : It means planning activities

during the course of Organizational Development programs
which help to bring about certain changes in the system.
(4)
Evaluation : It refers to evaluating the results so that

suitable action can follow up.
8.13 SUMMARY
Management Development: It is really attempt to improved
managerial performance and effectiveness.
Importance of Management Development:
One aim of Management development is to train the
managers to enable him to meet the changes in the market.
Skills required by a manager
Technical skill
Human skill
Conceptual skill
Design skill
Methods of Training:
(a) On the job training
105
(b) Off the job training

Organizational Development: It is a long range effort to improve
organization's problem solving abilities.
8.14 QUESTIONS
(1)
Explain the concepts of management development and

organizational development.
(2)
What are the various methods of training used for

management development?
(3)
Which are the skills required by a manager?
(4)
What are the basic requirements for the success of a

Management Development programme.
(5)
Explain the following concepts:

(a)
Objects of Managers.
(b)
Goals of Organizational development.
(c)
Characteristics of Organizational development.
(d)
Characteristics of a manager.
(e)
Coaching.
106
9
PERFORMANCE APPRAISAL
CONTENTS :
9.0
Objectives
9.1
Introduction
9.2
Meaning And Definition
9.3
Features of Performance Appraisal
9.4
Importance of Performance Appraisal
9.5
Objectives of Peformace Apprisal
9.6
Purpose of Performance Appraisal
9.7
Appraisal Process
9.8
Requirements of A Good Performance Appraisal System
9.9
Methods of Performance Apprisal
9.10 Contents / Components Of Appraisal
9.11 Problems / Limitation / Challenges / Pitfalls of Performance
Appraisal
9.12 Challenges of Appraisal
9.13 Summary
9.14 Questions
9.0
OBJECTIVES
After studying the following unit the students will be able to:
Understand the meaning of Performance Appraisal.
Discuss the importance of appraisal system.
Understand the scope and contents of Appraisal.
Analyse the appraisal process in practical application.
9.1
INTRODUCTION
Performance appraisal is a critical evaluation of performance

of employees at work by their superiors or others who are familiar
with the techniques of performance appraisal. It refers to all the
formal procedures used in organisations to evaluate the
personalities, contribution and potentials of employees.
107
Performance appraisal is also referred as merit rating, employee

rating and service rating.
9.2
MEANING AND DEFINITION
A Performance appraisal is a process of evaluating an

employees performance on a job in terms of is requirements.
It is a systematic evaluation of a workers performance and a
potential medium to assess for development. It is a process of
estimating or judging the value, excellence of qualities of some
person, individually and collectively. It is a part of all other staffing
processes like recruitment selection, placement and indoctrination.
Performance appraisal is a method of evaluating the behavior of
employees in the work place. It is a quantitative and qualitative
aspect. It relates to degree of achievements and goals
accomplished, tasks completed success fully by an employee.
Performance Approisal is a regular phenomenon of measuring
results and not efforts.
a)
According to Wayne Cascio, Performance appraisal is the

systematic description of an employees job relevant
strengths and weaknesses.
b)
According to Michael Crino, Performance appraisal is the

process of assessing quantitative and qualitative aspects of
an employees job performance.
9.3
FEATURES OF PERFORMANCE APPRAISAL
1)
Performance Appraisal is for describing strengths and

weaknesses of the employee related to the job.
2)
Employee performance is found and a plan of improvement

is made
3)
It is to check how well a person performs his / her job

assigned job.
4)
It is a continuous process.
5)
It is essential activity of every organization. It relates to

people, their placements and promotion, rewards and
remuneration, training and development.
108
6)
Appraisal is a method to motivate employees encourage

them to set goals and plan work.
7)
Overall performance of the organization can be improved by

performance appraisal.
9.4
IMPORTANCE OF PERFORMANCE APPRAISAL
Through Performance Appraisal, whole lot of benefits can be

achieved by the organization. Importance of performance Appraisal
can be credited to introduction of newer ideas, Research and
development, Innovations, New HR Policies, labour management
relations, increase production increase in profitability, morale and
teams building of the employees and many high profiled
achievements to the organization. Not only good capital standing
can be maintained but even stability in capital building can be
made. Goodwill of the company can be enhanced. The approach of
performance appraisal though scientific is also objective and
transparent. Administration and Accountability can be best sort by
proper appraisal planning. Performance appraisal is an important
function of every management activity which helps contribution of
companies to get measured and evaluated perfectly. Performance
appraisal solves problems of people in the organization since
people have different priorities and their priorities vary from time to
time.
Following are the Benefits or Importance of performance appraisal.
a)
Performance Feedback :
Performance appraisal provides performance feedback to
the employees. Exployees can come to know about their Job
related strengths and weakness. Such feedback enables the
employees to correct their weaknesses and improve their
strengths.
b)
Training and development :

Performance appraisal indicates the strengths and
weaknesses of an employee. This information can be fruitful
for formulating suitable training and development
programmes. Such appraisals also suggest the areas of
skills where numerous employees are not up to the mark.
109
This enables the management to adjust the training

programmes suitably for raising overall efficiency.
c)
Validation of selection process :

A proper performance appraisal determines the
validity of the various selection devices and accordingly the
company may only follow selective and suitable tests and
other selection devices to recruit employees in future.
d)
Promotion and placement :

One administrative purpose of performance appraisal
is to promote employees as per their performance. Quality of
performance serves as a base for promotion particularly
when promotions are given by merits. Performance appraisal
is useful for the selection of right person for the right type of
promotion. Performance appraisal is not useful for initial
placement but is certainly useful for subsequent placements.
e)
Compensation decisions :
Performance appraisal may also be used to
compensate the employees in terms of increased pay and
other incentives. This is more true in the case of managerial
jobs and also in the case of employees in non-unionised
organisations. The better performers are often rewarded with
merit pay.
f)
Transfers and demotions :

In an organisation, certain personnel actions such as
transfers and demotions are necessary. Such actions need
to be taken in a fair and impartial manner. Here performance
appraisal reports can be used for taking final decisions.
Performance appraisal is also useful for the demotion of an
employee due to his poor performance.
g)
Documentary evidence :
Performance appraisal reports can be used as
important documentary evidence in case of disciplinary
action taken against some ineffective employees. This is
especially true in the case of unionised organisations.
110
h)
Personnel Research :
Performance appraisal serves as a feedback in the
field of personnel research. It serves as a base for research
activities in personnel management. Various theories
regarding incentives to employees, training of employees,
selection of employees and motivation of employees
developed through such research activities.
i)
Management and labour relations :

Performance appraisal also helps to maintain good
management and labour relations. This is because
performance appraisal creates on healthy atmosphere in the
organisation. The effective employees are motivated to
perform better and the ineffective employees are
encouraged to do away with their weaknesses or limitations.
i)
Effective communication :
Appraisal interviews and reports can be very effective
means of communication to the employee and can result in
improved performance.
9.5
OBJECTIVES OF PEFORMACE APPRISAL
Performance appraisal serves the following objectives :

1)
Decisions related to promotion, salary increase, lay-offs and

transfers can be enforced with systematic performance
appraisal.
1)
Instant judgments and taking decisions related to employee

promotions in several form can be avoided if performance
appraisal is done in appropriate time schedule.
2)
Appraised programmes keep the employees motivated to

work efficiently and be conscious about their performance
through self introspection. SWOT analysis can be device by
the employees for this brighter scope of increasing their
organisationall profile and get appraised in the most
authentic manner.
3)
Employee strengths can be developed by appraisal

programme. A Well structured appraisal programme can
111
help employees to work not only on their strengths but also

on their weaknesses and shortcomings and the scope for
improvement can also increase.
4)
Strategic planning and decisions can help the organization to

maintain tactful relationship between the employee and the
employer.
5)
Appraisal Programmes can throw light on deep issues of the

employees related to psychological problems and can help
employees seek help of consultants to see their problems.
6)
Appraisal programmes review can help employees to

improve in the organization.
7)
Goals can be determined and achieved through support and

dedication if the organization practice good set of appraisal
programmes.
9.6
PURPOSE OF PERFORMANCE APPRAISAL
There are broadly two main purposes of performance

Appraisal namely
1.
Administrative purpose.
2.
Self- improvement purposes.
This can be very clearly visualized through the figure below:Purpose of Performance Appraisal
ADMINISTRATIVE PURPOSE
PURPOSE
SELFIMPROVEMENT
1) Promotion and
Placement of Employees
1) Assessing Critical Attributes

of the executives
2) Transfers and Demotion

Weaknesses of executives
2) Highlight Strengths and
3) Wage and Salary Payment

Performance of executive in
3) Evaluate and compare

contrast to other executives
112
4) Training and Manpower

development
talents
4) To identify & discover

areas, hidden skills and
and provide approtunities
5) Personnel Research
growth in the organisation
5) To assess capabilities for
6) Positive Impact on
employees
development.
6) Job rotation and career

opportunities ladder stick for
9.7
APPRAISAL PROCESS
The superior subordinate relationship depends on the

evaluation process based on human, intellectual and capabilities
assessing process. A employee is constantly assessed by his
owner. The potentialities in the emoloyee, strengths and
weaknesses their contribution for the upliftment of the organization
and employees advancements depend on the performance
appraisal process. The figure below depicts the procedure used in
performance appraisal programme.
Following chart shows the process of Performance Appraisal:
113
1.
ESTABLISHING PERFORMANCE STANDARDS :
The first step in the process of performance appraisal is the

setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms.
2.
COMMUNICATING THE STANDARDS:
Once the standards have been set it is the responsibility of the

management to communicate the standards to all the employees
of the organization. The employees should be informed and the
standards should be clearly explained to them. This will help them
to understand their roles and to know what exact expectations from
them. The standards should also be communicated to the
appraisers or the evaluators and if required, the standards can also
be modified at this stage itself according to the relevant feedback
from the employees or the evaluators.
1.
MEASURING
THE
ACTUAL
PERFORMANCE
:
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time. It
is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal
bias does not affect the outcome of the process and providing
assistance rather than interfering in an employees work.
4. COMPARING
PERFORMANCE :
THE
ACTUAL
WITH
THE
DESIRED
The actual performance is compared with the desired or the

standard performance. The comparison tells the deviations in the
performance of the employees from the standards set. The result
can show the actual performance being more than the desired
performance or, the actual performance being less than the
desired performance depicting a negative deviation in the
organizational performance. It includes recalling, evaluating and
analysis of data related to the employees performance.
114
5. DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the
employees on one-to-one basis. The focus of this discussion is on
communication and listening. The results, the problems and the
possible solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given with a
positive attitude as this can have an effect on the employees
future performance. The purpose of the meeting should be to solve
the problems faced and motivate the employees to perform better.
6. DECISION MAKING
The last step of the process is to take decisions which can be
taken either to improve the performance of the employees, take the
required corrective actions, or the related HR decisions like
rewards, promotions, demotions, transfers etc.
The Procedure of Performance Appraisal is a lengthy

process and is structured sequentially and logically. Each step is
crucial and important from employees appraisal point. The
administrative and selfimprovement purposes of appraisal can be
very easily understood through the appraisal process. If required
organizations are permitted to make some changes in the appraisal
process. Actual performance can be measured through
performance standards and by applying appraisal steps. Care is
taken to make the appraisal process more employees friendly,
challenging, purposeful and beneficial to employees.
CHECK YOUR PROGRESS
1.
Draw the chart showing Process of Self Appraisal.
2.
Enlist the points of importance of performance Appraisal.
3.
Write the following statements are true or false.

a.
Promotion and Placement of Employees is the

Administrative purpose of Performance Appraisal.
b.
Assessing Critical Attributes of the executives

Administrative purpose Performance Appraisal.
115
c.
Training and Manpower is the Self- improvement

purposes of Performance Appraisal.
d.
To identify and discover development areas, hidden

skills and talents and provide opportunities is the Selfimprovement purposes Performance Appraisal.
e.
Positive Impact on employees

is
the
improvement purposes Performance Appraisal.
f.
To assess capabilities for growth in the organization is

the Administrative purpose of Performance Appraisal.
g.
Wage and Salary Payment is the Administrative

purpose of Performance Appraisal.
A
GOOD
Self-
9.8
REQUIREMENTS OF
APPRAISAL SYSTEM
PERFORMANCE
1)
Appraisal procedure should be easy to understand and

simple to operate. Complexities need to be avoided.
2)
System operated for performance appraisal should be

employee friendly. Employees should not feel pressurised,
compiled. The system should not be unrealistic theoretical
and partial.
3)
Unbiased appraisal programme can seek employees support

too.
4)
Appraisal system should operate on the concept of

adaptability in congruence with the organization structure.
5)
More scientific and real appraisal system and process is

welcomed by employees and organization too.
6)
Standards of performance need to be clearly and correctly

defined.
7)
Provision of incentives needs to be conferred on employees

who show satisfactory performance of the job assigned
8)
Performance appraisal system needs review and updation

from time to time.
9)
Knowledge skills, attitudes performance interest, capabilities

needs more emphatic touch.
116
10)
Self improvement and realization of goals with positive as

well as negative ratings should be communicated to
employees.
9.9
METHODS OF PERFORMANCE APPRISAL
There are two form classified into traditional and nontraditional or modern method of performance appraisal. Employees
performance is done by measuring the excellence of an employee
through this two forms.
The traditional format emphatically lay importance on the
method of rating employees personality traits & Qualities. The
employees initiatives, drive, creativity, leadership, intelligence etc is
considered in the traditional method. Whereas the modern or new
method of evaluation focus on work, result, capabilities, output
measured in terms with employees effort put in, job achievement
and job satisfaction. It is essential to keep in mind the approaches
in performance appraisal and than realise the different types used
to appraise employees.
The figure below shows the approaches in performance appraisal.
Approaches in Performance Appraisal
A Casual
unsystematic
and often
hazard appraisal
The traditional
and highly
systematic
measurement of
The behavioural
approach
emphasizing
mutual goal
setteing
Employee
Characteristics
Employee
Contributions or
Both
Figure 3 : Approaches in Performance Appraisal.
117
The traditional methods of performance appraisal are as follows :1)
Ranking method
2)
Paired comparison method
3)
Grading method
4)
Graphic Rating scales method
5)
Checklist method
6)
Forced choice Rating method
7)
Forced Distribution method
8)
Critical incident method
9)
Essay or Free form appraisal method
The modern methods of performance appraised are as follows.

1)
Appraisal by Results or Management by Objectives
2)
360 Degree Appraisal
3)
Psychological appraisals.
4)
Assessment Centers.
In the case of traditional methods there are certain methods

where the ratings are done by the superiors. The superiors
appraise the performance of their subordinate. These methods are
prominently seen in government jobs. The ranking method praised
comparison, graphic rating scale, forced choice, critical incident and
forced distribution method come under the system of rating by
superiors
TRADITIONAL
APPRAISAL
METHODS
OF
PERFORMANCE
The traditional methods are explained briefly as follows :

