VYSYA COLLEGE, SALEM – 103.

CLASS: III BBA UNIT – I

SUBJECT: HUMAN RESOURCE MANAGEMENT DATE:
UNIT – I

HUMAN RESOURCE:

For the successful functioning of any business organization finance, machines, materials and
manpower resources are essentials of these various resources, the manpower (or) human resource occupies a
very important place in view of its distinctive characteristics. The term “Human Resource” with reference to
an organization refers to its employees.

Management:

It is basically concerned with the performance of planning, organizing, directing, and co-ordinating
and controlling, which in fact are its main functions. Management is also regarded as the art of getting things
done through others. It is not possible for any individual to do all the work himself. The work is shared
always with others.

Management – Definitions

“To manage is to forecast and plan, to organize, to command, to co-ordinate and control”.

 Henry Fayol.

“Management is what a manager does” - Louis Allen.

“Management is the art of knowing exactly what you want your men to do and then seeing that they
do it in the best and cheapest way”. - F.W. Taylor.

HRM – Introduction:

The term Human Resource Management comprises of four distinguished components. They are: 1.
Human, 2. Human Resource, 3. Management, 4. Human Resource Management. We are all human beings.
Invariably, all of us have six senses. Only with the six senses, that is, rationalization capacity, can we
distinguish ourselves from all other living organisms. Every one of us is a culmination of body, mind, heart
and soul.

HRM – Definitions:

“Human Resource (or) manpower management effectively describes the process of planning and
directing the application, development and utilization of human resources in employment:
 Dale yoder.

“The personal function is concerned with the procurement, development, compensation, integration
and maintenance of the personnel of an organization for the purpose of contributing towards the
accomplishment of that organization’s major goals (or) objectives”.
 Flippo.

“Human Resource Management is part of management process which is primarily concerned with
the human constitutes on an organization” - E.F.L. Brech.

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 “It is that part of the management function which is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring together and develop into an effective organization the
men and women who make up an enterprise and having regard to the well-being of an individual and
working groups, to enable to make their best contribution to its success”.

-The British Institute of Personnel Management.

WHAT ARE THE NATURES AND CHARACTERISTICS OF HRM?

1. It is Universal:
The fundamental principles of human resource management are applicable in all kinds of
organizational structures but the approach and style of human resource management may differ from one
organization to another.

2. It is goal – oriented:
It enables achievement of personal, team, functional, organizational and societal goals of the
organization.

3. It is continuous process:
In every phase of human resource management a series of step-by-step activities are involved before
it arrives at the end result. This process is continued as long as organization exists.

4. It is people – oriented:
HRM is concerned with both individual employees and also team. It helps in the development and
integration of people to achieve personal as well as organization objectives.

5. It is an integrative tool:
The ultimate aim of HRM is to motivate, participate and co-ordinate the workforce for better
integration. It is a team work.

6. It is dynamic:
It is a dynamic and an on-going process for the achievement of group goals.

7. It is multidisplicinary:
HRM deals with human beings who have varied individually, personality, aptitudes and attitudes.

8. It is intangible:
HRM is an invisible function. The effectiveness and efficiency can be measured based on its results.

9. It is pervasive in nature:
Management of human resource is a task performed at different levels, that is, production, marketing,
finance, research and etc.

10. It is relatively new:

When compared with subjects like psychology, sociology, economics, marketing, financial
management and etc. HRM is relatively a new subject.

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WHAT ARE THE SCOPES OF HRM?

Unlike in the past, the scope of HRM has expanded manifold over the decades. The economic
policies of the countries in the world, human resources policies of organizations, information and
communication technology and increasing societal demand and expectations have made evolution and
revolution in the field of HRM and expanded its scope as well.

I. Human Resource Acquisition:

-HR planning
-Recruitment
-Selection
-placement

II. Enhancement:
-Training
-Career planning
-Performance appraisal
-Internal mobility

III. Retention:
-Quality worklife
-Monetary and non-monetary benefits.
- Social security

IV. Legal aspects:

-Health
-Safety and welfare
-Environmental protection
-Industrial relations

V. Control:
-HR Audit and Research
-HR accounting
-HR information system

WHAT ARE THE OBJECTIVES OF HRM?

1. To ensure adequate number of right people are in the right jobs and to achieve the common
objectives of the organization.
2. To possess a workforce willingly to achieve the personal, group, functional, organizational and social
goals.
3. To build inter-personal relationships better.
4. To utilize the existing human resources effectively.
5. To enhance job satisfaction and cultivation levels of all human resources.
6. To develop a conducive work environment and maintain a quality work life.
7. To make an optimum utilization of the human resource of the organization.
8. To establish and maintain a sound organization structure.
9. To provide better scope for the development of personnel.
10. To provide scope for participation in decision-making.
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WHAT ARE THE IMPORTANCES OF HRM?

1. To identify its manpower needs:

The manpower needs of an organization will have to be correctly determined. It is necessary to
determine the number of men required for doing the various jobs in the organization.

2. Suffer from wither surplus (or) shortage manpower:

It is further important that the number of persons employed in the organization at any given point of
time should neither be more/less than what is actually required.

3. Selection of the right man for the right job:

HRM ensures the selection of the right man for the right job. It recognizes the fact that if a candidate
is over qualified for the job, he will not have a positive attitude towards work and others.

4. Development of the skill of every individual in order to make him up-to-date:

Every person in the workplace has to update his knowledge and skill with the development in work
methods.

5. Need for the appraisal of the employees performance:

Performance appraisal is an integral part of human resource management. Unless the performance of
the employees is periodically reviewed, it will not be possible for the employer to know their level of
efficiency.

6. Need to provide incentives to the employees performing well:

Employees, who are very good in their work, need incentives. The incentives may be financial as
well as non-financial.

7. Employee commitment:
The level of employee commitment can be assessed using questionnaire, level of employee
absenteeism, grievance and etc.

WHAT ARE THE FUNCTIONS OF HRM?

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

I. MANAGERIAL FUNCTIONS II. OPERATIVE FUNCTIONS

1. Planning 1. Procurement.
2. Organizing 2. Development
3. Directing 3. Compensation
4. Co-ordination 4. Integration
5. Controlling 5. Maintenance

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I.MANAGERIAL FUNCTIONS:

1. PLANNING: It is deciding in advance what should be done. It helps to work in a systematic manner and
eliminates the need for working at random planning involves the determination of objectives, policies,
procedures, rules, strategies, programmes and budgets. It is necessary to determine the manpower needs of
the organization. The planning processes are:

1. What to do?
2. How to do?
3. When to do?
4. Who is to do?
2. ORGANISING: It is a process by which a structure, delegation of authority, responsibility, better human
resource information system and co-ordination are established for the effective and efficient functioning of
the workforce. It is the processes of locating 6 Ms are very important to start the production functions in
every organization.

1. Men
2. Money
3. Machine
4. Materials
5. Methods
6. Management
3. DIRECTING: It is the process of supervising, guiding and motivating the employees in order to get best
out of them. By performing the directing function, the human resource manager will also be able to the
entire support and co-operating of all his staff. By performing the directing function, the human resource
manager will also be able to get the whole-hearted support and co-operation of all his subordinate staff. This
helps in the effective attainment of the enterprise objective.

4. CO-ORDINATING: All the systems and functions of human resource management need to be
interlinked to attain the designed objectives. It is unity of actions to achieve common objectives. It is most
powerful function of every management. Management and staff members must have the co-ordination in an
organization. Without the co-ordinate function could not run the management .

5. CONTROLLING: It is the process of setting standards and comparing the actual performance with
standards. It includes checking, regulating and verifying everything occurs in conforming with the plan.
Planning without control is useless and control without planning is meaningless.

1. Measure the actual performance.

2. Measure deviations.
3. Taking corrective actions.

II. OPERATIVE FUNCTIONS:

1. PROCUREMENT: Procurement of human resource is concerned with the following:

1. Job analysis
2. Human resource planning
3. Recruitment
4. Selection
5. Placement
6. Transfer
7. Promotion

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2. DEVELOPMENT: Development of human resource is concerned with the following:
1. Performance appraisal
2. Training
3. Executive development
4. Career planning and development
5. Organizational development.

3. COMPENSATION: It deals with the following:

1. Job Evaluation
2. Wage and salary
3. Incentives
4. Bonus
5. Fringe benefits.
6. Social security schemes.

4. INTEGRATION: It is concerned with the performance of all those activities the aim of which is to bring
about reconciliation between individual interest and that of the organization. These includes:
1. Motivating employees to work better.
2. Boosting the morale of the staff.
3. Ensuring effective communication.
4. Enhancing leadership qualities.
5. Providing scope for collective bargaining.
6. Redressing grievance.
7. Managing conflicts
8. Handling disciplinary cases
9. Providing counseling to get rid of stress.
10. improving quality of work life of employees.

5. MAINTENANCE: This functions deals with the following;

1. Promoting job satisfaction among employees.
2. Tackling the problem of labor turnover.
3. Human resource accounting, audit and research.
4. Maintain personnel records.
5. Human resource research.

EXPLAIN – HRM AS A PROFESSION.

HRM has come to be recognized as a profession in the way medical, law and engineering are
recognized. A profession different from an occupation. A profession need not work for salary, under an
employer. He can have his own clients and get him remuneration from them directly. HRM as a profession,
fulfills the following criteria of a profession:

1. AN ORGANISED BODY OF KNOWLEDGE: HRM like medicine, law and engineering has well
developed concepts, principles, theories and practices. A human resource management professional can not
perform his tasks if he is not familiar with these concepts, principles etc.

2. EDUCATIONAL QUALIFICATION: A person who wants to become a medical (or) engineering

professional has to possess the minimum qualifications and training prescribed for it.

3. REGULATORY AUTHORITY: The medical council and the Bar Council act as the regulatory for
medical and law professionals. As far as HRM is concerned, the government of India has created a separate
Ministry called the Ministry of Human Resource Development that is empowered to regulate the activities
of any HRM institution.

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4. CODE OF CONDUCT: Every member of a profession has to observe certain ethical standards laid
down for that profession. Any member found to be violating the code of conduct might be disqualified from
functioning as a professional.

5. SERVING THE COMMUNITY: A professional’s main obligation is to serve the society. He must not
think in terms of personal gain always although his profession gives ample scope to earn. Doctors and
lawyers have their own clients and get their remuneration directly from them.

WHAT ARE THE QUALITIES OF A HR MANAGER?

