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HUMAN RESOURCE MANAGEMENT

INTRODUCTION

Edwin Flippo defies HRM as planning, organizing, directing,controlling of procurement, development, compensation,integration, maintenance and separation of humanresources to the end that individual, organizational andsocial objectives are achieved.The evolution of HRM canbe traced back to Kautilya Artha Shastra where herecommends that government must take active interest inpublic and private enterprise. He says that governmentmust provide a proper procedure for regulating employee

and employee relation. In the medieval times there wereexamples of kings like Allaudin Khilji who regulated themarket and charged fixed prices and provided fixed salariesto their people. This was done to fight inflation and providea decent standard of living. During the pre independenceperiod of 1920 the trade union emerged. Many authors whohave given the history of HRM say that HRM startedbecause of trade union and the First World War.

The Royal commission in 1931 recommended theappointment of a labour welfare officer to look into thegrievances of workers. The factory act of 1942 made itcompulsory to appoint a labour welfare officer if the factoryhad 500 or more than 500 workers. The internationalinstitute of personnel management and national institute oflabour management were set up to look into problemsfaced by workers to provide solutions to them. The SecondWorld War created awareness regarding workers rights and1940s to 1960s saw the introduction of new technologyto help workers. The1960s Extended the scope ofhuman resource beyond welfare. Now it was a combinationof welfare, industrial relation, administration together itwas called personnel management. With the second 5 yearplan, heavy industries started and professionalmanagement became important. In the 70s the focus wason efficiency of labour wile in the 80s the focus was onnew technology, making it necessary for new rules andregulations. In the 90s the emphasis was on human values

and development of people and with liberalization and

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changing type of working people became more and moreimportant there by leading to HRM which is anadvancement of personnel management.

Evolution of HRM

Scope of HRM/functions of HRM

The scope of HRM refers to all the activities that comeunder the banner of HRM. These activities are as follows

Human resources planning :-Human resource planning or HRP refers to a process

by which the company to identify the number of jobsvacant, whether the company has excess staff or shortage

of staff and to deal with this excess or shortage.

1.Job analysis design :-Another important area of HRM is job analysis. Job

analysis gives a detailed explanation about each and everyjob in the company. Based on this job analysis the companyprepares advertisements.

2. Recruitment and selection :-

Based on information collected from job analysis thecompany prepares advertisements and publishes them inthe news papers. This is recruitment. A number ofapplications are received after the advertisement ispublished, interviews are conducted and the rightemployee is selected thus recruitment and selection are yetanother important area of HRM.

3. Orientation and induction :-

Once the employees have been selected an inductionor orientation program is conducted. This is another

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important area of HRM. The employees are informed aboutthe background of the company, explain about theorganizational culture and values and work ethics andintroduce to the other employees.

4. Training and development :-Every employee goes under training program which

helps him to put up a better performance on the job.Training program is also conducted for existing staff thathave a lot of experience. This is called refresher training.

Training and development is one area were the companyspends a huge amount.

5. Performance appraisal :-Once the employee has put in around 1 year ofservice, performance appraisal is conducted that is the HRdepartment checks the performance of the employee.Based on these appraisal future promotions, incentives,increments in salary are decided.

6. Compensation planning and remuneration :-

There are various rules regarding compensation andother benefits. It is the job of the HR department to lookinto remuneration and compensation planning.

7. Motivation, welfare, health and safety :-Motivation becomes important to sustain the number

of employees in the company. It is the job of the HRdepartment to look into the different methods ofmotivation. Apart from this certain health and safetyregulations have to be followed for the benefits of theemployees. This is also handled by the HR department.

8. Industrial relations :-Another important area of HRM is maintaining co-

ordinal relations with the union members. This will help theorganization to prevent strikes lockouts and ensure smoothworking in the company.

Features of HRM or characteristics or nature

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HRM involves management functions like planning,organizing, directing and controlling

It involves procurement, development, maintenance of

human resource

It helps to achieve individual, organizational and socialobjectives

HRM is a mighty disciplinary subject. It includes thestudy of management psychology communication,economics and sociology.

It involves team spirit and team work.

Challenges before the HR manager/before modernpersonnel management

Personnel management which is know as human resourcemanagement has adapted itself to the changing workenvironment, however these changes are still taking placeand will continue in the future therefore the challenges

before the HR manager are

1. Retention of the employees :-One of the most important challenge the HR manager

faces is retention of labour force. Many companies have avery high rate of labour turnover therefore HR manager arerequired to take some action to reduce the turnover

2. Multicultural work force :-With the number of multi cultural companies are

increasing operations in different nations. The work forceconsists of people from different cultures. Dealing witheach of the needs which are different the challenge before

the HR manager is integration of multicultural labour workforce.

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3. Women in the work force :-The number of women who have joined the work force

has drastically increased over a few years. Women

employees face totally different problems. They also haveresponsibility towards the family. The organization needs toconsider this aspect also. The challenge before the HRmanager lies in creating gender sensitivity and in providinga good working environment to the women employees.

4. Handicapped employees :-This section of the population normally faces a lot of

problems on the job, very few organization have jobs and

facilities specially designed for handicapped workers. Therefore the challenge before the HR manager lies increating atmosphere suitable for such employees andencouraging them to work better.

5. Retrenchment for employees :-In many places companies have reduced the work

force due to changing economic situations, labourers orworkers who are displaced face sever problems. It also

leads to a negative atmosphere and attitude among theemployees. There is fear and increasing resentmentagainst the management. The challenge before the HRmanager lies in implementing the retrenchment policywithout hurting the sentiments of the workers, withoutantagonizing the labour union and by creating positiveattitude in the existing employees.

6. Change in demand of government :-Most of the time government rules keep changing.

While a lot of freedom is given to companies some strictrules and regulations have also been passed. Thegovernment has also undertaken the disinvestment incertain companies due to which there is fear among theemployees regarding their job. The challenge before the HRmanager lies in convincing employees that their interestwill not be sacrificed.

7. Initiating the process of change :-

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Changing the method of working, changing theattitude of people and changing the perception and valuesof organization have become necessary today. Althoughthe company may want to change it is actually very difficult

to make the workers accept the change. The challengebefore the HR manager is to make people accept change.

Significance/importance/need of HRM

HRM becomes significant for business organization due tothe following reasons.

1. Objective :-

HRM helps a company to achieve its objective fromtime to time by creating a positive attitude among workers.Reducing wastage and making maximum use of resourcesetc.

2. Facilitates professional growth :-Due to proper HR policies employees are trained well

and this makes them ready for future promotions. Theirtalent can be utilized not only in the company in which they

are currently working but also in other companies whichthe employees may join in the future.

3. Better relations between union and management:-

Healthy HRM practices can help the organization tomaintain co-ordinal relationship with the unions. Unionmembers start realizing that the company is also interestedin the workers and will not go against them therefore

chances of going on strike are greatly reduced.

4. Helps an individual to work in a team/group :-Effective HR practices teach individuals team work

and adjustment. The individuals are now very comfortablewhile working in team thus team work improves.

5. Identifies person for the future :-Since employees are constantly trained, they are

ready to meet the job requirements. The company is alsoable to identify potential employees who can be promoted

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in the future for the top level jobs. Thus one of theadvantages of HRM is preparing people for the future.

6. Allocating the jobs to the right person :-

If proper recruitment and selection methods arefollowed, the company will be able to select the rightpeople for the right job. When this happens the number ofpeople leaving the job will reduce as the will be satisfiedwith their job leading to decrease in labour turnover.

7. Improves the economy :-Effective HR practices lead to higher profits and better

performance by companies due to this the company

achieves a chance to enter into new business and start newventured thus industrial development increases and theeconomy improves.

