Human Resource Management (English Version)-munotes

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MODULE - I
1
HUMAN RESOURCE MANAGEMENT
Unit Structure
1.0 Objective
1.1 Introduction
1.2 Human Resource Management
1.3 Summary
1.4 Exercise
1.5 References
1.0 OBJECTIVES After studying this unit the student will be able to -
 Describe the difference betwe en Traditional HRM and Strategic HRM
 Explain objectives of HRM
 Understand organizational structure of HRM department
 Understand changing role of HR manager in recent times
1.1 INTRODUCTION Human Resource Management (HRM) is evolved from the Personnel
manag ement which was former management system which used to
manage employees. To know evolution of personnel management it is
necessary to study the researches by great psychologists on human
behaviour. One among them was Elton Mayo (Australian psychologists),
did many experiments on human behaviour at different situations in 1924.
He was of the opinion that work life balance is essential for improving
productivity of workers. He emphasized on healthy human relations in the
organization influences the productivi ty of workers. Due to his great
contribution, he has been regarded as father of Human resources
management.
Going back to roots of evolution Personnel management, Robert
Owen was regarded as creator and originator for introducing reforms for
workers in his own Lanark cotton mills. He coined the slogan: 8 hours‟
day work, 8 hours recreation and 8 hours sleep. Owen identified the
significance of better working conditions at workplace and its impact on
the productivity and efficiency of the workers. Owen obse rved that after
implementation of better working conditions at workplace, there was
increase in the productivity and efficiency of his workers. He implemented
many social and welfare practices for his workers which resulted into his munotes.in

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2 Human Resource Management workers got happy, moti vated and worked better. Due to his such a great
contribution he was referred as father of Personnel management.
Let us see the root difference between Human Resource Management and
Personnel Management. Personnel management is the seed and root for
Human resources management. HRM is evolved from the Personnel
management. Personnel Management focused on to extract work from an
employee for the remuneration paid to them. During the Personnel
management era, employees were not involved in decision making proc ess
and were not much allowed to interact with management. Personnel
management was more confined to the factories. The main focus of the
Personnel manager was to see that everything was in compliance with the
labour laws or not. There was not much emphasi s made on the morale of
employees. Employees were just treated as tools, obligation to the
organization. They were not regarded as the asset of the organization.
They were considered as cost & expenditure to the organization rather
than capital and investm ent. Personnel officers mostly used be disciplinary
oriented instead of flexible and interactive with employees. There was no
nurturing of employees by the personnel managers. Employees
perspective was ignored which means rather than understanding situatio n,
the personnel manager used to be punitive if any error was committed by
employee. On the other hand HRM see employees from the perspective as
a most valuable resource for the organisation and they consider their
employees as assets and capital for their organisation.
1.2 HUMAN RESOURCE MANAGEMENT 1.2.1 Concept :
HRM is concerned with management of human beings in the organization.
Human resource management is a very important as well as challenging
job because of dynamic nature of employees. Every human b eing is
different in their mental abilities, tacticians, sentiments, and behavior.
They are subject to many varied influences. Human being are responsive,
they feel, think and act. Therefore they cannot be operated like machine or
shifted and altered like template in a room layout. They need to be
tactfully handled by management personnel.
HRM is the process of managing manpower of an organization with a
human approach. Through this approach an organization utilizes its
manpower for the benefit of organiz ation as well as for the growth and
development of human resources.
In order to achieve organizational goals it is necessary to acquire services
of manpower, develop their skills, and motivate them for high level of
performance and ensuring that they cont inue to maintain their
commitment to the organization.
HRM involves activities, policies and practices relating to recruiting,
developing, utilizing, evaluating, maintaining and retaining of employees
to accomplish the organizational goals. munotes.in

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3 HRM Human Resource Management is the process of recruiting, selecting,
inducting employees, providing orientation, imparting training and
development, appraising the performance of employees, deciding
compensation and providing benefits, motivating employees, maintaining
proper relations with employees and their trade unions, ensuring
employees safety, welfare and health measures in compliance with labour
laws of the land and finally following the Orders / Judgments of the
concern High Court and Supreme Court, if any.
1.2.2 Definition of HRM :
According to Edwin Flippo “HRM is planning, organizing, directing and
controlling of the procurement, development, compensation, integration,
maintenance and separation of human resource to the end that individual,
organizational and soc ial objectives are accomplished.”
According to the Invancevich and Glueck , “HRM is concerned with the
most effective use of people to achieve organizational and individual
goals. It is the way of managing people at work, so that they give their
best to the organization”.
According to Decenzo and Robbins , “Human Resource Management is
concerned with the people dimension” in management. Since every
organization is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organization is
essential to achieve organsational objectives. This is true, regardless of the
type of organization – government, business, education, health or socia l
action”.
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 b ring 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”.
1.2.3 Trad itional HRM V/S Strategic HRM :
1) Meaning :
Traditional Human Resources Management is a traditional method of
managing manpower in an organization so as to undertake organizational
activities or achieve short -term organizational goals. The objective of
THRM is to recruit and compensate employees for the activities
performed by them for the organization. There is less emphasis on relevant
employment tests & interviews at the time of selection. There is less
importance given to training & development of employees . They use
traditional performance appraisal techniques. The promotion by seniority munotes.in

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4 Human Resource Management is followed at all levels. They do not take special measures to retain
employees.
Strategic Human Resources Management is a modern and professional
approach so as to manage and develop the human resources in line with
the overall strategy of the organization. For example, when they recruit
new candidates, they consider future growth projections and goals of the
organization. They conduct relevant employment tests and interv iews
during selection of employees. It gives importance to training and
development of employees. The modern performance appraisal techniques
such as assessment centre, 3600 appraisal etc. are used. The promotion is
based on merit at all levels. They desig n special measures to retain
employees such as retention bonus, loyalty programs etc.
2) Reactive/Proactive in nature :
Traditional Human Resources Management is reactive in nature. When
workers make requests or cause problems, HR manager steps in and takes
action.
Strategic Human Resources Management proactive in nature. A strategic
HR department looks ahead and prevents problems.
3) Scope of Responsibilities :
Traditional HR has a narrow focus
 Their objective is to take care of employees and keep them happy and
satisfied
 They do not emphasis much on education of workers about their
rights and responsibilities
 They assume employees will pick up the training by themselves while
on the job
Strategic HR departments have a much broader mission:
 They undertake system atic recruitment and scientific selection of
employees
 They provide Training to employees from time to time.
 They draft an employee handbook that tells them what‟s allowed,
what‟s expected, and the disciplinary process when employees fall
short
 They find o ut ways to motivate employees so the company can meet
its productivity and profit goals

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5 HRM 4) Human Resource Forecasting :
Traditional HR focuses on current employees.
Strategic HR thinks about what a company will need in the future. How
many more staff will th ey need to hire? What qualification and skills
employees need to have? Then after HR manager prepares a strategic plan
to meet the future needs. Strategic HR‟s mission doesn‟t end there. The
department works actively to recruit skilled employees that the c ompany
needs. Strategic HR also works to develop and promote talent among the
existing workforce.
5) Resolving Problems :
Traditional HR steps in when employees have discipline problems or
causes trouble. It does nothing to prevent the problems from developing . If
a company wants a zero -tolerance policy on sexual harassment or
discrimination, traditional HR would make that known to employee when
such incidents happen in the organization.
Strategic HR is proactive rather than reactive. If a company wants a zero -
tolerance policy on sexual harassment or discrimination, strategic HR lets
employees know in the beginning about unacceptable behavior in the
organization. The employee handbook and training sessions emphasis on
how to behave, or not behave. In the long ru n, that can save the company
money on lawsuits and complaints.
6) Time span :
In Traditional HRM short term objectives of the organization are
accomplished.
Strategic HRM concentrates on achieving the long -term strategic
objectives of the organization.
7) Degree of Control :
In Traditional HRM there is strict management of employees.
Strategic HRM there is lesser degree of control over the employees and
the workforce regulations are less stringent. Employees are given more
freedom and independence to do the work.
8) Fundamental elements :
In Traditional HRM, the capital and products are considered as the main
elements.
In Strategic HRM, employees and their knowledge are considered as the
fundamental elements.

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6 Human Resource Management 1.2.4 Objectives of HRM :
1) To make available competent ma npower: HRM involves scientific
selection of candidate, right placement, timely training of manpower,
motivation and career development of manpower. All this helps to
make competent manpower available in the organization. Competent
manpower in turn brings growth and development in the organization.
2) To make optimum use of manpower: HRM involves placement of
right candidate in right department after their scientific selection. The
candidates are provided training where they are imparted job related
knowledge and skills. This results into optimum use of manpower.
If organization places candidates in wrong department and they are
not provided required training, in that case efforts and competency of
manpower will be wasted.
3) To motivate manpower: Proper human resource management
(scientific selection, right placement, training of manpower,
performance appraisal and promotion of manpower) results into
improving performance of employees. Employees are rewarded for
their better performance. The reward is in the fo rm of higher salary,
incentives, award and certificates, appreciation and recognition etc.
results into motivation of manpower.
4) To boost morale of manpower: Morale is a state of mind or
willingness to work. When an organization undertakes effective
human resource management it boosts morale of employees. High
morale results into loyalty on the part of employees towards work. It
also results into team work in the organization.
5) To facilitated career development of manpower: Under HRM
employees are provided t imely training sessions, which enhances
knowledge and skills of employees. Employees are provided
counseling by their superior to overcome job related issues. They are
also provided challenging task, which is necessary to identify
potential in employees. S o training, counseling and challenging task
facilitates career development of employees.
6) To improve labour -management relations: HRM involves
scientific selection of candidate, adequate placement, timely training
of manpower, motivation to manpower and ca reer development of
manpower, adequate performance appraisal, promotion etc. There is
clarity of role and responsibilities related to job. So the dispute does
not take place between labour and management. A healthy lab our-
management relation helps to impro ve performance of organization.
7) To enhance corporate image: Effective HRM results into employee
satisfaction at workplace and their morale is boosted. When
employees are happy they work with dedication and commitment.
They perform well in the organization and provide good services.
This results into enhanced corporate image among stakeholders. munotes.in

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7 HRM 8) To achieve organizational goals: Effective Human resource
management (scientific selection, right placement, training of
manpower, performance appraisal and promotio n of manpower)
improves efficiency and performance of employees and the
organization can achieve its goals such as higher returns, customer
satisfaction, expansion of business, social activities etc.
1.2.5 Organizational Structure of HRM Department :
The ma in function of HR department is to manage department functions as
well as employees by planning, implementing, and evaluating human
resources policies, principles, and programs. Basically, it involves
functional activities including selecting qualified man power, deciding
compensation structure, training employees, handle employee relations
matters, and maintaining safety at workplace Following is the
organizational structure of HRM department:

1) HR Acquisition Department:
 Job Analysis: Here the HR manager collects information related to
the operations and responsibilities of a specific job which falls vacant
/ needs to fill up. This is required to post an advertisement.
 Recruitment: It is a process of searching for prospective employees
and stimulating them to apply for jobs in the organization. Here HR
manager posts advertisement in a newspaper or website. Eligible
candidates apply for the job.
 Selection: Here the HR manager scrutinizes job applications received
and eligible candidates are called for an int erview. After face -to-face
interview, most deserving candidate is selected for the job..
 Placement: Here HR manager places right candidate in the right
department depending on their skills and abilities. Eg. If the candidate
has the knowledge of accountanc y, he is placed in accounts munotes.in

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8 Human Resource Management department. Right placement can bring job satisfaction, motivation
and commitment among employees
2) Training and Development Department :
Effective training enhances knowledge, skills and work abilities of
employees. This results i nto improvement in their job performance. This
department conducts „needs analysis‟ to decide what training is necessary
to improve performance and productivity of employees. They conduct on-
job-training or off -job-training depending on the nature of job.
3) Compensation and Employee Welfare Department :
This department is responsible for paying proper compensation to the
employees. HR manager needs to establish strategic compensation plans,
ensuring wages and reward programs are administered equally throughou t
the workforce.
HR manager is also responsible for employees‟ welfare which includes
crèche facilities, canteen facilities, recreation facilities, rest rooms,
transport facilities, employee‟s group insurance, and so on.
Appropriate compensation and welf are facilities motivate the employees
and make them committed and dedicated towards their organization.
4) Employee Relations Department :
This department is responsible for investigating and resolving employee
complaints, conflicts and concerns. There could b e many grievances arise
in a company related to compensation, working condition, management
policies, nature of superior, disciplinary action etc. For example, an
employee is not satisfied with his performance appraisal result and asks
for its revision. If this kind of circumstance happens, the HR department
needs to research on this issue, and resolve the problem at earliest.
5) Workforce Safety Department :
A safe and healthy work environment is the basic right of every employee.
This department needs to ensu re every employee working in a safe
environment. It‟s their obligation to research and develop safety policies
for the company that is in compliance with state and federal laws and
regulation. They need to identify unsafe conditions and make clear notice
on potential dangerous matters such as dangerous equipment, chemical
drugs, radioactive substances, etc. It is the duty and responsibility of every
organization to provide appropriate health and safety measures to its
employees such as medical check -up, fir st aid training, fire drill, structural
audit, maintenance check, seminars and workshops on health and hygiene
and so on.
6) Career Planning and Development Department :
 Performance Appraisal: It refers to systematic description of
employees job related streng ths and weaknesses. The superior munotes.in

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9 HRM evaluates performance of employees and prepare their performance
appraisal report. Employees are evaluated on the basis of quality of
work, quantity of work, behavior at workplace, speed of work,
initiatives, innovations et c. This report helps to overcome weakness of
the employees through training program. This report is also required
for increment and promotion related decisions of employees.
 Promotion: Promotion refers to vertical movement of employee with
higher pay and h igher position. When performance of an employee is
better on continuous basis, such employee is promoted to higher level
where he/she enjoys higher position, carries higher responsibilities,
status and pay.
 Career Development: Career development refers to the activities and
actions undertaken primarily by an employee and supported by the
management to achieve individual career goals. The HR manager
provides training, motivation, counseling, challenging task etc. to the
employees. So that career development of employees takes place.
7) Labour Law Compliance:
Compliance with labor and employment laws is a critical HR
function. Various labour laws include Industrial Disputes Act, Factories
Act, Social Security Act, Prevention of Sexual Harassment Act, Payment
Gratuity Act, Workmen Compensation Act etc. The department looks after
compliance of all applicable labour laws.
1.2.6 Changing Role of HR Manager :
As the 21 century pose significant challenges, HR managers need to
master new skills to address the emerging c hallenges. Successful HR
managers will be those who can effectively manage more flexible working
environments, motivate employees and team performance, balance
stakeholder interests etc. The role of HRM manager is changing
drastically. HR managers need to maintain their skills of the last decade
and master the additional tools and techniques of the next.
1) Managing Workforce Diversity:
Workforce diversity refers to variety of difference among employees of
the organization related to their age, gender, race, physical abilities,
education, marital status, cultural background, religion, experience, skills
and so on. So due to workforce diversity, the HR manager may have to
face challenge of:
 Framing policies for the organization becomes difficult as different
groups may have different expectations.
 Attitudes, goals, behaviour etc. of different employees may be
different which may lead to conflicts.
 Many employees are not comfortable working with people of a
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10 Human Resource Management  Workforce diversity may lead to absenteeism and higher turnover.
 The organization has to be culturally sensitive as a particular action,
decision etc. may not be perceived in the same manner by different
groups in the organization.
To overcome these challe nges the HR manager needs to undertake:
 Forming groups of employees belonging to different age, gender, race,
physical abilities, education, experience, skills
 Organizing informal get together
 Celebrating different festivals
 Design canteen menu having foo d items from different states/countries
 Fair personnel polices of transfer, promotions, training etc.
2) Dealing with Employee Attrition:
Employee attrition refers to employees leave the organization due to job
dissatisfaction or new opportunities in the ma rket. Employee attrition of
competent and loyal employees is a big problem for HR manager. Reasons
of employee attrition may be:
 Inequality in compensation
 Limited career opportunities
 Mismatch of job profile
 Work overload and work -life imbalances
 Odd wor king hours / early morning – night shifts.
 Monotony of job
 Organizational instability
 Raises and promotions frozen
Retention of competent and loyal employees is vital to enjoy competitive
advantage in the market. Therefore, HR manager must come up with
innovative practices and rewards to retain such employees. Retention
practices and rewards include:
 Right placement
 Adopting stress management techniques
 Providing Employee Stock Option Plan (ESOP) plan
 Employee involvement in decision making
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11 HRM 3) Dealing with Employee Downsizing:
Many organizations undertake organizational restructuring to reduce their
cost and improve efficiency. Downsizing is one of the ways of
organizational restructuring where organization reduces its workfo rce due
to:
 Saving cost
 Merger and acquisition
 Change in top management
 Economic crisis
 Surplus staff
 Automation and outsourcing
HR manager need to handle downsizing situation very carefully which
may involve:
 Immediate payment of compensation package to l ayoff employees so
that they do not face financial problems post retrenchment
 Clearly explain reasons for layoff
 Communicate with employees who are not likely to be downsized as
downsizing may affect their morale
 Helping downsized employees in getting new job
 The retrenchment policy should be properly communicated to the
employees
 Counseling sessions for those who are likely to be retrenched as such
employees are likely to be under tremendous stress
4) Dealing with Employee absenteeism:
Absenteeism refers t o when employee remain absent often without
permission. The causes of absenteeism may be:
 Job dissatisfaction
 Lack of motivation at workplace
 Non-cooperative team members
 Workload
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12 Human Resource Management The HR manager should tackle problem of employee absenteeism
tactfully. Manager should identify the causes of absenteeism, keep track of
absenteeism, and give reward for best attendance and so on.
5) Maintain employee Work -Life Balance:
Work -Life balance refers to maintaining healthy balance between career
and person al / family responsibilities. Imbalance in work and personal life
of employees adversely affect their work as well as family life. So the HR
manager should maintain work -life balance of employees by way of:
 Offer flexible working hours to employees
 Encoura ge employees to use their annual leaves
 Implement wellness programs for employees
6) Dealing with cases of Sexual Harassment at workplace:
Sexual harassment at workplace has become one of the biggest challenges
before HR managers. In April 2013, the Parliam ent passed the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, for prevention of sexual harassment of women at the
workplace. This Act has stronger enforcement mechanism. The act
imposes certain obligations on all emplo yers, to ensure prevention sexual
harassment at the workplace. As per this act:
 Every employer is required to constitute an Internal Complaints
Committee at each office or branch with 10 or more employees. The
District Officer is required to constitute a L ocal Complaints Committee
at each district.
 The Committee is required to complete the inquiry within a time period
of 90 days. On completion of inquiry, the report will be sent to the
employer or the District Officer, as the case may be, they are mandated
to take action on the report within 60 days.
The HR manager needs to undertake some measures to avoid sexual
harassment at workplace such as:
 Lay down the procedure which can be followed for filing and
investigating sexual harassment complaints. It should be explained in
simple terms.
 Clearly orient the employees in the induction and other training
programs about the company‟s policy on sexual harassment
 A counselor can be appointed to provide assistance pertaining to
offering guidelines in knowing legal o ptions available to the
aggrieved employee
 The complaints should be handled with sensitivity. The organizations
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13 HRM 7) Management of changes:
Business environment is dynamic in nature. Al the factors around bu siness
keep on changing which includes change in organizational plans and
policies, management philosophy, Government policies, Technology,
competitor‟s strategy, consumer preferences and so on. The organization
may also undertake corporate restructuring s uch as acquisition and merger.
Sometimes employees resist to accept such changes. To overcome this
situation the HR manager needs to:
 Train and counsel the employees
 Develop positive attitude towards change
 Secure willing cooperation on the part of employe es
8) Managing legal and compliance issues:
Increasing significance of corporate governance, consumerism, concern
for high security and privacy compel the HR personnel well versed with
local as well as international laws. New and better polices will be requi red
for the work force of the future.
9) Managing Technology:
All organizations want to be technologically oriented. They want their
employees to quickly adapt and learn the new technologies. HR manager
have to attract the right people with required knowledg e and train the
employees, motivate them to learn, absorb and come out of their comfort
zones.
1.3 SUMMARY Human Resource Management is a process of bringing people and
organization together so that the goals of each are met. It is the part of the
manageme nt process which is concerned with the management of human
resources in an organization. It tries to secure best from the people by
winning their whole hearted co -operation. In short, it may be defines as
the art of procurement, developing and maintaining competent workforce
to achieve the goals of an organization in an effective and efficient
manner.
1.4 EXERCISE Fill in the blanks :
1) Strategic HRM takes __________ decisions relating to human
resources. ( Proactive , Reactive, Hurried)
2) ____ _ is one of the func tions of Human Resource Management.
(Financial Management, Inventory Management, Recruitment &
selection ) munotes.in

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14 Human Resource Management 3) HR manager faces _______________ challenge. (Listing of shares on
stock exchange, Foreign Exchange rate fluctuation, Workforce
Diversity )
4) ____________ _ regarded as father of Human resources management.
(Elton Mayo , Philip Kotler, Merry Parkar)
5) ___________ involves activities, policies and practices relating to
recruiting, developing, utilizing, evaluating, maintaining and retaining
of employees to accom plish the organizational goals. (Placement,
Selection, HRM )
True or False :
1) Strategic Human Resources Management is a modern and
professional approach so as to manage and develop the human
resources in line with the overall strategy of the organization. TRU E
2) Recruitment refers to employees leave the organization due to job
dissatisfaction or new opportunities in the market. FALSE
3) Employee relation department is responsible for investigating and
resolving employee complaints, conflicts and concerns. TRUE
4) Trad itional HRM is proactive in nature. FALSE
5) Career Planning an d Development is a process of searching for
prospective employees and stimulating them to apply for jobs in the
organization. FALSE
Match the Pairs : Group - A Group – B 1) Robert Owen a) To make available competent manpower 2) Training and Development Department b) coined the slogan: 8 hours‟ day work, 8 hours recreation and 8 hours sleep 3) Objective of HRM c) Recruitment and Selection 4) Functions of HRM d) Employee Attrition 5) Challenge for HR manager e) Enhances knowledge, skills and work abilities of employees (1-b, 2 -e, 3 -a, 4 -c, 5 -d)
Answer in brief:
1) Distinguish between Traditional HRM v/s Strategic HRM
2) Explain the objectives of HRM.
3) Discuss the organisation Structure of HRM Department.
4) Explain the c hanging Role of H.R. Manager.
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15 HRM 1.5 REFERENCES  https://www.whatishumanresource.com/human -resource -management
 http://www.dspmuranchi.ac.in/pdf/Blog/abcdefgmailcomunit%2011.p
df
 https://www.hrmexam.com/2019/09/18/the -difference -between -
strategic -traditiona l-hr/
 https://www.businessmanagementideas.com/differences/difference -
between -strategic -hrm-and-hrm/20803
 https://krannert.purdue.edu/masters/news -and-media/blog/traditional -
vs-strategic -hr-management.php
 https://www.orgcharting.com/hr -department -organizational -chart/
 https://www.jobsoid.com/difference -between -job-description -and-job-
specification/
 https://www.mbaknol.com/human -resource -management/factors -
influencing -recruitment -process/
 https://www.termscompared.com/human -resource -management -vs-
strategic -human -resource -management/