1. To be successful in his job, the resource manager shall hold an MBA (with specialization in HRM).
2. He should posses’ good communication skills. He should be fluent in English, Hindi and couple of
Indian languages.
3. He should be a creative person and only then he will be able to ideas to solve complex HR problems.
4. He should be able to analyze any problem objectively/practically.
5. He should be inspire and motivate the employees to put in their best efforts.
6. He should have leadership qualities.
7. He should not be an irritable person. He should be friendly and approachable.
8. He should be fair and honest in his dealings.
9. He should have the ability to make decisions independently.
10. He will be able to be a dynamic person.
11. He should have good memory to be able to recollect anything.

WHAT ARE THE ROLES OF HR MANAGER?

1. Functional head.
2. Talent hunter.
3. To provide counseling.
4. To act as a link between the different individuals in the organization.
5. To act as a spokesman of the organization.
6. To introduce any change without facing any trouble.
7. Policy maker.
8. Negotiator.
9. Care taker.
10. He should be a good planner.

************UNIT – I COMPLETED*****************
REFERENCE BOOK:
J. Jayasankar,
K. Sundar, J. Srinivasan.

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 UNIT – II

HUMAN RESOURCE PLANNING

INTRODUCTION:
Human Resource planning is the very first function of HRM. The effectiveness and efficient
functioning of all other functions of HRM purely depends on effective and appropriate human resource
planning. It is a process of acquiring suitable human resources for the organization to attain its objectives.
The most important of all the resources of a business enterprise is its human resource. The very fate of an
organization is determined by the number and type of persons working in it. In fact, an institution is
recognized more by the quality of its staff rather than by its physical structure. Human Resource Planning
has two sub-plans:

1. Human Resource Demand Plan.

2. Human Resource Supply plan.

MEANING:

HRP, in simple terms, is the process of determine the manpower needs of an enterprise so that it is
possible to fill up any vacancy as and when it arises. Such a plan eliminates the risk of surplus (or) shortage
of staff at any time. It is therefore, important that an organization has the right number and type of persons at
any point of time to be successful and this is what is achieved through manpower planning or human
resource planning.

DEFINITION:
“Human Resource Planning is a process of determining and assuring that the organization will have
an adequate number of qualified persons, available at proper times, performing jobs which meet the needs of
the organization and which provide satisfaction for the individuals involved”.

-BEACH.
“Human Resource (or) Manpower Planning is the process of determining the manpower
requirements and the means for meeting those requirements in order to carry out the integrated plan of the
organization”.

-COLEMAN

“Human Resource Planning includes the estimation of how many qualifies people are necessary to
carry out the assigned activities, how many people will be available and what, if anything, must be done to
ensure that personnel supply equals personnel demand at the appropriate point in the future”.

-TERRY L. LEAP AND MICHAEL D. CRINO

“Human Resource Planning is the process of forecasting demand for and supply of the right type of
people in the right number”.

-ASWATHAPPA.
“HRP is an integrated approach to performing the planning aspects of the personnel function in order
to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks
required to meet organizational objectives and satisfy the individual needs and goals of organizational
member”.
-LEON C. MEGGINSON

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WHAT ARE THE NATURES AND CHARACTERSTICS OF HRP?

1. IT IS GOAL-ORIENTED:
The main objective of HR planning is to ensure that the amount invested in human resource is
justified, that is, the organizational should device maximum benefits. If further ensures that the organization
has the right number and type of persons working at any given point of time.

2. IT FOCUS ON THE PRESETN AND FUTURE MANPOWER NEEDS OF AN ORGANISAITON:

After the present and future manpower needs of an organization have been anticipated steps may be
taken to fulfill the same through proper planning. HRP thus, has relevance for the present and the future.

3. IT FOLLOWS SYSTEMATIC APPROACH TO THE TASK OF FULFILLING THE

MANPOWER NEEDS:
The organization will recruit staff at random. This leads to certain problems, example, surplus (or)
shortage of manpower and the organization appointing unsuitable persons. HR planning follows a systematic
approach to the entire process of recruiting staff in order to overcome these problems.

4. IT PROMOTES EFFICIENCY:
HR planning is required as it lead to greater efficiency. This is does by keeping the cost of
recruitment and selection low and by ensuring right man for the right job.

5. IT IS A CONTINUOUS PROCESS:
It is not correct to think that HR planning is required only, in the early years of an organization. It is
something that is required continuously. In other words, as long as an organization requires manpower, the
need of HR planning will be felt.

6. IT CAN BE MADE FLEXIBLE:

There is always a feeling among many that any type of plan makes things rigid. It may be said here
that the HR plan can be made flexible by making changes in it in tune with the changing manpower needs of
the organization.

WHAT ARE THE OBJECTIVES OF HRP?

1. To ensure that the HR plan helps to attain the overall objective of the enterprise.
2. To keep the cost of recruitment and selection of employees low.
3. To ensure that the organization does not face the problems of either surplus or shortage.
4. To ensure the selection of the right man for the right job.
5. To ensure that the amount invested in human resource is at its optimum level.
6. To make available the required manpower when expansion and diversification activities are
undertaken.
7. Ti give effect to the recruitment policy of the organization. Government organizations adhere to the
reservation policy of the government in the matter of recruitment of staff.
8. To eliminate or minimize the adverse effects of labor turnover.
9. To find suitable replacement for those employees, who retire, die, become incapacitated or are
dismissed from service on disciplinary grounds.
10. To guard the enterprise against manpower obsolescence.

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WHAT ARE THE IMPORTANCES OF HRP?
1. ESTIMATING FUTURE DEMAND FOR HUMNA RESOURCE:
Human Resource Planning determines the future requirements of personnel on the pace of
development, expansion and diversification of business. It also deals with surplus and deficit workforce of
the organization.
2. BRIDGING THE GAP:
Human Resource Planning plays an important role in bridging the gap between demand and supply
of workforce in an organization.
3. ENHANCING WORKFORCE:
Human resource planning advocates for training and development of workforce to cater to the future
demand for workforce.
4. COPING WITH CHANGES:
Human resource planning facilitates to cope with changes. As the changes are inevitable, human
resources planning focuses on change in nature of workforce, technological change, organization change,
demographic changes, in dealings with workforce.
5. DETERMINING THE COST OF HUMAN RESOURCE:
Outflow of money is involved in every process of human resource management. Human resource
planning takes into account the money spent on every activity of human resource planning and facilitates
cost control and cost reduction.
6. COST OF HIRING AND TRAINING:
Human resource planning minimizes the cost of hiring and procurement. It is simple to understand
that money unspent is money saved.
7. EXPANSION OF BUSINESS:
Expansion of business results in demand for workforces. Human resource planning determines the
qualitative and quantitative workforce requirement for an organization.
8. MANAGEMENT DEVELOPMENT PROGRAMMES:
Human resource planning decides upon the need for management development programmes and
facilities to conduct the same more effectively and efficiency.
9. OPTIMAL UTILISATION OF HUMAN RESOURCE:
Effective human resource planning will help ascertain the adequate workforce and facilitate to use
them optimally.

10. ESSENTIAL FOR STRATEGIC PLANNING:

Strategic plans are the long-term plans of the organization. In the absence of human resource
planning strategic planning will become ineffective.

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WHAT ARE THE STEPS/PROCESSES/STAGES ARE INVOLVED IN HRP?
1. ANALYSING THE ORGANISATIONAL PLANS:
Every business enterprise will have plans for the successful performance of the following activities:-
-purchase of raw materials.
-installation of machines.
-production.
-finance and accounting.
-Marketing
-research and development (R&D)
-maintenance of employees records.
2. FORECASTING THE DEMAND FOR HUMAN RESOURCE:

Keeping in mind the expansion and diversification programmes of the enterprise in the near future,
the rate of labor turnover and absenteeism the technology changes, the trend in the industry and market. The
future manpower requirements of the enterprise need to be forecasted. The quantity as well as the quality in
terms of skill, experience, knowledge etc. of the human resource shall be taken into account while making
the forecast.

3. FORECASTING SUPPLY;

Collecting information about the existing human resource inventory is that is the first step in
forecasting the future supply of human resource. Information on the existing human resource inventory is
gathered:
-Department wise (production, marketing, finance and etc).
-Job category wise (clerks, cashiers, sales persons and etc).
-Age wise.
-Skill wise.
-Experience wise.
-Pay scale wise.
-Gender wise (male/female).
4. ESTIMATING NET HUMAN RESOURCE REQUIREMENTS:
A comparison between the demand and supply forecasts of human resource would indicate the net
manpower requirements of the enterprise. It may be either surplus or deficit. Surplus indicates that some
employees are redundant while deficiency implies the need for additional hands.

5. PREPARING THE ACTION PLANS:

In case of surplus manpower, the employee, found in excess of the requirements, may be redeployed,
that is sent to branch offices or sister concerns where there is shortage of manpower. Redeployment is
prevalent in government organization. The surplus may also be encouraged to opt for voluntary retirement.
If there is deficiency, the number of persons needed may be recruited from the outside sources.

6. CONTROLLING:
As both, internal and external environments which are controllable and uncontrollable keep
changing, it is important to monitor the HRP to bridge the gap. Hence, controlling is to check the deviation
between HRP and its outcome and to keep necessary corrective action on time.

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EXPLAIN – HUMAN RESOURCE PLANNING AT VARIOUS LEVELS.

1. GLOBAL LEVEL:
Eminent persons throughout the world are considered for appointment in global organizations like
the UNICEF, UNO and etc. Computer professional throughout the world and in particular from India are
working for the corporate giants of the US and the European countries.

2. NATIONAL LEVEL:
A citizen of India, possessing the requisite qualification is considered for appointment in central
government organization. In India, organizations like the Union Public Service Commission (UPSC) and
Staff Selection Commission (SSC) are empowered to conduct, entrance tests to select suitable candidates for
central government to serve in any part of India.

3. STATE LEVEL:
Vacancies in state government organizations in India are filled up with the help of the respective
state public service commission. For example, the TamilNadu Public Service Commission (TNPSC) is
empowered to hold entrance tests to select candidates for state government service. An employee in the state
government service must be prepared to serve in any part of the state.

4. INDUSTRY LEVEL:
The level of activity of a particular industry like automobile, textile, chemical etc. will determine its
manpower requirements. Only persons possessing certain specific qualification and experience can be
considered for appointment in these industries. For example, a degree or diploma in automobile engineering
is necessary for someone to associate himself with the auto industry as a technician.

5. FIRM/COMPANY LEVEL:
The scale of operation of a particular firm or company will determine its manpower needs. The
recruitment policy of the particular concern will indicate the mode of selection (whether from within or from
outside) and the type of candidates (male or female, with or without previous work experience and so on) for
the various jobs.