1.
Ranking method :
This is the oldest and simplest form of method where

employee is compared with all others performing in the same job
and a particular rank order to given. This method is less expansion
and less time consuming. This method helps in taking decisions on
salary increase and promotion.
118
The ranking method is possessing some limitations like :

i)
Interdepartmental comparisons and large groups face

difficulty to use this method.
ii)
The method is highly subjective and possibility of rates being

bias can make the appraisal technique defective.
iii)
There is no method used in this technique to measure how

much are employee is superior to another.
iv)
Standard performance is not compared in ranking method

with performance of individual employee.
2.
Paired Comparison method :
The U.S. Army during the First World War used this method
where factors like leadership, dependability and initiatives were
used for analysis. This method is termed as person- to-person
comparison or paired comparison method because here the whole
person is not compared with another whole person but a person
is compared to the key person in respect of one factor at a time. In
job evaluation this method is used the scales designed in this
method is very complicated.
3.
Grading method :
In this method grades, categories and features are

established in advance and carefully defined. The rates consider
certain features and mark them according to a scale. The selected
feature may be analytical and based on co operative tendency,
dependability, self- expression, leadership, organising ability etc.
The scale may be prepared in this form.
A Outstanding
B Very good
C Good
D Fair
E --
Poor
An employee is judged based on their grades and put in

suitable category. Method is simple but lacks accuracy.
119
4.
Graphic rating scales method :
This is the oldest and widely used method of performance

appraisal. Four to twelve factors are selected, depending upon the
category to which the employees belong. Some of these factors are
quantity of output, quality of output, initiative, integrity dependability
etc. these factors and their degrees are marked on a graph paper
provided in the appraisal form. The rater has merely to check on the
scale where he thinks the employee belongs. This method is simple
and easy to operate. It is not time consuming nor expensive but it
puts heavy pressure on the rater to come to final decision so the
accuracy may not be that clear. There are possibilities of the rater
to be bias and lot of paper work is involved.
5.
Checklist method :
In this method, a series of questions are presented

concerning an employee and his behavior the rater checks to
indicate whether the answer to a question about the employee is
yes or no. The value of each question may be weighed.
The set of questions may be as under :
1)
Does the employee work best under tension? Yes / No
2)
Is the employee interested in his job? Yes / No
3)
Does he make mistakes frequently? Yes / No
4)
Is he regular in his Job? - Yes / No
5)
Does he fellow the instruction of his superior? Yes / No
6)
Is he always willing to help other employees? Yes / No
Thought the method is impartial as it reports only the facts

but the values are assigned separately. Therefore this method has
certain limitation like creating a good checklist is a very difficult
task. A separate check list is needed for each category of job and
the method is costly and lengthy.
6.
Forced choice Rating method :
The prejudices and bias criterias can be reduced through

this method care is taken to rate the employees in more accurate,
120
objective, fair and impartial manner. The rater chooses between a

numbers of descriptive statements of apparently equal value. Out of
the four or five statements, select only one, which is the most
characteristic of the employee, as well as one which is the least
applicable to him. With reference to a secret score key, the
evaluation of the rater is checked. The major limitation of this
method is that the rater cannot be trusted and there is less scope
for self improvement.
7.
Forced Distribution method :
In this method the rater appraise an employee according to a

predetermined distribution scale. It is assumed that it is possible to
rate only two factors like job performance and promotion. A five
point performance scale is used without any descriptive statement.
The method helps to reduce raters bias rating such as too
lenient or too strict. Certain measure of uniformity of evaluation
standards can be maintained in this method but this method is
unsuitable for development purposes. This method can be used as
controlling mechanism
8.
Critical incident Method :
The incidents that occur in the performance of jobs are noted

by the supervisor. The critical incidents are examined by the rater
with the performance of the employees and ratings are recorded.
Success & failure factors are considered. Employees with helping
attitude towards their fellow employees are given positive ratings.
The main difficulty of this method is that critical incidents may not
always occur in the organization and so the ratings cannot be
recorded regularly. Human bias, spying, discrimination, favoritism
are negative attributes of this method.
9.
Essay Appraisal method
The Supervisor writes an essay about his experience and

impressions of his subordinates and certain factors are noted like
1)
Organisational ability and planning

general)
2)
Job knowledge & future potentialities.
3)
Employee characteristics and aptitudes.
skills ( activities &
121
The whole evaluation process is subjective based on facts

and information. The employees behavior is enumerated with
specific examples about the employees. The method is objectively
oriented and so in this method writing skills and abilities are given
prime importance.
MODERN METHODS OF PERFORMANCE APPRAISAL
1.
Management of objectives :
In 1954, the concept of MBO (Management by Objectives)

was devised by peter. F. Drucker. The concept was conceived by
Drucker reflecting the philosophy of management valuing the
contribution of employees.
Drucker emphasized that the performance that is expected
of a manager must be derived from the performance goals of the
business. This approach of appraisal by objectives soon replaced
the traditional approach and swept first across the United States
and then Europe. Indian corporate houses have also taken to
including MBO in their management philosophy.
The MBO approach tends to emphasise a participative but
joint determination of objective, followed by a participative but joint
evaluation of success in the periodic appraisal interviews. The
MBO, first is to manage a company its people and resources i.e.
a)
Setting and achieving performance objectives.
b)
Improving performance in planned and systematic manner.
The aims of MBO can be listed as follows:I.
To clarify and determine the most effective means of

achieving profits and growth objectives.
II.
To establish individuals personal participation and

commitment by defining and agreeing with him on the result
areas of his job.
III.
To bring into focus those problems which a manager feels

prevent him from being as effective as he could be.
Appropriate preventive or remedial action can be taken by
the manager or superior.
122
IV.
To improve peoples performance by building on their needs

strengths and successes rather than merely their
weaknesses and short comings.
MBO is primarily a means of managing growth not merely

that of the company but also that of the individual manager,
suspensions and specialists who represent its key personnel. It
seeks to more from the known to the expected MBO is mainly
concerned with the here and now and the future.
2.
360 Degree Feedback :

In this method multiple rates are involved. It involves
systematic collection of performance data on an individual or
group derived from number of stakeholders the stakeholders
being the immediate supervisors, team members,
customers, peers and self. 360 degree appraisal assesses
soft skills of employees. It measures interpersonal skills,
identifies customers, builds team skills, employees
perception about himself and about others is appraised mat
and more firms adopt this method.
3.
Psychological Appraisal :
Industrial psychologists are appointed by big organization for
evaluations and assessing individuals future potentials and
not past performance. There are in depth interviews
psychological tests, discussions with supervisors and review
of other evaluation. The psychologists rate employees
intellectual, emotional, motivationally and other related
characteristics that suggest individual potential and predict
future performance. In case of cross cultural differences this
type of appraisal will be objectionable and turn up as bias.
This method is slow and costly and suitable to young
employees of the organization.
4.
Assessment centers :
This type of test through assessment centers for appraisal is
adopted so that wrong people are not hired or promoted in
jobs. Assessment centers define the criteria for selection and
promotion very clearly. Content validity, reliability is
maintained in a good employee report prepared by the
assessment
centre
employees
characteristics
like
assertiveness persuasive abilities communication ability
organizational ability, self confidence resistance to stress
energy level, decision making capacity, sensitivity to feelings
123
of others administrative abilities, creativity and mental

alertness is assessed by the centre.
There are limitations like:
An employee receiving negative report will be demoralized

to work efficiently.
Assesses can develop unhealthy competition and there are

possibilities of over emphasizing the test performance.
9.11 CONTENTS / COMPONENTS OF APPRAISAL

In performance appraisal two major issues are addressed
mainly, objectivity and openness. Reliable appraisals are a must in
management decisions to promote employees. Therefore
observable and verifiable facts free from undue personal bias are
preferred by the organizations. The other components of
performance appraisal are uniformity in the standards of evaluation.
Uniformity needs serious attention because problem of subjectivity
do come as hurdle in the overall judgment and appraisal of
employees in organization.
Employees are interested in open evaluation system to know
how they excel and perform in comparison to their co- colleagues
and how they are evaluated by their ultimate superiors and what
are the promotional prospects for their future advancements and
long term achievements. Unfair evaluation is always resented by
the employees. Objectivity and openness are interrelated.
Accurate and not inflated rating is the main focus of every appraisal
programme.
PROBLEMS / LIMITATION / CHALLENGES / PITFALLS OF
PERFORMANCE APPRAISAL
Performance appraisal is done by human beings and human
beings are subject to number of errors and pitfalls. The Limitations
of performance appraisal programme give birth to problems. Before
discussing the problem, Let us highlight the limitation of
performance appraisal like:1)
Time consuming : It is a yearly exercise and involves

superiors of the organization.
124
2)
Ineffective and delayed communication process between

rater and rate is major limitation.
3)
Uniform standards are not maintained by organization. The

rating methods become unscientific and employees are the
sufferers.
4)
Participation of employees is negligible and results in

passive role of employees.
5)
Employees many times oppose & resist appraisal system

because of negative feeling that their weaknesses are
addressed in rating and can lead to punishments or
demotion.
6)
There is a halo effect in terms of individual employee getting

rate consistency high or low.
The Problems arising in performance appraisal are:1)
A rate can adopt a central tendency method and rate a

employee as average.
2)
Some rates may be lenient, some strict and some constant

commit errors while appraising employees. All the forms of
rating can endanger & assign low ratings to subordinates.
3)
Too adamant and aggressive stands can be adopted by

raters, subsequently resulting in benefit to one and loss to
another
4)
Contract error can occur in rating like superior and high

profiled employees can be rated first and average
performers are rated down individuality and creativity may be
ultimately eliminated unless corrected in time.
9.12 CHALLENGES OF APPRAISAL

1)
Create culture of excellence for improvement of employee.
2)
Link organizational goals to individuals goals.
3)
Chalk clear cut growth plans for young bright and talented
employees.
4)
Provide new learning challenges to boost modern career set

ups in organization.
125
5)
Encourage employees to be self reliant in taking decisions

and light fear.
6)
Build teamwork in operational processes.
The above points if devises properly can result in

constructive appraisal system and enhance performance of
employees and organization productivity but if the appraising
system fails can lead to challenges confronting the system.
9.13 SUMMARY
Performance Appraisal refers to the evaluation of an
employees actual performance behaviour, potentials, abilities to
take future responsibilities, attitude and overall contributions to the
work environment and the organization Appraisal of employees
generally relates to promoting the employees increasing their
credibility pay rise and any other benefits associated with the
employees efficient performance. Employees efficiency counted in
terms of productivity and profit. Increase in the organization goals
and there by scientifically relates to performance assessment. On
the basis of performance assessment, an employee is graded.
There is a pattern applied in a structured style and set. The
steps involved are:1)
Defining Appraisal objectives.
2)
Establishing job expectation.
3)
Designing the appraisal programme.
4)
Conducting performance interviews.
5)
Using appraisal data for different HR activities.
9.14 QUESTIONS
1)
Explain the meaning of performance appraisal? What are its

objectives?
2)
Bring out the Appraisal process.
3)
Highlight the methods of Appraisal.
4)
Does the result of performance appraisal affect HR

activities? Give Reasons
126
5)
Can performance Appraisal be a process free from pitfalls of

misappropriation in actual practice elucidate.
127
10
GROUP DYNAMICS AND HUMAN NEEDS
CONTENTS :
10.0
10.1
10.2
Objectives
Introduction
Meaning And Definition of A Group
10.2.1 Definition
10.2.2 Need for Grouping
10.3 Features, Functions and Goals of a Formal Group
10.3.1 Meaning
10.3.2 Characteristics of a Group:
10.3.3 Functions and Goals of Groups:
10.4 Informal Groups
10.4.1 Meaning
10.4.2 Types of Informal Groups
10.5 Process of Group Formation and Its Size
10.5.1 Process of Group Formation
10.5.2 Group Size
10.6 Characteristics of Groups
10.7 Conflicts and Managing Conflicts
10.7.1 Meaning of Conflicts
10.7.2 Managing Conflicts
10.8 Meaning of Human Needs
10.8.2 Classification of Needs
10.8.3 Abraham Maslows Theory of Human Needs
10.9 Changing Nature of Human Needs
10.10 Manager's Role In Need Fulfillment
10.11 Summary
10.12 Questions
10.0 OBJECTIVES
After studying the unit the students will be able to:
Define the meaning of a Group
Explain the features, functions and goals of a formal group.
128
Discuss the need for grouping
Understand the process of forming groups and see their size
Understand the nature of conflicts and see how to manage

conflicts.
Understand the nature of human needs.
Explain the role of the management in fulfilling the human

needs of the employees.
Understand human behaviour.
10.1
INTRODUCTION
When there is a need to achieve the wants of the members

in the course of interaction the members develop a group. The
group has a specific structure and the members interact within the
structure. Group dynamics refers to a system of behaviors and
psychological processes occurring within a social group or
between social groups. The study of group dynamics can be useful
in understanding decision-making behavior, tracking the spread of
diseases in society, creating effective therapy techniques, and
following the emergence and popularity of new ideas and
technologies.
10.2 MENING AND DEFINITION OF A GROUP

10.2.1 DEFINITION
A group refers to two or more person who Interact for a
common explicit purpose.
"A number of persons who communicate with one another
often over a span of time and who are few enough so that each
person is able to communicate with each other not at a second
hand, through other people.''
- by Homans
Group is a collection of individuals - the members accept a
common task, become interdependent in their performance and
interact with one another to promote its accomplishment.
129
- by kelly and Thibaut

Thus from the above definitions we can say that primarily a
group is collection of two or more persons who come together and
interact with each other mainly through oral communication to
achieve a common goal to satisfy the needs of an individual or the
organization.
People form groups as man is a social animal and cannot
live alone. For the purpose of achieving common goals and social
interaction people form groups.
10.2.2 NEED FOR GROUPING
Following is the need for grouping:
Need for friendship and togetherness.
Need for security, protection and close interaction.
Need to advance their personal interest.
Need to get advice and support to discharge one's duty.
Need to communicate information and get a feedback.
10.4 FEATURES, FUNCTIONS AND GOALS OF A

FORMAL GROUP
10.4.1 Meaning :
Formal groups are deliberately created with structural
associations and are formed to accomplish specific goals and
complete a particular task.
Formal groups are characterised by specialised roles. They
have fixed unchanging norms which are inflexible and the members
of the formed group have to conform to the rules and regulations
which are laid down.
Formal groups are social arrangement in which the activities
of some persons are planned by others to achieve a common
purpose.
10.3.2 CHARACTERISTICS OF A GROUP:
130
(1)
The group has a common goal or motive.
(2)
The members of the groups will be differently affected

because of different leadership.
(3)
A hierarchy status system may develop within a group.
(4)
All the group members are expected to follow norms which

are laid down for all members.
(5)
Group members have common values.
10.3.3 FUNCTIONS AND GOALS OF GROUPS:

The groups basically perform the following functions and goals .
(a)
Affiliative needs are met through the groups including needs

for friendship, support and love.
(b)
It is a means of developing, enhancing or conflicting or a

sense of identity and maintaining self-esteem.
(c)
It is means of establishing and testing reality.
(d)
It is a means of increasing security and sense of power of

coping with a common and powerful enemy or threat.
(e)
It is a means of getting some job done that members need to

have done.
10.4 INFORMAL GROUPS

10.4.1 MEANING
Informal groups exist with the formal group structures. The
informal groups members relate to each other spontaneously for
purposes of mutual benefit and achievement. The formal group is
controlled by the management but the informal group is not
controlled by the formal authority. Informal groups are emotional
and subjective groups formed on the basis of mutual interest.
10.4.2 TYPES OF INFORMAL GROUPS
(i)
Interest Groups who come together for the purpose of

achieving some common objective.
131
(ii)
Friendship Groups who come together on the basis of social

interaction outside the work situation, generally persons of
similar age with similar views and similar interests.
(iii)
Membership Groups who are part of a big group to which

they belong to but they have a minimal relationship e.g.
group belonging to the religious organization.
(iv)
Reference Groups where a member allows himself to be

influenced by its members behaviour.
(v)
Primary Groups which are characterised by intimate face to

face association and co-operation e.g. a family.
(vi)
Secondary Groups are those where the interrelationships are

more general and remote. The membership of such groups
is generally voluntary and easily withdrawn.
10.5 PROCESS OF GROUP FORMATION AND ITS

SIZE
10.5.1 PROCESS OF GROUP FORMATION
To form a group the following process can be followed.
(1)
There should be strong motivation among individuals who

desire to come together and interact with each other a period
of time.
(2)
Each member must fix his own role which he will play in the
smooth operation of the group.
(3)
The Group members should establish rules, values, norms

and standards of behaviour which all group members must
follow.
(4)
The members should consistently follow the norms laid down

to ensure that the Group remains together.
(5)
Members of the Group must develop group loyalty, group

solidarity and group cohesiveness.
132
10.5.2 GROUP SIZE

The minimum number of members that are required to form
a group is two, but the upper limit depends on the nature of the
group, function of the group and the goals to be achieved.
10.6 CHARACTERISTICS OF GROUPS

Following are the main Characteristics of a Group :
(1)
Members in a group are selected on the basis of common

interest, willingness to join the group and obey the group
norms.
(2)
As the group strives to compete and achieve their objectives,

the group members choose a leader who will guide and lead
the group. The leader will be selected on the basis of his
skill, ability and attribute possessed.
(3)
All groups have a certain degree of formal hierarchy which

outlines the role of each member in the group.
(4)
All groups must have a task or activity to perform to make it

a goal oriented group.
(5)
The members of the group must interact and communicate

with each other to give and receive information.
10.7 CONFLICTS AND MANAGING CONFLICTS

10.7.1 MEANING OF CONFLICTS
Group consists of two or more members who come together
to achieve a common goal. However, the members in the group
may have different attitude, behaviour, temperaments, point of view
and may come from different background. The interaction may lead
to difference of opinion leading to conflict among members. Conflict
is difference of opinion. Conflict may be of the following kinds.
(i)
Interpersonal conflict: This conflict arises due to personal

differences, clashes, communication failures with other
members of the group.
133
(ii)
Intra-group conflicts: This conflict arises between different

groups, departments or sections when there are clashes of
interest.
10.7.2 MANAGING CONFLICTS

The superiors in an organization have to learn to resolve the
conflicts arising among groups. If these conflicts are left
unattended, it will lead to tensions and misunderstanding.
The managers can play a vital role in resolving conflict. One
way is to lead the lose-lose situation to a win-win situation. The
managers must find out the reasons for conflicts and sources of
conflict and redirect the tensions towards more productive
channels.
Managers can adopt any one of the following techniques to
manage conflicts.
(1)
Organizational development.
(2)
Supportive leadership.
(3)
Sensitivity training.
(4)
Job redesigning
(5)
Team approach.
CHECK YOUR PROGRESS

1.
Fill in the blanks :

a.
A group refers to two or more person who Interact for

a --------------------.
b.
---------------------------- are deliberately created with

structural associations.
c.
The minimum number of members that are required to

form a group is ----------------.
d.
-------------------difference of opinion.
e.
If the conflicts are left unattended, it will lead to -----------------.
134
f.
Informal group is not controlled by the -----------authority.
g.
---------------------- are emotional and subjective groups

formed on the basis of mutual interest.
2.
Enlist the techniques to manage conflicts.
3.
Enlist the factors deciding the Group size.
10.8 MEANING OF HUMAN NEEDS

