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Human Resource Management

This book is a part of the course by uts, Pune.This book contains the course content for Human Resource Management.

© uts, PuneFirst Edition 2013

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Index

I. Content .................................................................... II

II. List of Figures .......................................................XI

III. List of Tables ..................................................... XII

IV. Abbreviations ................................................... XIII

V. Case Study .......................................................... 152

VI. Bibliography ...................................................... 155

VII. Self Assessment Answers ................................ 159

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Human Resource Management-An Introduction ..................................................................................... 1Aim ................................................................................................................................................................ 1Objectives ...................................................................................................................................................... 1Learning outcome .......................................................................................................................................... 11.1 Introduction .............................................................................................................................................. 21.2 Responsibilities of Human Resource Management ................................................................................. 2 1.2.1 Human Resource Management Goal ....................................................................................... 2 1.2.2 Recruitment and Selection of Candidates ................................................................................ 2 1.2.3 Training and Development of Employee ................................................................................. 2 1.2.4 Organisational Development ................................................................................................... 2 1.2.5 Career Development of the Employee ..................................................................................... 2 1.2.6 Job Design ................................................................................................................................ 3 1.2.7 Performance Management System .......................................................................................... 31.3 Comparison between Personnel Management and Human Resource Management ................................ 3 1.3.1 Comparison on the basis of Beliefs and Assumption .............................................................. 3 1.3.2 Comparison on the basis of Strategic Aspects ......................................................................... 3 1.3.3 Comparison on the basis of Line Management ....................................................................... 4 1.3.4 Key Levers ............................................................................................................................... 41.4 Importance of the Human Resource Management ................................................................................... 41.5 Role of the Human Resource Management ............................................................................................. 51.6 Human Relation Theory ........................................................................................................................... 51.7 Revolution of the Human Resource Management ................................................................................... 61.8 Human Relation Concept ......................................................................................................................... 61.9 To Understand Human Behavior .............................................................................................................. 6Summary ....................................................................................................................................................... 7References ..................................................................................................................................................... 7Recommended Reading ............................................................................................................................... 7Self Assessment ............................................................................................................................................. 8

Chapter II ................................................................................................................................................... 10Human Resource Management in India .................................................................................................. 10Aim .............................................................................................................................................................. 10Objectives .................................................................................................................................................... 10Learning outcome ........................................................................................................................................ 102.1 Introduction .............................................................................................................................................112.2 Concern of the Human Resource Management Department ..................................................................112.3 Significance of the Human Resource Department .................................................................................112.4 History of the Human Resource Management in India ..........................................................................112.5 Indian Management is Unique ............................................................................................................... 122.6 Human Relation Movement in India ...................................................................................................... 122.7 Scope of Human Resource Management in India .................................................................................. 15Summary ..................................................................................................................................................... 16References ................................................................................................................................................... 16Recommended Reading ............................................................................................................................. 16Self Assessment ........................................................................................................................................... 17

Chapter III .................................................................................................................................................. 19Human Resource Planning ........................................................................................................................ 19Aim .............................................................................................................................................................. 19Objectives .................................................................................................................................................... 19Learning outcome ........................................................................................................................................ 19

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3.1 Definition ............................................................................................................................................... 20 3.1.1 Human Resource Planning ..................................................................................................... 203.2 Benefits of HRP ..................................................................................................................................... 203.3 Uses of HRP ........................................................................................................................................... 203.4 Activities Involve in HRP ...................................................................................................................... 203.5 Need for HRP ......................................................................................................................................... 213.6 Process of HRP ...................................................................................................................................... 21 3.6.1 Benefits of HRP ..................................................................................................................... 223.7 Human Resource Planning System ........................................................................................................ 233.8 Responsibility of Human Resource Planning Department .................................................................... 23Summary ..................................................................................................................................................... 25References ................................................................................................................................................... 25Recommended Reading ............................................................................................................................. 25Self Assessment ........................................................................................................................................... 26

Chapter IV .................................................................................................................................................. 28Recruitment and Selection ........................................................................................................................ 28Aim .............................................................................................................................................................. 28Objectives .................................................................................................................................................... 28Learning outcome ........................................................................................................................................ 284.1 Introduction ............................................................................................................................................ 294.2 Concept of Recruitment and Selection .................................................................................................. 29 4.2.1 Manpower Planning ............................................................................................................... 29 4.2.2 Job Analysis Method .............................................................................................................. 29 4.2.3 Identification of Vacancies ..................................................................................................... 30 4.2.4 Preparation of Budget ............................................................................................................ 30 4.2.5 Preparation and Publication of Information ........................................................................... 30 4.2.6 Reception of Application Form .............................................................................................. 304.3 Other Methods of Recruitment .............................................................................................................. 31 4.3.1 Campus Recruitment .............................................................................................................. 31 4.3.2 Walk-In Interview .................................................................................................................. 31 4.3.3 Employee’s Referrals ............................................................................................................. 31 4.3.4 Labor Unions ......................................................................................................................... 31 4.3.5 Indoctrination Seminars ......................................................................................................... 32 4.3.6 Unconsolidated Application ................................................................................................... 32 4.3.7 Nepotism ................................................................................................................................ 32 4.3.8 Leasing ................................................................................................................................... 32 4.3.9 Voluntary Organisations ......................................................................................................... 32 4.3.10 Computer Data Bank ........................................................................................................... 324.4 Recruitment and Selection Policy .......................................................................................................... 33 4.4.1 Selection Policy ..................................................................................................................... 33 4.4.2 Recruitment Policy ................................................................................................................ 334.5 Recruitment Practice In India ................................................................................................................ 334.6 Selection Technique ............................................................................................................................... 344.7 Evaluation and Selection Criteria .......................................................................................................... 344.8 The Selection Process ............................................................................................................................ 35 4.8.1 Preliminary Interviews ........................................................................................................... 35 4.8.2 Application Blanks ................................................................................................................. 35 4.8.3 Check of References .............................................................................................................. 36 4.8.4 Written Tests .......................................................................................................................... 36 4.8.5 Employment Interviews ......................................................................................................... 36 4.8.6 Medical Examination ............................................................................................................. 36 4.8.7 Appointment Letter ................................................................................................................ 36 4.8.8 Informal Interview ................................................................................................................. 36

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4.8.9 Formal Interview .................................................................................................................... 36 4.8.10 Patterned Interview .............................................................................................................. 37 4.8.11 Depth Interview ................................................................................................................... 37 4.8.12 Stress Interview .................................................................................................................... 37 4.8.13 Group Interview ................................................................................................................... 37 4.8.14 Panel Interview .................................................................................................................... 374.9 Approval by Manager ............................................................................................................................ 384.10 Medical Examination ........................................................................................................................... 384.11 Induction .............................................................................................................................................. 38Summary .................................................................................................................................................... 39References ................................................................................................................................................... 39Recommended Reading ............................................................................................................................. 39Self Assessment ........................................................................................................................................... 40

Chapter V .................................................................................................................................................... 42Training and Development ........................................................................................................................ 42Aim .............................................................................................................................................................. 42Objectives .................................................................................................................................................... 42Learning outcome ........................................................................................................................................ 425.1 Introduction ............................................................................................................................................ 435.2 Concept of Training ............................................................................................................................... 435.3 Objective of Training ............................................................................................................................. 43 5.3.1 To Increase Productivity ........................................................................................................ 43 5.3.2 To Improve Quality ................................................................................................................ 43 5.3.3 To Help a Company Fulfill its Future Personnel Needs ........................................................ 43 5.3.4 To Improve Organisational Climate ....................................................................................... 43 5.3.5 Obsolescence Prevention ....................................................................................................... 44 5.3.6 Personal Growth .................................................................................................................... 445.4 Difference between Training and Development .................................................................................... 445.5 Objective of Training ............................................................................................................................. 44 5.5.1 Acquiring Intellectual Knowledge ......................................................................................... 44 5.5.2 Acquiring Manual Skills ........................................................................................................ 44 5.5.3 Acquiring Problem-solving Skills .......................................................................................... 455.6 Importance of Training .......................................................................................................................... 455.7 Benefits of Training................................................................................................................................ 455.8 Training Need Identification .................................................................................................................. 465.9 Total Organisational Analysis ................................................................................................................ 465.10 Organisation Analysis Requirements ................................................................................................... 465.11 Organisational Diagnosis ..................................................................................................................... 475.12 Task Analysis ....................................................................................................................................... 47 5.12.1 Task Lists ............................................................................................................................. 47 5.12.2 Job Breakdown .................................................................................................................... 48 5.12.3 Job Performance .................................................................................................................. 485.13 Performance Analysis .......................................................................................................................... 495.14 Training Needs Identification ............................................................................................................... 495.15 Different Kinds of Training Needs....................................................................................................... 495.16 Methodology of Training and Development ........................................................................................ 49 5.16.1 On-the-job Technique .......................................................................................................... 49 5.16.2 Off-the-job Technique .......................................................................................................... 49 5.16.3 Orientations are for New Employees ................................................................................... 505.17 Training and Development Process ..................................................................................................... 505.18 Simulation Exercises and Role Paying ................................................................................................ 50 5.18.1 Audiovisual .......................................................................................................................... 50 5.18.2 Job Rotation ......................................................................................................................... 51

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5.18.3 Apprenticeship ..................................................................................................................... 51 5.18.4 Internship ............................................................................................................................. 51 5.18.5 Programmed Learning ......................................................................................................... 51 5.18.6 Laboratory Training ............................................................................................................. 515.19 Evaluating Training Program ............................................................................................................... 515.20 What Should Be Evaluated? ................................................................................................................ 515.21 Training Evaluation Outcomes ............................................................................................................ 52 5.21.1 Reactions .............................................................................................................................. 52 5.21.2 Learning ............................................................................................................................... 53 5.21.3 Behavior ............................................................................................................................... 53 5.21.4 Results .................................................................................................................................. 53Summary ..................................................................................................................................................... 54References ................................................................................................................................................... 54Recommended Reading ............................................................................................................................. 54Self Assessment ........................................................................................................................................... 55

Chapter VI ................................................................................................................................................. 57Employees Growth ..................................................................................................................................... 57Aim .............................................................................................................................................................. 57Objectives .................................................................................................................................................... 57Learning outcome ........................................................................................................................................ 576.1 Introduction ............................................................................................................................................ 586.2 What is Career Planning? ....................................................................................................................... 586.3 Importance of Career Planning .............................................................................................................. 586.4 Succession Planning ............................................................................................................................... 596.5 Need for Succession Planning ............................................................................................................... 596.6 Other Career Programs .......................................................................................................................... 59 6.6.1 Work Family Programs .......................................................................................................... 59 6.6.2 Relocation Assistance and Hiring Practices ........................................................................... 60 6.6.3 Work Family Seminar and Flexible HR Practices ................................................................. 60 6.6.4 Flexible Work Schedules ....................................................................................................... 60 6.6.5 Outplacement Program .......................................................................................................... 60 6.6.6 Special Programs for Women, Minorities and Employees with Disabilities ........................ 61 6.6.7 Fast Track Employees ............................................................................................................ 61Summary ..................................................................................................................................................... 62References ................................................................................................................................................... 62Recommended Reading ............................................................................................................................. 62Self Assessment ........................................................................................................................................... 63

Chapter VII ............................................................................................................................................... 65Performance Appraisal .............................................................................................................................. 65Aim .............................................................................................................................................................. 65Objectives .................................................................................................................................................... 65Learning outcome ........................................................................................................................................ 657.1 Introduction ............................................................................................................................................ 667.2 Concept and Need of Employee Review ............................................................................................... 667.3 Concept of Performance Appraisal ........................................................................................................ 67 7.3.1 Objectives of Performance Appraisal .................................................................................... 677.4 Types of Appraisal Methods .................................................................................................................. 67 7.4.1 Critical Incident Method ........................................................................................................ 67 7.4.2 Weighted Checklist Method ................................................................................................... 67 7.4.3 Paired Comparison Analysis .................................................................................................. 67 7.4.4 Graphic Rating Scales ............................................................................................................ 68 7.4.5 Essay Evaluation Method ...................................................................................................... 68

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7.4.6 Behaviorally Anchored Rating Scales ................................................................................... 68 7.4.7 Performance Ranking Method ............................................................................................... 68 7.4.8 Management by Objective (MBO) Method ........................................................................... 68 7.4.9 360 Degree Performance Appraisal ....................................................................................... 68 7.4.10 Forced Ranking (Forced Distribution) ................................................................................. 68 7.4.11 Behavioral Observation Scale .............................................................................................. 687.5 360 Degree Performance Appraisal ....................................................................................................... 687.6 Steps of the Performance Appraisal ....................................................................................................... 69 7.6.1 Superiors ................................................................................................................................ 69 7.6.2 Self-assessment ...................................................................................................................... 69 7.6.3 Peers ....................................................................................................................................... 70 7.6.4 Subordinates ........................................................................................................................... 71 7.6.5 Customers .............................................................................................................................. 717.7 Important Factor in the 360 Degree Feedbacks ..................................................................................... 727.8 Advantages of the 360 Degree Appraisal ............................................................................................... 727.9 Problem with the 360 Degree Appraisal Process ................................................................................... 727.10 Management by Objectives (MBO) ..................................................................................................... 737.11 Unique Features and Advantages of MBO .......................................................................................... 737.12 Benefit of the Performance Appraisal .................................................................................................. 74Summary ..................................................................................................................................................... 76References ................................................................................................................................................... 76Recommended Reading ............................................................................................................................. 76Self Assessment ........................................................................................................................................... 77

Chapter VIII ............................................................................................................................................... 79Compensation Management ..................................................................................................................... 79Aim .............................................................................................................................................................. 79Objectives .................................................................................................................................................... 79Learning outcome ........................................................................................................................................ 798.1 Introduction ............................................................................................................................................ 80 8.1.1 Components of Compensation System .................................................................................. 808.2 Types of Compensation .......................................................................................................................... 80 8.2.1 Direct Compensation ............................................................................................................. 80 8.2.2 Indirect Compensation ........................................................................................................... 818.3 Need of Compensation Management ..................................................................................................... 828.4 Managing Compensation ....................................................................................................................... 82 8.4.1 Subsistence Theory ................................................................................................................ 82 8.4.2 Standard of Living Theory ..................................................................................................... 83 8.4.3 Residual Claimant Theory ..................................................................................................... 83 8.4.4 The Wage Fund Theory .......................................................................................................... 83 8.4.5 Demand and Supply Theory .................................................................................................. 83 8.4.6 Marginal Productivity Theory ................................................................................................ 83 8.4.7 Purchasing Power Theory ...................................................................................................... 83 8.4.8 The Bargaining Theory of Wages .......................................................................................... 83 8.4.9 Classification of Wages .......................................................................................................... 848.5 Designing and Administering Benefits .................................................................................................. 85 8.5.1 Collective Bargaining ............................................................................................................ 85 8.5.2 Mediation and Conciliation ................................................................................................... 85 8.5.3 Investigation ........................................................................................................................... 85 8.5.4 Arbitration .............................................................................................................................. 85 8.5.5 Adjudication ........................................................................................................................... 85

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Summary ..................................................................................................................................................... 87References ................................................................................................................................................... 87Recommended Reading ............................................................................................................................. 87Self Assessment ........................................................................................................................................... 88

Chapter IX .................................................................................................................................................. 90Job Evaluation ............................................................................................................................................ 90Aim .............................................................................................................................................................. 90Objectives .................................................................................................................................................... 90Learning outcome ........................................................................................................................................ 909.1 Introduction ............................................................................................................................................ 919.2 Assess Employee Contribution .............................................................................................................. 919.3 Definition of Job Evaluation .................................................................................................................. 919.4 Objective of Job Evaluation ................................................................................................................... 919.5 Essentials for the Success of Job Evaluation Programme ..................................................................... 929.6 Procedure of Job Evaluation .................................................................................................................. 92 9.6.1 Analyse and Prepare Job Description .................................................................................... 92 9.6.2 Select and Prepare a Job evaluation Plan ............................................................................... 92 9.6.3 Classify Jobs .......................................................................................................................... 92 9.6.4 Install the Programme ............................................................................................................ 93 9.6.5 Maintain the Programme ....................................................................................................... 939.7 Job Evaluation Method .......................................................................................................................... 939.8 Advantages of Job Evaluation ................................................................................................................ 959.9 Limitations of Job Evaluation ................................................................................................................ 959.10 Job Satisfaction .................................................................................................................................... 959.11 Determinants of Job Satisfaction ........................................................................................................ 969.12 Promotion and Transfers ...................................................................................................................... 969.13 Promotion ............................................................................................................................................. 969.14 Definitions of Promotion...................................................................................................................... 969.15 Transfers ............................................................................................................................................... 979.16 Types of Transfer ................................................................................................................................. 97Summary ..................................................................................................................................................... 98References ................................................................................................................................................... 98Recommended Reading ............................................................................................................................. 98Self Assessment ........................................................................................................................................... 99

Chapter X ................................................................................................................................................ 101Morale ....................................................................................................................................................... 101Aim ............................................................................................................................................................ 101Objectives .................................................................................................................................................. 101Learning outcome ...................................................................................................................................... 10110.1 Introduction ........................................................................................................................................ 10210.2 Meaning of Morale ............................................................................................................................ 10210.3 What is Low Morale? ......................................................................................................................... 10210.4 Importance of Morale ........................................................................................................................ 10310.5 Employee’s Morale ............................................................................................................................ 103 10.5.1 The Employee’s Background ............................................................................................ 103 10.5.2 An Employee’s Personal Environment Encompasses ........................................................ 104 10.5.3 Management Practices Influencing Morale Include .......................................................... 104 10.5.4 Bottom Line ....................................................................................................................... 10410.6 Morale and Productivity .................................................................................................................... 10410.7 Measurement of Employee’s Morale ................................................................................................. 10510.8 Interview Method ............................................................................................................................... 105 10.8.1 Guided Interview ............................................................................................................... 105

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10.8.2 Unguided Interview ........................................................................................................... 10510.9 A Combination of the Guided and Unguided Interview .................................................................... 10610.10 Company’s Record Method ............................................................................................................. 10610.11 General Impression of the Supervisor .............................................................................................. 10610.12 Listening-in by a Trained Observer ................................................................................................. 10610.13 The Questionnaire Method............................................................................................................... 10610.14 Conducting the Survey ..................................................................................................................... 10710.15 Measurement of Employee Morale .................................................................................................. 10710.16 Improving Morale ............................................................................................................................ 107Summary ................................................................................................................................................... 109References ................................................................................................................................................. 109Recommended Reading ........................................................................................................................... 109Self Assessment ..........................................................................................................................................110

Chapter XI ................................................................................................................................................112Motivation ..................................................................................................................................................112Aim .............................................................................................................................................................112Objectives ...................................................................................................................................................112Learning outcome .......................................................................................................................................11211.1 Introduction .........................................................................................................................................11311.2 Concept of Motivation ........................................................................................................................11311.3 Definition of Motivation by Different Author .....................................................................................11311.4 The Motivation Cycle .........................................................................................................................11411.5 Working Situation of Employees ........................................................................................................11511.6 Motivation Techniques ........................................................................................................................11511.7 Steps of Motivation .............................................................................................................................11511.8 Theories of Motivation ........................................................................................................................11711.9 Maslow’s Hierarchy of Needs .............................................................................................................11711.10 McGregor’s Theory X and Theory Y ................................................................................................119 11.10.1 Theory X ...........................................................................................................................119 11.10.2 Theory Y............................................................................................................................119 11.10.3 Theory Z ............................................................................................................................119 11.10.4 Some Important Points ..................................................................................................... 12011.11 Herzberg’s Hygiene & Motivational Factors ................................................................................... 120 11.11.1 Hygiene or Dissatisfiers ................................................................................................... 120 11.11.2 Motivators or Satisfiers .................................................................................................... 12111.12 Analysis of Maslow, Herzberg, and McGregor’s Theories .............................................................. 121Summary ................................................................................................................................................... 122References ................................................................................................................................................. 122Recommended Reading ........................................................................................................................... 123Self Assessment ......................................................................................................................................... 124

Chapter XII .............................................................................................................................................. 126Grievance and Discipline Procedure ...................................................................................................... 126Aim ............................................................................................................................................................ 126Objectives .................................................................................................................................................. 126Learning outcome ...................................................................................................................................... 12612.1 Introduction ........................................................................................................................................ 12712.2 Causes of Grievance Arise ................................................................................................................. 12712.3 Pre-requisites of a Grievance Procedure ............................................................................................ 12812.4 Grievance Handling Procedure .......................................................................................................... 12912.5 Benefits of the Grievance Handling ................................................................................................... 12912.6 Grievance Handling ........................................................................................................................... 129 12.6.1 Initial Step .......................................................................................................................... 129

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12.6.2 Intermediate Step ............................................................................................................... 130 12.6.3 Final Company-Union Step ............................................................................................... 13012.7 Arbitration .......................................................................................................................................... 13012.8 Concept of the Discipline ................................................................................................................... 13012.9 Principles for Maintenance of Discipline .......................................................................................... 13112.10 Meaning and Objective of Discipline .............................................................................................. 13112.11 The Aims and Objectives of Discipline .......................................................................................... 13112.12 Disciplinary Procedure ..................................................................................................................... 13212.13 Basic Ingredients or Guidelines of a Disciplinary Action ............................................................... 13212.14 Disciplinary:Action Penalties .......................................................................................................... 13212.15 Procedure for Disciplinary ............................................................................................................... 132 12.15.1 An Accurate Statement of the Disciplinary Problem ....................................................... 133 12.15.2 Collection of Data or Fact Bearing on the Case .............................................................. 133 12.15.3 Selection of Tentative Penalty ......................................................................................... 133 12.15.4 Choice of Penalty ............................................................................................................ 133Summary ................................................................................................................................................... 134References ................................................................................................................................................. 134Recommended Reading ........................................................................................................................... 134Self Assessment ......................................................................................................................................... 135

Chapter XIII ............................................................................................................................................. 137Group and Leadership ............................................................................................................................ 137Aim ............................................................................................................................................................ 137Objectives .................................................................................................................................................. 137Learning outcome ...................................................................................................................................... 13713.1 Concept of Group ............................................................................................................................... 138 13.1.1 Definition of Group ............................................................................................................ 13813.2 Characteristic of a Group ................................................................................................................... 13813.3 Group Fulfills the Needs of its Members ........................................................................................... 13813.4 Group Serves the Purposes ................................................................................................................ 13813.5 Types of Groups ................................................................................................................................. 13913.6 Formal Work Groups ......................................................................................................................... 13913.7 Informal Work Groups ....................................................................................................................... 139 13.7.1 Informal Work Groups and Security Needs ....................................................................... 139 13.7.2 Informal Work Groups and Social Needs .......................................................................... 139 13.7.3 Informal Work Groups and Esteem Needs ........................................................................ 140 13.7.4 Advantages of Informal Groups ......................................................................................... 140 13.7.5 Disadvantages of Informal Groups .................................................................................... 140 13.7.6 Elements of Group Behavior ............................................................................................. 14013.8 Group Decision Making ..................................................................................................................... 14213.9 Advantages of Group Decision Making ............................................................................................. 14213.10 Potential Problems with Group Decisions ....................................................................................... 14213.11 Problems of Individual Dominance ................................................................................................. 14213.12 Group Dynamics .............................................................................................................................. 14313.13 Principles of Group Dynamics ......................................................................................................... 14313.14 Definition of Leadership .................................................................................................................. 14313.15 Concept of Leadership ..................................................................................................................... 14413.16 Characteristics of Leadership ........................................................................................................... 14413.17 Co-existence with Followership ...................................................................................................... 14413.18 Responsibility .................................................................................................................................. 14413.19 Understanding Nature ...................................................................................................................... 14413.20 Situation ........................................................................................................................................... 14413.21 Importance of Leadership ................................................................................................................ 14413.22 Impact of Leadership in an Organisation ......................................................................................... 145

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13.23 Leadership Theories ......................................................................................................................... 14513.24 Contingency Theories ...................................................................................................................... 14613.25 Situational Leadership Theory ......................................................................................................... 14713.26 The Path-Goal Theory ...................................................................................................................... 14713.27 Contemporary Theories.................................................................................................................... 14713.28 Charismatic Leaders ......................................................................................................................... 14713.29 Transformational Leader .................................................................................................................. 14813.30 Team Leader ..................................................................................................................................... 14813.31 Classification of Leadership ............................................................................................................. 148Summary ................................................................................................................................................... 149References ................................................................................................................................................. 149Recommended Reading ........................................................................................................................... 149Self Assessment ......................................................................................................................................... 150

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List of Figures

Fig. 3.1 Block diagram of HRP .................................................................................................................... 22Fig. 3.2 Flowchart of HRP ........................................................................................................................... 23Fig. 7.1 Performance appraisal .................................................................................................................... 69Fig. 7.2 Management by objectives ............................................................................................................. 74Fig. 11.1 Motivation cycle ..........................................................................................................................114Fig. 11.2 Maslow’s hierarchy of need .........................................................................................................118Fig. 11.3 Herzberg’s hygiene and motivational factors ............................................................................. 120Fig. 12.1 Grievance handling procedure .................................................................................................... 129

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List of Tables

Table 1.1 Comparison of personnel management and HRM on the basis of beliefs and assumption ........... 3Table 1.2 Comparison of personnel management and HRM on the of basis strategic aspects ...................... 3Table 1.3 Comparison of personnel management and HRM on the basis of line management .................... 4Table 1.4 Comparison of personnel management and HRM on the basis of key levers ............................... 4Table 2.1 Human relation movement in India.............................................................................................. 14Table 4.1 Application blanks ........................................................................................................................ 35Table 5.1 Difference between training and development ............................................................................ 44Table 5.2 Training evaluation outcome ........................................................................................................ 52Table 10.1 Morale’s definition ................................................................................................................... 102Table 11.1 Motivation by different author ..................................................................................................113Table 11.2 Maslow hierarchy of need .........................................................................................................118Table 12.1 Definition of grievances ........................................................................................................... 127Table 12.2 Definition of discipline ............................................................................................................. 131Table 13.1 Definition of group ................................................................................................................... 138

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Abbreviations

CM - Configuration Management

CMM - Capability Maturity Model

CMS - Changes Management System

ISO - International Organisation for Standardisation

MBO - Management of Objectives

SEI - Software Engineering Institute

TQM - Total Quality Management

WBS - Work Breakdown Structure

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Chapter I

Human Resource Management-An Introduction

Aim

The aim of this chapter is to:

explain the role of human resource management in an organisation•

enlist the responsibilities of human resource management (HRM)•

elucidate the human relation concept•

Objectives

The objectives of this chapter are to:

explain human resource management•

explain the responsibilities of human resource management•

describe about the revolution of human resource management•

Learning outcome

At the end of this chapter, you will be able to:

understand the responsibilities of human resource management•

differentiate between personnel management and human resource management•

recognise human resource management as a career option•


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1.1 IntroductionHuman Resource Management is the strategic and logical approach of every management system. Human Resource Management has replaced the “Personnel management”, as it brings together the most valued asset of the organisation i.e. the employees of an organisation which contribute to the achievement of the objective of the business. Human Resource Management (HRM) simply means employing people, developing their competence utilising, maintaining and compensating their services for getting the job done as per the requirement of organisations.

There are some factors discussed below which may result in success or failure of any organisationThe business and political surroundings that can influence an undesirable thinking in the masses.• Lack of resources that can reduce the productivity.• Incompetency of the employees that can degrade the quality of the product.• Lack of constructive motivation can lower employees’ involvement in work.• Lack of supervision can lead to inefficiency.• Most important factor is the communication gap that exists between the workers and the management. Such•

filtration of communication can result in serious organisational conflicts.

1.2 Responsibilities of Human Resource ManagementThe proper steps carried out to improve performance, productivity, relation between employees and management. Let us go through the responsibility of the Human Resource management on by one:

1.2.1 Human Resource Management Goal

Goal of the Human Resource management is to communicate with the people in the organisations.• They have to bring the employees and the management together and improve productivity and efficiency • collectively.The main goal of Human Resource Management is to use proper human resources, develop their skills and•

motivate them for doing efficient work by ensuring higher productivity and producing better quality.

1.2.2 Recruitment and Selection of Candidates

Human Resource Management team has to choose correct candidates for a particular job.• Selection process is carried out by taking interviews of candidates and examines their qualification and • ability.

1.2.3 Training and Development of EmployeeTraining an individual is carried out by recognising the area where the candidate has to be trained. It is done by developing the key competence through planning and learning process.

Proper training will enhance the capability of an individual and enable him to perform well in current and in future job.

1.2.4 Organisational Development

This element helps assuring healthy inter and intra relationships.• Moreover, it helps an employee to work in the organisation and cope up with the changes made in the • organisation.

1.2.5 Career Development of the EmployeeThis ensures that the employee will stay back with the organisation and it also gives job satisfaction to the employee.

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1.2.6 Job DesignAs per the competence and training given to the individual, management has to decide the job allocation of candidates.

1.2.7 Performance Management SystemThe management and the employees communicate with each other and can address their concerns which ensure smooth functioning of the organisation. Furthermore, rewarding employees gives encouragement to the workers.