Job analysis, job design, job evolution

Define job analysis (2 mks concept)A job is defined as a collection of duties and responsibilitieswhich are given together to an individual employee. Job

analysis is the process of studying and collectinginformation relating to operations and responsibilities of aspecific job. It can be explained with the help of thefollowing diagram

Job analysis

Job description Job

specification

Job title/ name of the jobQualification

Working hours Qualities

Duties and responsibilitiesExperience

Working conditions Family background

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Salary and incentives Training

Machines to be handled on the job Interpersonal

skills

As mentioned in the above table job analysis is divided into2 parts

Job descriptionWhere the details regarding the job are given.

Job specificationWhere we explain the qualities required by peopleapplying for the job.

Need/importance/purpose/benefits of jobanalysis

Def: - A job is defined as a collection of duties andresponsibilities which are given together to an individual

employee. Job analysis is the process of studying andcollecting information relating to operations andresponsibilities of a specific job.

The following are the benefits of job analysis.

1. Organizational structure and design :-Job analysis helps the organization to make suitable

changes in the organizational structure, so that it matchesthe needs and requirements of the organization. Duties are

either added or deleted from the job.

2. Recruitment and selection :- Job analysis helps to plan for the future human

resource. It helps to recruit and select the right kind ofpeople. It provides information necessary to select the rightperson.

3. Performance appraisal and training/development

:-

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Based on the job requirements identified in the jobanalysis, the company decides a training program. Trainingis given in those areas which will help to improve theperformance on the job. Similarly when appraisal is

conducted we check whether the employee is able to workin a manner in which we require him to do the job.

4. Job evaluation :- Job evaluation refers to studying in detail the job

performance by all individual. The difficulty levels, skillsrequired and on that basis the salary is fixed. Informationregarding qualities required, skilled levels, difficulty levelsare obtained from job analysis.

5. Promotions and transfer :-When we give a promotion to an employee we need to

promote him on the basis of the skill and talent required forthe future job. Similarly when we transfer an employee toanother branch the job must be very similar to what he hasdone before. To take these decisions we collect informationfrom job analysis.

6. Career path planning :-Many companies have not taken up career planningfor their employees. This is done to prevent the employeefrom leaving the company. When we plan the future careerof the employee, information will be collected from jobanalysis. Hence job analysis becomes important oradvantageous.7. Labour relations :-

When companies plan to add extra duties or deletecertain duties from a job, they require the help of jobanalysis, when this activity is systematically done using jobanalysis the number of problems with union membersreduce and labour relations improve.

8. Health and safety :-Most companies prepare their own health and safety,

plans and programs based on job analysis. From the jobanalysis company identifies the risk factor on the job andbased on the risk factor safety equipments are provided.

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9. Acceptance of job offer :-When a person is given an offer/appointment letter

the duties to be performed by him are clearly mentioned init, this information is collected from job analysis, which is

why job analysis becomes important.

Methods of job analysisDef: - A job is defined as a collection of duties andresponsibilities which are given together to an individualemployee. Job analysis is the process of studying andcollecting information relating to operations andresponsibilities of a specific job. There are different

methods used by organization to collect information andconduct the job analysis. These methods are

1. Personal observation :-In this method the observer actually observes the

concerned worker. He makes a list of all the dutiesperformed by the worker and the qualities required toperform those duties based on the information collected,

job analysis is prepared.

2. Actual performance of the job :-In this method the observer who is in charge of

preparing the job analysis actually does the work himself.This gives him an idea of the skill required, the difficultylevel of the job, the efforts required etc.

3. Interview method :-In this method an interview of the employee is

conducted. A group of experts conduct the interview. Theyask questions about the job, skilled levels, and difficultylevels. They question and cross question and collectinformation and based on this information job analysis isprepared.

4. Critical incident method :-In this method the employee is asked to write one or

more critical incident that has taken place on the job. The

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incident will give an idea about the problem, how it washandled, qualities required and difficulty levels etc. criticalincident method gives an idea about the job and itsimportance. (a critical means important and incident means

anything which takes place in the job)

5. Questioner method :-In this method a questioner is provided to the

employee and they are asked to answer the questions in it.The questions may be multiple choice questions or openended questions. The questions decide how exactly the jobanalysis will be done. The method is effective becausepeople would think twice before putting anything in writing.

6. Log records :-Companies can ask employees to maintain log records

and job analysis can be done on the basis of informationcollected from the log record. A log record is a book inwhich employees record /write all the activities performedby them on the job. The records are extensive as well asexhausted in nature and provide a fair idea about theduties and responsibilities in any job.

7. HRD records :-Records of every employee are maintained by HR

department. The record contain details about educationalqualification, name of the job, number of years ofexperience, duties handled, any mistakes committed in thepast and actions taken, number of promotions received,area of work, core competency area, etc. based on theserecords job analysis can be done.

Job design

Job design is the process of

Deciding the contents of the job.

Deciding methods to carry out the job.

Deciding the relationship which exists in theorganization. Job analysis helps to develop job design and job design

matches the requirements of the job with the humanqualities required to do the job.

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Factors affecting job design: - There are various factorswhich affect job design in the company. They can beexplained with the help of diagram.

Factors affecting job design

Organizationalfactors Environmentalfactors Behavioralfactors

1. Taskcharacteristics

1. Employeeavailability and ability

1. Feed back

2. Process or flow ofwork in organization

2. Social andcultural expectations

2. Autonomy

3. Ergonomics 3. Variety4. Work practices

a) Task characteristics :-Task characteristics refer to features of the job that is

depending on the type of job and the duties involved in itthe organization will decide, how the job design must bedone. Incase the company is not in a position to appointmany people; a single job may have many duties and viceversa.

b) The process or flow of work in the organization :-There is a certain order in which jobs are performed in

the company. Incase the company wishes it could combinesimilar job and give it to one person this can be done if allthe jobs come one after the other in a sequence.

c) Ergonomics :-Ergonomics refers to matching the job with physical

ability and characteristics of the individual and in providing

an office environment which will help the person tocomplete the jobs faster and in a comfortable manner.

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d) Work practices :-Every organization has different work practices.

Although the job may be the same the method of doing the

job differs from company to company. This is called workpractice and it affects job design.

Environmental factors :-Environmental factors which affect job design are asfollows

a) Employee availability and ability :-Certain countries face the problem of lack of skilled

labour. They are not able to get employees with specificeducation levels for jobs and have to depend on othercountries due to this job design gets affected.

b) Social and cultural expectations :-The social and cultural conditions of every country is

different so when an MNC appoints an Indian it has to takeinto account like festivals, auspicious time, inauspicioustime, etc. to suit the Indian conditions. This applies to everycountry and therefore job design will change accordingly.

Behavioral factors :-Job design is affected by behavioral factors also. These

factors are

a) Feedback :- Job design is normally prepared on the basis of job

analysis and job analysis requires employee feedbackbased on this employee feedback all other activities takeplace. Many employees are however not interested inproviding a true feedback because of fear and insecurity.

This in turn affects job deign.

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b) Autonomy :-Every worker desires a certain level of freedom to his

job effectively. This is called autonomy. Thus when weprepare a job design we must see to it that certain amount

of autonomy is provided to the worker so that he carries hisjob effectively.

c) Variety :-When the same job is repeated again and again it

leads to burden and monotony. This leads to lack ofinterest and carelessness on the job. Therefore, whilepreparing job design certain amount of variety must beprovided to keep the person interested in the job.

