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BHM 301 Class Notes-1
BHM 301 Class Notes-1
1. OVERVIEW OF HRM
Human Resource management is the most happening function as of now. This is so because people
offer competitive advantage to a firm and managing people is the domain of HRM. An organization
enjoys competitive advantage when it is the only one which can offer a product at a price and at
quality while its competitors cannot do so.
Fast changes are taking placein the business environment. An organization must have the ability to
absorb these changes at a fast rate than in the past, not simply to prove its competency alone but to
justify its existence in the dynamic business world as well. All organizations, whether large or small
must ensure themselves that they have the competent people capable of accepting this challenge.
Human resource management is a relatively modern concept, which involves arrange of ideas and
practices in managing people. Human resource is the most valuable resource in any organization
because it can function only through people.
Human Resource Management has come to be recognized as an inherent part of management, which
is concerned with the human resources of an organization. Its objective is the maintenance of better
human relations in the organization by the development, application and evaluation of policies,
procedures and programs relating to human resources to optimize their contribution towards the
realization of organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of people. It is an
integral but distinctive part of management, concerned with people at work and their relationships
within the enterprise. HRM helps in attaining maximum individual development, desirable working
relationship between employees and employers, employees and employees, and effective modeling of
human resources as contrasted with physical resources. It is the recruitment, selection, development,
utilization, compensation and motivation of human resources by the organization.
CONCEPT OF HUMAN RESOURCE MANAGEMENT
What exactly is human resource management? Many people find HRM to be an unclear and strange
concept. ‘This is not simply because of having variety of meanings to this term. This confusion is
mainly due to the different interpretations found in articles and books about human resource
management.
HRM is the philosophy of people management based on the belief that human resources are
extremely important for sustained business success. An organization acquires competitive advantage
by using its people effectively and utilizing their expertise to meet clearly defined objectives. HRM is
aimed at recruiting capable, flexible and committed people. Managing and rewarding their
performance and developing key competencies.
Meaning and Definition
Human Resource Management is the process of recruitment, selection of employee, providing
proper orientation and induction, providing proper training and the developing skills, assessment of
employee (performance of appraisal), providing proper compensation and benefits, motivating,
maintaining proper relations with labor and with trade unions, maintaining employee’s safety, welfare
and health by complying with labor laws of concern state or country.
Many great scholars had defined human resource management in different ways and with different
words, but the core meaning of the human resource management deals with how to manage people or
employees in the organization.
Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement,
development, compensation, integration, maintenance and separation of human resources to the end
that individual, organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined human resources –
personal management as “that part of management which is concerned with people at work and with
their relationship within an enterprise. Its aim is to bring together and develop into an effective
organization of the men and women who make up enterprise and having regard for the well – being
of the individuals and of working groups, to enable them to make their best contribution to its
success”.
Scope of Human Resource Management
1. Personnel Aspect
Human Resource Planning – It is the process by which the organization identifies the number
of jobs vacant.
Job Analysis and Job Design – Job analysis is the systematic process for gathering,
documenting, and analyzing data about the work required for a job. Job analysis is the
procedure for identifying those duties or behavior that defines a job.
Orientation and Induction – Making the selected candidate informed about the organization’s
background, culture, values, and work ethics.
Training and Development – Training is provided to both new and existing employees to
improve their performance.
3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth functioning of the organisation. It also
covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and
dispute settlement.
Human Resource Management can help an organization to achieve to its objective more
efficiently and effectively in the followingways:
(a) Procurement of required talents through recruitment, selection, placement, inducting,
training, compensation and promotion policies.
(b) Secures co-operation of all employee of the organization for achieving goals.
(c) Proper utilization of human resources for the success of the enterprise.
(d) Ensure a future team of efficient ancompetent workers required for the organization.
2. Professional Importance
Professional competency among employees can be achieved through the following ways.
(a) Human resource management provides maximum opportunities to employees for their
personnel development.
(b) Providing healthy relationship among employees
(c) Proper allocation of work among employees.
(d) Providing training facilities for the individual development of employees.
3. Social Importance
HRM is important in social perspective also. It includes the following aspects:
(a) Human resource management enhances the dignity of labour.
(b) Provides suitable job to suitable person and it will help to satisfy the psychological and
social satisfaction of employees.
(c) Helps to provide reasonable compensation to workers, which leads them to have a good
standard of living.
(d) Helps to maintain a balance between jobs and job seekers in terms of numbers,
qualification, aptitude etc.
(e) Takes health and safety measures which ensures physical and mental health of the
employees.
4. National Importance
Effective management of human resources will speed up the economic growth of nation. This
in turn leads to better standard of living and more job opportunities.
Human Resource Management: Objectives
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings.Toidentify and satisfy the needs of individuals.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee’s job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee’s capabilities to perform the present job.
• To equip the employees with precision and clarity in transactions of business.
• To inculcate the sense of team spirit, team work and inter-team collaboration.
Human Resource Activities
In order to achieve the above objectives, Human Resource Management undertakes the
following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing incentives.
13. Reviewing and auditing manpower management in the organization
14. Potential Appraisal Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working Life
Functions
Human Resource Management Functions:
Managerial, Operative and Advisory Function
Some of the major functions of human resource management are as follows: 1. Managerial Functions
2. Operative Functions 3. Advisory Functions.
Human Resource or Personnel Department is established in most of the organizations, under the
charge of an executive known as Human Resource/Personnel Manager. This department plays an
important role in the efficient management of human resources.
The personnel department gives assistance and provides service to all other departments on personnel
matters. Though personnel or human resource manager is a staff officer in relation to other
departments of the enterprise, he has a line authority to get orders executed within his department.
(i) Managerial,
(ii) Operative and
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must perform the
basic managerial functions of planning, organising, directing and controlling in relation to his
department.
There functions are briefly discussed below:
1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is necessary to
determine the goals of the organisation and lay down policies and procedures to reach the goals. For a
human resource manager, planning means the determination of personnel programs that will
contribute to the goals of the enterprise, i.e., anticipating vacancies, planning job requirements, job
descriptions and determination of the sources of recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is made. This step requires knowledge to
both labour market conditions and the strategic posture and goals of the organisation.
Secondly, net shortage and excess of personnel by job category are projected for a specific time
horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of particular categories of
human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and programs to
reach them, he must design and develop organisation structure to carry out the various operations.
The organization structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities involved;
(iv) Co-ordination of activities of different individuals.
3. Directing:
The plans are to be pure into effect by people. But how smoothly the plans are implemented depends
on the motivation of people. The direction function of the personnel manager involves encouraging
people to work willingly and effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to accomplish the
personnel programs. The personnel manager can motivate the employees in an organisation through
career planning, salary administration, ensuring employee morale, developing cordial relationships
and provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. The personnel manager must
have the ability to identify the needs of employees and the means and methods of satisfy those needs.
Motivation is a continuous process as new needs and expectations emerge among employees when
old ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans, which in turn
have been formulated on the basis of the objectives of the organisation. Thus, controlling completes
the cycle and leads back to planning. It involves the observation and comparison of results with the
standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of the personnel
department in terms of various operative functions. It involves performance appraisal, critical
examination of personnel records and statistics and personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation.
The operative functions of human resource or personnel department are discussed below:
1.Employment:
The first operative function of the human resource of personnel department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organisation. This
involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements both in
terms of number and quality of the personnel. Recruitment and selection cover the sources of supply
of labour and the devices designed to select the right type of people for various jobs. Induction and
placement of personnel for their better performance also come under the employment or procurement
function.
2.Development:
Training and development of personnel is a follow up of the employment function. It is a duty of
management to train each employee property to develop technical skills for the job for which he has
been employed and also to develop him for the higher jobs in the organisation. Proper development of
personnel is necessary to increase their skills in doing their jobs and in satisfying their growth need.
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For this purpose, the personnel departments will device appropriate training programs. There are
several on- the-job and off-the-job methods available for training purposes. A good training program
should include a mixture of both types of methods. It is important to point out that personnel
department arranges for training not only of new employees but also of old employees to update their
knowledge in the use of latest techniques.
3.Compensation:
This function is concerned with the determination of adequate and equitable remuneration of the
employees in the organisation of their contribution to the organisational goals. The personnel can be
compensated both in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their basic
needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the organisation
to pay, wage level afforded by competitors etc. For fixing the wage levels, the personnel department
can make use of certain techniques like job evaluation and performance appraisal.
4.Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided with good
working, conditions so that they may like their work and workplace and maintain their efficiency.
Working conditions certainly influence the motivation and morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The personnel
department also provides for various welfare services which relate to the physical and social well-
being of the employees. These may include provision of cafeteria, rest rooms, counseling, group
insurance, education for children of employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organisational goals as much as they can. This happens
because employees are not adequately motivated. The human resource manager helps the various
departmental managers to design a system of financial and non-financial rewards to motivate the
employees.
6.Personnel Records:
The human resource or personnel department maintains the records of the employees working in the
enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It also
preserves many other records relating to the behaviour of personnel like absenteeism and labour
turnover and the personnel programs and policies of the organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly discharged by the
human resource manager. The human resource manager can help in collective bargaining, joint
consultation and settlement of disputes, if the need arises. This is because of the fact that he is in
possession of full information relating to personnel and has the working knowledge of various labour
enactments.
The human resource manager can do a great deal in maintaining industrial peace in the organisation
as he is deeply associated with various committees on discipline, labour welfare, safety, grievance,
etc. He helps in laying down the grievance procedure to redress the grievances of the employees. He
also gives authentic information to the trade union leaders and conveys their views on various labour
problems to the top management.
8. Separation:
Since the first function of human resource management is to procure the employees, it is logical that
the last should be the separation and return of that person to society. Most people do not die on the
job. The organisation is responsible for meeting certain requirements of due process in separation, as
well as assuring that the returned person is in as good shape as possible. The personnel manager has
to ensure the release of retirement benefits to the retiring personnel in time.
3. Advisory Functions:
Human resource manager has specialized education and training in managing human resources. He is
an expert in his area and so can give advice on matters relating to human resources of the
organization.
He offers his advice to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation and evaluation of personnel programs,
policies and procedures. He also gives advice for achieving and maintaining good human relations
and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various departments on matters such as manpower
planning, job analysis and design, recruitment and selection, placement, training, performance
appraisal, etc.
Personnel Management vs. Human Resource Management
Both the terms refer to the one and the same function of the management and that is managing the
people at work. However, Human Resource Management is mainly focused on best utilizing the man
power by understanding their strength and weaknesses and engaging them in different occupations so
that their productivity can be increased. Therefore, training and development and employee
engagements are part of it. Personnel Management, on the other hand, is mainly concerned with
maintaining good employee- employer relationship and activities connected with it. Therefore,
Personnel Management mainly works around Industrial/ Employee/ Labour Relations and activities
connected with grievance handling, negotiations, enforcement of labour statute, looking after welfare
of employees and so on.
Personnel Management is thus basically an administrative record-keeping function, at the operational
level. Personnel Management attempts to maintain fair terms and conditions of employment, while at
the same time, efficiently managing personnel activities for individual departments etc. It is assumed
that the outcomes from providing justice and achieving efficiency in the management of personnel
activities will result ultimately in achieving organizational success.
Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management. However,
there are some differences in the following matters.
1. Personnel management is a traditional approach of managing people in the organization. Human
resource management is a modern approach of managing people and their strengths in the
organization.