*****

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16
MODULE - I
2
HUMAN RESOURCE PLANNING
Unit Structure
2.0 Objective
2.1 Introduction
2.2 Human Resource Planning
2.3 Recruitment and Selection
2.4 Summary
2.5 Exercise
2.6 Reference s
2.0 OBJECTIVE After studying this unit the student will be able to :
 Describe the about the Human Resource Planning (HRP)
 Explain about Recruitment and Selection of managerial personnel
2.1 INTRODUCTION Human resource is the most important asset of an organisation. Human
resources planning are the important managerial functi on. 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. In order to cope human resource requirements,
an enterprise will hav e to plan in advance its needs and the sources.
2.2 HUMAN RESOURCE PLANNING (HRP) Human resource planning (HRP) is an important aspect of human resource
management (HRM). HRM starts with HRP. From HRP the HR manager
identifies how many people are availabl e in the organization and how
many people they will need in future. Based on this analysis, decisions
related to human resources are taken in the organization such as whether
to recruit more number of employees or remove excess employees (if
any).
2.2.1 De finition:
According to William F. Glueck “Human resource planning is the
process by which management attempts to provide adequate human
resource to achieve organization objectives.” munotes.in

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17 HRM HRP can be defined as “a process of predetermining future human
resources needs and course of action needed to satisfy those needs to
achieve organizational goals.”
2.2.2. Steps Involved In HRP: HUMAN RESOURCE PLANNING HR Requirements HR Availability No Difference Difference HR Shortage HR Surplus No Action Take Action Comparison

The above chart shows that:
 The HR manager finds out HR requirement and HR availability in the
organization (in each department)
 The HR manager compares HR requirement and HR availability
 After comparison either there can be difference or no difference in
HR requirement and HR availability
 If there is no difference between requirement and HR availability, no
action is required to be tak en.
 If there is difference (surplus or shortage), necessary action is taken
such as if there is surplus of manpower, excess employees are
removed and if there is shortage of manpower, new employees are
recruited.
2.2.3. Factors Affecting HRP:
1) Company stra tegies: The companies may undertake growth strategy
or retrenchment strategy. E .g. If company undertakes oath strategy
which includes expansion and diversification, merger, joint venture,
takeover or acquisition. In such strategies a company may require
more number of human resources. If the company undertakes
retrenchment strategy which includes divestment strategy, liquidation,
turnaround etc. In such strategies a company may downsize the
number of human resources. So HRP depends upon company
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18 Human Resource Planning 2) Introduction of technology: Introduction of technology may affect
HRP. E.g. Computerization of certain activities or automation will
require less number of human resources for manual work. At the same
time, it may provide opportunities to qualified / skilled human
resources.
3) Management Philosophy: Some organizations follow traditional
management philosophy and some follow professional management
philosophy. The organizations that follow traditional management
philosophy may not place much emphasis on findin g out human
resource requirement and human resource availability in the
organization. They may not bother for surplus or shortage of
manpower. But the organization that follows professional
management philosophy may periodically find out human resource
requirement and human resource availability in the organization.
Depending on surplus or shortage of manpower they take appropriate
action to ensure that required number of manpower is available in the
organization.
4) Outsourcing: These days many organizations are outsourcing their
activities to other specialized agencies in order to reduce their cost.
Outsourcing reduces human resource requirement in the organization.
So depending on outsourcing of activities, an organization undertakes
HRP.
5) Labour Laws: Gover nment regulations relating labour laws may also
impact the HRP process of an organization. Companies are required
to adhere to certain labour laws relating recruitment, firing,
compensation, work hours and health insurance. If companies fail to
follow thes e labour laws can result into heavy fines.
6) Competitive Environment: There has been increasing competition in
the all business sectors. In order to face competition the organization
needs to be proactive and professional. To gain competitive advantage
in the market, the organization needs to undertake systematic HRP.
They need to find out availability of human resources (quality and
quantity wise) in an organization. They also need to find out
requirement of human resources (quality and quantity wise) in an
organization. This enables firm to face the stiff competition and
survive.
7) Corporate Image: The HR manager needs to consider image of the
organizational while undertaking HRP. Positive corporate image is
necessary to get support from stakeholders. The ava ilability of
manpower in the organization greatly contributes to the development
of corporate image. Organization which enjoys a good corporate
image will make efforts to select right candidate, train and motivate
them. Therefore, HRP will include programm es and procedures
relating to selection, training, motivation and compensation of
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19 HRM 8) Availability of funds: The availability of funds greatly influences
HRP decision in respect of selection, training, motivation and
compensation of employees. An organization must make provision for
funds especially to improve quality of manpower. Funds are required
for systematic selection and training of employees and also for
motivation and maintenance of workforce.
2.2.4 Human Resource Information System (HRIS ):
HRIS is an HR software package that is used to collect and store data of
employees. It is a computerized system facilitates the organization to store
information relating to employees, their abilities, qualifications,
potentialities, creative instincts, age, pay scales. It also includes various
jobs in the organisation, their required skills and qualifications to do them,
the number of employees and executives handling various positions,
organisational objectives, policies and procedures etc.
This infor mation is loaded into the system and analysed. It helps HR
manager in decision making relating to human resources such as
promotions, training requirement, disciplinary action, increment,
incentives and so on.
According to Kleynhans, HRIS is “ a computerize d system that enables
human resource managers to gather, organize, store, update and retrieve
the information needed for managing employees. ”
2.2.5 Functions of HRIS:
1) Recruitment: This software handles all the company’s recruiting
needs. It enables onlin e job advertisement on company website and
invites job application from interested candidates. HRIS also
facilitates pre -screening of job application and creates online resume
database.
2) Payroll: HRIS provides information about employee attendance,
leave, o vertime, deductions such as tax etc. based on this information
salary slip of employee is generated at the end of every month.
3) Time and Attendance: Biometric (Attendance machine) is often
synced with HRIS. Workers often check into work they finger print o r
swipe card into biometric. This gives an exact time of arrival and
departure of employee. Issue of worker’s lateness is easily detected.
4) Training: HRIS allows HR manager to track information about the
employees such as skills, strength and weaknesses. A ccordingly
training sessions can be organized. HRIS also provides details about
various training sessions organized, various areas covered in the
training session (communication, presentation etc.), number of
employees who were provided training, period of training etc.
5) Performance Appraisal: Performance appraisal is evaluation of
employees job related strength and weakness. HRIS maintains
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20 Human Resource Planning and score of each performance criteria (behavior , punctuality, speed
of work, quality of work etc.) Such information is very useful for
taking decision relating to promotion, increments, training need and
so on.
6) Administration of employee benefits: An organization may provide
various benefits to its emp loyees such as perks, special incentives,
insurance, and profit sharing and retirement benefits. HRIS keeps
track of employees who are eligible for these benefits.
7) Reporting and Analytics: HRIS enables the creation of automated
HR reports on various areas such as employee turnover, absenteeism,
performance and so on. Analytics involves the analysis of these
insights for better -informed decision making.
8) Human Relations: HRIS provides up -to-data and accurate data to
employees. It also helps HR manager to des ign effective HR policies
and implement healthy practices which helps to develop healthy
relationship between employee and employer. In other words,
inaccurate data/information can lead to disputes between employee
and employer. But HRIS helps to avoid suc h disputes.
2.2.6. Job Analysis:
Job analysis is a process of collecting information about a job. Job
analysis is done after human resource planning (HRP) and prior to starting
the process of recruitment and selection. Let us understand it with an
example.
 The HR manager finds out human resource requirement and
availability in the organization. He/she will compare human resource
requirement with availability to find out whether there is surplus or
shortage of human resources in the organization. Depending on
surplus or shortage of human resource, HR manager takes necessary
action. This is called HRP .
 If there is shortage of employees in a particular department then job
details are collected of the jobs. E .g. If there is shortage of employees
in the accounts department then job details are collected of the
accounts job such as preparing cash vouchers, finalization of
accounts, taxation etc. This is called as Job Analysis .
 After collecting details of the job, the HR manager publishes job
vacancy on the compan y website or in the newspaper or in other
source and job applications are invited. Interested candidates apply for
the job after reading the advertisement regarding job vacancy. This is
called Recruitment.
 After receiving job applications, the HR manager d oes screening of
the applications. Eligible candidates are called for an interview. Their
face to face interview is conducted and best candidate is selected for
the job. This is called as Selection . munotes.in

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21 HRM According to Edwin Flippo, “Job Analysis is the process o f studying and
collecting information relating to the operations and responsibility of a
specific job.”
There are two aspects of job analysis :
 Job Description
 Job Specification Job Description (Details of vacant job)  Job Title  Job Location  Responsibilities and Duties  Salary and allowances  Incentives Job Specification (Details of Candidate)  Educational Qualifications  Experience  Required Skills and Knowledge
A. Job Description:
A job description is the detailed information of the vacant job such as job
title, job location, job responsibilities and duties, salary and incentives etc.
Job description provides information to the candidate hunting for job if
they would be a good fit for the job.
In other words, job description is a concise written statement, expl aining
about major requirements of a particular job. The preparation of job
description is very important before a job vacancy is advertised.
Components of Job Description:
1) Job Title: It specifies designation. E .g. Account Executive,
Receptionist, Chief F inance Officer etc.
2) Job Location: It specifies location where selected candidate will be
working.
3) Job Responsibilities and Duties: It specifies various job related
activities that candidate has to perform and is accountable for. E .g.
For accounts departmen t job vacancy job responsibilities and duties
would be preparing cash vouchers, finalization of accounts, taxation
etc.
4) Salary and Allowances: It specifies salary offered by company for
performing the job advertised. The salary may or may not be
negotiable . Allowances include house rent allowance, dearness
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22 Human Resource Planning 5) Incentives: It includes extra money paid to the employees upon
completion of their target.
B. Job Specification:
A job specification is the information of candidate need ed to perform a
particular job. It includes educational qualification, skills, knowledge,
experience, training (such as computer course) etc.
In other words, job specification is a statement in which the qualities
required by candidates applying for job i s explained.
Components of Job Specification:
1) Educational Qualification: It specifies academic knowledge required
including graduation, post -graduation and such other qualification.
E.g. For Account job position the educational qualification required is
B.Com/ M.Com. For finance job position the educational qualification
required is MBA (Finance).
2) Experience: It specifies number of prior work experience required to
apply for the job. Some jobs may allow fresher to apply. E.g. For job
positions such as Chief Finance Officer (CFO), a company may ask
for prior work experience. But for an account executive job, the
company may not ask for any prior work experience i.e. even fresher
(with no prior work experience) may apply.
3) Required Skills and Knowledge: It spe cifies particular skills and
knowledge that are required to accomplish the task. E .g. Computer
basics, tally, English communication etc.
Example of job description and job specification in a newspaper
advertisement


Source : shorturl.at/elAP3

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23 HRM 2.2.7 Psy chological and Behavioural Issues In HRP:
HRP main function is to maintain the demand (requirement) and supply
(availability) of one of the most important factors of production i.e. human
resources. Human as factor of production is one of the most vulnerab le
and dynamic aspect.
Lot of aspects are involved when it comes to appointing right person, at
right time for right job. An HRP manager needs to consider many
psychological and behavioral issues in the process.
By taking psychological and behavioral facto rs into account, one can
retain quality employees and meet current and future requirements
easily.
1) Work Environment: Employees do not feel like going to work when
they have strict bosses. It is important to give an environment where
employees need to stand by with their team. Guidance will help them
in their day to day operations and help them acquire new skills and
upgrade their knowledge.
2) Work Culture: Employees need to be given comfortable workplace
to stay positive and happy. Rules and regulations shou ld be same for
everyone. Employees ought to be encouraged to respect their
reporting bosses and follow the code of ethics. Transparency at all
levels is essential Job security is one of the most crucial factors
affecting employee behaviour.
3) Job Responsibil ities: Employees should be asked to do what best
they can perform. As if they are overburden their efficiency will be
impacted. They should be encourage to upgrade their skills from time
to time
4) Effective Communication: Managers need to communicate
effect ively with team members. The moment, employees feel left out,
they lose interest in work. They need to have a say in organization’s
major decisions. Their participation in decision making will help them
to develop belongingness.
5) Relationship at Work: It is necessary to have good relationship at
the workplace. They need people around to talk to, discuss and share
experiences. It is really not possible to work in isolation. Not allowing
employees to interact with fellow workers leads to frustration and
stress at workplace.
6) Compensation Issues: Compensation includes salary, bonus and
other incentives. The HR manager should study human behaviour in
difference situation and at different time. Accordingly employees
should be provided incentives. E .g. An organisat ion needs to provide
individual incentives as well as group incentives. If the employee is
provided with individual incentives, then, the team spirit may get
affected. If the employee is provided with group incentives, then, the munotes.in

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24 Human Resource Planning individual performance of t he employee may get affected. Also, the
employees may not be satisfied when then are provided with non -
monetary incentives, when they are required monetary benefits.
7) Issue of Career Development opportunities: Career development
refers to deciding career g oals of employees and providing them
opportunities to achieve those goals. Career development programmes
includes promotion opportunities, training and development
opportunities, providing challenging task to employees etc. If an
organization does not prov ide career development opportunities to
their employees, it may lead to employee turnover of competent
manpower.
Ways to Improve Employees Behaviour:
1) Acknowledge the hard work of employees: Appreciate employees
in front of others, for them to feel motivat ed and perform better even
the next time. They would not only feel good about the organization
but also encourage others to work harder. Correct feedbacks will help
them to be motivated and perform better or improve. If the hard work
of employees goes unn oticed, they would never feel like working and
often think of changing their jobs. Reward them suitably. It is
essential to value each individual’s contributions.
2) No employee is overburdened: Roles and responsibilities of
employees ought to be as per thei r specialization, interest level and
expertise. Job mismatch leads to confusions and employees eventually
lose interest in work. In such cases, they often waste their time in
browsing useless websites, chatting with friends and doing all sorts of
unproduct ive task.
3) Rules and regulations of organization: Clarity in terms of what is
expected from employee should be clearly informed to them in the
form well laid rules and regulations. This will help them in better
understanding and they will be in position to be disciplined.
Ambiguity in this regards will lead to non -compliance.
4) Do not criticize employees who do not perform well: Criticizing
employees will not only demotivate the employees but also make
them feel left out. It is important to deal with them inte lligently.
Criticism reduces the efficiency of an employee and he will face lot of
stress. This will impact the labour productivity and in turn overall
performance.
2.3 RECRUITMENT AND SELECTION Recruitment refers to searching candidate for the vacant job in the
organization and stimulating them to apply for the job.
Here the HR manager publishes an advertisement related to job vacancy in
the newspaper or website or any other source and job applications are
invited from the eligible candidates. The interes ted eligible candidates
apply for the job by referring the advertisement. The organization munotes.in

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25 HRM undertakes screening of the applications received and list is prepared of
the eligible candidates whom they will call for face to face interview. This
entire process is known as recruitment .
Selection refers to choosing right candidate for the right job from those
who have applied for the job.
Here the HR manager undertakes screening of the job applications sent by
candidates and interview letter is sent to the eligib le candidates. Sometime
employment tests are conducted if there are many applicants. Those who
qualify employment tests are called for face to face interview. After
extensive interview the best candidate is selected for the job. This process
is called Selection .
2.3.1. Factors Affecting Recruitment Process :

A) Internal Factors :
1) Size of organization: The size of organization affects recruitment
process. Large size organization may find recruitment process less
problematic as well as they can attract more competent candidates.
Eg. If organizations like Infosys, TCS or any other large organization
when advertise for a job vacancy, they receive many applications
from well qualified and competent candidates. This is because
everyone wants to work with large o rganizations because of their
excellent HR policy. On the other hand, small organizations may face
problem in getting competent manpower. This is because as discussed
above, most of the competent candidates are looking for better
opportunities which they may get in larger organizations and may not
get in small organizations.
2) Recruitment policy: The recruitment policy of the organization
include recruitment from internal sources (from within the company)
and from external sources (from outside the company) also affects
recruitment process. Some organizations may prefer recruitment
within the organizations because it consumes less time, candidate can
well fit into organization’s culture and candidate is familiar about
organizational policies so no need of or ientation training. On the other
hand some other organizations may prefer candidates from outside.
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26 Human Resource Planning who may not be available within the organization and outside
candidates may also get opport unity.
Some organizations may follow government norms while undertaking
recruitment. They may reserve certain job vacancies for reserved
category, divyang and females. Some other organizations may recruit
only experienced candidates so that they need not to invest in training
of new candidates.
3) Salary offered: Salary offered is another important factor which
affect to the recruitment. Some companies offer handsome amount of
salary to their employees so they are able to attract more applicant for
the job. Even competent candidates apply in those companies where
they are paid well. While there are some other companies which are
not offering good amount of salary to their employees so they are not
able to attract more applicant for the job.
4) Benefit package o ffered along with salary: Benefit package
includes insurance, paid leave, food allowance, tuition fees
reimbursement, travelling allowance, house rent allowance and so on.
So the organizations which are offering benefits package along with
salary are able to attract more number of job applications and that too
highly qualified candidates. On the other hand organization which
offers only salary and does not offer benefits package, are able to
attract few number of applicant for job.
5) Cost of recruitment: Cost of recruitment needs to be considered
while undertaking recruitment process. Sometimes organization may
allocate insufficient budget for recruitment process. In such a case HR
manager has to put extra efforts to search qualified candidate and
sometimes th ey won’t be able to meet requirement of vacant position
in the organization. Whereas in other situation if the budget is more
enough for recruitment process, the organization can attract a
qualified, competent and experienced candidate.
6) Growth and Expansi on: The HR manager has to keep in mind about
future growth and expansion of business and accordingly undertake
recruitment process. If the company is going for expansion of its
business in new areas or start new branches, accordingly they should
undertake recruitment process.
B) External Factors :
1) Demand and supply of labour: If there is huge supply of applicant
for a position vacant in any organization then organization will have
an opportunity to fulfill the vacant position with their desire standard.
But if there is huge demand but shortage of supply of applicant then
the organization will not meet the requirement of the position. In
such case the organization has to offer good salary and benefit
package to attract the candidates.
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27 HRM 2) Image / Goodwill of the organization: There are many orga nizations
that enjoy good image/ goodwill in the market. Such organizations
offer better salary and benefits to their employees. They also take
good care of their employees. Such organizations have good potential
of long r un survival and growth in the market. So the employees can
have better career development in such organizations. HR manager of
such organizations have to put less efforts in recruitment process. On
the other hand there are some organizations which are new and ye t
they have not built its image/ goodwill in the market. Such
organizations have to put more efforts in recruitment process.
3) Unemployment rate: Unemployment rate plays crucial role in
recruitment process. HR manager has to look after the unemployment
rate in the area where organization is located. If the unemployment
rate is high in that location, HR manager has more applications with
high qualification and they don’t have to negotiate the salary with the
candidate. They may not offer benefit package to the employees. If
the unemployment rate is low in that location, HR manager will not
get many applicants and has to pay more than what deserve. HR
manager has to compromise with the qualification, skill and
experience of the candidate. They have to offe r them benefit package.
4) Competitors: Competitors would always look forward to grow up
and have competent employees so their profitability will increase. As
competition intensifies in the market, the demand for competent
manpower increases. So the organiza tion should frame suitable
recruitment policy to attract and retain loyal and competent
manpower. They may have to modify the recruitment policy
depending upon the HR policy of competitor.
5) Pressure Groups: Recruitment process is also being governed by
pressure groups, such as:
 Trade Union
 Politicians
 Internal employees
2.3.2. Role of Recruitment Agencies :
Recruitment agency is an intermediary between a company (who is
looking for a candidate to fill up its vacant position) and a candidate (who
is a job see ker). So the role of recruitment agency is to find the most
suitable candidate for a vacant position in an organization of a recruiter
who has appointed them.
In other words, a recruitment agency assists businesses in meeting their
human resource requirem ents as well as serving needs of job seekers. So it
is important for recruiters to appoint recruitment agency who finds
candidate for vacant position more quickly and easily.
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28 Human Resource Planning Following are some of the roles of recruitment agency:
1) Profiling/ Database: The recruitment agency creates its database of
the candidates searching for job. As per the job description (details of
job) - required important skills and attributes provided by the
company, the agency gathers as much information as possible to
identify and attract the best possible candidates for the job.
2) Sourcing: The recruitment agency shall search their own database
and networks for qualified candidates. As per the requirement of
candidate by the company, the recruitment agency makes a list of
potential candidates and set up interviews for the same.
3) Interviewing: This is a two -fold process
 The agency shall interview the candidates to get a better knowledge of
the candidates and to decide if they might be matches for the
company.
 The agency then narrows the list of candidates for the final interview
with the company.
4) Job offer extension and negotiation: Once a candidate is shortlisted,
the agency shall work with the company to handle job offer and
negotiations related to terms of job with the candidates. With this the
agency saves time and energy of the company.
5) On boarding: Once the job offer has been accepted by the candidate,
the agency assists the company with employee on boarding process
which means helping with the necessary paper work for employment .
6) Training: Recruitment agencies may also conduct training
programmes for employees in order to impart them knowledge,
develop job relevant skills, orient new employees with company
management and policies etc.
2.3.3. Online Process of Selection :
1) Receiving Applications: The candidate looking for a job refers to the
advertisement in newspaper or company website regarding vacant
positions in the organization. Potential candi dates apply for a job via
email/ mail or they can fill up application form available on the
website of the company. The application gives the interviewers
information about the candidates like their educational qualification,
skills, work experience, hobbies and interests.
2) Screening Applications: After receiving job applications, they are
screened by a screening committee. If the application is found proper
and complete, a list of eligible candidates is prepared whom online
intervie w call letter is sent via email/ mail. The screening committee
select applicants on special criteria like qualifi cations, work
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29 HRM 3) Employment Tests: The organization conducts employment tests to
gauge their talents and skills of the candidates. Various employment
tests can be conducted such as intelligence tests, aptitude tests,
proficiency tests, persona lity tests etc.
4) Online Employment Interview: The next step in the selection
process is the online employee interview. Online employment
interviews are done face to face to identify a candidate’s skill set and
ability to work in an organisation in detail. P urpose of an employment
interview is to find out the suitability of the candidate and to give him
an idea about the work profile as well as what is expected of the
potential employee. An online employment interview is critical for the
selection of the righ t people for the right jobs.
5) Checking References: When candidate applies for a vacant position
in an organization, he/she has to give reference (contact details) of 2
persons who know candidate very well. The person who gives the
reference of a potential e mployee is a very important source of
information about candidate. The referee can provide info about the
candidate’s capabilities, experience in the previous companies,
leadership and managerial skills. The information provided by the
referee is meant to be kept confidential with the HR department.
6) Medical Examination: The medical exam is also a very important
step in the selection process. Medical exams help the employers to
know the potential candidates are physically and mentally fit to
perform their du ties in their jobs.
7) Final Selection and Appointment Letter: This is the final step in the
selection process. After the candidate has successfully passed all
written tests, interviews and medical examination, the employee is
sent via mail or email an appoi ntment letter, confirming his selection
to the job. The appointment letter contains all the details of the job
like working hours, salary, leave allowance etc.
2.4 SUMMARY The HR manager finds out human resource requirement and availability in
the organiz ation. He/she will compare human resource requirement with
availability to find out whether there is surplus or shortage of human
resources in the organization. Depending on surplus or shortage of human
resource, HR manager takes necessary action. This is called HRP .
If there is shortage of employees in a particular department then job details
are collected of the jobs. E .g. If there is shortage of employees in the
accounts department then job details are collected of the accounts job such
as preparing cash vouchers, finalization of accounts, taxation etc. This is
called as Job Analysis .
After collecting details of the job, the HR manager publishes job vacancy
on the company website or in the newspaper or in other source and job
applications are invited. In terested candidates apply for the job after munotes.in