1.3 Comparison between Personnel Management and Human Resource Management1.3.1 Comparison on the basis of Beliefs and AssumptionFollowing table shows comparison between personnel management and human resource management on basis of beliefs and assumptions

Dimension Personnel Management Human Resource Management

Contract Careful description of written contract

Aim to be “beyond contract“ or else “can do”

Rules Importance of planning Impatience with rule

Guide to management plan action Mutuality procedures and clear rules “Business-need”

Behavior referent Norm / Customs and practice Value/mission

Managerial task vis-a vis Labor Monitoring Nurturing

Nature of relations Pluralist Unitarist

Conflict Institutionalised De-emphasised

Table 1.1 Comparison of personnel management and HRM on the basis of beliefs and assumption

1.3.2 Comparison on the basis of Strategic AspectsFollowing table shows comparison between personnel management and human resource management on basis of strategic aspects

Dimesion Personnel Management Human Resource Management

Key Relations Labor management Customer

Initiatives Piecemeal Integrated

Corporate Plan Marginal Central

Speed of decision Slow Fast

Table 1.2 Comparison of personnel management and HRM on the of basis strategic aspects


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1.3.3 Comparison on the basis of Line ManagementFollowing table shows comparison between personnel management and human resource management on basis of line management


Management Role Transactional Transformational leadership

Key managers Personnel/IR Specialists General/ Business/ line managers

Communication Indirect Direct

Standardisation High(e.g. parity an issue) Low(e.g.’ parity’ not seen as relevant)

Prized management Negotiation Facilitation

Table 1.3 Comparison of personnel management and HRM on the basis of line management

1.3.4 Key Levers


Selection Separate, marginal test Integrated, key task

Pay Job evolution(fixed grades) Performance-related

Conditions Separately negotiated Harmonisation

Labor management Collective bargaining contracts Toward individual contracts

Thrust of relations with stewards

Regulated through facilities and training

Marginalised(with exception of some bargaining for change models)

Job categories and grade Many Few

Communication Restricted Flow Increased flow

Job design Division of the labor Teamwork

Conflict handling Reach temporary truces Manage climate and culture

Training and development Controlled access to courses Learning companies

Focus of the attention Personnel Wide ranging cultural

For interventions Procedures Structural and personnel strategies

Table 1.4 Comparison of personnel management and HRM on the basis of key levers

1.4 Importance of the Human Resource ManagementFollowing points describes the importance of HRM

Lawrence aptly describes the manager’s job as a “• human relations job that functions through several major activities” and that “human relationship is beginning and the end of the management job”.Human Resource Management doesn’t produce any profit or neither can it earn any revenue, but it can have a • hold on the organisation that can improve productivity. Whereas, it can also produce rules and regulations by which they can motivate workforce to improve their performance.Human resource is an essential support function.• HRM has to manage money, market, material, machines and men.•

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1.5 Role of the Human Resource ManagementFollowing points describes the role of HRM

To enable the management to achieve organisational objectives through its workforce.• To ensure that the organisation fulfills all the government and social obligations.• To assist the organisation in building right number and type of employees to fulfill its goals.• To maintain performance standards and increase productivity through effective job design.• To provide an adequate orientation, training and development program.• To provide performance-related feedback and ensure effective two-way communication.• To utilise people to the fullest capacity and potential.• To create a climate in which employees are encouraged to develop and utilise their skills to the fullest.• To create and maintain a safe and healthy work environment.• To establish and maintain a harmonious employer and employee relationship.• To help the organisation to retain productive employees.•

1.6 Human Relation TheoryHuman relations management theory encompasses a rich and diverse tradition of models, ideas, techniques and research findings that often trace their roots back to the Hawthorne Experiments conducted during the late 1920s.

Researchers putting into practice experiments at the Hawthorne plant of Western Electric (in Cicero, IL) placed • two groups of employees doing the similar work into separate rooms.One group was treated as the control, and the second was exposed to a variety of experimental motivations such • as decreased lighting, rest pauses, increased lighting and so on.The researchers, F.J. Roethlisberger of Harvard and W.J. Dickson of Western Electric management, predicted • the experiment to guide different levels of the management for the investigational group.This philosophy was in vogue for the day, where traditional organisation theory conceived the organisational•

system as a mechanism that could be influenced or readjusted to influence employees.To the astonishment of the researchers, both groups increased their performance. Following analysis of these • surprising results led Roethlisberger and Dickson to conclude that the new design was tricky, which allowed inappropriate factors to enter the design that led to these surprising results.What happened was that employees in the control and experimental groups were treated as special.• They were given attention by management, separated from other employees, and encouraged to perform.• The basic lesson that emerged from this early research suggested that employees who are given attention by • administration, who are treated as special, and who perceive their work as important can become highly motivated and thus become more creative.Employees were not treated as special but rather as expendable cogs in a machine irrespective of their • performance.The need to motivate the employees to perform better was not part of the decision-making equation at that • point of time.Needless to say, the results of the Hawthorne Experiments, once the reasons for them were better understood • by managers and academicians, served as a launch pad for panoply of new theories and come up to the management.This new way of thinking that gained momentum in the 1930s and 1940s can be broadly labeled “Human•

Relations Management.”


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1.7 Revolution of the Human Resource ManagementThe revolution of the Human Resource Management is held in the world long back, since from the time of the Egyptian. Let us discuss revolution of the Human Resource Management from all over the world.

By 1920, psychologists and employment specialists in the United States started tracking the human relations • movement, which viewed workers in terms of their psychology rather than as exchangeable parts.During the middle of the last century, larger companies, typically those in the United States that emerged after • the Second World War, recruited people from the US Military and were able to apply new selection, training, leadership, and management development methods.Similarly, some leading European multinationals, such as Shell and Phillips developed new approaches to • personnel development and drew on similar approaches already used in Civil Service training. Gradually, this spreads more sophisticated policies and processes that require more central management via a personnel department composed of specialists and generalist teams.The role of what became known as Human Resources grew all through the middle of the 20th century. Anxiety • remained between academics who emphasised either ‘soft’ or ‘hard’ HR. Those professing so-called ‘soft HR’ stressed areas like leadership, cohesion, and loyalty which play important roles in organisational success. Those promoting ‘hard HR’ championed more quantitatively rigorous management techniques in the 1960s.In the later part of the last century, both the title and conventional role of the personnel function was progressively • superseded by the emergence, at least in larger organisations, of strategic human resources management and sophisticated human resources departments. Initially, this may have involved little more than renaming the function, but where transformation occurred, it became distinguished by the human resources having a more significant influence on the organisations strategic direction and gaining board-level representation.

1.8 Human Relation ConceptThe Human Relation plays a major role in any organisation. The human resource program represents an attempt to improve employee morale and motivation through an improved three-way communication and through employee participation in the decision making processes. Human relation seeks to emphasise “employee” aspect of work rather than technical or economic aspects. It seeks to make employment and working condition less impersonal. The human relation approach emphasises policies and techniques designed to improve employee morale and job satisfaction. It is believed that this is accompanied by increased employee efficiency and reduction in employee unrest.

1.9 To Understand Human BehaviorIt assists the manager to develop a better realisation of how his/her attitude and behavior plays a part in everyday • affair.It assists him/her to develop a keener sensitivity towards other people.• It helps him to develop an improved understanding of the problem reconciling his/her own interest and capability • with the needs and goals of the organisation of which (s)he is or will be a part.This enables him/her to anticipate and prevent problems, or at least to resolve more effectively those that cannot • avoid.

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SummaryHuman Resource Management is the strategic and logical approach of every management system.• Human Resource Management has replaced the “• Personnel management”, as it brings together the most valued asset of the organisation i.e. the employees of an organisation which contribute to the achievement of the objective of the businessSelection process is carried out by taking interviews of candidates and examines their qualification and • abilityTraining an individual is carried out by recognising the area where the candidate has to be trained.• Career development ensures that the employee will stay back with the organisation and it also gives job • satisfaction to the employee.HRM has to manage money, market, material, machines and men.•

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing House.Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. • A Review of Leadership Theory and Competency Frameworks.McNamara, C. • All About Human Resources and Talent Management [Online] Available at: <http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm> [Accessed 28 September 2010].Evolution of Human Resource Management • [Online] Available at: http://www.articlesbase.com/training-articles/evolution-of-human-resource-management-1294285.html> [Accessed 14 September 2012].2010. • Human Resource Management-I Video Lecture Course, Nature and Scope of HRM, [Video Online] Available at: <http://www.youtube.com/watch?v=Fa8E3tCDIpo&feature=player_embedded> [Accessed 14 September 2012].2010. • Human Resource Management-I Video Lecture Course, Analysing and Designing Job: I, [Video Online] Available at: <http://www.youtube.com/watch?v=S_1FyWMYBoo&feature=player_embedded> [Accessed 14 September 2012].

Recommended ReadingSuri, R. K. & Chhabra, T.N. • Industrial Psychology, Sun India Publications, New Delhi.Singh, K. & Duggal, B. R. • Human Resource Management, Sun India Publications, Delhi.Chhabra, T. N. • Human Resource Management, Dhanpat Rai & Co., Delhi.


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Self AssessmentThe Human Resource management doesn’t produce any profit or neither can it develop any revenue, but it can 1. have a hold on the organisation that can improve the _____________.

productivitya. processb. procedurec. powerd.

Which of the following is one of the roles of the HRM?2. To enable management to achieve organisational objectives through its workforce. a. To ensure that the organisation fulfills all the government and social obligation.b. To train an employee for improving communication.c. To form the workers union.d.

The Human Resource management is the strategic and logical approach of the _________________.3. organisation a. instituteb. administrationc. managementd.

The Human Resource management has to look after the performance of the employee and __________ them 4. accordingly.

helpa. punish b. rewardc. compensated.

Which of the following factor affects an organisation?5. Poor managementa. Incompetency of the employees that can degrade the quality of the product b. Lack of the timec. Lack of the spaced.

What are the Responsibilities of the HRM?6. To achieve profit.a. To enjoy work.b. Recruitment and selection of candidate. c. To earn money.d.

Why human Relation is necessary?7. To develop good relation among employees and employers a. For planning strategyb. To avoid confusionc. To solve the problemd.

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Role of Human Resource Management is to create and maintain a _____________work environment.8. tense and disciplined a. safe and healthyb. confuse and sadc. dominating and indisciplined.

The manager’s job as a “9. human relations job that function through several major activities” and that “human relationship are beginning and the end of the management job”. Who said these lines?

F.J. Roethlisberger of Harvard a. Roethlisberger.b. Dicksonc. Lawrence aptlyd.

Assist the manager to develop a better realisation of how his own ______________ 10. everyday affair play a part in

attitude and behavior a. time and moneyb. strategy and planning c. Power and status.d.


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Chapter II

Human Resource Management in India

Aim


elucidate the history of the India’s development in human resource management•

explain how HRM in India is different from the rest of the world•

highlight the scope of human resource management in India•

Objectives


elaborate the key factors that have developed the human resource management in India•

elucidate the human relation movement in India•

explain the concern of the human resource management department•

Learning outcome


understand India’s history of human resource management•

identify the significance of human resource management in India•

recognise the scope of human resource management in India•

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2.1 IntroductionThe India story for organisation success is one that is deeply rooted in its history and culture. Human Resource holds a key position in any development process. It is the sum total of our productive effort, guided, managed and executed through our human resource. India realised the importance of HRM in various organisations and vigorous effort is to the break the shackles of all economic barriers. Social constraint through the application of HRM concept and practices has also been realised by India. Nowadays, Human Resource is the only factor that can facilitate effective use of science and technology. HR development helps to incorporate high level of skills and knowledge. This not only improves the quality of the product but also reduces the cost of production.

2.2 Concern of the Human Resource Management DepartmentThe Human Resource department has taken some measures, so that it can provide better opportunity for the employees.

By carrying out job analysis• By providing equal employment opportunities for everyone• By forecasting the human resource necessity• By arranging orientation and training of the employees• By recruitment and Selection• By designing and implementing management and organisational development programs.•

2.3 Significance of the Human Resource Department Following points describe the significance of human resource department

Career management and succession planning• Managing employee relationship• Performance appraisal• Training and development• Managing employee welfare and social security• Managing change and developing organisation• Industrial relations.•

2.4 History of the Human Resource Management in IndiaIn 50’s -Workers were not allowed to ask any question but they only had ‘To do’ their job. That was the time • when worker were treated like salves.In 60’s - Terms like manpower, staff and personnel came into existence. This year changed the employee- • employer relationship. They were treated and served well during this phase.In Late 70’s - People realised that, productivity depends on people.• 1940s-1960s - The HR technique was introduced and since then administration was managed by the group • of people.Since then, IR, administrative leave, bonus, retirement and many other facilities were given to the employees.In 1970s-1980s regulatory managerial housing, medical leave etc. came into existence.• In 1990s union of the worker were formed.• After that, some other policies and programs were carried out by the union such as:•

Productivity through people executive formulating policies; � T&D programs.

In 1948 - Indian Institute of Personal Management (IIPM) at Kolkata was started. This institute started the • practice of HRM.In 1950 - Another institute of management known as National Institute of Labor Management (NILM) at • Mumbai laid the foundation.


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In 1990 - Milestone was achieved by renaming of ‘American Society for Personnel Administration’ (ASPA) as • the ‘Society for Human Resource Management’. This instituted gave new face to the HR management.

2.5 Indian Management is UniqueHRM in Indian organisation is indubitably unique.

There are some points which have favored their own organisation. They are as follows:• Hiring practices �Compensation standards �Benefits �Statutory governance �Performance linked reward �Payouts �

The Indian culture is deeply rooted in its society and the collective values in it provide an open collaborative • approach at the workplace.Hard-work, long working hours, purveyances and the need to earn money impact the HRM policies.• Availability of the educated mass of different caliber and skill allow the country to undertake different nature • of the work.It includes lower skilled activities such as BPOs (Business Process Outsourcing) and gradually moves up the • value curve to far more advance and complex activities as KPO’s (Knowledge Process Outsourcing).Lower wages with high quality work makes India a lucrative and preferred business destination for many • MNCs.

2.6 Human Relation Movement in India

Events DescriptionKautilya Author of Artha Shastra

Kautilya provides a systematic treatment of management of human resources during 4th century • B.C.This treatise titled as “Artha Shastra”.• This describes the logical procedures and principles with respect to labor organisation. Such • as shreni or guild system and cooperative sector.Kautilya provides an excellent discussion on staffing and personnel management.• This books has following terms that helped in managing the entire HRM process:•

Embracing job descriptions �Qualifications for jobs �Selection procedure �Executive development �Incentive systems (Sarasa-saama-daana-bheda-danda-catura or carrot and Stick approach) �andPerformance evaluation. �

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Trades based on caste

The group of society who is engaged in following activities were designated as • “Brahmins”:Teaching �Sacrifice �State management. �

Those specialising in fighting were termed ‘Kshatriyas.’• Individuals engaged in the areas of trade, business and agriculture were called Vaishya.• Those devoting themselves in manual work were known as Shudras. Later on, these professions • emerged to be hereditary, the transfer of skills and training from one generation to another were practiced such as:

Goldsmiths �Weavers �Potters �Blacksmiths �Carpenters �

BritishRule’s Era

During British rule, the Laissez-faire policy was introduced.• From the evidence of the Indigo commission, it has been seen that:•

Working conditions were terrible �Living condition were subhuman and �Several abuses prevailed in Indigo plantation. �

Several inhuman cruelties caused to the worker during tea plantation.• In addition to this, the Plantation Act of 1863 makes provisions that if the workers failed to • complete their period of contract they should be imprisoned for period not exceeding three months.Furthermore, the working conditions in the tea plantations were extremely bad.• The laborers who attempted to run away were subject to imprisonment, whipping and allied • extreme punishment.The workers were entirely helpless in the face of the organised and powerful European • planters.The above conditions prevailed till the performance of the Factory Act of 1881.• According to the Act, the workers employed in the factories were allowed a week off day.• As well as, provisions were also made for inspection as well as limiting the hours of work for • women workers to eleven per day.The act further provided that the minimum age of children for employment should be seven • years.Furthermore, that the maximum working hours for the children should not exceed seven hours • a day and that too in the dayshift.


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Movement After First Labor Organisation

In 1890, the first labor organisation designated as Bombay Mill Hands Association was • established.Subsequently, in 1905, the printers’ Union at Calcutta and in 1907, the Postal Union at Bombay • was established.The Madras Labor Union was organised thereafter in 1918.• In the same year, the Central Labor Board was established to federate the different unions in • the Bombay city and the All India Trade Union Congress was organised.It may be noted that the reliable statistics of trade union growth are not available for the period • before the formal implementation of the Indian Trade Unions Act, 1926, a landmark in the history of industrial relations in this country.The early thirties witnessed a highly weakened trade union movement.• However, the conditions prevailing five years before as well as during the Second World War • were conducive to the rapid growth of the trade unionism.Between 1939-40 and 1944-45 the number of registered trade unions increased from 66.6 to • 86.5 (i.e., by 29.7 percent).There was a large scale expansion of the trade union movement after the Second World War • especially after the independence.

As Subramanian observes, there existed fourfold reasons for this rapid growth. These were • as follows:

The cumulative impact of the acute economic distress stemming from war conditions and �the removal of the wartime restrictions on strikes.The development of three more central labor organisations and the competition among �them.The labor policy of the Government based on adjudication rather than collective �bargaining.The growth of the spirit of trade unionism among the workers. Accordingly, during the �period 1947-1960 while, industrial employment rose by 2.8 times.

Growth in the industrial sector

The total claimed union membership also went up by 2.3 times.• In 1960, 45 percent of the total industrial workforce was claimed to be unionised.• Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total • workforce.Explicitly, during post • independence period, the activities of Personnel Department in different public and private sectors have multiplied.According to the provisions of section 49 of the Factories Act, 1948, it became obligatory for • the employers to employ a Welfare Officer in a factory employing 500 or more workers.Likewise, section 58 of the M• ines Act, 1952, empowers the Government to specify employment of welfare officer/officers.It does not mean that the functions of Personnel Department are entirely limited to welfare • activities.

Table 2.1 Human relation movement in India

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2.7 Scope of Human Resource Management in IndiaThe scope of HRM is very wide: Personnel aspect:This is concerned with following term:

Manpower planning• Recruitment• Selection• Placement• Transfer• Promotion• Training and development• Layoff and retrenchment• Remuneration• Incentives• Productivity •

Welfare aspectIt deals with working conditions and amenities such as:

Canteens• Rest and lunch rooms• Housing• Transport• Medical assistance• Education• Health and safety• Recreation facilities•

Industrial relations aspectThis covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary, procedures, settlement of disputes, etc.


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SummaryHRM in India has been impacted both by its own history as well as multinational companies that came and • establish their operations in the country.The country’s culture has played a critical role in building value for the country globally.• Kautilya Author of Artha Shastra: This treatise describes the logical procedures and principles with respect to • labor organisation. Such as shreni or guild system and cooperative sector.Trades based on caste: In this people who belong to the special caste and tribe follows the profession from • generationThe caste system and the way it was structured to differentiate between different categories of the jobs remains • a basic frame work for the way work is distributed at the workplace.The coming of the British to India and the technique of their administration brought immense insights into the • country on how to mange labor work.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing House.Sharma, A., 2006. • Historical Development of HRM in India Final, [Online] Available at: <http://www.slideshare.net/rajeevgupta/historial-development-of-hrm-in-india-final> [Accessed 28 September 2010].Ten Hurdles Faced by the HR in India • [Online] Available at:-<http://www.chillibreeze.com/articles_various/hurdles-faced-by-hr-1211.asp> [Accessed 17 September 2012].Discuss the evolution of Human resource management by drawing References from the Hawthorne Studies• .[pdf] Available at: <http://www.respawngamingcafe.com/mba/Human%20Resource%20Management.pdf> [Accessed 28 September 2010]2010. • Human Resource Management-I Video Lecture Course, Human Resource Planning - I, [Video Online] Available at: < http://learnerstv.com/video/Free-video-Lecture-10027-Management.htm> [Accessed 17 September 2012].2010. • Human Resource Management-I Video Lecture Course, Human Resource Planning - II, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10028-Management.htm> [Accessed 17 September 2012].

Recommended ReadingBeardwell, L. & Holden, L., • Human Resource Management, Jacrnillan, Delhi.Frnch, V., • The Personnel Management Process, Houghton Co., Boston.Chhabra, T. N., • Human Resource Management, Dhanpat Rai & Co., Delhi.

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Self AssessmentKautilya provide a systematic treatment of management of human resources as early as 4th1. century B.C. In his treatise titled_____________.

biblea. artha-shastra b. ayurdevac. vedasd.

From the 14th2. century B.C. to the later half of the 10th century A.D., the relationship between employer and employees were marked ______________.

by justice and equality a. by lawb. by punishmentc. by harassmentd.

In Varnashram or caste system ,those devoting themselves in manual work were called as____________.3. Brahmina. Goldsmiths b. Barberc. Shudrasd.

During early British rule, there prevailed a _______________ policy toward the business.4. Laissez-Fairea. Non-judgmental b. Unfairc. Welfared.

The Madras Labor Union was organised in_______________.5. 1918a. 1981b. 1891c. 1819d.

The professional those who transferred their skills to next generation are6. ____________________.Weavers, potters, blacksmithsa. Contractor and managersb. Politician and doctorsc. Extremist and union leaders.d.

Between 1939-40 and 1944-45 the number of registered trade unions increased7. _____________.From 66.6 to 86.5. a. From 89.9 to 86.5 b. From 66.6 to 70.5 c. From 50.6 to 76.3d.


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Availability of the____________of different caliber of the knowledge and skill allows the country to undertake 8. different nature of the work.

plenty of money a. educated massb. ample of landc. effective organisation structured.

Hard-work, long working hours, purveyances and the need to earn money impact the ____________.9. HRM policiesa. HRM discipline b. HRM Regulation c. HRM Rulesd.

____________ 10. covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Industrial Relation Characteristica. Industrial Relation Aspectsb. Industrial Relation Programs c. Industrial Relation Plansd.

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Chapter III

Human Resource Planning

Aim


explain human resource planning•

enlist the objectives and elements of human resource planning•

describe the systematic process of recruitment, selection and induction•

Objectives


highlight the need and importance of human resource planning•

explain the activities in human resource planning•

enlist the applications of human resource planning•

Learning outcome


understand the concept of human resource management•

recognise the role of human resource planning in an organisation•

identify human resource planning in the organisation•


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3.1 DefinitionHuman Resource Planning is the process by which an organisation ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieving its overall objectives.

Definition According to Geisler, Manpower planning is the process which includes forecasting, developing and controlling by which a firm ensures that it has:

The right number of people• The right kind of people• At the right places• At the right time, doing work for which they are economically most useful•

3.1.1 Human Resource PlanningAccording to the Gordon McBeath, Human Resource Planning is concerned with two things:

Planning of Manpower requirements• Planning of Manpower supplied•

3.2 Benefits of HRPHRP can benefit at both national and company/ unit levels:

At the national level it will be concerned with factors such as population, economic development, provision of • the facilities for educational and geographical mobility and it will be the government responsibilityHRP studies can even be undertaken at the trade association’s level for a particular industry•

3.3 Uses of HRPFollowing are the uses of HRP:

Improve the utilisation of the Human resources• Match human resource related activities and future organisation objectives efficiently• Coordination between various HR programs such an employment equity plan and hiring needs•

3.4 Activities Involve in HRPAccording to Wickstrom, HRP consists of the following series of activities:

Forecasting future manpower requirements• Make a list of manpower resources• Recruit the correct candidate• Anticipating man power problem• Planning necessary programs for required section like•

Candidate selection �Training and development of the candidate �Utilisation of the manpower as per the requirement �Transfer of the employees from one workplace to another �Promotion of the employees according to their experience, their qualification etc. �Time to time motivation of an employee �Whereas, compensation has to be given to the employees wherever any mishaps take place �

The above points will ensure that, future manpower requirement are properly met•

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3.5 Need for HRPTo meet with the changing needs, manpower planning is must. Every organisation has to plan for human resource due to following reasons:

The shortage of certain categories of employees and/ or variety of skills.• The rapid changes in the technology, marketing, management, etc., resulting in to the need for new skills and • new categories of the employees.Changes made in the organisation design and structure affecting manpower demand.• The demographic changes like the changing profile of the workforce in terms of age, sex, education etc.• The government policies in respect to reservation, child labor, working conditions etc.• The labor laws affecting the demand for and supply of labor.• Pressure from trade union, politicians, sons of the soils etc.• Introduction of computer and robots etc.• The involvement of lead time in managing the job with most suitable candidate.•

3.6 Process of HRPThe term Human Resource involves human capital that operates an organisation:

The human resource planning process is defined as, • ‘a course of action that the human capital takes up for a methodical achievement of predetermined goals’.The term includes, its management, which primarily involves issues related to the workforce• The Human Resource Planning process, demands the HR manager to first understand the business • requirement.When the manager comprehends the nature and scope of the business, (s)he will be able to employ those who • will deliver the required performance.When it comes to engaging the manpower, the manager should have a keen eye for spotting talent.• It ensures that the workforce is competent enough to the meet the assigned targets.• Additionally, the existing ‘talent pool’ in the workplace should be taken into consideration, so that skilled people • can be employed.The work of the HR manager is to assess the currently employed workforce and their shortcomings.• Identifying these shortcomings goes a long way in choosing an efficient workforce.• While recruiting the new employees, the HR manager must calculate the expected workload.•


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For better understanding refer the block diagram given below:Block diagram:

Long range objectives and plans

Overall requirements

for human resources

Inventory of human

resources

Short term, Goals, Plans, programs and

budget

Workforce requirement

by occupational categories, job, skills

demographic characteristics

Inventory by occupational categories, job skills,

demographic characteristics

Needed Replacements and Additions

Plans for developing, upgrading,

transforming in recruiting and selecting

needed people.

Net new Human

Resources requirements

Action programs for

recruiting and selecting

needed personnel

Procedures for evaluating effectiveness

of human resource planning

Fig. 3.1 Block diagram of HRP

3.6.1 Benefits of HRPFollowing are the benefits of HRP

At the national Level, it is generally done by the government and cover items like:• Population projections �Program of the economic development �Educational facilities �Occupational distribution and growth �Industrial and geographical mobility of personnel. �

At the sector level, it may be done by the government central or state. It may cover manpower requirement of • the

Agricultural �Industrial �Service sector. �

At the industrial sector, it may cover manpower forecast for specific industries like:• Engineering �Heavy industries �Consumer goods industries �Public utility industries. �

At the level of the individual unit, it may relate to its manpower need for various departments and for various • types of personnel.

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3.7 Human Resource Planning SystemHRP fulfils individual, organisational and national goals•

According to Sikula, “ � The ultimate mission or purpose is to relate future human resources to future enterprise needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future returnoninvestmentinthehumanresources.Ineffect,themainpurposeisoneofmatchingorfittingemployeeabilities to enterprise requirements, with an emphasis on future instead of present arrangements”

The objectives may be laid down for short- term estimating the future organisational structure or forecasting • the manpower requirements.Auditing Human Resources is next step after manpower estimation. This is done by • skills inventorySkill inventory • contain data about each employee’s skills, abilities, work preferences and other item of information which indicate his overall value to the companyHRP involves job analysis process as well. This step involves job description and job specification• Developing a • Human Resource plan is also most important. As in this phase, development and implementation of the planning are carried out.

3.8 Responsibility of Human Resource Planning Department

Applicant

The Individual

Framework for Procurement

Recruitment Programe Job Analysis

Job Specification

The Organisation

Induction

Job Description

The Individual SalesForecast

The Individual SalesForecast

Employee Requisition

Screening Devices

Application Blank Referance Check Interviews

Tests Physical Examination

Medical check

Fig. 3.2 Flowchart of HRP


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According to Geisler, responsibilities involved in the Human resource planning are as follows:To assist, council and pressurise the operating management to plan and establish objectives• To collect and summarise data in total organisation term• To ensure consistency with long-range objectives and other element of total business• To monitor and measure performance against the plan• To inform about the current scenario to top management• To provide the research necessary for effective manpower and organisational planning.•

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SummaryHuman Resource Planning is the process by which an organisation ensures that it has the right number and kind • of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives.The human resource planning process is defined as, • ‘a course of action that the human capital takes up for a methodical achievement of predetermined goals’.HRP fulfils individual, organisational and national goals.• Skill inventory • contain data about each employee’s skills, abilities, work preferences and other item of information which indicate his overall value to the company.Human Resource Planning involved two things, planning of manpower requirements and planning of manpower • supplied.HRP is deemed necessary for all organisation.• There is various responsibility of HRP department like assisting, counsel, pressurise the organisation.•

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Bandt, A. & Haines, S• . G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic Management.HUMAN RESOURCE PLANNING Reference Tools • [pdf] Available at: <http://www.exec.gov.nl.ca/exec/pss/publications/HR_Resource_Binder.pdf> [Accessed 18 September 2012].The Role of Human Resource Development and Management • [pdf] Available at: <http://www2.aau.org/wghe/gender/toolkit/Toolkit-module3.pdf> [Accessed 18 September 2012].2010. • Human Resource Management-I Video Lecture Course, Recruitment and Selection, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10029-Management.htm> [Accessed 21 September 2012].2010. • Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 21 September 2012].

Recommended ReadingEvans, P. & Pucik, E., • The Global Challenge- Framework for International Human Resource Management, Tata McGraw-Hill Irwin.De Cenzo D.A. & Robin, S. P, 1997. • Personnel/Human Resource Management, McGraw Hill.Ashwatappa, K., • Human Resource Management, 5th ed., TMH.


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Self AssessmentHuman Resource Planning is the process by which an organisation ensures that it has the right number and kind 1. of people, at the right places, at the right time, capable of____________________completing those tasks that will help the organisation achieve its overall objectives.

properly and preciselya. effectively and efficientlyb. happily and efficientlyc. willingly and effectivelyd.

Match the following.2.

Column I Column II

1. It is generally done by the government and cover item like population projections, programme of economic development, educational facilities, occupational distribution, and growth, industrial and geographical mobility of personnel.

a. At the industry level

2. It may be done by the government-central or state – and may cover manpower needs of agricultural, industrial and geographical mobility of personnel

b. At the sector level

3. It may cover manpower forecast for specific industries, such as engineering, heavy industrial, consumer goods industries, public utility industries, etc.

c. At the level of the individual unit

4. It may relate to its manpower needs for various departments and for various types of personnel.

d. At the national level

1-d, 2-b, 3-a, 4-c a. 1-a, 2-b, 3-d, 4-cb. 1-d, 2-c, 3-a, 4-bc. 1-c, 2-b, 3-a, 4-dd.

Which of the following statements is true?3. HRP fulfils individual, organisational and national goals.a. HRP fulfils only individual goals. b. HRP fulfils organisational goals.c. HRP fulfils national goals.d.

Whose postulation is “The ultimate mission or purpose is to relate future human resources to future enterprise 4. needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future return on investment in the human resources. In effect, the main purpose is one of matching or fitting employee abilities to enterprise requirements, with an emphasis on future instead of present arrangements”?

Gandhia. Sikulab. Rattan TATAc. Geislerd.

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__________ contain data about each employee’s skills, abilities, work preferences and other item of information 5. which indicate his overall value to the company.

Skill inventory a. Skill researchb. Skill recoveryc. Skillful guidanced.

What does job analysis process involves?6. Job description and job specificationa. Job proof and job skillsb. Job documentation and job assistance c. Job profile and job descriptiond.

___________ provide the basic premises on which the manpower planning is built.7. Forecasting a. Developing b. Planningc. Summarisingd.

To8. ____________the operating management to plan and establish objectives.assist, counsel and pressurisesa. forecasting , developing and preparing b. guiding, assisting and punishingc. training, interacting and reacting.d.

To 9. _____________against the plan and keep the top management informed about it.provide an inadequate data. a. provide correct datab. provide a improper datac. provide the research necessary data.d.

