Human-Resource-Management-munotes

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INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
Unit Structure
1.0 Objectives
1.1 Introduction
1.2 Meaning and Definition of Human Resource Management
1.3 Components of HRM / Scope of HRM
1.4 Objectives of HRM
1.5 Role of HRM
1.6 HRM in the New Millennium
1.7 Summary
1.8 Self Assessment Question s
1.0 OBJECTIVES
After studying this unit, you will be able to:
 Understand the basic concepts of human resource management
(HRM).
 Explain what human resource management is and how it relates to the
management process.
 Provide an overview of functions of HRM.
 Describe how the major roles of HR management are being
transformed.
 Explain the role of HRM in the present millennium.
1.1 INTRODUCTION
Human beings are social beings and hardly ever live and work in isolation.
We always plan, develop and manage our relati ons both consciously and
unconsciously. The relations are the outcome of our actions and depend to
a great extent upon our ability to manage our actions. From childhood
each and every individual acquire knowledge and experience on
understanding others and how to behave in each and every situations in
life. Later we carry forward this learning and understanding in carrying munotes.in

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Human Resource
Management and managing relations at our workplace. The whole context of Human
Resource Management revolves around this core matter of managing
relations at work place.
Since mid 1980’s Human Resource Management (HRM) has gained
acceptance in both academic and commercial circle. HRM is a
multidisciplinary organizational function that draws theories and ideas
from various fields such as management, psy chology, sociology and
economics.
There is no best way to manage people and no manager has formulated
how people can be managed effectively, because people are complex
beings with complex needs. Effective HRM depends very much on the
causes and conditions that an organizational setting would provide. Any
Organization has three basic components, People, Purpose, and Structure.
That predicted future is today’s reality. Most managers in public and
private sector firms of all sizes would agree that people truly are the
organization’s most important asset. Having competent staff on the payroll
does not guarantee that a firm’s human resources will be a source of
competitive advantage. However in order to remain competitive, to grow,
and diversify an organization m ust ensure that its employees are qualified,
placed in appropriate positions, properly trained, managed effectively, and
committed to the firm’s success. The goal of HRM is to maximize
employees’ contributions in order to achieve optimal productivity and
effectiveness, while simultaneously attaining individual objectives (such
as having a challenging job and obtaining recognition), and societal
objectives (such as legal compliance and demonstrating social
responsibility).
1.2 MEANING AND DEFINITION OF HUMAN
RESOURCE MANAGEMENT
HRM is the study of activities regarding people working in an
organization. It is a managerial function that tries to match an
organization’s needs to the skills and abilities of its employees.
Definitions of HRM
Human resources managemen t (HRM) i s a management function
concerned with hiring, motivating and maintaining people in an
organization. It focuses on people in organizations. Human resource
management is designing management systems to ensure that human
talent is used effectively a nd efficiently to accomplish organizational
goals.
HRM is the personnel function which is concerned with procurement,
development, compensation, integration and maintenance of the personnel
of an organization for the purpose of contributing towards the
accomplishments of the organization’s objectives. Therefore, personnel munotes.in

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Introduction to Human
Resource Management management is the planning, organizing, directing, and controlling of the
performance of those operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, “HRM is c oncerned 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 Dessler (2008) the policies and practices involved in
carrying out the “people” or human resource aspects of a management
position, including recruiting, screening, training, rewarding, and
appraising comprises of HRM.
Generally HRM refers to the management of people in organizations. It
comprises of the activ ities, policies, and practices involved in obtaining,
developing, utilizing, evaluating, maintaining, and retaining the
appropriate number and skill mix of employees to accomplish the
organization’s objectives. The goal of HRM is to maximize employees’
contributions in order to achieve optimal productivity and effectiveness,
while simultaneously attaining individual objectives (such as having a
challenging job and obtaining recognition), and societal objectives (such
as legal compliance and demonstrating so cial responsibility).
In short Human Resource Management (HRM) can be defined as the art of
procuring, developing and maintaining competent workforce to achieve
the goals of an organization in an effective and efficient manner.
Nature of HRM
HRM is a manag ement function that helps manager’s to recruit, select,
train and develop members for an organization. HRM is concerned with
people’s dimension in organizations.