Human needs are unlimited. They are unfulfilled desires or
requirements. A manager has to constantly deal with all kinds of
employees having different needs and wants.
" A need is a lack or deficit of something within the system or
organism."
- by Kolassa
" A need is a condition requiring relief. It is a lack of anything
requisite, desired or useful."
- by Norman Maire
" Need is a personal, unfulfilled vacancy that determines and
organises all mental processes and all behaviour in the direction of
its attainment."
- by C.B. Mamoria & S.V. Gankar.
10.8.2 CLASSIFICATION OF NEEDS
Needs can be classified as follows :
(1)
Primary needs : These are basic needs needed by human

beings for survival and include needs like food, clothing,
shelter, love, affection. These needs are inborn and develop
due to the emotional make-up of human being.
(2)
Safety and Security needs : This need takes care of

physical dangers that can harm the body and include
135
protection from dangerous hazards, calamities, wild animals,

attacks from enemy and natural hazards. Security needs
also include desires to take care of the future, savings,
insurance, provident funds, pension etc.
(3)
Social needs : These needs are concerned with interactions

and relationships with others. It helps to build interpersonal
communication. These needs relate to companionship,
belongingness, friendship, love, affection, self-esteem, social
status etc. Such needs are strongly influenced by culture,
traditions, style, fashion, society, customs etc.
10.8.3 ABRAHAM MASLOWS THEORY OF HUMAN NEEDS

Abraham Maslow has developed a theory of Human needs
who states that needs are arranged in a hierarchy. Maslow's
Hierarchy of need theory sets the needs in order of priority of
needs. He says that when a lower level need is satisfied a higher
level need arises.
Abraham Maslow's Hierarchy of need theory
5th
Selfactualisation
& fulfillment needs.
----------------------------4th Esteem &
Status need
----------------------------------------------
136
3rd Belonging &

Social needs
-----------------------------------------------------------2nd Safety and
Security needs
---------------------------------------------------------------------------1st Basic Physiological needs
Maslow's Order of priority Needs
Maslow says that human needs are arranged in a hierarchy.
1st Basic Physiological needs : These are the lowest level needs
which need to be fulfilled. It includes need for food, clothing, and
shelter. Once the lower level needs are fulfilled, a desire for next
level needs will arise.
2nd Safety and Security needs : When the basic physiological
needs are taken care of, man's desire leads to the safety and
security need pertaining to future, protection from war, crime,
natural hazards, wild animals, building reserves for future, through
insurance, provident fund, pension, and gratuity.
3rd Belonging & Social needs : Once the future is taken care of
and the human being feels safe, next level of need arises that of
social belongingness, need for interpersonal relationship, love,
affection, companionship etc. Hence human need moves to the
next level.
4th Esteem & status need : After social needs are fulfilled, the
human being's desire to be respected, recognized and appreciated.
He desires status, esteem, prestige, power and control.
5th Self-actualisation and fulfillment need : After having
obtained status and power, humans feel the need to go beyond
themselves. They would like to realise their potential and achieve
self-fulfillment. Man wants to do everything he is capable of.
137
10.9 CHANGING NATURE OF HUMAN NEEDS

At different stages in human life, he experiences different
needs. When needs are not satisfied as per desired level, it leads to
frustration. Frustration is the blocking of goal attainment.
A frustrated man may adopt different bahaviour. Different persons
will react differently.
Some may begin to use non-rational ways of behaviour ro
face frustration by using defence mechanism. Man may become
aggressive or regressive. He may develop a fixation and may not
be able to adapt to changes. Unfulfilled needs will also lead to
compromise whereby he will have to alter his needs. He may adopt
the concept of rationalisation where he will justify and give reasons
for rejecting a need which is unfullfilled.
10.10 MANAGER'S ROLE IN NEED FULFILLMENT

In order to fulfill the needs of the employee, the managers
must follow the following steps:
(1)
Find the present need of the employees. This can be

done by observation, discussion, interviews which will reveal
the needs of the employees.
(2)
Find out how these needs can be fulfilled. Determine the

cost involved, time factor, and human effort required.
(3)
Find out the effect of the needs on workers behaviour as a

result of need fulfillment.
Ways of fulfillment of needs at various levels.

(1)
Physiological needs : These needs can be fulfilled by

providing fair wages, taking in consideration the cost of
living. Basic amenities like food, water, healthy environment,
free transport, free housing would help to fulfill physiological
needs.
(2)
Security needs : These needs can be fulfilled by taking care

of their future through pension scheme, provident funds,
gratuity, insurance, medical benefits etc.
138
(3)
Social needs : These needs can be fulfilled through

encouraging friendships, social interactions, picnics, parties,
annual get togethers, breaks and providing holidays.
(4)
Esteem needs: These needs can be fulfilled through

providing challenging environment, promotions, praise which
can act as ego boosters.
(5)
Self-Actualisation: To help the employees to go beyond

their routine activities and excel, the manager must provide
scope for creativity, power and control.
10.11 SUMMARY
Group : A group comprises of two or more members who come
together to achieve a common goal.
Types of group: Formal group and Informal group.
Formal group : Formal Groups are deliberately created within
structural associations.
Informal groups : Informal groups exist with formal groups which
develop spontaneously for purpose of mutual benefit.
Need for group :
(1)
Need for friendship
(2)
Need for security & protection
(3)
Need to get advice
(4)
Need to get support
(5)
Need to communicate
Conflict : Conflict may arise due to misunderstanding, differences

of opinion, and clashes of interest. Managers have to manage the
conflict through the following methods.
(1)
Organisational development.
(2)
Supportive leadership.
139
(3)
Sensitivity training.
(4)
Job redesigining
(5)
Team approach.
Human needs :
Human needs are unlimited. They can be classified as :
Primary needs.
Safety and security needs
Social needs
Changing human needs :
Human needs keep changing at different stages in life.
Manager's role in need fulfillment :
Manager must take the following steps to fulfill needs.
(1)
Find out the needs.
(2)
Find out how these needs will be satisfied.
(3)
Find out what effect, the needs fulfillment will have on

employees behaviour.
10.12 QUESTIONS
1.
Explain the features and functions of a formal group.
2.
What are informal groups?
3.
Explain the process of forming a group.
4.
What is conflict? How can it be resolved?
5.
What are various human needs?
6.
Explain Maslow's hierarchy of need theory.
7.
Explain the changing nature of human need.
140
8.
How can managers manage need fulfillment?
9.
Explain the following concepts,

a.
Group.
b.
Formal group.
c.
Group size
d.
Informal group.
e.
Social needs.
f.
Physiological needs.
g.
Self-actualisation.
h.
Esteem needs
i.
Need fulfillment.
141
11
HUMAN RELATIONS
CONTENTS :
11.0 Objectives
11.1 Introduction
11.2 Meaning And Definition of Human Relations
11.2.1 Meaning
11.2.2 Definition
11.2.3 Objectives of Human Relations
11.3 Nature/Features of Human Relations
11.4 Importance of Human Relations
11.5 Ways to Build Human Relations
11.6 Summary
11.7 Questions
12.0 OBJECTIVES
To understand the meaning of human relations
To know the nature and objective of human relations
To know the importance and scope of human relations
To focus on the measures or

relations
ways to improve human
11.1 INTRODUCTION
The concepts of human relations are very importance
nowadays in today dynamic and teambuilding concepts of
management philosophy. The relationship among employees
depends on the human relations developed among them. Modern
philosophy of management gives more importance to the Human
resource and forming human relations among them. Employees in
an organization have different culture, education, income,
experience etc. they have different needs and objectives. So it is
necessary to make them interact for the organizational purpose.
Human relations help in forming interaction among them along with
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their individual, social and behavioral differences. The most

important Human factor can be made more productive if treated
fairly. Their willingness toward work can only be developed by
maintaining good relations among them. Human relations helps in
forming interrelationships of human being.
11.2 MEANING AND

RELATIONS
DEFINITION
OF
HUMAN
11.2.1 MEANING
Human relation in simple language refers to interaction of
people. It is a body of knowledge which deals with behavior of
people at work. It also refers to forming cordial relationships among
employees. It is the study of group behavior for improving
interpersonal relationships among employees. The managers
having human skills can manage their employees with different
behavior pattern smoothly. It is related to social science of
behavior. Every organization has group dynamics, team building
where work is not carried only by one individual in isolation but by
all together toward the common objectives. So the human relations
are natural to form. It helps toward accomplishment of goals easily.
Along with physical and social attributes of employees,
psychological attribute also matters. Here human relations help to
in orderly manner. Human relations are the study of human
behavior or problems arising out of organizational or industrial
relations in industry.
11.2.2 DEFINTION
According to Keith Davis
A human relation is an area of management practice which
is with the integration of people into a work situation in a way that
motives them to work productively, cooperatively and economic,
psychological and social satisfaction.
11.2.3 OBJECTIVES OF HUMAN RELATIONS
1.
To improve relations with all the stakeholders of the

organization.
2.
To develop mechanism for strong human interpersonal

relationships
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3.
To increase productivity by improving relations among the

employees.
4.
To integrate the knowledge of all the sciences like

psychology, sociology, management etc. for organizational
purpose.
5.
To improve communication within the organization of all the

forms.
6.
To keep morale high and building group dynamism with work

culture.
7.
To have healthy social networking and communication within

the organization.
8.
To boost the progress of an industry or an organization with

integrative process.
11.3 NATURE/FEATURES OF HUMAN RELATIONS

Following are the nature/features of human relations,
1.
Process of motivation :
Human relations are a process of developing, maintaining

and enhancing motivation of individuals. Human relations process
is undertaken to achieve a balance between company objectives
and satisfaction of employees. Various activities are undertaken in
the process of developing and enhancing human relations such as
improvement in working conditions, training, welfare facilities,
working condition, fair wages etc.
2.
Knowledge of human behaviour :
Human relation improvement requires a good knowledge of

human behaviour. Manager needs to find out How people behave
under different situations, why people behave in a certain manner?
Manager need to understand human behaviour to develop human
relations in the organization. Manager should understand the
feelings and emotions of people and accordingly manage them.
3.
Integrated approach :
Human relations is an integrated approach of maintaining

and improving relations. The study of human relation derived
knowledge from different disciplines such as psychology, sociology,
economics, political science, physiology, science of semantics,
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management, and so an For example, the discipline of psychology

helps to study human behaviour at work. And the study of sociology
deals with group dynamics, informal groups, and so on.
4.
All pervasive :
Human relations approach is touches all walk of life. It is
required in business and nonbusiness organizations, small and
large organisation, at all levels in the organization etc. Every
organization consists of people, and therefore, the need arises to
develop good relations with human resources.
5.
Employee welfare :
Human relations approach is touches all walk of life. It aims

at development of employees in the organisation. Therefore,
management needs to provide emphasis on all those areas that
help to generate employee welfare, such as provision of welfare
facilities like canteen, recreation, crche and rest rooms. Also
emphasis needs to be placed on good working conditions and
relationships between superior and subordinates.
6.
Continuous Activity :
Human relations is a continuous activity, mangers should

take continuous efforts to improve human relations in the
organisation. Employees have feelings and emotions, which
change depending upon changes in the work environment and
external environment. Therefore, there is a need for continuous
monitoring of human relations.
7.
Improves morale and job satisfaction :
Human relations improve group morale and individual job

satisfaction when management makes efforts to maintain and
improve relations, employees work with cooperation, commitment
and dedication.
8.
Goal Oriented :
Human relations is a goal-oriented approach. Emphasis is

placed on achievement of organisational goals such as increase in
productivity, improve corporate image, reduce absenteeism, labour
turnover, customer satisfaction, loyalty etc.
11.4 IMPORTANCE OF HUMAN RELATIONS

1.
Improves productivity :
Better relationship among labour is the essence of group

productivity. Good human relations play an important role here to
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build good social environment where relations flourish and

organization also gets benefited with good output results. The
productivity of employees depends upon their psychological
behavior as well. Human relations thus enable them to add to more
marginal productivity.
2.
Better atmosphere :
Every organization has a collection of individuals generally

from diverse background. So there are more change of conflicts,
misunderstanding due to individual, social, ideological differences.
Human relations enable them to work for organizational purpose
and thus better work atmosphere is created.
3.
Less labour turnover and absenteeism :
Most of the time people leave the organization as they are

not happy with the atmosphere or the colleagues they are working
with. Due to not having strong relationships interpersonally, they
quit job and creates the problem of labour turnover. High labour
turnover can adversely affect the flow of work. So human relations
are needed to lessen the labour turnover and absenteeism.
4.
Better utilization of resources :
Better relations lead to better coordination & better team

spirit, thereby ensuring better utilization of Resources. Due to clear
communication, duplication work is avoided and resources are well
utilized for the organizational purpose.
5.
Less labor problems :
Unhealthy relations can give to mistrust hatred & ultimately

labour disputes. Good human relations help in removing conflict
among employees and minimize their problems saving organization
from consequences arising from such conflicts.
6.
Effective control :
Human relations help to retain control over the employees

with proper communication and help in forming good social,
informal atmosphere.
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7.
Job satisfaction :
Good relations increases morale of the employees and give

them job satisfaction. The organization gains goodwill and people
show their interest to join the same for their career development.
CHECK YOUR PROGRESS
1.
Define the term human relations?
2.
Write some features of human relations.
3.
How can human relations be improved?
4.
Why human relations are needed?
5.
Enlist the points explaining the nature of Human relations.
11.5 WAYS TO BUILD HUMAN RELATIONS

Following are the measures taken by management to improve
Human Relations
1.
Continuous contact :
In order to form good relation among the employees, an

organization should take care that there is a continuous contact
among them. For this communication can be taken as strong
medium. Informal relationships should also be encouraged to some
extent. Because the employees always have their informal talks to
understand each other in a better way.
2.
Giving respect :
Human relations can be well formed when the employees

are respected and given fair treatment. Calling them by name also
works well to increase their morale. When an employee is called
with his name or surname with Mr. or Miss or Mrs. Suffixes. They
fell honored and excited. Such as small things can also help in
forming relationships among employees.
3.
Praising and appreciation :
Everyone likes appreciation and praising for their

contribution and works done or services rendered. It increases the
morale and efficiency together. It also encourages others and
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motivates to perform in the line of excellence to be praised of by

organization.
4.
Following ethical practice :
Following ethical practices promotion and transfer, human

relations can be building well. Human resource manager should
take care that he gives equal opportunity for promotion and
selection for transfer. It helps in strengthening good human
relationship.
5.
Consideration :
By giving consideration to the people within the organization

helps building good human relations. The confidence and trust
should be shown on the employees who work for the organizational
interest. Considering them for their issues and requirements also
builds good human relationship management. Giving smiling and
happy welcome is sometimes enough for human relations.
6.
Other measures :
Provide training to HRM staff
Develop on-the-job, skill-based training for health care staff
Strengthen supervision
Consider redefining scopes of practice for health care staff
Track employee data such as attrition, staff turnover,

absenteeism
Address inequities in staff workload, salaries, allowances
Extend benefits program
11.6 SUMMARY
Human relation in simple language refers to interaction of
people.
The main features of human relations are: Process of
motivation, Knowledge of human behavior, Integrated approach, All
pervasive, Employee welfare, Continuous Activity, Improves morale
and job satisfaction, Goal Oriented.
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Better Human Relations: Improves productivity, Creates

better atmosphere, human relations are needed to lessen the
labour turnover and absenteeism, avoid duplication of work and
leads to better utilization of resources,
remove conflict among
employees and minimize their problems, retains control over the
employees, increases morale of the employees and give them job
satisfaction.
To improve Human Relations the management takes the
following measures: Continuous contact with the employees, giving
respect to the employees, Praising and appreciation to the
employees, giving equal opportunity for promotion and selection for
transfer, giving consideration to the people within the organization
etc.
11.7 QUESTIONS
1.
What are human relations? Explain its objectives
2.
Explain the scope and importance of human relationships
3.
How can human relations be improved? Explain.
4.
Discuss the nature of Human Relations.
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12
MOTIVATION
CONTENTS :
12.0 Objectives
12.1
Introduction
12.2
Meaning and Definition Of Motivation

12.2.1 Meaning
12.2.2 Definitions
12.2.3 Components of Motivation
12.3
Nature of Motivation
12.4
Classification or Types of Motivation
12.5
Steps of Motivation:
12.6
Foundation of Motivation / Approaches To Motivation
12.7
Motivational Techniques/ Factors Affecting Motivation
12.8
Theories of Motivation
12.9
Summary
12.10 Questions
12.0
OBJECTIVES
INTRODUCTION
In this part of motivation chapter we shall focus on various
theories of motivation brought forward by many experts. These
theories do indicate all concerned approach of motivation. Most of
the organizations do follow the principles of these theories for
motivating their employees. Here we are going to study four
theories of motivation namely need hierarchy theory, two factor
theory, Theory X and Theory Y and Vroom theory.
12.1
INTRODUCTION
In every theory of management study human motivation has

a great importance. The work can be taken done in better manner if
the management is able to motivate its people in a right way.
Positive motivation always adds value to the organization. It is the
obvious that without the force of motivation in any way, organization
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goals can never be achieved. Motivation is positively correlated with

level of aspiration, degree of commitment and inclination towards
action. So in this chapter we shall learn about motivation and its
advantage to the employees as well as organization. Because it
includes all internal and external factors which induces a person to
take a particular course of action.
12.2 MEANING AND DEFINITION OF MOTIVATION