To 10. _______________in total organisational terms and to the total business-plan.monitor and measure performance a. measure and manipulate workb. collect and summarise c. motivate and guide.d.


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Chapter IV

Recruitment and Selection

Aim


explain the concept of recruitment and selection•

elucidate the complexity of recruitment and selection•

explain the process of recruitment and selection•

Objectives


explain the general practices that organisations use to recruit and select employees•

determine which recruitment and selection practices are most effective•

describe how the recruitment and selection practices affect organisational outcomes•

Learning outcome


understand the critical role of recruitment•

identify appropriate recruitment sources•

understand the selection tools and methods•

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4.1 IntroductionBetter Recruitment and Selection strategies result in improved organisational outcomes. The more effectively organisations recruit and select candidates, the more likely they will get a satisfying job done from them with sustain quality.

4.2 Concept of Recruitment and SelectionRecruitment is the process of identifying and attracting potential candidates from within and outside an • organisation. The candidate must be capable of doing allotted work in present as well as in future.Once candidates are identified, an organisation can begin the selection process.• Before starting the recruitment activity, organisation must consider whether recruitment should be done locally, • nationally or internationally.The Recruitment process includes the following steps:•

Collecting �Measuring and �Evaluating information about candidates’ qualifications for specified positions. �

Organisations use these processes to increase the likelihood of hiring individuals who possess the right skills • and abilities to be successful at their jobs

There are certain steps which have to be carried out in this entire process. Those are as follows:• Manpower Planning �Job analysis �Identification of vacancies �Preparation of budget �Preparation and publication of information �Reception of the application from �Recruit �Select �Induct �

We will discuss the above mention point in this chapter in detail.•

4.2.1 Manpower PlanningIt defines what resources the organisation needs to meet its objective. It must specify the quality of manpower needed at a particular date in future.

4.2.2 Job Analysis MethodThe Job analysis process consists of following:

Job descriptionIt is a statement of the component tasks, duties, objectives and standard of performances expected from the employee.

Job specificationIt is a specification of the skills, knowledge and qualities required to perform the job.

Personnel specificationA reworking of the job specification in terms of the kind of person needed to perform the job.


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4.2.3 Identification of Vacancies

The requirement of the manpower plan• By job requisition from a department, branch or office which has a vacancy.•

4.2.4 Preparation of Budget

The company must decide the amount to be spent on recruitment process• The method of recruitment would depend on the time available and budget allocation.•

4.2.5 Preparation and Publication of InformationTo bring in correct candidates to the organisation, we need to do proper publicity. Hence, it is carried out in following way:

AdvertisementIt is an effective way of seeking recruits.• It must be clearly worded, mention all the requirements and must appear in the right newspapers that are likely • to be read by potential applicants.Job description and job specification must provide all the information required to draft the advertisement for • respective position.

InternetIt has become popular method of recruiting people.• Many organisations have their own web pages where perspective applicants can obtain data about the • company.Moreover, the company’s other information that gives the applicant idea of scope of the company in the market. • This are like

Product and service �Employment opportunities and �Application procedures. �

4.2.6 Reception of Application Form

Once the application forms are received, they must be screened for eligibility criterion. Those forms, which do • not meet the minimum required standards, must be rejected. The minimum criterion are as follows like:

Age �Qualification �Experience �Legal issues �Salary expectation �Lag of certificate �

A formal interview must be conducted for the remaining students by properly communicating to them the • following things:

The date �The day �Time of the interview and �The place of the interview. �

These candidates should pass through the selection procedure before their final placement.•

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4.3 Other Methods of RecruitmentEmployment agencies and head hunters:

Recruitment through outside agencies is generally undertaken as follows:• When the company does not have the time or human resources to spend on the process �When the company wishes to maintain confidentiality �When the company feels that they would be able to attract a wider range of people. �

Employment agencies and head hunting firms are retained by the organisation to identify the suitable candidates • for their company.Employment agencies normally recruit at lower and middle management levels whereas headhunter concentrates • their effort on higher-level managerial position.The recruitment agencies are paid a certain percentage of the incumbent’s salary as recruitment fees.• There are some other sources as well that can fulfill the requirement. Those are as follows:•

4.3.1 Campus Recruitment

Organisations visit campus to recruit for entry-level position• The procedure is to give a brief talk about company to the interested candidates• Then held group discussion• Personnel interview.•

4.3.2 Walk-In Interview

On urgent basis, the recruitment may be conducted by walk-in interviews• The date and time is specified in the local newspaper• Potential candidates are asked to report for the interview along with their documents.•

4.3.3 Employee’s Referrals

If the company feels that they can obtain candidate by word of mouth, they place an advertisement on the • company’s notice broad stating their requirementFriends and relatives of present employees are also a good source from which employees may be drawn• When the labor market is very tight, large employers frequently offer their employees bonus or prize for any•

referrals that are hired and stay with the company for specific length of timeSome companies keep the record of the former employees whose record was good• Whenever there are new job openings for which they are qualified, then these former employees are informed• This process has a drawback that is known as nepotism which means, when a person of one’s community or • caste are employed, who may or may not be fit for the jobBecause of this the eligible candidate may lose the opportunity and undeserving candidate gets a job.•

4.3.4 Labor Unions

Firms with closed or union shops must look to the union in their recruitment efforts• Disadvantage of a monopolistically controlled labor source are offset, at least particularly, by saving in recruitment • costsWith one-fifth of the labor force organised into union, organised labor constitute an important source of • personnel.


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4.3.5 Indoctrination Seminars

The college’s professors are arranged to discuss the problem of companies and employers• Professors are invited to take part in these seminars• Visit to plants and banquets are arranges so that the participant professors may be favorably impressed• They may later speak well of a company and help it in getting required personnel.•

4.3.6 Unconsolidated Application

For position in which large number of candidates are not available from other sources• The companies may gain keeping files of applications received from candidate who make direct enquiries about • possible vacancies on their own or may send unconsolidated applicationsThe information may be index and filed for future use when there are openings in these jobs.•

4.3.7 Nepotism

The Hiring of relatives will be an inevitable component of recruitment programs in family-owned firms• Such a policy does not necessarily coincide with hiring on the basis of merit• But interest and loyalty to the enterprise are offsetting advantage.•

4.3.8 Leasing

To adjust to short-term fluctuation in personnel needs• The possibility of leasing personnel by the hour or day should be considered• This practice has been particularly well-developed in the office administration.• The firm not only obtains well-trained and selected personnel but avoids any obligation in pensions, insurance, • and other fringe benefits.

4.3.9 Voluntary Organisations

Voluntary organisation such as private clubs, social organisations might also provide employees• The following resources also can be considered that can give helping hand in recruiting the employees for the • organisation:

Handicaps �Widowed or married women �Old persons �Retried hands �

4.3.10 Computer Data BankWhen a company desires a particular type of employee job specifications and requirement are fed into a computerwhere they are matched against the resume data stored therein.

The output is a set of resume for individual who meet the requirement. This method is very useful for identifyingcandidates for hard-to-fill positions, which call for an unusual combination of skills.

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4.4 Recruitment and Selection Policy4.4.1 Selection Policy

In order to initiate the procedure for selection, we must satisfy the three preliminary requirements:• There must be the authority to select, which comes from the employment requisition, as developed through �analysis of the work load and work forceWe must have a standard of employees with which we can compare prospective employees �This is done by job specification as developed through job analysis �A planned recruitment programme provides us with these applicants. �

The selection procedure is essentially a series of methods of securing relevant information about the • applicant

The information obtain can be compared with the job specification and standard of personnel if the applicant �qualifies, he or she is advanced to next step. Thus, the job specification and job applicant are interrelated at each step in the selection procedure.

4.4.2 Recruitment Policy

After determining the human resource requirement, the recruitment and selection process can begin very often, • recruitment is misunderstood as filling in of vacanciesThe real purpose of recruitment is not to fill up a vacancy but to add a person to the staff whom the management • expects to become important in the future scheme of the thingsDale Yoder and others point out: “• Recruitment is a process to discover the sources of manpower to meet the requirementsofthestaffingscheduleandtoemployeffectivemeasuresforattractingmanpowerinadequatenumbertofacilitieseffectiveselectionofanefficientworkingforce”.In term of the Stahl, "• Recruitment is a corner stone of the whole personnel structure".Sources for recruiting should be periodically checked• For this purpose, the criteria may be the cost per applicant, the applicant/ hiring ratio, tenure, performance • appraisals etc.Recruiting should take into consideration ethical practices, such as use of truth in hiring i.e. telling an applicant • all about the firm and its position both good and bad so that the candidate can decide whether or not to join the firm.A successful and effective, recruitment program necessitates a well-defined recruitment policy, a proper • organisational structure, and procedures for locating sources of manpower, suitable methods, techniques for utilising these and a constant assessment to achieve improvement.

4.5 Recruitment Practice In IndiaThe different sources for recruitment in India have been classified as below:

Within the organisation• Badli or temporary workers• Employment agencies• Causal callers• Applicants introduced by friends and relatives in the organisation• Advertisement and labor contractors• All public sector enterprises are required to consider candidates sponsored by the employment exchanges• In most cases, confine the selection to these candidates• However, the private sector is not under any such formal obligation•


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Under the apprentices Act 1961, young craftsmen having received pre-employment training in industrial training • Institutes have to be employed by “specialised” industries during training period as a percentage of the total number of regular employeesReservation of 25% of vacancies for scheduled castes and scheduled tribes candidates and preferential treatment • of displaced persons is a part of statutory requirement of government and public sector employment in IndiaThe requirement of supervisory personnel in all organised industries is generally by promotion from within the • organisationSome industries first recruit a number of young person’s as management trainees and after 2 or 3 years absorb • them completely. Executives too are mostly promoted from within.

4.6 Selection TechniqueEmployee Selection is the process of putting the right men on the right job• It is a procedure of matching organisational requirements with the skills and qualifications of people• Effective selection can be done only when there is effective matching• By selecting best candidate for the required job, the organisation will get quality performance of employees• Moreover, organisation will face less of absenteeism and employee turnover problems• By selecting right candidate for the required job, organisation will also save time and money• Proper screening of candidates takes place during selection procedure• All the potential candidates who apply for the given job are tested. But selection must be differentiated from • recruitment, though these are two phases of employment processRecruitment is considered to be a positive process as it motivates more of candidates to apply for the job• It creates a pool of applicants. It is just sourcing of data, while selection is a negative process as inappropriate • candidates are rejected here. Recruitment precedes selection in staffing process.• Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.•

4.7 Evaluation and Selection CriteriaThe criteria usually can be best summarised in the following categories:

Education• Experience• Physical Characteristics• Personal Characteristics•

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4.8 The Selection ProcessThe Employee selection process takes place in following order:

4.8.1 Preliminary Interviews

It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the • organisationThe skills, academic and family background, competencies and interests of the candidate are examined during • preliminary interviewPreliminary interviews are less formalised and planned than the final interviews• The candidates are given a brief up about the company and the job profile and it is also examined how much • the candidate knows about the companyPreliminary interviews are also called screening interviews.•

4.8.2 Application Blanks

The candidates who clear the preliminary interview are required to fill application blank• It contains data record of the candidates such as details about age, qualifications, reason for leaving previous • job, experience etc.A specimen of a Short Application Form for Unskilled is as follows: • Manual EmployeesENISION GRAPHICS PVT. LTDBANGLORE-XXX XXX

Date: Name: Address:Date of Birth:Single/ Married/Widowed/Divorced: Position Applied for:Detail of previous jobs, including present one, if still employed:

Name and Address of

the Employer

Type of WorkDone To From Reason for

Leaving

123

Table 4.1 Application blanks

Physical Disabilities:Have you ever worked for this concern before? : Yes/ NoEngaged/ Not Engaged………………. Department……………………Due to start……………………………….. …………………………………interviewer……………………………..


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4.8.3 Check of References

The use of references is common in most selection procedures• It involves minimum of effort and time/money• The objective is to obtain evaluation of prior employers and professional colleagues, who have known the • candidate in a professional capacityChecks on references are made by mail or telephone, and occasionally in person, and by using a reference • form

4.8.4 Written Tests

Various written tests are conducted during selection procedure like• Aptitude test �Intelligence test �Reasoning test �Personality test �

These tests are used to objectively assess the potential candidate.• They should not be biased.•

4.8.5 Employment Interviews

It is a one to one interaction between the interviewer and the potential candidate• It is used to find whether the candidate is best suited for the required job or not. But such interviews consume•

time and money bothMoreover the competencies of the candidate cannot be judged• Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should • be there in room. There should be an honest communication between candidate and interviewer.

4.8.6 Medical Examination

Medical tests are conducted to ensure physical fitness of the potential employee• It will decrease chances of employee absenteeism.•

4.8.7 Appointment Letter

A reference check is made about the candidate selected and• Then finally he is appointed by giving a formal appointment letter.•

4.8.8 Informal Interview

This is the type of interview that is conducted in an informal setting• The interview can be held at the residence of the managing director for the post of a legal consultant• Similarly, many senior level job assignments are finalised during dinner at some hotel or restaurant.•

4.8.9 Formal Interview

This is the interview that is conducted most commonly for recruitment of personnel• In such interviews the candidate is called for an interview at a particular location and time• The candidate is required to answer questions asked, based on the outcome of which he is rated for selection.•

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4.8.10 Patterned Interview

To maintain a uniform approach there are few interviews where a set pattern of questions are asked• In such patterned interview the choice of person conducting the interview is restricted and the selection criteria • are also limited within a set frame.

4.8.11 Depth Interview

In such an interview, questions are based upon a specific area of the interviewee’s interest and the person has• to answer in detail

The academic competence and knowledge is tested thoroughly in such type of interviews.•

4.8.12 Stress Interview

For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of • individual competence based on stress endurance along with knowledge and intelligence.Therefore a candidate is required to appear for the stress interview.• In such interviews a person is required to respond to a tress situation and the assessment is done on the basis • of the response.

4.8.13 Group Interview

When we are required to perform a task in a group the selection is done in a group interview and the candidate • along with a group is asked to solve a particular problem.The performance and behavior is, however, assessed and rated individually.•

4.8.14 Panel Interview

For a senior level position selection, a panel of experts selects the candidate• Personality and behavior traits are very important for performing well in such interviews• Interviews, at times, become a hurdle between success and failure for persons just out of college• One has to present one’s competence for a particular job within a short period• The candidate is assessed for his/her•

Behavior �Mannerism �Attitude �IQ �Stress enduring �Capability �General awareness �Knowledge of the subject’s studied and mental frame of mind to take up the position for which (s) he has �applied.

For a young student it is important that (s)he prepares well for crossing this hurdle• (s)He must be ready for the competitive written examinations as well as for the face to face interview.•


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4.9 Approval by ManagerIn executing the recruitment unit screening functions, the emphasis tends to be more on formal qualifications • and general suitabilityWhen the manager takes over, the emphasis tends to switch toward more specifically job oriented worker • characteristics such as training and relevant past experience.

4.10 Medical ExaminationThe medical examination is an employment step found in most businesses• It can vary from a very comprehensive examination and matching of an applicant’s physical capabilities to job • requirements to a simple check of general physical appearance and well-beingIn the selection procedure the physical examination has at least three basic objectives:•

First, it serves to ascertain the applicant’s physical capabilities �The second objective of the examination is to protect the company against unwarranted claims under �workers’compensation laws, or against lawsuits for damagesAnd the final objective is to prevent communicable diseases from entering the organisation. �

4.11 InductionInduction is concerned with introducing or orienting a new employee to the organisation• Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.• Common objectives of an Induction program can be listed as covering:•

Overview of the organisation, its history, its hero’s and important stories in the life of the firm so far like �mergers, acquisitions, JV’s, expansion in new countries etc.Organisation Vision / Mission and Objectives statement, its structure, hierarchy of the top and the senior �management, structure of the teams/divisions, focus on the division the employee/s is/are joiningOverview of the HR policies and processes and introduction to the Facilities team, IT team and other relevant �teams per the location of joiningHandover to the manager and induction at a team level on specificities related to the job and its �responsibilitiesOrganisations also build processes by which the new employee provides feedback on the on-boarding �experience and use this information to improve the Induction processIn as much as various firms report that over half of their voluntary resignations occur within the first 6 �months, proper orientation can do much to reduce this problem and its accompanying costs.

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Summary Recruitment is the process of searching for prospective employees and stimulating them to apply for the job • in the organisation.Recruitment or manpower selection process is the first step in the employment of labor.• Sources for recruiting should be periodically evaluated.• Recruitment is the process of identifying and attracting potential candidates from within and outside an • organisation. The candidate must be capable of doing allotted work in present as well as in future.Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.• A successful and effective recruitment program necessitates a well-defined recruitment policy, a proper • organisational structure, and procedure for locating sources of manpower resources.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing

House. Bandt, A. & Haines, S• . G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic Management.Gusdorf, L. M.,• Recruitment and Selection: Hiring the Right Person [pdf] Available at: <http://www.shrm.org/education/hreducation/documents/09-0152%20gusdorf_instructor_notes.pdf> [Accessed 21 September 2012].French, R. & Rumbles, S.,• Recruitment and Selection [pdf] Available at: <http://www.cipd.co.uk/NR/rdonlyres/01F95685-76C9-4C96-B291-3D5CD4DE1BE5/0/9781843982579_sc.pdf> [Accessed 21 September 2012].2010. • Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10031-Management.htm> [Accessed 21 September 2012].2010. • Human Resource Management-I Video Lecture Course, Training and Development, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10032-Management.htm> [Accessed 21 September 2012].

Recommended ReadingParweek, U. & Rao T. V., 1999. • Designing and Managing Human Resource Systems, Anmol Publishers.Dessler, G., • Human Resource Management, 10th ed., Person Publications. Patnayak, B., 2005. • Human Resource Management, PHI 3IE.


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Self AssessmentRecruitment is the process of ____________________potential candidates from within and outside an 1. organisation.

spotting and grabbing a. convincing and testingb. identifying and attractingc. motivating and spoilingd.

____________ 2. a specification of the skills, knowledge and qualities required to perform the job.Job specificationa. Job descriptionb. Job development c. Job analysisd.

The candidates should pass through the selection procedure before their3. .final placementa. final resultb. final examc. final revisiond.

________ 4. traits are very important for performing well in interviews.Manners and communication a. Education and attitudeb. Personality and behaviorc. Experience and qualificationd.

For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of 5. individual competence based on along with knowledge and intelligence.

stress endurance a. stress givingb. stress creatingc. stress increasingd.

Which of the following statements is true?6. Recruitment is considered to be a negative process. a. Recruitment is not a negative processb. Recruitment is positive processc. Recruitment is most important processd.

Which of the following statements is true?7. Selection is not a negative processa. Selection is a negative processb. Selection is positive processc. Selection is effective processd.

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___________ creates a pool of applicants.8. Recruitment a. Selectionb. Interviewingc. Inductingd.

Once a determination of human resource requirement, the 9. process can begin.recruitment and selectiona. advertising and interviewing b. planning and managingc. advancing and balancingd.

Which of the following statements is true?10. Recruitment is misunderstood as filling in of vacancies.a. Recruitment is understood as filling in of vacancies.b. Recruitment is filling of vacancy.c. Recruitment is not just filling in vacancy.d.


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Chapter V

Training and Development

Aim


explain the importance of training•

explain the techniques of training and development•

enlist the types, methods and procedures of training and development•

Objectives


explain how to identify the need of training•

elucidate various areas of training, which has to be identified by the trainer•

enlist various evaluation techniques of the training•

Learning outcome


comprehend the complexity of training process•

identify various possible areas of training•

understand the type and technique of training and development•

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5.1 IntroductionTraining and development is an important component of every organisation’s survival strategy. Technology is changing very fast and so is the information explosion terrific. Individual as well as organisations can survive and progress only if they update their knowledge, sharpen their skills and keep themselves abreast of the latest development and changes. The one who refuses to change will be left behind and will be lost. Hence, training and development is very important.

The training and development process is carried out in any organisation so that employee will be enable:To face the tough competition in every field and survive gracefully•

To accept and adapt to the changes in the field of science and technology•

To upgrade and sharpen one’s skills that are needed to do the job successfully•

To learn the correct way of doing things or doing things the right way•

For an improved job performance and consequently better job satisfaction.•

5.2 Concept of TrainingTraining is a process of learning sequence of programmed behavior.• It is application of knowledge.• It gives people an awareness of the rule and procedures to guide their behavior.• It is attempt to improve their performance on the current job and prepares them for an intended job.• Training of physically, socially, intellectually and mentally are very essential in facilitating not only the level • of productivity but also the development of personnel in any organisation.Knowledge is the ability, the skill, the understanding, the information, which every individual requires acquiring • in order to be able to function effectively and perform efficiently.

5.3 Objective of TrainingThe objective of the training of employees:5.3.1 To Increase Productivity

Instructors can help employees increase their level of performance on their present assignment• Increased human performance often leads to increased operational productivity and increased company • profit.

5.3.2 To Improve Quality

Better informed worker are less likely to make operational mistakes• Quality increase may be in relationship to a company product or service or in reference to the intangible • organisational employment atmosphere

5.3.3 To Help a Company Fulfill its Future Personnel Needs

Organisations that have a good internal program for development will have to make less drastic manpower • changes and adjustments in the event of sudden personnel alterationsWhen the need arises organisational vacancies can be easily staffed from maintaining an adequate instructional • program for both in non-supervisory and managerial employees

5.3.4 To Improve Organisational Climate

Company designed development programs•


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5.3.5 Obsolescence Prevention

Training and development programs foster the initiative and creativity of employees and help to prevent • manpower obsolescence due to age, temperature, or motivation or the inability of a person to adapt him to technological changes.

5.3.6 Personal Growth

Employees on a personal basis gain individually from their exposure to educational expressions• Management development program seems to give participants a wider awareness, an enlarged skill and enlightens • realistic philosophy and make personal growth possible

5.4 Difference between Training and DevelopmentFollowing are the differences between training and development

Area Training Development

Content Technical Skills and Knowledge Managerial and behavioral skills and knowledge.

Purpose Specific job - related Conceptual and general knowledge

Duration Specific job - related Long-term

For whom Mostly technical and non-managerial personnel Mostly for managerial personnel

Table 5.1 Difference between training and development

5.5 Objective of TrainingThe chief aim of formal education for the manager is to increase his ability to learn from experience• The second aim is to increase his ability to help his subordinate’s learn from experience• According to Douglas McGregor, there are three different purpose of learning.•

5.5.1 Acquiring Intellectual Knowledge

An electrical engineer may need more knowledge than he now possesses about circuit design• A new employee may require knowledge about company policies• A foreman may require information about the new provisions in the labor agreement• The acquisition of knowledge is a fairly straight- forward process provided the individual want the new • knowledgeIt can be made available to him in several ways• However, if someone does not want knowledge, there is considerable difficulty getting one to learn it• In industry, attempt should be made to create a ‘felt need’ for new knowledge.•

5.5.2 Acquiring Manual SkillsThe acquisition of a manual skill required practice or experience accompanied by feedback pure trial and error learning can be speeded up by guidance but the individual cannot learn unless (s)he performs and receives clues which tell him/her about the success of his/her effort.

The necessary effort will be expanded only if there is a felt-need on the part of the learner.

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5.5.3 Acquiring Problem-solving Skills

Much of a manager’s work is solving problem• These include organising one’s own and subordinate‘s activities, planning and a wider range of other decision- • making activitiesThese are skills involved in diagnosing problem interpreting relevant data, assessing alternative solution and • getting feedback concerning the effectiveness of the solution.These skills can be improved and classroom education is one method utilised for this purpose• As with any skill, practice and feedback are essential for learning• The most widely used classroom method for improving the problem-solving skills is the case method• In the hands of a skillful teacher, it can be highly effective.•

5.6 Importance of TrainingFollowing is the importance of training

The importance of Human Resource Management to a large extend depends on Human Resource • DevelopmentTraining is the most important technical of human development• No organisation can get a candidate who exactly matches with the job and the organisational requirements• Hence, training is important to development to develop the employee and make him suitable to the job• Job and organisational requirement are not static• They are changed from time to time view of technology advancement and change in the awareness of the Total • Quality and Productivity Management (TQPM)The objectives of the TQPM can be achieved only through training as training develops human skills and • efficiencyTrained employees would be a valued asset to an organisation• Organisational efficiency, productivity, progress and development to a greater extend depend on training• Organisational objectives like viability, stability and growth can be achieved through training• Training is important as it constitutes significant part of management control.•

5.7 Benefits of TrainingFollowing are the benefits of training:

Leads to improved profitability and/or more positive attitudes toward profit orientation• Improves the job knowledge and skills at all levels of the organisation• Improves the morale of the workforce• Helps people identify with organisational goals• Helps create a better corporate image• Fosters authenticity, openness and trust• Improves the relationship between boss and subordinate• Aids in organisational development• Learn from the trainee• Helps prepare guidelines for work• Aids is understanding and carrying out organisational policies• Provide information for future needs in all areas of the organisation• Organisation gets more effective decision-making and problem solving•


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Aids in developing leadership skill, motivation, loyalty, better attitude and other aspects that successful worker • and mangers usually displayImprove the labor management relations• Helps employees adjust to change• Create an appropriate climate for the growth, communication.•

5.8 Training Need IdentificationTraining could be a useful aid in improving the transformation process take place in an organisation in term of • the processing of input to outputDiversification of the product lines, new technology and hence a new kind of job demands the individual’s • growth and development through induction, training or demands the necessitated by job rotation due to an organisation’s internal mobility policiesA survey conducted by A.D Sinha, listed in rank order the following method of identifying training needs:•

View of the line manager �Performance appraisal �Company view of training manger �View of training manager �Analysis of job difficulties. �

The model we shall examine here is the Thayer and McGhee model. It is based on the following three factor:• Organisation Analysis �Task Analysis �Man Analysis �

5.9 Total Organisational AnalysisTotal Organisation Analysis is a systematic effort to understand exactly where training effort needs to be • emphasised in an organisationIt involves a detail analysis of the organisation structure, objectives, human resource and future plans and • understanding of its culture, backgroundFirstly understand short-run and long-run goals• Long-term objective are the board direction in which the organisations would move over a long duration• These long-term objectives are the broad direction in which the organisations would move over a long • durationThese long-term objectives are then broken down into specific strategies• And short term goals of the unit/departments• In an organisation, cumulative of all these would ultimately lead to a long term goals• Short-term goals are constantly in need of adaptation to the changing environment, both external and internal.•

5.10 Organisation Analysis RequirementsFor an organisation analysis, there are three essential requirements:•

An adequate number of personnel available to ensure fulfillment of the business operation �That personnel performance is up to the required standard �That the working environment in their units/departments is conducive to fulfill tasks. �

In order to fulfill first two requirements, human resource department have to keep record of inventory• Moreover, they need to keep record regarding requirement employees and vacancy.• Various efficiency and productivity indexes, or ratio such a productivity ratios, cost per unit etc, can be worked • out to determine not only efficiency but also adequacy, in terms under- manning, of the workforce.

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5.11 Organisational DiagnosisOrganisational Diagnosis is an effective way of looking at an organisation to determine gaps between current • and desired performance and how it can achieve its goalsThe purpose of a diagnosis is to identify problems facing the organisation• To determine their causes so that management can plan solutions• An organisational diagnosis process is a powerful perception raising activity in its own right, its main usefulness • is in the action that it induces.The major steps of a diagnostic cycle include:•

Orientation �Goal setting �Data gathering �Analysis/ Interpretation �Feedback �Action Planning �Implementation �Monitoring/ Measure �Evaluation �

5.12 Task AnalysisBefore managers can train their employees, they must decide what the employees need to learn.• Careful analysis of a job is the foundation for training development and successful training.• Job analysis is the process of determining which tasks each employee needs to perform and the standards at • which he or she must perform them.The job analysis process produces three important tools that will help a manager train the employees:•

Task lists �Job breakdowns �Job performance standards �

A task list provides the tool with which to plan employee training.• A task list should be prepared for each category of employee to be trained (for example, secretaries, salespeople, • panel builders, prep cooks, and electrical technicians).It lists all of the tasks that must be performed by an employee in a given position.•

5.12.1 Task Lists

Managers should ask themselves the following questions when creating a task list:• What specific duties must an employee perform? �What units of work must be completed? �What materials must be handled? �What equipment must be operated? �What administrative chores must be completed? �What cleaning requirements is part of the job? �

There are many ways that a manager can gather data for creating a task list.• Some techniques include interviewing employees in each position �Observing employees as they work �Participating in the actual performance of the work �Reviewing standard operating procedures and previous written standards. �


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5.12.2 Job Breakdown

Each task on a task list needs its own job breakdown that tells how to perform the task• The job breakdown lists the task in steps, how the employee should perform the steps, and how well (s)he • should performThe exact format for a job breakdown can vary depending on the needs of the business and the preferences of • the manager doing the trainingJob breakdowns incorporate standard operating procedures and specify how job duties must be performed to • meet the business standardsThe amount of detail in a job breakdown will depend upon the complexity of tasks• Job breakdowns have many uses.• They include:•

Planning training �Creating lesson plans for training �Setting standards for evaluation �Creating outlines for operating procedures manuals �Preparing job descriptions and help wanted postings �

Some companies even adapt their job breakdown sheets into a performance appraisal form• The step of a job breakdown should be written in a clear, easy-to-understand manner• They should also be extremely detailed so that it is clear what the standard is and how to accomplish it• The exact amount of detail may vary. There are some tasks that allow for a great deal of creativity on the part • of the employee and the exact method of how to perform the task is not as important as the end resultOther tasks, especially those involving safety or sanitation, must be spelled out very carefully• Employees need to know to what degree they are expected to perform their jobs and what performance level is • considered in meeting standards.

5.12.3 Job Performance

Job Performance standards are statements that describe or clarify the levels of employee performance that are • acceptable to the businessThey may be expressed as minimum performance levels or as desired performance levels• They also must include measurements on what the performance level is• Examples of performance standards include:•

Smile pleasantly to every person entering the lobby �Answer telephones within three rings �Convert two of every five phone calls into a sale �

Performance standards should be established for every task on the task list• The business must have employees who can do their jobs at a level that meets basic quality and quantity • standardsThese same performance standards used for training can also be used on an ongoing basis to evaluate the • employee’s performance on the jobPerformance standards are tools to help improve employee performance throughout the employee’s career• Once these three tools have been created, the trainer is ready to assess how his or her employees measure up • to each of the standardsThe results of this assessment will reveal in which tasks employees need training• The tools can also act as a blueprint to develop the necessary training.•

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5.13 Performance AnalysisDistinguishing between “Can’t Do” and “Won’t Do” problem is at the heart of performance analysis• It verifies that there is a performance deficiency and determining that it is not due to lack of willingness but • the deficiency is genuinely due to lack of required skillThat should be corrected through training or through some other means like changing the job more suited to • employee’s exiting skills.

