B.B.A. II Year.

Subject: Human Resource Management

SYLLABUS
Class: - B.B.A. II Year
Subject: - Human Resource Management
UNIT – I Introduction: Importance of Human Resource Management –
Meaning, Nature and Scope, Functions and Role of HR Manager –
Objectives- Human Resource Planning (HRP) – Process and
Limitations

UNIT – II Career Planning- Characteristics & Limitations, Job Analysis-

Components, Process, job Description, Job Specification, HR
Audit- Approaches, Objectives, Recruitment- Internal and
External sources, Methods, Selection- stages

UNIT – III Placement, Induction, Orientation, Training and its types,

Development, Employee Engagement

UNIT – IV Performance Appraisal- Objectives & Methods, Job Evaluation-

Factors & Methods

UNIT – V Administration of welfare, types of welfare activities,Employee

grievances- Forms and Effects, Need forredressal, Collective
Bargaining, International LabourOrganisation (ILO), Employee
Empowerment- Methods & Advantages, Quality Control and its
benefits

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B.B.A. II Year. Subject: Human Resource Management

UNIT-I

“HR IS THE MOST VIBRANT AND DYNAMIC RESOURCE” – P. SUBBA RAO

Introduction:-
Henry Fayol the pioneer in the field of management state “Take out my building take out my machines and
all capital but leave my men with me, I will become Henry Fayol again”. This statement of Henry Fayol
highlights that human resources in an organization plays a crucial role.
The Human Resource represent the ‘people at work’.
The human resource refers to the knowledge, skills, abilities, values, aptitude & beliefs possessed by the
workforce in organization.

Human Resource Management:-

HRM is a process of bringing people & organization together so that the goals of each are met. It is the part of
the management process which is concerned with the management of human resources in an organization &
tries to secure best from the people by winning their wholehearted co-operation. In short, it may be
definedas the art of procurement, developing and maintaining competent workforce to achieve the goals of
an organization in an effective and efficient manner.

Definitions:
1.According to Edwin Flippo: HRM is planning, organizing, directing, controlling of procurement,
development, compensation, integration, maintenance & separation of human resources to the end so that
individual, organizational & social objectives are achieved.
2. HRM is the organizational function that deals with issues related to people such as compensation, hiring,
performance management, organization development, safety, wellness benefits, employee motivation,
communication, administration &training.
3. HRM is the process of attracting developing & maintaining a talented & energetic workforce to support
organizational mission, objectives & strategies.

Nature of HRM:
1. Pervasive function
2. Action oriented: Scope of HRM is not only limited to record keeping.
3. Individually oriented
4. People oriented
5. Future oriented
6. Development oriented
7. Integrated Function
8. Comprehensive function: It covers all the type of personnel.
9. Auxiliary service: It is a staff function(Advice)
10. Inter disciplinary function
11. Continuous function
12. Involves team sprit & team work
13. Management function

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B.B.A. II Year. Subject: Human Resource Management

HUMAN

RESOURCE

MANAGEMENT

Scope of HRM:

Recruitment &
HR planning Job analysis
Selection

Orientation & Training & Performance

induction development Appraisal

Compensation Motivation,
Industry
Planning & Welfare, Health
Relations
Remuneration & Safety

1. HR planning: HRP refers to a process by which the company identifies the no. of jobs vacant,
whether the company has excess staff or shortage of staff & to deal with this excess or shortage of
staff.
2. Job analysis: It gives a detailed explanation about each & every job in the company.
3. Recruitment & Selection: Recruitment is searching for the prospective employee & selection is a
process used to identify & hire individual.
4. Orientation & induction: once a employee is being selected an induction program is conducted.
5. Training & development: Every employee goes under training program which helps him to put up a
better performance on the job.
6. Performance Appraisal: HR department conducts appraisal programs & based on that appraisals
decide future promotions, incentives, increments in salary etc.
7. Compensation Planning & Remuneration: Compensation Planning ensures that jobs are fairly
compensated and more difficult jobs are paid more. It ensures equal pay or equal work.

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B.B.A. II Year. Subject: Human Resource Management

8. Motivation, Welfare, Health & Safety: It deals with working condition and amenities such as
canteens, crèches, rest and lunch rooms, medical assistance, education, health and safety, recreation
facilities.
9. Industry Relations: It includes maintaining relation with the union members, settlement of
disputes, grievances handling.

Objectives of HRM –
1) Procurement of the Personnel
2) Effective Utilization of Human resources
3) To Build Desirable Working Relationships
4) Maximum Individual Development
5) To Secure Integration
6) To Satisfy, Individual Needs and Group Goals
7) Development of Team Work
8) Raising Morale of Employees
9) Maintaining Good Relations Between Employer and Employees
10) To Create Disciplined Atmosphere

Functions of HRM:
The functions of HRM can be broadly classified into two categories:
1. Managerial Functions 2. Operative Functions 3. Advisory Functions

(I). MANAGERIAL FUNCTIONS:

i. Planning: In the area of human resource management planning involves deciding human
resource goals, planning human resources, requirements, recruitment, selection,
training etc.
ii. Organising: It is concerned with proper grouping of personnel activities, assignment of duties and
delegation of authority.
iii. Directing: It involves the process of motivating, leading, supervising, activating and guiding the
personnel as and when necessary.
iv. Controlling: It involves measurement of employees performance & taking corrective action.

(II). OPERATIVE FUNCTIONS:

Operative functions are related to specific activities of personnel management through:
1. Procurement or Employment function
2. Development function
3. Compensation Function
4. Integration Function
5. Maintenance

1) Procurement or employment function:

Employment is concerned with securing & employing the right kind and proper number of people
required to accomplish the organizational objective. It consists of the following activities:
a. Job Analysis: It is the process of studying in detail the operations and responsibilities
involved in a job.
b. HR Planning
c. Recruitment
d. Selection
e. Placement
f. Induction or orientation
g. Transfer, Promotion & Demotion
h. Discharge & Separation
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B.B.A. II Year. Subject: Human Resource Management

2) Development Function: It is the process of improving, molding & changing the skill knowledge,
creativity, attitude, values, commitments etc. of employees so that they can perform the present and
future jobs more effectively. It includes:
a. Performance appraisal and potential appraisal
b. Training
c. Management Development: It is the process of developing managerial talent through
appropriate programmes.
d. Career Planning and Development: It involves planning the career of employees and
implementing career plans so as to fulfil the career aspiration of employees.

3) Compensation Function: It is the process of providing adequate equitable & fair remuneration to
the employees. It includes:
a. Job Evaluation: It is the process of determining the relative worth of a job.
b. Wage & salary administration: It implies developing and operating a suitable wage and
salary programme.
c. Bonus& incentives
d. Fringe Benefits: These are the various extra benefits provided to employees in addition to
the compensation paid in the form of salary or wage. Ex .Recreation facilities, Education
facility to children etc.
e. Social Security Measures: Ex. Medical benefits, sick benefits, maternity benefits etc.

4) Integration Function: It is the process of integrating the goals of an organization with employees
goals through various employee oriented programmes. It includes
a) grievances handling,
b) Instituting proper disciplinary measures,
c) Employee participation
d) Communications
e) Counseling
f) Collective Bargaining
g) Discipline
h) Conflict Management
i) Quality of Work Life
j) Industrial Relations

5) Maintenance:It is concerned with the perpetuating a willing and able workforce. It involves
protecting and promoting the physical and mental health of employee. It includes –
a. Health and Safety
b. Medical Services
c. Protection and Security
d. Social Security
e. Compliance with Labour Laws
f. Employee Benefits and Services
g. Personnel Research
h. Personnel Records.
III) ADVISORY FUNCTIONS
1) Service Provision
2) Advice and Guidance to Line Managers
3) Staff Role-Advice, Counsel, and Recommendation to Top Management
4) Support and Assistance
5) Line Functions
6) Coordinate Function
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B.B.A. II Year. Subject: Human Resource Management

7) Innovative Function
8) Employee Advocacy Role and Function

IMPORTANCE OF HRM
1) Important Task of Management
2) Achievement of Enterprise Goals
3) Realization of Intrinsic Abilities
4) Satisfaction from Work
5) Nervous System of the Organization
6) Effectiveness and Economy of Operations
7) Basis of Success
8) Performs the Toughest Job: Dealing with the Human Beings
9) Managerial Necessity
10) Twofold Role
11) Overcoming Competition
12) Managing Environment
13) Utilization of Human Resources
14) Building Team Work

ROLE OF PERSONNEL MANAGER:

Administrative role Operational role Strategic role

• Policy Maker • Recruiter • Change Agent

• Administrative • Trainer • Strategic Partner
Expert • Developer
• Advisor • Motivator
• Housekeeper • Coordinator
• Counselor • Mediator
• Welfare Officer
• Legal Consultant

HR managers perform different type of roles. They are as follows:

1. Administrative role
2. Operational role
3. Strategic role

1. Administrative role: It includes:

• Policy Maker: Hr manager helps management in the formation of policies governing talent
acquisition and retention, wage and salary administration, welfare activities etc.
• Administrative Expert: Here the role of HR manager is heavily oriented to processing and
record keeping.
• Advisor: Personnel management is not a line responsibility but a staff function. Staff
function advices, suggests, counsel and help the line managers in discharging their
responsibility.
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B.B.A. II Year. Subject: Human Resource Management

• Housekeeper: It includes recruiting, pre-employment testing, refrence checking, employee

surveys, wage and salary administration etc.
• Counselor: The personnel manager discusses various problems of the employees relating to
work, career, their supervisors, colleagues, health, family, financial, social etc and advises
them on minimizing and overcoming problems, if any.
• WelfareOfficer: As a welfare officer he provides and maintains canteens, hospitals, crèches,
clubs, libraries etc.
• Legal Consultant: Personnel manager plays a role of grievance handling, settling of
disputes, handling disciplinary cases, doing collective bargaining etc.