The following constitute the core of HRM :
1. HRM Involves the Application of Management Functions and
Principles. The functions and principles are applied to acquiring,
developing, maintaining and providing remuneration to employees in
organization.
2. Decision Relating to Employees must be integrated. Decisions on
different aspects of employees must be consistent with other human
resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization.
Effectiveness of an organization will result in betterment of services to
customers in the form of high quality products supplied at reasona ble
costs.
4. HRM Functions are not confined to Business Establishments Only
but applicable to non -business organizations such as education, health
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Human Resource
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HRM refers to a set of programmes, functions and activities designed and
carried ou t in order to maximize both employee as well as organizational
effectiveness.
1.3 COMPONENTS OF HRM / SCOPE OF HRM
The scope of HRM is indeed vast. All major activities in the working life
of a worker – from the time of his or her entry into an organizatio n until
he or she leaves the organizations comes under the purview of HRM. The
major HRM activities include HR planning, job analysis, job design,
employee hiring, employee and executive remuneration, employee
motivation, employee maintenance, industrial r elations and prospects of
HRM.
The scope of Human Resources Management extends to:
1. All the decisions, strategies, factors, principles, operations, practices,
functions, activities and methods related to the management of people
as employees in any type of organization.
2. All the dimensions related to people in their employment relationships,
and all the dynamics that flow from it.
American Society for Training and Development (ASTD) conducted fairly
an exhaustive study in this field and identified nine broad areas of
activities of HRM.
These are explained below:
Human Resource Planning: The objective of HR Planning is to ensure
that the organization has selected the right types of persons at the right
time at the right place. It prepares human resources invent ory with a view
to assess present and future needs, availability and possible shortages in
human resource. Thereupon, HR Planning forecast demand and supplies
and identify sources of selection. HR Planning develops strategies both
long-term and short -term, to meet the man -power requirement.
Design of Organization and Job: This is the task of laying down
organization structure, authority, relationship and responsibilities. This
will also mean definition of work contents for each position in the
organization. This is done by “job description”. Another important step is
“Job specification”.
Job specification identifies the attributes of persons who will be most
suitable for each job which is defined by job description.
Selection and Staffing: This is the proces s of recruitment and selection of
staff. This involves matching people and their expectations with which the
job specifications and career path available within the organization.
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Introduction to Human
Resource Management Training and Development: This involves an organized attempt to find
out tra ining needs of the individuals to meet the knowledge and skill
which is needed not only to perform current job but also to fulfill the
future needs of the organization.
Organizational Development: This is an important aspect whereby
“Synergetic effect” is generated in an organization i.e. healthy
interpersonal and inter -group relationship within the organization.
Compensation and Benefits: This is the area of wages and salaries
administration where wages and compensations are fixed scientifically to
meet fa irness and equity criteria. In addition labour welfare measures are
involved which include benefits and services.
Employee Assistance: Each employee is unique in character, personality,
expectation and temperament. By and large each one of them faces
probl ems everyday. Some are personal some are official. In their case he
or she remains worried. Such worries must be removed to make him or her
more productive and happy.
Union -Labour Relations: Healthy Industrial and Labour relations are
very important for en hancing peace and productivity in an organization.
This is one of the areas of HRM.
Personnel Research and Information System: Knowledge on
behavioral science and industrial psychology throws better insight into the
workers expectations, aspirations and be haviour. Advancement of
technology of product and production methods have created working
environment which are much different from the past. Globalization of
economy has increased competition many fold. Science of ergonomics
gives better ideas of doing a work more conveniently by an employee.
Thus, continuous research in HR areas is an unavoidable requirement. It
must also take special care for improving exchange of information through
effective communication systems on a continuous basis especially on
moral and motivation.
HRM is a broad concept; Personnel Management (PM) and Human
Resource Development (HRD) are a part of HRM.
1.4 OBJECTIVES OF HRM
The primary objective of HRM is to ensure the availability of competent
and willing workforce to an organization . The specific objectives include
the following:
Human capital: assisting the organization in obtaining the right number
and types of employees to fulfill its strategic and operational goals.