5.14 Training Needs IdentificationThe common method used to identify the training need is as follows:

Observation and analysis of the job performance• Consideration of current and projected changes• Management and staff discussions recommendations• Competency surveys• Reports and skill inventories• Interviewing job holder and supervisor.•

5.15 Different Kinds of Training NeedsIndividual and group needs• Short term and long term needs• Organisational formal and informal needs• Needs that must be met by internal resources and external resources cannot meet those• Needs for solo work by an individual and those which can be met only in the company of others.•

5.16 Methodology of Training and DevelopmentThere are two broad types of training available:

On-the-job Techniques• Off-the-job Techniques•

5.16.1 On-the-job Technique

It is delivered to employees while they perform their regular jobs• In this way, they do not lose time while they are learning• After a plan is developed, employees should be informed of the details• A timetable should be established with periodic evaluations to inform employees about their progress• On-the-job techniques include orientations, job instruction training, apprenticeships, internships and assistantships, • job rotation and coaching.

5.16.2 Off-the-job Technique

Off-Job technique includes following points:• Lectures �Special study �Films �Television conferences �Discussions �Case studies �Role playing �


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Simulation �Programmed instruction �Laboratory training. �

Most of these techniques can be used by small businesses although, some may be too costly.•

5.16.3 Orientations are for New Employees

The first several days on the job are crucial in the success of new employees.• This point is illustrated by the fact that 60 percent of all employees who quit do so in the first ten days.• Orientation training should emphasise the following topics:•

The company’s history and mission �The key members in the organisation �The key members in the department, and how the department helps fulfill the mission of the company �Personnel rules and regulations �Some companies use verbal presentations while others have written presentations �Many small businesses convey these topics in one-on-one orientations �No matter what method is used, it is important that the newcomer understand his/her new place of �employment.

5.17 Training and Development ProcessTop lecture present training material verbally and are used when the goal is to present a great deal of material • to many peopleIt is more cost effective to lecture to a group than to train people individually• Lecturing is one-way communication and as such may not be the most effective way to train• It is hard to ensure that the entire audience understands a topic on the same level, by targeting the average • attendee one may win some trained employees and lose othersDespite these drawbacks, lecturing is the most cost-effective way of reaching large audiences.•

5.18 Simulation Exercises and Role PayingRole playing and simulation are training techniques that attempt to bring realistic decision making situations • to the traineesLikely problems and alternative solutions are presented for discussion• The saying there is no better trainer than experience• Demonstration in the real time is executed with this type of training• Experienced employees can describe real world experiences, and can help in and learn from developing the • solutions to these simulationsThis method is cost effective and is used in marketing and management training.•

5.18.1 Audiovisual

Audiovisual methods such as television, videotapes and films are the most effective means of providing real • world conditions and situations in a short time.One advantage is that the presentation is the same no matter how many times it’s played• This is not true with lectures, which can change as the speaker is changed or can be influenced by outside • constraintsThe major flaw with the audiovisual method is that it does not allow for questions and interactions with the • speaker, nor does it allow for changes in the presentation for different audiences.

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5.18.2 Job Rotation

Job rotation involves moving an employee through a series of jobs so he or she can get a good feel for the tasks • that are associated with different jobsIt is usually used in training for supervisory positions• The employee learns a little about everything• This is a good strategy for small businesses because of the many jobs an employee may be asked to do.•

5.18.3 Apprenticeship

Apprenticeships develop employees who can do many different tasks• They usually involve several related groups of skills that allow the apprentice to practice a particular trade, • and they take place over a long period of time in which the apprentice works for, and with, the senior skilled workerApprenticeships are especially appropriate for jobs requiring production skills.•

5.18.4 Internship

Internships and assistantships are usually a combination of classroom and on-the-job training• They are often used to train prospective managers or marketing personnel.•

5.18.5 Programmed Learning

Programmed learning, computer-aided instruction and interactive video all have one thing in common• They allow the trainee to learn at his or her own pace• Also, they allow material already learned to be bypassed in favor of material with which a trainee is having • difficultyAfter the introductory period, the instructor need not be present, and the trainee can learn as his or her time • allowsThese methods sound good, but may be beyond the resources of some small businesses.•

5.18.6 Laboratory Training

Laboratory training is conducted for groups by skilled trainers• It usually is conducted at a neutral site and is used by upper- and middle management trainees to develop a spirit • of teamwork and an increased ability to deal with management and peersIt can be costly and usually is offered by larger small businesses.•

5.19 Evaluating Training ProgramEffectively evaluating training requires the systematic collection of information from a variety of sources• As organisations use training to achieve a variety of organisational goals, there is no universal approach to • evaluating trainingEach organisation must select the criteria that are most relevant to their organisational objectives• This white paper will assist organisations in identifying appropriate criteria for assessing their training • programs.

5.20 What Should Be Evaluated?When choosing evaluation criteria, it is critical to identify what questions need addressing in the evaluation.• Within the training community, the dominant approach to training evaluation categorises criteria into four • levels.


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5.21 Training Evaluation Outcomes

Sr. No Level Outcome

1 Reactions What did the trainees think of the training program?

2 Learning Did the trainees learn the principles, techniques, and attitudes presented in training?

3 Transfer Did the trainees transfer the principles, techniques, and attitudes presented in training to the workplace?

4 Results Did the training program address the organisation’s objectives?

Table 5.2 Training evaluation outcome

The first two levels (reactions and learning) tend to require assessing immediately after training. The second two levels (behavior and results) require assessing after the learners have completed training and have returned to the job (generally one month to one year after training).

5.21.1 Reactions

The first criterion for training evaluation is reactions or trainees’ perceptions of a course• This level of evaluation is the most widely used type of training assessment• Assessing reactions allows trainers to measure if trainees are satisfied with the course• And if they feel that they are learning from the training• Reaction data can provide trainers with valuable diagnostic feedback they can use to modify the courses to meet • the needs of trainees and their organisations.There are different types of reactions. Those are as follows:•

Affective reactionsAssess whether or not the trainees liked or enjoyed the training.

Utility reactionsAssess the trainees’ perceptions that the skills taught in training were useful and relevant to their jobs.

Instructor reactionsAssess the learners’ perceptions of the instructor’s contributions to learning.

Delivery reactionsAssess the students’ perceptions that the material was presented in an organised and coherent manner.

Technology reactionsAssess the trainees’ satisfaction with the technology used, and their perceptions that the technology was easy to use and facilitated learning.

Collecting Reactions DataAfter deciding which types of training reaction measures are relevant, trainers should pull the questions together in a questionnaire. Administer it to learners at the conclusion of training.

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5.21.2 LearningThe second level of a training evaluation involves assessing what the students learned in the training. In measuring learning, three types of outcomes are generally measured:

CognitiveCognitive outcomes include facts and information presented in training.

Skill-basedSkill-based outcomes include knowledge of how to perform the tasks or skills presented in training.

AffectiveAffective changes in learners’ attitudes or motivation.

5.21.3 Behavior

Objective measurements of actual job behavior• Trained observers’ assessments of job performance• Performance appraisals conducted by the trainee, trainee’s co-workers, supervisors, and subordinates•

5.21.4 Results

Results refer to the degree to which the training met the organisation’s objectives• In assessing results, it is important to identify the organisation’s objectives and how the training influenced • these objectives.


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SummaryTraining and development is an important component of every organisation’s survival strategy.• The Development is a related process; it covers not only those activities which improve job performance but • also those which bring about growth of personality.The training and development is an important aspect of human resource policy of an organisation.• An expert and experienced trainer play ‘s an important role in effective training program.• The training needs can be identified through survey, questionnaires, and interview method and appraisal.• Training methodology includes on the job and off the job training for employee as well as for the managers.• Whereas by other methods such as apprenticeship, job rotation, lectures etc are used for training the • employee.The evaluation of training program is very important for effective training programs.• There are four criteria for evaluating the training programs and those are reaction, learning, behavior and • results.Training and development is an important component of every organisation’s survival strategy.• The Development is a related process; it covers not only those activities which improve job performance but • also those which bring about growth of personality.Training needs identification so as to improve the transformation process which has to take place in an • organisation.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Bandt, A. & Haines, S• . G., 2004. Successful Strategic Human Resource Planning. Centre for Strategic Management.Training and Developing Employees• [pdf] Available at: <http://www.sagepub.com/upm-data/26858_7.pdf> [Accessed 24 September 2012].BenefitsofTrainingandDevelopmentforIndividualsandTeams,Organisations,andSociety• [Online] Available at: < http://www.owlnet.rice.edu/~antonvillado/courses/12a_psyc630001/Aguinis%20%26%20Kraiger%20(2009)%20ARP.pdfnd Society> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Employee Welfare, [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10033-Management.htm> [Accessed 21 September 2012].2010. • Human Resource Management-I Video Lecture Course, Safety, Health, Environment, [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10034-Management.htm> [Accessed 21 September 2012].

Recommended ReadingAshwatappa, K., • Human Resource Management, 5th ed., TMH. Dessler, G., Human Resource Management, 10th ed., Person Publications. • Fisher, C., 2005. • Human Resource Management, 5th ed., Shaw – Wiley / Biztantra.

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Self Assessment____________ 1. is an important component of every organisation’s survival strategy.

Training and development a. Qualification and skillsb. Attitude and aptitudec. Talent and knowledged.

The Training and Development process is carried out in any organisation so that employee will be enabling to 2. face the ______________ in every field and survive gracefully.

exama. tough competition b. strugglec. problemd.

Training is a process of ____________ sequence of programmed behavior.3. learninga. understanding b. civilisingc. improvingd.

Training is attempt to improve their4. ___________on the current job and prepares them for an intended job.presentation a. performance b. qualityc. quantityd.

___________ 5. informed worker are less likely to make operational mistakes.Better a. Worst b. Lessc. Mored.

To improve organisational climate, company designed____________ programs.6. exama. development b. trainingc. coachingd.

The importance of Human Resource ___________to a large extend depends on Human Resource_________.7. development, management a. management, development b. progression, planningc. succession, forecastingd.


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Job and organisational requirement are not _________________.8. static a. activeb. inactivec. dynamicd.

Trained employees would be a valued asset to an ______________.9. organisation a. societyb. institutec. companyd.

____________ improves the job knowledge and skills at all levels of the organisation.10. Traininga. Developmentb. Successionc. Planningd.

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Chapter VI

Employees Growth

Aim


explain various dimensions of career planning•

elucidate the concept of the succession planning•

describe a company’s program drawn for employee’s betterment•

Objectives


enlist the components of employee growth•

explain the facilities provided to the employee’s by the companies•

discuss the aspect drawn in career and succession planning•

Learning outcome


understand how employees career is planned by organisation•

identify the policies and facilities given to an employee working in any organisation•

understand the duties of HR that they have to carry out for special case employees•


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6.1 IntroductionEnsuring company’s survival and growth is the most important responsibility of the top management of all organisations. This responsibility can be best fulfilled by planning management successions to ensure the availability of the right kind of management staffs at the right time and right position to provide for continued organisational liveliness and strength.

Unfortunately succession planning does not get the attention it deserves. This is mainly because of manger’s that see a threat in any nominated successor. It is because of the manager’s desire to cling to his chair as long as possible. Career planning involves efforts on the part of the organisation to provide opportunities for growth to its employee’s. Certainly this growth should be accompanied by development. The other thing matter here is role of employees in career planning. It involves efforts on the part of employees to clearly think through and decide areas in which they would like to make a career for themselves.

6.2 What is Career Planning?Career planning in a broader concept means ‘a lifelong sequence of professional education and development • experiences that project an individual through the world of work’A career can be defined as “• a sequence of work-related position occupied by a person during his working life”In the organisational context, it means a series of properly sequenced job related role experiences leading to an • increasing level of responsibility, status, power and rewards to an employeeCareer development involves making decision about an occupation and engaging in the activities to attain • career goalsAn individual career plan is an individual’s choice of occupation, organisation, and career path• Organisational career plan is an organisational system of career movement and growth opportunities from entry • level of an employee in the organisation up to the point of his retirementVarious career planning related activities include:•

Succession Planning �Promotions �Demotions �Job Transfers �Job Rotation �Retirement Planning �

6.3 Importance of Career PlanningFollowing points describes the importance of career planning

Career planning is an important aspect of managing people, a process of human resource development and • effective utilisation of talent to obtain optimal performance.Career planning essentially means helping the employees to plan their career in terms of their capabilities and • capacities within the context of organisational needs.It is an organisational system of career movement and growth opportunities from the entry level of an employee • in the organisation up to the point of his retirement.Career planning provides a road map of growth, short-term and long-term career opportunities in the • organisation.It helps the individual to explore, choose and strive to drive satisfaction with his own career objectives.• Every employee aspires to advance and grow in the organisation, by acquiring more experience, skills and • competencies over a period and demonstrating a desire, capability and performance to achieve higher positions of responsibility and more satisfying remuneration.

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A planned and administered system of career planning provides such growth opportunities to deserving • candidates.Career planning helps an organisation to :•

Build commitment between individuals and the organisation �Development long-range perspective �Reduce personnel turnover expenses �Lessen employee obsolescence �Ensure the effectiveness of the organisation �Utilise individual learning experiences, knowledge and competencies to achieve personal and work-related �goals.

6.4 Succession PlanningSuccession planning is a process of initiating activities connected with finding a suitable person to succeed an • existing person to fill key positional vacancies in the organisation.Succession planning is a systematic process where the organisation identifies, develops and evaluates the existing • staff to make sure they are ready to assume key role within the organisations when required n the near futureSuccession planning differs in the strategic focus from career planning.• In succession planning the concern is less with the career development of the employees and more with the type • of persons required to fill a particular post.The focus of succession planning is on the identification of potential vacancies and locating a probable • successor.It creates a succession chart in respect of a particular position while career planning refers the succession plan • to provide guidance to employees as per organisational needs.It focuses on who would be the best suitable on the basis of performance, experience and could be placed where, • when and how.

6.5 Need for Succession PlanningVacancies for jobs continuously arise due to multiple reasons• Growing organisations need additional people to man new jobs• Organisations lose existing employee incompetent or undesirable employees• Succession planning plays a vital role in ensuring that only competent people manage the organisation all the • time.

6.6 Other Career ProgramsCareer development program are often introduced to meet the unique needs of employees• There are some career development programs that is carried out in an organisation and those are as follows:•

6.6.1 Work Family Programs

Work-family programs focus on increasing use of flexible work schedule• Training for managers in implementing the schedule• Opening of more on-site child-care centers• Greater use of paid leaving for fathers and adoptive parents• More programs that set goals for advancing women into senior management position• Increasing number of companies holding managers accountable for meeting these goals.•


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6.6.2 Relocation Assistance and Hiring Practices

Relocation Assistance and Hiring Practices, focuses on the support provided by firms in assisting spouse of • employees during employee relocation.The amount and nature of support could vary from company to company.• Some firms have altered their policy on nepotism to allow for hiring both spouses.•

6.6.3 Work Family Seminar and Flexible HR Practices

It allows organisations to design programs to help employees manage their work-family conflicts and coping • strategies.Organisations are changing their practices for:•

Recruitment �Travel �Transfer �Promotions �Scheduling hours �Benefits to meet the needs of the larger number of dual career couples. �

6.6.4 Flexible Work Schedules

It has being increasingly instituted at workplaces• These are as follows:•

Flextime �Job sharing �Part time work �Working from home �Compressed workweeks �Temporary workweeks �

Such programs enable the employees to address their work and family concerns. Moreover, it reduces their • potential stressFurthermore, conflicts between their various life roles are also being reduced• Telecommuting has become very popular• This provides for organisational as well as employee related advantages• Some difficulties with telecommuting are communication problem with other employees, limited access to • necessary supplies and equipment and family interruption.

6.6.5 Outplacement Program

Retrenchment and downsizing are now a professionally managed process in most organisations• The objective here is to assist the affected employees in making the transition to new employment• It could involve re-skilling for new• More relevant skills per market demand. So finding a new job is easier.• It could involve working with placement agencies and recruitment firms to provide interviewing opportunities • for the employeesOutplacement programs stress the importance of self confidence and individual career planning beneficial for • middle or late career employees who are being laid offSuch programs provide for support networks that can play a critical role in making it less traumatic and • fairer.

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6.6.6 Special Programs for Women, Minorities and Employees with Disabilities

As these kinds of employees enter in an organisation, special assistance to such employees is needed in their • career.

6.6.7 Fast Track Employees

Such employees are indentified as a “• star”High potential for future are placed on a fast track program to enable them to move to senior position quickly • and also helps in retaining this critical talentThe identification and development of these employees require organisation to exert effort to build and monitor • special program that furnish to this special audienceOrganisations must provide considerable feedback, training and counseling to those employees as well as offer • quicker job changes and more challenging job assignments, particularly during the employee’s first few years on the job.


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SummaryCareer planning in a broader concept means ‘a lifelong sequence of professional education and development • experiences that project an individual through the world of work’.A career can be defined as “• a sequence of work-related position occupied by a person during his working life”.Career development program must be integrated with and supported by the existing HR program if they are to • be successful.Career development initiatives need to be shared openly and propagated by the business leader and HR to • improve its visibility and usage by the employee.Career or job changes by the employee should be based on an understanding of organisation’s job description, • job positing systems and selection policies.It is however the responsibility of HR staff to work with management to ensure that career programs are integrated • with the other HR functions and are routinely evaluated.Career development program must be concerned with organisational and individual effectiveness over the short • and long-term.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Amos, T. L., Ristow, A., Ristow, L. & Pearse, N. J., 2009. • Human Resource Management, 3rd ed., Juta and Company Ltd.Employee education, training and development • [Online] Available at: <http://www.accel-team.com/human_resources/hrm_07.html> [Accessed 24 September 2012].HUMAN RESOURCE MANAGEMENT • [pdf] Available at: <http://www.csb.gov.hk/english/publication/files/e-hrmguide.pdf > [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Industrial Relations, [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10035-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Total Quality Management, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10036-Management.htm> [Accessed 24 September 2012].

Recommended ReadingDessler, G., • Human Resource Management, 10th ed., Person Publications. Patnayak, B., 2005. • Human Resource Management, PHI 3IE.De Cenzo, D. A. & Robin, S.P., 1997. • Personnel/Human Resource Management, McGraw Hill.

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Self AssessmentA sequence of work-related position occupied by a person during his working life is called 1. .

work a. careerb. career planningc. jobd.

A lifelong sequence of professional education and development experiences that project an individual through 2. the world of work is called________________.

career planning a. successionb. careerc. occupationd.

A3. _______________ involves making decision about an occupation and engaging in the activities to attain career goals.

career development a. career planningb. career successionc. career progressiond.

___________4. are often introduced to meet the unique of employees.Career development program a. Work devlopment programeb. Project development programc. Career planing programd.

___________ programs focus on increasing use of flexible work schedule.5. Work-family a. Work-friend b. Work-spouse c. Work-siblingd.

______________ employees are indentified as a “6. star”.Fast-track a. Slow-track b. Handicapc. Disabled.

Relocation Assistance and Hiring Practices, focuses on the support provided by firms in assisting_________ of 7. employees during employee relocation.

neighbora. spouse b. relatives c. siblingsd.


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The focus of succession planning is on the identification of potential vacancies and locating a probable_____.8. successor a. employees b. candidatec. workerd.

_________________ 9. provides a road map of growth, short-term and long-term career opportunities in the organisation.

Career planninga. Career development b. Career management c. Career preparationd.

Career development involves making decision about an10. _____________.livinga. employees b. occupationc. managementd.

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Chapter VII

Performance Appraisal

Aim


explain the need of employee review•

evaluate the appraisal methods•

highlight 360 degree appraisal concept•

Objectives


explain performance evaluation and recognition•

describe the technique and method of evaluation•

elaborate the concept of 360 degree appraisal•

Learning outcome


understand the significance performance appraisal•

implement the techniques of evaluation•

comprehend the concept of 360 degree in performance appraisal•


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7.1 IntroductionPeople differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. For performance appraisals of employees it is necessary to understand each employee’s abilities, competencies and relative merit and worth for the organisation.Performance appraisal rates the employees in terms of their performance. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time.

Performance appraisals are an essential part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organisation to check the progress towards the desired goals and aims. The latest mantra being followed by organisations across the world being – “get paid according to what you contribute”. The focus of the organisations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organisational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organisational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

7.2 Concept and Need of Employee ReviewThe performance review meeting should not be strictly formal nor should it be completely informal in nature.• Ideally, the review meeting should be structured, semi-formal meeting which needs prior preparation by the • appraiser as well as the employee for it to be effective.Following are some points that need to be prepared before the review meeting of performance appraisal.• Inform the date to the employees concerned, time and place for the review meeting well in advance.• Review and be prepared with each and every employee’s:•

Job description �Performance standards �Planned performance goals �Performance measures collected throughout the time period �The critical incidents details �Past appraisals of the employees. �

Be ready with all the important dates• Give the employees a copy of the appraisal form• The appraiser needs to completely understand the standards for the employees at same level to maintain the • consistency in the processPrepare what to say and how to say it calmly• The feedback should be prepared in quantifiable measures where ever possible• The appraiser should be familiar with the performance review form and the details• The employee and the appraiser both should be prepared to discuss and figure out the future goals and training • needsThey should be mentally prepared for constructive feedback• Collect as many evidences to support your point as possible like the monthly, quarterly progress reports.•

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7.3 Concept of Performance AppraisalPerformance appraisal is the process of obtaining, analysing and recording information about the relative worth of an employee.

The focus of the performance appraisal is measuring and improving the actual performance of the employees • and also the future potential of the employeesIts aim is to measure what an employee does.• According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the • systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.”Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during • a given period of time and planning for his futureIt is a powerful tool to calibrate, refine and reward the performance of the employee• It helps to analyse his achievements and evaluate his contribution towards the achievements of the overall • organisational goalsBy focusing the attention on performance, performance appraisal goes to the heart of personnel management • and reflects the management’s interest in the progress of the employees.

7.3.1 Objectives of Performance Appraisal

To review the performance of the employees over a given period of time• To judge the gap between the actual and the desired performance• To help the management in exercising organisational control.• Helps strengthening the relationship and communication between superior and•

Subordinates Employees �Management Employees. �

To diagnose the strengths and weaknesses of individuals so as to identify the training and development needs • of the futureTo provide feedback to the employees regarding their past performance• Provide information to assist in the other personal decisions in the organisation• Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.•

7.4 Types of Appraisal MethodsThere are some methods followed by the organisation for doing appraisal of an employee.

7.4.1 Critical Incident MethodThe critical incidents for performance appraisal are a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period.

7.4.2 Weighted Checklist MethodThis method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

7.4.3 Paired Comparison AnalysisPaired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.


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7.4.4 Graphic Rating ScalesThe Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal.

7.4.5 Essay Evaluation MethodThis method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative technique this method usually uses with the graphic rating scale method.

7.4.6 Behaviorally Anchored Rating ScalesThis method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

7.4.7 Performance Ranking MethodRanking is a performance appraisal method that is used to evaluate employee performance from best to worst. Managers will compare an employee to another employee, rather than comparing each one to a standard measurement.

7.4.8 Management by Objective (MBO) MethodMBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods).

7.4.9 360 Degree Performance Appraisal360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback fromthe people who work around them. This post also includes information related to appraisal methods such as 720,540, 180…

7.4.10 Forced Ranking (Forced Distribution)Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and10 percent in the bottom.

7.4.11 Behavioral Observation ScaleBehavioral Observation Scales is frequency rating of critical incidents that worker has performed.

7.5 360 Degree Performance Appraisal

Contemporary 360-degree methods have roots as early as the 1940s, however, there is some disagreement • regarding at the start of the techniqueDespite these disagreements, one point that most scholars can agree on is 360-degree performance appraisal • has historical roots within a military contextDuring the 1950s and 1960s this trend continued in the United States within the Military service academies• At the United States Naval Academy at Annapolis, the midshipmen used a multi-source process called “• peer grease” to evaluate the leadership skills of their classmatesIn the corporate world during the 1960s and 1970s, organisations like Bank of America, United Airlines, Bell • Labs, Disney, Federal Express, Nestle, and RCA experimented with multi-source feedback in a variety of measurement situations.Subordinate assessments of a supervisor’s performance can provide:•

Valuable developmental guidance �Peer feedback can be the heart of excellence in teamwork �

Customer service feedback focuses on the quality of the team’s or agency’s results.•

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7.6 Steps of the Performance AppraisalThere are some steps while doing appraisal process. Those are as follows:

ME

ME

SUPERVISOR

SUPERVISOR

COWORKERS

EXTERNALCUSTOMERS

INTERNALCUSTOMERS

ME

DIRECTREPORTS

OTHERS

SKIP-LEVALREPORTS

Fig. 7.1 Performance appraisal

7.6.1 Superiors

Evolution by supervisor is the most traditional source of employee feedback.• This form of evaluation includes both the ratings of individual by supervisors on element in an employee’s • performance plan and the evaluation of program and teams by senior managers.

Q. What does this source contribute?The 1st line supervisor is often in the best position to effectively carry out the full cycle of Performance • ManagementThe supervisor may also have the broadest perspective on the work requirements and be able to take into account • shifts in those requirements.

Q. What is the caution to be addressed?Superiors should be able to observe and measure all facets of the work to make a fair evaluation.• Supervisors should be trained. They should be capable of coaching and developing employees as well as planning • and evaluating their performance.

7.6.2 Self-assessment

This form of performance information is actually quite common but usually used only as an informal part of • the supervisor-employee appraisal feedback sessionSupervisor frequently opens the discussion with:”How do you have performed?”• In somewhat more formal approach, supervisor asks employees to identify the key accomplishments they feel • best represent their performance in critical and non-critical performance elementsIn a 360-degree approach, if self- ratings are going to be included, structured forms and formal procedures are • recommended.


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Q. What does this source contribute?Self-ratings are particularly useful if the entire cycle of performance management involves the employees in • a self-assessmentThe developmental focus of self-assessment is a key factor• Approximately half of the Federal employees in a large survey felt that self-ratings would contribute “to a great • or very great extent” to fair and well-rounded PA.Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work • behaviors and task outcomes.

Q. What is the caution to be addressed?Research shows low correlations between self-ratings and all other sources of ratings, particularly supervisor • ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback skillsSometimes self-ratings can be lower than others’. In such situations, employees tend to be self-demeaning and • may feel intimidated and “put on the spot.”Self-ratings should focus on the appraisal of performance elements, not on the summary level determination.•

A range of rating sources, including the self assessments, help to “round out” the information for the summary rating.

7.6.3 Peers

With downsizing and reduced hierarchies in organisations, as well as the increasing use of teams and group • accountability, peer is often most relevant evaluators of their colleague’s performancePeers have a unique perspective on a co-worker’s job performance and employees are generally very receptive • to the concept of rating each otherPeer ratings can be used when the employee’s expertise is known or the performance and result can be • observedThere are both significant contributions and serious pitfalls that must be carefully considered before including • this type of feedback in a multifaceted appraisal program.

Q. What does this source contribute?Employees report resentment when they believe that their extra efforts are required to “make the boss look • good” as opposed to meeting the unit’s goalsPeer ratings have been excellent predictors of future performance and “manner of performance”.• The use of multiple raters in the peer dimension of 360-degree assessment programs tends to average out the • possible biases of any one member of the group of ratersThe increased use of self-directed teams makes the contribution of peer evaluations the central input to the • formal appraisal because by definition the supervisor is not directly involved in the day-to-day activities of the team.The addition of peer feedback can help move the supervisor into a coaching role rather than a purely judging • role.

Q. What is the caution to be addressed?Peer evaluations are appropriate for developmental purposes, but to emphasise them for pay, promotion, or job • retention purposes may not be prudent alwaysGenerally, the identities of the raters should be kept confidential to assure honest feedback. But, in close-knit • teams that have matured to a point where open communication is part of the culture, the developmental potential of the feedback is enhanced when the evaluator is identified and can perform a coaching or continuing feedback role

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It is essential that the peer evaluators be very familiar with the team member’s tasks and responsibilities• The use of peer evaluations can be very time consuming. When used in PA, the data would have to be collected • several times a year in order to include the results in progress reviewsDepending on the culture of the organisation, peer ratings have the potential for creating tension and breakdown • rather than fostering cooperation and support.

7.6.4 Subordinates

An upward-appraisal process or feedback survey is among the most significant and yet controversial features • of a “full circle” performance evaluation program.Both managers being appraised and their own supervisor agree that subordinates have a unique, often essential • perspectiveThe subordinate rating provides particularly valuable data on performance elements concerning managerial • and supervisory behaviorsHowever, there is usually great reluctance, even fear, concerning implementation of this rating dimension• On balance, the contributions can outweigh the concern if the precautions noted below are addressed.•

Q. What does this source contribute?A formalised subordinate feedback program will give supervisors a more comprehensive picture of employee • issues and needsEmployees feel they have a greater voice in organisational decision-making• The feedback from subordinates is particularly effective in evaluating the supervisor’s interpersonal skills.• However, it may not be as appropriate or valid for evaluating task-oriented skills• Combining subordinate ratings, like peer-ratings, can provide the advantage of creating a composite appraisal • from the averaged ratings of several subordinates.

Q. What is the caution to be addressed?The need for anonymity is essential when using subordinate ratings as this will ensure honest feedback• Supervisors may feel threatened and perceive that their authority has been undermined when they must take • into consideration that their subordinates will be formally evaluating themSubordinate feedback is most beneficial when used for developmental purposes. But precautions should be • taken to ensure that subordinates are appraising elements of which they have knowledgeOnly subordinates with a sufficient length of assignment under the manager should be included in the pool of • assessors. Subordinates currently involved in a disciplinary action or a formal performance improvement period should be excluded from the rating group. Organisations currently undergoing downsizing and/or reorganisation should avoid this source of PA.

7.6.5 Customers

Setting customer service standards, requires agencies to survey internal and external customers• Publish customer service standards• Moreover, measure agency performance against customer service standards, and measure agency performance • against this standardInternal customers are defined as users of products or services supplied by another employee or group within • the agency or organisationExternal customers are outside the organisation and include, but are not limited to, the general public.•


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Q. What does this source contribute?Customer feedback should serve as an “anchor” for almost all other performance factors• Including a range of customers in PA program expands the focus of performance feedback in a manner considered • absolutely critical to reinventing the organisation.