Methods of job design

There are various methods in which job design canbe carried out. These methods help to analysis the job, todesign the contents of the and to decide how the job mustbe carried out .these methods are as follows :- (5 markseach)

Job rotation Job enlargement

Job enrichment

Job Rotation:-Job rotation involves shifting a person from one job to

another, so that he is able to understand and learn whateach job involves. The company tracks his performance onevery job and decides whether he can perform the job in an

ideal manner. Based on this he is finally given a particularposting. Job rotation is done to decide the final posting for

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the employee e.g. Mr. A is assigned to the marketingdepartment whole he learns all the jobs to be performed formarketing at his level in the organization .after this he isshifted to the sales department and to the finance

department and so on. He is finally placed in thedepartment in which he shows the best performance .Jobrotation gives an idea about the jobs to be performed atevery level. Once a person is able to understand this he is ina better understanding of the working of organization

Advantages of job rotation

Avoids monopoly :-

Job rotation helps to avoid monopoly of job andenable the employee to learn new things and thereforeenjoy his job

Provides an opportunity to broaden onesknowledge :-

Due to job rotation the person is able to learndifferent job in the organization this broadens hisknowledge

Avoiding fraudulent practice :-In an organization like bank jobs rotation is

undertaken to prevent employees from doing any kindof fraud i.e. if a person is handling a particular job for avery long time he will be able to find loopholes in thsystem and use them for his benefit and indulge

( participate ) in fraudulent practices job rotationavoids this.

Disadvantages of Job Rotation

1. Frequent interruption :- Job rotation results in frequent interruption of

work .A person who is doing a particular job and get itcomfortable suddenly finds himself shifted to another jobor department .this interrupts the work in both thedepartments

2. Reduces uniformity in quality :-

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Quality of work done by a trained worker isdifferent from that of a new worker .when a new worker Ishifted or rotated in the department, he takes time to learnthe new job, makes mistakes in the process and affects

the quality of the job.

Misunderstanding with the union member :-Sometimes job rotation may lead to

misunderstanding with members of the union. The unionmight think that employees are being harassed andmore work is being taken from them. In reality this isnot the case.

Job enlargement

There are various methods in which job design can becarried out. These methods help to analysis the job, todesign the contents of the and to decide how the job mustbe carried out .these methods are as follows :- (5 markseach)

Job rotation

Job enlargement Job enrichment

Job enlargement :-Job enlargement is another method of job design

when any organization wishes to adopt proper job design itcan opt for job enlargement. Job enlargement involvescombining various activities at the same level in theorganization and adding them to the existing job. It

increases the scope of the job. It is also called thehorizontal expansion of job activities.Jon enlargement canbe explained with the help of the following example - If Mr.A is working as an executive with a company and iscurrently performing 3 activities on his job after jobenlargement or through job enlargement we add 4 moreactivities to the existing job so now Mr. A performs 7activities on the job.

It must be noted that the new activities which

have been added should belong to the same hierarchy levelin the organization. By job enlargement we provide a

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greater variety of activities to the individual so that we arein a position to increase the interest of the job and makemaximum use of employees skill. Job enlargement is alsoessential when policies like VRS are implemented in the

company.

Advantages of job enlargement

1. Variety of skills :- Job enlargement helps the organization to improve andincrease the skills of the employee due to organization aswell as the individual benefit.

2. Improves earning capacity :-Due to job enlargement the person learns manynew activities. When such people apply foe jobs to othercompanies they can bargain for more salary.

3. Wide range of activities :-Job enlargement provides wide range of activities

for employees. Since a single employee handles multipleactivities the company can try and reduce the number of

employees. This reduces the salary bill for the company.

Disadvantages of job enlargement

1. Increases work burden :- Job enlargement increases the work of the

employee and not every company provides incentives andextra salary for extra work. Therefore the efforts of theindividual may remain unrecognized.

2. Increasing frustration of the employee :-In many cases employees end up being frustrated

because increased activities do not result in increasedsalaries.

3. Problem with union members :-Many union members may misunderstand job

enlargement as exploitation of worker and may takeobjection to it.

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are power and responsibility hungry. Job enrichmentsatisfies the needs of the employees.

Advantages of job enrichment

1. Interesting and challenging job :-When a certain amount of power is given to

employees it makes the job more challenging for them, wecan say that job enrichment is a method of employeeempowerment.

2. Improves decision making :- Through job enrichment we can improve the

decision making ability of the employee by asking him todecide on factory layout, method and style of working.

3. Identifies future managerial caliber :-When we provide decision making opportunities

to employees, we can identify which employee is betterthat other in decision making and mark employees forfuture promotion.

4. Identifies higher order needs of employees :-This method identifies higher order needs of theemployee. Abraham maslows theory of motivationspeaks of these higher order needs e.g. ego andesteemed needs, self actualization etc. These needs canbe achieved through job enrichment.

5. Reduces work load of superiors :-Job enrichment reduces the work load of senior staff.

When decisions are taken by juniors the seniors workload is reduced.

Disadvantages of job enrichment

1. Job enrichment is based on the assumptions thatworkers have complete knowledge to take decisions andthey have the right attitude. In reality this might not be thecase due to which there can be problems in working.

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2. Job enrichment has negative implications ie. Along withusual work decision making work is also given to theemployees and not many may be comfortable with this.

3. Superiors may feel that power is being taken awayfrom them and given to the juniors. This might lead to egoproblems.

4. This method will only work in certain situations. Somejobs already give a lot of freedom and responsibility; thismethod will not work for such jobs.

5. Some people are internally dissatisfied with the

organization. For such people no amount of job enrichmentcan solve the problem.

Human resource planning/manpowerplanning

Def. of human resource planning :-Human resource planning can be defined as the

process of identifying the number of people required by an

organization in terms of quantity and quality. All humanresource management activities start with human resourceplanning. So we can say that human resource planning isthe principle/primary activity of human resourcemanagement. From human resource planning theorganization identifies how many people it has currentlyand how many people will be required in future. Based onthis information major human resource decisions are taken.

Process of HRP/MP//steps in HRP/MP

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Human resource planning can be defined as theprocess of identifying the number of people required by anorganization in terms of quantity and quality. All humanresource management activities start with human resource

planning. So we can say that human resource planning isthe principle/primary activity of human resourcemanagement. The process of HRP involves various stepsthey can be explained with the help of the followingdiagram.

Human resource planning

Personal requirement Personalsupply

ForecastForecast

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Yes

Personal PersonalSurplus Shortage(100=125) (100=75)

Layoff Overtime Termination Recruitment/hiringVRS Subcontracting

1. Personnel requirement forecast :-This is the very first step in HRP process. Here the

HRP department finds out department wiserequirements of people for the company. The

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Comparison

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requirement consists of number of people required aswell as qualification they must posses.

2. Personnel supply forecast :-

In this step, HR department finds out how manypeople are actually available in the departments of thecompany. The supply involves/includes number ofpeople along with their qualification.

3. Comparison:-Based on the information collected in the 1st and

2nd step, the HR department makes a comparison andfinds out the difference. Two possibilities arise from this

comparisona. No difference :-

It is possible that personnel requirement =personnel supplied. In this case there is nodifference. Hence no change is required.

b. Yes, there is a difference :-There may be difference between supply and

requirement. The difference may be Personnel surplus Personnel shortage

4. Personnel surplus :-When the supply of personnel is more than the

requirement, we have personnel surplus. We require 100people, but have 125 people. That is we have a surplusof 25 people. Since extra employees increase

expenditure of company the company must try toremove excess staff by methods of

Layoff

Termination

VRS/CRS

Personnel shortage :-When supply is less than the requirement, we

have personnel shortage. We require 100 people; we

have only 75 i.e. we are short of 25 people. In such

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case the HR department can adopt methods like Overtime,Recruitment, Sub-contracting to obtain new employee

Advantages of HRP/need/importance/role/benefits

Human resource planning can be defined as theprocess of identifying the number of people required by anorganization in terms of quantity and quality. All humanresource management activities start with human resourceplanning. So we can say that human resource planning isthe principle/primary activity of human resourcemanagement.