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30 Human Resource Planning reading the advertisement regarding job vacancy. This is called
Recruitment .
After receiving job applications, the HR manager does screening of the
applications. Eligible candidates are called for an interview. T heir face to
face interview is conducted and best candidate is selected for the job. This
is called as Selection .
HRIS is an HR software package that is used to collect and store data of
employees. It is a computerized system facilitates the organization t o store
information relating to employees, their abilities, qualifications,
potentialities, creative instincts, age, pay scales. This information is loaded
into the system and analysed. It helps HR manager in decision making
relating to human resources suc h as promotions, training requirement,
disciplinary action, increment, incentives and so on.
2.5 EXERCISE Fill In the Blanks :
1) From _______ the HR manager identifies how many people are
available in the organization and how many people they will need in
future. ( HRP , HRIS, HRA)
2) HRIS stands for Human Resource ___________ (Integrated Software,
Information System , International Standards)
3) ___________ is one of the functions of HRIS. (Financial
Management, Quality Control, Timing and Attendance)
4) ____________is t he detailed information of the vacant job such as job
title, job location, job responsibilities and duties, salary and incentives
etc. ( Job Description , Job Recruitment, Job Discrimination)
5) Recruitment agency performs ____________ role for the
organization . (Providing market information, Providing Human
Resource Information , Providing Information about international
trade)
True or False :
1) A job description is the information of candidate needed to perform a
particular job. FALSE
2) The recruitment agency create s its database of the candidates
searching for job. TRUE
3) HRP includes organizing training programme for employees. FALSE
4) Selection is followed by recruitment process. FALSE
5) Placement is a process of assigning a specific job to each of the
selected candidat es. TRUE munotes.in

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31 HRM Match the Pairs : Group - A Group – B 1) HRIS a) Collecting information about a job 2) Recruitment Agency b) Job Title 3) Job Specification c) HR software package 4) Job Analysis d) Candidate’s educational qualification 5) Job Description e) Creates its database of the candidates (1-c, 2 -e, 3 -d, 4 -a, 5 -b)
Answer in brief:
1) What are the factors affecting HRP?
2) Write a note on HRIS.
3) Briefly discuss the concept of job description.
4) Explain the psychological and behavioural Issues in HRP.
5) Describe the various factor s affecting recruitment process.
6) “Role of Recruitment agencies is essential in the recruitment and
selection process” Discuss.
7) Write a note on Online process of selection.
2.6 REFERENCES  https://www.whatishumanresource.com/human -resource -management
 http://www.dspmuranchi.ac.in/pdf/Blog/abcdefgmailcomunit%2011.pdf
 https://www.hrmexam.com/2019/09/18/the -difference -between -
strategic -traditional -hr/
 https://www.businessmanagementideas.com/differences/difference -
between -strategic -hrm-and-hrm/20803
 https://krannert.purdue.edu/masters/n ews-and-media/blog/traditional -
vs-strategic -hr-management.php
 https://www.orgcharting.com/hr -department -organizational -chart/
 https://www.jobsoid.com/difference -between -job-description -and-job-
specification/
 https://www.mbaknol .com/human -resource -management/factors -
influencing -recruitment -process/

*****
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32
MODULE - II
3
TRAINING AND DEVELOPMENT
Unit Structure
3.0 Objective
3.1 Introduction
3.2 Training and Development
3.3 Performance Appraisal
3.4 Summ ary
3.5 Exercise
3.6 References
3.0 OBJECTIVE After studying this u nit the student will be able to :
 Unde rstand the role of training and development in the career building
of employees
 Discuss about performance appraisal
3.1 INTRODUCTION The organizations which are dynamic and growth -oriented, it is essential
for them to develop their human resources. Unlike other resources, human
resources have unlimited potential /capabilities. The potential of human
resources can be used only when it is continuously identified, given
platform to exhibit it, nurture it.
Human Resource Development (HRD) is the part of human resource
management. HRD concept was first introduced by Leonard Nadler in
1969 in a conference in US. “ He defined HRD as those learning
experience which are organized, for a specific time, and designed to bring
about the possibility of behavioral change”
HRD is a framework for helping employees to develop their personal and
organizational skills, knowledge, and abilities. HRD includes employee
training, employee career development, performance development,
coaching, mentoring, succession planning, key emp loyee identification
and organizational development. The focus of all aspects of Human
Resources Development is on developing most superior workforce so that
individual and organizational goal is achieved.
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33 HRM 3.2 TRAINING AND DEVELOPMENT 3.2.1 Concept :
Training and development is one of the vital Human Resource functions.
In most of the organizations training and development is an integral part of
the HRD (human resource development) activity.
Training and development is a program of updating employee’s sk ills,
knowledge, and competencies to ensure that they perform well on
assigned tasks and contribute to the success of the organization. Effective
training and development increases work efficiency of employees and
increases productivity of the organization . It provides learning
opportunities to the employees to increase their work capabilities and get
them ready for future challenges. Training and development acts as a tool
for success of organization because in the cut -throat competition in the
corporate w orld skilled manpower is important aspect to get competitive
advantage.
According to Armstrong “Training is the formal and systematic
modification of behavior through learning which occurs as a result of
education, instruction, development and planned expe rience. Development
is improving individual performance in their present roles and preparing
them for greater responsibilities in the future”.
According to Kllatt, Murdick & Schuster “Training is a systematic way
of altering behavior to prepare an employee for a job or to improve the
employee’s performance on the present job, and development is preparing
an employee for improving the conceptual, decision -making, and
interpersonal skills in complex, in structured situation.”
According to Kleiman “Training an d development are planned learning
experiences that teach workers how to perform their current or future jobs
effectively.”
Training and development in HRM are two different activities which goes
hand -in-hand for overall betterment of the employees. The ba sic
difference between two is: Training Development It is a short term process It is a long term process It is used for operational purpose It is used for executive purpose Its aim is to improve required skills in the employees Its aim is to improve overall personality of the employees Here right training method is chosen to fill up gap in the organization. Development initiative is generally taken with the objective of future succession planning. munotes.in

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34 Training And Development 3.2.2 Designing Effective Training Programme :
Training programs play a crucial role in enhancing employee’s
capabilities, upgrading their existing knowledge and help him acquire new
skills and learning. Effective training programs help employees to cope up
with changes, think out of the box, survive the cut t hroat competition with
a smile and contribute effectively to the success of organization.
Training programs need to be designed, keeping in mind the needs and
requirements of employees. Training modules ought to be precise, crisp
and informative.
Example :
The IBM (short form of International Business Machines) Corporation is
an American technology company that’s been around since 1911, and
today it operates in more than 150 countries worldwide. Needless to say
that, due to its immense popularity and success , the sheer number of
people employed in IBM is quite massive, nowadays coming quite close to
400,000.
With such a large number of workers, you can imagine how complicated it
must be to put a training program into practice, both for new and existing
employ ees. However, this didn’t stop IBM from focusing quite
extensively on the development of their workforce, even during periods of
financial uncertainty, and in 2002 the company was ranked fourth on
Training magazine’s “The Training Top 100” list, based on t heir
commitment towards employee training.
This placement was well deserved, as the company had reported spending
close to $1 billion on employee training in the mid -1990’s alone. In order
to attempt to cut costs, towards the end of the twentieth century t he
company decided to try and incorporate eLearning for further employee
training. The system was initially intended to be used to train IBM’s
newly recruited managers.
In the year following the implementation of eLearning, the company had
reported saving more than $160 million dollars. This is a massive amount
of money for such a company considering the time period, and it’s all
because of the unique way in which eLearning can help your training
efforts. A year later, that same figure rose to $350 million, and the director
of IBM Mindspan Solutions Andrew Sandler had explained that not only
had the implementation saved the company a large amount of money, but
that it had also delivered a far more effective training, providing
employees with “five times more content than before”.
Following some of the requirements for designing effective training
programmes :
1) Identify training needs: Before setting up training programme, it is
necessary to find out what the company and employees expect out of
the training pro gramme. Because if the company or employees either munotes.in

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35 HRM of them are not going to get any benefit out of training programme
then they won’t get engaged. The HR manager should find out
inefficiency in the organization and review organizational visions and
accordi ngly design training programme.
2) Objectives of Training: The training programme should have well
defined and specific objectives. The objective of training programme
can be:
 To orient new employees about company policy and work
 To develop new skills
 To develop positive attitude towards work and organization
 To develop positive attitude towards changes in the organization
3) Selection of Trainers: The trainer develops competencies and skill
sets among employees to perform effectively and efficiently in the
workplace. For the training programme to be effective, the trainer
should be qualified, specialized and competent enough. The trainer
should communicate to the trainees what is expected from them after
the training programme is over. The trainer should:
 Make planning for training session
 Design training tool / aid
 Implement training programme
 Evaluate effectiveness of training programme
4) Method of training: The training should be conducted using right
method. Training can be on -the-job or off -the-job whi ch depends
upon nature of job. For example, initially training to the pilot is
provided in an artificial aircraft (off -the-job). Training to the salesman
can be provided on -the-job.
5) Duration of Training: The duration of training should not be too
long or too short. Too long duration of training may result into
monotony and too short duration of training does not give much
chance to learn skills and enhance knowledge. The duration of
training depends upon the nature of work. For example, pilot training
may take long duration whereas training to the salesman may take
short duration.
6) Activities of Training: There should be proper system followed for
training programme to be effective. The system of training includes:
 There should be balance between theory and practical sessions
 Case studies, audio -visuals, films, presentations, management
games etc. should be used to make training sessions interesting
 Training tools / aid should be developed and it should be simple
and meaningful munotes.in

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36 Training And Development 7) Active involvement by traine es: The trainee should be actively
involved in training session rather than just listening to trainer. They
should practice what they learnt in training session. Practical aspect
may give trainees more insights and confidence.
8) Progress report: A trainer sh ould conduct small tests and inform the
trainees about their progress. Progress report gives concrete picture
about performance of a trainee. Due to progress report the trainees
come to know about their strengths and weaknesses. Accordingly they
can work o ver their weakness.
9) Reviewing training programme: It is important to review training
programme at regular interval to make sure that
3.2.3 Evaluation of The Effective Training Programme :
1) Satisfaction and trainee reaction: Evaluation of satisfaction is the
most basic measure to assess the effectiveness of training programme.
The trainer undertakes survey at the end of training session to test the
reaction of trainees. If the trainees are satisfied with training session,
they give positive reaction.
2) Knowledg e acquisition: It involves checking how much the trainees
have learned from the training session. In this method, trainees are
supposed to take a test. The trainer evaluates and grades the response.
It can help in determining if the participants have under stood and
learned the concept or not. Furthermore, it can highlight areas that
might need additional coaching or further training.
3) Behavioral Application: This method demonstrates the level to
which the trainees apply their newly acquired knowledge in th eir real
life and real world problems. E .g. A company that initiates training
programme for improving the telephonic conversation. The company
can conduct mystery calls before starting the training. This response
can be recorded and graded. After the train ing, the company can again
conduct mystery calls and can compare their results with those before
the training and measure the effectiveness of training.
4) Measuring the business improvement: The primary objective of
arranging training programme is to improve business performance.
After the training session is over, if there is improvement in the
business performance, it is assumed that the training session has been
effective. E .g. If we take above example that training programme has
improved telephonic conver sation of trainees due to which sales of the
company has increased (improvement in business performance) which
means training session has been effective.
5) Return on Investment (R OI): It deals with cost and return of
training. Cost of training involves fees of trainer, rent for training
venue (if any), training aid cost, other costs etc. Returns involve
increase in sales, business improvement, increase in profitability etc.
If cost of training is more than return, it indicates training has been munotes.in

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37 HRM ineffective. If cost of training is more than return, it indicates training
has been effective.
6) Reduction in accidents and wastage: When the trainees are taught
about operating system of machinery or equipments, the trainees
handle machines and equipment carefully. It results into less number
of accidents taking place. Even in training session trainees are trained
about handling of material. It results into less wastage of material.
7) Improve efficiency of employees: Efficiency refers to making best
use of resources. Effi cient firm maximizes output from given inputs,
so minimizes their costs. Trained employees perform with greater
speed and accuracy. Training not only enhances knowledge and skills
of employees, but also develops their positive attitude towards job.
This re sults into improvement in efficiency of employees.
8) Reduction in supervision: Trained persons require less supervision
because they know their job better and commit fewer mistakes. The
supervisor can concentrate on more important activities such as
planning and controlling.
3.2.4 Challenges before Trainers :
1) Engaging learners: Learner engagement and improved performance
are the ultimate learning objectives of training programme. Training
requires engagement of trainees on three levels: cognitive, emotional
and behavioral. Absence of these three results into poor knowledge
retention, passive learning and lack of commitment.
2) Training relevancy: Many training programs are too generic
(general) and not personalized enough for specific knowledge and
skills. Gener ic training strains time and patience of trainees by forcing
them to engage with content that simply is not relevant to them.
3) Training resources and budget: In many training programmes, there
are limited resources available for trainer to design and devel op the
training session. Many corporate training budgets are too low.
Facilitation, rent of training venue, software cost, training tools and
other costs makes training expensive. Training budget tend to be
small, while training demands are always more.
4) Limitation of time to design training programme: The trainer need
time to plan and execute training programme. He/she need time for to
design cool displays, fun games, simulations, quick quizzes,
presentations, case studies etc. for interactive training ses sion.
Trainers may get limited time to design a training programme. This
may affect the quality of training provided to the trainees.
5) Lack of employee interest: Company provides learning
opportunities, but employees must show interest by participating. Lo w
employee interest is one of the most common and most difficult
challenges for employers. When employees fail to take responsibility
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38 Training And Development 6) Lack of management support: The organization must provide a
learning environment where employees are encouraged to develop
new skills, acquire knowledge and strive for self -development.
Without management support, employees will not be motivated to
upgrade their skills. The employees should be provided time and
resources, such as meal and travel allowances, to participate in
training. It involves conducting regular follow -up after training.
7) Cost -effectiveness: The training programme designed by the trainer
should be cost -effective. The benefits derived by the trainees throu gh
the training programme should be more than expenditure incurred for
training.
8) Problem of training technique: The trainer may face the problem of
changing technology. Trainer needs to familiarize himself/herself with
the latest training techniques. He/ she should update himself/herself
with theoretical and practical aspects of the training techniques.
3.2.5 Management Development Programme :
Management development programme (MDP) is an attempt to improve
managerial effectiveness through a planned and del iberate learning
process. Unlike training, MDP aims at developing conceptual and human
skills of managers and executives through organized and systematic
procedures.
In other words, MDP is the process adopted to supply knowledge, skills,
attitudes, and i nsights to managerial personnel, and help them manage
their work effectively and efficiently.
3.2.6 Techniques of Management Development Programme (MDP) :
1) Coaching: In coaching, superior plays a role of guide and the
instructor. The coach sets mutually agre ed goals. The coach also
highlights what is to be done and how it is to be done. Coach also
provides suggestions wherever required and correct the mistakes of
trainee. In order to achieve organizational goals, the coach undertakes
periodic review of traine e’s progress and suggest modification in his
behavior where needed.
2) Job Rotation: Under this method, the trainees are transferred from
one job to another or one department to another. The objective is to
impart an overall knowledge and familiarity with dif ferent sectional
jobs before they are posted as managers. This method provides great
deal of job experience for those who are potential executives who
need broadening of outlook and an increased understanding of the
various aspects of management.
3) Understu dies: In this method, the trainee is trained to perform duties
and responsibilities of the superior. In this way, it is ensured that a
fully capable person is available to replace a superior during his long
absence or illness or his retirement, transfer or promotion. The trainee munotes.in

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39 HRM learns problem solving skill and decision making skill while working
under his superior. Trainee is also deputed to attend executive
meetings as a representative of his superior, at which he makes a
presentation and proposal.
4) Proje ct Assignment: In this method, trainee is put on a project
related to his department. It gives a firsthand experience of problems
and prospect of the project.
5) Committee Assignment: In this method, an ad -hoc committee is
appointed to discuss, evaluate and offer suggestions relating to an
important aspect of business. E.g. A committee is appointed of
trainees to look into the feasibility of developing new product. All the
trainees participate in the discussion of a committee. They come up
with the ideas and work on solution.
6) The case study: It is an excellent medium for developing analytical
skill. It was started by Harvard Business School and now being used
all over the world. A case is an objective description of a “real life”
business situation. The train ees are asked to appraise and analyses the
problem in the case and suggest solutions. Case study can provide
stimulating discussions among participants as well as excellent
opportunities for individuals to defend their analytical and judgmental
abilities. It is rather an effective method for improving decision -
making abilities within the constraints of limited information.
7) Role Playing: In this method, trainee play a role of someone i.e.
manager, subordi nate or employee in a simulated/ imaginary situation.
The trainees are given the roles of different managers who are
required to solve a problem or to arrive at a decision. At the end of
role playing session, there is a critique session in which trainees are
given feedback about their role playing.
8) In-Basket m ethod: In this method, each team of trainees is given a
pack of papers or files in a basket containing simulated management
problems. Now due to technological development, problems are
emailed to the trainees. The trainees are required to study the papers
or file and make their own recommendations on the problem.
Recommendations of all the trainees are recorded and compared with
one another. Learning takes place when trainers or experts present
their views on the recommendations given by the trainee.
9) Busin ess Game: Business games are classroom simulation exercises
in which teams of individuals compete against one another or against
an environment in order to achieve a given objective. These games are
designed to be representative of real -life conditions. Bu siness games
are intended to teach trainees how to take management decisions in an
integrated manner. The participants learn by analysing problems and
by making trial -and-error decisions.
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40 Training And Development 3.3 PERFORMANCE APPRAISAL Performance Appraisal is the systematic e valuation of the performance of
employees at the work place. It is a review of an employee’s performance
of assigned duties and responsibilities. It indicates how well an individual
is fulfilling the job demands.
The performance is measured against factor s such as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co -operation, judgment, self -confidence, intelligence,
versatility and health.
In the words of Wayne Cascio , “Performance appraisal is th e systematic
description of employee’s job relevant strengths and weaknesses.”
3.3.1 Process of Performance Appraisal :
1) Establishing performance standards/ target: The first step in the
process of performance appraisal is the setting up of the standards /
target. It is used as the base to compare the actual performance of the
employees with their target. This step requires setting the criteria to
judge the performance of the employees as successful or unsuccessful
and the degrees of their contribution to the organizational goals and
objectives. The standards set should be clear, easily understandable
and in measurable terms.
2) Communicating the standards: Once the standards are set, it is the
responsibility of the management to communicate the standards to all
the employees of the organization. The employees should be informed
about the standards. The standards should be clearly explained to the
employees so that they understand their roles and to know what
exactly is expected from them. The standards should als o be
communicated to the appraisers or the evaluators. The standards can
be modified at this stage itself (if required) according to the feedback
from the employees or the evaluators.
3) Measuring the actual performance: This step involves measuring
the actua l performance of the employees i.e. the work done by the
employees during the specified period of time. It is a continuous
process which involves monitoring the performance throughout the
year. This stage requires the careful selection of the appropriate
techniques to measure performance of employees. The personal bias
should not affect the performance measurement. The evaluator should
provide assistance rather than interfering in an employees work.
4) Comparing a ctual performance with standard/ target
performa nce: The actual performanc e is compared with the standard /
target performance. The comparison helps to find out deviations (if
any) in the performance of the employees from the standards set. The
result can show the actual performance being more than the s tandard
performance i.e. there is no deviation in the performance of munotes.in

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41 HRM employees. On the other hand, the actual performance may be less
than the standard performance i.e. there deviation in the performance
of employees.
5) Discussing results [Feedback]: The re sult of the appraisal is
communicated and discussed with the employees on one -to-one basis.
The results, the problems and the possible solutions are discussed
with the aim of problem solving and reaching consensus. The
feedback should be given with a posit ive attitude as this can have an
effect on the employees’ future performance. Performance appraisal
feedback by managers should be in such way helpful to correct
mistakes done by the employees. The feedback should help
employees to motivate for better perf ormance but not to demotivate.
Performance feedback task should be handled very carefully as it may
leads to emotional outburst if it is not handling properly. Sometimes
employees should be prepared before giving them feedback as it may
be received positiv ely or negatively depending upon the nature and
attitude of employees.
3.3.2 Guidelines for Conducting Appraisal Interviews :
Appraisal interview is a first stage of performance appraisal process. It is a
formal face to face discussion between an employee a nd manager
regarding performance and other aspects of job role. In appraisal
interview, the manager and the employee discuss performance and the key
areas of improvement of the employee. The performance appraisal
interview provides the employee with a chan ce to defend himself /herself
against poor evaluation by the manager. It also gives the mana ger a chance
to explain what he /she thinks about the employee’s performance.
Following are the guidelines for conducting appraisal interviews:
1) Competent evaluato r: There should be experienced, qualified,
matured and honest evaluator to conduct performance appraisal. The
evaluator should be provided training. If possible, performance
appraisal needs to be undertaken by more than one evaluator so that
appraisal woul d be fair and justified.
2) Proper timing: Performance appraisal must be conducted
periodically. It is advisable to conduct performance appraisal at least
twice in a year. If possible, it should be conducted quarterly i.e. once
in every three months.
3) Disclosu re of appraisal report: The performance appraisal report
should be made known to the employee whose performance is being
appraised. This will enable him/her to know the strength and
weakness related to his/her performance. Accordingly the employee
can cons olidate his/her strength and take corrective action to
minimize weakness.
4) Equal weightage to all criteria: Equal weightage should be given to
all performance criteria such as quality of work, quantity of work, munotes.in