Q. What is the caution to be addressed?Generally the value of customer service feedback is appropriate for evaluating team output (there are • exceptions)Customers, by definition, are better at evaluating outputs as opposed to processes and working relationships• It is a time-consuming process.•

7.7 Important Factor in the 360 Degree FeedbacksThe mission and the objective of the feedback must be clear• Employees must be involved early• Resources must be dedicated to the process, including top management’s time• Confidentiality must be assured• The organisation, especially top management, must be committed to the program.•

7.8 Advantages of the 360 Degree AppraisalTo an individual:

Helps individuals to understand how others perceive them• Uncover blind spots• Quantifiable data on soft skills•

To the team:Increases communication• Higher levels of trust• Better team environment• Supports teamwork• Increased team effectiveness•

To the organisation:Reinforced corporate culture by linking survey items to organisational leadership competencies and company • valuesBetter career development for employees• Promote from within• Improves customer service by involving them• Conduct relevant training•

7.9 Problem with the 360 Degree Appraisal ProcessIt is the most costly and time consuming type of appraisal• These programs tend to be somewhat shocking to managers at first. Amoco’s Bill Clover described this as the • “SARAH reaction: Shock, Anger, Rejection, Acceptance, and Help”.The problems may arise with subordinate assessments where employees desire to “get the boss” or may • alternatively “scratch the back” of a manager for expected future favors

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The organisation implementing this type of performance appraisal must clearly define the mission and the scope • of the appraisal. Otherwise it might prove counter productive

One of the reason for which 360 degree appraisal system might fail is because the organisations attempt to �assimilate the 360-degree method within a traditional survey research schemeIn traditional survey research, investigators attempt to maximise data collection with as many items/questions �as possible and with large sample sizesIn the case of 360-degree appraisal, creating measurement instruments with many items will substantially �increase non-response errorsIn addition, large sample sizes are not typically possible considering that perhaps 4 or 5 sources will rate �an employee’s performanceAs such, statistical procedures that rely on large sample sizes in order to ensure statistical validity might �not be appropriateOrganisations must consider other issues like safeguarding the process from unintentional respondent rating �errorsThe culture shock that occurs with any system that creates “change.” And especially with a modern system �like 360 degree performance appraisal; must be taken care of.

7.10 Management by Objectives (MBO)The concept of ‘Management by Objectives’ (MBO) was first given by • Peter Ducker in 1954It can be defined as a process whereby the employees and the superiors come together to identify common goals, • the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followedThe essence of MBO is participative goal setting, choosing course of actions and decision making• An important part of the MBO is the measurement and the comparison of the employee’s actual performance • with the standards setIdeally, when employees themselves have been involved with the goal setting and the choosing the course of • action to be followed by them, they are more likely to fulfill their responsibilities

7.11 Unique Features and Advantages of MBOThe principle behind Management by Objectives (MBO) is to create empowered employees who have clarity • of the roles and responsibilities expected from themUnderstand their objectives to be achieved and• Moreover, help in the achievement of organisational as well as personal goals• To understand the concept of MBO refer given Fig.7.2•


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DefineOrganisational

Globs

DefiningEmployeeObjective

CountiniousMonitoring ofPerformanceand Progress

Performanceevaluation /

reviews

Providing feedback

Performance Appraisals (Rewards /

punishments

Fig. 7.2 Management by objectives

Some of the important features and advantages of MBO are:• Clarity of goals – With MBO, came the concept of SMART goals, i.e., goals that are: �

- Specific - Measurable - Achievable - Realistic, and - Time bound.

The goals thus set are clear, motivating and there is a linkage between organisational goals and performance �targets of the employees.

The focus is on future rather than on past• Goals and standards are set for the performance for the future with periodic reviews and feedback• Motivation - Involving employees in the whole process of goal setting and increasing employee empowerment • increases employee job satisfaction and commitmentBetter communication and Coordination - Frequent reviews and interactions between superiors and subordinates • helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

7.12 Benefit of the Performance AppraisalAppraisal technique is good for both appraise and appraiser. To understand the benefits and the importance of theappraisal read the following points:

For the appraiseIncreased motivation and job satisfaction• Clear understanding of what is expected and what needs to be done to meet expectations• Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations• Improved working relationships with the superior•

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Opportunity to overcome the weaknesses by way of counseling and guidance from the superior• Increased sense of personal value as he too is involved in the appraisal process.•

For the appraiserOpportunity to develop an overview of individual jobs• Opportunity to identify strengths and weaknesses of appraises• Increased job satisfaction• Opportunity to link team and individual objectives with department & organisational objectives• Opportunity to clarify expectations that the manager has from teams and individuals• Opportunity to re-prioritise targets• Means of forming a more productive relationship with staff based on mutual trust and understanding•

For the companyImproved performance throughout the organisation due to:•

Increased sense of cohesiveness and loyalty �Managers are better equipped to use their leadership skills and to develop their staff �Effective communication of organisation’s objectives and values �

Improved overview of tasks performed by each member of a group• Identification of ideas for improvement• Creation and maintenance of a culture of continuous improvement• Communication to people that they are valued.•


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SummaryThe personnel specialists design the performance evaluation system, train the line managers in the use of the • system and maintain the records.For performance appraisals of employees it is necessary to understand each employee’s abilities, competencies • and relative merit and worth for the organisation.Performance appraisal rates the employees in terms of their performance.• The performance review meeting should not be strictly formal nor should it be completely informal in nature.• MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the • performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods).360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback • from the people who work around them.The 360 degree programs tend to be somewhat shocking to managers at first. Amoco’s Bill Clover described • this as the “SARAH reaction: Shock, Anger, Rejection, Acceptance, and Help”.

ReferencesWilton, N., 2010. • An Introduction to Human Resource Management, SAGE.Decenzo, 2009. • Fundamentals Of Human Resource Management, 8th ed., John Wiley & SonsPerformance Management • [Online] Available at: <http://www.shrm.org/about/foundation/research/documents/1104pulakos.pdf > [Accessed 24 September 2012].Performance Management and Appraisal • [pdf] Available at: <http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/027375307X.pdf > [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Organisation Culture, [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10037-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 24 September 2012].

Recommended ReadingTayeb, M. H., 2005. • International Human Resource Management, Oxford University Press.Stewart, G. L. & Kenneth, G. B., 2010. • Human Resource Management, 2nd ed., Wiley.Byars, L. & Rue, L., 2010. • Human Resource Management, 10th ed., McGraw-Hill/Irwin.

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Self AssessmentPerformance appraisal rates the employees in terms of their1. _______________.

performance a. qualityb. abilityc. trainingd.

Which of the following statements is true?2. Get paid according to what you contribute a. Get paid according to what you deserveb. Get paid according to what you wantc. Get paid according to what is your qualification.d.

The performance review meeting should not be strictly____________.3. causal a. informal b. formalc. practicald.

Inform the employees about the___________ for the review meeting well in advance.4. purpose and objective a. nature and typeb. date, time and placec. topicd.

Which is the oldest method used for performance appraisal?5. Critical Incident Methoda. Graphic Rating scales b. Weighted checklist method c. Essay Evaluation Methodd.

Which of the following is the most costly and time consuming type of appraisal?6. 360 Appraisal processa. Management By Objectiveb. Performance Ranking Methodc. Behaviorally Anchored rating Scalesd.

An important part of the MBO is the measurement and the comparison of the employee’s__________ performance 7. with the standards set.

pasta. yearly b. actual c. bestd.


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Customer feedback should serve as an___________ for almost all other performance factors.8. anchor a. ladder b. hookc. bridged.

Subordinate feedback is most beneficial when used for____________ purposes.9. developmental a. appraisingb. rankingc. supervisingd.

___________ and standards are set for the performance for the future with periodic reviews and feedback.10. Target a. Ruleb. Goals c. Deadlined.

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Chapter VIII

Compensation Management

Aim


explain the concept of compensation management to the learners•

highlight the role of an organisation in the compensation process•

enlist the benefits of the compensation to the employees•

Objectives


elucidate the management of compensation•

enlist the different types of wages•

explain the need for compensation•

Learning outcome


understand the wage and salary administration in an organisation•

comprehend various theories of managing compensation•

implement various types of policies and facilities provided to the employees•


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8.1 IntroductionHuman Resource is the most vital resource for any organisation. It is responsible for each and every decision taken, work done and result. Employees should be managed properly and motivated by providing best payment and compensation as per the industry standards. The profitable compensation will also serve the need for attracting and retaining the best employees. Compensation is the salary received by an employee in return for an individual contribution to the organisation. It is an organised practice that involves balancing the work-employee relation by providing monetary and non- monetary benefits to employees. Compensation is an integral part of human resource management which helps motivating the employees and improving organisational effectiveness.

8.1.1 Components of Compensation SystemFollowing are the components of compensation system

Compensation systems are designed keeping in minds the strategic goals and business objectives• Compensation system is designed on the basis of certain factors after analyzing the job work and • responsibilitiesComponents of a compensation system are as follows:•

Job analysis �Pay structures �Salary surveys �

8.2 Types of CompensationCompensation provided to employees can be direct in the form of monetary benefits.• It can be even indirect in the form of non-monetary benefits known as perks, time offs, etc.• Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the • employees in return for their services.If the compensation offered is effectively managed, it contributes to high organisational productivity.•

8.2.1 Direct Compensation

Direct compensation refers to monetary benefits offered and provided to employees in return of the services • they provide to the organisation.The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical • reimbursements, special allowances, bonus, Pf/Gratuity etc.They are given at a regular interval at a definite time.•

Basic salarySalary is the amount received by the employees for their service.

House rent allowanceOrganisations either provide accommodations to its employees who are from different state or country or they • provide house rent allowances to its employeesThis is done to provide them social security and motivate them to work.•

ConveyanceOrganisations provide cab facilities to their employees• Few organisations also provide vehicles and petrol allowances to their employees to motivate them.•

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Leave travel allowanceThese allowances are provided to retain the best talent in the organisation• The employees are given allowances to visit any place they wish with their families• The allowances are scaled as per the position of employee in the organisation.•

Medical reimbursementOrganisations also look after the health conditions of their employees• The employees are provided with medi-claims including their family members• These medi-claims include health-insurances and treatment bills reimbursements.•

BonusBonus is paid to the employees during festive seasons to motivate them and provide them the social security• The bonus amount usually amounts to one month’s salary of the employee.•

Special allowanceSpecial allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest • loansInsurance, club memberships, etc are provided to employees to provide them social security and motivate them • which improve the organisational productivity.

8.2.2 Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to employees in place of the services • provided by them to the organisationThey include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance• Limits, Retirement Benefits, Holiday Homes.•

Leave policyIt is the right of employee to get adequate number of leaves while working with the organisation• The organisations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity • leaves, statutory pay etc.

Overtime policyEmployees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.

HospitalisationThe employees should be provided allowances to get their regular check-ups, say at an interval of one year• Even their dependents should be eligible for the medi-claims that provide them emotional and social security•

InsuranceOrganisations also provide for accidental insurance and life insurance for employees• This gives them the emotional security and they feel themselves valued in the organisation•

Leave travelThe employees are provided with leaves and travel allowances to go for holiday with their families• Some organisations arrange for a tour for the employees of the organisation• This is usually done to make the employees stress free•


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Retirement benefitsOrganisations provide for pension plans and other benefits for their employees which benefits them after they retire from the organisation at the prescribed age.

Holiday homesOrganisations provide for holiday homes and guest house for their employees at different locations• These holiday homes are usually located in hill station and other most wanted holiday spots• The organisations make sure that the employees do not face any kind of difficulties during their stay in the • guest house

Flexible timingsOrganisations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

8.3 Need of Compensation ManagementA good compensation package is important to motivate the employees to increase the organisational • productivityUnless compensation is provided, no one will come and work for the organisation. Thus, compensation helps • in running an organisation effectively and accomplishing its goalsSalary is just a part of the compensation system, the employees have other psychological and self-actualisation • needs to fulfill. Thus, compensation serves the purpose.The most competitive compensation will help the organisation to attract and sustain the best talent. The • compensation package should be as per industry standards.

8.4 Managing CompensationThe basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary • structureIts secondary objective is the establishment and maintenance of an equitable labor-cost structure, i.e., an optimal • balancing of conflicting personnel interests so that the satisfaction of employees and employers are maximised and conflicts are minimisedThe wage and salary administration is concerned with the financial aspects of needs, motivation and rewards• Managers, therefore, analyze and interpret the needs of their employees so that reward can be individually • designed to satisfy these needsThe payment towards manual or mechanical work is referred to as wages• The word ‘pay’ refers to the payment for services done which would include salary as well as wages• Wages are commonly understood as price of labor• In ordinary parlance, any remuneration paid for services is etymological wage• Benham defines wage as “• a sum of money paid under contract by an employer to a worker for services rendered” Certain theories were propounded for determination of wages but these could not stand the test of time. A few theories are discussed below:

8.4.1 Subsistence Theory

This theory, also known as ‘Iron Law of Wages’ was propounded by David Ricardo (1772-1823)• According to this theory, wages tend to settle at a level just sufficient to maintain the workers and his family at • minimum subsistence levelsThe theory applies only to backward countries where laborers are extremely poor and are unable to get their • share from the employers

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8.4.2 Standard of Living Theory

This theory is a modified form of subsistence theory• According to this theory, wages are determined not by subsistence level but also by the standard of living to • which a class of laborers becomes habituated

8.4.3 Residual Claimant Theory

Francis A. Walker (1840-1897) propounded this theory• According to him, there were four factors of production/ business activity viz. land, labor, capital and • entrepreneurshipWages represent the amount of value created in the production which remains after payment has been made for • all these factors of production. In other words, labor is the residual claimant.

8.4.4 The Wage Fund Theory

According to this theory, after rent and raw materials are paid for, a definite amount remains for labor• The total wage fund and the number of workers determine the average worker’s share in the form of wages.•

8.4.5 Demand and Supply Theory

According to this theory, wages depend upon the demand and supply of labor.•

8.4.6 Marginal Productivity Theory

This is an improved form of demand and supply theory• Wages are determined by the value of the net product of the marginal unit of labor employed.•

8.4.7 Purchasing Power Theory

According to this theory the prosperity, productivity and progress of industry depend on there being sufficient • demand to ensure the sale of its products and pocketing of reasonable profitsA large pact of the products of industry is consumed by workers and their families and if wages are high, demand • will be goodHowever, if wages and the purchasing power of the workers are low, some of the goods will remain unsold and • thus output will go down, which will result in unemployment.

8.4.8 The Bargaining Theory of Wages

John Davidson propounded this theory• According to him, wages are determined by the relative bargaining power of workers or trade unions and of • employersWhen a trade union is involved, basic wages, fringe benefits, job differentials and individual differences tend • to be determined by the relative strength of the organisation and the trade unionThe Tribunals and Wage Boards have generally followed the principles laid down in the Fair Wages Committee’s • Report on fixing wagesThe Committee, in its report, has given a considerable thought to wage differentials and has stated that the • following factors should be taken into consideration for fixation of wages:

The degree of skill �The strain of work �The experience involved �The training involved �The responsibility undertaken �


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The mental and physical requirements �The disagreeableness of the task �The hazard attendant on the work, and �The fatigue involved. �

8.4.9 Classification of Wages

The International Labor Organisation (ILO) in one of its publications, classified wages as under:• The amount necessary for mere subsistence �The amount necessary for health and decency and �The amount necessary to provide a standard of comfort �

In India, wages are classified as:• Minimum wage �Fair wage; and �Living wage �

Minimum wageA minimum wage has been defined by the ILO committee as • “the wage which must provide not only for the baresustenanceoflife,butforthepreservationoftheefficiencyoftheworker.Forthispurpose,theminimumwage must provide for some measure of education, medical requirements and amenities”In other words, a minimum wage should provide for the sustenance of the worker’s family, for his efficiency, • for the education of his family members, for their medical care and for some amenitiesIt is very difficult to determine the minimum wage because conditions vary from place to place, industry to • industry and from worker to workerHowever, the principles for determining minimum wages were evolved by the Government and have been • incorporated in the Minimum Wages Act, 1948The important principle being that minimum wages should provide not only for the bare sustenance of life but also • for the preservation of the efficiency of the workers by way of education, medical care and other amenities.

Fair wageAccording to the ILO committee on Fair Wages, “• it is the wage which is above the minimum wage but below the living wage”The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the “• capacity of the industry to pay”Between these two limits, the actual wages should depend on considerations of such factors as:•

The productivity of labor �The prevailing rates of wages in the same or neighboring localities �The level of the national income and its distribution and �The place of industry in the economy �

Living wageThis wage was recommended by the ILO committee as a fair wage and as ultimate goal in a wage policy• It defined as “• one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against ill-health, requirements of essential social needs and a measure of insurance against the more important misfortunes including old age”In other words, a living wage was to provide for a standard of living that would ensure good health for the • worker, and his family as well as a measure of decency, comfort, education for his children, and protection against misfortunes.

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8.5 Designing and Administering BenefitsThe persons who manage enterprises fix wages in the first instance. The designing and administering benefits are as follows:

8.5.1 Collective Bargaining

Collective bargaining is a technique by which disputes of employment are resolved amicably, peacefully and • voluntarily by settlement between labor unions and managements.The method of collective bargaining in resolving the Industrial dispute, while maintaining industrial peace has • been recognised as the bed rock of the industrial dispute Act.Under the provision of the industrial dispute Act, the settlement arrived at by process of collective bargaining • with the employer has been given a statutory recognition under Section 18 of the industrial dispute Act.Under the industrial dispute Act two types of settlements have been recognised:•

Settlement arrived in the course of conciliation proceeding before the authority �Such settlements not only bind the member of the signatory union but also non-members as well as all the �present and future employees of the managementSettlement not arrived in the course of conciliation proceedings. �But the settlement is signed independently by the parties, to the settlement binds only such members who �are signatory or party to the settlement.Section 19 of the Act prescribes the period of operation inter alia of such a settlement and envisages the �continuation of the validity of such a settlement unless the same is not replaced by another set of settlement, while Section 29 prescribes the penalty for the breach of such a settlement

8.5.2 Mediation and ConciliationUnder the Act, effective conciliation machinery has been provided which can take cognizance of the existing as well as apprehended dispute. Either on its own or on being approached by either of the parties to the dispute.The Act further makes conciliation compulsory in majority of disputes

8.5.3 Investigation

Section 6 of the Act empowers the government to constitute a court of inquiry, for inquiring into any matter • pertaining to an Industrial DisputeThe procedure of the court of inquiry has also been prescribed by Section 11• While the report of the court is not binding on the parties, many time it paves the way for an agreement•

8.5.4 Arbitration

Voluntary arbitration is a part of the infrastructure of resolving the Industrial Dispute in the Industrial • adjudicationSection 10 of the Act provides for the provision for resolving the Industrial Dispute by way of arbitration, which • leads to a final and binding awardHowever, in India arbitration is not a preferred way of resolving Industrial Disputes•

8.5.5 Adjudication

Adjudication means a mandatory settlement of Industrial Disputes by labor courts, Industrial Tribunals or National • Tribunals under the Act or by any other corresponding authorities under the analogous state statutesBy and large, the ultimate remedy of unsettled dispute is by way of reference by the appropriate government to • the adjudicatory machinery for adjudicationThe adjudicatory authority resolves the Industrial Dispute referred to it by passing an award, which is binding • on the parties such reference


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There is no provision for appeal against such awards and the same can only be challenged by way of writ under • Articles 226 and 227 of the Constitution of India before the concerned High Court or before the Supreme Court by way of appeal under special leave under Article 136 of the Constitution of IndiaIn a nutshell, wages are influenced both by social and economic factors.•

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SummaryHuman Resource is the most vital resource for any organisation. It is responsible for each and every decision • taken, work done and result. According to Subsistence theory, wages tend to settle at a level just sufficient to maintain the workers and one’s • family at minimum subsistence levels.Purchasing power theory holds that the prosperity, productivity and progress of industry depend on there are • four factors land, labor, capital and entrepreneurship.A minimum wage has been defined by the ILO committee as • “the wage which must provide not only for the baresustenanceoflife,butforthepreservationoftheefficiencyoftheworker.Forthispurpose,theminimumwage must provide for some measure of education, medical requirements and amenities”.Fair Wages is defined as, “• it is the wage which is above the minimum wage but below the living wage”.Living wages is defined as “• one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against ill-health, requirements of essential social needs and a measure of insurance against the more important misfortunes including old age”.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Dessler, G., 2007. • Human Resource Management, 11th ed., Prentice Hall. Compensation’s Role in Human Resource Strategy • [pdf] Available at: <http://www.shrm.org/Publications/Books/Documents/5_chapter3.pdf> [Accessed 24 September 2012].Compensation Management • [Online] Available at: < http://www.citehr.com/68382-what-definition-compensation-management.html> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Organisational Development And Business Effectiveness, [Video Online ] Available at: < http://learnerstv.com/video/Free-video-Lecture-18514-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Human Resource Development And Employee Welfare [Video Online] Available at:<http://learnerstv.com/video/Free-video-Lecture-18515-Management.htm> [Accessed 24 September 2012].

Recommended ReadingSingh, A. K. & Duggal, B.R. • Human Resource Management, Sun India Publications.Dessler, G., • Human Resource Management, 10th ed., Person Publications.Bohlander et all, 2004. • Managing Human Resources, 13th ed., Cengage Learning.


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Self AssessmentEmployees should be managed properly and motivated by providing best payment and compensation as per 1. the _______________ .

industry standards a. governments laws b. industrial policyc. industrial rulesd.

_____________ is the salary received by an employee in return for his/her contribution to the organisation.2. Punishmenta. Compensation b. Profitc. Monetaryd.

Compensation systems are designed keeping in mind the3. and business objectives of the organisation.strategic goals a. planningb. plottingc. analysisd.

Compensation provided to employees can be ____________in the form of monetary benefits and/or ___________ 4. in the form of non-monetary benefits known as perks, time off, etc.

direct, indirect a. indirect, directb. random, straightc. straight, randomd.

Organisations either provide ___________ to its employees who are from different state or country or they 5. provide house rent allowances to its employees.

accommodations a. extra salaryb. traveling allowancec. free calling facilityd.

Organisations also look after the_________________conditions of their employees.6. pick and drop facility a. accommodationb. healthc. entrainmentd.

______________ is paid to the employees during festive seasons to motivate them and provide them the social 7. security

Bonus a. Salaryb. Allowancec. Compensationd.

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____________ is the right of employee to get adequate number of leave while working with the organisation.8. Leave policya. Medical policyb. Traveling policy c. Overtime policyd.

The basic purpose of wage and salary administration is to establish and maintain an ____________ wage and 9. salary structure.

equitable a. fairb. unfairc. biasd.

Which of the following theory is known as ‘Iron Law of Wages’?10. Purchasing power a. Standard of livingb. Demand and supply c. Subsistence d.


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Chapter IX

Job Evaluation

Aim


explain the concept of job evaluation•

elucidate various job evaluation methods•

enlist the responsibilities of job evaluation•

Objectives


evaluate the job evaluation methods•

elucidate the concept of job satisfaction•

explain the need to transfer or promote the employees•

Learning outcome

At the end of this chapter, you be able to:

understand what is meant by job evaluation•

differentiate between various types of job evaluation•

understand job descriptions as well as job evaluation plans•

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9.1 IntroductionJob evaluation is a systematic process that you can use to determine the relative level, importance, complexity, and value of each job in your organisation. With a successful job evaluation system, you can compare each job to other jobs within your organisation. It is best to perform job evaluation after work analysis. Job evaluation, in conjunction with work analysis, helps you develop a job description that is broad, descriptive, and flexible so that you can adapt the description to your organisation’s changing needs.

9.2 Assess Employee ContributionJob evaluation helps you establish and qualify differences in employee contribution across jobs. These differences provide a foundation for employee compensation decisions. The job evaluation process measures the elements of a job and produces an overall score. In each case, you evaluate the job, not the employee who performs the job.

9.3 Definition of Job EvaluationJob evaluation deals with money and work. It determines the relative worth or money value of jobs.

The International Labor Organisation defined job evaluation as “• an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned”.Wendell L. French defined job evaluation as “• a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”.Job evaluation is defined as “• the overall activity of involving an orderly, systematic method and procedure of ranking,gradingandweighingofjobstodeterminethevalueofaspecificjobinrelationtootherjobs”.British Institute of Management (1970) defined job evaluation as, “• the process of analyzing and assessing the content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of newpaystructuresbydefiningrelativesbetweenjobsonaconsistentandsystematicbasis”.Thus, job evaluation may be defined as “• a process of determining the relative worth of jobs, ranking and grading thembycomparingtheduties,responsibilitieslikeskill,knowledgeofajobwithotherjobswithaviewtofixcompensation payable to the concerned job holder”.

9.4 Objective of Job EvaluationThe following objectives are derived from the analysis of the above-mentioned definitions:

To gather data and information relating to job description, job specification and employee specifications of • various jobs in an organisation.To compare the duties, responsibilities and demands of a job with that of other jobs.• To determine the hierarchy and place of various jobs in an organisation.• To determine the ranks or grades of various jobs.• To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other words, equal wages • are fixed to the jobs of equal worth or value.To minimise wage discrimination based on sex, age, caste, region, religions etc.•


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9.5 Essentials for the Success of Job Evaluation ProgrammeFollowing are the essentials for the success of job evaluation programme:

Compensable factors should represent all of the major aspects of job content.• Compensable factor selected should•

Avoid excessive overlapping or duplication �Be definable and measurable �Be easily understood by employees and administrators �Not cause excessive installation or administrative cost and �Be selected with legal considerations in mind. �

Operating managers should be convinced about the techniques and programme of job evaluation.• Furthermore, they should be trained in fixing and revising the wages based on job evaluation.• All the employees must be aware of the job evaluation technique and programme.• Employees groups and grades must be covered with job evaluation programme.• The programme of and techniques selected for job evaluation should be easy to understand by all the • employees.Trade union acceptance and support to the programme should be obtained.•

9.6 Procedure of Job EvaluationFollowing is the procedure of job evalution

The basic procedure of job evaluation is to compare the job content of one job with those of another job.• The content to be compared is decided based on ‘intuition’ of the rater or by comparing with other jobs focusing • on certain factors.These factors are known as compensable factors.• Some organisations decide these factors based on the types of the jobs and internal factors.• Some other organisations adopt the factors from other similar companies.• Job are evaluated more systematic ally taking the compensable factor into account.• Indian institute of personnel management has evolved the following steps for evaluating jobs:•

9.6.1 Analyse and Prepare Job Description

Job evaluation is the outcome of job analysis.• Job analysis provides information necessary for appraising job skills, knowledge, abilities, and aptitude.• Job description provides the information relating to duties and responsibilities.• Job specification provides information relating to employee minimum acceptable qualities.•

9.6.2 Select and Prepare a Job evaluation Plan

Job should be divided into detailed task and positions.• It also includes selection of factors, elements needed for the performance of the jobs, determining the money • value of each factor and element and writing instructions for evaluations.

9.6.3 Classify Jobs

Classify the jobs in a sequential order based on their significance and contribution to the organisation.• Also assign money value to each class.•

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9.6.4 Install the Programme

Educate the employees, win their confidence and then put the programme into operation.•

9.6.5 Maintain the Programme

This step involves updating the job evaluation programme; bring modification based on the changes in the • condition and situations.Make sure from time to time that the programme runs smoothly and perfectly.•

9.7 Job Evaluation MethodJobs are evaluated on the basis of various techniques. These are grouped into two classes:

Quantitative• Non-quantitative•

Non- quantitative techniqueThe Non-Quantitative techniques are simple and crude techniques. They are ranking and job classificationmethods:

Ranking methodSimple Ranking:•

This is the simplest and administratively the easiest technique �The evaluator compares one job with other jobs based on duties, responsibilities and demands made by the �jobs on the job incumbent and the degree of importance of the job to organisation and ranks all the jobs from the most important to the least importantThe evaluator has to appraise and rank the jobs but not the job incumbents �

Ranking the key jobsRanking all the jobs at a stretch under simple ranking method is difficult• The evaluator, in order to minimise this problem has to be identifying the key or representative jobs at the first • stage, rank the key jobs at the second stage, identify and rank all other jobs at the third stage.

Paired comparisonAnother problem of ranking method is that each job cannot be compared with all other jobs for the purpose of • rankingThe method of paired comparison can be adopted to minimise this problem• Under this paired comparison ranking method the evaluator ranks each job in turn against all other jobs to be • appraised, so that a series of paired rankings is producedThis method is more comprehensive, logical and reliable compared to the simple ranking method.•

Single factor ranking methodAnother problem in ranking method is difficulty of operation. Ranking has to be done on the basis of a number • of factorsIn view of this Goldenberg has suggested a single factor ranking scheme• The single factor considered is the discretionary content present in each job related to other jobs• Single most important task to be performed in a job is to identify and compare within the single most important • task to be performed in the other jobs. Thus, pure ranking dose not cover these refinements.


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Job evaluation by classificationJob classification is another easy and well-known job evaluation method that categorises jobs into groups of • relatively the same value for compensationThe groups are classified or categorised by similar compensation factors like independent judgment, physical • effort and so on.The advantage of this method is that many jobs are already grouped for pay ranges and organisational • planning.

Job evaluation by point methodThe point method is a more-complicated, analytical in nature• It involves assigning points based on several compensation factors and the degree to which they are present in • each job, to arrive at a quantitative point ratingIt is a widely used job evaluation technique.•

Job evaluation by factor comparisonAnother popular job evaluation technique, the factor comparison, is a more in-depth ranking method• It ranks each job for several compensation factors like skill, knowledge and difficulty, which are combined into • a total rating.

Quantitative methodThe quantitative method is divided into two type i.e. Point method and factor comparison method

Point methodThis method was introduced by the Merrill R. Lott• This method is analytical in the sense that jobs are broken into components for purposes of comparison• This method is quantitative as each component of the job is assigned a numerical value• Each factor is divided into degrees or levels and point value is assigned to each level and point values are • assigned to each levelThe total of point values assigned to each factor gives the total point value for each job which can be • comparedTypically the compensable factors include the major categories of:• Skill:•

Education �Training �Judgment �Analysis �Mental complexity �Mental dexterity �Adaptability etc �

Responsibilities:• Monetary loss �Machines �Materials �Safety �Policy �

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Effort:• Physical demand �Visual effort �Concentration �Mental effort �Alertness etc �

Working Conditions:• Working conditions and hazards etc. are the points included in the working condition.