12.2.1 MEANING
The term motivation comes from the Latin word Movere,
which means to Move. Motive is as inner state of our mind that
activates and directs our behavior. It is always revealed by behavior
although it is internal. It is the psychological willingness to give
efforts toward goal accomplishment. Motivation encourages
employees to work willingly toward the goal. Motivation may be
positive or negative but the result is always expected to be positive.
If the employees are provided with better incentives and rewards
then motivation is known as of Carrot Approach on the other
hand if they are punished by then the motivation is known as Stick
Approach.
Motivation can be positive or negative. A Positive motivation
involves offering rewards and incentives on achievements of target,
while negative motivation involves creating fear in the minds of
employees by punishing them in the form of demotion or removing
them from job on non fulfillment of objectives.
12.2.2 DEFINITIONS :
According to Stephen P. Robbins
Motivation is the willingness to exert high levels of effort
towards organizational goals, condition by the efforts ability to
satisfy some individuals need.
Fred Luthans defined motivation as
A process that starts with a physiological or psychological
deficiency or need that starts with a psychological deficiency or
need that activates behavior or a drive that is aimed at a goal or
incentives.
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According to W.G.Scott
Motivation is the process stimulating people to act to
accomplish the desired goals.
12.2.3 COMPONENTSOF MOTIVATION :
Motivation depends upon three important components which
include needs, drives, and goals. The fulfilling of an individuals
needs or desired can serve to motivate him. Incentives or goals are
the instruments used to induce people to follow a desires course of
action.
A manager motivates his personnel towards the
achievements of organizational objectives by satisfying their needs.
Needs (Desires)
Physiological
Psychological
deficiency
Drives (Motives)
or Deficiency
direction
Goals (Incentives)
Anything
that
with alleviates a need
and reduces a drive
THE BASIC MOTIVATION COMPONENTS
12.3 NATURE OF MOTIVATION
It is always internal to man and unseen. But it is always

reflected by external behavior of an individual.
It can emerge and disappear. It is psychological so the same

intensity cannot be remained at all the time. Every time
techniques of motivation are to be used to emerge
motivation among the employees.
A single motive can cause different behavior or different

motives may result in single behavior.
It is the result of several forces existed in and around the

environment.
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12.4 CLASSIFICATION OR TYPES OF MOTIVATION

1.
Positive and Negative motivation:
In positive motivation employees behavior is influenced by

giving rewards. It results in sense of belongingness and strong
affiliation among the employees regarding the organization. It
results in good productivity.
On the other hand Negative motivation denotes effect or
reactions which people seek to avoid e.g. demotion, dismissal,
disapproval etc. in such as situation they only obtain negativity.
There not motivation is found in real.
2.
Extrinsic and intrinsic motivation;
Extrinsic motivators arise away from the job. They do not

occur on the job. They include wages, medical reimbursement or
fringe benefits. They deal with financial incentives mostly. They are
also called as external motivators.
On the other hand intrinsic motivators occur on the job and
provide satisfaction during the performance of work itself. They
include status, authority, recognition and participation. They are
also known as internal motivators.
3.
Financial and Non-financial motivation:
Financial motivators are those which are associated with

money, they include bonus, retirement benefits salaries or wages
etc. they are known as Monetary motivation.
On the other hand non- financial motivators are those which
are not associated with money but they include intangible
incentives like job satisfaction, self- actualization and responsibility
etc. they are also known as Non-monetary motivation.
12.5 STEPS OF MOTIVATION
Sizing up motivation :
In this step it should be kept in mind what kind of motivation

is to be given and when it is to be given. All employees do not get
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motivated in all the situations but they respond to the situation

favorable to them. Motivational needs should be considered here.
Preparing motivational tools :
Here the tools or devices likely to work with different type of

people should be prepared. Motivational need of every particular
person should be considered.
Selecting techniques :
In this the proper technique should be selected for motivating

employees. Various methods are available to motivate employees.
So the type of motivation to be provided should be decided. It may
be of monetary or non-monetary type of techniques.
Follow-up :
Here the results of motivation provided are seen. And

evaluation is done of the techniques followed for motivation. This is
the last step in which it is seen that how far motivational techniques
have been implemented well.
12.6 FOUNDATION OF MOTIVATION / APPROACHES

TO MOTIVATION
An organization' assumption about employees motivation
depends upon its on motivation Following are the various
approaches to motivation:
1.
Traditional approach :
Frederick Taylors scientific management was the first

genuine study on employee motivation. In order to increase
productivity, systematic analysis of the job of the employees job
was undertaken. They were rewarded accordingly.
2.
Human relations approach :
Elton Mayo and Fritz, the pioneers of Hawthorne studies

concluded that employee productivity can be increased if
supervisors develop effective human relation skills in counseling
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employees and establish their authority on the basis of social skills.

So this approach gives more importance to the human relationship.
3.
Human resources approach :
This theory states that employees motivation is a very

complex issue as employees are motivated by various factors. Here
it is assumed that the employees are quit component and can
positive contributions to enhance organizations performance.
McGregor work on Theory X and Theory Y is an example.
12.7 MOTIVATIONAL
TECHNIQUES/
AFFECTING MOTIVATION
FACTOS
Different motivational techniques can be used to motivate

employees towards effective performance. They are categorized as
financial and Non-Financial techniques.
A)
FINANCIAL TECHNIQUES OR MONETARY FACTORS :
1.
Regular payments :
In order to motivate employees care should be taken that
they paid adequate salary or wages and that is too on the regular
basis. The basic drive behind giving labour or service is money. So
if employees are paid regularly it surely motivates them to work
positively and willingly.
2.
Bonus and Incentives :
Employees should be given bonus during festivals or

occasionally. Along with it they should also be provided incentives
like Medical Allowances, Leave and Travel Allowance to motivate
them.
3.
Special monetary incentives :
Most of the time, companies pay special rewards in the form

of cash to the employees who prove their efficiency in the form of
any ideas or suggestions given for the benefit of organization. It
truly motivates employees to perform their best.
B)
NON FINANCIAL OR NON MONETARY
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1.
Recognition or praising :
In order to motivate employees, it is very important to praise

them. If they show Excellency in the work, they should be verbally
praised and admired. It builds employees confidence and they feel
contented psychologically.
1.
Status of job:
In order to motivate employees they should be given high

titled job or at least should be named with respect. Today salesmen
are called sales executives, or watchman is called Security officer.
This way good title motivates employees.
2.
Good relation:
In order to motivate employees there is a need of removing

conflicts, misunderstanding among the employees and between the
manager and employees. It can be done by keeping harmonious
relationship with the employees.
3.
Job security:
Job security should be provided to the employees for making

them feel that they are the permanent part of an organization. They
should be not be made feel insecured. So the probation period
should be kept minimum. Job security increases the morale of
employees to work with dedication.
4.
Working condition :
Good working conditions with all the facilities made available

to the employees motivates them to work hard. The job
surrounding, drinking facility, pollution free environment, good
ventilation, sanitation, canteen facility motivates employees
positively.
5.
Promotion and Transfer :
In order to motivate employees, their transfer should be done

with planned progression or within the organization they should be
promoted. It is the best way of motivation because the promoted
employees surely show best results due to willing dedication to
work.
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6.
Participation :
Participation is an effective technique with which to motivate

individuals. It satisfies the esteem and self actualization needs of
employees. It improves the knowledge of employees and
contributes to their advancement. MBO is the most popular and
modern method of motivating employees. It allows employee
participation on goal setting.
7.
Job enrichment :
A job may be enriched by encouraging the workers

participation in decision making, entrusting them with additional
responsibilities, making the job more challenging and interesting,
etc. Job enrichment techniques can lead to increased productivity,
reduced turnover and absenteeism, and improved morals.
CHECK YOUR PROGRESS
1.
What is motivation? What is Carrot and Stick approach of
motivation?
2.
Bring out main differences among Traditional, Human

relation and Human resource approach of motivation.
3.
Enlist the Financial and Non-Financial techniques of

motivating to employees?
4.

a.
Motivation
b.
Positive Motivation
c.
Negative Motivation
d.
Intrinsic Motivation
e.
Extrinsic motivation
f.
Financial Motivation
g.
Non- Financial Motivation
12.8 THEORIES OF MOTIVATION

A)
DOUGLAS MC GREGORS THEORY X AND THEORY Y
OF MOTIVATION
Douglas Mc Gregor developed the concept of Theory X and
Theory Y. He presented two opposite sets of assumptions about
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the employees and about management views about the nature of

man at work. Theory X stands and represents traditional
management principles and behavior of employees on the other
hand Theory Y speaks about modern management philosophy.
The differences between both the theories have been explained
below.
Point
Theory X
Theory Y
Leadership
They like to be They like to be
followers and lack leaders to lead all
leadership qualities. the time.
Attitude
Most of the people Most of the people
dislike work. They like work. They do
avoid work
it with dedication.
Direction
People need to be People like to take
directed as they lack initiative
initiative.
independently
Motivation
They
lack They are highly
motivation.
Self motivated.
Self
motivation
is motivation
is
completely absent
present
Ambitions
People
are
not People are very
ambitions.
They ambitions.
They
prefer routine jobs prefer challenging
and
avoid jobs.
challenging jobs.
Commitment
People
are
not People are very
committed towards committed towards
their jobs. They work their jobs. They
for personal interest. work
for
organizational
interest
Creativity
People
are
not People are very
creative. They lack creative. They are
rational thinking
active enough.
Rewards
Most of the time Positive motivation
negative motivation is provided through
is provided through recognition,
punishment.
praising
and
appreciation.
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CONCLUSION :
According to Mc Gregor theory Y is most suitable for the
modern business and organization philosophy. Theory X has
number of limitation where neither the growth of organization can
take place nor the employees can grow. So in order to utilize
human resource properly, theory Y is most relevant in today.
B)
MASLOWS NEED HIERARCHY THEORY ABRAHAM
MASLOW.
Abraham Maslow has arranged human needs in a hierarchy.
According to him at a given moment of time all needs are not
equally important. They can be placed in an ascending order in the
order of importance. This theory has universal application because
it generalizes and relates the motivation of each human factor.
a)
Physiological needs :
These are the basic needs of every individual. It includes

food, clothing and shelter, rest and sex. Unless these needs of an
individual are fulfilled, he will not be motivated even to think of
fulfillment other needs. Without fulfillment these needs survival is
not possible. E.g. if employees are not paid enough to fulfill their
basic needs, they can never be happy to work sincerely.
b)
Security / Safety needs :
These needs deal with job security and health security.

Every individual needs to have protection from danger and at the
same time expects to have permanent job.
Only when physiological needs are satisfies a person will try
to satisfy security / safety needs. E.g. If employees working as
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scavengers are not provided with gloves and mask. They will be
demotivated and it may cause to their health also.
c)
Social needs :
Man is a social animal. A persons desires are to be

accepted and liked by the society. These needs will arise only if
physiological and safety needs are satisfied. In this need he likes to
make friends, community groups etc. It reflects natural process of
socialization as a main feature of mankind.
d)
Esteem needs :
Esteem means to have high regard for or to greatly respect

or to think favorably. Here People have desires to be respected by
the society. They feel that they can get respect if they achieve a
position of power. People therefore try to acquire status and
recognition. Name and fame are the main drives in this kind of
need.
e)
Self actualization needs :
It is the desire to become what one is capable of becoming

i.e. to make maximum use of ones potential or to achieve
something exceptional. This need is the result of dedication, hard
work, commitment, sincerely, consistent efforts. Very few people
have this kind of need to be motivated.
C)
HERZBERGS TWO FACTOR THEORY
Fredrick Herzberg developed the two factor theory in 1950s.

In depth interviews of over 200 engineers and accountants were
conducted. The respondents were required to describe the type o
work related environment in which they felt comfortable or
uncomfortable. The research was carried to understand the factors
which satisfy them. So two sets of finding were job satisfaction and
dissatisfaction.
Hygiene factors:
Hygiene factors are necessary to prevent dissatisfaction.

These factors may not induce people to work harder but may avoid
dissatisfaction if properly adhered to. Hygiene factors may include:
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Wages, salaries, perquisites. If these are not provided then

the employees will be dissatisfied and their attitude towards
work in particular may be negative and dull.
Companies HR policies should be employee welfare

oriented.
If interpersonal relation between peers, between seniors and

juniors etc. are cordial then job satisfaction amongst
employee is high.
If the job is relatively secured then employees are relatively

satisfied. Similarly if working conditions which include type of
work, time of work etc. are not convenient
then it may
cause lot of dissatisfaction amongst the work force.
Motivational factors :
Motivational factors mean those factors which would induce

employees to work harder or which would increase their efficiency
on the performance. These factors are:
People need appreciation and praising for their work done.

So any good job done by employee should be appreciated
immediately may be verbally or by a letter.
Morale of the employee should be boosted if he is adored for

any innovative suggestions given.
Consistent positive motivation should be provided to them for

their professional growth and development.
The job should be challenging rather than a routing one. This

will motivate the employees as they can be more creative
and this will give them a chance to utilize their latent talents.
CHECK YOUR PROGRESS

1.
Fill in the blanks

a.
Douglas Mc Gregor developed the concept of

-------------------.
b.
Theory -------------- stands and represents traditional

management principles and behavior of employees.
161
c.
Theory ---------------------management philosophy.
speaks
about
modern
d.
----------------------------- has arranged human needs in

a hierarchy.
e.
According to Abraham Maslow at a given moment of

time all needs are not ------------- important and can be
placed in an ----------------- order in the order of
importance.
f.
Abraham Maslow divided human needs in --------------groups.
g.
---------------------- needs deal with job security and

health security.
h.
--------------------- needs reflects natural process of

socialization as a main feature of mankind.
i.
Name and fame are the main drives in the

--------------------- need.
j.
----------------------------- developed the two factor theory

in 1950s.
k.
--------------------- factors are necessary to prevent

dissatisfaction.
l.
------------------ factors increase the efficiency of the

employees on the performance.
2.
Which motivational theory is best X or Y? Explain
3.
Short list hygiene factors and motivational factors of

Herzbergs theory of motivation.
4.
Explain the need hierarchy theory of Maslow.
5.
Draw the figure showing the arrangement of human needs in

a hierarchy explained by Abraham Maslow.
D)
VROOMS THEORY OF MOTIVATION
This theory is proposed by Victor Vroom. This theory

comprised the key concepts of valence, expectancy and
instrumentality. It is one of the widely theory. It is a cognitive
process theory of motivation. This theory is framed on the
162
assumption that the people will be motivated to exert a high level of

effort when they find relationship between efforts they put and
performance they achieve.
Valence refers to the preference of and individual for a

particular outcome. The person can be motivated toward an
objective by the valence for a particular outcome or reward.
Expectancy refers to the probability that certain efforts will

lead to the required performance.
Instrumentality refers to the probability that successful

performance will lead to certain outcomes.
It is expressed as:
Motivation = Valence X Expectancy X Instrumentality
Being the model multiplicative in nature the all three variable
must have high positive values to imply motivated performance
choices.
12.9 SUMMARY
Motivating means encouraging people to take more initiative
and interest in the work assigned. It is an art of getting things done
willingly from others. The creation of the desire and willingness to
perform the job efficiently is generally known as motivation. The
factors affecting motivation are divided into two groups i.e.
Monetary Factors and Non-monetary Factors.
Monetary Factors include: Salaries and wages, Bonus,
Incentives and Special Individual Incentives etc.
Non-monetary Factors include: Status or job title,
Appreciation and Recognition, Delegation of authority, working
conditions, Job security, Job enrichment, Workers participation etc.
Douglas Mc Gregor developed the concept of Theory X and
Theory Y. Theory X and Theory Y represent two sets of
assumptions about human nature and human behavior that are
relevant to the practice of management. Theory X represents a
negative view of human nature that assumes individuals generally
dislike work, are irresponsible, and require close supervision to do
their jobs. Theory Y denotes a positive view of human nature and
163
assumes individuals are generally industrious, creative, and able to

assume responsibility and exercise self-control in their jobs.
Maslows-Hierarchy of Needs Theory was proposed by
Abraham Maslow and is based on the assumption that people are
motivated by a series of five universal needs. Maslow's hierarchy of
needs is often portrayed in the shape of a pyramid, with the largest
and most fundamental levels of needs at the bottom, and the need
for self-actualization at the top.
Management theorist Fredrick Herzbergs two-factor theory
of motivation suggests that there are two components to employee
motivation in the workplace. In 1959 Herzberg suggested that the
sets of circumstances that make people unsatisfied at work
(hygiene factors) are a different set from the sets of circumstances
that make people satisfied (motivating factors). This was the result
of interviews he conducted with 200 engineers and accountants in
Pittsburgh, Pennsylvania, who were asked what made them feel
bad about their jobs (dissatisfier) and what made them feel good
about their jobs (satisfier).
Vrooms theory of motivation is proposed by Victor Vroom.
This theory comprised the key concepts of valence, expectancy and
instrumentality.
12.10 QUESTIONS
1.
What is motivation? Explain the nature of motivation.
2.
Explain various types of motivation or classify motivation in

different types.
3.
Explain various approaches of motivation.
4.
What are the stages of steps of motivation? Explain
5.
What are the techniques of motivation? OR Explain financial

and Non-financial techniques of motivation in brief.
6.
Explain Abraham Maslows theory of motivation OR Explain