The process of HRP plays a very important role in the

organization. The importance of HRP can be explained asfollows.

1. Anticipating future requirement :-Thru this process of HRP, the company is able to

find out how many people will be required in future.Based on this requirement the company could takefurther actions. This method also helps the company toidentify the number of jobs which will become vacant in

the near future.

2. Recruitment and selection process :-The recruitment and selection process is a very

costly affair for a company. Many companies spend lakhsof rupees on this process. Therefore recruitment andselection must be carried out only if it is extremelynecessary. HRP process helps to identify whetherrecruitment and selection are necessary or not.

3. Placement of personnel :-Since the HRP process is conducted for the entire

organization, we can identify the requirements for eachand every department. Based on the requirement, wecan identify existing employees and place them onthose jobs which are vacant.

4. Performance appraisal :-

HRP make performance appraisal moremeaningful. Since feedback is provided in performance

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appraisal and employee is informed about his futurechances in same company, the employee is motivatedto work better. Information for all this is collected from HRPprocess.

5. Promotion opportunity :-HRP identifies vacancies in the entire organization

including all the branches of all the company.Therefore when the company implements promotion policyit can undertake its activities in a very smooth manner.

Limitations of human resource planning

Human resource planning can be defined as theprocess of identifying the number of people required by anorganization in terms of quantity and quality. All humanresource management activities start with human resourceplanning. So we can say that human resource planning isthe principle/primary activity of human resourcemanagement.

Although HRP is a very advantageous method it has

some limitations which can be explained as follows

1. The future is uncertain :-The future in any country is uncertain i.e. there

are political, cultural, technological changes taking placeevery day. This effects the employment situation.Accordingly the company may have to appoint or removepeople. Therefore HRP can only be a guiding factor. Wecannot rely too much on it and do every action

according to it.

2. Conservative attitude of top management :-Much top management adopts a conservative attitude

and is not ready to make changes. The process of HRPinvolves either appointing. Therefore it becomes verydifficult to implement HRP in organization because topmanagement does not support the decisions of otherdepartment.

3. Problem of surplus staff :-

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HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain

employees are removed from company it mostlyaffects the psyche of the existing employee, and they

start feeling insecure, stressed out and do not believein the company. This is a limitation of HRP i.e. it does not

provide alternative solution like re-training so thatemployee need not be removed from the company.

4. Time consuming activity :-HRP collects information from all departments,

regarding demand and supply of personnel. Thisinformation is collected in detail and each and every job

is considered. Therefore the activity takes up a lot oftime.

5. Expensive process :- The solution provided by process of HRP incurs

expense. E.g. VRS, overtime, etc. company has tospend a lot of money in carrying out the activity. Hence wecan say the process is expensive.

Reasons for increased importance forHRP/Factors affecting HRP in theorganization.

Human resource planning can be defined as theprocess of identifying the number of people required by anorganization in terms of quantity and quality. All humanresource management activities start with human resource

planning. So we can say that human resource planning isthe principle/primary activity of human resourcemanagement.

1. Employment :-HRP is affected by the employment situation in

the country i.e. in countries where there is greaterunemployment; there may be more pressure on thecompany, from government to appoint more people.

Similarly some company may force shortage of skilled

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labour and they may have to appoint people fromother countries.

2. Technical changes in the society :-

Technology changes at a very fast speed and newpeople having the required knowledge are required forthe company. In some cases, company may retainexisting employees and teach them the newtechnology and in some cases, the company have to

remove existing people and appoint new.

3. Organizational changes :-Changes take place within the organization from

time to time i.e. the company diversify into new productsor close down business in some areas etc. in such casesthe HRP process i.e. appointing or removing people willchange according to situation.

4. Demographic changes :-Demographic changes refer to things referring to

age, population, composition of work force etc. A number ofpeople retire every year. A new batch of graduates with

specialization turns out every year. This can change theappointment or the removal in the company.

5. Shortage of skill due to labour turnover :-Industries having high labour turnover rate, the

HRP will change constantly i.e. many new appointmentswill take place. This also affects the way HRP isimplemented.

6. Multicultural workforce :-Workers from different countries travel to other

countries in search of job. When a company plans itsHRP it needs to take into account this factor also.

7. Pressure groups :-Company has to keep in mind certain pleasure.

Groups like human rights activist, woman activist, media

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etc. as they are very capable for creating problems forthe company, when issues concerning these groupsarise, appointment or retrenchment becomes difficult.

Definition of VRSVRS refers to voluntary retirement scheme, when

company faces the problem of surplus labour, they have toremove the extra workers. This needs to be done to avoidincrease in cost. One of the methods used by thecompanies is the methods used by companies is the VRSscheme.Under this scheme people have put in 20 or more number

of years of service are given an option to opt for earlyretirement benefits and some other amount which is due tothem are paid when they leave the company.

Recruitment selection and induction

Define recruitment :-Recruitment is a process of searching for prospective

employees and stimulating them to apply for jobs.

Objectives of recruitmentRecruitment fulfills the following objectives

It reviews the list of objectives of the company andtries to achieve them by promoting the company in theminds of public.

It forecasts how many people will be required in thecompany.

It enables the company to advertise itself and attracttalented people.

It provides different opportunities to procure humanresource.

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Methods of recruitment/sourcesRecruitment is a process of searching for prospective

employees and stimulating them to apply for jobsCompanies can adopt different methods of recruitment

for selecting people in the company. These methods are Internal sources

External sources

The sources can be further explained with the help offollowing diagram

Sources of recruitment (manpower supply)

Internal source External sources

1. Promotion 1. Management consultant2. Departmental exam 2. Employment agency3. Transfer 3. Campus recruitment4. Retirement 4. News paper advertisement5. Internal advertisement 5. Internet advertisement6. Employee

recommendation

6. Walk in interview

Internal sources of recruitment :-

Internal sources of recruitment refer to obtaining people forjob from inside the company. There are different methodsof internal recruitment

1. Promotion :-Companies can give promotion to existingemployees. This method of recruitment saves a lot oftime, money and efforts because the company does nothave to train the existing employee. Since the employeehas already worked with the company. He is familiar withthe working culture and working style. It is a method ofencouraging efficient workers.

2. Departmental exam :-

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This method is used by government departmentsto select employees for higher level posts. Theadvertisement is put up on the notice board of thedepartment. People who are interested must send

their application to the HR department and appear for theexam. Successful candidates are given the higher level

job. The method ensures proper selection and impartiality.3. Transfer :-

Many companies adopt transfer as a method ofrecruitment. The idea is to select talented personnel fromother branches of the company and transfer them tobranches where there is shortage of people.

4. Retirement :-Many companies call back personnel who have alreadyretired from the organization. This is a temporary

measure. The method is beneficial because it gives a senseof pride to the retired when he is called back and helpsthe organization to reduce recruitment selection andtraining cost.

5. Internal advertisement :-

In this method vacancies in a particular branchare advertised in the notice board. People who areinterested are asked to apply for the job. The method helpsin obtaining people who are ready to shift to anotherbranch of the same company and it is also beneficial topeople who want to shift to another branch.

6. Employee recommendation :-In this method employees are asked to

recommend people for jobs. Since the employee isaware of the working conditions inside the company hewill suggest people who can adjust to the situation. Thecompany is benefited because it will obtain.

Advantages of internal recruitment

Internal methods are time saving.

No separate induction program is required.

The method increases loyalty and reduces labourturnover.

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This method is less expensive.

Disadvantages of internal recruitment

There is no opportunity to get new talent in thismethod.

The method involves selecting people from thoseavailable in the company so there is limited scope forselection.

There are chances of biased and partiality.

Chances of employee discontent are very high.