9.8 Advantages of Job EvaluationFollowing are the advantages of job evaluation

Job evaluation is a logical and an objective method of ranking jobs relative to each other. It may thus help in • removing inequities in existing wages structures and maintaining sound and consistent wage differences in a plant or an industryThe method replaces accidental factors accidental factors occurring in less systematic procedures of wages • bargaining by more impersonal and objective standards, thus establishing a clearer basis for negotiationThe method may lead to greater uniformity in wage rates and simply the process of wages administration• Information collected in a process of job description and analysis can be used for improvement of selection, • training, transfer and promotion.

9.9 Limitations of Job EvaluationFollowing are the limitations of job evaluation

Though there are many ways of applying job evaluation in a flexible manner, rapid changes in technology and • in the study of demand for particular skills, create problems of adjustmentWhen job evaluation results in substantial changes in the existing wage structure, the possibility of implementing • these changes in a relatively short period may be restricted by the financial limits within which the firm has to be operateWhen there are a large proportion of incentive workers, it may be difficult to maintain a reasonable and acceptable • structure of relative earningsThe process of job rating is to measure the same with accuracy• Job evaluation takes a long time to complete, requires specialised technical personnel and is quite expensive.•

9.10 Job SatisfactionJob satisfaction is determined by a set of personal and job factor, personnel factors relate to worker’s age length • of service intelligence, skill and other personality or temperamental factorR. Hoppock has made pioneering studies on job satisfaction and mention six factor as major determinants of • job satisfaction, namely:

The manner in which the individual reacts to unpleasant situations �The facility with which (s)he adjusts to other persons �Individual’s relative status in the social and economic group with which (s)he identifies himself/herself �The nature of work in relation to man’s abilities, interests and training, security & loyalty �

One of the objectives of an enlightened personnel policy is to increase job satisfaction• To achieve the objective of job satisfaction of the worker, the management must have a clear idea as to what • the worker want from their job.


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9.11 Determinants of Job Satisfaction Determinants of job satisfaction can be enumerated as follows:

Recognition as an individual• A meaningful task• Job security• Fair wages• Opportunity to advance• Avoidance of arbitrary action• Good working condition• Reputation of the concern• A voice in matters affecting him• Competent leadership and• Congenial associates.•

9.12 Promotion and TransfersFrom a general point of view, selection involves the following types of problems:•

Selection from within or outside the company �Hiring new employees from outside the company �Promotion with in the company �Discharge of old employees. �

9.13 PromotionA few companies do have a clear cut policy while certain organisations issue circulars as and when they need• Many companies develop policies over a period of time through settlements and agreements with the workers/ • unionsIn promoting employees, consideration should be given for establishment of the horizontal or vertical • promotionThe desirability of securing assistants who complement rather than supplement their superiors is the major point • in a successive plan which is an integral part of manpower planning.

9.14 Definitions of PromotionPIGORS & MEYERS:•

PIGORS & MEYERS, define promotion as “ � the advancement of an employee to a better job - better in terms of greater respect of pay and salary. Better houses of work or better location or better working conditions- also may characterise the better job to which an employee seeks promotions, but if the job does not involve greater skill or responsibilities and higher pay, it should not be considered a promotion.” This definition takes into consideration only a Vertical promotion.

DALE YODER:• According to Dale Yoder, it is a “• movement to a position in which responsibilities and presumably the prestige are increased. Promotion involves an increase in rank ordinarily; promotion is regarded as a change that results in higher earnings, but increased earnings are essential in a promotion.” This definition talks of both vertical and horizontal promotions.KOONTZ O`DONNEL:•

KOONTZ O’DONNEL observed that promotion is “ � a change within the organisation to a higher position with greater responsibilities and used for more advanced skills than in previous position. It usually involves higher status and increase in pay.”

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Promotions can be from within or can be from outside depending upon the need of the organisation as both have • certain advantages and disadvantagesSo also are the arguments for and against the concept of promotion on seniority or merit• A wise policy which is followed by many organisations is a proper blending of both•

9.15 TransfersPIGORS & MEYERS Consider transfer as “• the movement of an employee from one job to another on the same occupational level and at about the same level of wages or salary”No appreciable change in task or responsibility is expected, SCOTT and others define transfer as • “the movement of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another.”

9.16 Types of TransferTransfers are of many types. It may be a reward transfer or a punishment transfer.

Transfers can be classified as follows:Production transfers• Replacement transfers• Versatility transfers• Shift transfers• Remedial transfers•

They can be temporary or permanent. However, it is better to have a clear-cut and flexible transfer policy. Otherwise, it may lead to a lot of heart- burning among the affected employees.


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SummaryJob evaluation deals with money and work.• • Compensable factors should represent all of the major aspects of job content.Job analysis provides information necessary for appraising job skills, knowledge, abilities, and aptitude.• The term wage is commonly used for those employees whose pay is calculated according to the number of • hours worked.A • Job is defined as a ,“ a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”.Job satisfaction is determined by set of personnel and job factors.• Job evaluation is concerned with assessing the value of the job in relation to another.• Job satisfaction is determined by a set of personal and job factor, personnel factors relate to worker’s age length • of service intelligence, skill and other personality or temperamental factor.

ReferencesRao, P. S. 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.Bernardin, H. J., 2012. • Human Resource Management, 6th ed., McGraw-Hill/Irwin.Adamus, W., • A New Method of the Job Evaluation, [pdf] Available at: <http://www.creativedecisions.net/~rozann/0Proceedings/Final_Papers/106_Adamus_REV_FIN.pdf> [Accessed 27 October 2010].Human Resources Job Description & Job Evaluation Procedures• [pdf] Available at: <http://www.mcc.edu/hr_protected/pdf/Job_Evaluation_Procedure_For_Supervisors.pdf> [Accessed 24 September 2012]2010. • Human Resource Management-I Video Lecture Course, Human Resource Development In Indian Organisations, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-18516-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Human Resource Development A Scenario , [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-18517-Management.htm> [Accessed 24 September 2012].

Recommended ReadingLepak, D. & Gowa, M., 2008. • Human Resource Management, 1st ed., Prentice Hall.Aswathappa, K. • International Human Resource Management, Sadhna, Das, McGraw Hill Companies.French, W., 2006. • Human Resources Management, 6th ed., South-Western College.

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Self AssessmentJob evaluation is a systematic process that you can use to determine the relative level, importance, 1. ________________ and value of each job in your organisation.

easea. difficultyb. complexity c. simplicityd.

Job evaluation helps you establish and qualify differences in employee contribution across____________.2. institutesa. organisations b. jobsc. work placed.

Objective of the Job evaluation is, to gather data and information relating to__________ , job specification and 3. employee specifications of various jobs in an organisation.

job description a. job designation b. job recruitment c. job evaluationd.

Who Define this: “4. A process of determining the relative worth of the various jobs within the organisation, so that different wages may be paid to jobs of different worth”.?

Wendell L. French a. Pigors&Meyersb. Dale Yoderc. R.Hoppockd.

In which method _________is quantitative as each component of the job is assigned a numerical value.5. simple ranking a. point methodb. skillsc. responsibilitiesd.

In promoting employees consideration should be given for establishment of the __________________ 6. promotion.

upward and downward a. in circularb. in-betweenc. horizontal and verticald.


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Which is the following statements is true7. Job satisfaction is determined by a set of personal and job factor, personnel factors relate to worker’s age a. length of service intelligence, skills and other personality or temperamental factorJob satisfaction is determined by a set of personal and family , personnel factors relate to worker’s age and b. personalityJob satisfaction is determined by a set of personal and job factor, personnel factors relate to worker’s job c. description, working ability and competences of the employee.Job satisfaction is determined by a set of personal and job factor, job factors relate to worker’s age length d. of service intelligence, skill and other personality or temperamental factor.

Opposite to promotion is8. _____________ .demotion a. supportb. encouragementc. upgradingd.

Job analysis is the process of getting information about_____________ .9. personnel a. managerb. organisationc. jobsd.

The basic procedure of job evaluation is to compare the job content of____________ .10. one job requirement with those of another a. one competence with those of another’sb. one job with those of another jobc. our jobs with the employeesd.

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Chapter X

Morale

Aim


introduce the concept of morale to students•

explain the significance of morale•

explain various methods of measuring morale of an employee•

Objectives


explain the concept of low morale and high morale•

discuss management practices affect morale in an organisation•

explain the concept of guided and unguided interview•

Learning outcome


understand morale and its importance•

understand the high and low morale concept•

identify the technique of measuring morale of an employee•


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10.1 IntroductionOrganisational morale means as follows:

The way people feel about their job and the organisation they work for•

It includes the atmosphere of the workplace and the way people work together as a team•

The general level of confidence and satisfaction at work place is nothing but employee’s morale•

High organisational morale usually leads to happy workers and financial success•

Morale is internal feeling and it is inspired by the environment•

In general it is referred as • esprit de crop, a feeling enthusiasm, zeal, confidence in individuals or groups that they will be able to cope with the tasks assigned to them

For example, an organisation with high morale would have a busy, but positive atmosphere, where everyone knew what was expected and worked well together to meet these common goals.

10.2 Meaning of MoraleMorale has been variously defined by different authors. Please refer table given below:

Sr. No. Author’s Name Definition

1. Professor Ralph C. Davis

“Good organisational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives for their organisation”.

2. Dale Yoder and Paul D. Standohar

“Morale means evident commitment, that is, demonstrated spirit, enthusiasm, and confidence in the organisation’s policies, programs, and accomplishments. Morale is revealed by what individuals and groups say and do to show an interest in, understanding of, and personal identification with work-team survival and success.”

3. Edwin B. Filippo

“A mental condition or attitude of individuals and groups which determines their willingness to co-operate. Good morale is evidenced by employee enthusiasm, voluntary conformance with regulations and orders, and a willingness to co-operate with others in the accomplishment of an organisation’s objectives. Poor morale is evinced by surliness, in subordination, a feeling of discouragement and dislike of the job, company and associates.”

4. Haimann “It is a state of mind and emotions affecting the attitude and willingness to work, which in turn, affect individual and organisational objectives.”

5. Joseph D. Mooney “The sum total of several psychological qualities which include courage,fortitude, resolution, and above all, confidence.”

Table 10.1 Morale’s definition

10.3 What is Low Morale?Low morale, on the other hand, can be a destructive force. It can reduce productivity, harm relationships with clients and customers, and, ultimately, destroy the organisation’s bottom line. Many different things can trigger low organisational morale. Layoffs and job insecurity are among the most obvious. But, morale problems can also come from poor communication between managers and workers, hard work not being recognised or rewarded, or even missed opportunities for employees to socialise and bond with one another.

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10.4 Importance of MoraleMorale directly impacts the working of an individual in a team towards the realisation of common objectives• Morale therefore is individual specific as well as general• Building of morale is not a mechanical problem that could be solved by either rewards or by punishments• The best way to manage it is to proactively do a lot of employee related interventions that will together impact • morale positivelyMorale can be broadly divided into three categories:• The first concerns, off-the job satisfaction that is expected from work such as:•

Income �Security �Stature in the community �

The second concerns on-the-job satisfaction:• For example-job interest �Opportunity for advancement �Status within the organisation �

The third group concern personal satisfaction:• Job satisfaction that employee get is for organisation in the form of:

Growth �Achievement powers �Job expertise etc. �

Each category has its impact and can damage employee morale to varying degrees• It can result in employee behavior that ranges from engaging in simple gossip to the employee exiting the • companyOne of the ill effects of low employee morale is the bad-mouthing that the employee might engage in outside • the workplace with friends and might even engage in negative press reportingThis could be very harmful for the market perception about the company and even impact sales and revenue• Morale can also be understood as the spirit and confidence with which the employee performs his/her job• It is a complex psychological quality that is impossible to force on someone, difficult to measure, and easily • destroyedThe level of morale is a result of the degree to which the overall needs of the individual are fulfilled.•

10.5 Employee’s MoraleEmployee’s Morale can be classified as follows:

10.5.1 The Employee’s Background

Levels of indigence and education• Type of personality• The above two points largely determine the way in which one seeks to fulfill individual needs for belonging, • esteem, and self-realisationMorale hinges on the satisfaction of these needs.•


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10.5.2 An Employee’s Personal Environment Encompasses

His/her relations with his/her family, friends and neighbors• The employee brings thoughts of his/her home and social life with work and they influence thinking and attitudes • while on the job.

10.5.3 Management Practices Influencing Morale Include

Manager behavior• Company policies and procedures with respect to salaries• Promotion methods• Employee services and benefits• Working conditions• Handling grievances• Disciplinary actions• Handling employee issues etc.•

10.5.4 Bottom Line

Employee morale is all about the perception of the employee’s expectations and reality• The closer the individual’s environment comes to providing the kinds of rewards one expects; the better will • be one’s moraleAnd as this is unique to each individual’s expectations• All of the categories mentioned above need to be proactively redressed in order to best manage morale.•

10.6 Morale and ProductivityIt is assumed that high morale and high productivity go hand in hand• Since morale manifests itself in the attitudes of employees, it is important to know about the results of high • and low moraleOne of the most unpredictable effects of the level of morale is its impact on employee productivity• The productivity of a group is a composite of many factors, at least one of which is the general state of mind • or the commitment of the groupFormerly it was thought that high morale resulted in high productivity• The more we study the casual relationship in business; the less prone we are to oversimplify these • relationshipsResearch is repeatedly proving that this correlation is not as simple• Various studies have revealed that the group having the highest morale need not always be the highest in • productivityAs morale is made up of so many factors, so is productivity, hence both the terms are combination of complex • factorsThe higher the group’s satisfactions the higher the productivity• Though high morale may not be the single cause of the high productivity• A high-producing group nearly always has a reasonably high morale• Morale development most of the time results in successful operations•

Where the individuals can relate their respective endeavors and objectives to the success of the enterprise �as a whole

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So this concluded that � “A morale-building organisation tends to utilise fully the skill, initiative, judgment, and training of its members, and through such utilisation succeeds in building up these and other qualities in everyone, so that the abilities of all constantly expand, and the organisation thus is able to succeed and grow”.

10.7 Measurement of Employee’s MoraleMorale can be measured by accessing attitude and job satisfaction• As it is intangible and subjective concept, it cannot be directly measured or evaluated• Employees may be unwilling to express their feelings of satisfaction or dissatisfaction with their job to the • managementMethods of measuring morale all the way from the “hunch” or general “feeling”, appraisal to reasonably • scientific efforts.There are some scales on which we can measure employee’s Morale:•

The supervisor/executive’s impressions �The guided interview �The unguided interview �A combination of the guided and unguided interview �An analysis of company records �The listening-in process �The questionnaire �A combination of any of the foregoing methods. �

10.8 Interview MethodInterview may be of two types:

Guided• Unguided•

10.8.1 Guided Interview

In guided interview method emphasises mainly on the questions set out before hand by consulting the higher • managementUnder this method, the investigators go to the respondent with printed questionnaires• Explaining them the general objects and provide explanation, if asked for• The interview asks a series of formal questions with simple choice responses• Similar to those included in the printed questionnaire which answered orally.•

10.8.2 Unguided Interview

In unguided interview the participants are encouraged to talk freely about what he thinks about the organisation • and its peopleThere are no specific or formal questions• The interviewer listens to and encourages the employees to take freely with an assurance that talk will remain • secret and confidentialIt may be held individually or in groups• The interviewer may ask questions of general interest and should avoid specific questions.•


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10.9 A Combination of the Guided and Unguided InterviewTo combine the two methods, the interviewer may start with the guided interview, which should be not too long • or cover too much territoryThe interviewer is then invited to discuss any subject that (s)he may like to talk about• During the guided interview some persons tend to bring in material that has no special significance in relation • to the information soughtThe interviewer should observe such instances and encourage the interviewee to follow up these leads during • the unguided position of the interviewAs a matter of fact, few guided interviews are strictly kept on the detailed subjects laid out in the formal • programAnd a conscious effort has to be put forth to get the most out of the unguided phases of the interview.•

10.10 Company’s Record MethodThe investigators analyses the records and bring out the variations in output, such as:•

Rate of absenteeism �Labor turnover and accident �Grievances �Complaints and their severity �

By analysing the records, one checks the extent to which organisation is achieving results• The extent of increase or decrease in profitability, productivity or any other direct benefits to the enterprise• It is the indirect method of measuring the employee morale.•

10.11 General Impression of the SupervisorSome supervisors may not be able to tell you • how they know the morale of their men (team member)But they enjoy such an intimate relationship with their team member that they • do know what their attitudes areThey usually know how to get things done according to the methods they have been taught, but few of them • have had any special training in evaluating morale as suchSome executives are inspirational leaders and capable of developing a high morale, but few of these are trained • in observing and evaluating morale standardsExecutives should be encouraged to strive to sense the morale situation and should be aided by more accurate • tools that are available.

10.12 Listening-in by a Trained ObserverWhiting Williams of Cleveland, Ohio has developed the “listening-in” technique to which is called “Whiting Williams Method”. He personally possesses the ability to make his observations largely objective, something that is unusual in men who might be available for such work.

10.13 The Questionnaire MethodThis method is generally used to collect employee opinions about the factors which affect morale and their • effect on personnel objectivesMorale surveys are generally conducted with a view to:•

Finding out what employees really think �Finding out about the kind of education and information they need �Improving morale and keeping a check on the effectiveness of personnel programs �Determining the training needs of employees �

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Finding out what employees really like. �

In the questionnaire, questions may be asked in various ways• The interviewer has to determine the type of questions to be used depending on the objectives of the survey• These include multiple choice, dichotomous (yes or no) and open-ended questions.•

10.14 Conducting the SurveyManagement may engage an outside consultant to conduct the entire survey• In this event, the consultant must be introduced to the employees, and they should be assured that the person • will not reveal to anyone an individual’s answerIn some cases the company’s representatives may give the employees the questionnaires in a stamped • envelopeThen they do planning on a table about how to distribute those envelopes• They let the employees to get them if they wish to• Employees can even give that envelop to their fellow employees to distribute them• The stamped envelopes are frequently addressed to some management consultant or college professor who • tabulates the results.

10.15 Measurement of Employee MoraleAn organisation with low morale must move quickly and decisively to fix the problem before it is out of • controlFor the most part, it is up to the managers and other senior staffs to implement strategies that will fix the • problemHowever, the average worker does have some influence over improving morale• Dale Yoder and other pointed out the following as signals of low morale:•

Employee unrest �High rate of absenteeism �Tardiness �High employee turnover �Grievances �Need for discipline �Fatigue and monotony �

10.16 Improving MoraleThere are a number of measures which can be used to control the warning signal of low morale• The following are the positive measures to be taken to bring job satisfaction to the employees and reconcile • individual interests with the interests of the organisation

Creation of whole jobs �Job enrichment �Building responsibility into job �Modifying the work environment �Job-sharing �Rotation of jobs �Profits-sharing �


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Morale can be improved in several other measures such as:• Employee contest �Special recognition �Awards to long service employees �Free coffee during rest pauses �Films shows to employees during their lunch hour �Training the supervisors in how to handle people �

Under these methods complete jobs are assigned to workers• The complexity of a job should be increased so that it may appeal their higher needs• Job enrichment tries to deal with dissatisfaction by increasing job depth• Under this, individual employees may be given responsibility for setting their own work pace for concerning • their own error, and/or for deciding on the best way to perform a particular taskEmployees should be encouraged to take risk decision• This can be achieved by:•

Developing work groups �Developing the social contact of the employees �The use of music �Regular rest breaks �

Flex time permits employees to arrange their work hours to suit their personal needs and life-styles• This is particularly suited to situations with fluctuating work loads• Flex time employees are responsible for coordinating their functions with other employees• Furthermore, it will increase the responsibility and autonomy on employee• Two workers divide a full-time job between themselves splitting not only the hours of work but also salary• This reduced employee’s boredom which arises out of the monotonous nature of his work• Morale can be improved by effective profit-sharing schemes• In addition to its economic aspects, profit –sharing has also psychological aspects relating to friendly move by • the management in providing the workers an opportunity to participate in the profits.

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SummaryGood organisational morale is a condition in which individuals and group voluntarily make a reasonable • subordination of their personal objectives of their organisation.Morale can be measured by assessing attitude and job satisfaction.• The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their • attitudes.Questionnaire method is generally used to collect employee opinions about the factors which affect morale and • their effect on personnel objectives.Definition of morale by Professor Ralph C. Davis,” Good organisational morale is a condition in which individuals • and groups voluntarily make a reasonable subordination of their personal objectives for their organisation”.Morale is nothing but • esprit de crop, a feeling enthusiasm, zeal, confidence in individuals or groups that they will be able to cope with the tasks assigned to the employees.Low morale can reduce productivity, harm relationships with clients and customers, and, ultimately, destroy • the organisation’s bottom line.

ReferencesDecenzo, 2009. • Fundamentals Of Human Resource Management, 8th ed., John Wiley & Sons.Kumar, A. & Sharma, R. • Principles of Business Management. Managing Through Change • [pdf] Available at: <http://www.hr.ucdavis.edu/worklife-wellness/ASAP/mgrstoolkit/Managing%20Change.pdf> [Accessed 25 September 2012]A moral principles framework for human resource management ethics • [pdf] Available at: <http://cf.linnbenton.edu/bcs/bm/gusdorm/upload/Moral%20Principles%20Framework.pdf> [Accessed 25 September 2012].2010. • Human Resource Management-I Video Lecture Course, Nature and Scope of HRM, [Video Online ] Available at: <http://www.youtube.com/watch?v=Fa8E3tCDIpo&feature=player_embedded> [Accessed 14 September 2012]..2010. • Human Resource Management-I Video Lecture Course, Human Resource Development A Scenario , [Video Online ] Available at: <http://learnerstv.com/video/Free-video-Lecture-18517-Management.htm> [Accessed 25 September 2012].

Recommended ReadingDessler, G., • Human Resource Management, 10th ed., Person Publications. Patnayak, B., 2005. • Human Resource Management, 3rd ed., PHI publications. Venkata Ratnam C. S. & Srivatsava, B. K., • Personnel Management and Human Resources, Tata Mc-Graw Hill.


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Self Assessment_____________________is revealed by what individuals and groups say and do to show an interest in, 1. understanding personal identification with work-team survival and success.

Moralea. Commitmentb. Spiritc. Zeald.

____________ is evinced by surliness, insubordination, a feeling of discouragement and dislike of the job, 2. company and associates.

Low moralea. High moraleb. Poor moralec. Moraled.

________________ is a condition in which individuals and groups voluntarily make a reasonable subordination 3. of their personal objectives for their organisation.

Willingness and confidencea. Attitude and patience’sb. Exceptions and realityc. Good organisational morale d.

The content of morale could be broadly divided into4. group.four a. three b. twoc. sevend.

The___________ which include his levels of indigence and education and his type of personality-largely 5. determines the way in which he seeks to fulfill his needs for belonging, esteem, and self –realisation.

employee’s background a. employee’s moraleb. employee’s salaryc. employee’s job satisfactiond.

One of the most unpredictable effects of the level of morale is its impact on worker6. ________.productivity a. creativityb. abilityc. capabilityd.

A_____________tends to utilise fully the skills, initiative, judgment and training of its members and through 7. such utilisation succeeds in building up these and other qualities in everyone.

morale- building groupa. demoralising instituteb. morale-building organisationc. morale-boosting organisationd.

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It is assumed that_________ morale and_________ productivity go hand in hand.8. high , high a. high, lowb. low , highc. low, varyingd.

Which of the following statements is true?9. In unguided interview the participants are encouraged to talk freely about what he thinks about the organisation a. and its peopleIn unguided interview the participants are forced to talk freely about what he thinks about the organisation b. and its peopleIn unguided interview the participants are encouraged to talk freely about what he thinks about the organisation c. and its peopleIn unguided interview the participants are discouraged to talk freely about what he thinks about the d. organisation and its people

Guided interview method emphasises mainly on the questions set out before hand by consulting the10. .employees a. employers b. HRc. higher managementd.


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Chapter XI

Motivation

Aim


introduce the concept of motivation•

evaluate different types of theories of motivation•

explain the significance of motivation•

Objectives


explain the need of motivation for an employee•

highlight the effect of motivation in an organisation•

evaluate the theory of motivation•

Learning outcome


understand the concept of motivation•

identify the importance of motivation•

recognise motivation techniques in his organisation•

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11.1 IntroductionManagement involves creation and maintenance of environment.This environment is needed for performance of individuals working together in groups. This group performs towards accomplishment of common objectives. Hence the managers cannot perform their functions without knowing what motivates people.

11.2 Concept of MotivationLess skilled individuals are motivated to show good performance effectively unless which they may not achieve • the level of performance that is desired from themManagerial people are always facing the problems of motivating their subordinates to release their potential • most effectivelyIt is necessary to motivate employees as this will assure that the goals of the organisation are achieved• Knowledge of the motivational process provides the basis for understanding what people do and why• Motivation is positively correlated with concepts of:•

level of aspiration �degree of commitment �inclination towards action �

Motivation is defined as, “• You can buy a man’s time, you can buy a man’s physical presence at a given place, but you cannot buy his enthusiasm, initiative and loyalty.”Motivation aims at transforming the ‘• ability to do’ into ‘the will to do’Motivation has been defined as the act of stimulating someone to take a desired course of action-to push the • right button to get a desired reactionMotivation includes a stimulus and desired results• Motivation concerns itself with the will to work• Motivation also seeks to know the motives for work and to find out ways and means, by which their realisation • can be helped and encouraged

11.3 Definition of Motivation by Different Author

Sr.no Authors names Definition1. Mr. Urwick The dynamic aspect of management2. Michael Jucius Act of stimulating someone to get a desired course of action3. James Driver The phenomena involved in the operation of incentives and drives

4. P.T.YoungOf arousing or initiating behavior• Of sustaining an activity in progress• Of channeling of activity in the given course.•

Table 11.1 Motivation by different author

A man’s performance on a specific task is a function of his skill and motivation• Thus it can be said that p=f(S, M),Where, P=performance, S= skill and M=motivation.Skill does not guarantee that the individual will put forth his/her best effort• There is another variable, namely motivation which finally determines the effort which can be expected from • such employeesIn laboratory experiments it was found that other things being equal, performance level is higher if the motivation • level is higherThe key to understand motivation lies in the meaning and relationships between needs, drives and goals•


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11.4 The Motivation CycleThe motivation cycle comprises of three terms needs, drives and goals. For better understanding refer the diagram given below:

NEEDS(Deprivation)

GOALS(Reduction of)

Drives

DRIVES(Deprivation with)

Direction

Fig. 11.1 Motivation cycle

NeedsThe one word definition of a need is efficiency• In the domestic sense, needs are created whenever there is a physiological or psychological imbalance For • example, a need exists when a cell in the body is deprived of food and water or when the human personality is deprived of other persons who serve as friends or comparisons

DrivesDrives are set up to alleviate needs• A drive can be defined as deficiency with direction• Drives are action-oriented and provide an energising thrust toward goalac complishment• The examples of the needs for food and water are translated into hunger and thirst drives, and need for friends • becomes a drive for affiliation

Goals

At the end of the motivation cycle is the goal.•

A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive•

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11.5 Working Situation of EmployeesMotivation may range from a threatening gesture to a tradition inspired activity

The atmosphere of working situation• The past history of human relations in a company• Expectations about the future as well as a wage incentive plan are stimuli to action. It is believed that the full • force of motivation lies in the person doing the motivation

11.6 Motivation TechniquesAccording to Michael Jucius, management may proceed to motivate employees. This activity may be divided into two parts:

What is to be done?• How and why what is done?•

The former are steps in motivation and the latter are rules governing the steps. Both are performed simultaneously

11.7 Steps of MotivationSize up situation requiring motivation

The first stage of motivation is to make sure of motivational needs• Every employee needs motivation• However, all people do not react in exactly the same way to the same stimuli• Keeping this in mind the executive shall size up how much and what kind of motivation is needed and when • and by which individuals

Prepare a set of motivating toolsHaving determined the motivational needs of a particular person or group an executive must have a list from • which (s)he should select and apply specific tools of motivationAn executive from his personal experience should prepare a list of what devices are likely to work with what • type of people and under what circumstances

Selecting and applying the appropriate motivatorProper application of motivational plan is very important• This involves selection of following things:•

The appropriate technique �The method of application �The timing and location of applications �

Having selected appropriate techniques, thought must be given to its application•

Follow-up the results of the applicationThe last stage of motivation is to follow-up the results of the application of the plan• The primary objective is to determine whether an employee has been motivated or not• If not, some other technique should be tried• A secondary purpose of follow-up is to evaluate motivation plans for future guidance•


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Rules of MotivatingIn following the steps of motivation a manager should be guided by some fundamental rules which should be based upon the following principles:

Self-interest and Motivation:• Undoubtedly, motivation is mainly built on selfishness �To seek some other basis of motivation would be to ignore the real nature of man �The aim should be to learn more about selfishness �

AttainabilityMotivation must establish attainable goals• What is prescribed for a particular person must be attainable by him• This does not mean that the goal is realised at once• Such goals as promotion or desirable transfer may take years to attain. But it must be within reach•

Based on a fact-finding study conducted at several manufacturing plants of the General Electric Company, Sorcher and Meyer have made the following recommendations for improving the motivation of employees in routine jobs:

Provide assembly line employees with more than minimum training. Providing some sort of formal training for • a factory employee beyond the minimum requirement should result in greater personal involvement in the jobCreate sub-goals to measure accomplishment. A sense of competition is important for motivation. • When people work towards clearly defined goals they perform better. Moreover, they are likely to be more • interested in the work which will reduce monotony and mental fatigueProvide regular feedback on performance. Psychological studies show that people perform better when they • receive positive as well as negative feedback about their performance on a regular basisMaintain a neat and orderly work area. If the foreman does not care about neatness, employees may feel that • they need not care about it and this attitude may also affect the quality of their workArrange work situations so that conversation between employees is either easy or impossible• Experienced workers can do routine jobs with little attention to the task• Conversation while working may reduce monotony and fatigue and thus have a favorable effect on output• If possible, increase the number of operations performed by one employee• This can be done by the simplification of manual operations. It offers several advantages, viz.•

The risk of errors is reduced �Training costs are minimised �Management can hire employees at lower wages �Structure jobs, so that workers can, at least occasionally move about the work area �Besides job rotation, there are other ways to provide for physical movement such as setting employees �secure their own tools or by adding operations which require some physical activitiesExplore ways to assign greater personal responsibility �Increased responsibility means greater self-esteem and greater job meaningfulness viii. One way to enlarge �responsibility is to let an employee inspect his/her own work

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11.8 Theories of MotivationAs a leader, one need to interact with their followers, peers, seniors, and others whose support they need in • order to accomplish their goalsTo gain their support, one must be able to understand and motivate them• To understand and motivate people, you must know human nature• Human nature is the common qualities of all human beings• People behave according to certain principles of human nature• Human needs are an important part of human nature• Values beliefs and customs differ from country to country and even within group to group, but in general, all • people have a few basic needsAs a leader you must understand these needs because they can be powerful motivators•

11.9 Maslow’s Hierarchy of NeedsUnlike others researchers in the earlier days of psychology, Abraham Maslow based his theory of • human needs on creative people who used all their talents, potential, and capabilities (Bootzin, Loftus, Zajonc, Hall, 1983)His methodology differed from most other psychological researchers at that time in which these researchers • mainly observed mentally unhealthy peopleMaslow (1970) felt that • human needs were arranged in a hierarchical order that could be divided into two major groups:

Basic needs �Meta needs (higher order needs) �

Basic needsThe Basic needs are physiological, such as food, water, and sleep; and psychological, such as affection, �security and self-esteemThese basic needs are also called “deficiency needs” because if they are not met by an individual, then that �person will strive to make up the deficiency

Meta needsMeta needs or being needs (growth needs) �These include justice, goodness, beauty, order, unity etc. �Basic needs normally take priority over these Meta needs �

For example, a person who lacks food or water will not normally attend to justice or beauty needs


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These needs are normally listed in a hierarchical and it as follows:Diagram of Maslow’s hierarchy of need:

Self-Actualization

Esteem

Belongingness and love

Safety

Physiological

Fig. 11.2 Maslow’s hierarchy of need

Level Title Description

5th level Self-actualisationIt knows exactly who you are, where you are going, and • what you want to accomplishIt is a state of well-being•

4th level Esteem Feeling of moving up in world, recognition, few doubts • about self

3rd level Belongingness and love Belong to a group, close friends to confide with• 2nd level Safety Feels free from immediate danger• 1st level Physiological Food, water, shelter.•

Table 11.2 Maslow hierarchy of need

It should be noted that almost no one stays in one particular hierarchy for an extended period• We constantly strive to move up, while at the same time various forces outside our control try to push us • downThose on top get pushed down for short time periods, i.e. death of a loved-one or an idea that does not work, • while those on the bottom get pushed up, i.e., come across a small prizeOur goal as leaders therefore is to help people obtain the skills and knowledge that will push them up the • hierarchy on a more permanent basisPeople who have their basic needs met become much better workers• As now these workers are able to concentrate on fulfilling the visions put forth to them• Moreover, they will not have to consistently keep struggling to meet their goals•

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11.10 McGregor’s Theory X and Theory YThe character of an enterprise depends on the assumptions of the management in controlling its human • resourcesDouglas McGregor (1957) developed a philosophical view of humankind with his Theory X and Theory Y• These two theories represent the extreme ranges of assumption; there are a number of possible combinations • on the continuumThe managerial attitudes and supervisory practices resulting from such assumption have an important bearing • on employee’s behavior

11.10.1 Theory X

People have an inherent dislike for work and will avoid it whenever possible.• People must be forced, controlled, directed, or threatened with punishment in order to get them to achieve the • organisational objectives.People prefer to be directed, do not want responsibility, and have little or no ambition• In an organisation with Theory X assumptions, management’s role is to coerce and control employees• Theory X is the view that traditional management has taken towards the workforce.•

11.10.2 Theory Y

People will exercise self-direction if they are committed to the objectives (they are NOT lazy).• Commitment to objectives is a function of the rewards associated with their achievement.• People learn to accept and seek responsibility.• Creativity, ingenuity, and imagination are widely distributed among the population People are capable of using • these abilities to solve an organisational problem.People have potential. in an organisation with Theory Y assumptions, management’s role is to develop the • potential in employees and help them to release that potential towards common goals.