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42 Training And Development speed, behavior, punctuality, co -operation et c. Performance appraisal
should be done by considering all these factors. No factor should be
ignored.
5) Provision for appeal: If any employee disagrees with appraisal
report, then there should be provision for that employee to appeal
against the appraisal r eport. The procedure to appeal against appraisal
report should be made known to the employee.
3.3.3 Ethical Aspect in Performance Appraisal :
Integration of ethics is important while doing the evaluation of
performance of employee as these appraisals can be highly subjective.
Some of the ethical aspects in performance appraisal are as given below:
1) Rewards, punishments and threats: All these must be used in a
positive way to improve the performance of the employees. If it is
used in improper way it will defi nitely affect the performance of
employees and demotivate them for future performance. Reward and
punishment should not rely on the matter of favoritism and hatred.
2) Reliability and validity of information: The most important task of
manager is to provide reliable as well as proper valid information.
This information can be documented and used for legal aspects if any
problem arises in future.
3) Job relatedness: The information provided in the appraisal should be
related to the job performance only. It shoul d not include personal
conflict and grudges between the appraisers and appraise.
4) Standard format of appraisal: It characterizes the standard format
of appraisal system. This standardization provides equal opportunity
to all the employees to perform in sam e system of measurement and
rating.
5) Training: Training should be provided to the appraisers to make them
familiar with the different rating errors and it also improves the rater
performance. If appraisers are unaware then there is possibility for
unethica l errors during the appraisal.
6) Employee Access to results: It is important to provide feedback to
the employees for their growth and development. Hiding any kind of
information is unethical. In this way employees should know the rules
of the performance a ppraisal. Employee themselves could not be able
to improve their performance unless they do not have access to this
information.
7) Open communication: The appraisal interview should be such that
there should be open communication between appraiser and
emplo yee. The appraiser must clearly define the whole process of
appraisal. In the same way if any confusion resides in employees
mind then it is supposed to be asked clearly in advance for better
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43 HRM 8) Confidentiality: This mea ns that the feedback provided to the
employee must be confidential. Leaking the information to other
employees is unethical.
3.4 SUMMARY In other words, training improves changes, molds the employees
knowledge, skill, behavior aptitude, and attitude towar ds the requirements
of the job and organization. Training refers to the teaching and learning
activities carried on for the primary purpose of helping members of an
organization, to acquire and apply the knowledge, skills, abilities and
attitudes needed fo r a particular job and organization. Thus, training
bridges the differences between job requirements and employees, present
specifications.
Performance appraisal is an exercise where managers evaluate the
employees, in terms of their contribution towards o rganizational
objectives. It evaluates their strengths and weaknesses in terms of
attributes and behaviours to meet the organisational objectives. It
appraises the performance of employees on continuous or intermittent
basis and provides them feedback abou t their performance.
3.5 EXERCISE Fill in the Blanks :
1) ___________ is a framework for helping employees to develop their
personal and organizational skills, knowledge, and abilities. ( HRD ,
Prospectus, Articles of Association)
2) Training and development is a p art of __ _______ (HRP, HRD, HRK)
3) ____________ helps in designing effective training programme.
(Very longer duration of training, Inappropriate method of training,
Selection of competent trainer )
4) ________ is one of the techniques of Management Development
Programme. ( Understudies , Application Blank, Online selection)
5) ___________ is the systematic description of employee’s job relevant
strengths and weaknesses. (Compensation, Performance Appraisal ,
Promotion)
True or False :
1) HRD stands for Human Resource Dive rsity. FALSE
2) Development is a short term process. FALSE
3) Reduction in accidents and wastage is one of the ways to evaluate the
effective training programme. TRUE munotes.in

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44 Training And Development 4) Employee turnover is an attempt to improve managerial effectiveness
through a planned and delib erate learning process. FALSE
5) Trainer faces challenges of engaging learners into training session.
TRUE
Match the Pairs : Group - A Group – B 1) Training a) Limitation of time to design training programme 2) Challenges before trainers b) Competent evaluator 3) Technique of MDP c) Long term process 4) Guidelines for conducting appraisal interviews d) Improve required skills in the
employees 5) Development e) Case study (1-d, 2 -a, 3 -e, 4 -b, 5 -c)
Answer in Brief :
1) Briefly discuss how to designing effective training progr amme?
2) How to evaluate the effectiveness of training programme?
3) What are the challenges faced by a trainer?
4) Explain the term Management Development Programme (MDP).
What are its various techniques?
5) What is Performance Appraisal? Explain its process.
6) Discu ss the various guidelines for conducting appraisal Interviews.
7) Write a note on Ethical aspects in performance appraisal.
3.6 REFERENCES  https://www.hrhelpboard.com/training -development.htm
 https://www.businessstudynotes.com/hrm/training -
development/training -evaluation -methods/
 https://www.whatishumanresource.com/performance -appraisal -
process
 https://www.mbaskool.com/business -concepts/human -resou rces-hr-
terms/15103 -appraisal -interview.html
 https://www.centraltest.com/blog/how -facilitate -personal -munotes.in

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45 HRM development -employee -motivation -and-well-
being#:~:text=Provide%20personal%20development%20resources,an
d%20career%20coaching%20sessions%2C%20etc .
 https://accountlearning.com/basis -of-promotion -merit -vs-seniority -
sound -promotion -policy/
 https://www.accountingnotes.net/human -resource -
management/promotion/promotion/17674
 https://www.yourarticlelibrary.com/hrm/job -transfers -definition -need-
policy -and-types/35325
 https://fleximize.com/articles/001888/4 -common -reasons -for-
dismissal
 https: //www.citeman.com/10973 -managing -dismissals.html
 https://profiles.uonbi.ac.ke/mercy_gacheri/files/succession_planning_
challenges.pdf
 https://www.economicsdiscussion.net/human -resource -
management/succession -planning/31877
 https://www.talentlms.com/blog/training -challenges -solutions -
workplace/
 https://knowledgebase.raptivity.com/6 -challenges -that-corporate -
trainers -face/
 https://www.youtestme.com/case -study -employee -training/



***** munotes.in

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46
MODULE - II
4
CAREER ADVANCEMENT
Unit Structure
4.0 Objective
4.1 Introduction
4.2 Career Advancement
4.3 Succession Planning
4.4 Summary
4.5 Exercise
4.6 References
4.0 OBJECTIVE After studying this unit the student will be able to
 Discuss significance of Career Advancement
 Understand concept of succession planning
4.1 INTRODUCTION In recent decades, career development has seen a shift in the way it is
approached. Traditionally, it was up to an organization to ensure that its
employees had the skills to meet the company’s long -term goals. Now,
however, employees advocate that they are —and should be —responsible
for their own career development.
This shift has changed the way that organizations handle career
development. Career development is viewed today as a kind of partnership
with employees. It is also a key component of a company’s attraction
and retention strategy. Many candidates wil l not consider employment
with an organization unless it offers career development as a basic
component of its culture .
4.2 CAREER ADVA NCEMENT Career advancement is the process by which employees use their skill sets
and determination to achieve new career goals and more challenging job
opportunities. Some companies offer career advancement programs that
allow existing employees to move up within the company.
In other words, career advancement refers to the upward progression of
one's career. An individual can advance by moving from an entry -level job
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47 HRM 4.2.1 Self-Development Mechanism :
Self-development is a process of consciously improving oneself in various
aspects of his/her life. Along with organization, it is the responsibility of
the employee to constantly strive for his/her self -development. One of the
best ways of career advancement is continuous investment in self -
development. Self -development is not only beneficial for employers but
also for employees to pursue their own career goals and interests, build
confidence and be more autonomous.
Benefit of self -development :
 Improve employee skill and performance.
 Promote internal employees to higher position.
 Increase productivity and maximize value of employee to the
organization.
 Helps organization to handle change more effectively, as employees
are continuous ly updating their skills.
Example:
Every job involves deadlines. As workload increase, it becomes difficult
for employee to accomplish everything on time. In such a situation an
employee can adopt self -development mechanism by developing time
management sk ills which will help to increase productivity and efficiency
of employees, decrease their stress and allows them to dedicated time to
other endeavors.
Here employee can track how his/her time is being spent. He/she can
make schedule of to -do-list and don’ t allow interruption during this times.
This will help an employee to be more efficient, and once he/she gets the
hang of working this way, it will become their second nature.
Way to provide self -development opportunity to employees :
1) Create self -awareness: Providing employees with personality
assessment is an objective and reliable way to help them increase self -
awareness. Personality assessment allows them to have an analysis of
various aspects of their personality, their strong points and then focus
on ar eas of personal development.
2) Provide personal development resources: The organization should
provide self -development resources such as e -learning modules,
personal and career coaching session etc.
3) Encourage development with both professional and persona l
goals: Most companies facilitate employees to identify professional
goals and then work towards fulfilling the said goals. But employees
should be self -motivated to set personal goals too. It will motivate and
make employees feel valued that their manage r cares about them as an munotes.in

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48 Career Advancement individual and not only as an employee of the company. A good
example can be full -paid or partially paid leave for higher educational
courses.
4) Allow schedule time for self -development: After encouraging and
facilitating a process a nd resources for professional development, it is
crucial for the organisation to allow for time within the working hours
for self -development. For example, 30 minutes in the
mornings/evenings or a few days a week, marked on the employee
calendar to take up self-development. This time is an important long -
term investment and should be valued by both the managers and the
employees. It is for benefit of both the employee and the organisation.
4.2.2 Knowledge Enrichment :
Knowledge is power. The knowledge of emp loyees is a company’s asset.
Knowledge enrichment refers to improve the quality of knowledge by
adding more knowledge into existing knowledge. Another best ways of
career advancement is employee knowledge enrichment.
Example :
 Teachers and professors can a ttend seminars and workshops as well as
attend conferences to update their subject knowledge.
 A businessman can attend exhibitions and attend seminars and
workshops to update his knowledge related to new products and
technology available in the market.
Following are some of the ways of employee knowledge enrichment:
1) Seminar and Workshops: A seminar is a form of academic
instruction, either at an academic institution or organized by a
professional organization while a workshop is a meeting where a
group of people learn about something through intensive discussions
and activities related to it. Employees can get lots of knowledge
through seminars and workshops.
2) Reading and Video instructions: Reading relevant literature can add
to the knowledge of the employe es. Organization should provide
library with valuable books. Due to development of IT, video
instructions are available on various topics. The employees can watch
relevant videos and enhance their knowledge about various areas.
3) Challenging tasks/ project: The organizatio n can provide challenging
tasks/ project to the employees. This helps to explore potential of
employees. The employees can use their own ideas and efforts to
complete the challenging tasks/ project. In the process of completing
challengin g task s/project, employees would learn abou t various
aspects of that tasks/ project.
4) Case study: It is an excellent medium for developing analytical skill.
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49 HRM over the world. A case is an objective de scription of a “real life”
business situation. The company can present an actual or hypothetical
problem in the form of case to the group of employees. The
employees can discuss upon the case and suggest solutions. This can
enhance knowledge of employees a nd build their decision making
power.
5) Performance appraisal: Performance appraisal is systematic
description of employee’s strength and weakness. After knowing
strengths and weakness, the employee can consolidate strength and
correct the weakness. The empl oyee gains knowledge to consolidate
strength and correct weakness.
6) Training: Training is a program of updating employee’s skills,
knowledge, and competencies to ensure that they perform well on
assigned tasks and contribute to the success of the organizat ion. In a
training programme the employees learn many things which add to
their knowledge.
7) Informal interaction/ Social networking: Employee s can have
informal interaction/ social networking with people from same field
where everyone can share their knowledg e with each other.
Discussions and experience shari ng through informal interaction /
social networking can help in knowledge enrichment.
4.2.3 Managing Promotions :
Promotion is an upward movement of an employee from his present job to
another that is with higher status, job responsibilities and pay. It is a job
which falls high in the organizational levels from the current job.
In other words, training is an advancement of an employee in the same
organization in terms of status, responsibilities and pay sc ale. But,
however, all promotion may not possess this characteristic, of increase in
pay. Sometimes it may happen that the promotion may be a ‘Dry
promotion’ i.e. an increase in responsibility and status without any
increase in pay.
There are two methods of promotion:
1) Promotion by seniority: Seniority means the length of service put in
by an employee in the working organization. It means as the age
increases the employee is promoted to next level
2) Promotion by merit: Merit means the qualification which an
employee possesses and his/her job performance. If employee is
highly qualified and performs well on the job, he/she is promoted to
next level. Here age is not taken into consideration.

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50 Career Advancement Principles of Promotion :
Every organization needs to have sound promo tion policy formulated so
that it can be executed properly whenever any vacancy arises.
Following are the essentials of a sound promotion policy:
1) Formulation of clear promotion policy: Management’s policy
regarding filling up of better posts through promo tion should be
specifically stated and truly adopted.
2) Fair and impartial promotion: Proper Merit Rating methods should
be followed to evaluate the performance of workers which will help
the management to decide on promotion. There should not be
favouritism and nepotism while promoting an employee.
3) Clear defining of various jobs: Various jobs within the organization
should be well defined and rated. There should be an orderly
arrangement of various jobs according to its ratings so that the order
of promotio n can be made well known to all. Every job in an
organization should be analyzed to determine the basic requirement of
such jobs as to ability, experience, education, skill, etc. Based on the
analysis, a chart showing all these requirements should be prepa red.
This will help the employees to prepare themselves for higher posts.
4) Acceptance of promotion policy: The promotion policy should be
acceptable to everyone in the organization. It is advisable that the
organization should consult labour unions and othe r concerned
members of the organization before framing promotion policy. The
promotion policy can be successful only with the acceptance and co -
operation of the employees.
5) No compulsion to accept promotion: In any case, an employee
should be compelled to a ccept promotion.
6) Provision for appeal: There must be provision for appeal if an
employee disagrees with the promotion of any employee. The
procedure for appeal should be made known to employees.
4.2.4 Managing Transfers :
The term transfer means shifting of an employee from one job to
another without special reference to change in responsibilities or
remuneration. Sometimes, transfers are used as a tool to motivate
employees by placing them in a position where they perform in a better
way to the concern. It may also be used to correct wrong selection and
placement.
Types of transfer :
1) Production Transfer: Such transfers are made when labo ur
requirements in one division/ branch is declining. The surplus
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51 HRM divis ions/branches where there is shortage of employees. Such
transfers help avoid lay off and stabilize employment.
2) Remedial Transfer: Such transfers are affected to correct the wrong
selection and placement of employees. A wrongly placed employee is
transferr ed to more suitable job. Such transfers protect the interest of
the employee.
3) Replacement Transfer: Due to change in technology or market some
operations in the organization get shut down. Now in order to retain
the long -service employee the organization r eplaces them with a new
employee with shorter service. This is known as replacement transfer.
The long -service employee are assigned new job in another
department of the organization.
4) Versatility Transfer: These transfers are also known as ‘job
rotation’. In such transfers, employees are made move from one job to
another to gain varied and broader experience of work. It benefits
both the employee and organisation. It reduces boredom and
monotony and gives job enrichment to the employee. Also,
employees’ ver satility can be utilized by the organisation as and when
needed.
5) Penalty Transfer: Management may use transfer as an instrument to
penalize employees’ involved in undesirable activities in the
organisation. Employee transfer from one’s place of convenience to a
far and remote area is considered as a penalty to the employee.
Principles of transfer :
1) Formulation of clear transfer policy: Management’s policy
regarding transfer should be very clear in terms of :
 Specification of circumstances under which an emp loyee will be
transferred in the case of company initiated transfer.
 Specification of a superior who is authorized and responsible to
initiate a transfer.
 The region or unit of the organisation within which transfers will
be administered.
 Reason which w ill be considered for transfers
 Norms to decide priority when two or more employees request for
transfer like priority of reason, seniority.
 Specification of pay, allowances, benefits etc. that are to be
allowed to the employee in the new job.
 Clarify w hether transfer is permanent or temporary.
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52 Career Advancement 2) Fair and impartial transfer: Transfer should be fair and impartial.
Unfair and partial transfer results into employee turnover (employee
leaving job). There should not be favouritism and nepotism while
transferri ng an employee.
3) Provision for appeal: There must be provision for appeal if an
employee disagrees with the transfer decision. The procedure for
appeal should be made known to employees.
4.2.5 Managing Dismissal :
Dismissal is the act of removing or terminat ing the job or employment of
an employee. Dismissal is when a person working in a company is
dismissed from his or her duties. Dismissal is sometimes also termed as
firing or sacking of the employee.
Dismissal is the most drastic disciplinary step the emp loyer can take.
There should be sufficient cause for dismissal. It should be taken only
when all reasonable steps to rehabilitate the employee are failed.
Many dismissals start with bad hiring decisions. Using effective selection
practices including asses sment tests, reference and background checks,
drug testing and clearly defined job descriptions can reduce the need for
many dismissals.
Reasons for Employee Dismissal :
1) Failure to do the job: The most obvious reason for employee
dismissal would be an emplo yee’s failure to do their job properly.
Poor performance could be due to a number of causes, such as an
inability to reach a required level of skill, or even a failure to get on
well with colleagues and managers. In case of poor performance the
employer mu st always first give fair warning and a reasonable chance
to improve, before they can proceed to dismiss the employee.
2) Misconduct: Another common reason for dismissal is misconduct.
This could be something like regularly turning up late for work or not
following workplace rules and regulations properly. Normally, in such
cases the employer would again be required to issue an early warning
and a reasonable change to improve. Only if the misconduct continues
even after the several warnings, then employee woul d be entitled to
dismiss.
3) Redundancy: Redundancy refers to the role is no longer required by
the business due to technology, falling down profitability or some
other reason that has made the role unnecessary.
Principles of dismissal :
1) Formulation of clear d ismissal policy: The organization should
formulate clear dismissal policy. The employee should clearly know
the ground of dismissal, procedure for dismissal, probation period
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53 HRM 2) Fair and impartial: Dismissal should be fair and impartial. There
should not be favouritism while dismissal of an employee. Employees
should be made known of the dismissal and disciplinary policy.
3) Counseling and warnings: The employer must always first give fair
warning and a reasonable chance to improve, before t hey can proceed
to dismiss the employee. Counseling should also be provided to
understand emotional problem faced by an employe e. Only if the poor
performance/ misconduct continue even after the several warnings and
counseling, then employee would be entitl ed to dismiss.
4) Provision for appeal: There must be provision for appeal if an
employee disagrees with the dismissal decision. The procedure for
appeal should be made known to employees.
4.3 SUCCESSION PLANNING Succession Planning is a process of deciding i n advance to fill up key
positions in the organisation that are likely to fall vacant in the near future.
Eg. The key position of CEO is likely to fall vacant within the next one
year or so, the organization may groom up potential successor to take over
that position.
Succession planning refers identifying and developing potential leaders to
assume higher position roles when the position becomes available. The
posts may arise because of retirements, job switch, promotions, illnesses
or death. It is a long -term and focused process that helps retain the right
candidate and talent within the organization.
In other words, Succession Planning is defined as the systematic process
of recognizing and creating future leaders who are able to take the position
of the old ones when they leave the organization due to retirement,
resignation, termination, transfer, promotion or death.
4.3.1. Succession planning generally involves three steps:
 Identify the key jobs and its requirements
 Identify training, developing and a ssessing various candidates who
could fill that job.
 Finalizing candidates who could effectively fit in the key jobs.
4.3.2. Problems and Issues of Succession Planning :
1) Narrow focus: Succession planning allows leaders to focus on
potential new managers who are employed by the organization. The
company may not consider candidates outside the company for
succession planning. This is good in terms of career development for
those inside the organization but it does not necessarily meet the
company’s best intere sts. In some situations it is better to replace a
manager with an external candidate to bring new skills to the team.
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54 Career Advancement 2) Talent drain / Employee turnover: Top level management identifies
small group of employees to receive training and development for
promotion. Thus not all employees can be identified as successors.
Consequently, some employees may feel left out and
underappreciated. So those managers who are not considered for
training and development activities may feel overlooked and therefore
leave the organization. This turnover may reduce the number of
talented employees that the organisation has at the lower and middle
levels of the hierarchy. Due to this the talented managers may wor k
for a competing firm or start their own business, thus creating
increased competition for their former company.
3) Negative Effects on Motivation: In some cases there may be two or
more strong candidates have potential for the succession planning. If
leader s do not handle succession plan carefully and objectively other
candidate (not considered for succession planning) may see the
candidate considered for succession planning is being favoured. This
can lead to motivated individuals losing interest and not tr ying as hard
in the workplace. Other employee who is not considered for
succession planning may think it is not worth their effort if there are
no progression possibilities.
4) Inadequate training and development: Succession planning
requires good amount of t raining and development to groom
successor to take over key position in the organization. But sometimes
senior who is retiring or leaving job may not cooperate to provide
training to the successor. Lack of adequate training and development
leads to an empl oyee that is unprepared for a promotion and this leads
to succession planning gap.
5) Biased selection: Familiarity makes people comfortable and
succession planning is no exception to this. It is very easy for males to
have a bias for males and females to hav e bias for females. In a group
where all managers are male, they will tend to have a bias in selection
of a male making it difficult for a woman to get selected. Another
problem with the succession planning occurs when top management
considers for advancem ent, those employees who have become
visible/favourite to them. There are often employees throughout the
organisation who are capable of and interested in promotion who may
be overlooked because of their lack of visibility or favouritism.
6) Unprofessionalism : Most family businesses have an unprofessional
approach in conducting succession planning. Some family businesses
ignore succession planning and fail to factor it as an integral part of
HR management. Some of the people in senior positions view the
proces s of succession planning as a reminder of their possible exit.
This is due to lack of adequate training on the importance of
succession planning. Such senior people in the management
undermine importance of succession planning.
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55 HRM 7) Problem of adjustment: The new successor may find it difficult to
adjust with the demands and responsibilities of the new job. As such
there is likelihood that he may leave the job and go back to his
original job, is so permitted, or even may leave the organization out of
frustratio n. This would require succession planning process to start
again, which would require good deal of time, and efforts on the part
of the succession planners.
4.3.3. Culture as a Factor in Succession Planning :
There are many factors affecting succession pla nning. One of the primary
factors affecting succession planning is the corporate culture.
The term "corporate culture" starts with the company’s vision. Normally, a
vision is a single phrase that communicates exactly what the purpose of
the company is. Th en, corporate culture dictates how people should
behave when at work, what values should drive their performance, and
what practices should be implemented to achieve the vision.
Culture includes the organization's vision, values, norms, systems,
symbols, l anguage, assumptions, beliefs, and habits.
Organizational culture is intangible. It is a combination of all the values,
beliefs, expectations, practices, habits, and norms that create a
psychological environment and are passed from one generation to anothe r.
It is often described as a glue that holds employees and organizations
together. The culture can either become a stimulating factor or a barrier
for the organization.
Succession planning is a challenging process and is affected by the
organizational cul ture. A good corporate culture impacts succession
planning in the following manner :
1) Attract competent candidates: Employees get attracted towards
organizations which offers great career growth opportunities.
Supportive corporate culture allows employees to grow within the
organization which makes availability of competent candidate for
succession planning.
2) Reduces hiring cost: Hiring and retaining a competent manpower is a
challenge for an organization. Employee turnover is not only
expensive but time -consu ming too. Hiring new candidate with good
skills but misfit with the culture may be disastrous for the company. A
good corporate culture keeps alive the hopes of the existing
employees for future key positions (succession planning) in the
organization. Ther efore, reduces hiring cost of new candidates for
succession planning.
3) Enhances productivity and performance : A good corporate culture
develops a sense of belonging towards the company among
employees. They give more than expected. A good understanding of
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56 Career Advancement ultimately results in employees giving their best, thereby increasing
productivity and performance. Employees with higher productivity
and better performance get fair chance in succession pl anning to fill
up key positions in near future.
4) Greater job satisfaction : Good corporate culture provides job
stability, career growth and a comfortable work life balance. This
implies that the employees are having satisfaction at job as the work
meets the ir expectations. Satisfied employees remain loyal and
dedicated towards organization. Therefore, they are considered good
fit for succession planning as an when higher positions fall vacant in
an organization.
5) Employee retention: Many employees leave an or ganization when
they cannot relate to the corporate culture of their organization. The
goal of every workplace should be to promote inclusivity and
diversity, which helps to retain the employees. Retention of the
employees has a significant contribution wh ile planning for the future
and responsible positions (succession planning).
6) Enhances Employee Engagement: Good practices and corporate
culture make team member more passionate about the work and leads
to higher employee engagement. Highly engaged employee s are good
suit to succession planning.
4.4 SUMMARY Career advancement is the process by which professionals across
industries use their skill sets and determination to achieve new career
goals and more challenging job opportunities. Some companies offer
career advancement programs that allow existing employees to move up
within the company.
Succession Planning, specifically termed as Management Succession
Planning, involves coaching and development of prospective successors or
people within a firm or from outside to take up key positions in an
organisation through an organized process of assessment and training.
4.5 EXERCISE Fill in the Blanks :
1) ___________ is a process of consciously improving oneself in various
aspects of his/her life. ( Self-development , Dismissal, Transfer)
2) _________ refers to improve the quality of knowledge by adding
more knowledge into existing knowledge. (Promotion, Knowledge
Enrichment , Dismissal)
3) __________ is an upward movement of an employee from his present
job to another that is with higher status, job responsibilities and pay.
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57 HRM 4) ___________ means shifting of an employee from one job to
another without special reference to change in responsibilities or
remuneration. ( Transfer , Training, T urnover)
5) ________ is a process of deciding in advance to fill up key positions
in the organisation that are likely to fall vacant in the near future.
(Self -development, Succession Planning , Transfer
True or False :
1) Creating self -awareness is one of the ways of providing self -
development opportunity to employees. TRUE
2) Shifting of responsibilities helps into knowledge enrichment. FALSE
3) Merit means as the age increases the employee is promoted to next
level. FALSE
4) Penalty transfers are affected to correct the w rong selection and
placement of employees. FALSE
5) There should be formulation of clear dismissal policy in an
organization. TRUE
Match the Pairs : Group - A Group – B 1) Misconduct a) Seminar and Workshops 2) Versatility Transfer b) Biased selection 3) Knowledge Enrichment c) Reasons for Employee Dismissal 4) Career Advancement d) Job rotation 5) Problems in succession planning e) Upward progression of one's career (1-c, 2 -d, 3 -a, 4 -e, 5 -b)
Answer in Brief :
1) Explain briefly the Self -Development Mechanism.
2) Discuss the c oncept of Knowledge enrichment.
3) Write a note on :
 Managing Promotion
 Managing Transfers
 Managing dismissal
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58 Career Advancement 4) Describe the concept of Succession Planning. What are the Problems
and Issues involved in succession planning.
5) “Culture as a factor in Succe ssion Planning” Explain in brief.
4.6 REFERENCES  https://www.hrhelpboard.com/training -development.htm
 https://www.businessstudynotes.com/hrm/training -
development/training -evaluation -methods/
 https://www.whatishumanresource.com/performance -appraisal -
process
 https://www.mbaskool.com/business -concepts/human -resources -hr-
terms/15103 -appraisal -interview.html
 https://www.centraltest.com/blog/how -facilitate -personal -
development -employe e-motivation -and-well-
being#:~:text=Provide%20personal%20development%20resources,an
d%20career%20coaching%20sessions%2C%20etc .
 https://accountlearning. com/basis -of-promotion -merit -vs-seniority -
sound -promotion -policy/
 https://www.accountingnotes.net/human -resource -
management/promotion/promotion/17674
 https://www.yourarticlelibrary.com/hrm/job -transfers -definition -need -
policy -and-types/35325
 https://fleximize.com/articles/001888/4 -common -reasons -for-
dismissal
 https://www.citeman.com/10973 -managing -dismissals.html
 https://profiles.uonbi.ac.ke/mercy_gacheri/files/succession_planning_
challenges.pdf
 https: //www.economicsdiscussion.net/human -resource -
management/succession -planning/31877
 https://www.talentlms.com/blog/training -challenges -solutions -
workplace/
 https://knowledgebase.raptivity.com/6 -challenges -that-corporate -
trainers -face/