External methods/sources of recruitment

External sources of recruitment refer to methods ofrecruitment to obtain people from outside the company.

These methods are

1. Management consultant :-

Management consultant helps the company byproviding them with managerial personnel, when thecompany is on the look out for entry level managementtrainees and middle level managers. They generallyapproach management consultants.

2. Employment agencies :-Companies may give a contract to employment

agencies that search, interview and obtain the required

number of people. The method can be used to obtainlower level and middle level staff.

3. Campus recruitment :-When companies are in search of fresh graduates

or new talent they opt for campus recruitment.Companies approach colleges, management, technicalinstitutes, make a presentation about the company andthe job and invite applications. Interested candidates

who have applied are made to go through a series ofselection test and interview before final selection.

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4. News paper advertisement :- This is one of the oldest and most popular

methods of recruitment. Advertisements for the job are

given in leading news papers; the details of the job andsalary are also mentioned. Candidates are given acontact address where their applications must be sentand are asked to send their applications within a specifiedtime limit. The method has maximum reach and most

preferred among all other methods of recruitment.

5. Internet advertisement :-With increasing importance to internet,

companies and candidates have started using theinternet as medium of advertisement and search for jobs. There are various job sites like naukri.com andmonster.com etc. candidates can also post their profileson these sites. This method is growing in popularity.

6. Walk in interview :-Another method of recruitment which is gaining

importance is the walk in interview method. An

advertisement about the location and time of walk ininterview is given in the news paper. Candidates requireto directly appearing for the interview and have to bringa copy of their C.V. with them. This method is very

popular among B.P.O and call centers.

Advantages of external recruitment

There is influx of new talent in the method.

The method encourages more and more competition. There is lesser chance of partiality through thismethod.

If options like campus recruitment have been exercisedwe get a chance to employ fresh graduates, thus increasingemployment.

Disadvantages of external recruitment

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The method is costly because it involves recruitmentcost, selection, training cost.

The method is time consuming.

The method reduces loyalty to the company.

The process of selection is different in differentcompanies; however a general procedure of selection canbe framed. This process of selection can be explained withthe help of following diagram

Process of selection

Job analysis

Advertisement

Application blank/form

Written test

Interview

Medical examination

Initial job offer

Acceptance/rejection letter

Final offer/letter of appointment1. Job analysis :-

The very first step in the selection procedure is

the job analysis. The HR department prepares the jobdescription and specification for the jobs which arevacant. This gives details for the jobs which are vacant.

This gives details about the name of the job,qualification, qualities required and work conditions etc.

2. Advertisement :-Based on the information collected in step 1, the

HR department prepares an advertisement and publishes

it in a leading news papers. The advertisement conveys

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details about the last date for application, the address towhich the application must be sent etc.

3. Application blank/form :-

Application blank is the application form to befilled by the candidate when he applies for a job in thecompany. The application blank collects informationconsisting of 4 parts- 1) Personal details 2) Educationaldetails 3) Work experience 4) Family background.

4. Written test :- The application which have been received are

screened by the HR department and those applications

which are incomplete are rejected. The othercandidates are called for the written test. Arrangementfor the written test is looked after the HR department i.e.question papers, answer papers, examination centers andhall tickets etc.

5. Interview :-Candidates who have successfully cleared the test

are called for an interview. The entire responsibility for

conducting the interview lies with the HR departmenti.e. they look after the panel of interviewers,refreshments, informing candidates etc.

6. Medical examination :-The candidates who have successfully cleared the

interview are asked to take a medical exam. Thismedical exam may be conducted by the organizationitself (army). The organization may have a tie up withthe hospital or the candidate may be asked to get acertificate from his family doctor.

7. Initial job offer :-Candidates who successfully clear the medical

exam are given an initial job offer by the companystating the details regarding salary, terms of employment,employment bond if any etc. The candidate is givensome time to think over the offer and to accept orreject.

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8. Acceptance/ rejection :-Candidates who are happy with the offer send

their acceptance within a specified time limit to show

that they are ready to work with the company.

9. Letter of appointment/final job offer :-Candidates who send their acceptance are given

the letter of appointment. The letter will state the nameof the job. The salary and other benefits, number ofmedical leaves and casual leaves, details of employmentbond if any etc. It will also state the date on which theemployee is required to start duty in the company. On the

date of joining the employee is introduced to the companyand other employees through am elaborate inductionprogram.

Types of selection test

Different selection test are adopted by differentorganization depending upon their requirements. Thesetests are specialized test which have been scientifically

tested and hence they are also known as scientific test.Different types of test can be explained with the help offollowing diagram,

Types of selection test

Aptitude Intelligence PersonalityPerformance test test test

test

Mental ability/Intelligence test

Medical aptitudetest

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Psycho motor test

Aptitude test :-Aptitude tests are test which assess the potential

and ability of a candidate. It enables to find out whetherthe candidate is suitable for the job. The job may bemanagerial technical or clerical. The different types ofaptitude test are

a. Mental ability/mental intelligence test :- This test is used to measure the over all

intelligence and intellectual ability of thecandidate to deal with problems. It judges thedecision making abilities.

b. Mechanical aptitude test :-This test deals with the ability of the candidate to

do mechanical work. It is used to judge and

measure the specialized knowledge and problemsolving ability. It is used for technical andmaintenance staff.

c. Psycho motor test :-This test judges the motor skills the hand and eye

co- ordination and evaluates the ability to do jobs lie packing, quality testing, quality inspectionetc.

I. Intelligence test :- This test measures the numerical skills and

reasoning abilities of the candidates. Such abilitiesbecome important in decision making. The test consistsof logical reasoning ability, data interpretation,comprehension skills and basic language skills.

II. Personality test :-

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In this test the emotional ability or the emotionalquotient is tested. This test judges the ability to work ina group, inter personal skills, ability to understand andhandle conflicts and judge motivation levels. This test is

becoming very popular now days.

III. Performance test :- This test judges and evaluates the acquired

knowledge and experience of the knowledge andexperience of the individual and his speed and accuracyin performing a job. It is used to test performance oftypist, data entry operators etc.

Induction = orientation

Define induction :- Induction can be defined as a processof introducing the employee who is newly elected to theorganization. When an employee is given a letter ofappointment he joins the company on duty. The very firstthing that the company does is, introduces the newemployee to the organization and people working there. Aninduction program may be conducted at a particular centerfor all employees or at different places (branches of thecompany) for different employees. Normally the newemployee is called together to the staff training college forthe induction program. The induction starts with anintroduction secession about the company, number ofbranches, a brief history of the company, number of

products, number of countries operating in, organizationalstructure, culture, values, beliefs, the names of topmanagement personnel etc. Apart from this introductorysecession there will be other secessions also like secessionson behavioral science, soft skill training, secessions ongiving details about the job, salary, bonus, informationabout different leaves that can be taken by the employeeabout upward mobility in the organization etc. Thereare different ways in which secessions can be conducted

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Objectives/purpose/goals of training anddevelopment

Training is defined by Wayne Cascio as training

consists of planed programs undertaken to improveemployee knowledge, skills, attitude, and social behavior sothat the performance of the organization improvesconsiderably.

The purpose of training and development can beexplained as follows.

1. Improving quality of work force :- Training and development help companies to

improve the quality of work done by their employees.Training programs concentrate on specific areas. There byimproving the quality of work in that area.

2. Enhance employee growth :-Every employee who takes development program

becomes better at his job. Training provides perfectionand required practice, therefore employees area able todevelop them professionally.

3. Prevents obsolescence :-Through training and development the employee

is up to date with new technology and the fear of beingthrown out of the job is reduced.

4. Assisting new comer :-Training and development programs greatly help

new employees to get accustomed to new methods of

working, new technology, the work culture of the companyetc.