2. Personnel management focuses on personnel administration, employee welfare and labor relation.
Human resource management focuses on acquisition, development, motivation and maintenance of
human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human resource
management assumes people as an important and valuable resource for achieving desired output.
4. Under personnel management, personnel function is undertaken for employee's satisfaction. Under
human resource management, administrative function is undertaken for goal achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under human
resource management, job design function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with less training and development
opportunities. Under human resource management, employees are provided with more training and
development opportunities.
7. In personnel management, decisions are made by the top management as per the rules and
regulation of the organization. In human resource management, decisions are made collectively after
considering employee's participation, authority, decentralization, competitive environment etc.
8. Personnel management focuses on increased production and satisfied employees. Human resource
management focuses on effectiveness, culture, productivity and employee's participation.
9. Personnel management is concerned with personnel manager. Human resource management is
concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a strategic function.
2. MANPOWER PLANNING/ HUMAN RESOURCE PLANNING
Human resource is the most important asset of an organization. Human resources planning are the
important managerial function. It ensures the right type of people, in the right number, at the right
time and place, who are trained and motivated to do the right kind of work at the right time, there is
generally a shortage of suitable persons.
The enterprise will estimate its manpower requirements and then find out the sources from which the
needs will be met. If required manpower is not available then the work will suffer. Developing
countries are suffering from the shortage of trained managers. Job opportunities are available in these
countries but properly trained personnel are not available. These countries try to import trained skill
from other countries.
In order to cope up with the human resource requirements, an enterprise will have to plan in advance
its needs and the sources. The terms human resource planning and manpower planning are generally
used interchangeably. Human resource planning is not a substitute for manpower planning. Rather the
latter is a part of the former i.e., manpower planning is integrated with human resource planning.
Definition Human Resource Planning: of human resource planning
Important definitions
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organization should make from its current manpower position to its desired
manpower position.
Through planning a management strives to have the right number and the right kind of people at the
right places, at the right time to do things which result in both the organization and the individual
receiving the maximum long range benefit.”
Dale S. Beach has defined it as “a process of determining and assuring that the organization will have
an adequate number of qualified persons available at the proper times, performing jobs which meet
the needs of the enterprise and which provide satisfaction for the individuals involved.”
In the words of Leon C. Megginson, human resource planning is “an integration approach to
performing the planning aspects of the personnel function in order to have a sufficient supply of
adequately developed and motivated people to perform the duties and tasks required to meet
organizational objectives and satisfy the individual’s needs and goals of organizational members.”
On the analysis of above definitions, human resource planning may be viewed as foreseeing the
human resource requirements of an organization and the future supply of human resources and
making necessary adjustments between these two and organization plans, and foreseeing the
possibility of developing the supply of human resources in order to match it with requirements by
introducing necessary changes in the functions of human resource management.
Here, human resource means skill, knowledge, values, ability, commitment, motivation etc., in
addition to the number of employees. Though accomplishment of organizational objectives and goals
is the primary concern of the human resource planning, concern for the aspirations of the people and
their well-being has equal importance in it. In fact, the human resources planning must result in
humanization of work environment.
Features of Human Resource Planning:
The following features of human resource planning can be derived:
1. Well Defined Objectives:
Enterprise’s objectives and goals in its strategic planning and operating planning may form the
objectives of human resource planning. Human resource needs are planned on the basis of company’s
goals. Besides, human resource planning has its own objectives like developing human resources,
updating technical expertise, career planning of individual executives and people, ensuring better
commitment of people and so on.
2. Determining Human Resource Needs:
Human resource plan must incorporate the human resource needs of the enterprise. The thinking will
have to be done in advance so that the persons are available at a time when they are required. For this
purpose, an enterprise will have to undertake recruiting, selecting and training process also.
3. Keeping Manpower Inventory:
It includes the inventory of present manpower in the organization. The executive should know the
persons who will be available to him for undertaking higher responsibilities in the near future.
4. Adjusting Demand and Supply:
Manpower needs have to be planned well in advance as suitable persons are available in future. If
sufficient persons will not be available in future then efforts should be .made to start recruitment
process well in advance. The demand and supply of personnel should be planned in advance.
5. Creating Proper Work Environment:
Besides estimating and employing personnel, human resource planning also ensures that working
conditions are created. Employees should like to work in the organisation and they should get proper
job satisfaction
2. HUMAN RESOURCE RESOURCING
The ever-shifting business environment presents employers with a complex challenge: how to meet current
staffing needs while preparing for strategic future needs. The brunt of meeting this challenge falls on human
resource departments in large organizations and on managers in small businesses. Human Resource
Resourcing, a method of addressing this challenge, includes a set of interrelated activities that focuses on
the recruitment and proper deployment of staff. The end Human Resource Planning marks the beginning of
a set of actions that include; recruitment, selection, induction and placement.
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the development and maintenance of adequate man- power resources. This is the first stage of the
process of selection and is completed with placement.
Definition:
According to Edwin B. Flippo, “It is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation.” He further elaborates it,
terming it both negative and positive.
He says, “It is often termed positive in that it stimulates people to apply for jobs, to increase the
hiring ratio, i.e. the number of applicants for a job. Selection, on the other hand, tends to be negative
because it rejects a good number of those who apply, leaving only the best to be hired. ”
In the words of Dale Yoder, Recruitment is the process to “discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force.”
Kempner writes, “Recruitment forms the first stage in the process which continues with selection and
ceases with the placement of the candidates.”
In personnel recruitment, management tries to do far more than merely fill job openings. As a routine
the formula for personnel recruitment would be simple i.e., just fill the job with any applicant who
comes along.
Objectives of Recruitment
The objectives of recruitment are:
i. To attract people with multi-dimensional skills and experiences that suit the present and
future organizational strategies,
ii. To induct outsiders with a new perspective to lead the company,
iii. To infuse fresh blood at all levels of the organization,
iv. To develop an organizational culture that attracts competent people to the company,
v. To search or head hunt/head pouch people whose skills fit the company’s values,
vi. To devise methodologies for assessing psychological traits,
vii. To seek out non-conventional development grounds of talent,
viii. To search for talent globally and not just within the company,
ix. To design entry pay that competes on quality but not on quantum,
x. To anticipate and find people for positions that does not exist yet.
Sources of Recruitment of Employees: Internal and External Sources |
Recruitment Sources of Recruitment of Employees: Internal and External
Sources
The searching of suitable candidates and informing them about the openings in the enterprise is the
most important aspect of recruitment process.
The candidates may be available inside or outside the organisation. Basically, there are two sources of
recruitment i.e., internal and external sources
.
(A) Internal Sources:
Best employees can be found within the organization when a vacancy arises in the organisation, it
may be given to an employee who is already on the pay-roll. Internal sources include promotion,
transfer and in certain cases demotion. When a higher post is given to a deserving employee, it
motivates all other employees of the organisation to work hard. The employees can be informed of
such a vacancy by internal advertisement.
Methods of Internal Sources:
The Internal Sources Are Given Below:
1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any
change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.
2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities
and more pay. The higher positions falling vacant may be filled up from within the organisation. A
promotion does not increase the number of persons in the organisation.
A person going to get a higher position will vacate his present position. Promotion will motivate
employees to improve their performance so that they can also get promotion.
3. Present Employees:
The present employees of a concern are informed about likely vacant positions. The employees
recommend their relations or persons intimately known to them. Management is relieved of looking
out prospective candidates.
The persons recommended by the employees may be generally suitable for the jobs because they
know the requirements of various positions. The existing employees take full responsibility of those
recommended by them and also ensure of their proper behaviour and performance.
Advantages of Internal Sources:
The Following are The Advantages of Internal Sources:
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in increasing the
morale of all employees. Generally every employee expects promotion to a higher post carrying more
status and pay (if he fulfills the other requirements).
2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors in selection since every
company maintains complete record of its employees and can judge them in a better manner.
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of chances of advancement.
4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing employees are well tried and
can be relied upon.
5. Economy in Training Costs:
The existing employees are fully aware of the operating procedures and policies of the organisation.
The existing employees require little training and it brings economy in training costs.
6. Self-Development:
It encourages self-development among the employees as they can look forward to occupy higher
posts.
Disadvantages of Internal Sources:
(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts
may not be available in the organisation.
(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be
followed.
(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may not be
really capable.
In spite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It
may lead to nepotism and favoritism. The employees may be employed on the basis of their
recommendation and not suitability.
(B) External Sources:
All organisations have to use external sources for recruitment to higher positions when existing
employees are not suitable. More persons are needed when expansions are undertaken.
The external sources are discussed below:
The different methods are
1. Advertisement:
It is a method of recruitment frequently used for skilled workers, clerical and higher staff.
Advertisement can be given in newspapers and professional journals. These advertisements attract
applicants in large number of highly variable quality.
Preparing good advertisement is a specialized task. If a company wants to conceal its name, a ‘blind
advertisement’ may be given asking the applicants to apply to Post Bag or Box Number or to some
advertising agency.
2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled,
clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made
obligatory for the business concerns to notify their vacancies to the employment exchange. In the
past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are
brought into contact by the employment exchanges.
3. Schools, Colleges and Universities:
Direct recruitment from educational institutions for certain jobs (i.e. placement) which require
technical or professional qualification has become a common practice. A close liaison between the
company and educational institutions helps in getting suitable candidates. The students are spotted
during the course of their studies. Junior level executives or managerial trainees may be recruited in
this way.
4. Recommendation of Existing Employees:
The present employees know both the company and the candidate being recommended. Hence some
companies encourage their existing employees to assist them in getting applications from persons
who are known to them.
In certain cases rewards may also be given if candidates recommended by them are actually selected
by the company. If recommendation leads to favouritism, it will impair the morale of employees.
5. Factory Gates:
Certain workers present themselves at the factory gate every day for employment. This method of
recruitment is very popular in India for unskilled or semi-skilled labour. The desirable candidates are
selected by the first line supervisors. The major disadvantage of this system is that the person selected
may not be suitable for the vacancy.
6. Casual Callers:
Those personnel who casually come to the company for employment may also be considered for the
vacant post. It is most economical method of recruitment. In the advanced countries, this method of
recruitment is very popular.
7. Central Application File:
A file of past applicants who were not selected earlier may be maintained. In order to keep the file
alive, applications in the files must be checked at periodical intervals.
8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is
instability of employment) all recruits usually come from unions. It is advantageous from the
management point of view because it saves expenses of recruitment. However, in other industries,
unions may be asked to recommend candidates either as a goodwill gesture or as a courtesy towards
the union.
9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in
brick klin industry. The contractors keep themselves in touch with the labour and bring the workers at
the places where they are required. They get commission for the number of persons supplied by them.
10. Former Employees:
In case employees have been laid off or have left the factory at their own, they may be taken back if
they are interested in joining the concern (provided their record is good).
11. Other Sources:
Apart from these major sources of external recruitment, there are certain other sources which are
exploited by companies from time to time. These include special lectures delivered by recruiter in
different institutions, though apparently these lectures do not pertain to recruitment directly.
Then there are video films which are sent to various concerns and institutions so as to show the
history and development of the company. These films present the story of company to various
audiences, thus creating interest in them.
Various firms organise trade shows which attract many prospective employees. Many a time
advertisements may be made for a special class of work force (say married ladies) who worked prior
to their marriage.
These ladies can also prove to be very good source of work force. Similarly there is the labour market
consisting of physically handicapped. Visits to other companies also help in finding new sources of
recruitment.