6. DEPARTMENT/DIVISION LEVEL:
This is concerning the manpower needs of a particular department or division within a firm or a
company. The nature of activities of a particular department, the availability of financial resources etc., are
some of the factors influencing the human resource plan.

EXPLAIN – FACTORS INFLUENCING HUMAN RESOURCE PLAN.

FACTORS OF HUMAN RESOURCE PLAN

INTERNAL FACTORS EXTERNAL FACTORS

1. Recruitment policy 1. Reservation policy of govt.

2. Availability of funds 2. Availability of manpower
3. Job requirements 3. Willingness of job seekers
4. Scale of operations 4. Trend in the industry
5. Trade union influence 5. Level of technology

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I.INTERNAL FACTORS:

1. RECRUITMENT POLICY: The policy of the organization regarding the source of recruitment and the
method of selection is an important factor influencing the human resource plan.

2. AVAILABILITY OF FUNDS: If finance is not a constraint, the organization will be in a position to

offer an attractive salary package and thereby induce deserving persons to apply for the various jobs.

3. JOB REQUIREMENTS: Different jobs call for different qualifications and skills from prospective
applicants. The requirements of every job, therefore, will have to be done in mind while preparing the
human resource plan.

4. SCALE OF OPERATION: The manpower needs of an organization, the scale of operation of which is
greater, will naturally be more than the one with a lesser scale of operation.

5. TRADE UNION INFLUENCE: The demands of the trade union regarding the hours of work, source of
recruitment etc., may also influence the human resource plan.

II.EXTERNAL FACTORS:

1. THE RESERVATION POLICY OF THE GOVERNEMENT: The reservation policy of the

government provides for reservation of jobs for certain communities. The human resource plan of every
government organization and government aided organization has to give effect to such a policy.

2. AVAILABILITY OF MANPOWER: Before preparing the human resource plan, it must be ensured that
the type of human resource needed by the organization is actually available. This is because, sometimes
people with a certain skill or qualification may not be available in the job market.

3. WILLINGNESS OF THE JOB SEEKERS: When an organization wants to recruit staff afresh, it must
ensure that its terms and conditions of service are acceptable to the job seekers. If they find the terms
unreasonable, they may not be willing to apply.

4. KNOWLEDGE OF THE TREND IN THE INDUSTRY: Consideration of the trend in the industry in
the matter of the type of workforce preferred for certain jobs, wage rates, hours of work etc. is important in
preparing the human resource plan.

5. LEVEL OF TECHNOLOGY: A business enterprise is highly susceptible to technological changes.

Technically qualified persons constantly update themselves to enhance their employment prospects. The job
offer of an enterprise, therefore, must be such that the potentials of the individuals are fully utilized and they
are also rewarded suitable.

WHAT ARE THE USES AND BENEFITS OF HRP?

1. COST-BENEFIT ANALYSIS: It must be ensured that the benefits are always greater than then cost
incurred.

2. MAKING ACCURATE FORECASTS: As the success (or) failure of the human resource plan depends
on the accuracy of the forecasts, steps must be taken to predict the present and future manpower needs.

3. PROVISION FOR FUTURE UNCERTANITIES: Adequate provision should be made in the human
resource plan for such uncertainties as absenteeism, labor turnover etc.

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4. INVOLVE EMPLOYEES: Employees participated in management is an integral part of human resource
management.

5. INTRODUCING FLEXIBILITY: to overcome such a problem, certain amount of flexibility may be

introduced into the problem.

6. CONSIDERATION OF BOTH QUALITY AND QUANTITY: The human resource plan to be fruitful
must consider both the quantitative and qualitative aspects of the human resource.

WHAT ARE THE LIMITATIONS OF HRP?

1. EXPENSIVE: Preparation and implementation of the human resource plan is expensive in terms of time,
efforts and money required.

2. INACCURATE: The manpower needs of an organization are determined based on forecasts. The human
resource plan is prepared in tune with such forecasts. The success of the plan, therefore, depends on the
accuracy with which the forecasts are made, inaccurate forecasts would only result in the failure of the plan.

3. UNCERTAINTIES: Absenteeism, seasonal nature of certain jobs, labor turnover etc., can jeopardize the
human resource plan.

4. TRADE UNTION RESISTANCE: Trade unions efforts criticize the human resource plan of an
organization on the ground that it is detrimental to the interests of the employees. The plan may contain such
measures as increase in workload, voluntary retirement, redeployment of surplus labor etc. It is for these
reasons the trade unions show resistance.

5. RIGIDITY: Any plan is basically rigid. The rigidity of the human resource plan may, sometimes, affect
implementation. Such a plan, thus, remains only on paper.

6. FOCUS ON QUANTITY: The manpower plan often focuses attention on the quantity of human resource
rather than quality. Quantity without quality does more harm than good.

******************UNIT – II COMPLETED****************

Reference Book:

1. J.Jayasankar
2. K. Sundar, J. Srinivasan.

UNIT – III

RECRUITMENT AND SELECTION

RECRUITMENT

MEANING:

It is a process of attracting potential people to apply for a job in an organization. Efficient and
effective recruitment will facilitate selection process to absorb the candidates for filling up the existing
vacancies in an organization. It links the job provider and job seekers. It is a positive process that encourages
all the aspiring and potential candidates to apply for the job. From the pool of applications received, the
candidates are scrutinized and suitable candidates are shortlisted for further selection processes. The main
objective of the recruitment process is to expedite the selection process.

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DEFINITION:

“Recruitment is the process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in the organization”. -EDWIN B. FLIPPO

“Discovery potential candidates for actual or anticipated organizational vacancies”.

-DAVID A. DECENZO & STEPHEN P. ROBBINS.

“Recruitment is the process of locating, identifying and attracting capable applicants”.

-BERGMANN AND TAYLOR.

WHAT ARE THE IMPROTANCES OF RECRUITMENT?

1. To attract and encourage more and more candidates to apply for a job in the organization.
2. To forward a talented pool of candidates for further selection processes for the job.
3. To determine present and future requirements of the organization.
4. To facilitate human resource planning more effectively and efficiency.
5. To bridge the gap between job seekers and job providers.
6. To reduce the attrition rate by facilitating appropriate selection.
7. To increase applicants at minimal cost.
8. To explore all sources and techniques of recruitment to procure the right candidates for the job.

WHAT ARE THE SOURCES OF RECRUITMENT PROCESS?

RECRUITMENT PROCESS

INTERNAL SOURCES EXTERNAL SOURCES

1. ADVERTISMENTS
1. TRANSFER

2. EMPLOYMENT
2. UPGRADING
EXCHANGES

3. PRIVATE
3. PROMOTION EMPLOYMENT
CONSULTANTS
4. DEMOTION

4. CAMPUS INTERVIEW
5. PREVIOUS APPLICANTS

5. E-RECRUITMENT
6. RECOMMENDATION BY EXISTING EMPLOYEES

15
I.INTERNAL SOURCE:

1. TRANSFER:
This is probably the earliest approach to filling up a vacancy. It a particular department has a couple
of surplus staff and another department is short staffed, the surplus staff may be transferred to that other
department. Transfer of an employee may be either from one section to another section (OR) from one
department to another department (OR) from one branch to another branch (OR) from one state to another
state.

2. UPGRADING:
Based on the performance of employees they are upgraded in organization position. For example: a
manufacturing industry to fill the production manager vacancy, at that time to give the promotion to the
assistant production manager.

3. PROMOTION:
Considering seniority and merits of the employees they are provided to the good opportunity to
climb up in the organizational hierarchy. Usually, when a vacancy arises at a higher level in an organization,
it is filled by elevating a person who comes next in the organizational structure. The process of elevating a
person to a higher level job is what is known as promotion. Promotion gives the individual concerned
greater authority and emoluments as well.

4. DEMOTION:
In case of consistent poor performance of employees they are demoted to make them realize their
potential for development.

5. PREVIOUS APPLICANTS:
The applicants who have already applied for any job advertised in the past but not selected at that
point of time but stored in the data base of the organization are considered as a internal source of
recruitment.

6. RECOMMENDATION BY EXISTING EMPLOYEES:

Vacancies may also be filled up internally based on the recommendations made by the existing
employees of the concern. A family member, relative or friends of an employee may be considered for
appointment. As such candidates are recommended by the existing employees, it is safe to employ them.

II. EXTERNAL SOURCES:

1. ADVERTISMENTS:

The employer can advertise vacancies in his organization in popular newspapers. Such
advertisements usually specify the following:

1. Nature of the work.

2. Nature of the vacancy (whether temporary or permanent).
3. Qualification and experience desired.
4. Salary and other offered.
5. The mode of applying.
6. The time within which the candidate has to apply.

2. EMPLOYMENT EXCHANGES:

Employment exchanges function under the control of the government. The register the names of job
seekers and also maintain their bio-data. They provide there details to any employer who approaches them.

16
Those who register with an employment exchange are usually unskilled persons. Professionals like chartered
accounts, MBA, MCA and Engineers do not usually prefer registration with an employment exchange.

3. PRIVATE EMPLOYMENT CONSULTANTS:

Employers having vacancies in their organizations may also approach employment consultant who
may help them by finding suitable candidates. They do this work for a consultancy fee.

4. CAMPUS INTERVIEW:

Many employees visit colleges and universities every year and interview students who are in their
final year of study. The faculty may also be involved in the process. Those students who are found to
deserve may be given placement by the employer in their concerns. The students will be on competition of
their degree course.

5. E-RECRUITMENT:

The evolution and revolution in information and communication technology (ICT) has enabled the
recruiters to reach out to the potentials job seekers worldwide. Online recruitment through internal has
become an inevitable external source of recruitment.

WHAT ARE THE DIFFERENCE INTERNAL AND EXTERNAL RECRUITMENT?

Factors INTERNAL EXTERNAL

Economy It is inexpensive. It is inexpensive.

Reliability It is more reliable. It is not that reliable.

Time It takes lesser time. It is time consuming.

Induction It leads to easy induction. It is bit difficult.

Process It is closed process. It is open process.

Impact It enables career growth. It facilitates new addition.

Utility It leads to optimal utilization of talents. It depends on Human Resource planning.

Loyalty It promotes loyalty among employees. It is not guaranteed.

WHAT ARE THE FACTORS AFFECTING RECRUITMENT?