5. Bridging the gap between planning andimplementation :-

Plans made by companies expect people toachieve certain targets within certain time limit withcertain quality for this employee performance has to beaccurate and perfect. Training helps in achieving

accuracy and perfection.

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6. Health and safety measures :- Training and development program clearly

identifies and teaches employees about the different riskinvolved in their job, the different problems that can

arise and how to prevent such problems. This helps toimprove the health and safety measures in the company.

Methods of training operating personnel/factoryworkers

Training is defined by Wayne Cascio as training consists ofplaned programs undertaken to improve employee

knowledge, skills, attitude, and social behavior so that theperformance of the organization improves considerably.There are different methods of training for operating

personnel (factory workers). Training these workersbecomes important because they handle equipment worthcrores of rupees. The different methods can be explainedwith the help of following diagram.

Methods of training operating personnel

On the job Apprenticeship Vestibule Job rotationClassroom

method method method method method

1. On the job training method :-In this method workers who have to be trained

are taken to the factory, divided into groups and onesuperior is allotted to every group. This superior orsupervisor first demonstrates how the equipment must behandled, and then the worker is asked to repeat whateverhe has observed in the presence of the supervisor. This

method makes it easy for the employee to learn thedetails about specific equipment. Once the worker studiesthe first equipment thoroughly the supervisor moves on tothe next equipment and so on.

2. Apprenticeship training :-

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In this method both theory and practical sessionare conducted. The employee is paid a stipend until hecompletes training. The theory sessions give theoreticalinformation about the plant layout, the different

machines, their parts and safety measures etc. Thepractical sessions give practical training in handling the

equipment. The apprentice may or may not becontinued on the job after training.3. Vestibule training :-

In this method of training an atmosphere which isvery similar to the real job atmosphere is created. Thesurroundings, equipment, noise level will be similar to thereal situation. When an employee is trained under such

conditions he gets an idea about what the real jobsituation will be like. Similarly when he actually startsdoing the job he will not feel out of place. This method is

used to train pilots and astronauts. In some placesgraphics are also used to create the artificialsurroundings. This method involves heavy investment.

4. Job rotation :-In this method the person is transferred from one

equipment to the other for a fixed amount of time untilhe is comfortable with all the equipments. At the end ofthe training the employee becomes comfortable with allthe equipment. He is then assigned a specific task.

5. Classroom method :-In this method the training is given in the

classroom. Video, clippings, slides, charts, diagrams andartificial modules etc are used to give training.

Methods of training for managers/methods ofdevelopment/managerial development/executivedevelopment

Training is defined by Wayne Cascio as training consists ofplaned programs undertaken to improve employeeknowledge, skills, attitude, and social behavior so that theperformance of the organization improves considerably.

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Various methods are used to train personnel for manageriallevel jobs in the company. These methods can be explainedwith the help of following diagram.

Methods of training

On the job training Off the jobtraining

Job rotation Classroommethod

Planned progression Simulation

Coaching and counseling Businessgames

Under study Committees

Junior boards Conferences

Readings

In-basket training

On the job method :-On the job method refers to training given to personnelinside the company. There are different methods of on the

job training.

1. Job rotation :- This method enables the company to train

managerial personnel in departmental work. They aretaught everything about the department. Startingfrom the lowest level job in the department to the

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highest level job. This helps when the person takesover as a manager and is required to check whether his

juniors are doing the job properly or not. Every minutedetail is studied.

2. Planned progression :-In this method juniors are assigned a certain job

of their senior in addition to their own job. The methodallows the employee to slowly learn the job of his seniorso that when he is promoted to his senior job it becomesvery easy for him to adjust to the new situation. It alsoprovides a chance to learn higher level jobs.

3. Coaching and counselingCoaching refers to actually teaching a job to a junior. The senior person who is the coach actuallyteaches his junior regarding how the work must behandled and how decisions must be taken, the differenttechniques that can be used on the job, how to handle

pressure. There is active participation from the senior.Counseling refers to advising the junior employee as

and when he faces problems. The counselor superior plays

an advisory role and does not actively teach employees.

4. Under study :-In this method of training a junior is deputed to

work under a senior. He takes orders from the senior,observes the senior, attends meetings with him, learnsabout decision making and handling of day to dayproblems. The method is used when the senior is on the

verge of retirement and the job will be taken over bythe junior.

5. Junior board :-In this method a group of junior level managers

are identified and they work together in a group calledjunior board. They function just like the board of directors.

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They identify certain problem, they have to study theproblem and provide suggestions. This method improvesteam work and decision making ability. It gives an ideaabout the intensity of problem faced by the company.

Only promising and capable junior level managers areselected for this method.

Off the job training method:-Off the job training refers to method of training givenoutside the company. The different methods adopted hereare

1. Classroom method :-

The classroom method is used when a group ofmanagers have to be trained in theoretical aspects.

The training involves using lectures, audio visuals, casestudy, role play method, group discussions etc. Themethod is interactive and provides very good results.

2. Simulation :-Simulation involves creating atmosphere which is

very similar to the original work environment. The

method helps to train manager handling stress, takingimmediate decisions, handling pressure on the jobs etc.An actual feel of the real job environment is given here.

3. Business games :-This method involves providing a market situation

to the trainee manager and asking him to providesolutions. If there are many people to be trained theycan be divided into groups and each group becomes a

separate team and play against each other.

4. Committee :-A committee refers to a group of people who are officially

appointed to look into a problem and provide solution.

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Trainee managers are put in the committee to identifyhow they study a problem and what they learn from it.

5. Conference :-

Conferences are conducted by various companiesto have elaborate discussions on specific topics. Thecompany which organizes the conference invites traineemanager and calls for experts in different fields to givepresentation or lecture. The trainee manager can asktheir doubts to these experts and understand howproblems can be solved on the job.

6. Readings :-

This method involves encouraging the traineemanager to increase his reading related to his subjectand then ask him to make a presentation on what hehas learned. Information can be collected by traineemanager from books, magazines and internet etc.

7. In basket training :-In this method the training is given to the

manager to handle files coming in and to finish his work

and take decisions within a specified time limit. Thetrainee manager is taught how to prioritize his work, theactivities which are important for his job and how to takedecisions within limited time limit.

Training procedure/process of training :-

Training is defined by Wayne Cascio as training consists ofplaned programs undertaken to improve employee

knowledge, skills, attitude, and social behavior so that theperformance of the organization improves considerably.Every company has a specific training procedure,depending upon its requirements. A general trainingprocedure is explained below along with diagram

Process/procedure of training

Determining training need of employee

Select a target group for training

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Based on the information provided by trainers, heprepares entire training schedule i.e. number of days,number of sessions each day, topics to be handledeach day, depth of which the subject should be covered,

the methodology for each session, the test to be given foeeach session, handout/printed material to be given in

each session.

5. Presentation :-On the first day of training program the trainer

introduces himself and specifies the need and objectiveof the program and then actually stars the program.

The performance of each employee is tracked by thetrained and necessary feedback is provided.

6. Performance :-At the end of training program the participants

reports back to their office or branches. They preparereport on the entire training program and what theyhave learned. They the start using whatever they havelearned during their training. Their progress and

performance is constantly tracked and suitable incentivesare given if the participant is able to use whatever he haslearned in training.

7. Follow up :-Based on the em0ployee performance, after

training, the HR department is able to identify what isexactly wrong with training program and suitablecorrection is made.

Evaluation of training program Training is defined by Wayne Cascio as training

consists of planed programs undertaken to improveemployee knowledge, skills, attitude, and social behavior sothat the performance of the organization improvesconsiderably.

Effectiveness of training programs are constantlyevaluated by the company to find if the money, they haveinvested has been spend properly or not. Training programscan be evaluated by asking following questions.