Developing organizational climate : helping to create a climate i n which
employees are encouraged to develop and utilize their skills to the fullest
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Human Resource
Management Helping to maintain performance standards and increase productivity
through effective job design; provi ding adequate orientation, training and
development; providing performance related feedback; and ensuring
effective two way communication.
Helping to establish and maintain a harmonious employer/employee
relationship.
Helping to create and maintain a safe and healthy work environment.
Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the
productive employees.
Ensuring that the organization is in compliance with provincial/territ orial
and federal laws affecting the workplace (such as human rights,
employment equity, occupational health and safety, employment
standards, and labour relations legislation). To help the organization to
reach its goals.
 To provide organization with well -trained and well -motivated
employees
 To increase the employees satisfaction and self -actualization
 To develop and maintain the quality of work life
 To communicate HR policies to all employees.
 To help maintain ethical polices and behavior.
The above state d HRM objectives can be summarized under four specific
objectives: societal, organizational, and functional and personnel.
Societal Objectives : seek to ensure that the organization becomes socially
responsible to the needs and challenges of the society whi le minimizing
the negative impact of such demands upon the organization. The failure of
the organizations to use their resources for the society’s benefit in ethical
ways may lead to restriction.
Organizational Objectives : it recognizes the role of HRM in bringing
about organizational effectiveness. It makes sure that HRM is not a
standalone department, but rather a means to assist the organization with
its primary objectives. The HR department exists to serve the rest of the
organization.
Functional Object ives: is to maintain the department’s contribution at a
level appropriate to the organization’s needs. Human resources are to be
adjusted to suit the organization’s demands. The department’s value
should not become too expensive at the cost of the organiza tion it serves.
Personnel Objectives: it is to assist employees in achieving their personal
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Introduction to Human
Resource Management the organization. Personal objectives of employees must be met if they are
to be main tained, retained and motivated. Otherwise employee
Table 1.1 HRM Objectives and Functions
HRM Objectives Supporting Functions
1. Societal Objectives Legal compliance Benefits
Union - management relations
2. Organizational Objectives Human Resource Planning Employee relations Selection
Training and development Appraisal
Placement Assessment
3. Functional Objectives Appraisal Placement
Assessment
4. Personal Objectives Training and development Appraisal
Placement Compensation
Assessment

1.5 ROLE OF HRM
The role of HRM is to plan, develop and administer policies and programs
designed to make optimum use of an organizations human resources. It is
that part of management which is concerned with the people at work and
with their relationship within enterprises. Its objectives are: ( a) effective
utilization of human resources, ( b) desirable working relationships among
all members of the organizations, and ( c) maximum individual
development. Human resources function as primarily administrative and
professional. HR staff focused on administering benefits and other payroll
and operational functions and didn’t think of themselves as playing a part
in the firm’s overall strategy.
HR professionals have an all encompassing role. They are required to
have a thorough knowle dge of the organization and its intricacies and
complexities. The ultimate goal of every HR person should be to develop
a linkage between the employee and organization because employee’s
commitment to the organization is crucial.
The first and foremost rol e of HR personnel is to impart continuous
education to the employees about the changes and challenges facing the
country in general and their organization in particular. The employees
should know about the balance sheet of the company, sales progress, and
diversification of plans, share price movements, turnover and other details
about the company. The HR professionals should impart such knowledge
to all employees through small booklets, video films and lectures.
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Human Resource
Management The primary responsibilities of Human Resou rce managers are:
1. To develop a thorough knowledge of corporate culture, plans and
policies. To act as an internal change agent and consultant
2. To initiate change and act as an expert and facilitator To actively
involve in company’s strategy formulation
3. To k eep communication line open between the HRD function and
individuals and groups both within and outside the organization \
4. To identify and evolve HRD strategies in consonance with overall
business strategy.
5. To facilitate the development of various organizat ional teams and their
working relationship with other teams and individuals.
6. To try and relate people and work so that the organization objectives
are achieved efficiently and effectively.
7. To diagnose problems and determine appropriate solution particularl y
in the human resource areas.
8. To provide co -ordination and support services for the delivery of HRD
programmes and services
9. To evaluate the impact of an HRD intervention or to conduct research
so as to identify, develop or test how HRD In general has impr oved
individual and organizational performance.