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59
MODULE - III
5
INDUSTRIAL RELATION ACT
Unit Structure
5.0 Objective
5.1 Introduction
5.2 Industrial Relation Act
5.3 Trade Union Act
5.4 Factories Act 1961
5.5 Industrial Dispute Act 1950
5.6 Summary
5.7 Exercise
5.8 Reference
5.0 OBJECTIVE After studying this unit the student will be able to :
 Understand the concept Industrial Relation Act
 Knowledge about changes in trade Union Act & Factories Act
 Know about the changes in Child & Women Labour Act
 Know about the changes Social Security
 Understand changes i n Employees Act
5.1 INTRODUCTION Industry has been the backbone of any country and its economic
development. These sectors are not only give economic boost, but also
helps in solving many problems such as removal of poverty, employment,
equality, etc. With this sector being of so much importance in country’s
overall growth and improvement it is important to manage it properly. As
this sector deals mainly with factors of production and that too with
Labour, the task is really important. The relationship betw een the
management and Labour has to be handled and governed properly. This
task leads to the formulation of Industrial Act, which deals with proper
interrelationship between employer and employee relationship, trade
unions.
Industrial relations deal with science building, problem solving, and
ethics. It has been believed by scholars that Labour does not belongs to
perfect competitive market, as a result the employer has better bargaining
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60 Industrial Relation Act some institutional intervention in place to take care of relationship
between them. Hence Industrial relation Act came into practice in 1946.
5.2 INDUSTRIAL RELATION Industrial relation refers to multidisciplinary in nature that defines
relationship between employer, employee and state.
According to J.T. Dunlop, “Industrial relations are the complex
interrelations among managers, workers and agencies of the government”
5.2.1 Features of Industrial Relations:
1. Employment relationship: Industrial r elations are outcomes of
employment relationships that exist in an industrial enterprise
between two parties namely employers and employees.
2. Rules and Regulation: Industrial relations forms and define rules and
regulations so as to maintain harmonious relations between employer
and employee.
3. Government Intervention: The government intervenes to shape the
industrial relations through laws, rules, agreements, terms, charters
etc.
4. Several parties: The main parties are employers and their
associa tions, employees and their unions and the government.
5. Dynamic in Nature: Industrial relations are a dynamic and
developing concept, not a static one. They undergo changes with
changing structure and scenario of the industry as and when change
occurs.
5.2.2 Objectives of Industrial Relations :
1. Maintain industrial democracy: Industrial relation ensures
participation of Labour in the management and gains of industry and
thereby maintain democratic environment in industry.
2. Maintain productivity: Industrial relation helps in maintain
productivity by reducing Labour turnover and absenteeism.
3. Workers Participation: Industrial relation ensures workers
participation in management of the organization, by giving them a fair
say in decision -making and fr aming policies.
4. Two way Communication: Industrial relation establish a proper and
smooth communication there by helps each party to have a better
understanding and thus maintains high morale and discipline.
5. Safeguarding interests: Industrial relat ion helps in safeguarding
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61 HRM level of mutual understanding and goodwill between all sections in an
industry.
6. Minimizing Industrial Dispute: Industrial relation avoid all forms of
indust rial conflicts so as to ensure industrial peace by providing better
living and working standards for the workers.
7. Government Control: Industrial relation brings about government
control over such industrial units, which are running at a loss for
protecting the livelihood of the employees.
5.2.3 Recent Changes / Amendments :
According to Industrial Relations Code 2020 recent changes in Industrial
Act:
 Defines “strike” as including the concerted casual vacation on a given
day of fifty percent or more of the workers in an industry .
 No employee can strike without reporting a strike to the employer 14
days in advance. This notification is valid for a maximum of 60 days .
5.3 TRADE UNION ACT Textile and clothing mills being started establishing in d ifferent parts of
India in 19th century and this has lead to formation of Industrial workforce
in India. Several incidents of strikes and protests by workers have been
recorded during this time. Several incidents of strikes and protests by
workers have bee n recorded during this time. As a result, the Trade Union
Act (1926) was passed for creating the rules for the regulation and closer
monitoring of Trade Unions.
Trade Union Act was formulated with the intention of safeguarding the
interest of workers agai nst discrimination and unfair trade practices. It
provides for registration of trade unions to render lawful organization of
Labour. It not only gives protection to workers but was formed to have a
mechanism of collective bargaining between management and
worker/Labour.
5.3.1 The Objective of the Trade Unions Act of 1926 :
Ensure Security of Workers:
Trade union act provides security to workers with regard to employment,
retrenchment, lay off or lock -outs.
Obtain Better Economic Returns:
Trade union act al so ensures wages hike at periodic intervals, bonus at
higher rate, other allowances, and subsidized canteen and transport
facilities.
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62 Industrial Relation Act Secure Power to Influence Management:
To ensure workers participation in management decision making and
policy making
Secu re Power To Influence Government:
Provision to be made by government to pass Labour legislation, which
improves working conditions, safety, welfare, security and retirement
benefits of workers and their dependents, and redressal of grievances.
5.3.2 Import ant Points of Trade Union Act :
 Fair wages to workers.
 Security of tenure and improve conditions of service.
 Opportunities for promotion and training.
 Improve working and living conditions.
 Provide educational, cultural and recreational facilities.
 To co -operate in and facilitate technological advances.
 To promote identity of interests of workers with their industry.
 To offer responsive co -operation in improving levels of production
and productivity, discipline and high standards of quality and
 To promote in dividual and collective welfare.
5.3.3 Formation and Registration of Trade Union :
Section 4 – 9 of Trade Union Act deals with formation and registration of
Trade Union.
Mode of Registration sec (4): Seven or more members forming Trade
union can apply for r egistration of trade union by subscribing their names.
Application of Registration sec (5): Members are suppose to apply for
registration to the Registrar of Trade Union with -
(a) Name, occupation and addresses of members applying for trade
union.
(b) Nam e of the trade union and address of the head office
(c) Title, name, age, occupation of the office bearers
Content of The Copy Of Rule sec(6): The application must have
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63 HRM (b) Objective for which trade union is formed
(c) Purpose for which funds of Trade union will be used.
(d) Payment of subscription by members of Trade Union which should be
not less than 1 rupee p.a. for rural workers, 3 rupees p.a. for organized
sector and rupees 12 p.a. for other case.
Power of Registrar sec (7): Registrar on receiving the application can
call for any additional details, if needed.
Registration and Certificates sec (8 & 9): After compiling with all
requirements the Registrar will registers the trade union and issue a
certificate of registration for the same.
Funds of Trade Union:
A registered Trade Union can raise funds for discha rging its duties in the
form of:
(a) General Funds
(b) Separate Funds
Section 15 of the Act deals with the purpose for which ge neral Funds will
be spent like salaries allowances and expenses of the office bearer,
administrative expenses, allowances and expenses of members for any loss
arising out of Trade Union actions and provision for education or religious
function for members or dependent of members
Section 16 of the act deals with the separate funds kept for meeting
political purposes.
5.3.4 Changes in Trade Union :
Trade Union Act gas been amended many a time but the most important
one was amendment in 2001. This Act has been enacted in order to bring
more transparency and to provide greater support to trade unionism in
India and on reducing multiplicity of trade unions, Trade Union Act was
amended in 2019 by passing a bill in Lok Sabahby the Minister of Labour
and Employment, Santosh Kumar Gangwar, on January 8, 2019.
 The Trade Unions (Amendment) Bill, 2019 was introduced in Lok
Sabah by the Minister of Labour and Employment, Santosh Kumar
Gangwar, on January 8, 2019. The Bill amends the Trade Unions Act,
1926, which provides f or the registratio n and regulation of trade
union .
 The Bill seeks to provide for recognition of trade unions or a
federation of trade unions at the central and state level by the central
and state government, respectively. Such trade unions or the
federati on of trade unions will be recognized as Central Trade Unions
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64 Industrial Relation Act  The central or state government may make rules for: (i) the
recognition of such Central or State Trade Unions, and (ii) the
authority to decide dispute s arising out of such recognition, and the
manner of deciding such disputes.
Following amendments are majorly passed through the bill in Trade
Union Act:
Section 28(A): A new section has been inserted to the Act that Trade
union or any federation of trad e union will be recognized as central union
at central level and state union at State level.
Section 29 (A):
(i) The central government may make regulation for prescribed purpose,
the manner of recognition, the authority to decide the dispute and the
manner of deciding such dispute.
(ii) The State Government may make regulation for prescribed purpose,
the manner of recognition, the authority to decide the dispute and the
manner of deciding such dispute.
5.4 FACTORIES ACT The Factories act was first incor porated in 1833 in United Kingdom to
regulate the conditions of industrial employment. The early Acts mainly
covered conditions regulating working hours and moral welfare of young
children employed in cotton mills. It regulates the working conditions and
lays down provisions which are related to health safety and working
conditions. Factories Act is almost 100 years old, but in India it came
almost after a decade. In 1854 Cotton Textile Industry was set up in
Bombay, the same movement got accelerated and by 1870, many factories
came into existence in Bombay, Nagpur, Kanpur and Madras. Iron and
steel work further came in Bihar in 1873, by1881 5000 power looms in
Bengal led to factory establishment. With increasing growth of factories
all over India, many prob lems pertaining to employment of women and
children at tender age, excessive working hours, hazardous and insanitary
working conditions started surfacing. Hence strong need was felt for
protective Labour legislation for providing protection. The Government of
India appointed the Factory Commission in 1890.
The Act has been amended in the year 1891, 1911, 1922, 1934, 1948 1976
and 1987. But in the year 1948 major amendments was introduced.
The Factories Act 1948 is more comprehensive in terms of health, saf ety,
welfare workers inside factories, working hours, minimum age of work.
Factories Act 1948 governs the entire day -to-day activity in a factory and
extends to whole of India including Jammu & Kashmir.
An act was passed in 1891 on the basis of the recomme ndation of this
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65 HRM premises in which fifty persons or more were employed. Factory and
Industry though are used interchangeably, but are not so. Industry is used
for entity where trade is org anized and factory refers to the place where
activities are carried on.
5.4.1 Definition of Factory :
According to the Factories Act, 1948, under section 2(m) a ‘Fact ory'
means - any premises where:
(i) Ten or more workers are working, or were working on any day of the
preceding twelve months, and in any part of which a manufacturing
process is being carried on with the aid of power, or is ordinarily so
carried on,
(ii) Twenty or more workers are working, or were working on any day of
the preceding twelve months, and in any part of which a
manufacturing process is, this does not include a mine subject to the
operation of the Mines Act, 1952 , or a mobile unit belonging to the
armed forces of the union, a railway running shed or a hotel,
restaurant or eatin g place being carried on without the aid of power,
or is ordinarily so carried on.
Workers: - ‘Worker’ means ‘‘a person employed directly or by or through
any agency including a contractor with or without the knowledge of the
principal employer, whether fo r remuneration or not in any manufacturing
process or in cleaning any part of the machinery or premises used for a
manufacturing process or in any other kind of work incidental to or
connected with the manufacturing process or the subject of the
manufactur ing process’’.
5.4.2 Important Provisions of Factories Act :
Factories Act includes important provisions regarding health and safety
welfare of wo rkers. These provisions include:
Cleanliness Sec 11:
 All doors, windows. Inside walls, ceilings, partitions n eeds to be
repainted at least once in 5 years and floor need to be cleaned daily and
any accumulation of darts need to be removed on a daily basis.
 Every factory must have adequate and suitable facilities shall be
provided and maintained for the use of wor kers, separate and
adequately screened facilities shall be provided for the use of male and
female work
Disposal of Wastes and Effluents Sec 12:
It is mandatory for making arrangements for treatment of effluents and
waste from manufacturing process and sh ould be properly disposed.
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66 Industrial Relation Act Ventilations and Temperature Sec 13:
Factory should be duly ventilated so as to have sufficient natural light and
air circulation. Temperature needs to be maintained so that workers can
work comfortably.
Dust and Fume Sec 14:
The exhaust combustions engine must be conducted outside the factory so
that workers do not inhale injurious or offensive dusts.
Artificial Humidification Sec 15:
In case of factories where humidity has been increased artificially,
provisions should be mad e compulsory to test the levels of artificial
humidity continuously and also prescribed standard of humidification.
Water taken for artificial humidification has to be taken from a public
supply and used only after purification.
Overcrowding Section 16:
Every factory needs to maintain 14.2 cubic meters of space per workers
and roof should be 5 meters from the floor.
Lighting Section 17:
Provision has to be made for sufficient and suitable lighting, both natural
and artificial provision should be made to p revent glare.
Drinking Water Section 18:
Factories need to make provisions for safe drinking water supply and
should be situated at a distance of minimum 6 meters from washing place,
urinal, drainage and spittoon.
Lotteries and Urinals Section 19:
Sufficie nt Latrine and urinals should be maintained and hygienically
maintained. It should be properly illuminated.
Spittoons Sec 20:
Sufficient number of spittoons should be kept and hygienically
maintained.
5.4.3 Amendments In Factories Act :
Factories Act of 193 4 was amended in 1948, when it was realized that
workers are exploited. In order to improve their conditions certain
amendments were introduced.

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67 HRM Safety Measures:
 The word “factory’’ was now being referred for any establishment
employing 10 or more people that uses power or any establishment
that employ more than 20 people that do not uses power
 Any child who has attain the age of 14 years is only eligible to work
 Any child should not work beyond 7 pm in the evening and before 6
am in the morning
 Working hours for children have to be 4 to 5 and half hours.
 Explicit and special focus on health, safety and welfare of workers is
essential to be maintained
Welfare Measures:
 Ensure mental , physical, emotional and moral well-being of wo rkers
 Maintain favorable working conditions
 Welfare measures taken for workers will ensure commitment, sincere,
loyalty of workers towards employer
 Provide washing facility for workers to wash and dry clothes worn
during work
 Provide facilities for sitting near working place so th at worker can
take rest in between
 Provide and maintain first aid box should be maintain for workers and
incase where workers exceed 500, an ambulance room needs to be
maintained.
 Every factory where number of workers exceeds 250, provision for
canteen has to be there
 Shelters, rest rooms and lunch rooms need to be provide and
maintained in good and hygienic conditions if workers are more than
250.
 Creche needs to be maintained if women workers exceed 30 in
number for children below 6 years
Safety:
 Fencing need to be done for every dangerous machine.
 Worker working near moving machine should wear tight clothes and
no women or young worker should be followed to clean or lubricate
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68 Industrial Relation Act  Suitable devices for cutting power immediately duri ng emergencies
shall be provided
 Women or children should not be allowed near cotton opener that is at
work for pressing cotton.
 Every hoists and lifts should be maintained properly.
 No worker should be allowed to uplift any load with excessive weight
so that it causes any physical injury
 For any manufacturing process emitting any kind of fragments or
rays, worker should be given proper protection to eyes.
 Safety Officers need to be appointed in a factory where more than
1000 workers are employed.
5.5 INDUS TRIAL DISPUTE ACT Industrial Act was enacted on 1st of March 1947 and came in force on 1st
of April 1947. With liberalization and globalization, many changes have
been introduced in socio economic conditions. India being Labour
intensive country, it was v ery important to safeguard the interest of
workers, who were backbone of industries. A provision was required to be
made for prevention and settlement of industrial disputes and safeguard
the interest of workers as well as management.
As per section 2(K) o f Industrial Dispute Act, Industrial dispute refers to
any difference of opinion between employer and employee. Employee and
employee, or between employer and employer related to employment.
5.5.1 Objectives of Industrial Dispute Act :
Industrial Dispute Ac t 1947 was passed with an objective of having a
mechanism that can secure industrial peace and harmony through
investigation and settlement of industrial dispute by conciliation,
arbitratio n and adjudication .It aims at:
 Promoting measures for securing and preserving good relation
between the employer and workers.
 Investigation and settlement of industrial disputes.
 Prevention of illegal strikes and lockouts
 Relief of women in the matter of layoff and retrenchment.
 Promotion of collective bargaining.
5.5.2 Meaning of Terms Under Industrial Dispute Act :
a. Appropriate Government : Refers to Central and State Government. munotes.in

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69 HRM b. Arbitrator : Any third person appointed to look at disputes and does
not know any of the parties in dispute. He needs to be preferably fro m
outside industry.
c. Wages : Any remuneration paid for any work done by workmen.
d. Workmen : Any person being employed in any industry to do any
manual, unskilled, skilled, technical, operational or supervisory work.
e. Industry: A systematic activity c arried on by cooperation between
an employer and workmen.
f. Industrial Establishment: Means an establishment or undertaking in
which industry take part.
g. Settlement: A written agreement between employer and workmen
agreed upon as conciliation for a ind ustrial dispute.
5.5.3 Features of Industrial Act :
 Strike and lockouts are prohibited during the pendency of
conciliation, adjudication settlement preceding.
 Any industrial dispute may be referred to an industrial tribunal for
conciliation
 An award (i.e. d ecision) shall be binding on both the parties, involve
in the dispute.
 In case of lay off or retrenchment of workmen, the employer is
required to pay compensation.
 Provision has also been made for payment of compensation to
workmen, who have been party to dispute.
 A number of authorities such as works committee, Conciliation
Officer, Board of Conciliation, Labour court, Tribunal is provided for
settlement of industrial dispute.
5.5.4 Authorities Under Industrial Dispute Act :
Under Industrial Dispute Act Gov ernment has made certain arrangements
in the form of setting various authorities that can look after the
proceedings and can lead to cordial relationship between the parties at
dispute and an acceptable award (solution) can be arrived a t. Some of the
autho rities are:
Work Committees :
It consists of representatives of employers and workmen for maintaining
good relation and cooperation and for discussing matters of interest.
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70 Industrial Relation Act  Or more workmen are employed on any day in the preceding 12
months.
 Consist of representatives of workmen and employer
 Number of representatives of workmen should not be less than
representatives of employer.
 Representatives of workmen are selected in consultation of
management and union .
Conciliation Officer :
A conciliation officer is an officer appointed for conciliation of industrial
disputes. Appropriate government by notification in Official Gazette, for
mediating in and promoting settlement of industrial disputes appoints him.
An ap propriate government by notification in Official Gazette can appoint
specific numbers of person as conciliation officer, as it thinks fit.
Conciliation officer may be appointed for a specified area or for specified
industry in a specified area either perma nent or for limited period
Duties:
 A Conciliation Officer deemed to be public servant
 Conciliation officer has to conduct and deal conciliation proceedings
in a prescribed manner without delay to have settlement
 Conciliation Officer is supposed to submit the reports of proceedings
within 14 days of commencement of proceedings.
 The duty of Conciliation Officer is administrative and not judicial.
Board of Conciliation :
The appropriate government may as occasion arises by notification in
Official Gazettes may appoint Board of conciliation for settlement of
disputes. Board of conciliation may have a chairman and 2 or 4 other
members
The chairman shall be an independent person and the other members shall
be persons appointed in equal numbers to represent the par ties to the
dispute, as per the recommendation of that party: A Board of Conciliation
can act only when a dispute is referred by Government
Duties:
 Whenever the dispute is referred to Board, it investigates the matter
affecting the merits and settlement o f the dispute without delay.
 The Board ha to submit report whether settlement is reached or not
within 2 months from the date on which the dispute has been referred. munotes.in

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71 HRM  In case no settlement is arrives by Board, appropriate Government can
refer it to Labour C ourt Industrial Tribunal or National Tribunal.
 The time of submission of report will be extended to an extent, as
agreed in writing by the parties at disputes.
 The report of the Board has to be in writing and shall be duly signed
by members of Board.
 Appro priate Government will publish the report with in 30 days from
the day of receipt.
 Board has power to bring settlement but cannot impose it on any party
of disputes.
Court of Enquiry :
The Appropriate Government by notification in Official Gazettes
constitu tes Court of Inquiry into any matter of industrial dispute. Court of
Inquiry must have one independent person or many independent people as
the Appropriate Government think fit. Court of Inquiry must have two or
more members, and one shall be appointed as Chairman. Court of Inquiry
can act in prescribed quorum even in the absence of Chairman. If
Government has ceased the service of Chairman, then the Court of Inquiry
will not act in the absence of Chairman. All members of the Court are
deemed to be public s ervants and all proceedings will be deemed as
judicial proceedings. The court of Inquiry has the power to appoint one or
more persons having special knowledge of the matter as an advisor.
Duties:
A court shall inquire into the matters referred to it and r eport to the
appropriate government with in a period of 6 months from the day of
commencement of the inquiry. Theof the court shall be in writing and
signed by all members of the Court. The Government shall publish with
reports submitted in 30 days of rece ipt
Labour Court :
A Labour Court consists of one person, Only to be appointed by the
appropriate Government a person shall not be qualified for appointment as
presiding officer of Labour Court unless -
a) He is/ has been judge of High Court.
b) He has been as District Judge / Additional District Judge for a period
of not less than 3 years
c) He has held any Judicial Office in India for not less than seven years.
Duties :
Adjudication of any industrial disputes relating to any matters is as per
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72 Industrial Relation Act Labour Court within the specified period, it should submit award (report
on any dispute) to the appropriate government. It (award) should be
published within 30 days of its receipt by the appropriate government.
Industrial Tribunal :
The Government can by notification in the Official Gazette appoint one or
more Industrial Tribunal for adjudication of any industrial disputes. The
Tribunal consists of one person duly appointed for the purpose by
appropri ate Government. A person can be appointed as preceding officer
only if
d) He is / has been Judge of an high court
e) He is /has been Additional Judge or District Judge for a period of
three years.
f) No person shall be appointed or continue as preceding o fficer if he is
not an independent person or has attain the age of 65 years.
Duties:
 Industrial Tribunal must submit award (decision) to the appropriate
government within a specified period.
 The award shall be in writing and should be duly signed by the
preceding officer.
 Appropriate government with in a period of 30 days shall publish the
award.
 Industrial tribunal has to serve notice upon the parties at disputes
before any award is made.
National Tribunal :
The Central Government shall by notification in Official Gazette appoint
one or more National Tribunals for the adjudication of industrial disputes:
a) Involving questions of National importance
b) That dispute is of such a nature that interest of more than one state is
involved.
A National Tribunal s hould consist of one person duly appointed by
Central Government, and who has been a Judge of High Court. No person
shall be appointed as preceding officer who is
a) Not an independent person
b) Or has attained the age of 65 years.