2. Operational roles:
• Recruiter
• Trainer, developer, motivator
• Coordinator
• Mediator/Linking pin

3. Strategic Roles: The strategic role of HR management focuses attention on how to enable
ordinary employees to turn out extra ordinary performance, taking care of their ever changing
expectations.
• Change Agent: HR’s role as a change agent is to replace resistance with resolve, planning
with results and fear of change with excitement about its possibilities.Hr helps an
organization identify the key success factors for change and assess organization’s strength
and weaknesses.
• Strategic Partner:Hr role is to deliver strategic services cost effectively by building a
competent, consumer oriented workforce. It must assume important roles in strategy
formulation as well as strategy implementation.

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B.B.A. II Year. Subject: Human Resource Management

UNIT-II

JOB ANALYSIS

‘Job’ consists of a group of tasks that must be performed for an organization to achieve its goals.

Career
Occupation
JobFamily
Job
Position
Duty

Task

The Job Analysis Information Hierarchy

Job analysis is a formal and detailed examination of jobs. It is systematic investigation of the tasks, duties,
responsibilities necessary to do a job.

Job analysis is the procedure through which we find out (1) what the job entails, and (2) what kinds of
people (in terms of skill and experience) should be hired for the job.

Characteristics:
• Formal & Detail study
• Dynamics
• Comprises four components: Job description, job specification, job performance standards and role
analysis.
• Different from motion and work study (Taylor)
• It is taken up at three times: (a) When the organization starts and a ‘work design programme’ is
initiated; (b) when new jobs are created; and (c) when jobs undergo drastic changes as a result of
new methods, procedures, systems or technology.
• Pervasive

Uses of Job Analysis –

1) Human Resource Planning – Job analysis helps in forecasting human resource requirements in
terms of knowledge and skills. It also helps in determining quality of human resources needed in an
organization.
2) Recruitment – Job analysis is used to find out how and when to hire people for future job openings.
For ex: company might be traditionally hiring MBA students for marketing purpose but through job
analysis showed that the position can be filed by hiring a graduate with marketing skills.
3) Selection – Without a proper understanding of what is to be done on job, it is not possible to select
the right person.
4) Placement and orientation – After selection people, we have to place them on jobs best suited to

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B.B.A. II Year. Subject: Human Resource Management

their interest, activities, and aptitude, if we are not sure about what is to be done on a job, it is not
possible to teach a new employee how to handle a job.
5) Training – If there is confusion about what the job is and what is supposed to be done, proper
training efforts cannot be initiated.
6) Counseling – Managers can properly counsel the employees about their careers when they
understand the different jobs in the organization.
7) Employee Safety – A thorough job analysis reveals unsafe conditions associated conditions
associated with the job.
8) Performance Appraisal – In performance appraisal we compare the work of an employee what he
has to do and what he is actually doing. What the employee is supposed to do is based on job
analysis.
9) Job design and redesign – Jobs are understood more properly through job analysis. It is easy to
locate the weak points in any and take remedial steps.
10) Job Evaluation – Job evaluation is finding the worth of any job i.e. how much is to be paid for any
particular job. This can be done through job analysis as it tells the degree of difficulty in any job, type
of work done, skills and knowledge needed etc which is the basis on evaluating the job worth.

Process of Job analysis

The major steps involved in job analysis are as follows –
1) Organisational Analysis – Firstly we need to obtain an overall picture of the various jobs in an
organization.
2) Preparing job analysis programme – The company makes plan and decides who will be in charge
of the programme and assigns responsibilities. A budget and a time schedule are also developed.
3) Selection of Jobs for Analysis
4) Collection of Job analysis data – This step involves the collection of data on the characteristics of
the job, the required behaviour and personal qualification needed to carry out the job effectively.
5) Processing the information collected
6) Preparation of Job description – This step involves describing the contents of the job in terms of
functions, duties responsibilities operation etc.
7) Preparation of job specification – This step involves conversion of job description statements into
job specification.

Organisational Analysis
Preparing job analysis programme
Selection of Jobs for Analysis
Collection of Job analysis data
Processing the information collected
Preparation of Job description
Preparation of job specification

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B.B.A. II Year. Subject: Human Resource Management

Components/elements of Job Analysis:

Job Description

Job Specification

Job Description –
A job description (JD) is a written statement of what the job holder does how it is done, under what
conditions it is done and why it is done. It should accurately portray job content, environment, work
performed, the responsibilities involved, the skill or training required conditions under which the job is
done, relations with other jobs, and personal requirements of the job.
Contents –
• Job title • Relation to other jobs
• Job summary • Machines, tools and materials
• Duties Performed • Working conditions
• Supervision • Social environment

Job specification
Job specification summaries the human characteristics needed for satisfaction needed for satisfactory job
completion. It tries to describe the key qualifications someone needs to perform the job successfully. It
spells out the important attributes of a person in terms of education, experience, knowledge,skills and
abilities (KSAs) to perform a particular job.

HR AUDIT

Human Resource Audit is a comprehensive method of objective and systematic verification of current
practices, documentation, policies and procedures prevalent in the HR system of the organization.

The HR Audit is the process of evaluating the performance of Human Resource Department and its activities
undertaken, and the policies followed towards the accomplishment of organizational goals.

The HR Audit is conducted to identify the lapses, shortcomings, gaps in the implementation of HR functions
and suggesting the remedial actions, if any.

It is an analytical, investigative and comparative process. It gives feedback about HR functions to operating
managers and HR specialists. It enables to know about the effectiveness of HRMprogrammes. It further
provides feedback about how well managers are meeting their HR duties. It provides quality control check
on HR activities. It refers to determine the effectiveness and efficiency of HRM.

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B.B.A. II Year. Subject: Human Resource Management

The essential features of HR audit are:

(1) The measurement and effectiveness HR management’s mission, goals, strategies, policies, programmes

and activities, and

(2) To determine the action plan for future in response to the results from such measurement.

According to R.D. Gray, “the primary purpose of audit is to know how the various units are functioning and

how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest

of the organization by identifying the gap between objectives and results for the end product of an

evaluation should be to formulate plans for corrections or adjustments.”

Objectives of HR Audit:

(1) To review every aspect of management of HR to determine the effectiveness of each programmes in an

organisation.

(2) To seek explanation and information in respect of failure and success of HR.

(3) To evaluate implementation of policies.

4) To evaluate the performance of personnel staff and employees.

(5) To seek priorities, values and goals of management philosophy.

Need for Human Resource Audit:

Though there is no legal obligation to have HR audit as in case of financial accounts but the managements

have realized its need and usefulness. Therefore they have taken up HR audit voluntarily.

It is done to fulfill the following needs:

(1) The managements of organisations have realized the need for HR audit because of powerful influence on

motivation of employees at work due to participation of employees in decision making.

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B.B.A. II Year. Subject: Human Resource Management

(2) Growth of organisation needs HR audit. Large organisation requires continuous feedback for

improvement in performance of its employees.

(3) Mounting pressures from trade unions of employees and their participation in formulating employment

policy and questioning of managerial competence have raised the need for HR audit.

(4) An effective two way communication system has also facilitated the need for HR audit.

(5) Many plants are located at large distances. This also made the HR audit compulsory.

(6) The HR audit becomes essential because of delegation of authority and decentralization of power.

Approaches to HR Audit

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Following are the approaches that can be adopted by an auditor to evaluate the performance of the HR
department:

1. Comparative: In this approach, the auditor identifies any company usually the competitor’s company as a
model. Then the results of the organization are compared with that of the model company.
2. Outside Authority: The auditor uses the standard set as a benchmark by the outside consultant and then
compares the organization’s performance with that.
3. Statistical: Under this approach, the auditor develops the statistical measures of performance for the
existing organization’s information, such as turnover rates, absenteeism.
4. Compliance: Here the auditor checks the past actions of the company to ensure that those activities comply
with the legal requirements and is in line with the company’s policy and procedures.
5. Management by Objective: under this approach, the auditors check the performance of HR personnel
against the goals set by the top management.