Different management gurus have deliberated different roles for the HR
manager based on the major responsibilities that they full fill in the
organization. Few of the commonly accepted models are enumerated
below.
Pat Mc Lagan has suggested nine roles that are played by HR
practitioners:
1. To bring the issues and trends concerning an organization’s external
and internal people to the attention of strategic decision makers and to
recommend long term strategies to support organizational excellence
and endurance.
2. To design and prepare HR systems and actions for implementation so
that they can produce maximum impact on organizational performance
and development.
3. To facilitate the development and implementation of str ategies for
transforming one’s own organization by pursuing values and visions.
4. To create a positive relationship with the customer’s by providing
them with the best services; to utilize the resources to the maximum
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Introduction to Human
Resource Management to meet the customers needs whether directly connected or indirectly
connected to the organization.
5. To identify the learning needs hence to design and develop structured
learning programmes and materials to help accelerate learn ing for
individuals and groups.
6. To enable the individuals and groups to work in new situations and to
expend and change their views so that people in power move from
authoritarian to participative models of leadership.
7. To help employees to assess their com petencies, values and goals so
that they can identify, plan and implement development plans.
8. He also assists the individual employee to add values in the workplace
and to focus on the interventions and interpersonal skills for helping
people change and sus tain change.
9. He assesses the HRD practices and programmes and their impact and
to communicate results so that the organization and its people
accelerate their change and development.
According to Dave Ulrich HR play’s four key roles.
1. Strategic Partner Role -turning strategy into results by building
organizations that create value;
2. Change Agent Role - making change happen, and in particular, help it
happen fast
3. Employees Champion Role - managing the talent or the intellectual
capital within a firm
4. Administrativ e Role - trying to get things to happen better, faster and
cheaper.
The role HR in organizations has undergone an extensive change and
many organizations have gradually oriented themselves from the
traditional personnel management to a human resources manag ement
approach. The basic approach of HRM is to perceive the organization as a
whole. Its emphasis is not only on production and productivity but also on
the quality of life. It seeks to achieve the paramount development of
human resources and the utmost p ossible socio -economic development.
CURRENT ROLE OF HR MANAGER
According to R.L Mathis and J. H. Jackson (2010) several roles can be
fulfilled by HR management. The nature and extent of these roles depend
on both what upper management wants HR management t o do and what
competencies the HR staff have demonstrated. Three roles are typically
identified for HR:
1. Administrative Personnel practices Legal compliance forms and
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Human Resource
Management Administrative Role of HR
The administrative role of HR management has been h eavily oriented to
administration and record keeping including essential legal paperwork and
policy implementation. Major changes have happened in the
administrative role of HR during the recent years. Two major shifts
driving the transformation of the adm inistrative role are: Greater use of
technology and Outsourcing.
Technology has been widely used to improve the administrative efficiency
of HR and the responsiveness of HR to employees and managers, more
HR functions are becoming available electronically or are being done on
the Internet using Web -based technology.
Increasingly, many HR administrative functions are being outsourced to
vendors. This outsourcing of HR administrative activities has grown
dramatically in HR areas such as employee assistance (c ounseling),
retirement planning, benefits administration, payroll services, and
outplacement services.
2. Operational Actions Managing employee relationship issues
Employee advocate
Operational and Employee Advocate Role for HR
HR managers manage most HR a ctivities in line with the strategies and
operations that have been identified by management and serves as
employee “champion” for employee issues and concerns.
HR often has been viewed as the “employee advocate” in organizations.
They act as the voice for employee concerns, and spend considerable time
on HR “crisis management,” dealing with employee problems that are
both work -related and not work -related. Employee advocacy helps to
ensure fair and equitable treatment for employees regardless of personal
background or circumstances.
Sometimes the HR’s advocate role may create conflict with operating
managers. However, without the HR advocate role, employers could face
even more lawsuits and regulatory complaints than they do now.
The operational role requir es HR professionals to cooperate with various
departmental and operating managers and supervisors in order to identify
and implement needed programs and policies in the organization.
Operational activities are tactical in nature. Compliance with equal
empl oyment opportunity and other laws is ensured, employment
applications are processed, current openings are filled through interviews,
supervisors are trained, safety problems are resolved, and wage and
benefit questions are answered. For carrying out these activities HR
manager matches HR activities with the strategies of the organization.