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73 HRM Duties:
National Trib unal must submit award (decision) to the Central
Government within a specified period.
The award shall be in writing and should be duly signed by the preceding
officer.
Industrial dispute shall publish the award within 30 days of its receipt
from Central G overnment
5.5.5 Recent Changes / Amendments:
The Chapter 5 (B) of the Act that deals with the government permission
required to layoff, retrench or close the industry if the workforce is more
than 100 has been change d to 300.
5.6 SUMMARY Industrial Rel ation Act: Industrial relation is multidisciplinary in nature
that has been formulated to describe relationship between employer,
employee and state. It is an act to consolidate and amend the laws relating
to trade unions. It came into force in 1947, and is amended from time to
time to accommodate changes.
Trade Union Act: Trade union act was formulated in 1926, in order to
recognize various unions and to define laws in that regard. This has given
recognition to the existence of trade unions as well as pu tting restrictions
on any involuntary associations.
Factories Act: Factories act was formulated in 1948, for regulating
working conditions in the factories and to ensure that basic minimum
requirements for health, safety, welfare, working hours, leave and
holidays, of the workers are provided and maintained.
Industrial Dispute Act: Industrial dispute act was formulated in 1947 so
as to maintain industrial harmony and peace by providing a mechanism for
investigation and settlement of industrial disputes.
5.7 EXERCISE Fill In The Blanks:
1. Industrial relation describes the relationship between ________.
2. Industrial relation safeguards _______ of Labour and management.
3. Trade union act was passed for creating rules for the regulation and
monitoring __ ______.
4. ______ Members forming trade union can apply for Registration of
Trade Union. munotes.in

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74 Industrial Relation Act 5. “Factory” means any premises where _____ workers are working in
preceding 12 months.
6. ______ Refers to any third person appointed to look at disputes.
7. A __ ______ consist of one person appointed by the appropriate
government.
8. The Central government shall by notification in Official Gazette
appoint one or more ________.
Answers: - 1. Employer -employee, 2. Interest, 3. Trade Unions, 4. seven
or more, 5. 10 or more, 6. Arbitrator, 7. Labour Court, 8. National
Tribunal.
Match The Followin g: I II i) Trade Union Act a) 1833 ii) Factories Act b) Any person employed in an industry iii) Industrial Dispute Act c) A written agreement iv) Workmen d) 1947 v) Settlement e) 1926 Answer: - I) – e, ii) – d, iii) - a, IV) – b, v) - c
Answer In Brief :
1. Explain features and objectives of Industrial Relation.
2. Explain Trade Union Act
3. Describe various provisions of Factories Act.
4. Explain various auth orities under Industrial dispute act and their
duties.
Write Short Notes:
1. Arbitrator
2. Factory
3. Conciliation Officer
4. Amendments in Factories act


*****

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75
MODULE - III
6
LABOUR LEGISLATION
Unit Structure
6.0 Objective
6.1 Introduction
6.2 Child& Women Labour Act – 1986
6.3 Social Security Act -2016
6.4 Prevention of Sexual harassment Act – 2013
6.5 Payment of Gratuity Act -2015
6.6 Provident Fund Act -1952
6.7 Minimum Wages Act 2016
6.8 Payment of Wages Act -1991
6.9 Workmen Compensation Act -2014 / ESI Schemes
6.10 Summary
6.11 Exercise
6.0 OBJECTIVE After studying this u nit the student will be able to :
 Understand the concept Industrial Relation Act
 Knowledge abo ut changes in trade Union Act & Factories Act
 Know about the changes in Child & Women Labour Act
 Know about the changes Social Security.
 Understand changes in Employees Act
6.1 INTRODUCTION Labour Legislation is the term that is used to describe all the r elevant laws
related to labour / workmen. With Industrial growth, it was important to
have some legislative body or arrangement that can mediate between
labour and management. The purpose is to provide safety and security to
labour class and there by ensur e avoidance of exploitation.
Various Labour laws, workmen compensation act, women exploitation act
and grievances act are covered in Labour legislation.
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76 Labour Legislation 6.2 CHILD LABOUR ACT The Government of India had formulated the legislation of The Child
Labour Act 1 986 in order to regulate and control child Labour practice.
Soon in 2016 Government of India made substantial changes in the Act
and a complete prohibition has been imposed in terms of employment of
children. As per the prohibition no child below the age o f 14 years can be
indulged in any kind of employment. The Act also clarified provisions
relating to the employment relating to children who are of the age 14 years
or above.
The prohibited occupation for children under Act is:
 Occupations that are relat ed to the transport of passengers, goods or
mails by railway;
 Cinder picking, clearing of an ash pit or building operation in the
railway premises;
 Working in a catering establishment that is situated at a railway
station and if it involves moving from one platform to another or from
one train to another or going into or out of a moving train;
 The occupation, which involves work, related to the construction of a
railway station or any other work where such work is done in close
proximity to or between the r ailway lines;
 Any occupation within the limits of any port;
 Work, which involves the selling of crackers and fireworks in shops
having a temporary license;
 Working in Slaughter houses .
Apart from the occupations the Act also provides guidelines pertaining t o
certain prohibitions of processes where children above the age of 14 years
cannot be employed. They are:
 Occupations related to the transport of passengers, goods or mails by
railway;
 Cinder picking, clearing of an ash pit or building operation in the
railway premises;
 Working in a catering establishment which is situated at a railway
station and if it involves moving from one platform to another or from
one train to another or going into or out of a moving train;
 The occupation, which involves work, re lated to the construction of a
railway station or any other work where such work is done in close
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77 HRM The Central Government has the power to do any amendments in the list
of prohibited occupation or processes, by not ification in the Official
Gazette. The proposed amendments need to be given at least 3 months
advance.
The Central Government may, constitute The Child Advisory Committee
as advisory committee by giving notification in the Official Gazette
Committee can ad vise the Central Government to add occupations or
processes to the Schedule. The Central Government appoints the members
of the Committee but the Committee should not exceed more than 10
members. The Committee shall also consist of a Chairman. Committee
shall meet whenever it is necessary. The Committee can appoint two or
more sub committees if required,
Regulations:
The Child Labour Act lays certain regulations that an employer suppose to
follow while employing a child in the establishment:
Working Hours and period of working:
 Number of hours for which a child can work in the establishment is
not more than 3 hours, followed with 1 hourbreak.
 The total number of hours of work for a child employee shall not
exceed six hours, with a break of 1 hour interval .
 The employer cannot make a child employee work between 7 p.m.
and 8 a.m.
 No employer must permit the child employee to work overtime.
 If a child has already worked in an establishment in a day, and then
such a child must not be permitted to work in an other establishment
on the same day.
 Every child employee is allowed to have one day complete off every
week
If an employer employs a child or permits a child to work in contravention
of the provisions of, the employer shall be liable for punishment with
imprisonment for a term which may extend to 1 year or with fine not less
than rupees 10,000 and w hich may extend to Rs 20,000 or with both.
6.2.1. Recent Changes/ Amendments :
Minors 14 to 15 years of age:
 may work up to 3 hours on a school day,
 8 hours on a non-school day, and munotes.in

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78 Labour Legislation  18 hours in a week, between 7 a.m. and 7 p.m. when school is in
session, until 9 p.m. from June 1st through Labor Day, and as many as
40 hours per week when school is out.
6.2.2 Women Labour Law:
Large segment of women in various e stablishments was growing rapidly
and legislation was required to provide protection to male dominated
society. Hence for the safety and security of women certain provisions
have been made in the form of Women Labour protection Act. The Act
was passed in o rder to provide guidelines for employer to follow while
employing women.
Rights of Working Women in Factories :
 Women must have separate toilets and washrooms with doors.
 If a factory has more than 30 women workers the employer must
provide a crèche for the workers children.
 Women cannot be made to lift more than the prescribed weight.
 Women cannot be made to clean or oil any moving machine.
 Women cannot be made to work more than 48 hours in a week.
 Women must get one day off in a week.
 Women cannot be ma de to work for more than 5 hours at a stretch.
 Women cannot be made to work only between 6 in the morning and 7
in the evening.
 State government can grant exemption to nay factory or group or class
of factories, but no woman can be permitted to work duri ng 10 PM to
5 AM.
 Shift can change only after weekly or other holiday and not in
between.
6.2.3 Recent Changes /Amendments:
 An amendment has later been introduced related to night shifts. As
per this amendment, women can be kept for a job between 7pm t o 6
am.
 A crèche arrangements need to be maintained for children below the
age of 5years inside the establishment.
6.3 SOCIAL SECURITY ACT The first major Social Security program in Southeast Asia came into
operation in India on February 24, 1952. The Soci al Security Act and munotes.in

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79 HRM other related laws were passed for the material needs of individuals and
families, and give protection to aged and disabled. The various programs
under Social Welfare are established under Em ployee State Insurance
Program that includes :
 Retirement Insurance
 Survivor Insurance
 Disability Insurance
 Hospital and Medical Insurance
 Medicine
 Medicine / Drug Cost
Retirement Insurance : Retirement Plans are life/annuity plans that are
specially designed to meet post -retirement needs such as med ical and
living expenses and to provide financial independence.
Survivor Insurance: Survivor insurance is life insurance scheme that is
being provided to the dependent per son of the deceased person, inorder to
grant financial assistance in his absence.
Disability Insurance : This is the insurance that is being given when an
individual suffer some disability, may be in accident or some ailment.
Hospital and Medical Insurance: Under this program the individual can
avail medical and hospital facility during h is tenure as well as after his/her
retirement.
Medicine / Drug Cost: under this scheme all expenses pertaining to bills
of medicine is reimbursed for an individual during the tenure as well as
after retirement.
6.4 PREVENTION OF SEXUAL HARASSEMENT - ACT The sexual harassment of women at workplace is a legislative Act in India
for providing protection to women against sexual harassment at
workplace. The Act came into force on 9th December 2013.
Features:
 The Act defines sexual harassment at workplace and als o provides
mechanism for redressed against it.
 The definition of "aggrieved woman", who will get protection under
the Act is extremely wide to cover all women, irrespective of her age
or employment status, whether in the organized or unorganized
sectors, p ublic or private and covers clients, customers and domestic
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80 Labour Legislation  An employer has been defined as any person who is responsible for
management, supervision, and control of the workplace and includes
persons who formulate and administer policies o f such an
organization
 While the "workplace" is confined to the traditional office set -up
where there is a clear employer -employee relationship,
 The Committee is required to complete the inquiry within a time
period of 90 days and on completion of the in quiry, the report will be
sent to the employer or the District Officer,
 Every employer is required to constitute an Internal Complaints
Committee at each office or branch with 10 or more employees. The
District Officer is required to constitute a Local Co mplaints
Committee at each district, and if required at the block level
 The Complaints Committees are required to provide for conciliation
before initiating an inquiry, if requested by the complainant.
 The inquiry process under the Act should be confidenti al and the Act
lays down a penalty of Rs . 5000 on the person who has breached
confidentiality.
 The Act requires employers to conduct education and sensitization
programs and develop policies against sexual harassment,
 Penalties have been prescribed for emp loyers. Non -compliance with
the provisions of the Act shall be punishable with a fine of up to
50,000. Repeated violations may lead to higher penalties and
cancellation of license or deregistration to conduct business.
6.5 PAYMENT OF GRATUITY ACT The Payme nt of Gratuity Act, 1972 is an Indian law that makes certain
industries pays a one -time gratuity to retired employees. It is a retire ment
benefit given to employee, i n order to provide financial security. The
gratuity is 15 days' wages for every year of em ployee service, or partial
year over six months The Act is applicable to all factories, mines,
oilfields, plantations, ports and railway companies, where 10 or more
persons are employed on any day preceding 12 months. Gratuity amount is
payable after retir ement to the employee by the employer. An employee
need to have worked continuously in an organization for 5 years The
clause of “continuous 5 years” service is not applicable if the termination
has happened due to death or disablement, hence mandatory gr atuity is
payable.
Gratuity is paid at a rate of 15 days wages for every completed year of
service or part thereof in excess of six months. The wages here means
wages last drawn by the employee. The maximum amount of gratuity that
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81 HRM Gratuity amount is pa yable in cash to employee or if desire d in demand
draft or by cheque. Further in case of gratuity amount to be paid to
nominee who is minor, then the controlling authority will deposit it as
term deposit in State Bank of India or any subsidiaries or any Nationalized
Bank.
6.5.1 Recent Amendments/ Changes:
In 2010 the maximum capping of gratuity amount payable to employee
has been increased from 10 to 20 lakhs.
Another amendment is with respect to change in the days of m aternity
leave granted to females. The amendment has increased the number of
maternity day’s period from 12 weeks to 26 weeks.
6.6 PROVIDENT FUND ACT Provident Fund Act is created to provide financial security and security to
elderly people. It involves h elping employees with savings a fraction of
salary every month. EPFO (Employee Provident Fund Organization) is
one of the statutory bodies.
 It is one of the statutory deductions done by the employer at the time
of payment of salary.
 The Act made provisions for the security that can be provided after
retirement, or to the dependent in case of death of an individual.
 It is the compulsory contributory fund for the future of an employee
after retirement.
 The Act is applicable to whole of India except Jammu and Kashmir
 Eligibility for the Act to applied is, any industry employing more than
20 employees as notified by Central govt.
6.6.1 Eligibility and Entitlement:
Any employee employed directly or through contractor and is receipt of
wages is eligible to become member of Provident Fund
Irrespective of any employee being permanent or on probation, they are
eligible of joining the PF scheme
Minimum 10% of basic pay for establishment employing less than 20
person and maximum of 12% of basic pay is deposited In PF.
6.6.2 Contribution :
12% of employees’ basic pay is transferred onwards PF
12% per employee is employer’s contribution towards PF
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82 Labour Legislation 6.6.3 Recent Changes In Pf Act:
 An amendment has been introduced in PF Act in order to provide
relief to the employers and al so to increase the monthly take -home
pay of employees and reduced the EPF contribution from 12% to 10%
for both employers and employees
 In an employee’s monthly basic salary is up to Rs 1.75 lakh, and then
monthly contribution to the PF would be a maximum of Rs 20,833 or
Rs 2.5 lakh in a year. Till this limit, the entire balance in employee’s
PF account remains tax -exempt.
 As per EPFO directives, seeding KYC’s (Adh ar) is mandatory for all
employees. Otherwise, the contribution of monthly benefits and
subseq uent interest will not take place.
 As per EPF guidelines, members (employees) who have an EPF
account must update their nominee(s) in the EPF portal.
 As per a 2019 ruling from the Apex court, employees whose salary
remains below the threshold limit of PF m embership, i.e., INR
15,000/ -, shall also include other allowances paid to the employee(s)
as regular income in calculating PF and contributing accordingly.
6.7 MINIMUM WAGES ACT A minimum wages bill was passed in Central legislative assembly in April
1946 and came into force with effect from March 1948, extending to
whole of India. Minimum wages Act came in to force in order to secure
welfare of unorganized workers in certain industries by fixing minimum
rates of wages so as to avoid any exploitation of wo rkers by employer.
6.7.1 Objective:
 To provide minimum wages for workers employed in an organized
sector
 To avoid exploitation of workers
 To empower the Government to take steps for fixing minimum wages
and revising it in a timely manner.
6.7.2 Fixation of Minimum Wages:
Minimum rates of wages will be revised and reviewed for 5 years by
appropriate Government.
Different minimum rates of wages may be fixed for different scheduled
employments, different classes of work or different localities.

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83 HRM 6.7.3. Boar ds:
Advisory Board:
 Appo inted by appropriate Government
 Coordinate the work of committees and sub -committees
Central Advisory Board:
 To advise Central and State Government in fixation and revision of
minimum wages
 To coordin ate the work of Advisory Board
Each of the Committee, Sub – Committee and The Advisory Board:
Persons to be nominated by the appropriate Government
Independent person not exceeding 1/3rd of its members, one of such
independent person shall be appointed as Chairman by the Appropriate
Government.
Representing employer and employee in scheduled employment in equal
numbers
6.7.4 Wages:
 Minimum wages need to be paid in cash.
 The Appropriate Government may authorize, if required, payment of
minimum wages partly in cash and partly in kind
 The Appropriate Government may authorize supply of essential
commodities at concessional rates.
 Minimum wages has to be paid without any deductions more than the
statutory deductions
 Payment of wages less than the minimum wages on the ground of less
performan ce or output is illegal.
 If the workers has worked for more than 48 hours in a week then the
excess hours will be treated as overtime
 Overtime wage rates is twice the normal wage rates
 Full wages need to be paid to employee if employer is unable to
provide sufficient work, but if employee has not worked by himself
then the deduction in wages will be done.
Complaints:
A Labour Commissioner or any other appointed authority is appointed for
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84 Labour Legislation An aggrieved person can apply for any complaints with regard to payment
of minimum wages, with in a period of 6 months
Payment of wages, less than the minimum wages is offence by employer
and is subject to imprisonment, which may extend to 6 months or fi ne
which may extend to Rs . 500, or both.
6.8 PAYMENT OF WAGES ACT The Payment Pf Wages Act has been formulated in 1936, with the motive
of regulating the payments that need to be paid to any individual employed
in any establishment. It is applicable to whol e of India. The act is intended
to be a remedy against unauthorized deductions made by employer and/or
unjustified delay in payment of wages.
6.8.1 Objectives:
Regulate payment of wages to specific class of workers employed in
industry without any wrongfu l deductions apart from what is mentioned in
the Act . Define regulations around fixing of wage period, time and mode
of payment of wages . Regulates the rights of the workers covered under
this Act .
6.8.2 Provisions/ Features:
Regular Pay:
Payment should b e made before the 7th day of a month where the number
of workers is less than 1000 and 10th day otherwise. The wage -period
shall not exceed 1 month. The Act is applicable only to employees
drawing wages not exceeding Rs. 6500 a month.
Mode of Payment:
Under the act, payment has to be made in currency notes or coins. Cheque
payment or crediting to bank account is allowed with consent in writing by
the employee
Deduction from Wages:
Employer is allowed to effect only authorized deductions, as specified in
the Act. This include fines, absence from duty, Damages or loss on,
deduction for services given to employer recovery of advances and loans
and payment to cooperative society and insurance.
6.8.3 Recent Changes/ Amendements In Payment of Wages Act:
 This Act may be called the Payment of Wages (Amendment) Act,
2017.
 For section 6 of the Payment of Wages Act, 1936, The following
section shall be substituted, namely:
a) All wages shall be paid in current coin or currency notes or by cheque
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85 HRM b) Permit the employer to pay an employee's wages: (i) in coin or
currency notes; or (ii) by cheque; or (iii) by crediting them into his
bank account. The Bill removes the requirement of obtaining written
authorisation for payment of wages by cheque or through a bank
account.
c) Salary must be paid with in the 7th day of the month when there are
less than 1000 employees. In other cases, it must be 10th of the
month.
d) The employer has to maintain registers like the register of wages,
register of fines, register of advances and register of wage deductions
in case of damage or loss.
e) The total salary deduction will not exceed more than 75% of the total
wage of the employee.
f) The ceiling of minimum wages has been increased from th e caping of
Rs18000 to Rs . 24000, thereby making compulsory for payment of
minimum Rs . 24000 as monthly basis
6.9 WORKMEN COMPENSATION ACT The workmen's compensation act, 1923, is a type of social security
legislation and deals with the compensation paid t o an individual or his
dependent, in event of an accident or injury including some occupational
disease that arises out of or during the employment and those results in
total or partial disablement or demise of the worker.
6.9.1 Objective :
The Workmen’s Com pensation Act aims at providing some relief to the
worker or his dependent in case of an accident, or injury causing
disablement or death of workmen.
Scope:
The Act is applicable to whole of India. It covers workmen whose
occupation is hazardous and facto ries, mines, construction works
transport, railways, ships etc.
The Act is not applicable to workmen of Armed Forces of Union
Some Important Definition:
a. Commissioner:
Refers to an authority appointed by the appropriate government for
workmen’s compe nsation
b. Dependent :
Any person , who is directly related to the deceased worker, like wife kids,
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86 Labour Legislation c. Employer:
Anybody of person whether incorporated or not, or any managing agent or
legal representative of deceased employer
d. Workmen:
A railway servant, a master, seaman, captain, driver, helper, mechanic,
cleaner are all workmen on a contractual basis and is working for
employer and has relationship of master and servant.
e. Disablement:
Means reduction in earning capacity. Disablement ca n be partial, or total.
Conditions for Compensation:
 He must be workmen within the meaning of Act.
 Personal injury has been caused by an accident
 An injury must have be arisen out of the hand in course of
employment
 The injury caused by an accident has re sulted in death or permanent
disability of workmen.
6.9.2 Conditions Not Applicable For Compensation :
 The injury does not result in disability for a period exceeding 3 days
 If the injury results in disability or death where workmen is under the
influence of drink/drug, or worker has willfully not obeyed any order
or instructions for safety
6.9.3 Calculation of Compensation:
 In case of death: - 50% of monthly wages drawn * relevant factors, or
80000, whichever is more.
 Permanent Total Disability – 60% of mo nthly wages * relevant factor,
or 90000 whichever is more
 Permanent Partial Disability - 60% of monthly wages * relevant factor
 Temporary Disablement – 25% of monthly wages
6.9.4 Recent Changes /Amendements In Workmen’s Compensation
Act:
 As per the chang es & amendments carried in 2009, wherever
"workman" or "workmen" is mentioned in the entire Act the same
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87 HRM  The compensation payable on death from the injury, is (i) minimum
of Rs.80000 is increased to Rs.120000 or (ii) 50% o f the monthly
wages of deceased multiplied by the relevant factor.
 The compensation payable on Permanent Total Disablement from the
injury, is (i) minimum of Rs.90000 is increased to Rs.140000 or (ii)
60% of the monthly wages of deceased multiplied by the relevant
factor.
 For the purpose of claims settlement actual monthly wages have to be
calculated without ceiling of Rs.4000/ - which will lead to multifold
increase in claim outgo.
6.10 SUMMARY Child Labour Act : The act was passed in order to protect child ren from
working who are under the age of 14 and also in terms of where on which
kind of jobs a child above the age of 14 years can work.
Women Labour Act : The act was passed to regulate the employment and
working conditions for women in factories. It als o defines the safety and
security of women, working hours, and jobs on which they can work on.
Social Security Act: Act deals with social security and welfare of
unorganized sector
Payment of Gratuity Act : Payment of gratuity act of India deals with the
payment of one time gratuity amount to retired employee. Any
organization with workforce of 10 employees on a single day.
Employees Provident Fond : A provident fund is a compulsory
government managed retirement saving schemes. The employee and the
employer contribute in equal proportion.
Minimum Wages Act : Minimum wages act is formulated for regulating
minimum wages for workmen.
Workmen Compensation Act : Workmen compensation act has been
formulated to prov ide compensation to workers as against any injury,
disability or death of workmen to him or hi s dependent, as the case may be
6.11 EXERCISE Fill In The Blanks:
1. The ________ Act deals with the provisions relating to employment
relating to children who are of the age 14 years and above.
2. Occupations related to Cinder picking, ash pit, construction e tc are
______ under Child Labour Act for Children
3. As per Women’s rig ht to work in a factory, no women can be made to
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88 Labour Legislation 4. _______ are life/annuity plans that are de signed to meet post
retirement needs.
5. The maximum amount of Gratuity paid to an employee is ____ _.
6. If the worker has worked for more than 48 hours, the excess hour will
be treated as _________ as per Minimum wages act.
Answer : - 1.Child Labour, 2. prohibited, 3. 5 hours, 4. Retirement
Insurance, 5. Rs 20 lakhs, 6. overtime
Match The Following: I II i) EPFO a) 2013 ii) Workmen’s Compensation Act b) Regulate and Control
Child Labour Act iii) Prevention of sexual Harassment c) 1972 iv) Gratuity Act d) 1923 v) Child Labour Act e) Statutory Body
Answer: i) e, ii) d, iii) a, iv) c, v) b
Answer In Brief :
1. Explain Child Labour Act .
2. What are different welfare program inclu ded in Social security
program ?
3. Explain M inimum wages Act.
4. What all is covered under workmen’s compensation act?
5. Write short note:
1. Employee Provident Fund Act .
2. Sexual Harassment Act .
3. Payment of wages Act .