Maslows need hierarchy theory of motivation
7.
Explain Mc Gregors theory of X and theory of Y.
8.
Explain Herzbergs two factor theory of motivation.
9.
Explain Vrooms theory of motivation theory in brief.
164
13
EMPLOYEE MORAL
CONTENTS :
13.0 Objectives
13.1 Introduction
13.2 Employee Morale
13.2.2 Nature / Features of Morale
13.3 Importance of Employee Morale
13.4 Factors Influencing Moral
13.5 Measurement and Improvement of Employees Moral
13.5.1 How to Improve Employee Morale
13.5.2 Steps to Improving Morale
13.6 Summary
13.7 Questions
13.0 OBJECTIVES
After studying the chapter the students will be able to
Define the concept Moral
Explain the features of employees morale.
Discuss the nature and importance Employees Moral
Discuss the factors influencing moral.
Explain the measures to be taken to improve moral.
13.1 INTRODUCTION
Employee morale describes the overall outlook, attitude,
satisfaction, and confidence that employees feel at work.
Considering the factors affecting the employee morale, an
organization should come out with positive and constructive
suggestions, ideas and plans which may be beneficial to both
organization as well as the employees. Reasonable and effective
decisions must be taken in order that the employee morale can be
enhanced. Employee morale is the vital ingredient of organizational
165
success. It is based on the positive feelings of the employees

towards an organization that the tasks are accomplished in a way
as has been intended and planned. If an organization enhances the
employee morale, it means it actually enhances the organizational
competence because the total organizational competencies are
based on the highly competent employees and how an employee
becomes competent is due to high morale. Hence, the higher the
employee morale, the greater will be the success and the
productivity. In this way Employee morale and the organizational
growth go hand in hand.
13.2 EMPLOYEE MORALE

Morale means spirits. Morale is a mental condition which
determines enthusiasm to work. High employee morale is a state of
mind where the employee has high enthusiasm to work.
Definition of morale
According to Flippo, morale is a mental condition or
attitudes of individuals and groups which determine their willingness
to cooperate.
Morale means the attitude of employees and group towards their work
environment and towards voluntary cooperation to the full extent of their ability
in the best interests of the organisation.
- Keith Davis
13.2.2 NATURE / FEATURES OF MORALE :
Following points explains nature of morale :
a)
Group phenomenon :
Morale is a group phenomenon. It describes the overall

group satisfaction. Group morale is especially important to monitor
since individuals often take social cues from their co-workers and
adopt their own attitudes to conform to those of the group.
166
b)
Effect on productivity :
Morale can have a direct effect on productivity. High morale

leads to high productivity due to the co-operative spirit of the
employees. Low morale leads to low productivity because
employees lack the willingness and motivation to work.
c)
Types of morale :
Morale can be high or low. High morale exists when

employee attitudes are favourable to attain objectives. Low morale
exists when there is lack of willingness on the part of employees to
achieve organisational objectives.
d)
Modified by management :
Management can modify the morale of the employees. A low

morale can be corrected by creating a favourable work
environment, and by adopting employee oriented policies and
practices. For example, improvement in working conditions and
welfare facilities may lead to higher morale, which in turn can
increase efficiency of the employees.
e)
Long-term benefits :
Morale can generate long term benefits to the organisation.

High morale leads to higher performance in terms of quality and
quantity of goods and services. This creates a good image of the
firm in the minds of customers, and others. Therefore, the image of
the firm may generate loyalty on the part of customers, suppliers
and dealers.
f)
Individual and Group morale :
Morale can be of an individual or of a group. An individual

morale is high when one has realistic level of expectations and
makes efforts to fulfill those expectations. Group morale reflects the
team spirit within the group. Nowadays, group morale is vital to
organisation, as organisations operate through groups.
g)
Achievement of organisational goal :
Morale facilitates the attainment of organisational goals.

Employees with high morale display the lower tendency to remain
absent, less likely to quit the organisation; make efforts to reduce
167
costs and wastages. Give suggestions for improvement, cooperate

with management, display good corporate citizenship behaviour
etc.
There are making the employees committed to achieve
higher efficiency and productivity.
h)
Measurement of morale :
The morale of employees can be measured by conducting

morale surveys and exit interviews. The management may also
consider certain indicators such as rate of employee absenteeism
and turnover, rate of productivity, rate of accidents or machine
breakdown, number and nature of grievances, conflicts and
disputes, waste and scrap, quality of output etc.
13.3 IMPORTANCE OF EMPLOYEE MORALE

Following are the importance of employee morale
a)
Increased productivity :
Productivity of an employee depends to a greater extent on

his morale. There is a direct correlation between morale and
productivity. Higher the morale, higher is the productivity and vice
versa.
b)
Low labour turnover :
Workers who are dissatisfied with the type of work assigned

to them have low morale such workers are likely to quit the
organisation. High labour turnover is likely to affect the overall
productivity of the organisation. So in order to reduce turnover, it is
essential to have a high morale amongst them.
c)
Reduced accidents :
Employees having high morale are likely to be more involved

with their work. This is likely to reduce the accidents that occur at
the place of work.
d)
Reduced absenteeism :
168
A person with high morale generally has more enthusiasm

for work. This reduces the absenteeism at the fork place. High
absenteeism is likely to affect the work flow adversely.
e)
Improve work culture :
Employees having high morale is likely to have a positive

attitude towards the work this is likely to improve the work culture of
the organisation.
f)
Job satisfaction :
A person having high morale is likely to be more satisfied

with the job in hand job satisfaction is essential for bringing out
innate strength of employees.
g)
Less Supervision :
A person having high morale is likely to work intensely and

passionately towards achieving individuals and organisational
goods. This would automatically necessitate less supervision.
13.4 FACTORS INFLUENCING MORAL

Employee morale is a huge factor in determining
productivity. There are many factors that can affect employee
morale both positively or negatively, and it is important to be aware
of them so that it can be make sure that the employees are happy
and not scanning the local job sites for something better. Following
are the factors affecting on moral.
1.
The Office Environment
Employee morale is definitely affected by office

surroundings, so it is important to keep it orderly and clean. The
office has truly become a home away from home for many people,
and the quality of the work environment can either help inspire
employees to perform at their optimal performance levels or cause
them to look for another employer as they count the minutes every
day until quitting time. An unsafe environment, for example, can
wreak havoc on morale because employees may eventually feel
that their employer doesn't care enough about them to ensure their
169
safety. Meanwhile, a safe, visually appealing and well-lit

environment can allow employees to focus exclusively on
performance without constantly worrying about how an accident
might boost their health care costs.
2.
Feedback, or Lack of it
If an employee is doing a good job and never hears from the

boss one way or another, he will eventually slow down as he never
feels appreciated. Feeling appreciated is a fundamental human
need. On the other hand, if an employee is not doing a good job, he
or she is also not going to be happy as most people have an innate
sense that something is just not quite right. Giving this employee
some help or guidance will put him or her back on the right track
and enhance morale through creating alignment with the needs of
the organization. Employee recognition programs or rewards for
completing difficult tasks can go a long way toward establishing
morale and keeping good employees.
3.
Work Load
If the employees are working under impossible deadlines

with workloads, this situation discourages the employees. It is
necessary to encourage the employees to come to you. Overload of
work badly affects on employees moral. In such a situation help
them to prioritise their workloads.
4.
Teamwork or Lack of it
Employees are happiest when working as a team, for the

most part. When teams are contributing and working well together,
then morale is high. When teams are dysfunctional, then there is a
problem. Detecting the team member who is causing problems for
the other team members is essential. Address these issues
individually if necessary.
5.
Employee Benefits
Employees are happy when they have security -- and

security means knowing that a major medical event in their families
will not financially wipe them out. Benefits such as medical
insurance, family leave, disability, etc. are all morale boosters as
170
they remove a degree of uncertainty from the employee's life, which

allows him or her to focus on work.
6.
Corporate Image
The reputation of the company is an important factor worth

mentioning here. Persons working in reputed organizations
experience feelings of pride and a spirit of loyalty.
Employees tend to have higher morale when working for a
company that is known outside of its walls as a "good" place to be.
Companies that donate to the community treat their employees well
and have high integrity fall into this category. It is tough to work for
a company that creates a product that erodes the public's health,
pollutes the environment or is being sued by former employees. It is
important to be a good citizen of the community in which your
business is established, and to conduct business with integrity.
7.
Quality of Supervision
Often cited as the most common reason for poor employee

morale, corporate leaders that lack effective communication skills
can be toxic to a business. Managers that don't encourage open
communication in the office never offer performance-related
feedback to their subordinates, and doesnt value diversity in the
workplace garner little respect from employees as their job
satisfaction levels drop. The actions of managers exert a strong
influence over the morale of the workforce Fair treatment; equitable
rewards and recognition for good work affect morale greatly.
Workers feel comfortable when they work under a sympathetic
caring leader in place of one who is authoritarian, dictatorial and
dominating.
8.
Co-workers
Poor attitude of co-workers influence others. Imagine

working with a person who talks about the negative points of an
organization all day long. Such a person can make each workday
an unpleasant experience for others. He can cause co-workers to
think negatively and even if they dont such an attitude is certainly
not a morale booster.
171
9.
The nature of work
Dull, monotonous repetitive work affects employees morale

adversely. On the other hand if an employee is asked to do
something interesting and challenging his morale may be high.
10.
The employees
How the employees look at him (the self-concept) also

influences morale greatly. For example, individuals who lack selfconfidence or who suffer from poor physical or mental health
frequently develop morale problems. Further, how the employees
personal needs are satisfied can significantly influence their morale.
Salary fringe benefits, DA rates, allowances may affect employees
morale in a positive or negative manner, when they compare
themselves with others doing similar jobs. Employees can become
disgruntled when they feel that their pay and benefits are not in line
with current industry rates or are not in keeping with rising prices.
13.5
MEASUREMENT AND IMPROVEMENT OF EMPLOYEES

MORAL
13.5.1 HOW TO IMPROVE EMPLOYEE MORALE

Factors that can contribute to positive employee morale are
not limited. Almost anything you do that contributes to a positive
work environment for employees helps to build employee morale.
treating employees with respect,
providing regular employee recognition,
empowering employees,
offering open and regular communication about factors

important to employees,
providing feedback and coaching,
offering above industry-average benefits and compensation,
providing employee perks and company activities, and
Positively managing employees within a success framework

of goals, measurements, and clear expectations.
172
When you take care has been taken in the above points
employee morale can remain high even in turbulent, uncertain
times.
13.5.2 STEPS TO IMPROVING MORALE
Entrepreneurs may have some ideas why morale is poor,
and may call in external consultants to help solve the problem.
Following are the ways which can be used for improving the
employees moral.
1.
Asking the employee directly
Obtaining information directly from the person who's

experiencing the poor morale can often be an important key to
solving this mystery. Additionally, these people will receive a sense
of pride and worth that their boss asked them for their input.
2.
Show concern
If the employee believes the boss doesn't care about the

task at hand or doesn't care about the employee, then the
employee probably won't care about the task, the employer or the
company. For improving the moral start by using the person's
name. Large or small, every business should have names on
desks, work stations or cubicles to show that a real person with
worth works there, not just a machine. Ask their opinion whenever
an opportunity arises rather than always telling them what to do or
the way to do it. This allows employees to add their own creative
thoughts to the work process, which then can lead to more of a
feeling of ownership. Finally, ask how they are. Without wanting to
know deeply personal data, the boss can easily show an interest in
the individual worker.
3.
Provide appropriate feedback.
The employee needs to know two crucial variables in this

morale equation: what's expected of them and how well they're
doing. Without this crucial information, the employee will inevitably
overwork or under work, think of their work as above average or
below average, and may stray from achieving the supervisor's goal.
In any case, the consequences may be dire and not what the
supervisor would want.
173
4.
Create goals
An employee without a clear understanding of the goals or

without a sense of how their work fits into the overall goal of the
unit, department or section, can easily waste time on tasks that
aren't consistent with the boss's objectives. The result is
squandered time and resources, plus a reprimanded employee who
doesn't understand why the boss disapproves of their efforts. Once
the supervisor can sit with the employee and explain in clear,
action-oriented terms what the task at hand is about, the employee
will feel better and perform more effectively. If given a chance to
moderate, modify or discuss the goals and reach a mutually
acceptable conclusion, the employee's performance will usually
skyrocket. Morale will definitely improve as a result.
5.
Offer recognition of the employee's efforts.
Phrases like "Nice job," "Well done," "Marked improvement,"

takes a few seconds to say but communicate to the employee that
you care about the job and about them, and that you recognize an
improvement in productivity. Also, employees can be given
performance awards or have their name mentioned at staff
meetings, posted on a bulletin boards or in employee interoffice email to say that someone did a noteworthy job. All of these simple
modes of pointing out individual, team or group behavior serve as
very strong methods of improving productivity, self-worth and
morale.
6.
Provide more challenging tasks
Another strategy for identifying the cause of poor morale and

turning it around is to determine if the work load is sufficient or too
pressured, challenging or boring, professionally satisfying or not. As
long as the current job isn't overly taxing providing more challenging
job to the employee increases his confidence. After completing the
job the employee will discover a sense of accomplishment, feel
increased self-worth, and be more productive. And as a result,
productivity and morale will increase.
7.
Promote people for their achievements
The next step, and one that often follows more challenging
tasks, is to promote people. When employees see that their boss
recognizes and rewards accomplishments, they'll be more satisfied,
174
and their self-esteem and prestige will increase along with the
amount in their paycheck. This method of attacking poor morale
can be extremely productive for all parties involved.
13.6 SUMMARY
Employee morale describes the overall outlook, attitude,
satisfaction, and confidence that employees feel at work. When
employees are positive about their work environment and believe
that they can meet their most important needs at work, employee
morale is positive or high. If employees are negative and unhappy
about their workplace and feel unappreciated and as if they cannot
satisfy their goals and needs, employee morale is negative or low.
The main features of Moral are : Morale is a group
phenomenon, It directly effect on productivity, it can be high or low,
it can generate long term benefits, it can be related to an individual
or of a group, it facilitates the attainment of organisational goals, it
can be measured by conducting morale surveys and exit interviews.
Employees Moral increases productivity, decreases labour
turnover, reduces accidents, reduces absenteeism, improves work
cultural and reduces supervision.
13.7 QUESTIONS
1.
Discuss the factors influencing moral of employees.
2.
Explain the nature of morale.
3.
What is the importance of employee morale?
4.
Explain the steps in improving moral.
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14
COMMUNICATION
PARTI
CONTENTS :
14.0 Objectives
14.1 Introduction
14.2 Definition and Meaning of Communication
14.3 Communication Process
14.4 Objectives/Purposes of Communication
14.5 Formal and Informal Communication
14.6 Verbal / Oral Communication and Written Communication.
14.6.1 Oral Communication
14.6.2 Written Communication
14.6.3 Distinguish Between Oral and Written Communication
14.6 Vertical And Horizontal Communication
14.6.1 Vertical Communication
14.6.2 Horizontal/ Lateral Communication
14.6.3 Difference between Vertical Communication and
Horizontal Communication
14.7 Non -Verbal Communication
14.8.2 Ingredients of Non-Verbal Communication
14.8 Summary
14.9 Questions
14.0 OBJECTIVES
After studying the unit the students will be able to:
Define the term communication.
Explain the process of communication
Discuss the objectives of communication.
Elaborate the types of communication.
176
14.1 INTRODUCTION
In order to carry out various managerial functions effective
communication is very essential. It is the base of leadership.
Interaction or interpersonal relationships is needed to be kept
among the people within the organization for effective
communication. It is essential element of various organizational
functions. Good communication within the organization or with
external people through public relations creates image of an
organization. Communication channels are required at every stage
of managerial functions when carried out. Communication helps in
to build formal as well as informal relationships among the
employees. So in this part of chapter we shall discuss the
communication meaning, process, objectives, and modes of
communication in detail.
14.2 DEFINITION AND MEANING OF

COMMUNICATION
The word communication has been derived from the Latin
word communis which means common. Communication involves
the concepts of transfer, meaning and information. It is used as a
process which involves various elements through which two or
more persons share meanings among them. Something,.
According to Newstrom and Davis
Communication is the transfer of information from one
person to another person. It is way of reaching others by
transmitting ideas, facts, thoughts, feelings and values
According to Koontz and ODonnell
Communication is the exchange of information at least
between two persons with a view to create an understanding in the
mind of other, whether or not it gives rise to conflict.
According to Birvenu
Communication is the process of transmitting feelings,
attitudes, facts, beliefs and ideas between living beings.
Thus, communication is the process through which two or
more persons come to exchange ideas and understanding among
177
themselves. This
communication:
definition
involves
three
aspects
in
1.
There is something which is transmitted such as information,

ideas, feelings, etc. which is the subject matter of
communication.
2.
In order that the process of communication is completed, two

parties are involved: the sender of the subject matter of
communication and its receiver.
3.
There is an element of understanding in communication.