Most organisations are now taking the enlightened view of theory Y (even though they might not be very good at it). A boss can be viewed as taking the theory X approach, while a leader takes the theory Y approach.

11.10.3 Theory Z

Prof. William G.Ouchi has developed theory Z• This theory is based on the comparative study of Japanese and American management practices• Theory Z describes how Japanese management practices can be adopted to the environment of the other countries • especially in the United StatesThis theory focuses attention on the organisational behavior side of management• Theory Z can be treated as a model for motivation• This theory believes in the philosophy of management• Both major and minor decisions are taken through consensus in the truly democratic and dynamic • managementBesides, family relationship prevails between the employer and employees• In other words, close, Co-operative and trust-worthy relationship prevails among workers, managers and other • groups


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11.10.4 Some Important Points

Both theories X and Y make certain not-so-valid judgments• They may not reflect man’s inherent nature; rather such behavior in man is in part of management philosophy • and practicesTheory Y particularly emphasises self-actualisation and freedom, implying that all people seek freedom, while • there are definite indications that all people may not feel comfortable with freedom because freedom entails responsibility and independent decision-making which people may not subscribe toIn an organisation, depending on a situation, either the theory X or theory Y could be effectively applied• However, in choosing one or the other managers have to bear the implications in mind so that problem such as • interpersonal or interdepartmental conflict can be avoided

11.11 Herzberg’s Hygiene & Motivational FactorsHygiene or Dissatisfying factors must be present in the job before motivators can be used to stimulate a person • i.e. one cannot use motivators until all the hygiene factors are metHerzberg’s needs are specifically job related and reflect some of the distinct things that people want from their • work as opposed to Maslow’s Hierarchy of Needs which reflect all the needs in a person’s life

Dissatisfiers Motivators

Policies andadministration

ve practices

Supervision

Status

Job Security

Co-workers

Personal Life

Salary andBenifits

Working Conditions

Recognition

Achievement

Advancement

Growth

Responsibility

Job Challenge

Fig. 11.3 Herzberg’s hygiene and motivational factors

11.11.1 Hygiene or Dissatisfiers

Working conditions• Policies and administrative practices• Salary and Benefits• Supervision•

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Status• Job security• Co-workers• Personal life•

11.11.2 Motivators or Satisfiers

Recognition• Achievement• Advancement• Growth• Responsibility• Job challenge•

11.12 Analysis of Maslow, Herzberg, and McGregor’s TheoriesHerzberg’s theory is a micro version of Maslow’s theory that is focused in the work environment• McGregor’s Theory X is based on workers caught in the lower levels (1 to 3) of Maslow’s theory due to • bad management practices, while his Theory Y is for workers who have gone above level 3 with the help of managementMcGregor’s Theory X is also based on workers caught in Herzberg’s Hygiene Dissatisfies, while Theory Y is • based on workers who are in the Motivators or Satisfiers section


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SummaryMotivation is defined as, “• You can buy a man’s time, you can buy a man’s physical presence at a given place, but you cannot buy his enthusiasm, initiative and loyalty.”Less skilled individuals are motivated to show good performance effectively unless which they may not achieve • the level of performance that is desired from them.The motivation cycle comprises of three terms needs, drives and goals.• The one word definition of a need is efficiency.• A drive can be defined as deficiency with direction.• A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive.• Good organisation morale is a condition in which individuals and groups voluntarily make a reasonable • subordinate of their personal object of their organisation.The building of morale is a not a mechanical problem that could be solved by either rewards or punishment.• The study of human motivation is of great importance in any theory of management.• Employees must be motivated time to time, so that they will be able to achieve the desired target.• Motivation aims at transforming the ‘ability to do’ into ‘the will to do’.• Maslow View an individual’s motivation as a pre-determined order of needs which he strives to satisfy.• The Basic needs are physiological, such as food, water, and sleep; and psychological, such as affection, security • and self-esteem.Douglas McGregor (1957) developed a philosophical view of humankind with his Theory X and Theory Y.• These two theories represent the extreme ranges of assumption; there are a number of possible combinations • on the continuum.Theory X is the view that traditional management has taken towards the workforce.• Theory Y assumptions, management’s role is to develop the potential in employees and help them to release • that potential towards common goals.Theory Z can be treated as a model for motivation. This theory believes in the philosophy of management.• Herzberg’s needs are specifically job related and reflect some of the distinct things that people want from their • work as opposed to Maslow’s Hierarchy of Needs which reflect all the needs in a person’s life.

ReferencesRao, P.S., 2010. • Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing House.Wilton, N., 2010. • An Introduction to Human Resource Management, SAGE.Motivation and its Theories• , [pdf] Available at: <http://management consulting courses.com/ Lesson20Motivation&ItsTheories.pdf> [Accessed 26 October 2010].Guide on Staff Motivation • [pdf] Available at: <http://www.csb.gov.hk/hkgcsb/hrm/pdf-file/e-motivation.pdf> [Accessed 25 September 2012]2010. • Human Resource Management-I Video Lecture Course, Recruitment and Selection, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10029-Management.htm> [Accessed 25 September 2012].2010. • Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 25 September 2012].

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Recommended ReadingSuri, R. K. & Chhabra, TN., • Industrial Psychology, Sun India Publications, New Delhi.French,V., • The Personnel Management Process. Houghton, Boston.Parweek, U. & Rao T.V., 1999. • Designing and Managing Human Resource Systems, Anmol Publishers.


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Self AssessmentIt is necessary to_____________ employees, as it will assure that the goals of the organisation will be 1. achieved.

motivatea. encourage b. respectc. inspired.

You can buy a man’s time, you can buy a man’s physical presence at a given place, but you cannot buy his 2. ___________________, initiative and loyalty.”

patience a. abilityb. enthusiasmc. experienced.

Which of the following sentences is true:3. Motivation aims at transforming the ‘a. ability to do’ into ‘the will to do’. Motivation aims at dominating the ‘b. ability to do’ into ‘the will to do’.Motivation aims at confusing the ‘c. ability to do’ into ‘the will to do’.Motivation aims at transforming the ‘d. ability to do’ into ‘the will not do’.

Motivated employees who are in a state of4. ________________.happiness a. curiousb. confusec. tensiond.

Motivation has been defined as the act of stimulating someone to take a desired course of action-to push the 5. right button to get a desired_____________.

feedback a. reactionb. work donec. actiond.

Who has defined motivation as this, ‘The dynamic aspect of management’?6. P.T Young a. Mr. Urwickb. Michael Juciusc. James Driverd.

_____________ 7. does not guarantee that the individual will put forth his/her best effort.Moralea. Education b. Experience c. Skilld.

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Needs are created whenever there is a physiological or psychological8. _______________.imbalance a. balanceb. steadinessc. stabled.

A drive can be defined as deficiency with9. _____________.directiona. motivation b. skillsc. patience’sd.

A_____________ in the motivation cycle can be defined as anything which will alleviate a need and reduce a 10. drive.

morale a. goalb. aimc. targetd.


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Chapter XII

Grievance and Discipline Procedure

Aim


explain the grievances and discipline procedure•

elucidate general practices that organisations use for grievances and discipline•

enlist general guidelines of a disciplinary action•

Objectives


explain pre-requisites of a grievance procedure•

explain the meaning of ‘grievances’ and reason as to why they arise•

enlist the importance of grievances handling•

Learning outcome


understand the critical role of management in maintaining discipline and dealing with grievances•

identify appropriate procedure for grievance and discipline•

recognise the procedure of grievances and discipline•

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12.1 IntroductionDefinition of Grievances

Definition of grievances changes form company to company and from author to author. Please refer the table • below for definition made by different authorsGrievance is nothing but an indication of dissatisfaction of employee’s in an organisation•

Sr. No. Name of author Definition

1. Dale Yoder “A written complaint filled by an employee and claiming unfair treatment.”

2. Prof. Jucious“Any discontent or dissatisfaction, whether expressed or not and whether valid or not, arising out of anything connected with the company that an employee thinks, believes or even feels unfair, unjust or inequitable.”

3. Prof Pigors and Meyers “Dissatisfaction of an employees is anything that disturbs the employee, whether expressed or not.”

Table 12.1 Definition of grievances

International Labor Organisation classifies the grievances as a complaint of one or more workers with respect to:Wages and allowances• Condition of work• Interpretation of services stipulations• Covering such areas overtime, leaves, transfer, promotion, seniority, job assignment and termination of • service

National Commission of labor states that complaints affecting one or more individual workers in respect of their:Wage payments• Overtime• Leave• Transfer• Promotion• Seniority• Work assignment• Discharge•

All above mentioned points would contribute grievances.

12.2 Causes of Grievance AriseA grievance is always a symbol of some malfunctioning or maladjustment. Due to this a talented and skillful manager can always find out the real or submerged reasons for a grievance

Following are the causes of grievances:Promotion• Amenities• Continuity of services• Compensation• Disciplinary action• Fines• Increments•


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Wages• Acting promotion• Recovery of dues• Safety appliance• Superannuation• Supersession• Transfer• Victimization• Condition of work•

12.3 Pre-requisites of a Grievance ProcedureThe efficiency of a grievance procedure depends upon the fulfillment of certain pre-requisites. These are as follows:

Conformity with prevailing legislationWhile designing the grievances procedure due consideration must be given to the existing statutory provisions.

ClarityThere should be clarity regarding each and every aspect of the grievances procedure• An aggrieved employee must be informed about:•

The person to whom a representation can be made �The form of submission in written or oral about the aggrieved employee �The time limit for the redressal of grievance �

Similarly, the redressing authority should be very clear about what is expected from them, what measures they • can take, and the limit within which they should resort to an action.

SimplicityThe grievances method should be simple• Every employee must understand different stages of the procedure•

PromptnessThe promptness with which a grievance is processed adds further to the success of the grievance procedure• Since justice delayed is justice denied the procedure should aim at rapid disposal of the grievances•

TrainingThe success of the procedure also depends upon imparting training to the supervisors and union representative • in handling grievances

Follow-upThe successful working of a grievance procedure depends upon a proper follow-up by the personnel • departmentThe department should periodically review the procedure and introduce the essential structural changes making • it more effective

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12.4 Grievance Handling ProcedureFollowing is the procedure to handle grienvance

A grievance should be dealt within the limits of the first line supervisor• The appellate authority should be made clear to the employee so that if an individual cannot get satisfaction • from his/her immediate supervisor, (s)he should know the next stepThe grievance should be dealt speedily• If the grievance is against an instruction given by a superior in the interest of order and discipline, the instruction • must be carried out first and then only employee can register his/her protest

12.5 Benefits of the Grievance HandlingFollowing are the benefits of grievance gandling

It encourages employees to raise concerns without fear of reprisal• It provides a fair and speedy means of dealing with complaints• It prevents minor disagreements developing into serious disputes• It saves employer’s time and money as solutions are found for workplace problems• It helps to build an organisational climate, based on openness and trust•

12.6 Grievance HandlingTo understand the Grievance handling procedure refer diagram given below:•

MIDDLE MANAGEMENT

SUPERVISOR

ARBITRATION

TOP MANAGEMENT

AGGRIEVEDEMPLOYEE

TOP UNIONLEADERSHIP

COMPANY UNIONGRIEVANCECOMMITTEE

UNION STEWARD

Fig. 12.1 Grievance handling procedure

12.6.1 Initial Step

The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure• If there is no formal procedure and the firm announces an open-door policy then it is possible that the supervisors • may get by passed by the workers who would take grievance directly to the higher level of managementSuch bypassing not only undermines the supervisor’s authority but also creates an atmosphere of win-or-loose • in which both the workers and supervisors will try to prove the other wrong


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12.6.2 Intermediate StepAs shown in diagram (above), the next step on the management side of the procedure is to submit the dispute to middle management.

Involving the supervisor’s middle and senior-line managers in the grievance process helps in two ways• Initially, social barrier between various categories are broken by personal contact and mutual understanding• Various problem-solving methods are carried by the organisation to overcome the problem• Some decision-making committees are appointed by the organisation• At the union side higher personnel in the union hierarchy take charge of the union.• Business agent, a full-time negotiations specialist of the union, takes over the intermediate or sometimes thefinal • steps.Business agent also gives best remedies over the problem.• The line manger often considers grievance processing a minor, incidental, and distasteful duty.•

12.6.3 Final Company-Union StepUsually, the final step to be undertaken by the company and union is a discussion of the grievance between representative of top management and top union officials.

12.7 ArbitrationIn case, the grievance has not been settled by top management and top union leadership, three possibilities • remain:

The union can temporarily or permanently drop the issues b. The union can call a strike if the contract �permitsThe case may be submitted to impartial arbitrator �

Arbitration is usually handled by either a single individual or a panel of three• (S) He can make decision of the dispute brought to them by the union• Generally, the person may be acceptable by both union and management• It is important that no undue influence should have a bearing on his/her deliberations•

12.8 Concept of the DisciplineDuring the last decade, the growth of industries has been hampered by indiscipline• Maintenances of discipline in an organisation are of paramount importance for its smooth running and • survivalDuring the early stages of industrialisation, labor was exploited i.e.•

Child employment �Longer working hours �Inhuman and unhealthy working conditions �Low wages �Absences of safety �Welfare measures were quite common �

The labor, majority being illiterate had to seek outside help to solve their problem• The trade unions, instead of helping in some cases, tried to fulfill their own needs• This led to unlawful activities (strikes, gheraos) and indiscipline in industries• Further with the emergence of union, inter-union rivalry is prevalent in most of the public and private sector • industriesThese factors lead to indiscipline among workmen•

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The rapid industrial growth in the country results in many problem. They are as follows:• Arising out of social changes �Displacement from familiar environment �Lack of adjustment to industrial atmosphere �Changes in living condition �New stresses and strains of industries disputes �Indiscipline and violence, etc �

12.9 Principles for Maintenance of DisciplineThe discipline unit deals with the principles of maintenance of discipline and basic ingredients or guidelines of a disciplinary action.

12.10 Meaning and Objective of DisciplineDiscipline is the observance of principles, rules or any other laid down procedure, practices, Witten or otherwise • in the organisation by the employees or group of employees, to whom these apply, for smooth and effective functioning of the organisationRefer the table given below for definition of discipline:•

Sr. No Name of the Author Definition

1.

Dr.Spriegal Discipline is the force that prompts an individual or a group to observe the rules, regulations and procedures which are deemed to be necessary to the attainment of an objective; it is fear of force which restrains an individual or a group from doing things which are deemed to be destructive of group objec-tives. It is also the exercise of restraint or the enforcement of penalties for the violation of group regulations.

2. Bremblett, Earl R Discipline in the board sense means orderliness-the opposite of confusion…

3. Calhoon. Richard.DDiscipline may be considered as a force that prompts individuals or groups to observe the rules, regulation and procedures which are deemed to be necessary for the effective functioning of an organisation.

Table 12.2 Definition of discipline

Webster’s dictionary gives the meaning of the word • discipline as follows:”It is the training that correct moulds, strengthens or perfects”• “It is the control gained by enforcing Obedience”• “It is punishment or chastisement”.•

12.11 The Aims and Objectives of Discipline To accept the rules, regulations and procedures of an organisation, so that organisational goals may be attained

To impact an element of certainty despite several differences in informal behavior patterns and other related • changed in an organisationTo develop among the employees a spirit of tolerance and a desire to make adjustments• To give and seek direction, and responsibility• To create an atmosphere of respect for the human personality and human relations• To increase the working efficiency and moral of the employees so that their productivity is stepped up and the • cost of production brought down to improve the quality of production


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12.12 Disciplinary ProcedureDisciplinary procedure in Indian industries comprise as follows:

Issuing a letter of charge to the employee calling upon him/her for an explanation• Consideration of the explanation by an employee• Issuance of show cause notice to the employees• Holding of a full-fledged enquiry by an organisation• Considering the enquiry proceedings and findings and making final order of punishment• Follow-up will help an employee to avoid the mistake made by him/her previously•

12.13 Basic Ingredients or Guidelines of a Disciplinary ActionThe principal ingredients of a sound disciplinary system are:Location of responsibility:

The responsibility for maintaining disciplines should be entrusted to a responsible person for e.g. line • executiveThe line executive should issue only verbal and written warnings• In serious cases like suspension only the industrial relation officer should be consulted• Proper formulation and communication of rules• Rules and regulation should be reasonable• Equal treatment to all the employee’s even defaulters should be treated alike• Disciplinary action should be taken in private• Importance of promptness in taking disciplinary action• An individual is assume to be innocent until and unless (s)he is proved guilty• Before taking any disciplinary action, it should be made sure to get and keep adequate records of offences and • warningsAction should be taken in cool atmosphere• Natural justice is accepted• After a disciplinary action has been taken by the supervisor, (s)he should treat subordinates in a manner• Negative motivation should be handled in a positive manner•

12.14 Disciplinary:Action PenaltiesThere are varying penalties for first, second and third offenses of the same rule. Among the penalties available in business are:

Oral reprimand• Written reprimand• Loss of privileges• Fines• Lay off• Demotion• Discharge•

12.15 Procedure for DisciplinaryThough there is no specific rules to be followed, the following rules are taken into consideration:

An accurate statement of the disciplinary problem• Collection of data or fact bearing on the case•

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Selection of tentative penalties to be imposed• Choice of the penalty• Application of the penalty• Follow-up on the disciplinary action•

12.15.1 An Accurate Statement of the Disciplinary ProblemThe first step is to ascertain the problem by seeking answer to the following questions:

Does this case call for a disciplinary action?• What exactly is the nature of the violation or offence?• Under what-condition did it occur?• Which individual/s was/were involved in it?• When, or how often, did the violation occur?•

12.15.2 Collection of Data or Fact Bearing on the Case

Before any action taken in a case, it is essential to gather all the fact about it• A through examination of the case should be made within the stipulated time limit•

12.15.3 Selection of Tentative PenaltyThe kind of the penalty to be imposed for an offence should be determine before hand should it be simple reprimand, a financial or non-financial penalty Or should it be a demotion, temporary lay-off or outright discharge.

12.15.4 Choice of PenaltyWhen a decision has been taken to impose a penalty, the punishment to be awarded should be such as would prevent

Application of penalty: The application of penalty involves a positive and assured attitude on the part of the • management.Follow-up on disciplinary action: The ultimate purpose of a disciplinary action is to maintain discipline, to • ensure productivity, and avoid a repetition of the offense.


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SummaryA grievance is always a symbol of some malfunctioning or maladjustment.• Good discipline might be described as orderly conducts based on definite standards catalyzed by effective • leadership.As far as possible, all the rules should be framed in co-operation and collaboration with the representatives of • employees.Rules should be uniformly enforced if they are to be effective.• If the penalty is imposed long after a violation of rules has been committed, it loses its positive and corrective • influence.Grievance is nothing but an indication of dissatisfaction of employee’s in an organisation.• Maintenances of discipline in an organisation are of paramount importance for its smooth running and • survival.Aaccept the rules, regulations and procedures of an organisation, so that organisational goals may be attained.•

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing House.Wilton, N., 2010• . An Introduction to Human Resource Management, SAGE.Disciplinary and Grievance Procedures • [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/documents/policies/disciplinary/Disciplinary-policy-grades-1to6.pdf> [Accessed 25 September 2012]Managers’ Guide:Grievance Investigations • [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/documents/policies/grievance/Grievance%20Guidance%20for%20Managers%20Grades%201-6.pdf> [Accessed 25 September 2012].2010. • Human Resource Management-I Video Lecture Course, Human Resource Planning - I, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10027-Management.htm> [Accessed 17 September 2012].2010. • Human Resource Management-I Video Lecture Course, Human Resource Planning - II, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10028-Management.htm> [Accessed 17 September 2012].

Recommended ReadingDe Cenzo, D. A. & Robin, S. P.,1997. • Personnel /Human Resource Management. McGraw Hill.Parweek, U. & Rao, T.V., 1999. • Designing and Managing Human Resource Systems. Anmol Publishers.Verma, P., • Personnel Management in Indian Organisations, Oxford & IBM Publishing Co. Ltd.

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Self AssessmentWho has defined grievance as,” “1. Awrittencomplaintfilledbyanemployeeandclaimingunfairtreatment”?

Dale Yodera. Prof. Jucious b. Prof. Pigors c. Prof. Meyersd.

Which of the following statements is true?2. A grievance is always a symbol of some malfunctioning or maladjustment. a. A grievance is always a symbol of some manipulation or maladjustment.b. A grievance is always a symbol of good organisation.c. A grievance is always a symbol of some good HR management.d.

The grievances method should be3. ____________.complex a. simpleb. messyc. difficultd.

The successful working of a grievance procedure depends upon a proper __________by the personnel 4. department.

follow-up a. recordsb. malfunctioningc. adjustmentd.

A grievance should be dealt within the limits of the 5. supervisor.first linea. second line b. last linec. in-betweend.

It encourages employees to raise concerns without fear of6. _____________.revengea. settlement b. reprisalc. conclusiond.

Who has defined discipline as,” 7. Discipline in the board sense means orderliness-the opposite of confusion”?Dr.Spriegala. Bremblett, Earl Rb. Calhoon. c. Richard.Dd.


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The Webster’s dictionary gives the meaning of the word discipline as, 8. It is the that correct moulds, strengthens or perfects”.

preparation a. groupingb. punishmentc. trainingd.

The efficiency of a grievance procedure depends upon the___________of certain pre-requisites.9. execution a. skillsb. fulfillmentc. qualificationd.

The kind of the penalty to be imposed for an offence should be determined10. ____________.before handa. after procedure is over b. in betweenc. after verdict is givend.

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Chapter XIII

Group and Leadership

Aim


enlist the types of groups•

evaluate the effect of group and leadership on organisation and on employees•

explain the rules and regulations for groups and leaders•

Objectives


outline the concept of groups and leadership•

describe the need for groups and leaders•

explain the activities of group and leadership•

Learning outcome

At the end of the chapter, you will be able to:

understand the role of groups and leaders in an organisation•

identify the job responsibility of leaders and groups•

understand the need for leaders and groups in an organisation•


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13.1 Concept of GroupA group refers to two or more persons who interact for a common explicit purpose• A mere collection of individuals assembled in a place like on the street, at a bus stand, or in railway station, • waiting room, etc. are not called a group as they are physically gathered togetherThese groups do not jointly pursue a common objective or share a common feeling•

13.1.1 Definition of Group

Sr. No Author Name Definition

1. Kimball Young Two or more persons in a state of social interaction

2. T.M.Newcomb A group consists of two or more persons who share norms about certain things with one another and whose social roles are closely interlocking

3. W.J.H. Sprott A group is plurality of persons who interact with anyone else.

Table 13.1 Definition of group

13.2 Characteristic of a GroupThe necessary characteristic of a group are as follows:

Two or more people who interact with one another share some common ideology see themselves as a group• The second characteristic means, the members of a group occasionally meet, talk, and do things together• Third characteristic means, the members of a group have something in common like common goals, common • threat, security concern, etcFourth characteristic means, people who interact with each other and who share a common ideology are attracted • to one another

13.3 Group Fulfills the Needs of its MembersAffinitive needs of an individual are fulfilled by the group through friendship between individuals• A group also fulfills egoistic needs of an individual by developing self-esteem and status• A group fulfills functional needs of its members by helping individuals in their daily activities, adjusting work • routines and avoiding boredomCognitive needs may be satisfied by motivation•

13.4 Group Serves the PurposesGroup is a means for affiliation needs like needs for friendship, love and support• A group is a means of developing a sense of identity and maintaining self-esteem• It is a means of establishing and testing reality through developing consensus among group members• It is a means of increasing security and power to handle a common enemy or threat•

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13.5 Types of GroupsGroups may be classified on the basis of the following criteria:•

Purpose or goal �

Extent of structuring �

Legal organisation or setting �

Groups may be formal or informal• All groups have the following common characteristics:•

Have leaders �

Have followers �

Try to achieve some goal or goals �

Have ideas about how to achieve the goals �

Communicate expectations to members �

Satisfy some needs of its members �

13.6 Formal Work GroupsOrganising means arranging people in such a pattern that they can perform the required activities• The purpose of managers’ organising responsibility is to create formal workgroups that are necessary to achieve • the goals of the organisationThe characteristics of formal workgroups are:•

They are approved by some authority �

There is a fixed division of labor �

Individuals are assigned specific responsibilities �

There are personal interactions between the group members �

13.7 Informal Work GroupsInformal groups are not very well organised groups• They exist because the formal groups in an organisation do not satisfy human needs sufficiently• Informal workgroups provide a means of satisfaction for security needs, social needs and esteem needs•

13.7.1 Informal Work Groups and Security Needs

Informal groups support their members and protect them from outside pressure and authority• The group protects an individual from unfriendly work environment• New employees try to find an existing group and join it for helping the orientation process•

13.7.2 Informal Work Groups and Social Needs

Many jobs do not allow communication and interaction between workers• In this situation, people cannot make friends and are unable to satisfy their need for companionship• People want to belong to a small social group in which relationships are based on common interests and • valuesSocial groups occur in most of the companies• Members of a social group enjoy each other’s company•


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13.7.3 Informal Work Groups and Esteem Needs

Informal groups are also a means of status or prestige for its members. This is especially true if:• The group is well known in the organisation• Outsiders want to join the group• It is difficult to achieve acceptance into the group• The informal group is a source of egoistic need satisfaction• The need to achieve can be partially satisfied by the informal group•

13.7.4 Advantages of Informal Groups

Informal groups increase the employees’ sense of security and help them to do the work more effectively• Informal groups can help managers maintaining discipline• Informal groups help to maintain “no time clock” policy because the employees are highly motivated and also • there is peer pressureSo any individual cannot take undue advantage of this policy•

13.7.5 Disadvantages of Informal Groups

The disadvantages of informal groups arise when the goals of the group do not match with the organisational • goalsThis problem occurs when a planned change is implemented• The protection and social relationships provided by informal groups are in danger due to new plans that disturb • order and stability creating new procedures of standard and production moreover disturb the pattern of personal interactions on the job

13.7.6 Elements of Group BehaviorMembership in the Group:It is a process in which membership is provided to individuals on the basis of common interests and readiness to be cooperative and follow group norms.