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89
MODULE - IV
7
HEALTH AND SAFETY MEASURES
Unit Structure
7.0 Objectives
7.1 Introduction
7.2 Health and safety
7.3 Work life Balance
7.4 Summary
7.5 Exercise
7.6 Reference
7.0 OBJECTIVES 1. To understand health and safety programmes to be conducted in the
organisation.
2. To know the causes and impact of stress among employees.
3. To identify measures for stress management.
4. To know the challenges faced by employees to maintain work life
balance.
5. To understand measures taken to maintain work life balance fr om
employees and organisation.
6. To understand the role of organisation in ensuring physical and
mental health of employees.
7.1 INTRODUCTION This unit consists of health and safety measures to be implemented in the
organisation. The HR department needs to plan and provide the facilities
for the safety of employees. Stress has become of the common factor and
thus its cause and effects are been highlighted. The necessary measures
can also be taken to reduce the impact of stress on employees. Finally, the
concept of work life balance is covered as maintaining balance between
professional and personal life has become a need of an hour. However, to
maintain this balance equal effort need to put by an individual and also the
organisation. The same is been cover ed in the unit.
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90 Health And Safety Measures 7.2 HEALTH AND SAFETY Health includes physical, mental and emotional state of an individual.
Today, many organisations have started showing concern about having
physically and mentally healthy staff. According to the Joint Committee
on Organisational Health of International Labour Organisation, and World
Health Organisation, industrial health is:
 The promotion and maintenance of physical, mental and social well -
being of all workers in all occupation.
 Prevention among workers of ill hea lth caused by the working
conditions.
 Protection of workers in their employment from risk resulting form
factors adverse to health.
 Placing and maintenance of worker in an occupational environment
adapted to his physical and psychological equipment.
7.2.1 Safety Measures :
Organisations are legally responsible for establishing and maintaining a
working environment where employees are able to work safely, without
risk to their physical and psychological health and welfare.
Likewise, employees are obliged to: comply with any legislative
requirements and organisational policies and procedures; work in
accordance with agreed safe work practices; and use all means provided to
protect their health and safety.
Employer and employee health and safety responsibil ities are
often prescribed in legislation and supported by regulations, codes of
practice and standards. These provide a foundation for guidelines on
workplace safety, compensation and rehabilitation.
1. Awareness about workplace hazards: Organisations need t o spread
awareness among employees about various hazards that are likely to
face while working in the organisation at different levels. Awareness
can be made by conducting meetings and placing instructions and
caution messages in the danger zone areas.
2. Safety training to employees: Safety education for all levels of
management personnel and employees is needed as it is vital for any
successful safety program. The goal of safety education is twofold,
one to develop safety consciousness amongst the employees and build
up a favourable attitude on their part towards safety measures and
precautions and secondly to ensure safe work performance on the part
of each employee by developing his skill in the use and operation of
safety equipment. Some organizations enc ourage safety contests and
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91 HRM of accidents are reduced and employees are also motivated. To
enforce plant rules governing safety, employees are reprimanded,
fined and laid off if they are fou nd guilty of any violations
3. Usage of protective safety equipment: The organisation must
provide employees with safety equipment while working. It is mainly
adopted at industries, factories and laboratories. The safety equipment
includes following devices:
 Face masks, goggles, dust masks, respirators, hearing protection,
proper gloves for employees working with machines in
manufacturing department.
 Safety glasses or plastic eye -shields to protect the eyes from the
hazards of fire, glare, dust and fumes.
 Using labels and signs wherever required to guide employees the
usage of equipment.
 PPE (Personal Protection Equipment) to employees working at
construction sites.
4. Avoiding unsafe working conditions: To avoid accidents on regular
intervals the machiner y and equipment must be maintained and
checked. The organisation must provide clean working space for the
employees. Wherever required instructions must be placed about
restricted zone, danger zone etc. The safe and clean environment will
make employees fe el happy while working and thus they will give
their best to the organisation.
5. Appointment of safety committee: A safety committee in the
organisation can take care of safety measures to be followed for the
safety of employees. Although, it is not manda tory but it is advisable
to have safety committee in the organisation. The committee includes
Chairperson, Vice chairperson, Secretary and general members. The
committee must consist combination of workers and management.
The prime objective of this commit tee is to ensure that the employees
are working in safe environment and all the safety measures are
followed.
6. Safe working conditions: The HR department of the organisation
must work on providing safe and healthy working conditions to the
employees. This will generate job satisfaction among employees. The
good and safe working condition includes:
 Good working conditions (Proper lighting and ventilations) .
 Clean sanitation facilities .
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92 Health And Safety Measures  Installing fire extinguish er on every floor and also the set of
instructions stating the usage of the same.
7. Safety engineering: The adoption of proper engineering procedures
to minimize the work hazards is very crucial for any safety program.
New products, processes and machines a re designed, and full
attention is paid to safety engineering in design, layout and
installation. The most important function of safety engineering is to
eliminate the risks posed by the operation of machines, by the
processes of the manufacture of product s and by the structure and
layout of plants and equipment. The machinery which poses danger to
the employee working on it is generally covered or fenced carefully
when it is in operation.
8. Safety audit: A safety audit checks safety programs and practices
followed within an organization. Employers conducting an audit
should check on the information about safety programs and its impact
on employees. The audit can be conducted on yearly basis to evaluate
whether a safety program meets the company's stated goal s or not.
9. Appreciation for adopting safety measures: The organisation must
appreciate those employees following safety measures on regular
basis. The appreciation can be in the form of incentives or
appreciation certificate given to the employee. This will encourage
other employees also to follow the safety measures and thus the
number of accidents will be reduced.
7.2.2 Safety Programme:
The HR department plays a very crucial role in maintaining and keeping
the working space safe and clean for the emplo yees. If necessary
precautions are taken before hand employees can be kept away from
occupational stress and accidents can be reduced upto greater extent.
Whenever possible HR department should spread awareness about safety
practises to be followed in the organisation. Following activities can be
undertaken by HR department for safety of employees in the organisation.
1. Providing safe and hygienic working conditions: Employees are
highly motivated and tend to work extra when safe and pleasant
working environ ment is provided to them. Safe environment includes
workplace free from pollution, dust, etc. A proper sanitation facilities
must is also expected from the organisation’s end. There is an
organisation that provides insurance and mediclaim facilities for
employees.
2. Conducting safety training: Employees working at ground or field
level must be provided with safety training about dealing with
machinery and other equipment in industry. There are chances that any
mishaps may take place at any point of time and t hus employees must
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93 HRM 3. Hazard analysis and control: It is the responsibility of HR department
to monitor and conduct safety audit on regular basis. It also gives
assurance to the employees that they are working in sa fe environment.
4. Regular communication with employees: Regular notices must be
sent to employees communicating the safety rules. Wherever required
HR department can make arrangement to put instructions like be alert,
wear mask or protective kit must be men tioned.
5. Appointing safety committee and safety policy: Although it is not
mandatory to have safety committee yet it’s advisable to have safety
committee. The committee may consist of members from top level
management, HR department, one representative fro m workers and
other one or two employees. The committee can also appoint one
member from outside organisation to give his/her insights.
6. Implementing work safety programs/Creating safety
consciousness: HR department must take proactive measures to
provide safety programs to employees. A workshops can be conducted
to create safety awareness among employees.
7. Suggestions to top management: HR department acts as an
intermediary between top level management and employees. Thus,
employees must be given freedom t o suggest the changes in the
working of the organisation if required. The policy of open door and
transparency in work will make employees feel more comfortable while
working.
8. Giving incentives: If employees are encouraged to do a particular
activity they will be doing it cautiously. Thus, if any of the employee is
following the safety rules and suing safety devices must be appreciated
by giving a gift or appreciation certificate. The habit of using the safety
kit needs to be inculcated among employees by giving them token of
appreciation .
7.2.3 Stress and causes of stress:
Stress can be defined as any type of change that causes physical,
emotional, or psychological strain. Stress is your body's response to
anything that requires attention or action. Everyo ne experiences stress at
some point of time. Mainly, stress can be divided into two parts i.e.
eustress and distress. Eustress refers to positive stress and distress refers to
negative stress. When an employee is been promoted and he feels
burdened leads to eustress and when an employee is been overloaded or
unfairly treated it leads distress.


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94 Health And Safety Measures Following are the causes of stress:

A) Job stress:
1. Change in workplace environment: Every employee has adjusted
and got used to a particular setup of wor k place and hence, the change
in workplace environment may lead to stress like situation among
employees. It may include change in location, ambience, flow of work
etc.
2. Unclear job responsibilities: When the candidate is appointed but
there is no clar ity in their job responsibilities, it may lead to stress
situation among employees. It leads to ambiguity in the role that they
need to perform in the organisation. This may lead to confusion and
employees may be in stressful situation.
3. Role conflict s: When an individual needs to perform a multiple roles
at a same time he gets into the problem of role conflict. It is also
termed as “Catch 22”. An individual may also have fear of not
fulfilling their responsibilities and not able to give justice to the ir
roles.
4. Poor working conditions: If the working conditions are blissful it
motivates employee to give their best whereas, poor working
conditions may lead to stress. Many organisations do not give
importance to ambience, ventilation facilities, ligh ting etc. This may
cause stress like situation among employees.
5. Work overload and under load: If employees are given lot of
responsibilities to perform in limited time and with limited resources
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95 HRM are given monotonous job which leads to stress. There are times when
employees are given less work then their capacity leading to stress.
6. Work timing: Nowadays, many organisations have office timing as
24 X 7 and employees are asked to work in shifts. Thus working in
rotating shifts disturbs the daily routine of an individual. It may also
disconnect them from their family members and hence, it can lead to
stress situation.
B) Group Stress :
1. Lack of social support: Lack of social support indicates the share of
people who report having no friends or relatives whom they can count
on in times of trouble. The cases of isolation and depression are
increasing day by day. The conversion of joint family into nuclear
family has increased the gap am ong family members. Also, the
technology has played major role to keep people occupied. This leads
to Stress among people.
C) Individual stress:
1. Unexpected changes: Life is uncertain and thus many a times,
individuals are not able to take the unexpec ted change. Many
individuals cannot cope up with these uncertain personal losses and
thus leads to stress situation. E .g. Sudden death of loved one,
marriage, etc. Such changes are external in nature and hence cannot
reduce it; as a result one has to bear the stress.
2. Personality: Every individual is different and hence they are to be
dealt differently. Majorly there are 2 types of personality i.e.
 Traits of Personality A –Competitive, Aggressive
 Traits of Personality B – Relaxed, patient, easy goin g,
The person with Personality A will be more stressful as compared to
person with Personality B. Even if all the things are prepared person
with Personality A will be impatient or aggressive before executing it.
On the contrary, People with personality B are light in nature. They
take the things sportingly and thus they are able to deal with the
situation.
3. Family conflicts: Although, many of them have adopted nuclear
family concept yet, the conflicts among family members is increasing.
There are case s when family members are not able to fulfil the
responsibilities and somewhere, they are not able to maintain work
life balance. However, all this situation leads to stress.


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96 Health And Safety Measures D) Other stress:
1. Economic crisis: There are lot of instances in day to da y life that can
lead to stress. The phase like recession and pandemic situation leads
to financial crunch to many of salaried people. When expenses are
increasing and there is no growth in level of income may lead to
stress. Even inflation may give a rise to stress like situation for
employees.
2. Technological changes: While technology has made the work easy
and quick yet, for those people who are not technosavy may come
under stress as they have to learn and work with new system. Even
after providing tra ining not many of the employees are comfortable
and that can led to stress. In fact, such situation can also create a
threat for their jobs.
7.2.4 Role of organisation in ensuring mental health of employee:
Although, stress has become a common phenomenon yet, some corrective
measures are to be taken to reduce its impact on individual. Employees are
not only facing physical stress but also leads to mental stress.
Organisations must take initiative to reduce the mental stress among
employees. Following meas ures can be taken to ensure mental fitness of
employees.
1. Creating happy workplace: Every employer needs to work for
creating healthy work place for employees. Healthy workplace consists
of free flow of ideas, social environment, informal gatherings once in a
while etc. Pleasant working environment helps employees to reduce
mental stress.
2. Connect with people: Spending time with colleagues and other
employees informally gives them a way out to release their stress. Also,
informal gatherings make the organi sation’s environment light. When
employees are connected with people in person, their body releases a
hormone that stops your fight -or-flight response and you feel relaxed.
3. Appointment of a counsellor: Appointment of counsellor is very
much required as it facilitates employees to have Stress -management
counselling is offered by various types of mental -health professionals.
Stress counselling and group -discussion therapy has proven benefits in
reduction of stress symptoms and improvement in overall health a nd
attitude. Counselling doesn't have to be a long -term commitment, but
some people will benefit from a series of stress -counselling sessions
from a qualified therapist.
4. Relaxation sessions: Relaxation is useful in eliminating the stressful
situation or m anaging a prolonged stressful situation more effectively.
Relaxation increases the immune system of your body and thus boost
up your energy during stressed situation. Meditation can also help at
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97 HRM 5. Mentoring: Mentoring in the workpla ce is an established partnership
between colleagues for the purposes of learning and growth. When the
relationship between superior and subordinate is of mentor and mentee,
employees feel comfortable when they have supportive superiors.
6. Modify policies an d practices: To reduce stress on everyone, be as
generous and flexible as possible in updating policies and practices in
reaction to the pandemic and civil unrest. Try to reframe performance
reviews as opportunities for compassionate feedback and learning
instead of evaluations against strict targets.
7. Training: Host seminars or workshops that address depression and
stress management techniques, like mindfulness, breathing exercises,
and meditation, to help employees reduce anxiety and stress and
improve foc us and motivation. Such training will help employees to
have good mental health and happy in their personal and professional
life.
8. Autonomy to work: It refers to giving freedom to employees to work
in their own way. This motivates them to work more effec tively and put
in their efforts. Considering them for decision making process will also
make them feel valued which will boost up their mental health and
productivity will also be high.
9. Regular check -up: Free check -up camps can be organised for
employees and their family members to analyse their physical and
mental health. Organisation can offer free or subsidized clinical
screenings for depression from a qualified mental health professional,
followed by directed feedback and clinical referral when appropr iate. If
required, health insurance with no or low out -of-pocket costs for
depression medications and mental health counselling.
7.2.5 Role of organisation in ensuring physical health of employee :
1. A good welfare facility can boost up the morale and create good
working environment in the organisation. Hence good welfare facilities
must be provided to the employees.
2. Regular feedback must be taken from employees to know whether they
are happy working in the organisation. If any grievances are raised that
must be sorted out immediately.
3. Organisations must take a lead in providing training to employees if
they find it difficult to cope up with any changes. Induction training
must be provided to new joinees so that they get acquainted with the
organisational pol icies.
4. As employees also have their personal responsibilities to fullfill and
hence every organisation must keep the provision of sabbatical leaves.
This will help them to manage their personal and professional
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98 Health And Safety Measures 5. The monotonous work must be reduced in the organisation. However,
job rotation and job evaluation must be adopted to give new and
different experience to employees. Thus, employees will be satisfied
working with the organisati on.
7.2.6 Impact of stress on job performance:

7.3 WORK LIFE BALANCE The term “work life balance” was coined in the year 1986, although its
usage in everyday language has been sporadic for a number of years
(Lockwood, 2003). Work Life Balance (WLB) is a bout creating and
maintaining supportive and healthy work environments, which will enable
employees to have the balance to fulfil responsibilities between
professional and non-professional roles, and thus strengthen employee
loyalty and productivity. Nowad ays, WLB has become a growing concern
for most of the employees.
Work life balance is a concept that supports the efforts of employees to
split their time and energy between paid and unpaid work in their lives. In
short, WLB refers to maintaining equili brium while performing their
personal and professional responsibilities. WLB is a broad concept
including proper prioritising between career and ambition on one hand,
compared to pleasure, leisure, family and spiritual development on the
other.
7.3.1 Importance of work life balance :
Although, many issues are faced by employees to maintain balance
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99 HRM maintain the balance as that will give lead to higher productivity and job
satisfact ion among employees. Following are the importance of
maintaining work life balance.
1. Reduces employee turnover: One of the major reason of employees
leaving the organisation is that they are not able to maintain the balance
between their personal and profe ssional responsibilities. Growing
demand from organisation and higher commitments at personal level
leads to problem of imbalance. Thus, there arises a situation where an
individual needs to select only one i.e. either personal or professional.
Hence, many people quit their job to fulfil their personal
responsibilities. Thus, the turnover can be reduced in the organisation.
2. Retention of the talent: When flexible working hours are introduced
in the organisation and friendly employee welfare facilities are u sed,
employees can be retained for longer period. When employees are
retained the turnover can be reduced and thus creates the goodwill for
the organisation.
3. Good physical health and wellbeing: When employees are able to
maintain balance between their per sonal and professional
responsibilities they are tend to be happy. This leading to good physical
health and mental wellbeing. Fixed timing for work and quality time
with family can also make people feel happy.
4. Reduces stress: Nowadays, work life imbalance has become a one of
the prominent factor leading to stress. Hence, every organisation has
started putting their efforts to give some space to employees to
maintain balance between their personal and professional commitment.
It leads to reduction in stress also increases the productivity level from
all the employees.
5. Increases employee job satisfaction: Employees work happily when
they are given freedom to work and also to manage their personal
responsibilities. Therefore, they are tend to contribute more towards the
growth of organisation and also fulfils the demand of family members.
6. Reduces absenteeism and boredom: Employees tend to escape from
the work when they have some of their personal commitment to be
fulfilled. However, when balance between profe ssional and personal
responsibilities are maintained automatically, the absenteeism is
reduced.
7. Increases productivity: Productivity refers to increase in output at a
same or reduced input. Employees work with dedication and strong
commitment when their p ersonal goals are met. Especially when
organisation takes efforts to maintain this balance.
8. Corporate image: When employees are able to strike a balance
between work life balance the overall performance of employees is
high. Improved performance enables t he firm to get higher returns.
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100 Health And Safety Measures 9. Motivation: Work life balance motivates the employees to perform
better. Employees having work life balance work with application and
dedication. Thus, it a lso leads to higher efficiency in the organisation.
7.3.2 Need of work life balance:
1. Employees must be ever performing and ever learning to adapt
themselves to the dynamic market conditions. Adding to this is the
constant pressure from the superiors t o meet the targets. Thus,
employees have no other choice but to sacrifice their personal space.
The entire process is creating stress on the employees which are the
root cause for many other problems.
2. The numbers of employees suffering from physical ai lments like
hypertension, diabetes, heart attacks have grown considerably in the
past. Women employees are the worst affected due to the long and
stressful working hours and are facing severe gynaecological
problems like cancer and abortions, etc.
3. Empl oyees are spending more time at work rather than at home,
spouses, parents, children are no longer given the time they deserve.
Employees many a times are not able to get their personal space.
4. The working for longer hours at the office, increases emplo yee
interaction. The employees tend to stay in their professional world
(mentally) though they are at home. The effect of professional anger
is carried to home.
5. Employees in the organization are never at peace. When they are at
work place issues at hom e are a concern and vice -versa.
Unknowingly, the employees get into a frustration and cannot give
their best to their profession.
6. The concept of nuclear families have also increased the
responsibilities at personal level and thus individual may find it
difficult to cater the demands of every family members.
7. Today to meet up the requirements of clients employees are expected
to work round the clock in shift system. Thus, working in shifts
disturbs the cycle of individual and gets distanced from thei r loved
ones.
7.4 SUMMARY The unit consist of health and safety measures to be adopted for
employees. The HR department plays a crucial role to maintain healthy
and safe environment for employees to work. The number of employees
experiencing stress is i ncreasing hence, the causes of stress are identified.
Also, the corrective measures to be taken is specified. The challenge to
maintain both professional and personal responsibilities is increasing thus
efforts need to be made by organisational and persona l. The flexible munotes.in

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101 HRM working facilities are important at the same side the strategies taken by
individual is also helpful.
7.5 EXERCISE Fill in the blanks:
1. __________________ can be defined as any type of change that
causes physical, emotional, or psychologi cal strain.
2. In ______________ technique employees work for long hours during
peak periods and bank these extra hours and use them during the quiet
periods.
3. In ___________________ technique employees are given the liberty
to decide their start and end time, while ensuring that they remain
present during the crucial hours of a day.
4. When an individual needs to perform a multiple roles at a same time
he gets into the problem of ________________.
5. _________________ includes physical, mental and emotional state of
an individual.
(Stress, banking of hours, flexible working hours, role conflict, Health)
Match the column: 1. Relaxation A Role conflict 2. Work life balance B Eliminating the stressful situation 3. Compressed work week C 4. Job stress D Maintaining professional & personal responsibilities 5. Individual stress E Reducing working days and having long weekends (1-B, 2-D, 3-E, 4-A, 5-C)
True or False:
1. Health includes physical, mental and emotional state of an individual.
2. Meditation and yoga can lead t o stress.
3. Work life balance is the problem faced only by men.
4. The adoption of proper engineering procedures to minimize the work
hazards is very crucial for any safety program.
5. A safety committee in the organisation can take care of safety
measures to be followed for the safety of employees.
(True – 1, 4, 5 False - 2, 3) munotes.in