RECRUITMENT
Recruitment is defined as “a process of searching for prospective employees & stimulating them to apply for
jobs in the organization.”
The function of recruitment precedes the selection function & its includes only finding, developing, the
sources of prospective employees & attracting them to apply for jobs in an organization, whereas the
selection is the process of finding out the most suitable candidate to the job out of the candidates attracted
(i.e. recruited)

Characteristics –
• Positive Process • Complex
• Group of Activities (Not a single task) • Linking Activity
• Pervasive

Need and Objectives of Recruitment –

a) Vacancies created due to transfer, promotion, retirement, termination, permanent disability or
death.
b) Vacancies created due to expansion, diversification, and growth of business.
c) The normal population growth, which requires increased goods and services to meet the needs of
the people.
d) A rising standard of living, which requires more of the same goods and services as well as the
creation of new wants to be satisfied.
e) An increase in the competitive advantage of certain concerns, enabling them to get more of the
available business than formerly.
f) An increase in business arising from an upswing during the recovery period of a business cycle.

Process of Recruitment –
1) Recruitment process begins when the personnel department receives requisitions for recruitment
from any department of the company.
2) The next step is assessment of personnel requirement through job descriptions and ob
specifications.
3) Locating and developing the sources of required number and type of employees.
4) Identifying the prospective employees with particular combinations of skill, experience, education,
and other personal attribute.
5) Communicating the information about the organization, the job, the terms and conditions of service,
and the applicable laws and regulations.
6) Encouraging the identified candidates to apply for jobs in the organizations.

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B.B.A. II Year. Subject: Human Resource Management

7) Evaluating the effectiveness of recruitment process.

Sources of Recruitment –
The sources of recruitment are broadly divided into –
a. Internal sources
b. External source

• Present permanent employees

Internal • Retrenched or Retired Employees
sources • Dependants of deceased, disabled, retire &
present employee

• Campus recruitment
• Private Employment Agencies/
Consultants
External • Public employment Exchanges
• Professional Associations
sources • Data banks
• Casual applicants
• Similar organization
• Trade unions

Internal sources –
Internal sources are the sources within an organizational pursuit, internal sources included –
1) Present permanent employees – Organization considers the candidates from this sources for
higher level jobs for ex. Promotion, transfers.
• Promotions – Most of the internal candidates would be submitted to take up higher
responsibilities & express their willingness to be engaged in the higher level jobs if management
gives them assurance that they will be promoted to the next higher level.
• Transfers – Employees will be stimulated to work in new sections or places if management
wishes to transfer to the places of their choice.
2) Retrenched or Retired Employees – Organization retrenches the employees due to layoff. The
organization takes the candidates for employment from the retrenched employee due to obligation
trade union pressure etc. sometimes the organization prefer to reemploy their retires employees as
a token of layoff to the organization.
3) Dependants of deceased, disabled, retire & present employee – Some organization with a view
to developing the commitment & loyalty of not only the employees but also his family members & to
build up image provide employment to the dependant(s) of deceased, disabled & present employees.

Advantages of Internal Recruitment

• The internal recruitment is an excellent tool for the retention of employees, who are not identified as
key employees, top performers or high potentials
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B.B.A. II Year. Subject: Human Resource Management

• The internal recruitment can be much quicker than the external recruitment
• The internal recruitment has a huge impact on loyalty and the engagement of employees
• The internal recruitment is cheap and helps to increase the productivity and performance of the
organization

Disadvantages of Internal Recruitment

• The internal recruitment does not bring new and innovative ideas into the organization
• The organization has to define clear and strict rules for the internal recruitment, as the employees
do focus on meeting their targets. They should not be allowed to change the position too often
• Managers do not like to allow their employees change the position. They have to find the
replacement, and they have difficulties to meet their goals

External Sources
External sources are the sources which are outside the organization pursuit –

External sources include –

a. Campus recruitment e. Data banks
b. Private Employment Agencies/ Consultants f. Casual applicants
c. Public employment Exchanges g. Similar organization
d. Professional Associations h. Trade unions

Advantages of External Recruitment

• It can bring fresher skills and inputs to the table
• It promotes better competition
• It is a good way to get ideas from other businesses or industries

Disadvantages of External Recruitment

• It recruits candidates with limited understanding of your company
• It is time-consuming
• It comes with issues of maladjustment

Methods of Recruitment
1) Direct Methods
2) Indirect Methods
3) Third Party Methods

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B.B.A. II Year. Subject: Human Resource Management

Indirect

Third
Direct
party

Methods of
Recruitment

SELECTION
Definition – Selection is the process of picking individuals who have relevant qualifications to fill job in an
organization. The basic purpose is to choose the individual who can most successfully perform the job, from
the pool of qualified candidates.
“Selection is the process by which candidates for employment are divided into two classes-those who will be
offered employment and those who will not.” – Dale Yoder

Characteristics of Selection –
1) Sorting process
2) Negative process
3) Sequence of hurdles
4) Based on standard pattern
5) Process of picking out best suited men.

The process
1) Receiving of Applications – Various job-seekers send their applications to the employment office
or Personnel Department of the company in response to the advertisement made by it.
2) Scrutiny of Applications –All applications received are scrutinized by the Personnel Department in
order to eliminate those applicants who do not fulfill required qualifications.
3) Screening/preliminary Interview – A preliminary interview is generally planned by large
organizations to cut the cost of selection by allowing only eligible to go through the further stages in
selection. A junior executive from the HR Department may conduct the interview & take responses
from applicants on important items determining the suitability of an applicant for a job such as age,
education, experience etc.

Hiring Decision Step 9

Reference Checks Step 8
Medical Examination Step 7
Selection Interview Step 6
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B.B.A. II Year. Subject: Human Resource Management

Selection Tests Step 5

Application Blank Step 4
Screening Interview Step 3
Scrutiny of applications Step 2
Reception of applications Step 1

3. Application Blank – application blank or form is one of the most common methods used to
collect information on various aspects of the applicants’ academic, social demographic, work
related background and references.
4. Selection Testing – A test is a sample measurement of an individual’s job-related abilities and
skills. It provides a basis for comparing the behavior, performance and attitudes of two or more
persons.There are various types of test:
a. Intelligence Tests.
b. Aptitude Tests
c. Personality Tests
d. Achievement Tests
e. Simulation Tests
5. Selection Interview – Interview is the oral examination of candidates for employment.
Types of Interviews
1) The non-directive interview – The recruiter asks question as they come to mind.
2) The directive or structured interview – The recruiter uses a predetermined set of
questions that are clearly job related.
3) The situational interview – The interviewer attempts find how applicants would
respond to aggressive, embarrassing and insulting questions.
4) Stress interview – The interviewer attempts find how applicants would respond to
aggressive, embarrassing and insulting questions.
5) Panel Interview – The applicant meets with three to five interviewers who take turns
asking questions.
6. Medical Examination – Certain jobs require physical qualities like clear vision, acute hearing,
unusually high stamina, tolerance level etc. which are ensured through medical examination.
7. Reference checks – Candidates are required to give the names of two or three references in
their application forms.
8. Hiring Decision – The line Manager concerned has to make the final decision-whether to select
or reject a candidate. After taking the final decision the organization sends the offer letter to the
successful candidates.

UNIT-III

PLACEMENT
Placement is the task to match positions with people so that each individual is assigned to that position
where he is likely to make the best use of his abilities consistent with the requirements of his job. It is the
process of assigning a specific job to the candidates selected by the company.

INDUCTION

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B.B.A. II Year. Subject: Human Resource Management

Induction is designed to provide a new employee with the information he needs to function comfortably and
effectively in the organization. It is the task of introducing the new employees to the organization and its
policies, procedures and rules.

Types of Induction Programme –

1) Informal Induction
2) Formal Induction

SOCIALIZATION
Socialization in organization occurs when a new employee learns the norms, values, work procedures, and
patterns of behaviour that are expected in the organization.

TRAINING & DEVELOPMENT

INTRODUCTION
Training is a specialized function of human resource management. Every organization needs to have well
defined trained people to perform the activities. As job have become more complex it s necessary to raise the
skills level of employees.

MEANING & DEFINITION OF TRAINING:-

It is true in many organizations that before an employee is fitted into a harmonious working relationship
with other employees, he is given adequate training. Training is the act of increasing the knowledge & skills
of an employee for performing a particular job. A trainee learns new habits, refined skills and useful
knowledge during the training that helps him improve performance. It is a systematic procedure for
transferring technical knowhow to the employees.
According to Edwin B. Flippo. “Training is the act of increasing the knowledge & skills of an employee for
doing particular job.”
According to Dale B. Beach, training is “the organized procedure by which people learn knowledge and skill
for a definite purpose”.
Thus training refers to the teaching and learning activities directed at helping employees acquire & apply the
knowledge skills, abilities & attitudes needed by a particular job & organization.

CHARACTERISTICS or NATURE OF TRAINING

1. Training is an act of increasing the knowledge, skills of an employee for doing a particular job.
2. Training is a continuous process.
3. It involves changing of skills, knowledge, attitudes or social behavior.
4. It is learning process & experience.
5. It seeks relatively permanent change in an individual that will improve.
6. Training is an aid to self development.
7. Essential part of management development.
8. Focus attention on the current job and it is job specific & addresses particular performance defeats
or problems.
9. Concentrates on individual employees.
10. Training complement selection if well qualified candidates are selected, there will be less need of
training inside the organization.