Merits of External Sources:
1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from within. External sources
do give a wide choice to the management. A large number of applicants may be willing to join the
organisation. They will also be suitable as per the requirements of skill, training and education.
2. Brings New Ideas:
The selection of persons from outside sources will have the benefit of new ideas. The persons having
experience in other concerns will be able to suggest new things and methods. This will keep the
organisation in a competitive position.
3. Economical:
This method of recruitment can prove to be economical because new employees are already trained
and experienced and do not require much training for the jobs.
Demerits of External Sources:
1. Demoralization:
When new person from outside joins the organization, present employees may feel demoralized
because these positions might have gone to them. There can be a heart burning among old employees.
Some employees may even leave the enterprise and go for better avenues in other concerns.
2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that their right has been
snatched away by them. This problem will be acute especially when persons for higher positions are
recruited from outside.
3. Expensive:
The process of recruiting from outside is very expensive. It starts with inserting costly advertisements
in the media and then arranging written tests and conducting interviews. In spite of all this if suitable
persons are not available, then the whole process will have to be repeated.
4. Problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust in the new environment.
They may not temperamentally adjust with the new persons. In such cases either the persons may
leave themselves or management may have to replace them. These things have adverse effect on the
working of the organisation.
Suitability of External Sources of Recruitment:
External Sources of Recruitment are Suitable for The Following Reasons:
(i) The required qualities such as will, skill, talent, knowledge etc., are available from external
sources.
(ii) It can help in bringing new ideas, better techniques and improved methods to the organization.
(iii) The selection of candidates will be without preconceived notions or reservations.
(iv) The cost of employees will be minimum because candidates selected in this method will be
placed in the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest of the organization.
Modern Recruiting Trends in 2016
A significant shift toward finding talent becomes easier but selling talent becomes more difficult
Literally, for centuries, sourcing or finding talent has been extremely difficult. However with the
growth of the Internet and social media, it is now possible to find almost anyone who is qualified to
do a job. So now the most difficult phase of recruiting will become the “selling aspects.” Top
candidates will be harder to sell because the drop in unemployment rate and the creation of more jobs
means more choices and competing offers. In order to be successful, recruiters will have to develop
much stronger selling skills in the areas of convincing prospects to apply, to come to multiple
interviews and to accept your offers.
Improve the selling capability of your job descriptions
Why being aware of this trend is critical — many candidates who were initially interested will turn
away after reading dull and poorly written job descriptions. They demand an exciting job and they
assume that the dull job description is accurate. Misleading job descriptions can also increase new
hire turnover when they realize that the job described in the outdated description is completely
different than the job that they discover on the first day.
SELECTION:
Selection is a process of measurement, decision making and evaluation. The goal of a selection
system is to bring in to the organisation individuals who will perform well on the job. To have an
accurate and fair selection system, an organisation must use reliable and valid measures of job
applicant characteristics. In addition, a good selection system must include a means of combining
information about applicant characteristics in a rational way and producing correct hire and no-hire
decisions. A good personnel selection system should add to the overall effectiveness of the
organisation.
Organisations vary in the complexity of their selection system. Some merely skim applications blanks
and conduct brief, informal interviews, whereas others take to resting, repeated interviewing, and
background checks and so on. Although the latter system is more costly per applicant, many benefits
are realised from careful, thorough selection. An organisation needs to have members who are both
skilled and motivated to perform their roles. Either such members can be identified by careful
selection or attempts can be made to develop them after hire by extensive training. Thus cursory
selection may greatly increase training and monitoring costs, whereas spending more on the selection
process will reduce these post-hire expenses.
SELECTION PROCEDURE
Selection procedure employs several methods of collecting information about the candidate’s
qualifications, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and
the like for judging whether a given applicant is suitable or not for the job. Therefore, the selection
procedure is not a single act but is essentially a series of methods or stages by which different types
of information can be secured through various selection techniques. At each step, facts may come to
light which are useful for comparison with the job requirement and employee specifications.
Steps in Scientific Selection Process
(i) Job Analysis, (ii) Recruitment. (iii) Application Form, (iv) Written Examination, (v) Preliminary
Interview (iv) Business Games (vii) Tests. (viii) Final Interview. (ix) Medical Examination (x)
Reference Checks. (xi) Line Manager’s Decision. (xii) Job offer (xiii) Employment.
Job Analysis: Job analysis is the basis of selecting the right candidate. Every organization should
finalize the job analysis, job description, job specification and employee specifications before
proceeding to the next stop of selection.
Human Resource Plan: Every company plans for the required number of and kind of employees for
a future date. This is the basis for recruitment function.
Recruitment: Recruitment refers to the process of searching for prospective employees and
stimulating then to apply for jobs in an organization. It is the basis for the remaining techniques of the
selection and the latter varies depending upon the former. It develops the applicants’ pool.
Development of Bases for Selection: The Company has to select the appropriate candidates from the
applicants’ pool. The company develops or borrows the appropriate bases/techniques for screening
the candidates in order to select the appropriate candidates for the jobs.
Application Form: Application Form is also known as application blank. The technique of
application bank is traditional and widely accepted for securing information from the prospective
candidates. It can also be used as a device to screen the candidates at the preliminary level. Many
companies formulate their own style of application forms depending upon the requirement of
information based on the size of the company, nature of business activities, type and level f the job
etc. Information is generally required on the following items in the application forms: Personal
background information, Educational attainments, Work experiences, Salary ,Personal details and
References.
Written Examination: The organizations have to conduct written examination for the qualified
candidates after they are screened on the basis of the application blanks so as to measure the
candidate’s ability in arithmetical calculations, to know the candidates’ attitude towards the job, to
measure the candidates’ aptitude, reasoning, knowledge in various disciplines, general knowledge
and English language.
Preliminary Interview: The preliminary interview is to solicit necessary information from the
prospective applicants and to assess the applicant’s suitability to the job. This may be conducted by
an assistant in the personnel department. The information thus provided by the candidate may be
related to the job or personal specifications regarding education, experience, salary expected, aptitude
towards the job, age, physical appearance and other physical requirements etc. Thus, preliminary
interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a
candidate satisfied the job requirements regarding most of the areas, he may be selected for further
process. Preliminary interviews are short and known as stand-up interviews or sizing-up of the
applicants or screening interviews. However, certain required amount of care is to be taken to ensure
that the desirable workers are not eliminated. This interview is also useful to provide the basic
information about the company to the candidate.
Business Games: Business games are widely used as a selection technique for selecting management
trainees, executive trainees and managerial personnel at junior, middle and top management
positions. Business games help to evaluate the applicants in the areas of decision-making identifying
the potentialities, handling the situations, problem-solving skills, human relations skills etc.
Participants are placed in a hypothetical work situation and are required to play the role situations in
the game. The hypothesis is that the most successful candidate in the game will be the most
successful one on the job.
Group Discussion: The technique of group discussion is used in order to secure further information
regarding the suitability of the candidate for the job. Group discussion is a method where groups of
the successful applicants are brought around a conference table and are asked to discuss either a case
study or a subject-matter. The candidates in the group are required to analyses, discuss, find
alternative solutions and select the sound solution. A selection panel then observes the candidates in
the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based
on the given information and using common sense, keenly observing the discussion of others,
clarifying controversial issues, influencing others, speaking effectively, concealing and mediating
arguments among the participants and summarizing or concluding apply. The selection panel, based
on its observation, judges the candidates’ skill and ability and ranks them according to their merit. In
some cases, the selection panel may also ask the candidates to write the summary of the group
discussion in order to know the candidates’ writing ability as well
.Test: Psychological tests play a vital role in employee selection. A psychological test is essentially
an objective and standardized measure of sample of behavior from which inferences about future
behavior and performance of the candidate can be drawn. Objectivity of tests refers to the validity and
reliability of the instruments in measuring the ability of the individuals. Objectivity provides equal
opportunity to all the job seekers without any discrimination against sex, caste etc. standardization of
test refers to uniformity of the total behavior of the prospective employee on the job.
Types of Test: Tests are classified into six types. They are Aptitude tests, Achievement tests ,
Situational tests, Interest tests, Personality tests and Multidimensional testing.
Aptitude tests: These tests measure whether an individual has the capacity or latent ability to learn a
given job if given adequate training. Aptitudes can be divided into general and mental ability or
intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc.
Emotional Quotient (EQ): Most of the organizations realized that emotional involvement and
commitment of the employees determine their contribution to the company rather than their
intelligence quotient. As such, emotional quotient (EQ) is used as important criteria in the employee
selection process.
Achievement Tests: These tests are conducted when applicants claim to know something as these
tests are concerned with what one has accomplished. These tests are more useful to measure the value
of a specific achievement when an organization wishes to employ experienced candidates. These tests
are classified into: (a) Job knowledge test: and (b) Work sample test.
Situational test: This test evaluates a candidate in a similar real life situation. In this test, the
candidate is asked either to cope with the situation or solve critical situations of the job.
Interest tests: These tests are inventories of the likes and dislikes of candidates in relation to work,
job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a
candidate is interested or disinterested in the job for which he is a candidate and to find out in which
area of the job range/occupation the candidate is interested. The assumption of this test is that there is
a high correlation between the interest of a candidate in a job and job success. Interest inventories are
less faked and they may not fluctuate after the age of 30.
Personality Tests: These tests prove deeply to discover clues to an individual’s value system, his
emotional reactions and maturity and characteristic mood. They are expressed in such traits like self-
confidence, tact, emotional control, optimism, decisiveness, sociability, conformity, objectivity,
patience, fear, distrust, initiative, judgment dominance of submission, impulsiveness, sympathy,
integrity, stability and self-confidence.
Other Tests:
Cognitive Ability Tests: These tests measure mathematical and verbal abilities. Popularly known
tests of this category include Graduate Record Examination (GRE) and Scholastic Aptitude Test
(SAT).
Polygraph Tests: The polygraph is an instrument that records changes in breathing, blood pressure,
pulse and skin response associated with sweating of palms and plots these reactions on paper.
Multi-dimensional Testing: However, the need for multi-skills is being felt by most of the
companies’ consequent upon globalization, competitiveness and the consequent customer-centred
strategies. Organization have to develop multi-dimensional testing in order to find out whether the
candidates possess a variety of skills or not, candidate’s ability to integrate the multi-skills and
potentiality to apply them based on situational and functional requirement.
INTERVIEW
Interview is probably the most widely used selection tool. It is a most complex selection technique
because its scope includes measuring all the relevant characteristics and integrating and classifying all
other information about the applicant. In practically all organization interviewing is used for a variety
of purposes, including selection, appraisal, disciplinary action, counseling and general problem
solving.
The interview is a selection technique which enables the employer to view the total individual and
directly appraise him and his behavior. It is a method by which an idea about an applicant’s
personality can be obtain by a face-to-face contact.
It tries to achieve an exacting appraisal of an applicant, his previous experience, education, training
and family backgrounds.
Meaning and definition of interview
“Interviewing” is meant “deliberate, active listing with a purpose to draw the other person out, to
discover what he really wants to say, and to give a chance to express himself freely.”
“An interview is an attempt to secure maximum amount of information form the candidate
concerning his suitability for the job under consideration.”
“An interview is a purposeful exchange of ideas, the answering of questions and communication
between two or more persons.”
Objectives & importance of interview
1. To cross-check or verify the information obtained in earlier steps,application form and tests.
2. To judge the candidate’s qualification and characteristics so as to decided whether or not to
select him.