3. Strategic HR Organizational/business strategies HR strategic or
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Introduction to Human
Resource Management Strategic Role for HR
The administrative role traditionally h as been the dominant role for HR.
However, HR is needed so that significantly less HR time and fewer HR
staffs are used just for clerical work.
Differences between the operational and strategic roles exist in a number
of HR areas. The strategic HR role mea ns that HR professionals are
proactive in addressing business realities and focusing on future business
needs, such as strategic planning, compensation strategies, the
performance of HR, and measuring its results. However, in some
organizations, HR often d oes not play a key role in formulating the
strategies for the organization as a whole; instead it merely carries them
out through HR activities.
Many executives, managers, and HR professionals are increasingly seeing
the need for HR management to become a greater strategic contributor to
the “business” success of organizations. HR should be responsible for
knowing what the true cost of human capital is for an employer. For
example, it may cost two times key employees’ annual salaries to replace
them if they leave. Turnover can be controlled though HR activities, and if
it is successful in saving the company money with good retention and
talent management strategies, those may be important contributions to the
bottom line of organizational performance.
Howeve r, even though this strategic role of HR is recognized, many
organizations still need to make significant progress toward fulfilling it.
Some examples of areas where strategic contributions can be made by HR
are:
1. Evaluating mergers and acquisitions for org anizational
“compatibility,” structural changes, and staffing needs.
2. Conducting workforce planning to anticipate the retirement of
employees at all levels and identify workforce expansion in
organizational strategic plans.
3. Leading site selection efforts fo r new facilities or transferring
operations to international outsourcing locations based on workforce
needs.
4. Instituting HR management systems to reduce administrative time,
equipment, and staff by using HR technology.
5. Working with executives to develop a revised sales compensation and
incentives plan as new products.
It is the era when for the competitive triumph of the organization there is a
need to involve HRM significantly in an integrated manner, which
demands such capabilities from the HR specialists .
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Human Resource
Management The role of HR shifted from a facilitator to a functional peer with
competencies in other functions, and is acknowledged as an equal partner
by others. The HR is motivated to contribute to organizational objectives
of profitability and customer satisfac tion, and is seen as a vehicle for
realization of quality development. The department has a responsibility for
monitoring employee satisfaction, since it is seen as substitute to customer
satisfaction.
According to McKinsey’s 7-S framework model HR plays t he role of a
catalyst for the organization. According to this framework, effective
organizational change is a complex relationship between seven S’s. HRM
(Structure and Systems) and the four Soft S’s (Style, Staff, Skills and
Super -ordinate Goals). Clear ly, all the S’s have to complement each other
and have to be aligned towards a single corporate vision for the
organization to be effective. It has to be realized that most of the S’s are
determined directly or indirectly by the way Human Resources are
managed, and therefore, HRM must be a part of the total business
strategy.
1.6 HRM IN THE NEW MILLENNIUM
Human Resources have never been more indispensable than today. The
competitive forces that we face today will continue to face in the future
demanding organi zational excellence. In order to achieve this extended
quality, organization’s need to focus on learning, quality development,
teamwork, and re -engineering. These factors are driven by the way
organizations implement things and how employees are treated.
HR Can Help in Dispensing Organizational Excellence: To achieve
this paradigm shift in the organization excellence there is a need for
organizations to reform the way in which work is carried out by the
Human Resource department. By designing an entirely ne w role and
agenda that results in enriching the organization’s value to customers,
investors and employees, HR can help in delivering organizational
excellence. This can be carried out by helping line managers and senior
mangers in moving planning from the conference room to the market
place and by becoming an expert in the way work is organized and
executed.
Profitability through growth, technology, intellectual capital, and other
competitive challenges that the companies are facing while adjusting to
unco ntrollably challenging changes in business environment. The novel
role of HR is to rapidly turn strategy into action; to manage processes
intelligently and efficiently; to maximize employee contribution and
commitment and to construct favorable conditions for flawless change.