NEEDS & OBJECTS OF TRAINING

Training is needed to serve the following purpose
1. Job requirements–Newly recruited employee require training so as to perform their tasks
effectively.
2. Promotion- Training is necessary to prepare existing employees for higher level jobs.

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3. Transfers-Training is necessary to when a person moves from one job to another job. After training
the employee can change job quickly, improve his performance levels & achieve career goals
compatibly.
4. Technological changes-Technology is chaining very fast. New jobs require new skills. No
organization can miss the advantages of latest technology without well trained employees.
5. Increasing competition-Due to economic liberalization & globalization the firms are experiencing &
expansion & diversification of business & products. The kin competition has increased uncertainties
& complexities in the market. Thus, in order to face such challenges the firms has to improve their
capabilities.
6. Organizational Viability – Trained employees are the valuable assets of a company. But the skills of
men become outdated due to fast changing conditions in the market and economy. Over the passage
of time, employees suffer from personal obsolescence. Their knowledge becomes old. Hence, existing
employees need refresher training to keep them abreast of new knowledge.
7. Hiring Misfits – Today,public welfare, reservation policy or social responsibility have made it
necessary to employ those generally regarded as unemployables. The social goal of equal
employment opportunity has been accepted nationwide. Minority group members have claim to be
recruited. Something these persons may be misfits. But their shortage of skills can be removed by
‘training’.

TYPES OF TRAINING OR APPROACHES OF TRAINING

1. Orientation Training – It is also known as pre job induction training. This training provides new
employees with information about company policies, history, procedure pay & benefits, conditions of
employment etc. This training adjusts newly appointed employees to the work environment.
2. Skills training – This type of training is most common in organizations. The need for training in
basic skills such as reading, writing, computing, peaking, listing problem solving, leading etc. is
identified through assessment.
3. Refresher Training – Rapid changes in technology may force companies to go in for this king of
training organizing short term courses which incorporate the latest knowledge developments in a
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particular field, the company may keep its employee up to date and ready to take emerging
challenges.
4. Cross functional training- Involves training employees to perform operations in areas other than
their assigned jobs. There are many approaches to cross functional training job rotation can be used
to provide a manager in one functional area with a broader perspective than they would otherwise
have departments can exchange personnel for a certain period so that each employee how other
departments are functioning.
5. Training for promotion- employees of high potential are selected & they are given training before
promotion. This training is provided when vacant posts are filled up by internal recruitment i.e. by
promotion.
6. Safety Training- This training is being provided to minimize accidents & damage to machinery. It
involves instruction in use of machinery & safety devices.
7. Apprentice Training- It is used to prepare employees for a variety of skilled occupations & crafts for
examples it is provided to tailor electrotyper, machinist, printing pressman, designer etc.
8. Internship training- It refers to joint programme of training educational institutions & business
corporate selected students carry on regular school studies for period ranging from 3 to 12 months
& then work in the factory or office for a designed period of time.
9. Remedial Training- This training has the object to overcome the short coming in the behavior and
performance of old employees. Such employees are indentified and correct work methods and
procedures are taught to them.
10. Diversity Training- Considers all of the diverse dimension in the work place, such gender, age,
disability, lifestyle, culture education, idea etc. while designing a training programme. It concentrates
on awareness building & skills building.
11. Job Training- This training is a conducted with a well increase the knowledge & skills of an
employee for improving job performance.
12. Creative Training- Involves employees to think unconventionally, go out of the box &give
unexpected solutions.
Difference between Training & Development
Learning Dimension Training Development
Meant for Operatives Executives
Focus Current job Current and future job
Scope Individual employee Work group or organization
Goal Fix current skill deficit Prepare for future work
demands
Initiated by Management – External motivation The individual – Internal
motivation
Content Specific job related information General knowledge
Time-frame Immediate Long term

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The Training Process:-

In order to achieve the objectives, an approximate training programme is necessary
The process is as follows-

Organization Training Prepare the

al objectives goals trainees

Developing
Training Selection of Overall
Training
Policy trainees evaluation
Package

Training Presenting
Responsibility Performance
needs the
of training Tryout
assessment operation

1. Organizational objectives: - An organization first assesses its objective. What business are use in
what product do we wish to provide to customers? These questions will decide what skills,
knowledge, attitudes & other personnel attributes are necessary for employees.
2. Training Policy: - A training policy presents the commitment of top management to employee
training. It consists of rules & procedures concerning training. A training policy is required to guide
the design & implementation of training programme.
3. Responsibility of training:- Training is a joint process. It responsibility has to be shared among the
top management, personal department, the line supervisor & the employees.
4. Training needs assessment:- It is the most important step in the process. It is from this needs
assessment not the entire training process will flow.
5. Selection of trainees: - It is necessary to decide who are to be trained new or old employees.
6. Training goals: - The Training goals should ensure that the assessed needs will be served.
7. Prepare the trainees: - The source of training depends to a great extent upon the instructors or the
resource persons.
8. Developing Training Package: - It involves deciding the content of training, designing support
materials & choosing appropriate training techniques.
9. Presenting the operation: - This is action phase of training. The instructor uses explanation &
demonstration for training.

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10. Performance Tryout:- The trainee is asked questions in order to endure that he really knows &
understands the job. He is also asked to do the job several times.
11. Overall evaluation: - At the end of training, formal evaluation of the training programme is
necessary. This evaluation must be directly related.

IMPORTANCE
Training offers innumerable benefits to both employees and employers. It makes the employee more
productive and more useful to an organization. The importance of training can be studied under the
following heads:

Benefits to the business:

• Rained workers can work more efficiently. They use machines, tools and materials in a proper way.
Wastage is thus eliminated to a large extent.
• There will be fewer accidents. Training improves the knowledge of employees regarding the use of
machines and equipment. Hence, trained workers need not be put under close supervision, as they know
how to handle operations properly.
• Trained workers can show superior performance. They can turn out better performance. They can turn
our better quality goods by putting the materials, tools and equipment to good use.
• Training makes employees more loyal to an organization. They will be less inclined to leave the unit
where there are growth opportunities.

Benefits to the employees:

• Training makes an employee more useful to firm. Hence, he will find employment more easily.
• Training makes employees more efficient and effective. By combining materials, tools and equipment in
a right way, they can produce more with minimum effort.
• Training enables employees to secure promotions easily. They can realize their career goals comfortably.
• Training helps an employee to move from one organization to another easily. He can be more mobile and
pursue career goals actively.
• Employees can avoid mistakes, accidents on the jo. They can handle jobs with confidence. They will be
more satisfied on their jobs. Their morale would be high.
• Thus, training can contribute to higher production, fewer mistakes, greater job satisfaction and lower
labour turnover.

AREAS OF TRAINING
The area of Training in which training is offered may be classified into the following categories.
1. Knowledge
Here the trainee learns about a set of rules and regulations about the job, the staff and the products or
services offered by the company. The aim is to make the employee fully aware of what goes on inside and
outside the company.
2. Technical Skills
The employee is taught a specific skill (e.g., operating a machine, handling computer etc.) so that he can
acquire that skill and contribute meaningfully.
3. Social Skills
The employee is made to learn about himself and others, and to develop a right mental attitude towards
the job, colleagues and the company. The principal focus is on teaching the employee how to be a team
member and get ahead.

TRAINING METHODS
Training methods are usually classified by the location of instruction. On the job training is provided when
the workers are taught relevant knowledge, skills and abilities at the actual workplace; off-the-job training,

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on the other hand, requires that trainees learn at a location other the real work sot. Some of the widely used
training methods are listed below.

I) On-the-Job Training Methods

II) Classroom Approach, or Informational or Presentation Methods
III) Experiential or Hands-on Methods
IV) Self-Paced or Computer-Based Methods
I) ON THE JOB TRAINING METHODS:

1. On-the-Job Training (OJT)

This method places the employees in an actual work situation and makes them appear to be
immediately productive. It is learning by doing. Individuals are trained on the same machines, while
doing the same work expected of them. The employee learns in the same environment where he will
be working at his regular tasks.
2. Job Instruction Training
It is a form of OJT. Many jobs consist of a logical sequence of steps and are best taught step-by-step. It
is listing each job’s basic tasks along with key points, in order to provide step-by-step training for
employees. The steps show what is to be done. Key points show how it is to be done and why.
3. Just-Do-It Training
This approach is a combination of Job Instruction Training and Japanese philosophy of continuous
improvement. This JDIT approach begins with instruction on basic principle and then moves to the
job where a need for improvement has been identified.
4. Coaching

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Coaching is a kind of daily training and feedback given to employees by immediate supervisors. It
may be defined as an informal, unplanned training and development activity provided by
supervisors and peers. In coaching, the supervisor explains things and answer questions; he throws
light on why things are done the way they are; he offers a model for trainees o copy; conducts lot of
decision making meetings with trainees; procedures are agreed upon and the trainee is given enough
authority to make decisions and even commit mistakes. Of course, coaching can be a taxing job in
that the coach may not possess requisite skills to guide the learner in a systematic way. Sometimes,
doing a full day’s work may be more important than putting the learner on track.