3. To give the candidate essential facts about the job and the company to enable him to decide
intelligently whether he should or should not accept the employment.
4. To established a rapport or mutual understanding between the company and the candidate and
to promote the company’s goodwill.
Steps in interview process
An effective interview involves the following sequence of steps:
1.) Preparation for the interview:-
Advance preparation is essential for a successful interview. The following arrangements should be
made before the interview begins:
Determining the objectives of the interview.
Choosing the appropriate type of interview.
Acquainting oneself about the candidate.
Determining the type of information to be obtained.
Selecting the right interviewers.
Selecting the candidates to be interviewed by checking and comparing their applications and
test scores.
Finalizing the interview assessment forms.
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2.) The physical setting:
The place of interview should be both private and comfortable. It should be neat and clean, well
lighted. It should be free from noise and interruptions. The candidates should be properly received
and should be guided into the interview room. The interview should start at the fixed time and the
candidates should not be required to wait unnecessarily.
3.) Conducting the interview:
This step is heart of the interview process. In this activities are follows.
Establishing rapport with the candidate and gaining his confidence exchange of a smile, offering seat
to the candidate, etc.
Getting complete information-for this purpose,
Ask open-close question.
Use the language which is clear to the candidate.
Recording the observation- the interview should write down in brief his observation of the candidate
on the interview forms. Such notes will indicate to the candidate the interviewer’s interest and
thereby encourage him to talk freely. These notes will also be helpful in evaluating the candidate
later.
4.) Closing the interview:
The close of the interview is as significant as it beginning. The interview is a trying situation for the
candidate. Therefore, it should end with a happy note without any awkward situation. before closing
the interview the candidate should be asked whether he wants to make any comments in order to the
interviewer may show some sing at an appropriates time . Laying down the pen, pushing back the
chair saying thank you, that's all are these sings.
5.) Evaluation of results:
After an interviewer is over, the interviewer should evaluation the candidate’s suitability for the job.
It is based on observation impression and information collected during the interview. The evaluation
may be done either by grades ranging from A to E . After the interview, a list of selected candidates is
prepared.
Types of interview
The interviews are classified by the purpose for which the interview is held.
Promotion interview:-
Persons due for promotion are interviewed even if there is no competition. The interview is likely to
be informal and serves as induction into a new team, with new responsibilities. Clarification about
nature of duties, responsibilities and expectations are made during a promotion interview.
Informal interview:-
It is planned and is used when the staff is required urgently. A friend or relative of the employer may
take a candidate to the house of employer or manager who ask few questions like name, birth place,
educations and experience,etc. when candidate enquires about the vacancies after reading an
advertisement, it’s a example of informal interview.
Formal interview:
This type of interview is preplanned and is held in a formal atmosphere. All the formalities and
procedure, e.g.the time, the venue and the questions to be asked are decided in advance.
Appraisal or assessment interview:-
An appraisal interview is one of the methods of periodical assessment of employees. There are other
methods like completion of self assessment forms and assessment by supervisors. But annual
appraisal interview is the best method for judging employees' attitudes. A face-to-face confidential
talk is an opportunity for both, the employee and the supervisor to discuss several issues.
Patterned or structured interview:
Such interview is fully planned to a high degree of accuracy and precision. It’s based on the
assumption that to be more effective every pertinent detail should be worked out in advance.
Therefore, a list questions to be asked is prepared and the questions are asked in a particular cycle.
The time to be allowed to each candidate and the information to be sought a predicated. The
interviewer is carefully selected.
The interviewer actively participates and the candidate is expected only to answer the questions.
Thus, a standardized pattern is adopted or the structure of the interview is decided in advance. Such
interview is also known as directed or guided interview.
It allows for a systematic coverage of the required information.
Stress Interview: -
This interview aims at testing the candidate’s job behavior and level of withstanding during the
period of stress and strain. Interviewer tests the candidate by putting him under stress and strain by
interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to
unrelated areas, keeping silent for unduly long period after he has finished speaking etc. Stress during
the middle portion of the interview gives effective results. Stress interview must be handled with at
most care and skill. This type of interview is often invalid.
As the interviewee’s need for a job, his previous experience in such type of interviews may inhibit his
actual behavior under such situations.
Behavioral Interview:-
In a behavioral interview, the interviewer will ask you questions based on common situations of the
job you are applying for. The logic behind the behavioral interview is that your future performance
will be based on a past performance of a similar situation. You should expect questions that inquire
about what you did when you were in XXX situation and how did you dealt with it. In a behavioral
interview, the interviewer wants to see how you deal with certain problems and what you do to solve
them.
Group Interview:-
Many times companies will conduct a group interview to quickly prescreen candidates for the job
opening as well as give the candidates the chance to quickly learn about the company to see if they
want to work there. Many times, a group interview will begin with a short presentation about the
company. After that, they may speak to each candidate individually and ask them a few questions.
One of the most important things the employer is observing during a group interview is how you
interact with the other candidates. Are you emerging as a leader or are you more likely to complete
tasks that are asked of you? Neither is necessarily better than the other, it just depends on what type
of personality works best for the position that
Group Discussion Interview:-
There are two methods of conducting group discussion interview, namely group interview method
and discussion interview method. All candidates are brought into one room i.e. interview room and
are interviewed one by one under group interview This method helps a busy executive to save
valuable time and gives a fair account of the objectivity of the interview to the candidates.
Under the discussion interview method, one topic is given for discussion to the candidates who
assemble in one room and they are asked to discuss the topic in detail. This type of interview helps
the interviewer in appraising, certain skills of the candidates like initiative, inter-personal skills,
dynamism, presentation, leading comprehension, collaboration etc.
Interviewers are at ease in this category of interview because of its informality and flexibility. But it
may fail to cover some significant portions of the candidates’ background and skills
Depth Interview:
In this type of Interview, the candidates would be examined extensively in core areas of knowledge
and skills of the job. Experts in that particular field examine the candidates by posing relevant
questions as to extract critical answers from them, initiating discussions regarding critical areas of the
job, and by asking the candidates to explain even minute operations of the job performance. Thus, the
candidate is examined thoroughly in critical / core areas in their interviews.
Phone interview:
A phone interview may be for a position where the candidate is not local or for an initial prescreening
call to see if they want to invite you in for an in-person interview. You may be asked typical
questions or behavioral questions. Most of the time will schedule an appointment for a phone
interview. If the interviewer calls unexpectedly, it's ok to ask them politely to schedule an
appointment. On a phone interview, make sure your call waiting is turned off, you are in a quiet
room, and you are not eating, drinking or chewing gum.
Panel or board interview:
Such interview is conducted by a group of interviewers. It seeks to pool the collective wisdom and
judgment of several interviewers. Questions are asked in turn or at random. The candidate may even
be asked to meet the members of the panel individually for a fairly lengthy interview.
Guidelines for effective interviewing
Interview can be made be more effective by observing the following guidelines:
An interview should have a definite time schedule with ample time for conduct, i.e., it should not be
hurried.
Interview should have an element of privacy.
The interview should be based on a checklist of what to look for in a candidate such a checklist
should be prepared on the basis of job requirements.
Competent, trained and experienced persons should be chosen as interview.
Proper method of interview should be employed.
A specific set of guidelines should be given to the interviews .
There should be proper coordination between the initial and succeed interviews.
The interviewer should try to minimize his personal bias or prejudiced.
Limitations of interview
Interview is a widely used method of employee selection. But it suffers from several pitfalls, some of
which are given below:
Personal bias:-
Interview like other people have personal biases. Their likes & dislikes about hairstyle, dress, fluency
of speech, etc. affect their judgment.
Halo effect:-
Under this type of error, a single prominent characteristic of the candidate affects the judgment of
interviewer on all other traits. For example, an interviewer may conclude that a poorly groomed
candidate is stupid or alternatively, he may overrate the candidate’s qualifications just because of his
pleasing personality.
Constant error:-
Such error arises because the interview of previous candidate unduly influences the interviewer in
favor or against the candidate. For example, a qualified candidate may be underrated just because the
previous candidate was very brilliant.
Projection:-
Error of projection arises when an interviewer expects his own knowledge, skills and values in a
candidate. Therefore, he is likely to select candidates who resemble him in terms of manners,
background, voice, etc.
Leniency:-
It implies the tendency to assign high scores. It’s normally associated with lack of confidence and
interest in rating. The opposite of leniency is toughness, i.e., the tendency to constantly give low
scores. This may arise due to exaggerated expectation, lack of contact with people.
Conclusion
The interview is probably the most widely used selection tool. It is most complex selection technique
because its scope includes measuring all the relevant characteristics and integrating ad classifying all
other information about the applicant. I practically all organization interviewing is used for a variety
of purposes, including selection, appraisal, discipline action and problem solving
InductionMeaning:
Induction of Employee is the first step towards gaining an employees' commitment, Induction is
aimed at introducing the job and organization to the recruit and him or her to the organization.
Induction involves orientation and training of the employee in the organizational culture, and
showing how he or she is interconnected to (and interdependent on) everyone else in the organization.
The new employee’s first contact with his or her physical and human working environment is
extremely important, since it will condition his or her relationship with the company. The employee
must feel supported and important. The first person he or she will meet is the immediate supervisor,
who should present the corporate profile in addition to providing information on the organization’s
background, values, clientele, services offered, staff, and expected behaviour. The immediate superior
will also specify the newcomer’s role. The points listed below should be covered during this meeting.
Purpose and Need
An employee has to work with fellow employees and his supervisor. For this he must know them, the
way they work and also the policies and practices of the organization so that he may integrate himself
with the enterprise. Any neglect in the area of induction and orientation may lead to high labour
turnover, confusion, wasted time and expenditure.
Induction Programme
A good induction programme should cover the following:
1. The company, its history and products, process of production and major operations involved
in his job.
2. The significance of the job with all necessary information about it including job training and
job hazards.
3. Structure of the organization and the functions of various departments.
4. Employee’s own department and job, and how he fits into the organization.
5. Personnel policy and sources of information.
6. Company policies, practices, objectives and regulations.
7. Terms and conditions of service, amenities and welfare facilities.
8. Rules and regulations governing hours of work and over-time, safety and accident prevention,
holidays and vacations, methods of reporting, tardiness and, absenteeism.
9. Grievances procedure and discipline handling.
10. Social benefits and recreation services.
11. Opportunities, promotions, transfer, suggestion schemes and job satisfaction.
JOB CHANGE
Changes in duties and responsibilities of a position may result in a change of classification and/or
grade level. In this case, the incumbent employee can experience a job change without changing
position. Please bear in mind that more work does not result in change of classification or grade level.
It will likely result in overtime. Of course, overtime is not compensable for exempt employees. A
change in tools and methods is also unlikely to change classification or grade level. The change of job
can take place in different forms. They are:
Promotion
The employees are given the promotions to higher posts and positions as and when vacancies are
available or when new posts are created at the higher levels. It is quite common in all types of
organizations. It is the product of internal mobility of the employees due to change in organizational
processes, structure etc. It is better than direct recruitment which satisfies many human resources
problems of the organization and helps in achieving organizational objectives. Promotion means
higher position to an employee who carries higher status, more responsibilities and higher salary. The
higher status and salary is the two most important ingredient of any promotion. It is an advancement
of employee to a higher post with greater responsibilities and higher salary, better service conditions
and thus higher status.
Transfer
One of the internal mobility of the employee is transfer. It is lateral movement of employee in an
organization by the employee. “A transfer involves the shifting of an employee from one job to
another without changing the responsibilities or compensation”.