Human Resource Should be a Strategy Partner: HR should also
become a partner in strategy executions by propelling and directing
serious discussions of how the company should be organized to carry out
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Introduction to Human
Resource Management Creating the conditi ons for this discussion involves four steps. First HR
need to define an organizational architecture by identifying the company’s
way of doing business. Second, HR must be held responsible for
conducting an organizational audit. Third, HR as a strategic par tner needs
to identify methods for restoring the parts of the organizational
architecture that need it. Fourth and finally, HR must take stock of its own
work and set clear priorities. In their new role as administrative experts
they will need to shed thei r traditional image and still make sure all
routine work for the company is done well.
HR Accountability Should be Fixed to Ensure Employee
Commitment: HR must be held accountable for ensuring that employees
feel committed to the organization and contribut e fully. They must take
responsibility for orienting and training line management about the
importance of high employee morale and how to achieve it. The new HR
should be the voice of employees in management discussions. The new
role for HR might also invo lve suggesting that more teams be used on
some projects or that employees be given more control over their own
work schedules.
The New HR Must Become a Change Agent: The new HR must become
a change agent, which is building the organization’s capacity to em brace
and capitalize on change. Even though they are not primarily responsible
for executing change it is the duty of the HR manager to make sure that
the organization carries out the changes framed for implementation.
Improving the Quality of HR: The most important thing that managers
can do to drive the new mandate for HR is to improve the quality of the
HR staff itself. Senior executives must get beyond the stereotypes of HR
professionals as incompetent support staff and unleash HR’s full potential.
Chan ge in Employment Practices: The balance sheet of an organization
shows human resource as an expense and not as a Capital. In the
information age, it is perceived that the machines can do the work more
efficiently than most people however; technology to wor k is dependent on
people.
The challenges for Employment Practice in the New Millennium will
require that there should be strategic involvement of the people and
labour -management partnerships as they both have to take organization
ahead.
Benchmarking Tool Must be Mastered by HR Professionals: HR
professionals must master benchmarking, which is a tool for continuous
improvement directing the human side associated with the strategic path
adopted by the organization. Through this, HR department will start
appreciating the changes happening within and outside the environment
while expanding the knowledge about how to add value to decision
making at the highest level of the organization.
Aligning Human Resources to Meet Better Strategic Objectives: Too
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Human Resource
Management don’t even include key people during strategy formulation resulting in
lacunae between the actual problems and the solutions implemented as
critical inputs are not sought from those individuals who are supposed to
implement the new strategies.
A past CEO of Sony once said that organizations have access to the same
technology and the same information. The difference between any two
organizations is the “people” - the human resource. Empowering the
workforce is an essential tool for aligning human resources with the
achievement of corporate objectives. It is the duty of HR manager to hire
talented human resource and to provide them with a positive environment
where they will be able to utilize their skills and potentials and to create an
environment in which these individuals are comfortable taking risks.
Promote From Within and Invest in Employees: Promoting employees
from within sends a powerful message that the organization’s employees
are valued. New blood and fresh ideas often come from newcomers to the
organization. To avoid stagnation of the firm, new ideas and approaches
are critical. Yet to improve employee morale, promoting individuals from
within the organization is essential. This communic ates that the
organization values their employees and invests in their human resources.
Review the Recruitment and Selection Process: A key element of
human resource planning is ensuring that the supply of appropriate
employees (with the right skill mix) is on board when needed. This
requires a proactive approach whereby the organization anticipates its
needs well in advance. It is important to identify the competencies being
sought. That is, the criteria upon which selection decisions are to be made
shoul d be decided in advance. A firm must identify those skill sets
required by employees to be successful. Charles O’Reilly suggests that
companies should hire for attitude (perhaps even more so than technical
skills). That is, the fit of the individual with t he values of the organization
and the culture of the firm should also be considered when selecting
employees. This has been referred to as the person organization fit. It is no
longer enough to simply consider the person’s fit (and technical skill set)
with the job. Part of the employee’s fit with the organization should focus
on the core values and beliefs of the organization. This will increase
employees’ contributions to the overall success of the organization if they
already embrace the core values of t he organization prior to their
selection.
Communicate Mission and Vision: If employees are expected to
contribute to the attainment of the organization’s strategic objectives, they
must understand what their role is. This can be achieved in part by clearly
communicating the mission and vision statements of the firm. The old
adage is certainly true. If a person does not know where he or she is going,
any road will get him or her there.