5. Mentoring:
Mentoring is a relationship in which a senior manager in an organization assumes the responsibility
for grooming a junior person. Technical, interpersonal and political skills are generally conveyed in
such a relationship from the more experienced person. A mentor I a teacher, spouse, counselor,
developer of skills and intellect, host, guide, exemplar and most importantly, supporter and
facilitator in the realization of the vision the young person (protégé) has about the kind of life he
wants a an adult.
The main objective is to help employees attain physiological maturity and effectiveness and get
integrated with the organization. In a work situation, such mentoring can take place at both formal
and informal levels, depending on the prevailing work culture and the commitment from the top
management. Formal mentoring can be very faithful, if management invests tie and money in such
relationship building experiences.
6. Job Rotation:
This kind of training involves the moment of trainee from one job to another. This helps him to have
a general understanding of how the organization functions. The purpose of the job rotation is to
provide trainees with a larger organizational perspective and a greater understanding of different
functional area as well as a better sense of their own career objectives and interest. Apart from
relieving boredom, job rotation allows trainees to build rapport with a wide range of individuals
within the organization, facilitating future cooperation among departments. The cross-trained
personnel offer a great amount of flexibility for organizations when transfers, promotions or
replacements become inevitable.

II) Classroom Approach, or Informational or Presentation Methods

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1. Vestibule training:
In this method, actual work conditions are simulated in a classroom. Material, files and equipment –
those that are used in actual job performance are also used in the training. This type of training s
commonly used for training personnel for clerical and semi-skilled jobs. The duration of this training
ranges from a few days to a few weeks. Theory can be related to practice in this method.
2. Lecture method: The lecture is a traditional and direct method of instruction. The instructor
organizes the material and gives in to a group of trainees in the form of a talk. To be effective, the
lecture must motivate and create interest among the trainees. An advantage of lecture method is that
it is direct and can be used for a large group of trainees. Thus, costs and time involved are reduced.
The major limitation of the lecture method is that it does not provide for transfer of training
effectively.
3. Conference approach: In this method, the trainer delivers a lecture and involves the trainee in a
discussion so that his doubt the job gets clarified. When big organizations use this method, the
trainees uses audio-visual aids such as black boards, mockups and slides; in some cases the lectures
are videotaped or audio taped. Even the trainee’s presentation can be taped for self confrontation
and self assessment.
The conference is thus, group-centered approach where there is a classification of ideas,
communication of procedures and standards to the trainees. Those individuals who have a general
educational background and whatever specific skills are required such as typing, shorthand, office
equipment operation, filing, indexing, recording etc. may ne provided with specific instructions to
handle their respective jobs.
4. Apprenticeship Training
Most craft workers such as plumbers and carpenters are trained through formal apprenticeship
programmes. Apprentices are trainees who spend a prescribed amount of time working with an
experienced guide, coach or trainer. Assistantship and internships are similar to apprenticeships
because they also demand high levels of participation from the trainee. An internship is a kind of on-
the job training that usually combines job training with classroom instruction in trade schools,
colleges or universities. Coaching, as explained above, is similar to apprenticeship because the coach
attempts to provide a model for the trainee to copy. One important disadvantage of the
apprenticeship methods is the uniform period of training offered to trainees. People have different
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abilities and learn at varied rates. Those who learn fast may quite the programme in frustration. Slow
learners may need additional training time. It is also likely that in these days of rapid changes in
technology, old skills may get outdated quickly. Trainees who spend years learning specific skills may
find, upon completion of their programmes, that the job skills they acquired are no longer
appropriate
5. Internship
It is a joint programme of training in which educational institutions and business houses cooperate.
In this method, students are given practical training while they study. Selected candidates carry on
regular studies and they are also sent to factory of office during their vacations to get practical
knowledge of their job.
6. Programmed instruction:
This method has become popular in recent years. The subject matter to be learned is presented in a
series of carefully planned sequential units. These units are arranged from simple to more complex
levels of instruction. The trainee goes through these units by answering questions or filing the
blanks. This method is thus, expensive and time-consuming.

III) Experiential or Hands-on Methods

1. Case Method:The case is an actual situation which is written for discussion purposes. Case presents
an in-depth description of a particular problem an employee might encounter on the job. Here, the
trainee attempts to find and analyze the problem, evaluate alternative courses of action, and decide
what course of action would be most satisfactory.
2. Role playing: It is defined as a method of human interaction that involves realistic behavior in
imaginary situations. This method of training involves action, doing and practice. The participants
play the role of certain characters, such as the production manager, mechanical engineer,
superintendents, maintenance engineers, quality control inspectors, foreman, workers and the like.
Method is mostly used for developing interpersonal interactions and relations.
3. Management Games:This is group exercise in decision-making as regards an administrative
problem situation. It is similar to role playing. But while role playing seeks to emphasize feelings and
relationships between people, management games are more concerned with administrative
problems.
4. In-Basket Exercise:This method is designed around the “incoming mail” of a manager. It involves
simulation of a series of decisions a trainee might have to make in real life. A variety of decision
situations are presented to trainee. Like an executive, trainee is presented with pack of papers and
files in a tray containing administrative problems. He is asked to take decisions within specified time
limit. Thus, decisions taken by several trainees are recorded and compared with one another. This
method is useful in identifying executive potential.
5. Sensitivity Training:The aim of this training is to develop awareness and sensitivity to behavioral
patterns of oneself and others. According to Flippo, the goals of this training are: (1) increased
openness with others, (2) Greater concern for other, (3) Increased tolerance for individual
differences, (4) enhanced listening skills (5) understanding of group processes, and (6) increased
trust and support.

IV) Self-Paced or Computer-Based Methods

1. Computer-Based Training (CBT)
2. Distance and Interest-Based Training
3. E-learning
4. Virtual Classroom

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EMPLOYEE ENGAGEMENT
Employee engagement is a property of the relationship between an organization and its employees. An
“engaged employee” is one who is fully absorbed by and enthusiastic about their work and so takes positive
action to further the organization’s reputation and interests.

Kevin Kruse from Forbes.com says the definition of employee engagement is;
Employee engagement is the emotional commitment the employee has to the organization and its goals.

Employee engagement is actually the level of enthusiasm and dedication an employee feels toward his or her
job. To these engaged employees, it is far more than a pay cheque – it is the eagerness towards their task that
makes them passionate in their work, and this passion is often reflected in their individual outcomes.

An engaged employee cares about their work and about the performance of the company, and they want to
feel that their efforts could make a difference. It is generally seen as an internal state of mind; physically,
mentally and emotionally that binds together the work effort, commitment and satisfaction in an employee.

Employee engagement does not mean employee happiness.

Employee engagement doesn't mean employee satisfaction.

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UNIT-IV

PERFORMANCE APPRAISAL
It is the comparative evaluation and analysis of the individual merit of the employees. It analyzes the
differences in performance between employees who are working on similar jobs. It is also known as ‘merit
rating’, ‘employee rating’, ‘efficiency rating’, ‘performance evaluation’, ‘performance review’, ‘personnel
rating’ or employee evaluation. Merit rating refers to the evaluation or appraisal of the worth of the man’s
services on his job. It is the process of assessing the performance and progress of an employee on a given job
and his potential for future development.

Acc. To Scott, Clotheir and Spriegel:

“Performance appraisal (or merit rating) is the process of evaluating the employees performance on the job
in terms of requirements of the job.”

Characteristics of Performance Appraisal –

1) It is a means of self-control, judgement and evaluating “Potentiality”.
2) It is a scientific study in which formal procedures and actual data are used in this study.
3) It is a systematic evaluation of an employee’s strengths and weaknesses in terms of job
requirements.
4) It is a continuous process.
5) It is results-oriented as well as potential-oriented.

Objectives of Performance Appraisal –

Merit rating has the following objectives –
1) To evaluate the merit of an employee for the purpose of promotion, increment, reward and other
benefits.
2) To established and develop a wage system and incentive scheme.
3) To determine the suitability of an employee for a particular job.
4) To analyze the merits (or demerits) of a worker and help him in developing his capability and
competence for the job.
5) Help in executive decisions related to human resource department (HRD).
6) Appraisal of workers.
7) Continuous record for the worth of a worker.
8) Tool for decisions related to training, placement, promotion, confirmation, increment, transfer and
counseling of workers.
9) Useful for understanding areas of improvement in a worker.
10) Helps in discovering special talents in a worker.
11) Useful in personal research, validation of training objectives and training methodology.