Transfers of employees are quite common in all organizations. This can also be defined as a change in
job within the organization where the new job is substantially equal to the old in terms of pay, status
and responsibilities. Transfers of employees can possible from one department to another from one
plant to another. Transfer may be initiated by the organization or by the employees with the approval
of the organization. It can be also due to changes in organizational structure or change in volume of
work, it is also necessary due to variety of reasons.
Types of Transfers most of the transfers generally carried out four types of transfers which are
discussed below:
Production Transfer: Such transfers are resorted to when there is a need of manpower in one
department and surplus manpower in other department. Such transfers are made to meet the company
requirements. The surplus employees in one department/section might be observed in other place
where there is a requirement.
Replacement Transfers: This takes place to replace a new employee who has been in the
organization for a long time and thereby giving some relief to an old employee from the heavy
pressure of work.
Remedial Transfers: As the name suggest, these transfers are made to rectify the situation caused by
faulty selection and placement procedures. Such transfers are made to rectify mistakes in placement
and recruitments. If the initial placement of an individual is faulty or has not adjusted to work/job, his
transfer to a more appropriate job is desirable.
Versatility Transfer: Such transfers are made to increase versatility of the employees from one job
to another and one department to another department. Transfer (Job Rotation) is the tool to train the
employees. Each employee should provide a varied and broader job experiences by moving from one
department to another. This is for preparing the employee for promotion; this will definitely help the
employee to have job enrichment.
Demotion
Demotion is just the opposite of promotion. It is a downward movement of an employee in the
organizational hierarchy with lower status and lower salary. It is a downgrading process and is
insulting to an employee. Demotion is a punishment for incompetence or mistakes of serious nature
on the part of an employee.
It is a serious type of penalty or punishment and should be given rarely and only under exceptional
circumstances and also tactfully.
Meaning of separation:
Separation of an employee exists when the service of an employee comes to an end because of one
reason or other. Separation arises due to resignation; lay off, dismissal and retirement.
Types of separation
i) Resignation: when the employee himself initiates the separation then it is termed as separation.
There are some resignation which are avoidable and others which are unavoidable. It is the
responsibility of the management to look out the real reason of the resignation. In such a cases the
exit interview is better to conduct to find out the reason of resignation.
ii) Lay off: lay off is generally done to reduce the financial burden of the organization by
temporary removing the surplus employees. This is done due to inability of the employee to recruit
them due to shortage of sufficient resources. Lay off results in a great loss to the organization as they
had to suffer all the expenses of selection, placement and training.
iii) Dismissal: dismissal or discharge means separating the employee from the payroll due to
unsatisfactory performance where the employee fails to perform his duties well and he is not properly
skilled to perform his job or due to violation of organizational rules it means indiscipline, dishonesty.
Whatever is the cause of dismissal but it should be done at the last stage.
iv) Retirement: number of separation in the organization happen due to retirement. There must be
clear rules of retirement there may be compulsory retirement where an employee has to retire after
attaining a particular age. Forced retirement means when a person is found guilty in the court of law
or breaks any service agreement then has to retire forcibly irrespective of his age. Premature
retirement means that the employee becomes disable to perform the job in that case he may be given
the option to take retirement before his retirement age.
4. EMPLOYEE TRAINING AND DEVELOPMENT
Human Resource Development (HRD) is a process of developing skills, competencies, knowledge
and attitudes of people in an organization. The people become human resource only when they are
competent to perform organizational activities. Therefore, HRD ensures that the organization has
such competent human resource to achieve its desired goals and objectives. HRD imparts the required
knowledge and skill in them through effective arrangement of training and development programs.
HRD is an integral part of Human Resource Management (HRM) which is more concerned with
training and development, career planning and development and the organization development. The
organization has to understand the dynamics of HR and attempt to cope with changing situation in
order to deploy its HR effectively and efficiently. And HRD helps to reach this target.
Hence, HRD is a conscious and proactive approach applied by employers which seeks to capacitate
employees through training and development to give their maximum to the organization and to fully
use their potential to develop themselves.
Nature of HRD
1. HRD is a continuous process
2. HRD concerned with behavioral knowledge.
3. HRD is a well integrated system
4. HRD provides better quality of life.
5. HRD focuses on all round development of human resources.
TRAINING
Human Resource Management is concerned with the planning, acquisition, training & developing
human beings for getting the desired objectives & goals set by the organization. The employees have
to be transformed according to the organizations' & global needs. This is done through an organized
activity called Training.
Training is a process of learning a sequence of programmed behavior. It is the application of
knowledge & gives people an awareness of rules & procedures to guide their behavior. It helps in
bringing about positive change in the knowledge, skills & attitudes of employees.
Thus, training is a process that tries to improve skills or add to the existing level of knowledge so that
the employee is better equipped to do his present job or to mould him to be fit for a higher job
involving higher responsibilities. It bridges the gap between what the employee has & what the job
demands.
Concept
Training is the process of increasing the knowledge and skills for doing a particular job. It is an
organized procedure by which people learn knowledge and skill for a definite purpose. In other
words, training is a systematic programme of the organization which aims at increasing the aptitudes,
skill and abilities of the workers to perform specific job. By training, the employee can acquire new
manipulative skills, technical knowledge, problem solving abilities etc.
According to Edwin B.Flippo, “Training is the act of increasing the knowledge and skill of an
employee for doing a particular job”
Need for training
Training is crucial for organizational development and success. It is fruitful to both employers and
employees of an organization. An employee will become more efficient and productive if he is
trained well.
Training is given on four basic grounds:
1. New Hire Orientation
Training is particularly important for new employees. This can be conducted by someone
within the company and should serve as a platform to get new employees up to speed with the
processes of the company and address any skill gaps.
2. Tackle shortcomings
Every individual has some shortcomings and training and development helps employees iron
them out. For example divide the entire headcount in several groups to provide focused
training which is relevant to those groups - sales training, first time managers, middle
management, senior leadership, executive leadership.
3. Improvement in performance
If shortcomings and weaknesses are addressed, it is obvious that an employee's performance
improves. Training and development, however, also goes on to amplify your strengths and
acquire new skill sets. It is important for a company to break down the training and
development needs to target relevant individuals.
4. Employee satisfaction
A company that invests in training and development generally tends to have satisfied
employees. However, the exercise has to be relevant to the employees and one from which
they can learn and take back something. It will be futile if training and development become
tedious and dull, and employees attend it merely because they have to. As a company,
weshould stress on industry specific training and send many employees for international
seminars and conferences that can be beneficial to them.
5. Increased productivity
In a rapidly evolving landscape, productivity is not only dependent on employees, but also on
the technology they use. Training and development goes a long way in getting employees up
to date with new technology, use existing ones better and then discard the outdated ones. This
goes a long way in getting things done efficiently and in the most productive way.
6. Self-driven
Employees who have attended the right trainings need lesser supervision and guidance.
Training develops necessary skill sets in employees and enables them to address tasks
independently. This also allows supervisors and management to focus on more pressing areas.
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B. Off-the-Job Training Methods:
1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training
A. On-the-job training Methods:
Under these methods new or inexperienced employees learn through observing peers or managers
performing the job and trying to imitate their behaviour. These methods do not cost much and are less
disruptive as employees are always on the job, training is given on the same machines and experience
would be on already approved standards, and above all the trainee is learning while earning. Some of
the commonly used methods are:
1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on
them. It also offers the benefit of transferring theory learning to practice. The biggest problem is that
it perpetrates the existing practices and styles. In India most of the scooter mechanics are trained only
through this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is used for managerial employees.
Mentoring is always done by a senior inside person. It is also one-to- one interaction, like coaching.
3. Job Rotation:
It is the process of training employees by rotating them through a series of related jobs. Rotation not
only makes a person well acquainted with different jobs, but it also alleviates boredom and allows to
develop rapport with a number of people. Rotation must be logical.
4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares a
trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the task or
the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d)
follows up to provide feedback and help. The trainees are presented the learning material in written or
by learning machines through a series called ‘frames’. This method is a valuable tool for all educators
(teachers and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
5. Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill. This method of
training is in vogue in those trades, crafts and technical fields in which a long period is required for
gaining proficiency. The trainees serve as apprentices to experts for long periods. They have to work
in direct association with and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an expensive method of
training. Also, there is no guarantee that the trained worker will continue to work in the same
organization after securing training. The apprentices are paid remuneration according the
apprenticeship agreements.
6. Understudy:
In this method, a superior gives training to a subordinate as his understudy like an assistant to a
manager or director (in a film). The subordinate learns through experience and observation by
participating in handling day to day problems. Basic purpose is to prepare subordinate for assuming
the full responsibilities and duties.
B. Off-the-job Training Methods:
Off-the-job training methods are conducted in separate from the job environment, study material is
supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:
1. Lectures and Conferences:
Lectures and conferences are the traditional and direct method of instruction. Every training
programme starts with lecture and conference. It’s a verbal presentation for a large audience.
However, the lectures have to be motivating and creating interest among trainees. The speaker must
have considerable depth in the subject. In the colleges and universities, lectures and seminars are the
most common methods used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something new (learning).
In vestibule training, the workers are trained in a prototype environment on specific jobs in a special
part of the plant.
An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop.
This enables the workers to secure training in the best methods to work and to get rid of initial
nervousness. During the Second World War II, this method was used to train a large number of
workers in a short period of time. It may also be used as a preliminary to on-the job training. Duration
ranges from few days to few weeks. It prevents trainees to commit costly mistakes on the actual
machines.
3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation. There are four basic
simulation techniques used for imparting training: management games, case study, role playing, and
in-basket training.
(a) Management Games:
Properly designed games help to ingrain thinking habits, analytical, logical and reasoning capabilities,
importance of team work, time management, to make decisions lacking complete information,
communication and leadership capabilities. Use of management games can encourage novel,
innovative mechanisms for coping with stress.
Management games orient a candidate with practical applicability of the subject. These games help to
appreciate management concepts in a practical way. Different games are used for training general
managers and the middle management and functional heads – executive Games and functional heads.
(b) Case Study:
Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that
demonstrate theoretical concepts in an applied setting.
A case study allows the application of theoretical concepts to be demonstrated, thus bridging the gap
between theory and practice, encourage active learning, provides an opportunity for the development
of key skills such as communication, group working and problem solving, and increases the trainees”
enjoyment of the topic and hence their desire to learn.
(c) Role Playing:
Each trainee takes the role of a person affected by an issue and studies the impacts of the issues on
human life and/or the effects of human activities on the world around us from the perspective of that
person.
It emphasizes the “real- world” side of science and challenges students to deal with complex
problems with no single “right” answer and to use a variety of skills beyond those employed in a
typical research project.
In particular, role-playing presents the student a valuable opportunity to learn not just the course
content, but other perspectives on it. The steps involved in role playing include defining objectives,
choose context & roles, introducing the exercise, trainee preparation/research, the role-play,
concluding discussion, and assessment. Types of role play may be multiple role play, single role play,
role rotation, and spontaneous role play.
(d) In-basket training:
In-basket exercise, also known as in-tray training, consists of a set of business papers which may
include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to priorities the
decisions to be made immediately and the ones that can be delayed.
4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training is about making
people understand about themselves and others reasonably, which is done by developing in them
social sensitivity and behavioral flexibility. It is ability of an individual to sense what others feel and
think from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional issues, and things
that he or she has in common with other members of the group. It is the ability to behave suitably in
light of understanding.