Sharing of understanding it in the same sense in which the
sender of message wants him to understand. Thus,
communication involves something more than mere
transmission of message or transmission and physical
receipt thereof.
14.3 COMMUNICATION PROCESS

Communication has been defined as a process. The term
process refers to identifiable flow of information through interrelated
stages of analysis directed towards the achievement of an
objective. There are four elements in the process action, a
continuous change in time, advancement or progress over time,
and a goal or result. The communication being a social process is a
dynamic one and thus cannot be studied in sort of stop action.
(1)
Idea is born in the
Mind of sender
(2) Sender
Sender (6)
178
Encodes
decodes
(3) Receiver
Receiver (5)
Decodes
Encodes
(4)
Receiver is
(Feedback)
Ready with response
FACTORS OF COMMUNICATION
Following are the main factors included in the process of
communication:
1.
Sender :
Sender of the message is the person who intends to make

contact with the objective of passing the message to other person.
Communication starts with sender. He encodes the message
through verbal or non verbal communication. In organization
context, sender may be a superior, a subordinates the direction of
flow of communication in an organization.
2.
Message :
This is the subject matter of the communication which is intended

to be passed to the receiver from the sender. The message may be
in the form of ideas, opinions, feelings, views, suggestions, orders
etc.
3.
Encoding :
Since the subject matter of communication is abstract and

intangible its transmission requires the use of certain symbols such
as words, pictures, gestures, etc. the process of converting the
message into communication symbols is known as encoding.
179
4.
Channel :
Message encoding into symbols is transmitted by the sender

through a channel like written form, personal contact, phone call,
etc. depending on the situation of two parties sender and
receiver.
5.
Receiver :
Receiver is the person to whom the symbols are transmitted.

He is the person who receives the message. He decodes the
message. Like sender he may be a superior, subordinate, peer or
any other person in the organization.
6.
Decoding :
Decoding is the reverse of encoding. The receiver receives

the subject matter of communication in the form of communication
symbols in which the sender has encoding his message. The
receiver decodes these symbols into message.
7.
Feedback :
It is the response or reply that the receiver gives to assure

the sender that he has understood the message.
14.4 OBJECTIVES/PURPOSES OF COMMUNICATION

The basic aim purpose of communication is to obtain
response or feedback with understanding. It is said that the receiver
of the message should receive and understand the message
correctly and should give response as expected by the sender.
1.
INFORMATION :
Information is nothing but any knowledge about a fact or a

situation. It includes news, views and statement. Sources of
information are internal as well external. Channels used for this
communication are Upward, Downward, and Horizontal etc.
Communication of information is good from the point of view of
sender, receiver and mainly for business entities.
2.
ADVICE :
180
Advice means to give opinion or recommendation about how

to do, what to do or how to behave in a particular situation. Advice
is an opinion given by the sender to the receiver urging him to do or
not to do something. In order to run the business smoothly and
effectively. Advice is taken from experienced people, experts and it
helpful in problem solving.
3.
ORDER :
Order is an oral or written instruction or message from

seniors to juniors to do a particular activity or to avoid or to change
an activity. It only uses downward channel for communication it is
discipline oriented. If orders are ignored, disobeyed, there will be no
smooth functioning of the business units.
4.
SUGGESTION :
It is a plan or a proposal put before the receiver for his/her

consideration. Suggestion can be downward upward or horizontal.
Besides, suggestions are better than advice and order. If
suggestions are given and not carried out there is no feeling of
insult. A suggestion is more positive and constructive than
complaints. At many places, we find Suggestion box rather than
Complaint Box because suggestions are polite. It is the good force
behind communication.
5.
PERSUASION :
In the present democratic set up nobody can deal with force

or compulsion. We have to get our work done by love, affection and
discussion. Persuasion is requesting, appealing the receiver to do a
particular activity. Upward, Downward and Horizontal channels are
used for communication. In modern business persuasion is
important. It is needed to change the mind.
6.
EDUCATION
Education means knowledge, information, and message,

systematic instructions, and training to run business activity or to
improve it. Downward and Horizontal communication is used here.
The purpose of education is to widen the knowledge, lecture,
meetings, seminars, conferences.
181
7.
WARNING
A warning is given to inform the receiver in advance about

unpleasant result and possible danger. Warning is generally
downward but it can be horizontal and now it can be even up ward
(subordinates warn their seniors). It is the result of avoidance or
insincere working from the side of subordinates.
8.
MOTIVATION :
Motivation is given to the employees in the form of

appreciation, praising to the employees. It plays an important role in
increasing efficiency of employees. Subordinates may be given
appreciation letter or certificate for his work done.
CHECK YOUR PROGRESS
1.
Define communication.
2.
Enlist the four elements of the process of communication.
3.
Why communication is done?
4.
Enlist the points of objectives of communication.
5.
Fill in the blanks:

a.
Communication starts with the -------------------------.
b.
-------------------------encodes the message

verbal or non verbal communication.
c.
The subject matter of the communication means the

--------------------.
d.
The process of converting the message into -------------------------- is known as encoding.
e.
-----------------------is the person who receives the

message.
f.
Receiver ------------------------ the message.
g.
Converting the symbols into message means -------------------------.
through
182
14.5 FORMAL AND INFORMAL COMMUNICAITON
INFORMAL
COMMUNICATION.
FORMAL COMMUNICATION
(1)
It
exists
in
formal It is the result of social
interactions
among
the
organizational relationships.
people.
(2)
The
channels
of Channels of communication
communication are prescribed depend
on
individuals
and specific
relationships.
(3)
It is less flexible and rigid.
It is quite flexible.
(4)
Due to the formal nature, Message is processed fast.
message is process slow.
(5)
Message
distorted.
cannot
be Messages are often distorted
14.6 VERBAL / ORAL COMMUNICATION

WRITTEN COMMUNICATION.
AND
14.6.1 ORAL COMMUNICATION :

It is also called as verbal communication. When we
communicate with the use of words it is oral communication. This is
the common communication way by words or language. In oral
communication, both the parties to the communication process
sender and receiver exchange their ideas through oral words
either in face to face communication or through electronic devices
like telephone etc. so the conversation, meetings, conferences,
interviews, speeches, public address, announcements etc are the
examples of oral communication.
MERITS OR ADVANTAGES
1.
This communication has cost saving advantages because no

stationary is needed for this type of communication. So the
just the conversation makes message transmit.
183
2.
No formalities are need in such kind of communication

because after a small talk the speakers become friendly and
take into consideration feelings.
3.
It is more time saving because it is spoken with fluent talk. It

needs not to write or correct all the time.
4.
In his type of communication, use of tone, pitch and voices

can be done well to put the message effectively. It is mostly
observed during speeches given by eminent speakers.
5.
It makes communication more secret because nothing is

written.
6.
It can be used in individual talk as well with groups.
7.
It is natural because here ideas and thoughts are

spontaneous.
DEMERITS OF ORAL COMMUNICATION:
1.
Being in verbal form it lacks authenticity.
2.
It is not useful for lengthy communication of an official or

legal nature.
3.
It can be misunderstood easily as one the words are spoken

those cannot be take back to correct.
4.
This communication is really effective if the speakers are

excellent with good communication qualities.
5.
Oral messages cannot be kept for long time. They cannot be

retained or remembered as it is for long time.
6.
If telephones or mobiles are not available then this

communication is of no use for distance talk.
7.
It lacks legal importance as nothing spoken is recorded or

put in writing.
14.6.2 WRITTEN COMMUNICATION

It is also as type of verbal communication. It is expressed in
a visible signs or alphabets having meaning. It has been in use
since long back. Written communication is in the form of letters,
circulates, notes, manuals, , magazines etc. in the organizational
context. Besides, there may be diaries, suggestions systems etc.
184
where written communication is used. Like oral communication a

part of the total communication of an organization is in written form.
MERITS OF WRITTEN COMMUNICATION
1.
Authenticity :
Written communication is authentic as compared to oral

communication. Whether it is in the forms orders or organizational
manuals. When any thing comes in writing, people tend to take it
more seriously and it becomes binding on them.
2.
Legal importance :
Written communication provides proof for future reference

and this is the biggest merit of written communication. In the
organizational context, many records are maintained for future
reference such as policies, procedures, rules, performance records,
employee information, and so on. All such records are in written
form.
3.
Good for long distances :
Written communication is useful in sending and receiving

messages at distance places where the contact may not be
possible through alternative sources. Thus, it saves time and cost
to that extent. Presently, fax system and internet has provided
facilities to send written messages to distant places.
DEMERITS OF WRITTEN COMMUNICATION :
1.
Quite expensive :
Written communication is a costly affair as compared to oral

communication. Cost involved is both in terms of time and money.
In drafting written communication, much more time is involved
because it has to be drafted more precisely. Even while writing
letters care has to be taken of words, respect, you attitude etc. so it
is more time consuming, brain striking and costly also.
2.
More formalized :
185
Written communication becomes a formal means. While

some degree of formalization is essential, its overemphasis
hampers efficiency. In bureaucratic organizations too much
emphasis is put on formal written communication. Care is needed
to be taken of every part of letter while drafting it.
3.
Lack of secrecy :
Sometimes communication requires secrecy particularly

when information is sensitive one. In the written form, the message
comes in record have been cyber crimes in the form of decoding
the confidential information of other transmitted through internet
which is in written form. Written communication never can keep
secrecy.
14.6.2 DISTINGUISH
COMMUNICATION
BETWEEN
Point Oral communication
ORAL
AND
WRITTEN
Written
communication
1.
It
does
not
provide It provides
permanent records.
records
2.
Mood,
emotions, Here not scope found for
expressions can easily be mood, expressions, and
communicate with words
emotions to communicate.
3.
Language is changeable Language

cannot
be
and fluent
changes and need care.
4.
It is more casual and even It is more accurate

be inaccurate.
5.
Responsibilities cannot be Responsibilities

fixed
fixed
6.
It is mostly person to It is easy to circulate due

person or with groups so to in written form
cannot circulated unless it
is recorded.
7.
It is quick
communication
8.
It is good for semi-literate It
form
permanent
can
be
of It is very slow and time

consuming
is
only
suitable
for
186
or illiterate people.
9.
literate people.
It is cannot be kept for It is useful

references for future
references.
for
future
14.6 VERTICAL AND HORIZONTAL

COMMUNICATION
14.6.1 VERTICAL COMMUNICATION :
Vertical communication is also known as Up and down
communication. In order to keep interaction between top and lower
level management this type of communication is very essential. It
helps top authorities to send or pass the instruction, decisions, and
information to the lower level management and also receives
periodic information from subordinates accordingly. Dominance of
either Up or Down communication creates problem within the
organization. It is also known as two way communication revealing
its purpose itself.
Every organization has scalar of chain indicating line of
authority so line of communication is also needed to be created. For
this vertical communication plays an important role. The purpose of
Upward and downward communication is explain below
1.
DOWNWARD COMMUNICATION
When directions, instructions, orders, are flown downward

form superiors to the subordinates, it is known as downward
communication. This type of communication is good in the
organization where the lines of authority are clearly demarcated.
The vehicles of this type of communication are Notices, posters,
reports, manuals, handbooks, circulars, letters, reports, memos,
phone talks, meetings, and counseling, bulletins, Annual General
Meetings.
PURPOSE OF DOWNWARD COMMUNICATION
The main purpose of downward communication is :

1.
To give directions or instruction to the subordinates or lower

level management.
2.
To express appreciation of work if adorable
187
3.
To give background information of a job
4.
To explain the policies framed and its implementation

procedure
5.
To give feedback to employees about their work or

performance.
6.
To issue warnings or memo if subordinates are found with

insincere in work
PROBLEMS IN DOWNWARD COMMUNICATION
Downward communication faces the following problems:

1.
It is time consuming and takes much time to reach to the

lower level causing in having lost much of importance of sent
information.
2.
There are more chances of loss of information passed

downward.
3.
If superior talk or go on sending information all the time, it

may create a problem of over communication
4.
If superior talks less or interacts seldom, the problem of

under communication arises.
5.
Receivers of message may resist and sent messages having

heard only for the sake of such a information sent by
superiors. It may cause miscommunication.
2.
UPWARD COMMUNICATION:
When information is given to superiors by their subordinates

it is known as Upward communication. It is most essential
communication as without which lower level of management cannot
convey message to the top level management. Survival of
organization depends upon such a communication. The vehicles of
upward communication are Report submitted by subordinates,
departmental gathering, exit interviews(if any subordinates leaves
the organization), counseling, suggestion given by employees,
complaints made if any, Open door policy(where subordinates can
give put their grievances openly) etc.
PURPOSE OF UPWRD COMMUNICATION
188
The main purpose of upward communication is :

1.
To receives suggestions and complaints if any by the

subordinates.
2.
To get feedback or to know how workers feel about their jobs

and job environment.
3.
To know workers problems for giving guidance
4.
To know the work progress and the task completed by

subordinates.
PROBLEMS IN UPWARD COMMUNICATION
Upward communication has the following problems :

1.
Most of the time due to fear of authority subordinates do not

use this communication.
2.
Workers avoid using this communication if they have fear

admitting their failure in any work given or assigned to them.
3.
Due to the attitude of superiors and their ego status,

subordinates scare of this type of communication.
4.
Inferiority complex among the working class or lower level

workers always does not make this communication effective.
5.
Due to stress of work, workers are most of the time

inattentive of this type of communication.
14.6.2 HORIZONTAL/ LATERAL COMMUNICATION

Lateral communication involves communication among
persons
who
do
not stand in hierarchical relation to one another. Communication
that
takes
place
at same levels of hierarchy in an organization is called lateral
communication,
i.e., communication between peers, between managers at same
levels
or
between
any horizontally equivalent organizational members. It has been
assumed
that
lateral communication at the worker level is less problematic, at
least
within
189
a functional area. Thus it can be stated that exchange of

information
between
same level employees of different departments in horizontal
communication.
According to R. Pal and Korlahalli,
Communication between department or people on the same
level in the managerial hierarchy of an organization may be
termed as horizontal or lateral communication.
ADVANTAGES OF HORIZONTAL COMMUNICATION
The advantages of horizontal communication are as

follows:
1.
It is time saving.
2.
It facilitates co-operation among team members.
3.
It provides emotional
organizational members
4.
It helps in solving various organizational problems.
5.
It is a means of information sharing
6.
It can also be used for resolving conflicts of a department

with other department or conflicts within a department.
7.
It ensures better understanding, accordingly employees of

different division able to perform their job more efficiently, as
a result, productivity increased
8.
Direct communication by breaking the vertical channel

strengthens the bondage between employees of different
departments which helps to boost up co-ordination.
9.
Decisions are made by top management but they are

executed by the lower level employees. When lower level
employees allowed communicating each other through
horizontal communication, it helps to realize the policy and
ensures better implementation of decision.
10.
Better understanding and cordial environment also boost-up

the morale of the employees.
and
social
assistance
to
the
190
DISADVANTAGES OF HORIZONTAL COMMUNICATION
Disadvantages of horizontal communication are as follows:

1.
Sometimes too much horizontal communication creates

problem for the management and controlling may become
difficult as the horizontal communication increases.
2.
By passing the vertical channel horizontal communication

allows the employees to communicate freely but sometimes
it leads to personal conflict.
3.
Communication in addition to vertical instruction may delay

the implementation of decision.
4.
As strict rules are not followed organizational discipline also

can be hampered in horizontal communication.
14.6.3 DIFFERENCE BETWEEN VERTICAL COMMUNICATION

AND HORIZONTAL COMUNIACTION
Vertical communication
1.
When
information
is
exchanged between superiors
and
subordinates
of
an
organization then it is known as
vertical communication.
Horizontal communication
Communication that takes place
at same levels of hierarchy in an
organization is called lateral
communication
2.
Vertical communication is It can use both formal and
more formal than horizontal informal
channels
of
communication.
communication.
3.
As it follows the formal As both formal and informal
chain it takes more time to channels
are
followed,
information can be exchanged
transmit messages.
faster
than
vertical
communication.
4.
It enhances the co- Co-ordination
between
the
ordination between superiors employees
of
different
departments increased through
and subordinates.
horizontal communication.
5.
In this case secrecy can In
case
of
horizontal
communication maintaining the
191
be maintained.
secrecy is difficult.
6.
It may use both written This type of communication
and oral media, but basically more dependent on the oral
media.
uses the written media.
CHECK OUT YOUR PROGRESS
1.
Which communication is good Oral or Written? Explain.
2.
Which communication is good for the interest of an

organization Formal or Informal? Explain.
3.
Bring out difference between Upward and Downward

communication.
4.

a.
Oral communication
b.
Written communication
c.
Vertical Communication
d.
Downward communication
e.
Upward communication
f.
14.7 NON -VERBAL COMMUNICATION

None verbal communication is as communication by means
of elements and behavior that are not coded into words. This
communication is important because most people believe that the
way you speak is more important than what you speak. This
communication is not found in verbal or written form. But it supports
verbal communication to be strong and effective. This type
communication always accompanies with oral communication. Most
of the time it is expressed by everyone by their talk and behavior.
192
According to Mary Munter,