Process
1) Establishing Performance Standards
2) Communicating the Standards
3) Measuring Performance
4) Comparing the Actual with the Standards
5) Discussing the Appraisal
6) Taking Corrective Actions

Advantages ofPerformance Appraisal –

1) Systematic evaluation of employees.
2) Facilitates matching of job with individual
3) Facilitates promotion related decisions
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4) Facilitates training related decisions

5) Helpful indentifying weakness of the employees which may systematically be removed
6) Provides base for guidance & counseling for the employees.
7) Develops healthy competition among workers improve performance
8) Serve as motivational tool for employees.
9) Provides objectives basis for bonus, incentive wage salary related decisions.
10) Improves employee-employer relationship due to increased trust and confidence.
11) Sound base for negotiation with trade union

Disadvantages of Performance Appraisal –

1) Clarity in standards
2) Problem of Bias
3) Excessive Leniency or Strictness
4) Halo Error
5) Influence of a Man’s Job
6) Central Tendency
7) Discrimination
8) Varying standards
9) Contract Error
10) Spillover Effect

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Methods of Performance Appraisal

•Confidential report
•Essay evaluation
•Critical incidents
Individual •Checklists
evaluation •Graphic rating scale
methods •Forced choice method
•MBO
•Behaviour anchored
rating scales

Multiple •Ranking
personal
•Paired comparison
evaluation
•Forced distribution
methods

Other •Performance tests

methods •Field review technique

1. Individual Evaluation Methods: Under this employees are evaluated one at a time without
comparing them with other employees in the organization:
a. Confidence Report: It is mostly used in government organizations. It is a descriptive report
prepared generally at the end of the year, by the employee’s immediate superior. The reports
highlight the strengths and weaknesses of the subordinate. The impressions of the superior
about the subordinate are merely recorded here. It does not offer any feedback to the appraise.
Since the report is generally not made public and hence no freedom is available, the subjective
analysis of the superior is likely to be hotly contested.
b. Essay Evaluation: Under this method, the rates are asked to express the strong as well as weak
points of the employee’s bahaviour. This technique is normally used with a combination of the
graphic rating scale because the rates can elaborately present the scale by substantiating an
explanation for his rating.
c. Critical incidents Techniques: The manager prepares tests of statements of very effective and
ineffective behaviour of an employee. These critical incidents or events represent the
outstanding poor behaviour of employees. Manager prepares records of the critical incidents of
the worker’s behaviour. At the end of the rating period, the recorded critical incidents are used in
the evaluation of the workers’ performance.
d. Checklists and Weighted Checklists: In simplest form, a checklist represents a set objectives or
descriptive statements about the employee and his behaviour. If the rates believe strongly that
the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item
blank. A more recent, variation of the checklist is weighted list. Under this, the value of each
question may be weighted equally or certain questions may be weighted more heavily than other.
e. Graphic Rating Scale: It is the oldest and most commonly used method of performance
evaluation. In this, a printed form is used to evaluate the performance of an employee. A verity of
traits may b used in these types of rating devices, the most common being the quality and
quantity of work. The rating scales can also be adapted by including trails that the company
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considers important for effectiveness on the jon. A model of a graphic rating is given on next
page.
f. Behaviourally Anchored Rating Scales: Also known as the behavioural expectations scale, this
method represents the latest innovation in performance appraisal. It is a combination of the
rating scale and critical techniques of employee performance evaluation. The critical incidents
serve as anchor statements on a scale and the rating form usually contains six to eight
specifically defined performance dimensions.
g. Forced Choice Method: It was developed to eliminate bias and the preponderance of high
ratings that might occur in some organizations. It’s primary purpose is the correct tendency of a
rates to give consistently high or low ratings to all the employees. This method makes those of
several sets of pair phases, two of which may be positive and two negative and the rates is asked
to indicate which of the four phrases is the most and least descriptive of a particular worker.
Actually, the statement items are grounded in such a way that the rater cannot easily judge which
statements applies to the most effective employee.
h. Management by Objective (MBO): It is a modern method of evaluating the performance of
personnel. Managers have become increasingly aware that the traditional performance
evaluation systems are characterized by facing goals. This would inevitable enable subordinates
to exercise self-control over their performance behaviours. The concept of MBO is actually the
outcome of the pioneering work of Drucker, Mcgreger and Odioine in management science. MBO
can be described as a process whereby superior and subordinate manager of an organization
jointly its common goals, define each individual’s major areas of operations, responsibility in
terms of results expected of him and use these measures as a guide for operating the unit an
assessing the contributions of each of its members. MBO,thus represents more than an
evaluation programme and process.
2. Multi-Person Evaluation Techniques: These techniques are used to evaluate one employee in
comparison to another. Three frequently used methods in organization are ranking, paired
comparison and forced distribution.
a. Raking Method: This is a relatively easy method of performance evaluation. In it, the ranking of
an employee is a work group is done against that of another employee. The relative position of
each employee is tested in terms of their numerical rank. It may also be done by ranking a person
on his job performance against another member of the competitive group.
b. Paired Comparison Method: Ranking is more reliable and easier under this method. Employee
is compared with all other employees in the group, for example, when there are five employees to
be compared, then A’s performance is compared with that of B’s and decision is arrived at a to
whose is the better or worse. Next, B is also compared with all others. Since A is already
compared with B, this time B is to be compared with only c, D and E. By this method, when there
are five employees, fifteen decisions are made (comparisons).
c. Forced Distribution Method: Under this method, the rater is asked to appraise the employee
according to a predetermined distribution scale. The rater’s bias is sought to be eliminated here
because workers are not placed at a higher or lower end of a scale. Two criteria are normally
used for rating job performance and promotability. Further, a five point performance scale is
used without any mention of descriptive statements. Workers are placed between the two
extremes of ‘good’ and ‘bad’ performances. For instance, the workers of outstanding merit may
be placed at the top 10% of the scale. The rest may be placed as: 20%-Good, 40%-Outstanding,
20%-Fair, and 10%-Fair.
3. Other Methods: Other methods include Group Appraisal, human Resources Accounting, Assessment
Centre, Field Review, etc.
a. Group Appraisal: In this method, an employee is appraised by a group of appraisers. This group
consists of the immediate supervisor of the employee, other supervisors who have closed contact
with the employee’s work, manager or head of the department and consultants.
b. Human Resource Accounting: HRA is a sophisticated way to measure in financial terms the
effectiveness of personnel manager activities and the use of people in an organization. It is the
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process of accounting for people as an organizational resource. It tries to place a value on

organizational human resources as assets and not as expenses.
c. Assessment Centre: This method of performance evaluation was first applied in German Army
in 1930. Later, business and industrial houses started using this method. This is not a technique
of appraisal by itself. In fact, it is a system on organization, where assessment of several
individuals is done by various experts using various techniques. These methods include in-
basket, role playing, case studies, simulation exercises, structured in sight, transactional analysis,
etc.

In this approach individuals from various departments are brought together to spend two or
three days working on an individual on group assignment similar to the ones they would be
handling when promoted.

JOB EVALUATION

Wage or salary is the most important factor in maintaining and developing good employer employee
relations. Job evaluation is the process which establishes a consistent and systematic relationship among
compensation rates for all jobs within the organization. Determining of base compensation is also important
for the employee become it determines the status of employee in the society. Employee should be
compensated on the basis of –
1) The nature of the job
2) The present relative worth of the job.
3) The defectiveness with which the individual performs the job.

According to Flippo, “Job evaluation is systematic and orderly process of determining the worth of a job in
relation to other jobs”.

According to Kimball &Kimbal, “Job evaluation is an effort to determine the relative value of every job in a
plant to determine what the fair basic wage for such a job should be.”

Characteristics
• Job evaluation is a ranking of jobs, not people.
• It follows job analysis which provides data in respect of each job.
• It is used to determine the organization’s pay structure.
• It is a systematic, rather than a scientific, process of establishing wages and salaries.
• The heart of job evaluation is the determination of what criteria will be used to arrive at the ranking.
• Job evaluation should not be confused with job analysis.
• Job evaluation is different from Performance Appraisal.
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Objectives of Job Evaluation-

1) To maintain complete and accurate description of each job or occupation.
2) To provide a standard procedure to determine the relative worth of each job.
3) To ensure that like wages are paid to all qualified employees for like work.
4) To provide an accurate and fair consideration of all employees for advancement and transfer.
5) To provide information for selection, placement and training of employees.
6) To solve wage and salary controversies.
7) To simplify union-management negotiations on wages.
8) To fix minimum and maximum wages throughout the organization for each position.

Factors to be considered while doing Job Evaluation –

1) Training level or qualifications requirements
2) Knowledge and skills requirements
3) Complexity of tasks
4) Interaction with various level of the organization.
5) Problem solving and independent judgment
6) Accountability and responsibility
7) Decision – making authority
8) Degree of suppression required
9) Cross-training requirements
10) Working conditions.
11) Degree of difficulty in filling job.

Job Evaluation Process –

Establishing employee classification

Making wage survey
Relating the progression of jobs to a money
scale

Arrangement of jobs in a progression

Comparison of one job with another

Preparation of Job Evaluation Programme

Preparation of job specification

Preparation of job descrption
Job assessment and analysis
Determining the objective of job evaluation

1) Determining the objective of job evaluation.

2) Job assessment and analysis.
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3) Preparation of job descrption (recording its characteristics)

4) Preparation of job specification.
5) Preparation of Job Evaluation Programme.
6) Comparison of one job with another.
7) Arrangement of jobs in a progression.
8) Relating the progression of jobs to a money scale.
9) Making wage survey.
10) Establishing employee classification.