Certain organizations may have difficulty in finding efficient persons for various jobs. On the other
hand, there are organizations with which many candidates would like to be associated. The following ar
some of the important factors that influence recruitment of candidates:

17
 FACTORS AFFECTING RECRUITMENT

INTERNAL FACTORS EXTERNAL FACTORS

1. SIZE 1. GOVERNMENT

2. LABOUR LAWS
2. IMAGE

3. LABOUR MARKET
3. GROWTH

4. COMPETITION
4. NATURE

5. FINANCE 5. LEVEL OF
UNEMPLOYMENT

6. POLICIES

I.INTERNAL FACTORS:

1. SIZE:
It is obvious that an organization which is huge in size will certainly require more people to carry-out
various functions of the organizations. On the contrary, a small organization will require lesser number of
personnel.

2. IMAGE:
Good (OR) bad image of the organization has an influence in attracting the potential candidates to
aspire to apply for the job. The perception of the people about the image of an organization will
decrease/increase the number of applicants.

3. GROWTH:
The rate and space of growth and development of an organization determines the volume of
workforce required to meet the rising demand.

4. NATURE:
The nature of functions and job to be performed resolves the proportionate combination of quality
and quantity of the workforce required is an organization.

5. FINANCE:
Recruitment involves outflow of money. Inadequate of finance will lead to postponing recruitment.
In term, it will hamper the growth and expansion of business.

6. POLICIES:
The human resources policy of an organization affects the recruitment to fill the vacancies in
different levels of the organization either from the internal sources (OR) from the external sources.
18
II.EXTERNAL FACTORS:

1. GOVERNMENT POLICIES:
The central and state government emphasize on equitable growth by enforcing quota system,
reservation and giving priority for differently able people while providing job opportunity in an
organization.

2. LABOUR LAWS:
The recruiters have to company with the social and labor legislative provisions in recruiting and
using labor forces. They have to consider acts such as:
-The contract Labour Act, 1970.
-Bonded Labour System Act, 1976.
-The child Labour (prohibition and Regulation) Act 1986.

3. LABOUR MARKET:
Manpower requirement of an organization is met by both internal and external sources. In case the
labor market is weak or inefficient it will adversely affect the recruitment.

4. COMPETITION:
In the absence of healthy competition, the competitors may employ any other unethical and illegal
recruitment practices in procuring good people for their organization.

5. LEVEL OF UNEMPLOYMENT:
The rate of unemployment determines the number of job seekers and facilitates recruitment.

WHAT ARE THE DIFFERENCE BETWEEN RECRUITMENT AND SELECTION?

S.NO RECRUITMENT SELECTION

1. It is a continues process. It is a process of choosing the suitable

candidates.

2. It stimulates people to apply for a job. It demands confidence to prove themselves.

3. It facilitates selection process. It depends upon recruitment.

4. It is a positive approach. It is negative in approach.

5. It is process of addition. It is an eliminating process.

6. It always precedes selection. It always succeeds recruitment.

7. It does not result in appointment. It leads to contract of appointment.

19
 SELECTION
MEANING:
It is the process of choosing the suitable persons out of all the applicants. In this process relevant
information about applicants is collected and deserving candidates are provided with job opportunity. It is a
process of matching suitable candidates with available job vacancies. Proper selection is helpful in
increasing the efficiency, productivity, growth and development of the organization.

DEFINITION:
“The process by which candidates for employment are divided into two classes – those who will be
offered employment and those who will not”.
-YODER.

“All selection activities from the initial screening interview to the physical examination if required,
exist for the purpose of making effective selection decisions”.
-STEPHEN P. ROBBINS.

WHAT ARE THE PROCEDURES INVOLVED IN SELECTION? (or)

WHAT ARE THE STAGES/PROCESS/STEPS INVOLVED IN SELECTION PROCESS?

1. RECEIVING THE APPLICATION FORM

2. SCRUTINY

3. PRELIMINARY INTERVIEW

4. TESTS

5. INTERVIEW

6. CHECKING RREFERENCES

7. MEDICAL EXAMINATION

8. APPOINTMENT

20
 9. PROBATION

10. CONFIRMATION OF SERVICES

1. RECEIVING THE APPLICATION FORM:

The first step in the selection of candidates is to receive application forms from all eligible
candidates. The candidates may be asked to submit their applications together with their bio-data on a plain
paper. The printed applications contain the details desired by the employer from the candidate with
sufficient space for the candidate to furnish the particular. These applications are also known as
“Application Blanks”.

2. SCRUTINY:
Once the applications have been received from the eligible candidates, the next step is to scrutinize
the applications. It means to check all the particulars given by the candidates to ensure that they are correct.
To scrutinize the application for the following things;
1. Age
2. Gender
3. Qualification
4. Experience
5. Community

3. PRELIMINARY INTERVIEW:
All those applications, whose applications have been considered by the employer, may be called for
a preliminary interview. The object of preliminary interview to see the candidate personally to ensure
whether he is physically and mentally suitable for the job.

4. TESTS:
A test is a sample measurement of a candidate’s ability and interest for the job. Different types of
tests are usually conducted for the purpose. These are:
1. Ability test
2. Intelligence test
3. Proficiency test
4. Interest test
5. Personality test
6.
5. INTERVIEW;
An interview is a face-to-face oral examination of a candidates by an employer. Interview may be
held at two stage:- 1. Preliminary stage, 2. Final stage.

6. CHECKING REFERENCES:
The candidate would have already been required to mention in his application the names and address
of a few persons known to him. At this stage the employer may contact such persons and get information
regarding the conduct and character of the candidate.

7. MEDICAL EXAMINATION;
It is important that a person selected for a job must also be medically fir to perform it. The candidate,
therefore, will be asked to undergo medical examination to prove his/her fitness.

21
8. APPOINTMENT:
If the employer is satisfied with the medical reports of the candidate, he may appoint him in his
concern. The candidate is then give the appointment order. The appointment order states the date of
appointment, the nature of the job, the salary and other allowances payable, the period of probation etc.

9. PROBATION:
It is the initial testing period of the candidate during which his performance will be watched. The
period of probation may vary from company to company. In certain organization it may be six months while
in others it may extend up to one year.

10. CONSIDERATION OF SERVICE:

Only on successful competition of the period of probation the candidate’s appointment will be
confirmed. It is only after getting the confirmation order the candidate becomes eligible to contribute to PF
(provident fund) and such other schemes.

TESTS

MEANING:

Several tests are being conducted in the process of selection to determine whether the applicant
possess the necessary qualities to fit into the interested position in the organization.

DEFINITION:

“A test is a sample of an aspect of individual’s behavior, performance and attitude”.

-MILTON M. BLUM.
“A systematic procedure comparing the behavior of two or more persons.
-LEE J. CRONBACH.

WHAT ARE THE DIFFERENT TYPES OF TESTS?

1. APTITUDE TEST:
An aptitude test is conducted to know whether the candidate has the potentials to learn the skill
necessary to the work to be assigned to him. A candidate who is going to be employed as a salesman can not
be judged by his academic achievements. His potentials will be judged by his ability to communicate
effectively and answer questions.

2. INTELLIGENCE TEST:
The object of conducting intelligence test is to test the mental capacity of the candidates. A person’s
intelligence is measured by what is called “Intelligence Quotient” (IQ). The IQ of a person is judged by his
ability to answer a certain number of questions within a stipulated time.

3. PROFICIENCY TEST:
A proficiency test is conducted to measure a person’s skill to do his job. For certain jobs the skill of
the individual is more important than his IQ or aptitude. A typist’s performance, for example, will be judged
by his or her ability to type with maximum speed and without committing mistakes.

4. INTEREST TEST:
The purpose of interest test is to measure a candidate’s interest in a particular type of work. For
example, office work consists of maintenance of records and files, receiving and sending mail, managing
cash, etc. If the candidate shows preference for records management, he can be considered for such a job.
Interest test enables the employer to assign the jog for which the candidate has greater interest so that he can
derive maximum job satisfaction.

22
5. PERSONALITY TEST;
Personality test helps to judge the personal traits of a candidate. It brings out such qualities of an
individual as his courage, values, initiative, judgment, likes and dislikes. Personality test is necessary to
select executives for an organization.

INTERVIEW
MEANING:
An interview is a face-to-face oral examination of a candidate by an employer. Interview may be
held at two stage – preliminary stage and final stage. The need for preliminary interview is conducted by
employer interview to see the candidate personally to ensure whether he is physically and mentally suitable
for the job. The final interview enables the employer to examine the candidate thoroughly. It must be
remembered that a candidate, to reach the final interview level, must have proved himself in the earlier
stages.

EXPLAIN – GUIDELINES FOR MAKING THE INTERVIEW SUCCESSFUL.

1. All the eligible candidates must be well informed of the date, correct time and place of the interview.
2. The interview should start at the right time and without any delay.
3. The interview hall must have proper lighting and ventilation.
4. The interview must maintain a proper record of the credentials of all the interviewees.
5. The questions asked by the interviewer must be relevant. Unnecessary and unwanted questions
should be avoided.
6. The interviewer must listen to the answers given by the candidate.
7. The interviewer can record his remarks on the performance of the candidates.
8. The candidates must be happy that he has attended the interview.

WHAT ARE THE TYPES OF INTERVIEW?

1. STRUCTURED INTERVIEW:
In a structured interview the interviewer has a list of questions with answers prepared well in
advance. The candidates interviewed are asked questions only from the prepared list. Marks may be awarded
to the candidates based on the answers they give and thereby their suitability for the job may be assessed.

2. UNSTRUCTURED INTERVIEW;
In this case the interviewer does not keep any list of questions. He can ask any question that he
thinks is relevant and see how the interviewee respondents. Sometimes the interviewer may ask the
candidate to express his views on the job he has applied for the work he did earlier, the organizations he
served earlier, the present organization and so on. The interviewer, in this kind of an interview, is a patient
listener. He does not interrupt the interviewee nor does he give his opinions on what is stated.

3. DEPTH INTERVIEW:
As the very name suggests depth interview attempts to know the in-depth knowledge of the
candidate in his chosen field of activity. This type of interview is necessary where the candidates are
expected to be experts in performing the job to be assigned to them. For example, a person who is going to
be appointed as the office manager must be well versed in all aspects of office work.

4. STRESS INTERVIEW:
This kind of interview is necessary to select candidates for jobs that require tremendous amount of
patience, the capacity to overcome resistance or protest and the mental courage to overcome stress and
23
strain. Candidates, who are interviewed for such jobs as those of sales representatives, receptionists, public
relations officer etc.