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Has change occurred after training?

Is the change due to training?

Is the change positive or negative?

Will the change continue with every training program?

A training program should give following resulting changes.

1. Reaction :-Reaction refers to attitude of employee about the

training, whether the employee considers training to be+ve or ve one. If reaction are +ve then people haveaccepted the program and changes will be possible.

2. Learning :-Another method of judging effectiveness is to

identify levels of learning i.e. how much the people havelearnt during the training. This can be found out bytrainers mark sheet, the report submitted by theemployee, and actual performance.

3. Behavior :-The HR department needs to understand behavior

of the employees, to understand the effectiveness oftraining. The behavioral change can be seen in how theperson interacts with juniors, peer groups and seniors.

They mark change in behavior and inform the HRdepartment of the success of training program.

4. Result :-Results provided by employee in monetary terms

also determines effectiveness of training program i.e.

employee success in handling the project, the groupperformance before and after training etc.

5. Effectiveness of training program must lead to

Increase in efficiency of worker

Reduction in labour turnover

Increase in discipline

Reduction in wastage and therefore cost ofproduction

Proper care of tools and equipments

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Employee development in career terms

Overall efficiency in the company

Advantages of training programs/training

Training is defined by Wayne Cascio as trainingconsists of planed programs undertaken to improveemployee knowledge, skills, attitude, and social behavior sothat the performance of the organization improvesconsiderably.

The following are the advantages of training program to thecompany

1. Increase in efficiency of worker :-

Training programs can help workers to increasetheir efficiency levels, improve quality and therebyincrease sales for the company.

2. Reduced supervision :-When workers have been formally trained they

need not be supervised constantly. This reduces the workload on the supervisor and allows him to concentrate onother activities in the factory.

3. Reduction in wastage :- The amount of material wasted by a trained

worker is negligible as compared to the amount ofmaterial wasted by an untrained worker. Due to this thecompany is able to reduce its cost its cost of production.

4. Less turnover of labour :-

One of the advantages of the training program isthat it increases the confidence of employees andprovides them with better career opportunities. Due tothis employee generally do not leave the company.

There by reducing labour turnover.

5. Training helps new employees :-A person, who is totally new to the company, has

no idea about its working. Training helps him tounderstand what is required from him and helps him toadjust to the new environment.

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6. Union management relations :-When employees are trained and get better

career opportunities. The union starts having a possible

attitude about the management. They feel that themanagement is genuinely interested in workersdevelopment. This improves union management relations.

The following are the advantages of trainingprogram to the employee

1. Better career opportunities :-Training programs provide the latest information,

develops talent and due to this the employee is in aposition to get better jobs in the same company orother companies.

2. High rewards :-Effective training programs result in improved

performance. When performance appraisal is doneexcellent performance from the employee is rewarded bygiving him incentives and bonus.

3. Increased motivation :-Employees who have been trained are generally

more confident as compared to others. Since theirefforts will be rewarded in future they are very muchinterested in improving their performance. Therefore wecan say that their motivation levels are very high.

4. Group efforts :- Training programs are not only technical

programs but are also conducted in areas like conflictmanagement, group dynamics (formal and informalgroups), behavioral skills, stress management etc. thisenables employees to put in group effort without facing

problems that groups normally face. In other wordstraining teaches people to work in a group.

5. Promotion :-People who attend training programs learn from

them and improve themselves are generally

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considered for promotion. Thus training increaseschances of promotion.

Performance appraisal

erformance appraisal is defined by Wayne Cascio as thesystematic description of employees job relevant, strength,weakness. Performance appraisal may be conductedonce in every 6 months or once in a year. The basic idea ofthe appraisal is to evaluate the performance of theemployee, giving him a feed back. Identify areas whereimprovement is required so that training can be provided.Give incentives and bonus to encourage employees etc.

Method of performance appraisalPerformance appraisal is defined by Wayne Cascio as

the systematic description of employees job relevant,strength, weakness. Companies use different methodsof appraisal for identifying and appraising the skills andqualities of their employees. The different methods usedcan be explained with the help of following diagram.

Methods of performance appraisal

Traditional method Modern method

1. Check list method 1. Role analysis

2. Confidential report 2. Assessment centers

3. Critical incident method 3. management by objective

4. Ranking method 4. Behavioral anchored rating

scale5. Graphic rating scale 5. Psychological testing

6. Narrated essay 6. Human resource accounting

7. 360* Appraisal

Traditional method

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Traditional method of performance appraisal has beenused by companies for very long time. A common feature ofthese methods is they are all relatively simple and involveappraisal by one senior.

1.Check list method :-In this method the senior, the boss is given a list

of questions about the junior. These questions arefollowed by check boxes. The superior has to put a tickmark in any one of the boxes

This method can be explained with the following eg.

Y N

Does the employee have leadership qualities?Y NIs the employee capable of group efforts?

Y NHas the employee shown analytical skills?on the job

As seen in the above eg. A questioner containingquestions is given to the senior. This method is an

extremely simple method and does not involve a lot oftime. The same set of questioners can be given foe everyemployee so that there is uniformity in selecting

employee.

2. Confidential report :- This method is very popular in government

departments to appraise IAS officers and other highlevel officials. In this method the senior or the boss writesa report about the junior giving him details about theperformance about the employee. The +ve and ve traits,responsibilities handled on the job and recommendations

for future incentives or promotions. The report is kepthighly confidential and access to the report is limited.

3. Critical incident method :-)In this method critical or important incidents

which have taken place on this job are noted down alongwith employees behavior and reaction in all thesesituations. Both +ve and ve incidents are mentioned. This

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is followed by an analysis of the person, his abilities andtalent, recommendations for the future incentives andpromotions.

4. Ranking method :-In this method ranks are given to employees

based on their performance. There are differentmethods of ranking employees.

Simple ranking method

o Alternate ranking methodo Paired comparison method

i. Simple ranking method :-Simple ranking method refers to ranks in serial

order from the best employee eg. If we have to rank 10best employees we start with the first best employeeand give him the first rank this is followed by the 2nd bestand so on until all 10 have been given ranks.

ii. Alternate ranking :-In this method the serial alternates between the

best and the worst employee. The best employee isgiven rank 1 and then we move to the worst employeeand give him rank 10 again to 2nd best employee and givehim rank 2 and so on.

iii. Paired comparison :-

In this method each and every person is thegroup, department or team is compared with every otherperson in the team/group/department. The comparisonis made on certain criteria and finally ranks are given.

This method is superior because it compares each andevery person on certain qualities and provides a rankingon that basis.

5. Graphic rating scale :-

Graphic rating scale refers to using specificfactors to appraise people. The entire appraisal is

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presented in the form of a chart. The chart containscertain columns which indicate qualities which arebeing appraised and other columns which specify the rankto be given.

Eg. Employee AQuality of work

Quantity of work

Intelligence

Excellent

Very good

good

satisfactory

poor

The senior has to put a tick mark for a particular qualityalong with the ranking. Such charts are prepared for everyemployee. According to the department in which they work.Sometimes the qualities which are judged may changedepending upon the department.

6. Narrated essay :-In this method the senior or the boss is supposed

to write a narrative essay describing the qualities of his junior. He may describe the employees strength andweakness, analytical abilities etc. the narrative essay endswith a recommendation for future promotion or for futureincentives.

Modern methodsModern methods of appraisal are being increasingly

used by companies. Now days one of the striving feature

that appraisal involves is, the opinion of many people aboutthe employee and in some cases psychological test areused to analyze the ability of employee. These methods areas follows

1. Role analysis :-In this method of appraisal the person who is being

apprised is called the focal point and the members of hisgroup who are appraising him are called role set members.