A job evaluation programme includes the following issues and contents –

1) Which jobs are to be evaluated
2) Who will evaluate
3) What training do the evaluators need
4) How much time is involved
5) What should be the criteria for evaluation
Criteria in Job Evaluation –
• Training level or qualifications requirements
• Knowledge and skills requirements
• Complexity of tasks
• Interaction with various level of the organization.
• Problem solving and independent judgment
• Accountability and responsibility
• Decision – making authority
• Degree of suppression required
• Cross-training requirements
• Working conditions.
• Degree of difficulty in filling job.
6) What methods of evaluation are to be employed
7) Wage survey
8) Employee classification

Methods of Job Evaluation

B. Non-Quantitative Methods –
a. Ranking Method: Under this system, all the job are arranged or ranked in the order of

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importance from the simplest to the hardest or in the reverse in, order each successive job
higher or lower than the previous one in the sequence.
b. Job classification or grading system: Job grading refers to the classification and analysis of
jobs which are performed in an organization according to their relative levels in the form of
job classes or grades. The jobs may be graded as skilled, unskilled, routine, administrative,
shop jobs, clerical jobs, sales jobs and so on.
C. Quantitative Methods –
a. Factors comparison method:Under this method, a few key jobs are selected and compared
in terms of common factors. The procedure involved is as follows:
i. Select and Define the Factors
ii. Select Key Jobs
iii. Rank Key Jobs by Factors
iv. Decide Rates for Key Job
v. Apportion the Wage Rate
vi. Evaluate the Remaining Jobs

b. Point-Method
It is the most widely used method of job evaluation. Under it, jobs are divided into
component factors. Points or weights are assigned to each factor dependin on the degree of
its importance in a particular jobs,the total points for a job indicate its relative worth or
value.

Advantages of Job Evaluation –

• Job evaluation is a logical and objective method of ranking and grading jobs.
• Data or information generated during job evaluation can be used for decisions related to selection
placement, training transfer and promotion of employees etc.
• It is helpful in constructing an appropriate policy for payments of wages which helps in attracting better
works.
• It helps to fit the newly created jobs.
• Job evaluation also helps to redesign the jobs by reallocating the easy and difficult tasks equally among
various jobs.

Disadvantages of Job Evaluation –

1) Statutory and other factors
2) Highly subjective
3) Cyclical effect
4) Promotes grievances
5) Conflict between worker and management
6) Inflexibility
7) Requires time and finance

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UNIT-V
Administration of Employee Welfare
Employee welfare is related to well-being of the employee. It is a comprehensive term which includes
various services, benefits and facilities offered to employees.
According to the committee on labour Welfare (1969) “such services, facilities and amenities as adequate
canteen, rest and recreation facilities. Sanitary and from work and for the accommodation of workers
employed at a distance from their homes and such other services, amenities and facilities, including social
security measures as contribute to improve the conditions under which workers are employed.
labour welfare has two aspects negative and positive. On the negative side, labour welfare is concerned with
counteracting the baneful effects of the large-scale industrial system of production- especially capitalistic, as
far as India is concerned.
On its positive side, it deals with the provision of opportunities for the worker and his/her family for good
life.

Administration of welfare involves decision on

i. Welfare policy
ii. Organization of welfare
iii. Assessment of effectiveness

Characteristics of Employee Welfare-

1. Comprehensive Term
2. Dynamic Concept
3. Origin
4. Accepted as social right & Responsibility
5. Additional benefit
6. Provided by Various Agencies
7. Part of Social Welfare
8. Both Voluntary and Statutory
9. Individual and Group Services

Agencies of Employee Welfare:

1) Central Government
2) State Government
3) Employers
4) Employees’ Associations
5) Trade Unions
6) Other Agencies

Importance of Employee Welfare-

It safeguards individual economy and has great impact and influence on industries development.
1. removal of negative Effects
2. Improve Family life
3. In the interest of larger society
4. Improve morale, loyalty and productivity
5. Improve physical and mental health

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6. Improve hiring process

7. Help remove social evils
8. Establishes industrial peace
9. Raise goodwill
10. Voluntary efforts reduce the threat of further Govt. Intervention.

Types of Welfare Facilities

1. Conditions and comforts of work environment
2. Conveniences
3. Health services
4. Women and child welfare
5. Recreation
6. Economic services
7. Domestic and employment guidance
8. Worker’s education
9. Labour-management joint programmes services to elderly and retires employees
10. Services to elderly and retired employees

A part from these there is many more which are known as (Extramural facilities). Mentioned below-
1. Housing
2. Waste disposal
3. Banks, transport, schools, post office
4. Health and Medical services
5. Recreation games, clubs
6. Watch & ward: Security
7. Community Leadership development
8. Co-operative, consumer & credit societies
9. Leave travel. holiday homes, vocational training

HR GRIEVANCE
Every employee has certain expectations which he thinks must be fulfilled by the organization he is working
for. When an employee feels that something is unfair in the organization, he is said to have a grievance.
According to Jucius : A Grievance is “any discontent or dissatisfaction, whether valid or not, arising out of
anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust
or inequitable.”
Features:
A) A grievance refers to any form of discontent dissatisfaction with any aspact of the organization.
B) The dissatisfaction must arise out of employment and not due to personal or family problems.
C) The discontent may arise out of real or imaginary reasons.
D) The discontent may be voiced or unvoiced. But it must find expression in some form.

Forms of Grievances:
A grievance may take any one of the following forms
a) Factual: A factual grievance arise when legitimate needs of employees remain unfulfilled e.g. Wage
hike has been agreed but not implemented citing various reasons.

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b) Imaginary: When an employee’s dissatisfaction is not because of any valid reason but because of a
wrong protection, wrong attitude or wrong information he has.
c) Disguised: When an employee may have dissatisfaction for reasons that are unknown to him.

Causes:
Grievance may occur for a number of reasons:
a) Economic: Wage fixation, overtime, bonus, wage revision etc.
b) Work environment: Poor physical conditions of workplace, tight production norms, defective tools
and equipment, poor quality of material, unfair rules, lack of recognition etc.
c) Supervision: Relates to the attitudes of the supervisor towards the employee.
d) Work group: Employee is unable to adjust with his colleagues; suffers from feelings of neglect,
humiliation etc.
e) Miscellaneous: There include issues relating to certain violations in respect of promotions, safety
methods, transfer, disciplinary rules, fines, granting leave, medical facilities etc.

Effects:
Grievance, if not indentified and redressed , may adversely affect woekers, managers and the organizations
as a whole.

The effects are:

A) On production include:
• Low quality of production.
• Low quality of production and productivity.
• Increase in the wastage of material, spoilage of machinery.
• Increase in the cost of production per unit.
B) On the employees:
• Increases the rate of absenteeism and turnover.
• Reduces the level of commitment, sincerity and punctuality.
• Increase the incidence of accidents.
• Educes the level of employee morale.
C) On the managers:
• Strains the superior-subordinate relations.
• Increase the degree of supervision, control and follow up.
• Increases in indiscipline cases.
• Increase in unrest and thereby machinery to maintain industrial place.

Solutions to Grievance:
1) Observation: done by manager.
2) Grievance procedure; should be systematic in order to highlight employee dissatisfaction at various
levels.
3) Grip boxes: by placing complaint boxes in the factory or working places.
4) Open door policy: i.e. a walk-in-meeting with the manager, to express employee feelings openly.
5) Exit interview: it is conducted in order to find the real reason for employee leaving the job.
6) Opinion surveys: Surveys may be conducted periodically to elicit the opinions of employees about
the organization and its policies.

Need for a Grievance handling procedure:

a) The management can know the employee’s feelings and opinions about the company’s policies and
practices.
b) The employee gets a chance to ventilate his feelings through grievance handling procedure.
c) It keeps a check on the supervisor’s attitude and behavior towards their subordinates.

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d) The morale of the employees will be high with the existence of proper grievance handling procedure.

Steps in Grievance Procedure

a) Identification of grievance by the management
b) Management should define the problem properly and accurately after identification
c) Data collection should be complete by all the parties
d) Analysis and solution to the problems should be developed
e) Prompt Redressal
f) Implementation and follow up should be fast

Essential Pre-requisites of a Grievance Procedure

a) Conformity with statutory provisions
b) Unambiguity
c) Simplicity
d) Promptness in handling the grievance
e) Training the supervisors and union representatives
f) Follow up for making necessary changes from time to time for improved working.