Emergent leadershipThe informal leader performs two functions:

Starts action and provides direction• Tries to eliminate the differences of opinion within the group and makes effort so that the group achieves its • goalsCommunicates the group’s beliefs, policies, job, organisation, supervision and other matter to non-members•

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Formal hierarchyAll groups have some formal arrangement• The sub-leaders communicate the message to the members of the group• The individuals performing leadership role possess prestige because of their role•

Group has some activity or task to performA group does something which may be related to its job or not related to it•

InteractionAll people interact with one another• During interaction one person responds to another• According to Berne, • “people interact with each other in terms of three psychological positions or behavioral patterns known as ego status”These ego states are parent, adult and child• Persons interacting with a parent ego are protective (caring), dogmatic (strict), evaluative and righteous (honest • and respectable)They prefer laws, rules and standards• People with adult ego state are based on reasons, looking for information and processing it and on factual • discussionsIt views people as equal, worthy and reasonable human beings• The child ego state shows the conditions and experiences of childhood• It is dependent, rebellious (disobedient), selfish and sometimes creative•

Group normsEvery group has some rules, norms, beliefs, traditions and attitudes that the group members must follow:“Norms are the ought to’s of behavior. They are prescriptions for acceptable behavior determined by a group, institution or society.”----Luthens

“Group norms are rules or guidelines of accepted behavior which are established by a group and used to monitor the behavior of its members.”----Argyle

Group cohesivenessIt is the degree of attraction that the group has for its members• Cohesiveness is shown by attitudes like loyalty to the group, a feeling of responsibility for group efforts, • friendliness

Member satisfaction:The end result of group membership is satisfaction of members• In a survey of 37 studies, Heslin and Dumply have shown specific relationship between satisfactions of members • of work group

Perceived freedom to participate �Perceived goal attainment �Status consensus �


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Perceived Freedom to Participate:A member’s opinion of freedom to participate affects need satisfaction• Individuals who feel that they are active participators are more satisfied while those who feel that their freedom • to participate not important were less satisfied

Perceived Goal Attainment:A group member ’s opinion of progress towards achievement of desired goals is related to member • satisfactionMembers of the groups which progressed towards goal achievement showed higher satisfaction while members • of the groups which are not progressing towards the achievement of goals showed lower satisfaction

Status ConsensusIt is an agreement about the relative status of all group members• When the degree of status consensus within the group is low, member’s satisfaction is low• Status consensus is achieved in groups where the members consider group task specialist as competent• A leader plays an important role• A leadership role is performed by an individual who focuses on coordinating and maintaining the activities of • the group

13.8 Group Decision MakingImportant decisions are taken by groups and not by individuals• Generally, group decision making is better than individual decision making•

13.9 Advantages of Group Decision MakingGroups perform better than individuals in decision making because:

A wide range of alternatives and solutions are considered• Decisions taken in a group are well accepted and the level of commitment is also high• People accept a decision when they have contributed to decision making•

13.10 Potential Problems with Group DecisionsGroup decisions take longer time than individual decisions

Sometimes, group decision may be a compromise which gives no positive results• A dominant person in a group may dominate over other members and affect decision making• This is more common when group members are of unequal rank• A person with high rank tries to dictate over members with low rank•

13.11 Problems of Individual DominanceAvoid announcing your preferred solution while the group is working on the problem.

Listen carefully to suggestions from every member• Encourage every group member to participate• Try to achieve a good solution•

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13.12 Group DynamicsIt is related to the interactions between group members in a social situation• It is concerned with getting knowledge of groups, how they develop, and their effect on individual members • and organisationThomas Harrell defines Group dynamic as, “• Group dynamics is an expression that describes the situation in which people acting together in a group accomplish certain thing, either positively or negatively in a way that cannot be explained adequately in terms of individual acting separately.”The word ‘dynamics’ is derived from a Greek word which means ‘force’. Thus, group dynamics are the forces • working in a group

Many factors in the work environment affect group behavior. The two broad aspects are:The physical environment, for example, plant, equipment, layout• The psycho-social environment, for example, worker needs reward systems, work group structure, supervisory • practices, work group norms, worker roles and attitudes

13.13 Principles of Group DynamicsPrinciples of group dynamics (termed by Cartwright) are the norms that the group must follow to work effectively.

These principles are as followsThere should be no barrier between the leaders and the followers• The leader (who changes others) and the follower (who are changed) should have a strong sense of belongingness • to the groupThe group should be attractive to its members• It increases the group’s influence on its members• A group member with higher prestige has a greater influence on other members of the group• Efforts to change individual members of a group will make them conform to the norms of the group• Pressure for changes in a group can be established by creating the perception that there is a need for change• Information related to the need for change, plans for change, and the results of change should be shared by all • members of the groupChanges in one part of the group may cause tension in other parts• This tension can be reduced by removing the change or making some adjustments•

Cattell proposed seven theorems which show characteristics of synergy within a group:Groups are formed to satisfy individual needs and stop to exist when this purpose is not solved• The total synergy of a group is the result of the attitudes of all members towards the group• Effective synergy may be aimed to achieve goals outside the group• Individual group members may also use groups to achieve personal goals; group goals may be secondary to • themGroup memberships may overlap, but the total synergy in the group remains constant•

13.14 Definition of LeadershipAccording to Koontz and o’ Donnell “It is the art of including the subordinates to accomplish their assignments withzealandconfidence.Zealreflectsardor,earnestnessandintensityinexecutionofwork;confidencereflectsexperience and technical ability”.


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13.15 Concept of LeadershipManagers are people who do things right, while leaders are people who do the right thing• Leadership is all about courage to dream big• Leadership is a complex process by which a person influences others to accomplish a mission, task, or objective • and directs the organisation in a way that makes it more cohesive and coherentLeadership makes people want to achieve high goals and objectives, while, on the other hand, bosses tell people • to accomplish a task or objectiveLeadership can be used for good or ill• Leadership skills can be perverted to pursue bad end•

13.16 Characteristics of LeadershipFollowing are the characteristics of leadership:

Co-existence with follower ship• Responsibility• Understanding nature• Precedence• Situation•

13.17 Co-existence with FollowershipA leader cannot exist without following:

A leader exercises authority over the group, and it should be willingly group and it should be willingly accepted • by his followersLeadership is not conferred or ordered but is one to be earned•

13.18 ResponsibilityA leader is expected to take full responsibility in all situations• He must steer the group clear of all difficulties• He has to assume responsibility for all actions of the group•

13.19 Understanding NatureImportant feature of leadership is its nature to understand the feelings and problems of the group as a whole as • well as the individualsGuide a leader is looked upon as a friend and a philosopher• A leader should strive to satisfy the personal and social needs of his/her followers, which is very much expected • by them

13.20 SituationLeadership pattern changes according to the type of group and the situation in which the group is operating• A leader should know on the role to be adopted on different situations•

13.21 Importance of LeadershipInitiates actionA leader communicates the policies and plans to the subordinates from where the work actually starts.

MotivationA leader motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates.

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Providing guidance A leader guides by instructing the subordinates the way they have to perform their work effectively and efficiently.

Creating confidenceConfidence is an important factor which can be achieved through expressing the work efforts to the subordinates,explaining them clearly their role and giving them guidelines to achieve the goals effectively.

Building moraleA leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.

Building work environmentManagement is getting things done from people. An efficient work environment helps in sound and stable growth.He should listen to his subordinate’s problems and solve them. He should treat employees on humanitarian terms.

Co-ordinationCo-ordination can be achieved through reconciling personal interests with organisational goals. This synchronisation can be achieved through proper and effective co-ordination which should be primary motive of a leader.

13.22 Impact of Leadership in an OrganisationLeadership and human behaviorCommunication is very important because a leader coach, coordinate, counsel, evaluate, and supervise through this process.

Leadership and CommunicationCommunication is very important because a leader coach, coordinate, counsel, evaluate, and supervise through this process.

Leadership and motivationA person’s motivation is a combination of desire and energy directed at achieving a goal.

13.23 Leadership TheoriesFollowing are the leadership theories:

13.23.1 Trait ApproachKeith Davis has summarised four of the major traits which might have an impact on successful organisational leadership. They are as follows:

IntelligenceResearch has shown that generally a leader has higher intelligence than the average intelligence of the • followersHowever the leader cannot be exceedingly much more intelligent than his/her followers•

Social maturity and breathLeaders tend to be emotionally stable and mature and to have broad interests and activities• They have an assured, interests and activities• They have an assured, respectful self concept•


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Inner motivation and achievement drivesLeaders have relatively intense motivational drives of the achievement type• Strive for drives of the intrinsic than extrinsic rewards•

Human relations attitudeSuccessful leaders recognise the worth and dignity of their followers and are able to emphasise with them• According to research studies leaders possess consideration and are employee centered rather than production • centered

13.23.2 Behavior ApproachAutocratic

An autocratic leader is one who commands and expects compliance• (S)He is dogmatic and positive and leads by his/her ability to withhold or give rewards and punishment•

Participative or supportiveThe participative or supportive leadership behavior is based on the assumption that :• People essentially want to participate,• They want to accomplish and• They will work well if general supervision is employed•

Instrumental or instrumental supportive:Instrumental behavior of leadership emphasises the leader’s role as a manager in the rational aspects of • management namely planning, organising, controlling etc.

13.23.3 Situation ApproachStag Dill and his associates research findings revealed that leadership ability is heavily affected by situational • factors like their :

Job �The organisational environment in which they operated history of the enterprise �Community in which the organisation operates �Psychological climate of the group and their characteristics �Group member personalities and cultural influences and so on �

13.24 Contingency TheoriesThe Fiedler Model

Fred E. Fiedler Argued that effectiveness depends on two interacting factor:• Leadership style �Degree to which the situation gives a leader to control and influence �

There are three important tasks in leadership• The relationship between the leaders and followers• If the leaders are liked and respected they are more likely to have the support of others.•

The structure of the taskIf the task is clearly spelled out as to goals, methods and standards of performance then it is more likely that • leaders will be able to exert influence

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Position powerIf an organisation or group confers powers on the leader for the purpose of getting the job done, then this may • well increase the influence of the leader.

13.25 Situational Leadership TheoryIt is a contingency theory that focuses on followers’ readiness. Readiness refers to the extent to which people have the ability and willingness to accomplish a specific task.

There are four stages of readiness:• Able and willing �Able and unwilling �Unable and willing �Unable and unwilling �

13.26 The Path-Goal TheoryPath-goal theory identifies four kinds of leadership behaviors.

Directive leader behaviorLetting subordinates know what is expected of them, giving guidance and direction, and scheduling work.•

Supportive leader behaviorBeing friendly and approachable, showing concern for subordinate welfare, and treating members as equals.•

Participative leader behaviorConsulting subordinates, soliciting suggestions, and allowing participation in decision making.

Achievement-oriented behaviorSetting challenging goals, expecting subordinates to perform at high levels, encouraging subordinates and • showing confidence in subordinates’ abilities.

13.27 Contemporary TheoriesTransactional leaders

Clarify the role and task requirements of subordinates• Initiate structure• Transactional Leaders• Provide appropriate rewards• Display consideration for subordinates• Meet the social needs of subordinates•

13.28 Charismatic LeadersThe ability to inspire• Motivate people to do more than they would normally do• Tend to be less predictable than transactional leaders• Create an atmosphere of change• May be obsessed by visionary ideas•


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13.29 Transformational LeaderSimilar to charismatic leaders• Distinguished by their special ability to bring about innovation and change by• Recognising followers’ needs and concerns• Helping them look at old problems in new ways• Encouraging them to question the status quo•

13.30 Team LeaderLeadership is increasingly taking place within a team context• The role of team leader is different from the traditional leadership role• The challenge for most managers is learning how to become an effective team leader• There are four basic team leadership roles:•

Team leaders are liaisons with external constituencies �Troubleshooters �Conflict managers �Coaches �

13.31 Classification of LeadershipAccording to the personnel research board of Ohio University leaders were classified as follows:The bureaucratWho sticks to routine, pleases his superiors, avoid subordinates and he is contemptuous to them.

The autocratHe is directive and expects obedience from followers (Do as I say-not, as I do). Hence, subordinate do not like him.

The diplomatHe is an opportunities who exploit subordinates. Hence, he is not trusted by his subordinates.

The expertHe is an over-specialised man. He is self-centered and interested in his owned narrow field. He treats his subordinate only as his fellow-workers without any feelings. He always finds himself along.

The quarter backHe identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates at times. However, he is generally liked by his followers.

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SummaryA group refers to two or more persons who interact for a common explicit purpose.• Kimball Young defines a group as “two or more person in a state of social interaction”.• Group may be classified in many different ways: the basic for differentiation may be purpose or goal; extend • of structuring; legal organisation or setting.The end goal of the manager’s organising responsibility is to create formal work groups that are necessary to • achieve the organisation’s goals.Group dynamic is concerned with the interactions and forces between group members in a social situation.• Group can be formal or informal.• Informal groups support their members and protect them from outside pressure and authority.• According to Koontz and o’ Donnell “It is the art of including the subordinates to accomplish their assignments • with zeal and confidence. Zeal reflects ardor, earnestness and intensity in execution of work; confidence reflects experience and technical ability”.

ReferencesRao, P. S., 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House. Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. • A Review of Leadership Theory and Competency Frameworks.WHAT IS LEADERSHIP IN HR? • [pdf] Available at: <http://xa.yimg.com/kq/groups/3598466/685835961/name/article+-+leadership+in+HR+-+Anil+Kaushik.pdf> [Accessed 25 September 2012].Inside Leadership • [pdf] Available at:<http://www.hrmrecruit.com/files/New%20PDFs/JL%20Inside%20Leadership%20-%20Preparation%20makes%20Interim%20Perfection%20July2012.pdf> [Accessed 25 September 2012].2010. • Human Resource Management-I Video Lecture Course, Organisation Culture, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10037-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 24 September 2012]

Recommended ReadingMathis, R. L. & Human, J. H., 2007. • Human Resource Management, 12th ed., South-Western College Pub.French, W., 2006. • Human Resources Management, 6th ed.,South-Western College Pub. DeCenzo, D. A. & Robbins, P. R., 2004. • Human Resource Management, 8th ed., John Wiley and Sons Ltd


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Self AssessmentA_____________ refers to two or more persons who interacts for a common explicit purpose.1.

leader a. groupb. organisationc. hrd.

Who has defined group as,” 2. Two or more persons in a state of social interaction”?Kimball young a. T.M Newcomb b. W.J.Sprottc. T.M Youngd.

Affinitive needs of an individual are fulfilled by the group through _____________________between 3. individuals.

revengea. friendshipb. companionship c. reprisald.

A group is a means of developing a sense of identity and maintaining4. ______________.self-esteema. overconfidenceb. boldnessc. self-respectd.

_____________ exist because the formal groups in an organisation do not satisfy human needs sufficiently.5. Formal work-group a. Informal work group b. Groupc. Leaderd.

______________ is all about courage to dream big.6. Leadership a. Groupb. Bossc. Managerd.

Leadership skills can be______________ to pursue bad end.7. protected a. perverted b. prevented c. preserved.

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A leader is expected to take full_____________ in all situations.8. responsibility a. actionb. jobc. workd.

A person’s____________ is a combination of desire and energy directed at achieving a goal.9. morale a. courageb. motivationc. qualificationd.

A_______________ leader is one who commands and expects compliance.10. autocratic a. democratic b. aristocratic c. nobeld.


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Case Study I

HR FunctionsMr. A.P. Dutta is in charge of a bindery in Vijayawada, which employs fifteen people. Presently, three of the employees run machines; one supervises, while others are helpers in the factory. However, there is no one to move blank papers and finish print by hand-car. Thus, this position, which demands no skill other than driving a hand- car, needs to be filled as soon as possible. There are three applicants who have responded for this vacancy. The HR needs to select the right candidate.

The first one is Mr. Kumar Gujar who is thirty-five, unmarried, and a Navy veteran. Kumar has poor work record. • In Vijayawada, he has worked for five years in seasonal labor and occasional odd jobs. He drove a forklift in the navy, while working at Vishakhapatnam. He has a strong muscular build. However, there is no heavy work involved for this profile.Mr. Nehal Singh, age twenty-two, came to Vijayawada two years before from Punjab. He has done farm labor for • many years and assembly line work for one year in an automobile industry. His command over English is poor (but can speak regional language, Telgu, fluently). He lives with his mother and seems to remain in the area for some time. After having experience to run farm equipments, he should have no problem steering a hand-car.Mr. Swami Nathan Raja is a local boy who finished high school two years ago. Subsequently, he got a diploma • and is currently employed as an assistant engineer in Laxmi Transport Company, Vijayawada. His character references are excellent. Mr. Raja is small, but he seems quick and was a star in high school.

(Source:Kumar, R. Human Resource Management:Strategic Analysis Text and Cases, Available at <http://books.google.co.in/books?> Accessed 14 October 2012)

QuestionsHow much consideration should be given to Mr. Kumar Gujar’s poor work record? Should the HR check to 1. verify it?AnswerThe work experience should be given prime importance while recruiting any applicant. The work performance of Mr. Gujar can affect the performance of the factory. So, the HR should check Mr. Kumar Gujar’s work record once again.

How much importance should be given to communication in any job? How quickly could Mr. Nehal Singh 2. assimilate enough English to be effective?AnswerCommunication plays an important role in business world. However, for this profile, it is not necessary that the applicant should be fluent in English.Mr. Nehal Singh is originally from Punjab, but is fluent in Telgu and thus, seems to be a fast learner. So, he can easily learn English language to be effective in future.

Should the HR pass Mr. Nehal Singh because of his status as a recent migrant?3. AnswerThe HR cannot pass Mr. Nehal Singh only because he has recently transferred to Vijayawada from Punjab.

Should Mr. Raja get the job?4. AnswerMr. Raja is a good applicant. However, the job position doesn’t require any diploma holder or who has was a star performer at high school level.

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Case Study II

Employee PerformanceRaj Sharma has been employed for six months in the accounts section of a large manufacturing company, namedJ.P Company in Faridabad. You have been informed by his supervisor about his performance.

You are the HR manager responsible for training and development in J.P Company. The supervisor has evaluated the performance of all employees in the account section for six months. After the performance evaluation, the supervisor finds that Raj is not performing well, while other employees are performing well and average. The supervisor informs you that Raj is not performing well since he has joined the organisation. All other employees are meeting their targets and performing well. But there is no performance growth shown by Raj.

The Supervisor has discussed with Raj the performance that is expected from him. He has shown Raj the performance after he has joined the company. In spite of Raj being informed about his performance, there is no improvement. The Supervisor has now escalated this matter to you.

QuestionsCan you find out whether Raj’s performance is weak because of poor training or any other reason?1. If you find Raj has been inadequately trained, how do you go about introducing remedial training program?2. If he has been in the organisation for six months, what kind of remedial program would be best?3. Do you need to discuss it again with Raj?4.


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Case Study III

Company Example ABC Company had developed a training strategy for training its global training force. An important feature of the strategy was to create a master training plan for each year. The organisation’s strategic plans, objectives, and functional tactics gave a direction to this plan. Once an initial procedure was designed, it was then evaluated by the top management, different units, and training council. The input from these stakeholders would be summarised and transferred into a master training plan.

The designers of the training program had only one question in mind, “WHAT RESULTS DO WE WANT FROM SALESPEOPLE AFTER THE TRAINING PROGRAM IS OVER?” Thus, the answer to this question was the main training objective.

For the training content design, videos were prepared. The videos were produced in 3 to 6 months. The content in the videos included production plants, client’s offices, partner offices, suppliers, manufacturer’s location, and other locations.

The training material was used to train the sales people in following areas:Market information• Policies and procedures• Sales process• Product information•

The training material that was provided to the sales people included video training. The sales persons had to go through the entire training material, and then call a toll free number to give examination. Those, who passed the examination, were given job responsibilities. While others who failed, had to go through the training material and give the examination again. However, if a sales person fails in the exam once again, the reporting manager was notified about it.

QuestionsDo you think video is the most effective way to achieve training objectives?1. In today’s technological world, is video still the best way to deliver the training?2. What are the other training methods that ABC Company can add in their next training program?3. What role did cost of development cost of delivery, and other constraints play in the selection of video delivery 4. system?

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Bibiliography

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2010. • Human Resource Management-I Video Lecture Course, Safety, Health, Environment, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10034-Management.htm> [Accessed 21 September 2012].2010. • Human Resource Management-I Video Lecture Course, Total Quality Management, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10036-Management.htm> [Accessed 24 September 2012].2010. • Human Resource Management-I Video Lecture Course, Training and Development, [Video Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10032-Management.htm> [Accessed 21 September 2012].A moral principles framework for human resource management ethics • [pdf] Available at: <http://cf.linnbenton.edu/bcs/bm/gusdorm/upload/Moral%20Principles%20Framework.pdf> [Accessed 25 September 2012].Adamus, W., • A New Method of the Job Evaluation, [pdf] Available at: <http://www.creativedecisions.net/~rozann/0Proceedings/Final_Papers/106_Adamus_REV_FIN.pdf> [Accessed 27 October 2010].Allan Bandt, A., Haines, S• . G., 2004. Successful Strategic Human Resource Planning. Centre for Strategic Management.BenefitsofTrainingandDevelopmentforIndividualsandTeams,Organisations,andSociety• [Online] Available at: < http://www.owlnet.rice.edu/~antonvillado/courses/12a_psyc630001/Aguinis%20%26%20Kraiger%20 (2009)%20ARP.pdfnd Society> [Accessed 24 September 2012].Benyu, E., • Succession Planning. [Online] Available at: <http://www.authorstream.com/Presentation/ebenyu-492555- succession-planning/> [Accessed 27 October 2010].Bernardin, H. J., 2012. • Human Resource Management, 6th ed., McGraw-Hill/Irwin.Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. • A Review of Leadership Theory and Competency Frameworks.Code Practice 1. • Disciplinary and Grievance Procedures. [pdf]Available at: <http://www.acas.org.uk/media/pdf/9/5/ CP01_1.pdf> [Accessed 26 October 2010].Compensation Management • [Online] Available at: < http://www.citehr.com/68382-what-definition-compensation-management.html> [Accessed 24 September 2012].Compensation’s Role in Human Resource Strategy • [pdf] Available at: <http://www.shrm.org/Publications/Books/Documents/5_chapter3.pdf> [Accessed 24 September 2012].Dessler, G., 2007. • Human Resource Management, 11th ed., Prentice Hall. Disciplinary and Grievance Procedures • [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/documents/policies/disciplinary/Disciplinary-policy-grades-1to6.pdf> [Accessed 25 September 2012]Discuss the evolution of Human resource management by drawing References from the Hawthorne Studies• .[pdf] Available at: <http://www.respawngamingcafe.com/mba/Human%20Resource%20Management.pdf> [Accessed 28 September 2010]Effectivesandbenefitsofperformanceappraisal• . [Online] Available at: <http://www.articlesbase.com/human-resources-articles/effectivess-and-benefits-of-performance-appraisal-1534723.html> [Accessed 8 October 2010].Employee education, training and development • [Online] Available at: <http://www.accel-team.com/human_resources/hrm_07.html> [Accessed 24 September 2012].Evolution of Human Resource Management • [Online] Available at: http://www.articlesbase.com/training-articles/evolution-of-human-resource-management-1294285.html> [Accessed 14 September 2012].French, R., & Rumbles, S.,• Recruitment and Selection [pdf] Available at: <http://www.cipd.co.uk/NR/rdonlyres/01F95685-76C9-4C96-B291-3D5CD4DE1BE5/0/9781843982579_sc.pdf> [Accessed 21 September 2012].Guide on Staff Motivation • [pdf] Available at: <http://www.csb.gov.hk/hkgcsb/hrm/pdf-file/e-motivation.pdf> [Accessed 25 September 2012]

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Gusdorf, L. M.,• Recruitment and Selection: Hiring the Right Person [pdf] Available at: <http://www.shrm.org/education/hreducation/documents/09-0152%20gusdorf_instructor_notes.pdf> [Accessed 21 September 2012]HUMAN RESOURCE MANAGEMENT • [pdf] Available at: <http://www.csb.gov.hk/english/publication/files/e-hrmguide.pdf > [Accessed 24 September 2012].HUMAN RESOURCE PLANNING Reference Tools • [pdf] Available at: <http://www.exec.gov.nl.ca/exec/pss/publications/HR_Resource_Binder.pdf> [Accessed 18 September 2012]Human Resources Job Description & Job Evaluation Procedures• [pdf] Available at: <http://www.mcc.edu/hr_protected/pdf/Job_Evaluation_Procedure_For_Supervisors.pdf> [Accessed 24 September 2012]Inside Leadership • [pdf] Available at: <http://www.hrmrecruit.com/files/New%20PDFs/JL%20Inside%20Leadership%20-%20Preparation%20makes%20Interim%20Perfection%20July2012.pdf> [Accessed 25 September 2012].Jay, 2009. • Morale and Motivation Theory of Management. [Online] Available at: <http://mymbaclasses.blogspot.com/2009/03/morale-and-motivation-theory-of.html>, [Accessed 13 October 2010].Kumar, A. & Sharma, R. • Principles of Business Management. Managers’ Guide:Grievance Investigations • [pdf] Available at: <http://www.kent.ac.uk/hr-staffinformation/documents/policies/grievance/Grievance%20Guidance%20for%20Managers%20Grades%201-6.pdf> [Accessed 25 September 2012].Managing Through Change • [pdf] Available at: <http://www.hr.ucdavis.edu/worklife-wellness/ASAP/mgrstoolkit/Managing%20Change.pdf> [Accessed 25 September 2012].McNamara, C. • All About Human Resources and Talent Management [Online] Available at: <http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm> [Accessed 28 September 2010].McNamara, C., • Evaluating training and Results. Available at: <http://managementhelp.org/trng_dev/evaluate/evaluate.htm>. [Accessed 7 October 2010].Mishra, R., • Art of Facing Interviews- 10 Simple rules of Interview. Available: <http://www.himarticles.com/ Articles/PD/Facing-interviews.htm> [Accessed 5 October 2010].Motivation and its Theories,• [pdf] Available at: <http://management consulting courses.com/ Lesson20Motivation&ItsTheories.pdf> [Accessed 26 October 2010].Performance Management • [Online] Available at: <http://www.shrm.org/about/foundation/research/documents/1104pulakos.pdf > [Accessed 24 September 2012].Performance Management and Appraisal • [pdf] Available at: <http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/027375307X.pdf > [Accessed 24 September 2012].Rao, P. S. 2010. • Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.References for business• . [Online] Available at: <http://www.Referencesforbusiness.com/index.html> [Accessed 7 October 2010].Shahid, K.V. & Chavakkad, • A Project on Employee Motivation. [Online] Available at: <http://fliiby.com/file/578319/36oqzc7td6.html> [Accessed 26 October 2010].Sharma, A., 2006. • Historical Development of HRM in India Final, [Online] Available at: <http://www.slideshare.net/rajeevgupta/historial-development-of-hrm-in-india-final> [Accessed 28 September 2010].Ten Hurdles Faced by the HR in India • [Online] Available at:-<http://www.chillibreeze.com/articles_various/hurdles-faced-by-hr-1211.asp> [Accessed 17 September 2012].The Role of Human Resource Development and Management • [pdf] Available at: <http://www2.aau.org/wghe/gender/toolkit/Toolkit-module3.pdf> [Accessed 18 September 2012].Training and Developing Employees• [pdf] Available at: <http://www.sagepub.com/upm-data/26858_7.pdf> [Accessed 24 September 2012].WHAT IS LEADERSHIP IN HR? • [pdf] Available at: <http://xa.yimg.com/kq/groups/3598466/685835961/name/article+-+leadership+in+HR+-+Anil+Kaushik.pdf> [Accessed 25 September 2012]


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Recommended ReadingAshwatappa, K., • Human Resource Management, 5th ed., TMH. Aswathappa, K. • International Human Resource Management, Sadhna, Das, McGraw Hill Companies.Beardwell, L. & Holden, L., • Human Resource Management, Jacrnillan, Delhi.Bohlander, et al, 2004. • Managing Human Resources, 13th ed., Cengage LearningByars, L. & Rue, L., 2010. • Human Resource Management, 10th ed., McGraw-Hill/Irwin.Chhabra, T. N. • Human Resource Management, Dhanpat Rai & Co., Delhi.De Cenzo D.A & Robin, S.P.,1997. • Personnel /Human Resource Management. McGraw Hill.DeCenzo, D. A. & Robbins, P. R., 2004. • Human Resource Management, 8th ed., John Wiley and Sons LtdDessler, G., • Human Resource Management, 10th ed., Person Publications. Evans, P. & Pucik, E., • The Global Challenge- Framework for International Human Resource Management, Tata McGraw-Hill Irwin.Fisher, C., 2005. • Human Resource Management, 5th ed., Shaw – Wiley / Biztantra.French, W., 2006. • Human Resources Management, 6th ed., South-Western College. French,V., • The Personnel Management Process. Houghton, Boston.Lepak, D. & Gowa, M., 2008. • Human Resource Management, 1st ed., Prentice Hall.Mathis, R. L. & Human, J. H., 2007. • Human Resource Management, 12th ed., South-Western College Pub.Parweek, U. & Rao T. V., 1999. • Designing and Managing Human Resource Systems, Anmol Publishers.Patnayak, B., 2005. • Human Resource Management, 3rd ed., PHI publications. Singh, K. & Duggal, B. R. • Human Resource Management, Sun India Publications, Delhi.Stewart, G. L. & Kenneth, G. B., 2010. • Human Resource Management, 2nd ed., Wiley.Suri, R. K. & Chhabra, T.N. • Industrial Psychology, Sun India Publications, New Delhi.Tayeb, M. H., 2005. • International Human Resource Management, Oxford University Press.Venkata Ratnam C. S. & Srivatsava, B. K., • Personnel Management and Human Resources, Tata Mc-Graw Hill.Verma, P., • Personnel Management in Indian Organisations, Oxford & IBM Publishing Co. Ltd.

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Self Assessment Answers

Chapter Ia1. a2. d3. c4. b5. c6. a7. b8. d9. a10.

Chapter IIb1. a2. d3. a4. a5. a6. a7. b8. a9. b10.

Chapter IIIb1. a2. a3. b4. a5. a6. a7. a8. d9. a10.

Chapter IVc1. a2. a3. c4. a5. c6. b7. b8. a9. a10.


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Chapter Va1. b2. a3. b4. a5. b6. b7. a8. a9. a10.

Chapter VIb1. a2. a3. c4. a5. a6. b7. a8. a9. c10.

Chapter VIIa1. a2. c3. c4. b5. a6. c7. a8. a9. c10.

Chapter VIIIa1. b2. a3. a4. a5. c6. a7. a8. a9. d10.

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Chapter IXc1. c2. a3. a4. b5. d6. a7. a8. d9. a10.

Chapter Xa1. c2. a3. b4. a5. a6. a7. a8. a9. d10.

Chapter XIa1. c2. a3. d4. b5. b6. d7. a8. a9. b10.

Chapter XIIa1. a2. b3. a4. a5. c6. b7. d8. c9. a10.


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Chapter XIIIb1. a2. b3. a4. b5. a6. b7. a8. c9. a10.