5. BOARD OR PANEL INTERVIEW:

In this kind of an interview the candidate is interviewed simultaneously by a panel of experts. Such
an interview is necessary where the employer desires that assessment of the candidate by a group or a team
of experts is required. Each member of the board or panel may ask questions from certain specific areas.
One interviewer may ask questions pertaining to the candidate’s field of work, another person regarding his
interests and so on.

6. GROUP INTERVIEW:
In this case a group of candidates will be interviewed simultaneously. Such an approach is normally
used for the selection of management trainees. A practical problem is given to them and each one is asked to
discuss it to find a solution. The performance of each individual in the group discussion will decide whether
he will be selected or not.

WHAT ARE THE PROCESSES OF CONDUCTING INTERVIEW?

1. The day, time and venue of interview should be scheduled in convenience to both the interviewer
and the interviewee.
2. All the relevant information with regards to the interview should be revealed to the parties concerned
well in advance.
3. Proper guidelines must be given to the interviewer for references.
4. Interview must be mutual ensuring a sense of satisfaction to both the parties.
5. Interview should not be done hurriedly or end quickly.
6. Interview should be wide-ranging unbiased and complete.

CHECKING REFERENCES
The candidate would have already been required to mention in his application the names and
addresses of a few persons known to him. At this stage the employer may contact such persons and get
information regarding the conduct and character of the candidate.

JOB ANALYSIS

MEANING;
The employer must have been knowledge of the skills required to perform every job. Only then he
will be able to select “the right man for the right job”. Determining the worth of every job will help the
employer to fix the correct salary or wage for the individual concerned. The process of determining the
nature and contents of a particular job is what is known as job analysis. Such as analysis will bring out the
following;
1. The tasks to be performed in a given job.
2. The conditions under which the job has to be performed.
3. The skills and capabilities required to perform the job.

Advantages of job analysis:

1. It helps the employer to select the right man for the right job. It helps to identify the skills and
abilities required for a particular job.
2. It helps in the correct placement of employees.
3. Job analysis is useful in determining the training needs of an employee.
24
 4. Job analysis is helpful in job evaluation. The worth of a job can not be determined unless its content
is known.
5. It provides a suitable basis for an objective appraisal of the performance of employees.
6. It gives scope for work simplification.
7. Job analysis also helps the management in matters concerning employee promotion and transfer.
8. Once the content of a job is known, it is possible for any applicant to judge his own capabilities for
the job.
9. Job analysis further helps to maximize job satisfaction among the employees.
10. As standards of output can be logically determined in tune with the job content, disputes may not
arise between the workers and the management over the targets to be attained.

JOB DESCRIPTION
Job description is a written statement of the nature and content of a particular job. It is prepared on
the basis of information obtained through job analysis. It generally gives the following particulars about
each job:
1. Name/Title of the job.
2. Designation.
3. Department
4. Duties and Responsibilities.
5. Working conditions.
6. Accountability

JOB DESCRIPTION STATEMENT FOR ACCOUNTANT

1. NAME/TITLE OF THE JOB : ACCOUNTING

2. DESIGNATION : ACCOUTANT
3. DEPARTMENT : ACCOUTNS DEPARTMENT
4. DUTIES AND RESPONSIBILITIES : SHOULD BE ABLE TO PREPARE INDEPENDENTLY THE
FOLLOWING:
1. JOURNAL
2. LEDGER ACCOUNTS.
3. TRIAL BALANCE.
4. FINAL ACCOUNTS
5. BANK RECONCILIATION STATEMENT

5. WORKING CONDITIONS : 8 HOURS PER DAY AND 6 DAYS IN A WEEK

6. ACCOUNTABILITY : THE ACCOUNTANT WILL ASNWER THE ACCOUNTS

MANAGER DIRECTLY

25
 JOB SPECIFICATION

Having defined the various jobs and described their contents, the next step is to prescribe the
qualities and qualifications for the individuals who are going to perform the tasks. Job specifications is
concerned only with this aspect. Job specification may be defined as “the process of determining the
requirements sought in the individual for a given job”. It is based on job analysis and job description.

Job specification helps to choose the right man for the right job. Based on the specimen given above
for jobs description for job description another specimen may be prepared for job specification as shown
below:

JOB SPECIFICATION STATEMENT FOR ACCOUNTANT

1. NAME/TITLE OF THE JOB : ACCOUNTING

2. DESIGNATION : ACCOUNTANT

3. DEPARTMENT : ACCOUNTS DEPARTMENT

4. QUALIFICATION : B.COM FIRST CLASS OR M.COM

5. EXPERIENCE : MINIMUM 5 YEARS EXPERIENCE IN ACCOUNTING IN A

TEXTILE FIRM.

6. GENDER : ONLY FEMALE NEED APPLY

7. AGE : NOT MORE THAN 30 YEARS

JOB EVALUATION

The object of job evaluation is to assess the relative worth of different jobs performed in an
enterprise in order to determine the correct pay. For example, the job done by a clerk and that done by a
manager are not the same. The manager has greater responsibilities than what the clerk has. Moreover, the
merits and qualifications of the manager are greater than of the clerk. It is for these reasons that the manager
gets more pay than what the clerk gets.

Objectives;

1. To ensure that every employee gets his pay commensurate with his position, skill and extent of duty.
2. To guard against granting more pay to persons whose performance does not justify the increase.
3. To recognize merit in the matter of pay fixation even while fixing pay based on experience.
4. To ensure that there is no discrepancy in the pay of two or more persons doing the same type of
work.
5. To make sure that there is no discrimination in wage payment based on religion, gender, caste and
etc.

26
 FINAL SELECTION
The successful candidate who proves to be the best candidate for a job by passing through all of the
above mentioned selection stages is offered a formal, written the necessary salary details and rules and
regulation of the company. Appointment letter reveals to the candidate the post, the rank, the salary grade,
the date of joining and other terms and conditions in brief. It is to be counter signed by the candidate on
acceptance of his appointment.

INDUCTION AND ORIENTATION

Induction is the process of welcoming introducing and socializing the new entrants to the existing
group of people. It is also called orientation programme. It is done to make the new employees feel welcome
at the new workplace and with his senior employees. It facilitates interaction amongst employees and helps
them to get to know each other and develop a better inter personal relationship and rapport with colleagues.
Objectives:
1. To avoid insecure feeling of new entrants.
2. To get to know co-workers quickly.
3. To enable the new entrants feel at home.
4. To promote interpersonal relationship and self-confidence.
5. To overcome false impression and negative feeling about the organization.

****************UNIT – III COMPLETED************

REFERENCE BOOK:
J. Jayasankar,
K. Sundar, J. Srinivasan.

UNIT – IV
PERFORMANCE APPRAISAL
MEANING;
It is the process of making an assessment of the performance and progress of the employees of an
organization. Once an employee has been inducted into the organization and given the necessary training,
the next step is to assess his performance periodically. Such as assessment would indicate whether he is
efficient or not performance appraisal is also known as “Merit” rating (OR) “Efficiency rating”.

The following factors are given weightage in evaluating the performance and progress of an
employee:
1. Knowledge of work.
2. Extent co-operation with colleagues and superiors.
3. Initiative.
4. Quality of work.
27
 5. Target attainment.
6. Fitness, talent.
7. Degree of skill.
8. Discipline.
9. Punctuality.
10. Honesty.
11. Ambition.
DEFINITION:
“Performance Appraisal is the process of systematically evaluating performance and providing
feedback upon which performance adjustments can be made”.

-HUNT & OSBORN, 2004.

“Performance Appraisal is a comparison of actual performance with expected performance to assess
an employee’ contributions to the organization”.

-NELSON, 2004.
“Performance Appraisal may be defined as evaluating individual job performance as a basis for
making objective personnel decisions”.

-ROBERT KREITHER, 2004.

WHAT ARE THE FEATURES OF PERFORMANCE APPRAISAL?

1. It considers both the job performance as well as the personal qualities of an employee.
2. Every subordinate is assessed by his immediate superior.
3. Both the managers and the subordinates are subjected to appraisal.
4. The manner of evaluating is standardized to facilitate comparison.
5. Appraisal is done periodically and in a systematic manner.

WHAT ARE THE NEED FOR PERFORMANCES APPRAISAL?

1. Identifying employees for pay like, promotion, transfer, lay-off and discharges.
2. Determining training and development needs of employees.
3. Motivating employees through feedback on their work performance.
4. To provide a strong base for research and development in HR issues.

WHAT ARE THE OBJECTIVES OF PERFORMANCE APPRAISAL?

1. To review employee performance over a given period of time.
2. To measure the gap between actual and the expected level of performance.
3. To pave way for better communication integrity and control.
4. To minimize employee grievances.
5. To identify the employee’s strengths and weakness and to decide on training and development needs.
6. To provide feedback to the employees and guide them for optimal performance.
28
 7. To enable the employee to understand the importance of their functions and the expectations of the
management.
8. To judge and decide on operative functions such as recruitment, selection, training and career
planning.
EXPLAIN – DEVELOPING OF ADMINISTRATIVE PERFORMANCE APPRAISAL.
1. ESTABLISING PERFORMANCE STANDARDS:
The managers need to decide on what outputs, accomplishments and skills need to be evaluated. The
standards should have evolved job analysis and job description. They should clear and expressed in terms.

2. COMMUNICATING THE EXPECTED STANDARDS:

Once the standards are established, they need to be communicated to the employees concerned. The
transmission of standards should be ensured through feedback from employees on the basis of which
standards may have to be modified, if necessary. In other words, communication of standards should be a
two-way.

3. MEASURING THE ACTUALS:

Actual performance is measured in terms of information collected from different sources like
personal observation, statistical reports, performance records, oral reports etc. Measurement should be
purely facts and findings based.

4. COMPARING THE ACTUALS WITH THE STANDARDS:

Comparison may reveal the facts like over performance, under performance and near performance.

5. DISCUSSION WITH THE APPRAISE:

This is one of the most challenging tasks that the manager encourages in the appraisal process.
Appraisal makes the appraise know their strengths and weakness. The better should be convinced of his
weakness.

WHAT ARE THE MODERN METHODS OF PERFORMANCE APPRAISAL?