Any message you give other than the literal interpretation of
your words- the way to move, speak, appear.
14.7.2 INGREDIENTS OF NON-VERBAL COMMUNICATION
The undercover language of non-verbal communications has
at least nine ingredients. They are as follow:
1.
Facial expressions :
This are the expressions originated from the human

existence. People while speaking use facial expression to convey
their message in better way. It may of eye-brows, eye rotations etc.
dancers and actors are good in using these expressions. With the
help of these expressions one can show anger, happiness,
surprise, fear, sadness, excitement, disgust etc.
2.
Gestures :
Gestures also convey messages fast. Here movement of

hands, heads and body are done for indicating ideas or feelings.
Dumb and deaf people use this type of communication. Examples
of this type of communication are raising hands for initiative,
appealing, waving hands saying goodbye, shrugging shoulders for
expressing indifferences, slapping, eating etc. the only condition for
gesture communication is that it should be perceived properly or it
may create miscommunication.
3.
Body language or kinesics :
The shape of our body also conveys messages telling our

life style. By looking at the person and his body language you can
easily tell about the life he or she lives and make perception. In fact
gesture is a part of body language only. The study of body
language is done in physiognomy where from body language
character is traced.
4.
Silence :
Ironical it seems but it is true that one can communicate with

silence also. In fact it is found more effective than words. Keeping
silence even while talking conveys particular message to us. But
silence may show patience or disinterest of in-differentness.
193
5.
Signs, Symbols and Signals :
They are very important and effective means of

communication when common language is absent between or
among the communicators. Her various signs or symbols are used
to convey the message. For example music notations, roadway
signs and symbols, pilots and military men to have their own signs
to communicate.
6.
Color :
They are also used to convey direct messages. Traffic lights

turn red and green speak to us. In offices and factors various colors
are used as a sign of energy or conveying particular message.
There are chances of miscommunication to due to different
perceptions. E.g. Red color is used to show life, passion, liberty,
energy but at the same time it is known for death, devil, danger, war
etc.
7.
Graphs, Maps, Charts etc.
They are other type of visual non verbal communication. The

chief advantage of this mode of communication is that information
can be gathered at a glance. Just a visual sight of it speaks about
it.
14.8 SUMMARY
Communication involves the concepts of transfer, meaning
and information. Communication is a process. The factors included
in this process are: Sender, Message, Encoding, Channel,
Receiver, Decoding and Feedback.
The main objectives of communication are: Information,
Advice, Order, Suggestion, Persuasion, Education, Warning, and
Motivation.
There are various types of communication such as Formal
and Informal communication, Written and Oral communication,
Vertical and Horizontal communication, Verbal and Non-verbal
communication.
The undercover language of non-verbal communications has
at least nine ingredients. They are: facial expression, eye contact,
194
tone of voice, physical touch, appearance, body posture,. Proximity,

physical gestures, head position.
14.10 QUESTIONS
1.
What is communication?
communication in brief.
Explain
2.
What are the objectives of communication?
3.
Distinguish between formal and informal communication.
4.
What are the merits and demerits of Oral communication?
5.
Explain the advantages

communication.
6.
Distinguish between Oral and Written communication.
7.
Explain the ingredients of Non-verbal communication.
8.
Write short notes on the following :
and
a.
Formal communication
b.
Informal communication
c.
Vertical Communication
d.
Downward communication
e.
Upward communication
f.
Written communication
g.
h.
Nonverbal communication
the
limitations
process
of
of
written
195
15
COMMUNICATION
PART II
CONTENTS :
15.0
15.1
15.2
15.3
15.4
15.5
15.6
15.7
Objectives
Introduction
Media and Mode of Communication
Informal Communication or Grapevine Communication
15.3.1 Meaning
15.3.3 Nature of Informal or Grapevine Communication:
Barriers in Communication
Remedies to overcome Barriers of Communication or Step
For Making Communication Effective
Summary
Questions
15.0 OBJECTIVES
After studying the unit the students will be able to :
Explain the mode of communication.
Define informal communication.
Discuss the nature of Informal communication.
Elaborate the Barriers in communication.
Suggest the remedies to overcome the communication

barriers.
15.1 INTRODUCTION
In the previous chapter we learnt what communication is and
why it is needed. In this part of the same chapter we shall study
about the media and various modes used for communication,
nature of informal or Grapevine communication, common barriers to
communication and the ways for effective communication.
196
15.2 MEDIA AND MODE OF COMMUNICATION

There are various modes and medias of communication in
use since ancient times. Mail or post services are still in use in
contemporary period of literature where Telex, Fax, Email, SMS like
advance ways are used for communication. Following are the
modes of communication explained briefly.
1.
Inward mail :
These are the mails receive from out. It is handled by a

person who is given authority of the same. All are the official letters,
parcels, and covers. Most of the time the mail is sorted out content
wise as inquiries, complaints, credit advices etc. Entry of mail
received in done in Special register or General Inward Register.
Mails are filed after receiving the initials of officials.
2.
Outward mail :
It includes all the mails sent outside. Reference number is

given accordingly to the filing system of the office. It is maintained
by dispatch clerk whose responsibility it is to see that letters are
sent by post or hand delivery. Envelope is used whi8le sending
confidential statements. All mails should be signed properly having
instructions as Registered A.D, under certificate of posting etc.
3.
Telex :
It is conventional mode of communication. Telex is the name

given to the Tele-printer device run by the postal department. Telex
service provides automatic communication through printed word,
between subscribers in towns and cities provide with telex
exchange. There is telex code too. Many companies purchase
Tele-printers, and teletypewriters for internal communication.
Telex has many advantages. Written communication can be
sent by one subscriber to another by direct dialing, if receiver is not
available then message can be left on the telephone machine, it is
the quicker means of communication.
4.
Telephone :
It is the electronic mode of communication in oral form. It is

the instrument for reproducing speech at a distance through the
197
medium of electric waves. It is the most used medium of

communication. Land lines phones are still in used along with
cellular phones worldwide. The only advantage of cellular phone is
that it has mobility. Long distance calls are transmitted via satellite.
This is the most time saving, convenient, flexible mode of
communication.
5.
Computers :
It has become integral part of every organization today. They

use it for communication purpose and office use. Due to computer
messages can be easily sent by E-mail anywhere in the world in a
fraction of second. Electronic mail is a message sent electronically
over a computer network which is connected with the help of
cables, telephone wires or satellites. The only condition for
successfulness of this mode of communication is that there should
be computer network with internet communication.
6.
E-commerce :
It is a new trend in business organization. With the help of

internet Business to Business (B2B), Business to Consumer (B2C)
can be carried easily. It is also known as E-business or online
trade. With the help this orders can be put easily, queries can be
made too quickly. It is good for widening markets, lowering costs,
increasing competitions.
7.
Fax :
It is a machine which sends pictures, reproduction of

documents and handwriting or any other printed matter by wire or
radio rapidly. It is used widely used today by business houses,
banks, government and newspaper offices to send copies and
reproductions of pictures and documents or letters to near distant
places. The main advantage of this is that it exactly reproduces
printed material and pictures within a moment. It should be not be
used for sending bio-data or application of job (personal use).
8.
Teleconferencing :
It is the most convenient way of communication.

Businessmen should not travel to meet people but by sitting homes
they can communicate easily. Audio-conferencing among two or
three people can be used for discussing matters over a telephone.
198
9.
Intranet :
It is same like internet but only difference is that it is used

within an organization. It has web servers that are only available to
employees within the organization and access to public internet is
denied or not allowed. It is used for variety of purposes. It has
access for companys database.
15.3 INFORMAL COMMUNICATION OR GRAPEVINE

COMMUNICATION
15.3.1 MEANING
The informal channel of communication, also known as
grapevine. It is the social communication exists in every informal
organization. It is not any official communication but a result of
interpersonal relationships exists among employees. This
communication is also known as rumour. Today, the term applies to
all informal communication. While formal communication exists to
meet the official needs of the organization, informal communication
is the method by which people carry on social, non programmed
activities within the formal boundaries of the system. Grapevine is
more effective when:
When there
organization.
is
management
change
within
the
People are physically located close enough to communicate

with one another
When employees have trust or are interested in gossiping.
15.3.2 GRAPEVINE NETWORK

Grapevine follows different types of network. Usually, there
are four types of pattern through which grapevine travels. These
are single strand, gossip, probability and cluster.
199
In single strand network, the individual communication with other

individuals though intervening persons.
In gossip network, the individual speaks in group through chatting.
In probability network the individual communicates randomly with
individuals recording to the law of probability.
In cluster network, the individual communicates with only those
individuals whom he trusts. So cluster is quite better form of
communication.
15.3.3 NATURE
OF
INFORMAL
COMMUNICATION:
OR
GRAPEVINE
It is a kind of horizontal communication required and consists

of complex network of informal contacts on the job place.
It new spread in grapevine should be fresh
News should be concerned to their job related issues like

salaries, incremental issues, transfer, promotion etc.
Grapevine should never be ignored as it may bring bad

effect too.
It is very fast and has a rapid flow.
It can never be cut or controlled but can only be influenced.
Grapevine should be handled by manager skillfully.
200
CHECK YOUR PROGRESS

1.
Name the most

communication.
flexible
and
convenient
modes
of
2.
How informal or Grapevine communication is harmful for

organization?
3.
Enlist the different types of networks followed by Grapevine.
4.
Draw the figure of Informal Communication network.
5.
Fill in the blanks:

a.
---------------- are the mails received from out.
b.
--------------------- includes all the mails sent outside.
c.
----------------- is conventional mode of communication.
d.
Telex is the name given to the ---------------- device run

by the postal department.
e.
Telex service provides automatic communication

through -----------------.
f.
Telephone
is
the
---------------------mode
communication in --------- form.
g.
E- Commerce is also known as ----------------------- or ------------------ trade.
h.
Through
-----------------------------Businessmen
communicate easily by sitting home or office.
of
can
15.4 BARRIERS IN COMMUNICATION

Barriers in the communication are common and they occur
all the time due to many factors. The problem of communication
arises because there are various obstacles which may entirely
prevent a communication, filter part of it out, or give it incorrect
meaning. These obstacles are known as communication barriers.
These barriers may operate on organizational communication as
well as in non organizational communication.
201
1.
SEMANTIC BARRIERS
The language, words, symbols, and expressions used in the

communication may distract attention from the meaning of the
message. Also people may interpret the same massage in different
ways.
Symbols with Different Meanings :
Communication symbols usually have a variety of meanings,

and we have to choose one meaning from many. For Example, the
Hindi word KaKa means uncle but in Malayalam it is referred for
Crow. Similarly, non- verbal symbols may also convey different
meanings to different persons.
Badly Expressed Message :
Lack of clarity and precision in a message makes it badly

expressed. Poorly chosen and empty words and phrases, careless
omission. Numbering repetition, jargons, failure to clarify
implications are some common faults found in this case.
Faulty Translation :
Every manager receives various types of communication

from superiors, peers, subordinates and he must translate
information destined for subordinates, peers and superiors into
language suitable to each. If linguistic ability is lacked here. It
creates a problem of communication.
Specialists Language :
It is often found that technical personnel and special groups

tend to develop a special, peculiar and technical language of their
own. This increases their isolation from others and builds a
communication barrier. It is beyond the understanding of others
being unused.
2.
EMOTIONAL OR PSYCHOLOGICAL BARRIERS
Emotional or psychological factors are the prime barriers in

interpersonal communication. The meaning ascribed to a message
depends upon the emotional or psychological status of both the
parties involved.
202
Inattention :
The preoccupied mind of a receiver and the resultant non

listening is one of the major chronic psychological barriers. They
are not interested so they do not attend. It is a common
phenomenon that people simply fail to react to bulletins, notices,
minutes and reports.
Loss by Transmission and Poor Retention :
When communication passes through various levels in the

organization, successive transmission of the same message are
decreasingly accurate. It is true that when the message is passed
from various levels the message get lost its content or importance.
Because retention power is less.
Undue Reliance on the written word :
There are people who give importance to the words and not
to the oral words. Here the barrier takes place. People want the
things in writing to follow.
Communicator distrust :
If the listeners have prejudice about the speaker and do not

have trust on them. They may not be attentive and so barrier of
communication takes place.
3.
ORGANIZATION BARRIERS
An organization has too many levels due to which the free

flow of communication is restricted and delayed in its journey.
Organizational Policy :
The general organizational policy regarding communication

acts as an overall guideline to everyone in the organization
regarding how he is normally expected to behave in this matter.
Policy is always in writing.
Organizational Rules and Regulation :
Organizational rules and regulations affect the flow of

communication by prescribing the subject matters to be
203
communicated and also the channel through which these are to be

communicated.
Status relationships :
The placing of people in superior / subordinate capacity in

formal organization structure also blocks the flow of communication
and more particularly in upward direction.
Complexity in organization structure :
In an organization where there are number managerial

levels, communication gets delayed. Maximum the levels, more
chances of loss of messages.
4.
PERSONAL BARRIERS :
The following are the personal barriers from the side of boss
and subordinates. These barriers are the outcome of their attitude,
nature and personality.
Attitude of boss :
The attitudes of superiors towards communication in any

particular direction affect the flow of messages in different
directions
Insistence on proper channel :
One of the basic features of superiors exercising authority is

that they wish to remain in communication links and they do not any
type by passing in communication.
Lack of confidence in subordinates :
Superiors generally perceive, correct or otherwise that their

subordinates are less competent and not capable of doing work so
they do not pass information downward on the time. It causes
barrier to communication.
Ignoring communication :
Sometimes consciously and deliberately ignore the

communication from their subordinates to maintain their
204
importance. This works against the willingness of subordinates to

communicate.
Subordinates unwillingness to communicate :
Sometimes subordinates do not communicate upward

certain information because they are not willing to do so. It may be
due to inferiority complex.
15.5 REMEDIES TO OVERCOME BARRIERS OF

COMMUNICATION OR STEP FOR MAKING
COMMUNICATION EFFECTIVE
Following are some effective
communication within the organization.
1.
ways
of
improving
Clarity in idea :
The communicator should be quite clear about what he

wants to communicate. There may be the any subject matter of
communication and may include opinions attitude, feelings, views,
suggestions, orders etc.
2.
Purpose of communication :
Every communication has some purpose the basic purpose

of any communication being to get behavioral response from the
receiver of the communication. Why to communicate should be
clear.
3.
Interpersonal trust :
Interpersonal trust helps in good communication. For free

and good flow of communication, superiors and subordinates
should have trust on each other.
4.
Effective listening :
The receiver should have good listening skills to understand

message communicated to him. If he does not pay proper attention
to the message the communication proves ineffective.
205
5.
Consideration :
Communication is always good and healthy if the feelings

and emotions are taken into consideration of speaker. Empathy
should be there in the communication.
6.
Two way communication :
Communication is a two way traffic and this fact must be

realized in communication. Two ways communication brings two
minds together which is the basic core of any communication. It is
always found in the dialogue form.
7.
Supporting words with action :
Often it is said that action speaks louder than words. While

communicating the sender may use the action to emphasize a
point. This enhances the understanding as well as emphasizes the
important point in communication. So gestures, facial expressions
should also be good while communicating.
8.
Credibility in Communication :
One criterion for effective managerial communication is that

it has credibility or believability. Thus any communication which is
based on this trust and credibility will be followed by the
subordinates.
CHECK YOUR PROGRESS
1.
What are the common barriers of communication?
2.
How can communication be made effective and good?