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102 Health And Safety Measures Long questions:
1. Explain the role of HR department to improve health and safety
measures in the organisation.
2. Write down the importance of work life balance.
3. What are the cau ses leading to stress to employees in the
organisation?
4. Discuss the different ways in which stress can be managed.
5. Elucidate different techniques undertaken by organisation to maintain
work life balance of employees.
Short notes:
1. Different types of flexible working hours
2. Causes of stress
3. Ways to create work safety environment
4. Individual ways to reduce stress Health and safety environment
7.6 REFERENCES  https://sta tswiki.unece.org/display/GFM/A+Safe+Working+Environm
ent
 https://www.researchgate.net/publication/339643134_Health_and_Saf
ety_of_Employees_in_ Organizations
 https://www.hsa.ie/eng/Topics/Managing_Health_and_Safety/Safety_
and_Health_Management_Systems/
 https://www.medicalnewstoday.com/articles/145855
 https://www.ripublication.com/gjfm -spl/gjfmv6n9_04.pdf

*****
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103
MODULE - IV
8
TALENT MANAGEMENT
Unit Structure
8.0 Objectives
8.1 Introduction
8.2 Employee Engagement
8.3 Managing Millennial
8.4 Talent Management
8.5 Summary
8.6 Exercise
8.7 References
8.0 OBJECTIVES 1. To understand the importance and impact o f engaged employees in
the organisation.
2. To identify different ways to engage the employees in the
organisation
3. To identify role of millennial in organisation.
4. To know the ways to manage millennial in the organisation.
5. To retain talented employees in the organisation.
6. To comprehend the different HR practices followed at global level.
8.1 INTRODUCTION This module covers the recent aspects covered by HR department. Since,
the workforce is changing there is a need to understand the youth and their
working s tyle. One of the biggest challenge faced by HR department is to
engage employees for long term period and hence employee friendly
environment is maintained in the organisation. Thus, drivers of employee
engagement is covered in the chapter. Every organisat ion wants to retain
talented employees so that the efforts on training is minimum. Therefore,
different tactics which can be undertaken to retain the employees are
covered.
8.2 EMPLOYEE ENGAGEMENT Employee engagement is a concept that describes the level of enthusiasm
and dedication a worker feels toward their job. Engaged employees care munotes.in

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104 Talent Management about their work and about the performance of the company, and feel that
their efforts make a difference. An engaged employee is in it for more than
a paycheck and may co nsider their well -being linked to their performance,
and thus instrumental to their company's success.
Hewitt Associates defines employee engagement as the state in which
individuals are emotionally and intellectually committed to the
organisation or group .
Gary Dessler refers employee engagement as being psychologically
involved in, connected to and committed to getting one’s job done.
8.2.1 Levels of employee engagement:
1. Highly engaged employees :
These employees hold very favourable opinions of their work pla ce. When
employees feel connected to their teams, love their jobs, and have positive
feelings about their organization. They are bound to stay and put in extra
effort to help the organization succeed. These "brand advocates" speak
highly of their company to family and friends. They encourage other
employees around them to do their best.
2. Moderately engaged employees :
Such employees see their organization in a moderately favorable light.
They like their company but see opportunities for self -growth. These
employees are less likely to ask for more responsibilities and may
underperform. There is something about the organization or their job that
holds them back from full engagement.
3. Barely engaged employees :
Barely engaged employees feel uninterested toward the ir place of
employment. They usually lack motivation for their position and will only
do as much as they can to get by —sometimes less. They are reluctant to
put any extra efforts for the benefit of the organisation. Barely engaged
employees may be research ing other jobs and are a high turnover risk.
4. Disengaged employees :
Disengaged employees have a negative opinion of their place of work.
They are disconnected from the mission, goals, and future of the
organization. They lack commitment to their position an d responsibilities.
It’s important to understand how to handle disengaged employees so that
their negative perceptions don’t impact the productivity of employees
around them.
8.2.2 Drivers of employee engagement:
It’s not a day’s job to make employee engaged to the organisation.
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105 HRM organisation. Following are the drivers or factors leading to employee
engagement.
1. Positive working culture: A positive work culture always enhances
the energy of employees and generates job satisfaction among
employees. A positive work culture includes flexible working hours,
welfare facilities, peaceful environment etc. Employees also feel self -
belonging towards organisation and they can be positively engaged.
Positive work ing culture includes:
• Comfortable workplaces
• Absence of politics
• Transparency in work
2. Professional development: Every employee joints an organisation
with an intention to have personal and professional growth. However,
when monotonous or underrated work i s given to employees they may
start detaching themselves from the organisation. Hence, along with
the organisational growth the personal growth of an employee must
also be taken care of.
3. Recognition: Employees are highly motivated when their work is
recog nised by superiors or top level management. Recognition not
always be in terms of money but a small verbal appreciation in the
meeting can also encourage employees. In fact, all those employees
who are highly engaged are highly motivated by their superiors for
their work and behaviour in the organisation.
4. Sense of Autonomy: Today, every employee looks for the freedom to
work. They want their own space to work and thus when superiors
keep on delegating task, it is not always accepted by employees.
Therefore , higher the freedom to work higher will be the commitment
and engagement of employee.
5. Equal opportunities: In an organisation all the employees must be
treated at par. Even while giving promotion and increments a proper
justice must be done. Thus all the employees will give their best to
climb the ladder of success and also give their inputs for the better
output. It shows that employees are highly engaged when they are
given opportunities to prove them.
6. Communication: A transparent communication is alwa ys appreciated
in the organisation. When employees’ idea is given an ear they feel
their thoughts are been valued and it makes them work for
organisation for long term period. Many organisations have started
following “Open door policy”.
7. Compensation pack age: Employees work in the organisation to get
suitable compensation. Hence, they must be paid well for their work
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106 Talent Management paid on time, delay in payment may lead to disengagement among
employees.
8. Participation in decision making process: When employees are
allowed to participate in crucial decision making process they feel
privileged and when their ideas are executed they feel all the more
valued. Hence their commitment level towards the organisa tion is
high and they work dedicatedly.
9. Leadership styles: Nowadays, autocratic style of leadership will not
be accepted by employees as they wish to work in their own style.
This may also lead to high employee turnover and lack of job
satisfaction to the employees in the organisation. Thus consultative or
supportive leadership style is more suitable for today’s modern
organisation.
10. Employee friendly policies: When top level manager prepares
employee friendly policies it makes them feel happy and encourag e
them to work more dedicatedly. While framing policies the benefits
for the family members must also been considered. Employee friendly
policies includes:
 Making arrangements for EPFs, Insurance schemes etc
 Leave facilities
 Regular workshops for the b etter working of employees
8.3 MANAGING MILLENNIAL Millennials generally are described as those born in the 1980s and 1990s,
which means the oldest members of the generation —also known as
Generation Y —began entering the workforce in the late 1990s and ea rly
2000s.
According to the Pew Research Center, Millennials surpassed all other
generations in 2016 as the largest portion of the workforce. As of 2017, 56
million members of the workforce were born between 1981 and 1996,
compared to Generation X, which a ccounted for about 53 million, and
baby boomers, who accounted for about 41 million. Millennials now
comprise a significant portion of the workforce, and they walk to their
own beat. They are revolutionizing work culture, and managers must
acknowledge thei r workstyles, especially because by the year 2030, 75%
of the workforce will be millennials. Following are the ways to manage
millennial:
1. Involving millennial as a part of decision making team: One of the
changes in approaches to education during the d ecades when
millennial went to school was an increased emphasis on teamwork
and group projects. From elementary school through college, it was
common for members of this generation to be asked to accomplish
tasks as part of a team. By structuring your staf f in a way that relies munotes.in

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107 HRM on everyone working together with defined roles, you'll be able to
take advantage of what might be strength for some of your younger
employees.
2. Flexibility: There are many forms of workplace flexibility, including
remote working and liberty to select their working hours. A majority
of Millennials desire to have workplace flexibility and it is easily
possible having modern technology many companies are
implementing or considering it. When freedom is given to Millennials
to work in their own way it is likely to have a higher output. Even
small steps toward a more flexible workplace can increase the
motivation levels of Millennials.
3. Encourage a sense of teamwork: Millennials prefer to work as team
rather than in isolation. Social connections are important in life and at
work. By fostering a sense of connection between Millennials and
their coworkers, managers can enhance teamwork, promote goodwill,
and keep the employees more engaged while they're at work. Some
social and light en vironment is encouraged by Millennials.
4. Give millennial purpose and responsibility: To help Millennial
employees find purpose in their work, companies should have a
clearly defined purpose of their own: They need to know where they
are going and show e mployees how they fit into the bigger picture.
With a mission and plan in place, managers can step back and trust
employees to do their jobs well.
5. Accept innovation and experiments: Millennials like to bring
something extra to the table. Allowing them to showcase their
creativity and innovation will help them be more engaged employees
and increase their performance. Subsequently, it will benefit the
organisation also to achieve their goals.
6. Maintain transparency: Millennials are no different from ot her
workers. They want to communicate about their work and possible
career advancements in person. While it’s obvious to think
Millennials prefer digital communication because they grew up with it
and are adept at it, they are no different than other gener ations in
preferring in -person communication in these areas.
7. Counselling: Millennials are of tender age when they join
organisation and hence they need to have someone to guide them and
counsel them. Thus, a meet with the counsellor must be organised.
Many a times an immediate superior of millennial can also act as a
mentor or counsellor.
8. Attention seekers: Millennials have been given attention all of their
life. Anything that smacks of a lack of attention can be seen as a form
of disrespect or bei ng taken for granted. While they don’t want to be
micro -managed, they do want their work and efforts to be noticed and
lauded if they’ve done a good job. Unlike previous generations, you munotes.in

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108 Talent Management generally can’t drop a project in their lap and not follow up through
the process for feedback.
9. Act as a mentor: Gone are those days where superior works like a
boss whereas, now superior needs to act like a mentor. In mentorship,
superior needs to guide, counsel, assist their subordinate to understand
the work and adju st with the environment. It is very useful for new
comers as they feel comfortable to work in the organisation. Mentors
should act as a role model for subordinates to look upon.
10. Creating a good working culture: Millennial employees are
attracted to c ompanies with a strong culture and values that are in line
with their own ideals and lifestyle. They need to feel that what they do
is worthwhile and has a meaning beyond making money. They are
motivated by being part of something important that positively affects
their environment. If the company culture is not consistent, they will
quickly notice and seriously reconsider whether they will stay with
the organization.
8.4 TALENT MANAGEMENT Talent management is an integral part of human resource management .
Talent management can be defined as a deliberate approach implemented
to recruit or hire, develop and retain people with required aptitude or skills
to meet the present and future goals or needs of the organization. Talent
management has become almost an inevitable management process in
modern days. Due to tough competition in every sphere of business world
today, organizations are struggling for the best people from the job
market.
8.4.1 Importance of talent management:
1. Higher Productivity: Producti vity is calculated in terms of input and
output. Talented employees perform better by using smart method of
work. Talented employees tend to contribute more in terms of output
either with same input or less input.
2. Cost reduction: When talented employe es are retained they make
more economical use of materials and machinery. Reduction in
wastage and spoilage together with increase in productivity help to
minimize cost of operations. All the available resources are put to the
best use.
3. Team spirit: Employee working for long term period helps in
inculcating the sense of team work, team spirit, and inter -team
collaborations. It helps in inculcating the passion to learn within the
employees. When all the employees in different department work in
team it h elps to build cordial employee relationship so that individual
goals get aligned with organizational goal.
4. Optimum Utilization of Human Resources: Optimum use of
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109 HRM resources. Talented staff helps in optimizing the utilization of human
resource that further helps organisation to make best use of physical
and financial resources of the organisation.
5. Reduced supervision: Talented employees tend to be self – reliant
and motivated. They need less guidance and control. Therefore,
supervisory burden is reduced and the span of supervision can be
enlarged. Since they are well trained and motivated employees work
efficiently and effectively without supervision.
6. Organisational climate: A talente d employee helps to improve the
climate of an organisation and keep the same for long time. Thus the
relation among the employees and top level management can be
cordial.
7. Strong workforce: The success of every organisation lies on their
employees. Howe ver, getting the talented staff and retaining them for
long time is a task. Thus, HR department needs to work hard to retain
the talented workforce so that the organisation has strong and
intellectual workforce to maintain high productivity in the
organisa tion.
8. Reduces employee turnover: When intellectuals are hired and when
they are satisfied working with the organisation, they are retained in
the organisation for long time. Thus, organisation creates goodwill in
the market and reduces employee turnov er.
9. Consumer satisfaction: A systematic approach to talent management
means that there is an organizational integration and a consistent
approach to management. When systems are more integrated, client
satisfaction rates are usually higher, since they are dealing with fewer
people and their needs are met more rapidly.
8.4.2 Process of Talent Management:

Following are the steps followed in talent management:
1. Workforce planning: An adequate planning of workforce in the
organisation will help to m anage employees and retain talented
employees for longer period of time. The comparison of how many munotes.in

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110 Talent Management employees required and how many employees exist in the
organisation is made to analyse the gap. However, the gap can be
fulfil by either recruiting if there is lack of human resources and
employees can be laid off if there is surplus of employees in the
organisation.
2. Recruitment: In case of requirement of additional staff a proper
recruitment process must be scheduled. The process may consist of
several s tages like aptitude test, group discussion, and expert panel
members to conduct interview process. An open approach towards
recruiting employees from internal and external sources will help
organisation to get talented employees.
3. On boarding: Through the process of on boarding, organisation will
help new talent find their place in the company, both in terms of job
responsibilities as well as within organizational culture. During this
process, the employee should begin to investigate and assess whether
the company is a workable match for employees need.
4. Performance management and support: On regular basis, the
performance of the employees must be monitored and based on which
a planning can be done to retain talented employees in the
organisation for the long period of time. It will also help us to identify
strength and weakness of employees. HR department can work to
reinforce their strengths and overcome the weaknesses.
5. Succession planning: It refers to filling up the vacancies which fall
vacan t at the higher post. Hence, HR department needs to identify the
talent of current employees and try to absorb them at the higher post.
This created good image of the company in the mind of employees
and help them to sustain for long term.
6. Compensation and benefits: Apart from job satisfaction employees
look forward to have good compensation and employee welfare
facilities. Thus, appropriate compensation must be given to employees
and that too on time. Employees will be highly motivated and give
their b est to the organisation if they are given certain monetary
incentives.
7. Critical skill gap analysis: Based on performance appraisal the
strength and weakness of the employee is been identified and thus the
gap can be analysed as which areas need to be looked upon for
improvement. Employees can be provided with training to sharpen
their skills and develop their abilities.
8.4.3 Talent Management and VUCA:
The Term was introduced by US Army War College, describing the
dynamic nature of our world today, a nd consequently this term has got
attention of many organizations to explain a business environment that are
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111 HRM Volatility: The nature, speed, volume, magnitude, and dynamics of
change
Uncertainty: The lack of predictability of issues and events
Complexity: The confounding of issues and the chaos that surrounds any
organization
Ambiguity: The haziness of reality and the mixed meanings of
conditions!
Talent management leaders must prepare for disruptive problems and
opportunities that can not be predicted. Some of the action steps that you
should take to prepare for complete surprises and the VUCA environment
include:
1. Agile employees : Develop as a primary goal a focus on the hiring,
training, and retaining of employees and managers who are agile, who
thrive in a VUCA environment, and those who have the capability of
acting effectively in unforeseen and unpredicted situations.
2. Agile processes : Require agility, flexibility, and a rapid change
capability as an essential component in all current and new talent
management processes and programs.
3. Self-obsolescence of processes : It requires all talent management
programs and processes to include a component that continually “self -
obsoletes” its own current practices and replaces them wit h updated
ones.
4. Training to solve unanticipated problems : Training and
development must create the capability to prepare employees and
managers to identify and effectively handle previously unknown
problems. A high volume of scenario training and simul ations can
make an employee more comfortable and confident when they
encounter a completely new situation. With repetition, employees can
eventually develop skills and their own processes for handling
“brand-new” volatile and complex situations that are fu ll of
uncertainty and ambiguity.
5. Focus on innovation : Prioritize talent management so that it focuses
on innovators, game -changers, and pioneers who are essential for
success in a VUCA environment. Also, to sustain in the market every
organisation need s to be innovative.
6. Rapid learning : Develop systems to increase the speed of individual
and organizational learning. It also develops process to proactively
speed up the movement of employees internally to where they can
have a greater impact.
7. Contingent labour : Use contingent labour as a significant percentage
of the workforce, in order to increase your capability to meet sudden
upturns, downturns, and new skill needs. munotes.in

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112 Talent Management 8. Rapid increase in talent : Develop the capability for rapid hiring for
sudd en needs through poaching, with pre -identifying talent pools and
by building professional communities. It also generates the capability
for rapidly releasing the talent among employees.
9. Outsourcing for flexibility : Use outsourcing to fill sudden need s
and overflow work. It develops talent management processes and
programs that provide a continual competitive advantage over other
talent competitors.
8.4.4 HR practices at Global Level:
In the 1990s several forces were shaping the broad field of HRM. The first
key force, new technologies —particularly information technology —
brought about the decentralization of communications and the shakeup of
existing paradigms of human interaction and organizational theory.
A second important change affecting HRM was n ew organizational
structures that began to emerge during the 1980s and continued through
the 1990s. Because many companies began expanding their operations and
diversifying their products and services, the central decision -making
system failed to respond q uickly enough to managers’ needs and concerns.
Therefore, companies started scrapping traditional, hierarchical
organizational structures in favour of flatter, decentralized management
systems.
A third change factor was accelerating market globalization, which was
increasing competition and demanding greater performance out of
workers, often at diminished levels of compensation.
Other factors changing HRM include: an accelerating rate of change and
turbulence, resulting in higher employee turnover and the need for more
responsive, open -minded workers; rapidly changing demographics; and
increasing income disparity as the demand for highly educated workers
increases at the expense of lowe r-wage employees.
The HR Managers of today may find it difficult becaus e of the rapidly
changing business environment and therefore they should update their
knowledge and skills by looking at the organization’s need and objectives.
1. Managing the Vision: Vision of the organization provides the
direction to business strategy and helps managers to evaluate
management practices and make decisions. So vision management
becomes the integral part of the process of managing human resources
in times to come.
2. Internal Environment: Internal environment involves human
resources, fin ance, machinery, equipments etc. Creating healthy
environment which is responsive to external changes, providing
satisfaction to the employees and sustaining through culture and
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113 HRM 3. Changing Industrial Relations: Industrial r elation involves relation
between management and workers. Both the workers and managers
have to be managed by the same HRM Philosophy and this is going to
be a difficult task for the managers of tomorrow.
4. Wellbeing of the employees: The safety and well being of the
employee is taken care by the HR department by providing them
freedom of work, involving them into decision making process etc.
The physical and mental safety of employees is also equally
important.
5. Job Design and Organization Structure: Instead of depending on
foreign concepts we need to focus on understanding the job,
technology and the people involved in carrying out the tasks.
Depending upon the human power, resources available organisational
structure must be decided.
6. Managing div ersity in workforce: Management of large workforce
possess the biggest challenges for the management, as the workers are
conscious of their rights. Nowadays, diversity of workforce has given
a task to HR manager to manage the crowd.
7. Employee Satisfact ion: Regular reports of performance appraisal are
generated to understand the strength and weaknesses of the
employees. Managers should be aware of techniques to motivate their
employees that their higher level needs can be satisfied. Satisfied
employees t end to contribute more to the productivity of the
organisation.
8. Modern Technology: There will be unemployment due to modern
technology and this could be corrected by assessing manpower needs
and finding alternate employment. If required necessary trai ning must
be organised for the employees to adjust with the changing
environment. Also, HR department needs to arrange for proper
training and workshop so that employees can adapt new working
culture.
9. Managing Human Resource Relations: As the workforce comprises
of both educated and uneducated, managing the relations will be of
great challenge. One of the challenges HR managers face is issues of
up gradation of the skill set through training and development in the
face of high attrition. Indian companie s are recognizing their
responsibilities to enhance the employee’s opportunity to develop
skills and abilities for full performance within the posit ion and for
career advancement.
10. Maintaining work life balance: Today, maintaining work life balance
has become a crucial challenge for every employee and thus HR
department takes corrective measures to solve these problems by
allowing employees to work at flexible hours, work from home,
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114 Talent Management 8.5 SUMMARY In this unit, the role of millennial was highlighted as the majority of
people working at middle and bottom level is of tender age. It has become
crucial to retain talented employees for long time thus, leading to increase
in productivity. Hence, measures taken to reta in talented employees is
been explained in detail. The responsibilities of HR department are
changing due to change in working environment and hence HR
department needs to face different challenges that are also covered in the
above unit.
8.6 EXERCISE Fill in the blanks:
1. People born in the 1980s and 1990s are called as _______________.
2. __________________ is a deliberate approach to recruit or hire,
develop and retain people with required aptitude or skills in the
organisation.
3. _____________ a s the state in which individuals are emotionally and
intellectually committed to the organisation or group.
4. V stands for ______________ in VUCA.
5. ____________________ has a negative opinion of their place of
work.
(Millennial, Talent Management, E mployee engagement, Volatility,
Disengaged employees)
Match the column: 1. Workforce diversity A Filling up vacant places at the top 2. Succession planning B Freedom to work 3. Highly engaged employees C Challenge towards HR department 4. Sense of autonomy D Gen Y 5. Millennial E Have high commitment towards job
(1-C, 2-A, 3-E, 4-B, 5-D)
True or False:
1. Millennials are of tender age when they join organisation and hence
they need to have someone to guide them and counsel them.
2. Employee enga gement is the state in which individuals are
emotionally and intellectually committed to the organisation or group.
3. Industrial relation involves relation between management and
customers.
4. Talented employees need more guidance and attention. munotes.in

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115 HRM 5. Unengaged employees must be retained in the organisation for long
time.
(True – 1,2 False – 3,4,5)
Long answers:
Q1. What are the different ways to manage millennial?
Q2. Explain different drivers of employee engagement.
Q3. Discuss the global level status of HR department in the organisation.
Q4. How to retain the talented employees in the organisation for long
time?
Q5. Explain the process to retain talented employees for longer period in
the organisation.
Short notes:
1. VUCA and talent managem ent
2. Employee engagement
3. Role of Millennial
4. Challenges faced by HR department
5. Talent management process
8.7 REFERENCES  https://cdn.websiteeditor.net/25dd89c80efb48d88c2c233155dfc479/fil
es/uploaded/Managing -Millennials -In-The-Workplace.pdf
 https://www.quantum workplace.com/future -of-work/what -is-
employee -engagement -definition
 https://brauss.in/hrm -basic -notes.pdf
 https://drjohnsullivan.com/articles/vuca -the-new-normal -for-talent -
management -and-workforce -planning/
 https://www.humanresourcesonline.n et/the -importance -of-talent -
management -and-
whycompaniesshouldinvestinit#:~:text=Talent%20management%20h
elps%20employees%20feel,client%20satisfaction%20and%20busines
s%20performance.

****** munotes.in