1. RANKING METHOD:
This is a conventional method of appraisal. Under this method, the employees in a group are given
marks by the superior according to their individual performance. The method resembles the one followed in
schools in preparing the progress reports of the students. The best employee gets the 1st rank, 2nd rack and so
on. For example:
Name of the student Shyam Mohan sunder Ashok Rahul Raj
Rank 3 1 2 5 6 4

2. GRAPHIC SCALE RATING METHOD:

This method of evaluating of employee is widely used in organization. The important qualities to be
assessed are determined first. The extent of fulfillment of each such quality by an employee is then tick
marked. For example:
Name of the employee: R. Mohan
Designation : Mechanic
Nature of work : Repair service
29
Qualities Excellent Good Bad Poor
Knowledge of work 
Quality of work
Quantum of work done
Co-operation

3. FORCED CHOICE METHOD:

In this case, the assessor has to assess his subordinates based on certain statements given to him.
These statements may indicate the positive as well as negative qualities of an employee. The evaluator has to
select those statements that describe the employee, who is assessed, in the best manner. For example:

Positive qualities Negative qualities

1. Very knowledgeable. 1. Shirks duties.

2. Good planner. 2. Undependable.
3. Very good in execution. 3. Non-cooperative.
4. Committed to work. 4. Poor in planning.
5. Sincerce. 5. Lack of communication.
6. Good communication skills. 6. Irregular.
7. Co-operative person. 7. Lack of initiative.

4. EASY APPRAISAL METHOD:

As the very name indicates this approach is descriptive in nature. The assessor in this case has to
write in detail about each of the subordinates whose performance he assess. For example: A superior may
manage five or six subordinates and knows the traits of each of them, be difficult for him to write about their
performance and progress. But the easy method is not free from limitations.

5. PAIRED COMPARSION:
In this case a subordinate in a group is compared with the other members. For example: if A,B,C, &
D are the subordinates working under S, A may be compared with B,C & D in respect of job knowledge,
initiative, co-operation and so on.

6. FIELD REVIEW METHOD:

This is an altogether difference approach to performance appraisal. In this case, an interview from
the personnel department of the organization would meet the supervisor and gather information on the
performance of the subordinates working under him. The supervisor may also be asked to suggest measures
to improve the subordinate’s performance.

7. CRITICAL INCIDENTS METHOD:

This is yet another different method. The evaluator in this case will be asked to record the behavior
of different subordinates when a critical incident takes place in the workplace. For example;

30
Name of the worker Re-action Score
P Ran away from the place 0

Q Informed the supervisor 2

R Gave T the necessary first aid 5

S Took T to the hospital 4

WHAT ARE THE ADVANTAGES OF PERFORMANCE APPRAISAL?

1. It helps to ensure that the right man has been inducted into the organization.
2. It helps to know whether the training given to an employee has been really effective.
3. Incurrent, commission and career advancement benefits may be fixed based on the employee’s
performance and progress.
4. It also provides a basis for promotion, transfer or even removal of an employee from service.
5. It is basically necessary to enable the employee himself to know where he stands in relation to the
other employees of the organization.
6. An employee whose performance is below the expected level may be given the necessary training to
do better.
7. The performance appraisal serves as evidence of an employee’s progress.

WHAT AR THE TECHNIQUES OF PERFORMANCE APPRAISAL?

TECHNIQUES OF PA

______________________________________________________________________

I.INDIVIDUAL EVALUATION II.MULTIPLE PERSON III. OTHER METHODS

METHODS EVALUATION METHOD

Ranking method Group appraisal

Confidential report

Paired comparison method HR accounting

Essay evaluation

Critical incident
Forced distribution method Assessment centre

Checklist and weightage

360 degree feedback system
Graphic rating scale

Behaviorally rating scale

Forced choice method

31
I.INDIVIDUAL EVALUATION METHOD:

1. Confidential report: It is mostly used in government organization. The report highlights the strengths
and weakness of the subordinates.

2. Essay evaluation: 1. Job knowledge and potential of the employee, 2. Employee’s understanding of the
company’s programmes, policies, objectives etc., 3. The employee’s relation with colleagues.

3. Critical incident: This is yet another different method. The evaluator in this case will be asked to record
the behavior of different subordinates when a critical incident takes place in the workplace.

4. Checklist and weightage: Another simple type of individual evaluation method is the checklist.

5. Graphic rating scale: This method of evaluation of employees are widely used in organization. This
method of evaluating of employee is widely used in organization. The important qualities to be assessed are
determined first. The extent of fulfillment of each such quality by an employee is then tick marked.

6. Behaviorally rating scales: Also known as the behavioral expectations scale, this method represents the
latest innovation in performance appraisal. It is combination of the rating scale and critical incident
techniques of employee performance evaluation.

7. Forced choice method: In this case, the assessor has to assess his subordinates based on certain
statements given to him. These statements may indicate the positive as well as negative qualities of an
employee. The evaluator has to select those statements that describe the employee, who is assessed, in the
best manner.

II.MULTIPLE PERSON EVALUATION METHOD;

1. Ranking method: This is a conventional method of appraisal. Under this method, the employees in a
group are given marks by the superior according to their individual performance. The method resembles the
one followed in schools in preparing the progress reports of the students. The best employee gets the 1 st
rank, 2nd rack and so on.

2. Paired comparison method: In this case a subordinate in a group is compared with the other members.
For example: if A,B,C, & D are the subordinates working under S, A may be compared with B,C & D in
respect of job knowledge, initiative, co-operation and so on.

3. Forced distribution method: In this case, the assessor has to assess his subordinates based on certain
statements given to him. These statements may indicate the positive as well as negative qualities of an
employee. The evaluator has to select those statements that describe the employee, who is assessed, in the
best manner.

III. OTHER METHODS:

1. Group Appraisal: An employee’s appraised by a group of appraisers. This group consists of the
immediate supervisor of the employee, other supervisors who have close contact with the employee’s work,
manager or head of the department.

2. HR Accounting: HRA is sophisticated way to measure the effectiveness of personnel management

activities and the use of people in an organization. It tries to place a value on organizational human
resources as asset and not as expenses.

3. Assessement centre: This method of appraising was first applied in German Army in 1930. The method
discussed before in addition to in-blanket, role playing, case studies and etc.
32
4.360 degree feedback system: It collects performance information from multiple parties, including one’s
subordinates’ peer, supervisor and customers. Corporate like, GE, Reliance, Wipro, Infosys, SBI, Thomas
cook and etc.

TRAINING AND DEVELOPMENT

TRAINING

INTRODUCTION:

The hectic competition the natural outcome of market economy forces business organization to
respond to customer’s need for quality, variety, customization, convinces and timelines. Meeting these needs
requires workforce which is technically trained on all respects. Training is no longer a luxury but emerging
as an unavoidable strategic necessity.

MEANING:

It is the process of imparting skill or job knowledge to a person. It takes an individual from where he
is to where he should do.

DEFINITIONS:

“The term training is used here to indicate the only process by which the skills, and abilities of
employees to perform specific jobs are increased”. -JUCIUS.

“Training is the organized procedure in which people learn knowledge and/or skill for definite
purpose”. -DALE S. BEACH

“Training is the act of increasing the knowledge and skills of an employee for doing a particular
job”. -EDWIN B. FLIPPO.

“Training is the set of activities that provide opportunity to acquire and improve job-related skills”.

-HUNT AND OSBORN.

“Training is the systematic modification of behavior through learning, which takes place as an
outcome of education, instruction, development and planned experience”. -MICHAEL ARMSTRONG.

WHAT ARE THE FEATURES OF TRAINING?

1. Imparity or increasing specific skills and knowledge for doing a job.

2. Purely job-oriented.
3. Short-term activity meant for operation.
4. Bridging the gap between what the jobs requires and what job holder possess, that is skills,
knowledge and attitude.
WHAT ARE THE NEEDS FOR TRAINING?
1. To enable new recruits to understand work.
2. To enable existing employees to update skill and knowledge.
3. To enable an employee who has been promoted to understand his responsibilities.

33
 4. To enable as employee to become versatile.
5. To enable the employees to adopt to change in work methods.
WHAT ARE THE PURPOSES OF TRAINING?
1. To enable the existing and new employees to acquire the required job knowledge.
2. To enhance employee skills to work with new technology.
3. To help employees equip themselves to the changing needs of the organization.
4. To improve employee work efficiency and performance.
5. To meet the challenges posed by competition.
6. To enable the employees to acquire better/higher job/position.
7. To develop healthy attitude to achieve both personal and common goals.
WHAT ARE THE OBJECTIVES OF TRAINING?
1. To impact job knowledge and skills to the new entrants for higher performance.
2. To bridge the gap between the current and future performance.
3. To improve employee efficiency and job satisfaction.
4. To reduce employee turnover and absenteeism.
5. To enhance the quality of output.

WHAR ARE THE IMPORTANCES OF TRAINING?

1. IMPROVE SKILL AND KNOWLEDGE:
This helps the employee to perform his job much better. This benefits the organization as well.
Training, certainly, results in improvement in the skill and knowledge of the employee.

2. HIGHER PRODUCTION AND PRODUCTIVITY:

If an enterprise has a team of well trained employees, it will be also to expand its production. There
will be a rise not only in production in terms of number of units but also in productivity. Productivity is the
input-output ratio.

3. JOB SATISFACTION:
Well-trained employees are able to perform their jobs with a higher degree of skill. This increases
their level of self-confidence and commitment to work. Such employees are bound to have a higher level of
job satisfaction.

4. BETTER USE OF RESOURCES:

Trained employees will be able to make better use of the materials and machines. This reduces the
rate of wastages and spoilage of materials and also breakage of tools and machines. The maintenance cost
too is bound to come down.

5. REDUCTION IN ACCIDENTS:
Trained employees are aware of the safety precautions to be taken while at work. They are always
alerts and cautions. This is bound to bring down the number of accidents in the work place.

6. REDUCED SUPERVISION:
Well-trained employees do not need much supervision. They can do their work without having to
approach their superiors often for guide. This enables the superior to manage more employees. In other
words, he can have a wider span. This reduces the cost of supervision.

34
7. REDUCTION IN COMPLAINTS:
Only bad workers blame the tools. An employee who has acquired the necessary skill and job
knowledge would certainly lobe his job. Such an employee does not complain about anyone and anything.

8. ADAPADIBILITY:
Trained workers do not resist change. They have the capacity to adapt themselves to any kind of
situation. They are good in crisis management too. This indeed is beneficial for the organization.

WHAT ARE THE TYPES OF TRAINING?

1. CONGNITIVE TRAINING:
There is more of training giving theoretical training to the trainees. The various methods under
cognitive approach provide the rules for how to do something, written/verbal information demonstrate
relatinshps among concepts.

-Lecturers.
-Demonstration.
-Discussions.
-Computer based training.