A group’s trainer refrains from acting as a group leader or lecturer, attempting instead to clarify the
group processes using incidents as examples to clarify general points or provide feedback. The group
action, overall, is the goal as well as the process.
Sensitivity training Program comprises three steps
5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and understanding the behavior
of others. In every social interaction, there is a motivation provided by one person and a reaction to
that motivation given by another person.
This motivation reaction relationship between two persons is known as a transaction. Transactional
analysis can be done by the ego (system of feelings accompanied by a related set of behaviors states
of an individual).
Child:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses
which come to him/her naturally from his/her own understanding as a child. The characteristics of
this ego are to be spontaneous, intense, unconfident, reliant, probing, anxious, etc. Verbal clues that a
person is operating from its child state are the use of words like “I guess”, “I suppose”, etc. and non
verbal clues like, giggling, coyness, silent, attention seeking etc.
Parent:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses
imposed on her in her childhood from various sources such as, social, parents, friends, etc.
The characteristics of this ego are to be overprotective, isolated, rigid, bossy, etc. Verbal clues that a
person is operating from its parent states are the use of words like, always, should, never, etc and
non-verbal clues such as, raising eyebrows, pointing an accusing finger at somebody, etc.
Adult:
It is a collection of reality testing, rational behaviour, decision making, etc. A person in this ego state
verifies, updates the reaction which she has received from the other two states. It is a shift from the
taught and felt concepts to tested concepts.
All of us show behaviour from one ego state which is responded to by the other person from any of
these three states.
Preparing Training Environment
Establishing an environment conducive to learning is a critical aspect of starting a training session off
on the right foot. You can ensure that participants walk in to a relaxed atmosphere and an
environment that is welcoming and ready. The room says you took the time to get ready for them.
You have time to greet them and welcome them to a great training session.
Know when, where, what, who
Just about every trainer has encountered at least one training nightmare. Some (not all) of these could
be prevented by additional preparation. These questions may help you obtain the right information,
but it will do you little good if you don't write the answers in a safe place.
When: When is the training? Day? Date? Time? Also, do you have enough time to prepare? Is
the amount of allotted time for the amount of content adequate?
Where: Where is the session? On-site or off? If off-site, is it easy to travel to the location? How
do you get there? What's the address? Telephone number? Will you need to make travel
arrangements? Is public transportation available? How do you get materials to the site?
What: What kind of training is being expected? What resources are required? What kinds of
facilities are available? What will you need?
Who: Who is the key planner? Who are the participants? How many? What's their background?
Why were you chosen to deliver the training? Who is the contact person at the training site? How
do you reach that person on-site and off?
Room arrangements
Your room may have significant impact on your training session. Arrange the room to support the
learning objectives and the amount of participation you will desire.
Typically you will not have the opportunity to select a room. However, if you do, consider the
attributes that will create the best learning environment for your participants.
Size: Arrange for a room to accommodate the number of participants. Remember that a room
that is too large can be as bad as one that may be too small.
Training requirements: If the training session entails many small group activities, determine if
there is enough space in the room. If not, arrange for additional breakout rooms to accommodate
your needs.
Accessible: Ensure that the room is accessible to all, including those who have limited mobility.
Location: If participants need to travel (either by foot or vehicle) to the session, the location
should not pose a hardship, for example, walking in rain, or parking difficulty.
Convenience: Readily accessible restrooms, telephones, snacks, lunch accommodations, and so
on help ensure that participants return on time following breaks or lunch.
Distractions: Select a room that is free of distractions and noise. Thin walls with a sales
convention next door may not create the environment you're trying to establish for learning.
If you're in a room with a telephone, turn the ringer off and provide an alternate number for
participants who need to be available for messages. Set a message center up outside the room; sticky-
back notes available for leaving messages may be adequate.
Obstructions: Select a room that is free of structures such as posts or pillars that may obstruct
participants' views.
Seating: Select a location that provides comfortable, moveable chairs. Seating arrangements
should further enhance the learning environment you wish to establish. Determine what's most
important for the learner.
Furniture: In addition to decisions about the seating arrangements and the kind of tables you
prefer, you will want a table in front of the room for your supplies and equipment. Don't allow
too much space between the table from which you will present and the front participant row.
Reducing the amount of space between you and the learners increases the affect level in the
room. It closes the distance between you and the trainees both physically and emotionally. The
participants feel better about you, themselves, and the training session.
You may also want to consider positioning a table for refreshments in the back of the room. Located
there, it can be easily serviced throughout the day. One more thing: Don't forget the wastebasket!
Usually, neither training rooms nor hotel conference rooms have wastebaskets. Remember to ask for
one.
Lighting: Lighting should be adequate. Dimly lit ballroom ambiance will not promote energy in
a training session. Is the lighting bright enough? Is it natural lighting? If the room has windows,
which direction are they facing? Can windows be darkened, if necessary? A morning sun coming
up behind your projection screen will blind the participants and wash out the image on the
screen. Know where light switches are located so that you can brighten or darken the room as
needed.
Workable walls: Most trainers hang flipchart pages on the walls: the session objectives, small
group work, and so on. Is wall space available or do windows surround the room? Does art cover
the walls or are they open? Usually the front of the training room should be opposite the entrance
to avoid distractions when folks come and go. Is that possible in the room you're considering?
Use markers that absolutely do not bleed through so there is no danger of ruining walls.
Climate control: You will never be able to please everyone in your session. However, if you
have the ability to adjust it yourself, you can try. Determine where the thermostat is located and
whether you have any control over it. Experiment with it while you set up the room. Does it
respond quickly or slowly? Do you need to contact someone to make adjustments?
When adjusting thermostats, make changes one degree at a time and give the equipment time to work.
Large changes in the thermostat will cause a once too-cool room to become too warm.
Microphone: If you have a large room or a large group or the room has poor acoustics or you
have a tiny voice, you may need a microphone. Check the room to ensure it is wired for a
microphone.
Five Functional Areas Of Human Resource Management
HRM has five functional areas that include: Staffing, Human Resource Development (HRD),
Compensation and Benefits, Safety and Health, and Employee and Labor Relations.
Staffing
Achieving organizational objectives requires having the proper number of employees with the
appropriate skills. Staffing accomplishes this objective through four tasks. The first task is job
analysis, which examines specific job functions in determining the skills, duties and knowledge
required for each position. The second task is ensuring that the required numbers of employees, with
the appropriate skills, are available when needed organizations engage in Human Resource Planning
(HRP). The third task is recruitment, which is the process of attracting enough skilled people to
apply for jobs in the organization. Fourth, the last step in the staffing process, is selection. This
involves choosing the best suited individuals to fill the open positions in the firm.
Human Resource Development (HRD)
Six functions, including training, development, career planning, career development, organization
development and performance appraisal, make up Human Resource Development (HRD).
Training: is a process designed to provide employees with the knowledge
and skills needed for their present job. Focusing on long-term learning needs
is development. The ongoing process of career planning sets career goals for
employees and identifies the means to achieve them. Career development is
a formal approach used by firms to ensure that people with the proper
qualifications and experiences are available when needed. A planned process
for improving the firm by developing its structures, systems and processes to
improve effectiveness and achieving desired goals is Organizational
Development (OD). And finally, performance appraisal is a formal system
of review and evaluation of individual or team task performance.
Compensation and Benefits
Compensation includes all rewards that individuals receive as a result of their employment. Pay is
the money that a person receives for performing a job. Additional financial rewards other than base
pay include paid vacations, sick leave, holidays and medical insurance, and they are called benefits.
Non-financial rewards are non-monetary rewards, such as enjoyment of the work performed or a
pleasant working environment.
Safety and Health
Employees who work in a healthy and safe environment are more likely to be productive. Safety
involves protecting employees from work-related accidents and injuries. Health activities seek to
prevent illness and provide for general physical and mental well being.
Employee and Labor Relations
Business firms are required by law to recognize a union and bargain with it in good faith if the firm’s
employees want the union to represent them. This is still true despite the fact that the private-sector
membership has fallen to 9 percent.
Training Evaluation
The process of examining a training program is called training evaluation. Training evaluation checks
whether training has had the desired effect. Training evaluation ensures that whether candidates are
able to implement their learning in their respective workplaces, or to the regular work routines
Techniques of Evaluation
The various methods of training evaluation are:
Observation
Questionnaire
Interview
Self-diaries
Self-recording of specific incidents
Types of evaluation
Evaluating training (includes monitoring) addresses how one determines whether the goals or
objectives were met and what impact the training had on actual performance on the job.
Generally there are four kinds of standard training evaluation:
1. Formative
2. Process
3. Outcome
4. Impact.
1. Formative evaluation provides ongoing feedback to the curriculum designers and developers to
ensure that what is being created really meets the needs of the intended audience.
2. Process evaluation provides information about what occurs during training. This includes giving and
receiving verbal feedback.
3. Outcome evaluation determines whether or not the desired results (e.g., what participants are doing)
of applying new skills were Achieved in the short-term.
4. Impact determines how the results of the training affect the strategic goal
Executive Development Programme: Concept, Objectives and Methods!
Concepts and objectives:
While drawing a distinction between training and development, we introduced, in brief, the concept
of development. Based on that concept, we can now elaborate it in more detail. The term
‘development’ implies overall development in a person. Accordingly, executive development means
not only improvement in job performance, but also improvement in knowledge, personality, attitude,
behaviourism of an executive, etc.
It means that executive development focuses more on the executive’s personal growth. Thus,
executive development consists of all the means that improve his/her performance and behaviour.
Executive development helps understand cause and effect relationship, synthesizes from experience,
visualizes relationships or thinks logically. That is why some behavioural scientists suggest that the
executive development is predominantly an educational process rather than a training process.
Flippo has viewed that “executive/management development includes the process by which managers
and executives acquire not only skills and competency in their present jobs but also capabilities for
future managerial tasks of increasing difficulty and scope”.
According to S.B. Budhiraja, former Managing Director of Indian Oil Corporation. “Any activity
designed to improve the performance of existing managers and to provide for a planned growth of
managers to meet future organisational requirements is called management development”. It is now
clear from the above definitions of executive/management development that it is based on certain
assumptions.
We can derive these as follows:
1, Executive development, being a predominantly educational process, is a continuous and life-long
process. It is not like training as a one-shot programme but an on-going continuous programme
throughout the career of an executive or manager.
2. Like any kind of learning, executive development is based on the assumption that there always
exists a gap between what an executive performs and what he/she can. Executive development
harnesses this untapped potential.
Objectives of Executive Development:
The main objectives of any programme of executive development are to:
1. Improve the performance of managers at all levels.
2. Identify the persons in the organisation with the required potential and prepare them for higher
positions in future.
3. Ensure availability of required number of executives / managers succession who can take over in
case of contingencies as and when these arise in future.
4. Prevent obsolescence of executives by exposing them to the latest concepts and techniques in their
respective areas of specialisation.
5. Replace elderly executives who have risen from the ranks by highly competent and academically
qualified professionals.