Explain.
3.
Enlist the Semantic Barriers.
4.
What are the Psychological barriers?
15.6 SUMMARY
There are various modes and medias of communication are:
Inward mail, Outward mail, Telex, Telephone, Computers, ECommerce, Fax, Teleconferencing, and Intranet.
206
The informal channel of communication, also known as

grapevine. Usually, Grapevine follows four types of network
pattern through which grapevine travels. These are single strand,
gossip, probability and cluster.
Barriers in the communication are common and these are
divided into four main heads: Semantic barrier, Emotional barriers,
Organisational barriers and Personal barriers.
For improving communication there must be: Clarity in ideas,
Clarity in purpose of communication, Interpersonal trust, Effective
listening skills, Consideration, Two ways communication,
Supporting words with action, Credibility in Communication.
15.7 QUESTIONS
1.
Explain various media and modes of communication in

detail.
2.
What is Informal or Grapevine communication? Explain its

importance in brief
3.
What are the barriers of communication? Explain
4.
What are the ways of improving communication?
5.
Write short notes :

a.
Semantic barriers
b.
Organisational barriers
c.
Personal Barriers
d.
Psychological barriers
e.
Grapevine network
207
16
LEADERSHIP
CONTENTS :
16.0 Objectives
16.1 Introduction
16.2 Meaning and Definition
16.3 Functions of a Leader
16.4 Characteristics of Leadership
16.5 Traits/Qualities of Effective Leaders
16.6 Styles/Types of Leadership
16.7 Different Approaches to Leadership
13.8 Summary
13.9 Questions for Self-Assessment
16.0 OBJECTIVES
After studying this chapter students will be able to
Know the traits of effective leaders
Identify the different style of leadership
Discuss about the characteristics of Leadership.
Explain the Functions of Leadership.
Discuss the different approaches to leadership.
16.1 INTRODUCTION
It is generally said that an employee does not leave the
company if it is not by his willingness. Rather, he leaves
his supervisor or manager - This is one of the major reasons. This
gives rise to the concept of managerial philosophy and leadership
style. It should be seen that how good and lenient the supervisor is
and how good his demeanor is. More often than not, Bureaucratic
leadership fails to form a group of same interest, quite the opposite,
by virtue of participative leadership style, a social system is set up
with mutual interest by which an organization is led increasingly to
its accomplishments.
208
16.2 MEANING AND DEFINITION

Leadership is not the activity of an individual alone. In a large
scale organization it becomes a collective activity for no single
individual can meet the tremendous demands of working out the
whole organization. This has led to the view that leadership like
power is dispersed throughout the organization. No one person has
all the leadership functions. The functions of an organization are
divided and each individual in his respective position provides
leadership in so far as he contributes to the attainment of the group
goal and the maintenance of the group cohesiveness. The
leadership is provided at several levels in the hierarchy but at the
same time individual leadership is important. The leader is the
symbolic spokesman, the coordinator supreme, the important
participant in decisions as to goals, the primary change content and
the example to the organization.
Leading is one important function of management only next
to planning and organising. It is the liveliest element in the
management process. It initiates actins to translate the decisions
into concrete actions. Mangers have to lead their subordinates.
Leading, involves directing, influencing and motivating employees
to perform essential tasks.
Leadership is followership. A good leader leads but does not
push. Effective leadership can guide a group towards certain ideals
without exerting much force mangers who possess the quality of
guiding and directing the subordinates under inspired impulses can
be called business leaders.
Definitions of Leadership
a)
According to Koontz and O Donnell, Leadership is the

ability of a manager to induce subordinates to work with
confidence and zeal.
b)
According to George Terry, Leadership is the activity of

influencing people to strive for mutual objectives.
16.3 FUNCTIONS OF A LEADER

There is no unanimity of opinion as to what the functions of
the leadership are. This is because detailing of functions depends
on ones general concept of leadership. Leadership functions are
209
related to goal achievement and to the maintenance and

strengthening of the group.
Functions in the former category, instrumental to achieving
the goals of the group include making suggestions for action,
evaluating movement towards the goal, preventing activities
irrelevant to the goal and offering effective solutions for goal
achievement.
Functions in the second category include encouraging the
members, releasing tension that builds up and giving everyone a
chance to express himself. The main functions of leadership are to
contribute to the achievement of the group goal and to help hold the
group together. The leader by himself alone cannot achieve the
group goal and help it maintain its solidarity and strength.
Over and above these functions he has to perform some
other functions as a Leader. They are:
1.
To act as a representative of the work-group :
Leader is the link between the top management and the

work group. He has to communicate the problems and difficulties of
the work group to the management and the expectation of the
management to the work group. He act as a link between the top
management and the work group.
2.
To develop team spirit :
Creating a team spirit in between the members of the group

is one of the core functions of a leader. The leader has to develop
his work-group as a team. They should act as a team rather than
performing as individuals. It is the responsibility of a leader to
create a pleasant and friendly atmosphere at the place of work by
keeping in view the subordinates needs, potential abilities and
competence.
3.
To act as a counsellor of the people at work :
The leader is expected to guide and advise the concerned
subordinate when he is facing problems in connection with their
performance at the work. which may be technical or emotional.
There may be situation which is out of control, in such situation,
leader must stand behind the subordinate to encourage and
support and find a solution for the problem.
210
4.
Time management :
The leader must check that at different stages, the work is

completing according to the plan or not while ensuring the quality
and efficiency of the work. The timely completion of the individual
tasks will ensure the completion of the group work. Leader should
monitor and ensure the individual task at different stages is
accomplished as per the plan.
5.
Proper use of power :
Leader must be careful while exercising his power or

authority in relation to his subordinates. Leader must analyze the
situation before exercising his power. According to the situation he
may exercise different types of powers like reward power,
corrective power, coercive power, expert power, formal or informal
power etc., for the positive response from his subordinate.
1.
Secure effectiveness of group-effort :
To get the maximum contribution towards the achievement

of objectives the leader must delegate authority, ensure the
availability of the adequate resources, provide for a reward system
to improve the efficiency of capable workmen, invite participation of
employees in decision making and communicate necessary
information to the employees.
16.4 CHARACTERISTICS OF LEADERSHIP

Following are the main characteristics of Leadership:
1.
Leadership is the process of influencing the behaviour of others.
2.
Leadership uses non-coercive method to direct and coordinate the

activities of the members.
3.
Leadership directs the people to attain some goal.
4.
Leadership occupies a role for a given time and for a group.
5.
A leader possesses qualities to influence others.
6.
Leadership gives people a vision for future.
7.
It is a group activity. Leader influences his followers and followers also

exercise influence over their leader. Leadership interacts.
211
8.
Leadership is meant for a given situation.
9.
Leadership is a continuous process of influencing behaviour. It instills

dynamism in t he group.
10.
It is a psychological process and multi-dimensional in character.
16.5 TRAITS/QUALITIES OF EFFECTIVE LEADERS

To be a good leader, one must possess good qualities. The
qualities of a leader are stated as follows
a)
Good Personality :
A leader with a dynamic personality finds it much easier to
get the group to work in a better manner. Personality is the
sum total of physical and mental attributes of an individual. In
fact, the only quality required for leader is good personality.
b)
Intelligence :
The leader must have knowledge and intelligence to handle
the technical aspects of the problems that the group
encounters. His competency is highly necessary for him to
get the respect of the group members.
c)
Initiative :
The leader must have the quality of initiative so that he on
his own takes upon himself the responsibility of the group
and the activities to be performed which in turn would
motivate the group members to perform better.
d)
Innovative :
A leader needs to have an innovative mind. He should have
the imagination to develop new ideas or new ways in
handling the activities. Followers expect their leader to e=be
innovative. This is because they like to undertake new and
challenging activities.
212
e)
Self confidence :
Self-confidence is a rare quality because of which a person
feels that he has capacity to solve his problems
independently. This is self-confidences creates initiative to
deal with all challenging situations effectively.
f)
Communication skill :
An ideal leader should be a good communicator. He must be
able to communicate his thoughts and ideals, to his
subordinates in an accurate manner. Even motivation of
following is possible easily, if the leader is an effective
communicator.
g)
Coach and guide :

The leader should act as a coach and a guide to direct the
efforts of his subordinates. As a coach, he many actively
direct his followers as to what to do, how to do and whom to
do a particular activity. As a guide, he many provide advice
as and when the followers require to carry out their activities.
h)
Ability to Judge :
Manager as a leader should be able to judge people and
situations. He has to take decision quickly and also correctly
as per his judgment of the situation.
i)
Human skills :
A good leader is the one who commands popular following.
And to have good following the leader should have good
inter-personal skills to understand others. The knowledge of
human skill is very important to the leader as he constantly
interacts with his skills.
j)
Administrative skills :
A leader should possess the skill to plan, organise, direct,
co-ordinate and control effectively which is highly essential
for the efficient functioning of the group.
213
k)
Discipline :
A discipline leader is always in a better position to enforce
discipline amongst the group members which is absolutely
necessary for the proper performance of the group a good
leader must be disciplined person.
l)
Patience :
Most of all, a leader needs to have good patience. He should
have patience to take appropriate decision and not hasty
decisions. He also needs patience to listen to the views.
Opinions and complaints of his followers.
CHECK YOUR PROGRESS

1.
Effective leadership can guide a group towards certain

ideals without exerting much force. Explain.
2.
Enlist the functions of a leader.
3.
Define the term Leadership
4.
Enlist the qualities of a good leader.
16.6 STYLES/TYPES OF LEADERSHIP

The behavior exhibited by a leader during supervision of
subordinates is known as leadership style. There are as many
different styles of leadership as there are leaders. Following are the
styles/types of leadership.
a)
Autocratic style :
An autocrat is the one who takes all decisions by himself and

expects to be obeyed by his subordinates. The subordinates have
no scope to question the superior. This style functioning can be
summarised such as the superior makes the decision, consult the
subordinates in decision making, responsible for the decision, the
relations between superior and subordinates are formal etc.
214
b)
Bureaucratic style :
Bureaucratic style is mainly found in Government

departments. The leader takes decision strictly by following rules,
regulations and formalities. There is no participation of subordinates
in decision making and in case it is there, then again it is to
comply with rules and regulations. The leader does not take up
responsibility. The relationship between superior and subordinate is
very formal. This style believes in more of maintaining records and
documentation which leads to delay and red-tapism.
c)
Consultative style :
Consultative style, the leader consults his subordinates

before taking a decision. The leader feels that it is always advisable
to consult the subordinates. These types of leader are more open
minded and would welcome suggestions from the subordinates
before making a decision.
Certain points to be noted in this respect are
The superior consults the subordinates before making a

decision.
The subordinates may give their suggestions or comments,

which the superior may or may not accept.
The superior makes the decision and responsible for the

decision.
The relations between superior and subordinates are

informal.
d)
Participative style :
Participative style leader not only consults the subordinates,

but allows them to take part in decision making.
The following points are to be noted
The superior consults his subordinates before making a

decision.
The leader along with the group takes part in decision

making.
215
Both the leader and the group share the responsibility for
making the decision.
The relations are informal.
e)
Laiseez Faire style :
Laissez faire style involves minimum interference of the

management in the day to day functioning of the business.
Its peculiarities being
Maximum freedom is given to employees.
If subordinate are professional then this can be the best style

of management.
The superior is more at a facilitator than boss.
Most of the decisions taken by subordinates.
The relations are very informal.
f)
Paternalistic style :
In paternalistic style the leader considers himself as a parent

figure and takes decision which he deems best for the group. This
style aims at creating a family atmosphere within the organisation.
The following points to be noted-
g)
This style is mostly followed in Japanese organisation.
The leader considers himself as a parent figure and consults

his subordinates.
Mostly the leader takes the decision.
The leader is responsible for decision making.
The relations are very hoarsely.
This is more suitable in small organisation.

Sociocratic style :
Sociocrats attempt to run their organisation like a social club.

They believe in a warm and pleasant social atmosphere. From
216
them, the interest of the subordinates comes first, and then that of
the organisation.
The following points to be noted.
The superior takes a decision by keeping the interest of the

subordinates.
The interest of organisation may be secondary.
The superior consults the subordinates for decision making.
h)
Neurocratic style :
A neurotic person is an abnormally sensitive person. So a

neurocratic style involves managing an organisation more by
emotions than by rational judgment.
The following points to be noted -
i)
The leaders are obsessed with success and want to achieve

it under any circumstances.
They take decisions by themselves. But in case of failure

they may shift the responsibility to subordinates.
The leader is highly sensitive, emotional and eccentric.

Situational style :
Now-a-days, in most well managed organisations, the

managers follow situational leadership style. This means, the
leadership style varies depending upon the situation. In a given
situation he may have to be autocratic and in another situation he
may have to be participative or bureaucratic. Thus, a leader should
adopt the style most suitable to the given situation which can be
formed as The situational style.
16.7 DIFFERENT APPROACHES TO LEADERSHIP

Leadership is a qualitative concept. That is why there is no single
definition for leadership. It changes as per the approach to it. Following are the
main approaches to Leadership.
217
1.
Trait Theories
The most commonly used approach to the study of leadership

concentrated on leadership traits.. A leader was described on the basis of
qualities such as intelligence, charisma, decisiveness, enthusiasm, strength,
integrity, and self-confidence. There were certain characteristics such as
physical energy or friendliness that were essential for effective leadership.
These personal qualities like intelligence were felt to be transferable from one
situation to another. Since all individuals did not have these qualities, only those
qualities can be considered as leaders. It is, however, intended to identify traits
that are consistently associated with leadership. For example, intelligence,
dominance, selfconfidence, high energy level and task-relevant knowledge
are five traits that show positive correlation with leadership.
2.
Behavioural Theories :
The deficiency in the trait theory to explain the leadership prompted

there searchers to take into the behaviors that specific leaders exhibited. The
Ohio state Group and the University of Michigan Group are the two popular
studies which developed the leadership styles. Ohio State studies have
identified two types of leadership behaviour described by the subordinates.
Initiating structure: The leader is characterized as holding the highest position
with initiating structure and he assigns group members particular tasks. He
expects workers to maintain definite standards of performance and
emphasizes the meeting of deadlines. Consideration: A leader with
consideration shows concern for his or her followers comfort, well being,
status, and satisfaction Such leaders helpsubordinates with personal problems
and treat all subordinates as equals.
3.
Contingency Theories of Leadership / Tannenbaum and

Schmidts Leadership Pattern :
Contingency theory advocates that there is no none best way to lead

in all situations. Effective leadership style varies from situation to situation.
Leadership style depends upon various factors like traits of the leader, the
characteristics of the nature of the task being done and other situational
factors. It was felt that the concern for task tends to be represented by
autocratic leader behaviour, while concern for relationship is represented by
democratic behaviour. This was popular because it was generally agreed that,
leaders influence their followers by either ways. They can tell their followers
what to do and how to do it. Or they can share their leadership responsibilities
with their followers by involving them in the planning and execution of the task.
218
4.
Hersey and Blanchards Life Cycle Or Situational Approach :
Situational leadership helps to assess the maturity level of the

followers. The leader in situational leadership style should help followers to
grow in maturely, as they are able and willing to go. Adjusting leadership
behaviour through the four styles. Situational leadership contends that strong
direction (task behaviour) with immature followers is appropriate if they are to
become productive. It suggests further that the leader should provide positive
reinforcement and social emotional support to the people who are graduating
from immaturity to maturity. The leader should decrease the control over their
activities but also continue to decrease relationship behaviour as the followers
reach high level of maturity. If the followers are very mature, the leader has to
leave them on their own. Then there is more trust and friendship between the
leader and the followers. However, the leader has to watch the performance
level and the leader should also provide appropriate socio-emotional support
and direction.
13.8 SUMMARY
Leadership is a process by which a person influences others
to accomplish an objective and directs the organization in a way
that makes it more cohesive and coherent. An individual having the
qualities like good personality, intelligence, initiative, innovative, self
confidence, communication skill, act of coach and guide, ability to
judge, knowledge of human skill, administrative skills, discipline,
patience can becomes a good leader.
There are as many different styles of leadership such as:
Autocratic style, Bureaucratic style, Consultative style, Participative
style, Laissez faire style, Paternalistic style, Sociocratic style,
Neurocratic style, Situational style etc.
Act as a representative of the work-group, develop team
spirit, act as a counselor of the people at work, time management,
Proper use of power, Secure effectiveness of group-effort are the
main functions of Leadership.
13.9 QUESTIONS FOR SELF-ASSESSMENT

a.
b.
c.
Explain traits of an effective leader.

What are the different styles of leadership?
1.
Autocratic style
2.
Bureaucratic style
219
3.
4.
5.
6.
7.
8.
Consultative style
Participative style
Laissez faire style
Paternalistic style
Sociocratic style
Situational style

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T.Y.B.A.

: Msr. Madhura Kulkarni,

July 2012, T.Y.B.A. Commerce Paper V Human Resource Management

: Professor cum Director

DTP Composed by : Pace Computronics

Human Resource Management

Human Resource Planning

Recruitment and Selection

Training and Development I

Training and Development II

Group Dynamic and Human Needs

(Revised Syllabus w.e.f. 2010 11)

Introduction to Human Resource Management

Introduction - What is Management? What is Human Resource

Human Resource Planning

Importance - Definition - Need - Process of Human Resource

Recruitment and Selection Process

Introduction - Factors governing Recruitment - Constraints of

Psychological testing, Interviews and Induction

Psychological testing - Purpose, Characteristics, Classification,

Training and Development

Importance and Purpose - Appraisal Process - Methods (traditional

Group dynamic & human needs

Definition of a Group - Features, Function & Goals of formal groups

Introduction - Definition - Objectives - Scope - Fundamental

Introduction - Definition - Classification of Motivation - Types of

non-financial Motivations, Important theories of Motivation by

Definition & features - Factors influencing Morale - Measurement of

Definition - Characteristics - Roles expected from leader - function

After studying this chapter the students will be able to:

Understand the concept HRM.

Know the definition of HRM.

Evaluate the scope of HRM.

Indentify the importance of HRM.

Elaborate the difference between Personnel management

Human Resource management is concerned with managing

training and development, placement, motivation, performance

DEFINITION AND NATURE OF HRM

Human Resource Management is a process. It perform the

HRM gives more importance on the accomplishment of

HRM is all pervasive. It is required for all organizations,

and for all activities. Therefore it is universal applicable to any kind

HRM is a continuous activity. Organisations need to manage

Integrated use of subsystem :

HRM involves various functions like employee training,

HRM is interdisciplinary. Effective HRM involves acquiring

Development of Team sprit :

The aim of HRM is to develop and maintain team spirit in the

Development of professional attitude :

Formal coaching and training along with a professional body

HRM brings long-term benefits to the individuals,

HRM is dynamic in nature. Changes in the employment

SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of HRM starts with entry of a person in the job

Human resource planning :