2. BEHAVIORAL TRANING:
There is more of giving practical training to the trainees. The various methods under behavioral
approach allow the trainee to behavioral in a real fashion. There methods are best used for skill
development.

-Behavioral modeling.
-Business games.
-Case studies.
-Equipment.
-Role plays.

WHAT ARE THE VARIOUS METHODS INVOLVED IN TRAINING?

The trainee learns by actually doing the work in “on the job method”. Simulation method which
allows more participation is appropriate to bring about a behavioral or attitudinal change in the participants.
However, different methods are suitable for imparting different kinds of skills. Besides skills, training
methods differ for managerial and non-managerial employees. Broadly, training method can be categorized
into “on the job” and “off the job” training.

METHODS OF TRAINING

ON-THE JOB TRAINING OFF-THE TRAINING

1. Induction training 1. Lecturers/conference.

2. Apprenticeship training 2. Role playing
3. Refresher training 3. Case study
4. Job rotation 4. Management games
5. Placement as assistants 5. Brain storming.
6. Vestibule training 6. Sensitivity training

35
I.ON – THE JOB TRAINING:

1. INDUCTION TRAINING:
It is also known as “Orientation Training”. It is required for all new employees. A person who has
just been inducted into an organization must be informed of his duties. The nature of his work nmust be
clearly explained to him. For example, a person who has been appointed as a clerk in the office must know
the specific task he has to perform – whether records management, amil checking, maintenance of accounts
or cash management.

2. APPRENTICESHIP TRAINING:
This is a conventional or a traditional method of training. In such a method, the trainee, called
“apprentice”, is placed under a qualified senior worker. The apprentice learns the work by observing and
assisting his senior. In the case of jobs requiring skill, apprenticeship training is the most suitable method to
impart knowledge and skill. Machinists, electricians, welders, plumbers etc, usually learn their jobs by
working as apprentices.

3. REFRESHER TRAINING;
The object of refresher training is to enable the workers to constantly update their job knowledge.
The knowledge and skill of the workers in our business establishments tends to become outdated due to the
advancement in science and technology. The workers, therefore, need to update their skill failing which they
will be branded as obsolete. They must become familiar with the newer methods of work.

4. JOB ROTATION;
This kind of training enables an employee to become well-versed in different kinds work, each of
which is not totally different. Clerks in banks are usually subjected to job rotation. In a bank the employee is
made to serve in different sections – savings bank, current account, fixed deposit, cash and so on. This
enables him to become versatile as far as the bank job is concerned.

5. PLACEMENT AS ASSISTANT:
It is not uncommon to find certain designations in an organization as “Assistant Accounts Manager”,
“Assistant Production Manager”, “Assistant Sales Manager” etc. such designations only imply that these
executives are going to be posted as “Accounts Manager”, “Production Manager”, “Sales Manager”.
Respectively in future when vacancies arise.

6. VESTIBLUE TRAINING:
It refers to a training school established within the factory premises. The working conditions and
facilities in such a training school are so created that the place of training almost resembles the actual
workplace. Instructors specifically appointed for the purpose will train a large number of workers in such a
school.

II.OFF – THE JOB TRAINING:

1. LECTURERS AND CONFERENCES:

There are experts in different functional areas of management like marketing, finance, and personnel
etc., who impart training through lectures. The participants have to register for specific programmes by
paying the course fee. The sponsoring organizations usually pay the fees for their candidates.

2. ROLE PLAYING:
It is a training method in which the participant trainees are to enact the roles given to them. In a role-
playing session, a specific organizational problem may be explained to the trainee group and each
participant may be asked to act in the manner he would if he were the decision maker. The success of role
playing as a technique of training depends very much on the seriousness with which the participants play
their roles. However, it may be said here that the manner in which a person reacts in a real life situation is
bound to be different from his reactions in a hypothetical situation.

36
3. CASE STUDY:
In case study method, the trainees are given an organizational problem in written form. The problem
may be something that has been experienced in some workplace or may even be an imaginary one. The
participants may be asked to analyze the cause of the problem, suggest alternatives solutions and also
indicate the best solution in the prevailing conditions.

4. MANAGEMENT GAMES:
Different groups of trainees participate in a management game. The trainer specifies a certain
situation in which each group has to make decisions in the specific area assigned to it. For example, the
trainer may ask the different groups to make certain important decisions regarding pricing, sales promotion,
distribution and etc. under conditions of cut-throat competition. One group may decide on price, another on
sales promotion, another one distribution and so on.

5. BRAIN STORMING:
It is a technique used to solve a certain important organizational problem. For example, lack of
product acceptance in the market is a serious problem that does not concern the marketing department alone.
The executives of production, marketing, finance and other department, in such a situation, need to meet and
discuss. In such a session, each individual is free to come out with these ideas. This may certainly help to
find an optimum solution.

6. SENSITIVITY TRAINING:
Such a method of training has been developed with the object of promoting good human relations
among the trainees. The sensitivity training group is called the T-Group. The actual training involves
interaction between members of a small group that has no formal agenda.

MANAGEMENT DEVELOPMENT

Development is related to the all-round progress of an employee. A development programme enables

executives to acquire skills in their present jobs and capabilities to perform future jobs better. It is related to
the all-round progress of executives. While development is considered to be more general in nature and
more oriented towards individual needs them the needs of the job and it is mainly meant for the managerial
personnel.

WHAT ARE THE IMPORTANCES OF MANAGEMENT DEVELOPMENT/

1. Management training at the turn of this century:

In the past, organizations developed managers, first by recognizing an individual’s strong
occupational knowledge about the organizational products or services. The individual were promoted to first
level positions that included work direction. These directions had little training about supervision. For
example: about delegating, interpersonal skills, management, career developments etc.

2. Management training in the 50s to 80s:

Management training focuses on covering standard topics or types of activities in the organization.
For example planning, organizing, finances, sales, accounts etc. Students would immerse themselves in the
current course, and then leave that course to immerse in the next.

3. To progressive management development programmes:

With the human relations movement, training programmes recognized the need to cultivate
supervisors skills. For example, Delegating, career development, motivating, coaching and so on.

37
WHAT ARE THE OBJECTIVES OF MANAGEMENT DEVELOPMENT?

1. Tone up management performance in terms of profitability, market share and innovativeness.

2. Making the organization adapt to its changing environment.
3. Preparing people face to organizations problems and contribute creative solutions to the problems.
4. Improving internal relations, level of trust and support among role players.
5. Developing strategic solution to the problem.
6. Increasing commitment, self-direction and self-control

WHAT ARE THE METHODS OF MANAGEMENT DEVELOPMENT?

1. Mentoring:
It refers to a personal development relationship in which a more experienced or more knowledge
persons helps a less experience or less knowledge person.

2. Techniques:
-Accompanying.
-Catalyzing.
-Showing.

3. Coaching:
It refers to the activity of a coach in developing the abilities of coaches/clients. Coaching tends to
focus on the achievement by coaches of a goal or specific skills.

4. Job rotation:
It is an approach to management development where an individual is moved through schedule of
assignment designed to give him or her breadth of exposure to the entire operation.

5. Professional development:
It refers to skills and knowledge attained for the both personal development and career development.
Approaches to professional development:
-case study method.
-consultation.
-coaching.
-lesson study.
-practice.
-supervision.
-technical assistance.

6. Supervisory training:
The term training refers to the acquisition of knowledge, skills and competencies as a result of the
teaching of vocational/practical skills and knowledge that relate to specific useful competencies. It forms the
core apprenticeships and provides the backbone of content at institutes of technology.

************UNIT – IV COMPLETED*****************
REFERENCE BOOK:
J. Jayasankar, K. Sundar, J. Srinivasan.

38
 UNIT – V
QUALITY OF WORKLIFE
INTRODUCTION:
The nature of the work environment determines the general health of any organizations. The work
environment is considered favorable when the following conditions are present:
1. A good system of employee compensation.
2. Job security and satisfying careers.
3. Good employer-employee relationship.
4. Greater employee participation in management decision.
5. Open communication.
6. Excellent facilities for developing employee skills.
7. Greater commitment on the part of employee.
8. Higher level of job satisfaction.
9. Greater motivation and higher employee morale.
10. Absence of excessive stress conditions.
11. Absence of excessive complaints and grievances.
12. Low rate of absenteeism and labor turnover.
This chapter focuses attention on the concept of quality of work life which refers to the favorable or
unfavorable of the work environment.

MEANING:
In simple terms QWL refers to the extent to which the members of an organization find the work
environment conducive. It is concerned with improving labor-management co-operation to solve many
organizational problems, achieving the level of performance and securing greater employee satisfaction.

DEFINITIONS:
“QWL is the degree to which members of a work organizations are able to satisfy important
personnel needs through their experience in the organization”. -J. RICHARD AND J. LOY.

“QWL is the degree to which work in an organization contributions to material and psychological
well-being of its members”. -HARRISON.

“It is a process of joint decision-making, collaboration and building”. -COHAN

WHAT ARE THE OBJECTIVES OF QWL?

1. To attract and retain talented employees.
2. To tone down employee’s stress level and burnout.
3. To facilitate proper balance between work and life.
4. To promote a greater job satisfaction, employee engagement and retention of high net-worth
employees.
5. To heighten the productivity and job satisfaction of employees.
39
EXPLAIN – CONCEPTS OF QWL.

1. ADEQUATE AND FAIR COMPENSATION:

The remuneration payable to the employee must be adequate and fair. It must provide the employee a
reasonable standard of living and should also be comparable to the pay of employees doing similar jobs.

2. SAFE AND HEALTHY WORKING CONDITIONS:

The level of efficiency of the employee is much determined by the physical working conditions in
the workplace. Natural lighting, ventilation, pollution free, good atmosphere and etc.

3. OPPORTUNITY TO UTILISE AND DEVELOP HUMAN CAPACITIES:

The work assigned to every employee enable him to work to his potentials. Steps must be taken to
remove the monotony element of certain jobs.

4. BETTER CAREER PROSPECTS:

Employees do not generally favor stagnation in their career path. They look for every opportunity to
move to superior positions. It is therefore, the duty of every employer to provide suitable career
opportunities for his employees to secure their loyalty towards the organization.

5. SOCIAL INTEGRATION IN THE WORK FORCE:

The work environment must be such that the employee is able to develop a feeling of self-esteem,
openers, trust and confidence.

6. CONSTITUTIONAL PROTECTION:
The employees should get constitutional protection under QWL. They should have freedom of
speech and should be able to challenge the actions of the employer on any matter.