COLLECTIVE BARGAINING

ILO Convention No. 154 defines collective bargaining as referring to:

“all negotiations which take place between an employer, a group of employers or one or more employers'
organisations, on the one hand, and one or more workers' organisations, on the other, for:

(a) determining working conditions and terms of employment; and/or

(b) regulating relations between employers and workers; and/or

(c) regulating relations between employers or their organisations and a workers' organisation or workers'
organisations.” (Article 2)

Collective bargaining is a key means through which employers and their organizations and trade unions can
establish fair wages and working conditions. It also provides the basis for sound labour relations. Typical
issues on the bargaining agenda include wages, working time, training, occupational health and safety and
equal treatment. The objective of these negotiations is to arrive at a collective agreement that regulates
terms and conditions of employment. Collective agreements may also address the rights and responsibilities
of the parties thus ensuring harmonious and productive industries and workplaces. Enhancing the
inclusiveness of collective bargaining and collective agreements is a key means for reducing inequality and
extending labour protection.

INTERNATIONAL LABOUR ORGANISATION (ILO)

The International Labor Organization is a United Nations (UN) agency that aims to "promote decent work
throughout the world."
The International Labor Organization's (ILO) was founded in 1919 and incorporated into the UN as a
specialized agency in 1946. The organization's goal is to serve as a uniting force between governments,
businesses, and workers. It emphasizes the need for workers to enjoy "conditions of freedom, equity,
security, and human dignity" through their employment.

The ILO promotes international labor standards through its field offices in Africa, Latin America and the
Caribbean, the Arab States, Asia and the Pacific, and Europe and Central Asia. The organization provides
training on fair employment standards, provides technical cooperation for projects in partner
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countries,analyzes labor statistics and publishes related research, and regularly holds events and
conferences to examine critical social and labor issues. The ILO was awarded the Nobel Peace Prize in 1969.

EMPLOYEE EMPOWERMENT

Employee empowerment is a strategy and philosophy that enables employees to make decisions about their
jobs.

Employee empowerment helps employees own their work and take responsibility for their results, serve
customers at the level of the organization where the customer interface exists.

Employee empowerment is the philosophy of enabling employees to make important decisions related to
their work and take more responsibility for their jobs.

The logic behind employee empowerment is to foster accountability, build employee morale and confidence,
and create a sense of belongingness in the employees.

If employee empowerment is undertaken in an efficient way, it results in heightened productivity, better

quality of work and more job satisfaction. The process of empowerment differs from organization to
organization depending upon work culture and organizational structures.

Employee empowerment is a two sided coin. For employees to be empowered the management leadership
must want and believe that employee empowerment makes good business sense and employees must act.
Employee empowerment does not mean that management no longer has the responsibility to lead the
organization and is not responsible for performance.

Advantages of employee empowerment

1. Quality of work produced – When given the autonomy that allows them to make a difference to product or
service outcomes, employees will produce higher quality work. The finished product becomes a matter of
personal pride, and the benefits for both the customer and the employee will become self-evident.

2. Satisfied employees – Various studies have shown that empowered employees are more satisfied in their
work, and less likely to seek employment elsewhere. This decreases employment costs and the need for
training of new staff.

3. Collaboration grows – With increased confidence; employees are more willing to share information and
best practices with others. Honesty and openness increase, and this directly impacts the ability of people to
work as part of a team. Participation becomes more active and proactive, and this greater collaboration will
in itself feed through to organizational capability to achieve strategic goals.
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4. Productivity increases – As confidence and self-esteem grows, and a more quality focused and
collaborative approach takes hold, productivity will increase.

5. Employee empowerment reduces costs – Costs will be reduced across the organization.

6. Highly Competitive Environment – Highly competitive environment makes it necessary for companies to
empower employees so that they are motivated.

7. Globalization – Globalization also necessitates empowerment to combat challenges of globalization.

Advantages of employee empowerment include:

1. Increased employee education and training;

2. Employees participate in creating their own goals;

3. Increased employee contribution;

4. Increased respect among employees secondary to teamwork;

5. Increased power equals lower absenteeism and better productivity;

6. Employees have more satisfying work;

7. An increased depth of competence among employees secondary to cross-training;

8. Less conflict with administration and managers; and

9. A few middle management positions mean decreased cost to the company.

Methods of Employee Engagement

1. Job Enlargement:

It is a type of horizontal expansion which entails taking charge of more duties and responsibilities at the
same level. Job enlargement increases the scope of the job and reduces level of specialization. Its aim is to
reduce the monotony and repetition associated with a particular job by introducing newer tasks.

It helps to create flexible workforces who are capable of performing a variety of jobs. One negative aspect of
job enlargement is that employees may be required to do more work at the same pay scale. For example, a

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waiter at a small restaurant may be required to chop vegetables or do the dishes along with his regular duty
of taking orders and serving customers.

2. Job Enrichment:

Job enrichment entails increasing the depth of the job to include responsibilities that are carried out at
higher levels of the organization. It is vertical expansion of a job. Job enrichment gives more control over the
jobs by increasing the employees’ level of responsibility.

They are required to do more planning and organizing work. They are given more authority and autonomy
over their jobs. Job enrichment is also known as job enhancement. It requires a higher level of knowledge,
skills and challenging work. It motivates the employees and gives opportunities for personal growth.

Job enrichment enhances the quality of work and provides a meaningful job experience. Workers experience
more job satisfaction as job enrichment brings more scope for achievement, recognition, development and
growth. If the responsibilities of a proofreader in a publication are increased to include some level of
editorial work, it would be an example of job enrichment.

Some of the disadvantages of employee empowerment include:

1. Employees can abuse the increased power given to them;

2. It is too much responsibility for some employees;

3. Employees who focus on their own success rather than group’s may leave;

4. Managers must be better trained to facilitate through sharing of information, cooperation, and referrals to
appropriate resources; all employees must “buy in” to the concept for it to be effective;

5. There is an increased cost to the organization for training and education;

6. There is increased time in groups or committees which takes away from regular jobs.

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QUALITY CIRCLES

Conceptually Quality Circles can be described as a small group of employees of the same work area, doing
similar work that meets voluntarily and regularly to identify, analyse and resolve work related problems.

This small group with every member of the circle participating to the full carries on the activities, utilising
problem solving techniques to achievecontrol or improvement in the work area and also help self and
mutual development in the process.

A quality circle is a participatory management technique that enlists the help of employees in solving
problems related to their own jobs. Circles are formed of employees working together in an operation who
meet at intervals to discuss problems of quality and to devise solutions for improvements. Quality circles
have an autonomous character, are usually small, and are led by a supervisor or a senior worker. Employees
who participate in quality circles usually receive training in formal problem-solving methods—such as
brain-storming, pareto analysis, and cause-and-effect diagrams—and are then encouraged to apply these
methods either to specific or general company problems. After completing an analysis, they often present
their findings to management and then handle implementation of approved solutions.
Quality circles were originally associated with Japanese management and manufacturing techniques. The
introduction of quality circles in Japan in the postwar years was inspired by the lectures of W. Edwards
Deming (1900—1993), a statistician for the U.S. government

The concept of the Quality Circle is based on “respect for the human individual” as against the traditional
assumption based on suspicion and mistrust between management and its employees.

Quality circles built mutual trust and create greater understanding between the management and the
workers. Cooperation and not confrontation is the key element in its operation. Quality Circles aims at
building people, developing them, arousing genuine interest and dedication to their work to improve quality,
productivity, cost reduction etc.

Thus we can say that a quality circle is a group of 5 to 8 employees performing similar work, who volunteer
themselves to meet regularly, to identify the cause of their on-the-job problems, employ advanced problem-
solving techniques to reach solutions and implement them.

The concept is based on the premise that the people who do a job everyday know more about it than anyone
else and hence their voluntary involvement is the best way to solve their work related problems.

QC is formed to achieve the following objectives:

1. Improvement in quality of product manufactured by the organisation.

2. Improvement in methods of production.

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3. Development of employees participating in QC.

4. Promoting morale of employees.

5. Respect humanity and create a happy work place worthwhile to work.

The main features of QC can be listed as follows:

• Voluntary Groups:

QC is a voluntary group of employees generally coming from the same work area. There is no

pressure from anywhere on employees to join QC.

• Small Size:

The size of the QC is generally small consisting of six to eight members.

• Regular Meeting:

QC meetings are held once a week for about an hour on regular basis. The members meet during

working hours usually at the end of the working day in consultation with the manager. The time of

the meetings is usually fixed in advance in consultation with the manager and members.

• Independent Agenda:

Each QC has its own agenda with its own terms of reference. Accordingly, each QC discusses its own

problems and takes corrective actions.

• Quality Focused

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Benefits of Quality Circles (Q.C.):

1. Through the forum of Q.C. the chronic problems-of organisations which really create hurdles in work get
resolved by the grass root employees oforganisation, whose knowledge and experienceotherwise is not fully
utilized.

2. With such a capable work force, any organisation can easily undertake more difficult and challenging
assignments for its growth and profit.

3. As the employees gain experience they take more challenging projects, in due course they undertake
projects on cost reduction, material handling, quality improvement, preventing wastage, improving delivery
schedule, improving customer service, improving inspection and test methods, preventing accidents
improving design and process etc.

4. Cost reduction.

5. Increased productivity.

6. Improved quality.

7. Better communication.

8. Better house-keeping.

9. Increased team work.

10. Smooth working.

11. Better mutual trust.

12. Greater sense of belongingness.

13. Increased safety.

14. Better human relations.

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