6. Improve the thought processes and analytical abilities.
7. Provide opportunities to executives to fulfill their career aspirations.
8. Understand the problems of human relations and improve human relation skills.
Dasgupta has given the level-wise objectives of the executive/ management development as
follows:
(a) Top Management:
1. To improve thought processes and analytical ability in order to uncover and examine problems and
take decisions in the best interests of the country and organisation;
2. To broaden the outlook of the executive in regard to his role, position and responsibilities in the
organisation and outside;
3. To think through problems this may confront die organisation now or in the future;
4. To understand economic, technical and institutional forces in order to solve business problems; and
5. To acquire knowledge about the problems of human relations.
(b) Middle Line Management:
1. To establish a clear picture of executive functions and responsibilities;
2. To bring about an awareness of the broad aspects of management problems, and an acquaintance
with and appreciation of interdepartmental relations.
3. To develop the ability to analyse problems and to take appropriate action;
4. To develop familiarity with the managerial use of financial accounting, psychology, business
statistics;
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5. To Inculcate knowledge of human motivation and human relationships; and
6. To develop responsible leadership.
(c) Middle Functional Executives and Specialists:
1. To increase knowledge of business fractions and operations in specific fields in marketing
production, finance, personnel;
2. To increase proficiency in management techniques such as work study, inventory control,
operations research, quality control;
3. To stimulate creative thinking in order to improve methods and procedures;
4. To understand the functions performed in a company;
5. To understand industrial relations problems; and
6. To develop the ability to analyse problems in one’s area or functions.
These steps, also called the components of the executive development programme, have been-
discussed in the succeeding paragraphs.
Identifying Development Needs:
Once the launching of an executive development programme (EDP) is decided, its implementation
begins with identifying the developmental needs of the organisation concern. For this, first of all, the
present and future developmental needs for executives/ managers ascertained by identifying how
many and what type of executives will be required in the organisation at present and in future.
This needs to be seen in the context of organisational as well as individual, i.e. manager needs. While
organisational needs may be identified by making organisational analysis in terms of organisation’s
growth plan, strategies, competitive environment, etc., individual needs to be identified by the
individual career planning and appraisal.
Appraisal of Present Managerial Talent:
The second step is an appraisal of the present managerial talent for the organisation. For this purpose,
a qualitative assessment of the existing executives/managers in the organisation is made. Then, the
performance of every executive is compared with the standard expected of him.
Inventory of Executive Manpower:
Based on information gathered from human resource planning, an inventory is prepared to have
complete information about each executive in each position. Information on the executive’s age,
education, experience, health record, psychological test results, performance appraisal data, etc. is
collected and the same is maintained on cards and replacement tables.
An analysis of such inventory shows the strengths and also discloses the deficiencies and weaknesses
of the executives in certain functions relative to the future needs of the concern organisation. From
this executive inventory, we can begin the fourth step involved in the executive development process.
1. A good atmosphere should exist in the organization to creaqte confidence and mutual trust
among employees.
2. The objectives of the performance appraisal must be definite and clear.
3. Well defined performance standards should be developed. Procedures and techniques adopted
in appraisal is also standardized.
4. Proper training should be imparted to appraisers.
5. The appraiser should focus on job related behavior and performance of employees.
6. Proper documentation of appraisal should be done.
7. There should be feedback regarding the performance and participation in fixation of
standards.
8. The size, number of employees and organization set up must be considered while designing
the appraisal system.
9. There must be post appraisal review.
10. A review committee should be constituted for reviewing and appeal against appraisal results.
Limitation of Performance appraisal
1. There is a possibility of inconsistent ratings.
2. An evaluator may appraise an employee based on the general impression i.e., Halo
effect.
3. There is a possibility of personal bias
4. In order to avoid the possibility of giving a high or low rate, the evaluators may opt for
average rating
5. Different standards are followed by different supervisors for evaluation.
6. There is a lack of training in appraisal techniques which reduce reliability.
7. Due to lack of knowledge and skills, the raters may fail to evaluate performance
accurately.
8. There is a resistance from trade unions.
9. There is a possibility of similarity errors.
10. The evaluators have varied range of rating.
Problems of performance appraisal
Since performance appraisal is conducted by human beings, it is subjected to a number of
errors, biases, weaknesses and pitfalls.
Some of these are discussed below.
1. The halo effect:
The halo effect is introduced when an overall impression of an individual is judged on the
basis of a single trait. A high rating on one trait leads automatically to high rating on all
other trait. Also, a very high rating may be given to protect an employee for whom there
may be personal sympathy.
2. Constant error:
This error is a reflection on the trait of the rater. Some raters are, by nature, too liberal, others
too strict and some tend towards rating most people in the middle.
3. Recency of events:
There is a tendency of many evaluators to give much more weight to the recent
behaviour of the candidate than the past behaviour. This is based on the reflection that
the future trend is established by the mere recent behaviour.
4. The central tendency:
It is the most commonly found error. It is the tendency of most raters to give average
ratings to all or the center of the scale. This may be due to the fact that a very high
rating or a very low rating could invite questions, criticisms or explanations.
Accordingly, an average rating is safer. It could also be due to the fact that the rather
lacks sufficient knowledge about the applicant and hence, does not want to commit
himself one way to another.
5. Errors of variable standards:
It is quite possible that organisations follow different standards of performance. Some
divisional heads may require much higher quality of performance than others.
6. Other miscellaneous biases:
There may be some built - in biases in the minds of the rater, based upon his own
perception of things, people and performances. A person may be rated higher because
he is a 'nice' person or because of his seniority.
METHODS OF PERFORMANCE APPRAISAL
1. Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales
ranges from excellent to poor. The total numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large
number of employees covered, no formal training required. Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or
No based questions is prepared. Here the rater only does the reporting or checking and HR
department does the actual evaluation. Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters biases, use of improper weighs by HR,
does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are
given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR
department does actual assessment. Advantages – Absence of personal biases because of forced
choice. Disadvantages – Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that the
performance is conformed to normal distribution. Advantages – Eliminates Disadvantages –
Assumption of normal distribution, unrealistic, errors of central tendency.
5. Critical Incidents Method: The approach is focused on certain critical behaviors of employee
that makes all the difference in the performance. Supervisors as and when they occur record such
incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high.
60
Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision;
feedback may be too much and may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors
determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which
behavior describes the employee performance. Advantages – helps overcome rating errors.
Disadvantages – Suffers from distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside employees’ own
department usually from corporate or HR department. Advantages – Useful for managerial level
promotions, when comparable information is needed, Disadvantages – Outsider is generally not
familiar with employees work environment, Observation of actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests
may be written or an actual presentation of skills. Tests must be reliable and validated to be useful.
Advantage – Tests may be apt to measure potential more than actual performance. Disadvantages –
Tests may suffer if costs of test development or administration are high.
9. Confidential Records: Mostly used by government departments, however its application in
industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR)
and may record ratings with respect to following items; attendance, self expression, team work,
leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The
system is highly secretive and confidential. Feedback to the assessee is given only in case of an
adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the
evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the employee description in detail within a
number of broad categories like, overall impression of performance, promoteability of employee,
existing capabilities and qualifications of performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely useful in filing information gaps about the
employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent
upon the writing skills of rater and most of them are not good writers. They may get confused success
depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to
his or her organization. Cost to keep employee, and benefit the organization derives is ascertained.
Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of
different methods that compare performance with that of other co-workers. The usual techniques used
may be ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best
and why best are not elaborated in this method. It is easy to administer and explanation.
Paired Comparison Methods: In this method each employee is rated with another employee in the
form of pairs. The number of comparisons may be calculated with the help of a formula as under.
N x (N-1) / 2
Modern Methods
1. Management By Objectives: It means management by objectives and the performance is rated
against the achievement of objectives stated by the management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-term
goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees potential for
future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential. However quality of these appraisals largely depend
upon the skills of psychologists who perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their participation
in job related exercises evaluated by trained observers. It is more focused on observation of behaviors
across a series of select exercises or work samples. Assessees are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other similar activities which require
same attributes for successful performance in actual job. The characteristics assessed in assessment
center can be assertiveness, persuasive ability, communicating ability, planning and organizational
ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc. Disadvantages – Costs of employees
traveling and lodging, psychologists, ratings strongly influenced by assessee’s inter-personal skills.
Solid performers may feel suffocated in simulated situations. Those who are not selected for this also
may get affected.
Advantages – well-conducted assessment center can achieve better forecasts of future performance
and progress than other methods of appraisals. Also reliability, content validity and predictive ability
are said to be high in assessment centers. The tests also make sure that the wrong people are not hired
or promoted. Finally it clearly defines the criteria for selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on
an individual group, derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful information on how an employee
does a job may be one of the appraisers. This technique is highly useful in terms of broader
perspective, greater self-development and multi-source feedback is useful. 360-degree appraisals are
useful to measure inter-personal skills, customer satisfaction and team building skills. However on
the negative side, receiving feedback from multiple sources can be intimidating, threatening etc.
Multiple raters may be less adept at providing balanced and objective feedback
CONCEPT OF CAREER PLANNING
Career planning is the process by which one selects career goals and the path to these goals. The
major focus of career planning is on assisting the employees achieve a better match between personal
goals and the opportunities that are realistically available in the organization. Career programmers
should not concentrate only on career growth opportunities. Practically speaking, there may not be
enough high level positions to make upward mobility a reality for a large number of employees.
Hence, career-planning efforts need to pin-point and highlight those areas that offer psychological
success instead of vertical growth.
Career planning is not an event or end in itself, but a continuous process of developing
Humanresources are for achieving optimum results. It must, however, be noted that individual and
organizational careers are not separate and distinct. A person who is not able to translate his career
plan into action within the organization may probably quit the job, if he has a choice. Organizations,
therefore, should help employees in career planning so that both can satisfy each other’s needs
NEED FOR CAREER PLANNING
Every employee has a desire to grow and scale new heights in his workplace continuously. If there
are enough opportunities, he can pursue his career goals and exploit his potential fully. He feels
highly motivated when the organization shows him a clear path as to how he can meet his personal
ambitions while trying to realize corporate goals.
Unfortunately, as pointed out by John Leach, organizations do not pay adequate attention to this
aspect in actual practice for a variety of reasons. The demands of employees are not matched with
organizational needs; no effort is made to show how the employees can grow within certain limits,
what happens to an employee five years down the line if he does well, whether the organization is
trying to offer mere jobs or long-lasting careers, etc. When recognition does not come in time for
meritorious performance and a certain amount of confusion prevails in the minds of employees
whether they are ‘in’ with a chance to grow or not, they look for greener pastures outside. Key
executives leave in frustration and the organization suffers badly when turnover figures rise. Any
recruitment effort made in panic to fill the vacancies is not going to be effective. So, the absence of a
career plan is going to make a big difference to both the employees and the organization. Employees
do not get right breaks at a right time; their morale will be low and they are always on their toes
trying to find escape routes.
Organizations are not going to benefit from high employee turnover. New employeesmean additional
selection and training costs. Bridging the gaps through short-term replacements is not going to pay in
terms of productivity. Organizations, therefore, try to put their career plans in place and educate
employees about the opportunities that exist internally for talented people. Without such a
progressive outlook, organizations cannot prosper.
Career planning is needed for the following reasons:
1. Provides career goals and paths
Career planning is needed to provide career goals and career paths to an employee. It provides clear
future directions in terms of career.
2. Develop competencies
Career planning motivates and encourages an employee to develop competencies for higher level
jobs. The competencies can be conceptual, interpersonal and technical.
3. Creativity
Career planning is needed to increase employee creativity. It is needed for innovation in organization.
It can be lead to entrepreneurship within the organization.
4. Employee retention
Career planning is needed for retention of qualified employees in the long-term. This is needed to
decrease costs of recruitment, selection and training.