These role set members identify key result areas (KRA 2

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marks) (areas where you want improvement are calledKRA) which have to be achieved by the employee. The KRAand their improvement will determine the amount ofincentives and benefits which the employee will receive in

future. The appraisal depends upon what role set membershave to say about the employee.

2. Assessment centers :-Assessment centers (AC) are places where the

employees are assessed on certain qualities talents andskills which they possess. This method is used for selectionas well as for appraisal. The people who attend assessmentcenters are given management games, psychological test,

puzzles, questioners about different management relatedsituations etc. based on their performance in these test angames appraisal is done.

3. Management by objective :-This method was given by Petter Druckard in 1974. It

was intended to be a method of group decision making. Itcan be use for performance appraisal also. In this methodall members of the of the department starting from the

lowest level employee to the highest level employeetogether discus, fix target goals to be achieved, plan forachieving these goals and work together to achieve them.

The seniors in the department get an opportunity toobserve their junior- group efforts, communication skills,knowledge levels, interest levels etc. based on thisappraisal is done.

4. Behavioral anchored rating scale :-In this method the appraisal is done to test the

attitude of the employee towards his job. Normally peoplewith +ve approach or attitude view and perform their jobdifferently as compared to people with a ve approach.

5. Psychological testing :-In this method clinically approved psychological test

are conducted to identify and appraise the employee. Afeedback is given to the employee and areas ofimprovement are identified.

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6. Human resource audit/accounting :-In this method the expenditure on the employee is

compared with the income received due to the efforts ofthe employee. A comparison is made to find out the utility

of the employee to the organization. The appraisal informsthe employee about his contribution to the company andwhat is expected in future.

7. 360* appraisal :-In this method of appraisal and all round approach is

adopted. Feedback about the employee is taken from theemployee himself, his superiors, his juniors, his colleagues,customers he deals with, financial institutions and other

people he deals with etc. Based on all these observationsan appraisal is made and feedback is given. This is one ofthe most popular methods.

Process of performance appraisalPerformance appraisal is defined by Wayne Cascio as

the systematic description of employees job relevant,strength, weakness. Process of performance appraisalfollowed by different companies is different. A general

procedure is explained below with the help of a diagram.

Process of performance appraisal

Setting performance standards

Communicating standards set to the employee

Measuring performance

Comparing performance with standard

Discussing result

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Collective action

Implementation and review

1. Setting performance standards :-In this very first step in performance appraisal the HR

department decides the standards of performance i.e. theydecide what exactly is expected from the employee foreach and every job. Sometimes certain marking schememay be adopted eg. A score 90/100 = excellentperformance, a score os 80/100 = good. And so on.

2. Communication standard set to the employee :-Standards of performance appraisal decided in 1st stepare now conveyed to the employee so that the employeewill know what is expected from him and will be able toimprove his performance.

3. Measuring performance :-The performance of the employee is now measure by

the HR department, different methods can be used to

measure performance i.e. traditional and modern method. The method used depends upon the companysconvenience.

4. Comparing performance with standard :- The performance of the employee is now judged

against the standard. To understand the score achieved byhim. Accordingly we come to know which category ofperformance the employee falls into i.e. excellent, verygood, good, satisfactory etc.

5. Discussing result :- The results obtained by the employee after

performance appraisal are informed or conveyed to him bythe HR department. A feedback is given to the employeeasking him to change certain aspects of his performanceand improve them.

6. Collective action :-

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The employee is given a chance or opportunity toimprove himself in the areas specified by the HRdepartment. The HR department constantly receives orkeeps a check on the employees performance and notes

down improvements in performance.

7. Implementation and review :- The performance appraisal policy is to be

implemented on a regular basis. A review must be donefrom time to time to check whether any change in policy isrequired. Necessary changes are made from time to time.

Limitations of performance appraisal

Performance appraisal is defined by Wayne Cascio asthe systematic description of employees job relevant,strength, weakness.

The following are the limitations of performance appraisal

1. Halo effect :-In this case the superior appraises the person on

certain positive qualities only. The negative traits are notconsidered. Such an appraisal will no give a true picture

about the employee. And in some cases employees who donot deserve promotions may get it.

2. Horn effect :-In this case only the negative qualities of the

employee are considered and based on this appraisal isdone. This again will not help the organization becausesuch appraisal may not present a true picture about theemployee.

3. Central tendency :-In this case the superior gives an appraisal by giving

central values. This prevents a really talented employeefrom getting promotions he deserves and some employeeswho do not deserve any thing may get promotion.

4. Leniency and strictness :-Some bosses are lenient in grading their employees

while some are very strict. Employee who really deservespromotions may loose the opportunity due to strict bosses

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while those who may not deserve may get benefits due tolenient boss.

5. Spill over effect :-

In this case the employee is judged +vely or vely bythe boss depending upon the past performance. Thereforealthough the employee may have improved performance,he may still not get the benefit.

6. Fear of loosing subordinates and spoilingrelations :-

Many bosses do not wish to spoil their relations with

their subordinates. Therefore when they appraise theemployee they may end up giving higher grades which arenot required. This is a n injustice to really deservingemployees.

7. Goodwill and techniques to be used :-Sometimes a very strict appraisal may affect the

goodwill between senior and junior. Similarly when differentdepartments in the same company use different methods

of appraisal it becomes very difficult to compareemployees.

8. Paper work and personal biased :-Appraisal involves a lot of paper work. Due to this the

work load of HR department increases. Personal bias andprejudice result in bosses favoring certain people and notfavoring others.

Advantages/needs/importance/use/purpose ofperformance appraisal

Performance appraisal is defined by Wayne Cascio asthe systematic description of employees job relevant,strength, weakness.

1. Feedback to the employee :-Performance appraisal is beneficial because it

provides feedback to the employee about his performance.

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It identifies the areas for improvement so that employeecan improve itself.

2. Training and development :-

Due to performance appraisal it is easy to understandwhat type of training is required for each employee toimprove himself accordingly training programs can bearranged.

3. Helps to decide promotion :-Performance appraisal provides a report about the

employee. Based on this report future promotions aredecided, incentives, salary increase is decided.

4. Validation of selection process :- Through performance appraisal the HR department

can identify whether any changes are required in theselection process of the company normally a soundselection process results in better performance and positiveappraisal.

5. Deciding transfers and lay off of the worker :-Employee with specific talent can be transferred toplaces where their talents are utilized properly; similarlydecisions regarding termination of employees depend uponperformance appraisal reports.

6. Human resource planning and careerdevelopment:-

Companies can plan for future vacancies at higherlevels based on performance appraisal reports. Similarlycareer planning can be done for the employee on theperformance appraisal report.

A job is defined as a collection of duties andresponsibilities which are given together to an individualemployee. Job analysis is the process of studying andcollecting information relating to operations andresponsibilities of a specific job. There are differentmethods used by organization to collect information andconduct the job analysis. The evolution of HRM can be

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traced back to Kautilya Artha Shastra where herecommends that government must take active interest inpublic and private enterprise. He says that governmentmust provide a proper procedure for regulating employee

and employee relation. In the medieval times there wereexamples of kings like Allaudin Khilji who regulated themarket and charged fixed prices and provided fixed salariesto their people. This was done to fight inflation and providea decent standard of living. During the pre independenceperiod of 1920 the trade union emerged. Many authors whohave given the history of HRM say that HRM startedbecause of trade union and the First World War.

The Royal commission in 1931 recommended theappointment of a labour welfare officer to look into thegrievances of workers. The factory act of 1942 made itcompulsory to appoint a labour welfare officer if the factoryhad 500 or more than 500 workers. The internationalinstitute of personnel management and national institute oflabour management were set up to look into problemsfaced by workers to provide solutions to them

Off the job training method:-Off the job training refers to me

hrm notes ok

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