7. PROPER BALANCE BETWEEN WORK AND PERSONAL LIFE:

Under QWL the employee should be able to pay equal attention to his work and domestic
responsibilities. This family life should not be strained because of work, frequent business travel, transfer
etc.

EXPLAIN – MEASURES TO IMPROVE QWL.

1. Pay and stability of employment.

2. Reduce/eliminate occupational stress.
3. Employee health.
4. Alternative work schedule.
5. Participative management.
6. Recognition.
7. Supervisor-worker relationship.
8. Grievance procedure.
9. Adequacy of resources.
10. Seniority and merit in promotions.
WHAT ARE THE BENEFITS OF QWL?
1. Higher production and productivity.
2. Greater job satisfaction.
3. Low rate of absenteeism.
40
 4. Low rate of labor turnover.
5. Greater motivation.
6. High employee morale.
7. Reduction in complaints and grievances.
8. Reduction in stress conditions.
9. More loyal workers.
STRESS MANAGEMENT
A person undergoes stress when he feels that he is ill-equipped to carry out the tasks assigned to him.
Not everyone undergoes stress in a workplace. It is also not possible to explain precisely the situation that
would give scope for stress because; many individuals are capable of performing their tasks irrespective of
the work situation. Total absence of stress may affect performance. A person needs to undergo a certain
level of stress of perform well. Excessive stress is harmful. When stress exceeds a certain level, it can have
adverse effect on a person’s emotions, mental and physical health.

WHY DOES STRESS ARISE?

The various factors that come stress can be grouped under:

I. PERSONAL FACTORS:

-Ability.
-Perception.
-Manner of approaching crisis.
-Level of self-confidence.
-Experience.
-Desire for work.
-Beliefs.
II. ORGANIZATIONAL FACTORS:

- Nature of job.
- Superior-subordinate relationships.
- Inter-personal relationships.
- Target to be reached.
- Time pressure.
- Physical working conditions.
- Hours of work.
- Biased assessment of performance.
- Greater responsibility.
- Pressures like demotion, suspension, transfer and etc.

PROMOTION

Promotion may be defined as an upward movement of an employee’s position in the enterprise. An

employee who has been promoted moves to a higher level job that gives higher salary, greater authority and
accountability as well.

WHY PROMOTION?

1. Vacancies arise in any organization due to the retirement, resignation, death or disablement of
employees.
2. An employee may be given promotion in recognition of his merit services to the enterprise.
41
 3. Opportunities for promotion who induce the employees to put in greater efforts to acquire higher
qualifications and to enhance their skills.
4. Promotion is also necessary to keep the level of job satisfaction and morale of the employees high.
5. An organization dies not provide any scope for promotion for its employees may have to face higher
rate of labor turnover, that is, employee resigning their jobs.
EXPLAIN – CRITERIA FOR PROMOTION.
1. SENIORITY:
The length of service of the employee in the present organization determined his seniority. If the
employee has served in certain other organization also before joining the present organization the
length of his service may be determined by taking into account his service in such other
organizations as well.
2. MERIT:
The merit of the employee is determined by his performance. Weightage may also be given for his
qualifications and academic achievements.

TRANSFER
It refers to lateral movement of an employee within the same grade from one job to another. In the
words of Flippo, “A transfer is a change in the job accompanied by a change in the place of job without a
change in the responsibilities or remuneration”.

Transfer may be perament or temporary – permanent transfers are effected due to charge in work
load, death, retirement or resignation of some employees. Temporary transfer arises due to ill health,
absenteeism etc. of the some employees.

Transfer of an employee takes place when he is shifted:

1. From one section to another: A record clerk in an office may be transferred to cash section.
2. From one department to another: A Mathematics Professor in a college may be transferred from the
Maths Department to the commerce department to teach maths for the commerce students.

3. From one branch to another; A clerk in natinalised bank in, say, Anna Nagar Branch in Chennai may be
transferred to the T.Nagar Branch.

4. From one town to another: The employees in State Government service in Tamilnadu are liable for
transfer to any place within Tamilnadu.

5. From one state to another: the employees in the Central Government service in India are liable for
transfer to any state within India

WHY TRANSFER?

1. Transfer due to vacancy: When an employee is considered surplus in the place where he is presently
working and there is a vacancy in another place where the enterprise has its office or branch, the employee
may be transferred to such other place. Such a transfer may be called transfer due to vacancy.

2. Promotion transfer: An employee getting promotion, as a Branch Manager may be transferred to a

branch that requires a Manager. Such a transfer may be called promotion transfer.
42
3. Compulsory transfer: If the organization has policy of transferring its employees at regular intervals to
different places, the employees must accept such a transfer. For example, the teachers in the state
government service in Tamilnadu will be transferred once in five years within the state.

4. Punishment transfer: An employee showing negligence in his duties may also be transferred as a
measure of punishment. Such a transfer is called punishment transfer.

5. Request transfer: Transfer may also take place when an employee, due to personal reasons, requests
his/her employer to transfer him/her to a specific place and the same is accepted. Such a transfer is called
request transfer.

6. Mutual transfer: Sometimes, there may be two persons working for the same organization in two
different places and each of them may be willing to get transferred to the place of the other.

TERMINATION OR DISMISSAL OF SERVICE

This is yet another punishment measure. An employee may be dismissed from service under the
following circumstances:-

1. If the explanation offered by a suspended employee is found to be unsatisfactory.

2. If the employee is party to any illegal transaction and is caught red-handed or has committed some
other crime.
3. If he is absent for long without a valid leave application.
4. If his where about are not known.

CAREER PLANNING
MEANING:
Every individual has his own job ambitions. To fulfill all such ambitions one has to acquire the
necessary qualifications and skills. He should also find an organization that is prepared to take him. While in
service, the individual has to constantly update his job knowledge and skill and only than he will be able to
more to higher positions. The career of a person, thus, is not something totally determined by him. It is
determined by the efforts made by the individual to equip himself for a particular position and the
willingness of his employer to place him in that position.

DEFINITION:

“EDWIN B. FLIPPO has defined a career as “a sequence of separate but related work activities that
provide continuity, order and meaning in a person’s life”.

Careers, thus, is an individually perceived sequence of attitudes and behaviors associated with work-
related experiences and activities over the span of a person’s life”.

Sales manager

Senior sales executives

Junior sales executives

Sales officer

Sales representative

43
WHAT ARE THE DIFFERENCE BETWEEN CAREER PLANNING AND MANPWER
PLANNING?

S.NO CAREER PLANNING MANPOWER PLANNING

1. It is the responsibility of both the employee and the It is the responsibility of the management
management. alone.

2. It gives importance to the development of the It gives utmost importance to the selection of
human. the right man for the right job.

3. It is a process by which a person selects career It is a process by which an organization

goals and the path to reach these goals. strives to move from its current manpower
position to the desired manpower position.

4. It is concerned with the positions a person is fit to It is concerned with the task of identify the
hold in an organization. vacancies in an organization.

5. It starts after recruitment and selection of It precedes the recruitment of candidates for
candidates. jobs.

6. It helps to retain competent persons. It helps to overcome the problem of either

surplus or shortage of labor.

PROMOTION POLICY

It is defined as the advancement of an employee to a higher job carrying higher responsibilities and
higher status. It usually results in higher earnings. The better job to which an employee is promoted requires
higher knowledge and skills.

1. Offers incentives:
The hope of promotion makes the staff strive for equipping themselves well. In the absence of
promotion they may have to languish in the same old job. They will soon develop which will greatly affect
the standard of work performance.

2. Recognition of skill:
Since it is a way of recognizing the skills and abilities of the employees, they put forth the best in
them to acquire proficiency.

3. Avoid quits:
The policy of filling senior vacancies from within the staff from leading the concern in search of
better prospects. Thus, promotion retains of better interests in the firm.

4. Reward loyalty:
The promotion is also a reward for staying with the firm for long. Since all the details about the
employees and their standard are available with the office, only right and deserving staff will be promoted.

44
 INTERNAL PROMOTION SYSTEM

Although, I’m a staffing firm owner who profits when our clients hire new employees from my firm.
I feel compelled to say that many times businesses are better off if they promote from within. Here’s why
often internal or current employees can make the best available candidates become they are;

1. Hire a person quality employee who fit into your company culture but who has a couple of known
flaws or gaps in his or her experience.
2. Hire unproven employees who interviews well but who may have a couple of flaws that you don’t
yet know about.

WHAT ARE THE DIFFERENCE BETWEEN SENIORITY AND MERIT?

S.NO SENIORITY MERIT

1. Simple to understand and executed. Recognition to hard work and skills.

2. Respect to old employees. Motivation for improvement.

3. More objective criteria. Higher productivity.

4. They should not depend others. But, here they depend upon senior
employees.

5. They know very well about the company and its Here, they have to know and understand
profile. company and profile.

WHAT ARE THE BENEFITS OF EFFECTIVE PROMOTION POLICY?

1. Recruiting:
Being known as an employer who offers opportunities for career advancement is attractive to
prospective hires. Interviewees are impressed when they meet employees who have steadily moved up the
ranks.

2. Retention:
When new employees see that opportunities exist for them and that there’s a track record of hiring
from within they tend to stay longer with your company.

3. Cost savings;
The cost of recruiting interviewing and on boarding new employees can the cost of training current
employees for certain new skills.

4. Flexibility:
Newly promoted staff can assist with the training their replacement. They are available for questions
and can occasionally fill in at their old position if needed in emergencies.

5. Culture:
Existing employees fit in the with the company culture.

45
WHAT ARE THE OBJECTIVES OF TRANSFER?

1. Specify the circumstances under which transfer will be made. There should be in writing and should
be communicated to the employees.
2. Specify the basis for transfer, that is, whether transfer will be made on the basis of seniority/skill
competency.
3. Decide the authority which would handle transfer.
4. Specify the jobs to which transfer will made and duties and safety on assumption of new jobs should
be clarified.
5. Indicate whether transfers can be made within departments.
6. Not to be made frequent and not for the sake for transfer only.

EMPLOYEE TERMINATION

It is just opposite to promotion. It is the downward movement of an employee in the organization

hierarchy. It affects the status, pride, career and income of the employee. Resignation is termination of
service by an employee by servicing notice called resignation.

DISMISSAL

This may occur either on account of unsatisfactory performance or misconduct. Persistent failure on
the part of employee to perform up to the expectations or specified standard is considered as unsatisfactory
performance will full violation of rules and regulations by the employees is treated as misconduct.

*************** UNIT – V COMPLETED**************

REFERENCE BOOK:
J. Jayasankar,
K. Sundar, J. Srinivasan.

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