5. Motivation
Career planning motivates employees for higher performance. Upward movement in organization is
based on the quality and quantity of performance.
Objectives
Career planning seeks to meet the following objectives:
i. Attract and retain talent by offering careers, not jobs.
ii. Use human resources effectively and achieve greater productivity.
iii. Reduce employee turnover.
iv. Improve employee morale and motivation.
v. Meet the immediate and future human resource needs of the organization on a timely basis
CAREER PLANNING PROCESS
The career planning process involves the following steps:
Identifying individual needs and aspirations:
Most individuals do not have a clear cut idea about their career aspirations, anchors and goals. The
human resource professionals must, therefore, help an employee by providing as much information as
possible showing what kind of work would suit the employee most, taking his skills, experience, and
aptitude into account. Such assistance is extended through workshops/seminars while the employees
are subjected to psychological testing, simulation exercises, etc. The basic purpose of such an
exercise is to help an employee form a clear view about what he should do to build his career within
the company. Workshops and seminars increase employee interest by showing the value of career
planning. They help employees set career goals, identify career paths and uncover specific career
development activities .These individual efforts may be supplemented by printed or taped
information. To assist employees in a better way, organizations construct a data bank consisting of
information on the career histories, skill evaluations and career preferences of itsemployees (known
as skill or talent inventory).
Analyzing career opportunities:
Once career needs and aspirations of employees are known, the organization has to provide career
paths for each position. Career paths show career progression possibilities clearly. They indicate the
various positions that one could hold over a period of time, if one is able to perform well. Career
paths change over time, of course, in tune with employee’s needs and organizational requirements.
While outlining career paths, the claims of experienced persons lacking professional degrees and that
of young recruits with excellent degrees but without experience need to be balanced properly.
Aligning needs and opportunities:
After employees have identified their needs and have realized the existence of career opportunities
the remaining problem is one of alignment. This process consists of two steps: first, identify the
potential of employees and then undertake career development
Programmers with a view to align employee needs and organizational opportunities. Through
performance appraisal, the potential of employees can be assessed to some extent. Such an appraisal
would help reveal employees who need further training, employees who can take up added
responsibilities, etc. After identifying the potential of employees certain developmental techniques
such as special assignments, planned position rotation, supervisory coaching, job enrichment,
understudy programs can be undertaken to update employee knowledge and skills.
Action plans and periodic review:
The matching process would uncover gaps. These need to be bridged through individual career
development efforts and organization supported efforts from time to time. After initiating these steps,
it is necessary to review the whole thing every now and then. This will help the employee know in
which direction he is moving, what changes are likely to take place, what kind of skills are needed to
face new and emerging organizational challenges. From an organizational standpoint also, it is
necessary to find out how employees are doing, what are their goals and aspirations, whether the
career paths are in tune with individual needs and serve the overall corporate objectives, etc.
CAREER DEVELOPMENT
Career Development is defined as the efforts that are made by the organization to equip its employees
with the skills, knowledge & experience that help them to perform the duties of their current as well
as future jobs effectively. The organization develops and implements certain policies including
counseling the employees, promotion & opportunities to attain excellence that facilitate the employee
to prepare their career. Development of career actually promotes the knowledge, skills, and
experiences along with the behavior modification & techniques of refinement that promotes the
addition of value for the employees by improving their work.
In career development, human resource management has the vital importance that centers the entire
efforts of the organization. It is relatively different from the training in such a way that it has wide
scope, longer frame of time & broader focus. Moreover the purpose of training is limited to the
performance improvements but the goal of development is to make employees more capable and
enriched.
In modern days the careers development not only fulfills the needs of the organization but also the
needs of the employees.
The career development is looked as essential by the organizations due to the following
reasons.
It is a method of prevention from job burnout
The career information is provided to the employees
The quality of work life is improved
The affirmative action goals are met
In short the careers development becomes essential for the organizations to be sustained in the
competitive global environment.
Career Development Methods:
There are many methods that are used extensively for the purpose of careers development. But mostly
these are used in combination of more than one method. Following are the commonly used methods
of career development.
1. Discussion with Knowledgeable Individuals:
In this method the subordinate is combined with his superior to agree on the best career development
activities. In certain cases guidance counselors & psychologists provide this service. In case of
academic institutions like colleges & universities, specialized career planning & development
guidance is provided to the students. Professors are usually responsible for such guidance.
2. Company Material:
There are certain organizations that have developed certain specific material for the development of
its employees. The developed material is in accordance with the needs of the organizations. Moreover
the job descriptions can be considered as good material that show the employees to decide either their
strengths & weakness match with the requirement of any offering job within their own organization.
3. Performance Appraisal System:
The performance appraisal system in the organizations can also be regarded as good source of career
development. When the strengths & weaknesses of employees are discussed with their relative
supervisors than the needs for the development of employees emerged clearly. If there is not
possibility to overcome the weakness of certain employee, then there can be a solution of alternative
career path for that employee.
4. Workshops:
Certain organizations offer the workshops for their employees that last for two or more days so that
the employees can be able to develop their career within the organization. The career objectives are
described & match by the employees with the needs of the organizations. In other situations, the
workshops are presented at the community level so that the employees may be sent or they may start
the visit themselves.
5. Personal Development Plans (PDP):
There are some organizations that encourage their employees to present their own plans of personal
development. Such plan consists of summary of needs of personal development of employees along
with the specified action list for the achievement. So the management encourages the employees to
analyze their weakness & strengths.
Meaning:
6 HUMAN RESOURCE POLICIES
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COMPENSATION MANAGEMENT
Keith davis has defined grievance as “any real or imagined feeling of personal injustice which an
employee has concerning his employment relationship”. A grievance represents a situation in
which an employee feels that something unfavorable to him as happened or going to happen.
Absenteeism:
Employee’s presence at work place during scheduled time is highly essential for the smooth
running of the production process in particular and organization in general. Despite the
significance of employee presence, employee sometimes fails to report at work place during the
scheduled time, which is known as “absenteeism”. The term absenteeism is defined as the “the
failure of a worker to report for work when scheduled to work”. The Webster dictionary states
“absenteeism is the practice or habit of being an ‘absence’ and absentee is one who habitually
stays away”.
Types of Absenteeism:
There are 4 types of Absenteeism. They are:
1. Authorized absenteeism
2. Unauthorized Absenteeism
3. Willful absenteeism
4. Absenteeism caused by circumstances
Causes of Absenteeism :
1. Poor working conditions
2. Social and religious ceremonies
3. Unsatisfactory housing conditions
4. Industrial fatigue
5. Unhealthy working condition
6. Poor welfare facilities
7. Alcoholism
8. Indebtedness
9. Change in technology
10. Unsound personnel policies
11. Inadequate leave facilities
DISCIPLINE
Maintenances of harmonious human relations in an organization depends upon the promotion and
maintenance of discipline. No organization can prosper without discipline. It is the most important
concern for organizations. Some believe it is the responsibility of higher levels but in actual practice
it is concerned with all levels.
Broadly, speaking discipline means orderly behavior of individuals towards the desired goals of the
group.
Industrial discipline:
Discipline in industry may be described as willingness cooperation and observance of the rules and
regulations of the organizations. It means securing consistent behavior in accordance with norms of
behavior. Simply, discipline means orderliness without which there would be chaos in the behavior of
workers.
Definitions: Discipline refers to a condition or attitude, prevailing among employees, with respect to
rules and regulations in an organization. Discipline in the broadest sense means orderliness, the
opposite of confusion. It does not mean a strict and technical observance of rigid rules and
regulations. It simply means working, cooperating and behaving in a normal and ordinary way, as any
responsible person would expect an employee to do.”
According to Richard.H. Calhoon, Discipline is defined as “a force that prompts individuals or groups
to observe the rules, regulations and procedures which are deemed necessary for effective functioning
of an organization.”
According to Ordway tead Discipline is defined as is “the orderly conduct of affairs by the members
of an organization who adhere to its necessary regulations because they desire to cooperate
harmoniously in forwarding the end which the group has in view, and willingly recognize that, to do
this, their wishes must be brought into a reasonable unison with the requirements of the group in
action.”
Discipline is said to be good when employees willingly follow the company’s rules and it is said to
be bad when employees follow rules unwillingly or actually disobey regulations. Webster’s
dictionary gives three meanings of the word ‘Discipline’viz.,
Objectives of Discipline:
Aspects of discipline:
1. Positive aspect: Employees believe in and support discipline and adhere to the rules,
regulations and desired standards of behavior. It takes the form of positive support and
reinforcement for approved actions and its aim is to help the individual in moulding his
behavior and developing him in a corrective and supportive manner. This type of approach is
called positive approach or self-discipline or constructive discipline.
2. Negative aspect: employees sometimes do not believe in and support discipline. They do not
adhere to rules, regulations and desired standard of behavior. Disciplinary programme forces
and constraints the employees to obey orders and function in accordance with set rules and
regulations through warnings, penalties and other forms of punishment. This approach to
discipline is called negative approach or punitive approach or corrective approach. This is also
autocratic approach as the subordinates are given no role in formulating the rules and they are
not told why they are punished.
Indiscipline:
Indiscipline means disorderliness, insubordination and not following the rules and regulations of an
organization. The symptoms of indiscipline are change in the normal behavior, absenteeism, apathy,
go-slow at work, increase in number and severity of grievances, persistent and continuous demand for
overtime allowance, lack of concern for performance,etc.
Causes of indiscipline:
1. The goals or objectives of discipline should be clearly stated. The goals must be in clear and
unambiguous terms. It should specify the standards expected of the workmen.
2. Specific and clear rules and regulation must be laid in consultation with the workers. Such
rules and regulations should serve as a code of conduct for the workers and managers.
3. The code of conduct or rules and regulations should be communicated to all in the
organization. It must be understood in same manner by those who enforce the rules and
regulation and also by those who obey them.
4. Whenever a new employee joins the organization, he must be made to understand the rules
and regulations so that he may produce acceptable behavior.
5. The rules of conduct must contain provision for investigation and settlement of grievances
arising out of and during the course of employment.
6. Te discipline policy should lay greater emphasis on the prevention of the breach of discipline
than on the administration of penalties.
7. The approach of discipline should be positive and constructive.
8. The management should ensure that their own conduct and policies do not encourage breach
of discipline. This will promote self-discipline among workers.
9. The enforcement authority must be specified. The procedure for appeal against the
disciplinary action by the aggrieved party should also be provided.
10. The quantum of prescribed punishment in specified cases of indiscipline should be known.
11. All rules and regulation should be executed objectively and consistently.
12. Disciplinary action should not be vindictive or should not be used to victimize employees but
to prevent recurrence of indiscipline in future.
13. Penalties should be used only when it is absolutely necessary.
14. There should be suitable grievance procedure for the prompt redressal of all grievances of
employees. All awards and agreements should be implemented without delay and
discrimination.
15. A discipline committee may be constituted to look into the causes of indiscipline in the
organization and to suggest suitable measures for their removal.
Code of discipline:
In India the problem of industrial discipline was debated by the Indian Labour Conference held in
1957. The conference noted the alarming record of breach of discipline by employers and
employees. A subcommittee was appointed to draft a model of Code of Discipline which would
be acceptable to all. A Code of Discipline drafted was ratified by central organizations of workers
and employers at 16th session of the Indian Labor conference in March 1958 and it became
operative from1st June 1958.
Eliminating all forms of coercion, intimidation and violations of rules, regulations and procedures
governing industrial relations