The mission communicates the identity and purpose of the organization. It
provides a statement of who the firm is and what their business is. Only
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Introduction to Human
Resource Management extent possible. The vision statement provides a picture of the future state
of the firm. It should be a str etch to attain. This keeps all the
organization’s employees pulling in the same direction with a common
end point. It is much easier to align human resources with corporate
objectives when these employees are familiar with the mission and vision
of the fir m.
As the mission and vision statements are articulated, organizational
members begin to more closely embrace their very meaning on an
individual level. These statements provide a road map leading employees
down the road to achieve organizational objective s. Employees then
identify how they can contribute their unique talents toward the attainment
of these goals.
Use Teams to Achieve Synergy: Synergy can be concisely defined as
“two plus two equals five”. In other words, the whole is greater than the
sum of the parts. So much more can be achieved as people work together.
1.7 SUMMARY
It is critical that today’s organizations align their human resources to
better meet strategic objectives. A failure to do so results in wasted time,
energy, and resources. Organ izations are more likely to achieve this
alignment with their corporate objectives when they review their
recruitment and selection processes for fit, communicate the mission and
vision statements, use joint goal setting, design an appropriate reward
syste m, empower the workforce, promote and develop from within, and
use teams to achieve synergy. Human Resource Management is the
management function that helps the managers to plan, recruit, select, train,
develop, remunerate and maintain members for an organ ization. HRM has
four objectives of societal, organizational, functional and personal
development. An organization must have set policies; definite procedures
and well defined principles relating to its personnel and these contribute to
the effectiveness, continuity and stability of the organization.
1.8 SELF ASSESSMENT QUESTIONS
1. Define HRM? What are its functions and objectives?
2. Elaborate about the nature of HRM and its relevance in present
scenario.
3. Explain the role of HR manager in HRM.
4. “Human Resources have never been more indispensable than today”.
Explain.
5. Write note on:
i. Nature of HRM
ii. Objectives of HRM
iii. Scope of HRM
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2
HUMAN RESOURCE PLANNING
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Human Resource Planning (HRP)
2.3 Objectives of Human Resource Planning
2.4 Need for HRP in Organizations
2.4 Importance of HRP
2.6 Factors Affecting HRP
2.7 HRP Process
2.8 Requisites for Successful HRP
2.9 Barriers to Human HRP
2.10 Summary
2.11 Self Assessment Questions
2.0 OBJECTIVES
After studying this unit, you will be able to:
1. Understand the nature and need of HRP
2. Able to gain information about different factors that affect HRP
3. Realize the importance of human re source planning in current
organizational scenario.
4. Understand the HRP process.
5. Know the pre requisites for successful HRP process.
2.1 INTRODUCTION
As told in the last chapter Human resource management has started to play
a significant role in the overall st rategic development of the organization.
At present HR strategies are designed in tune with the overall business
strategy of the organization. HR strategy should sub serve the interest of
the organization, translating firm’s goals and objectives into a con sistent, munotes.in

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Human Resource Planning integrated and complimentary set of programmes and policies for
managing people.
First part of Human resource strategy is HRP – Human Resource
Planning. All other HR activities like employee hiring, training and
development, remuneration, appraisa l and labour relations are derived
from HRP. HR planning is important in a wide variety of industries and
firms. HR planning affects what employers do when recruiting, selecting,
and retaining people, and of course these actions affect organizational
resul ts and success. The challenges caused by changing economic
conditions during recent year’s show why HR workforce planning should
occur.
Staffing an organization is an HR activity that is both strategic and
operational in nature. As the HR Headline indicate s, HR planning is
important in a wide variety of industries and firms. HR planning affects
what employers do when recruiting, selecting, and retaining people, and,
of course these actions affect organizational results and success. Human
Resources planning mean different means to different organizations. To
some companies, human resources planning mean management
development. It involve helping executives to make better decisions,
communicate more effectively, and know more about the firm. The
purpose of HRP is to make the manager a better equipped for facing the
present and future.
2.2 HUMAN RESOURCE PLANNING (HRP)
1. MEANING AND DEFINITION
Human resource planning is important for helping both organizations and
employees to prepare for the future. The basic goal o f human resource
planning is to predict the future and based on these predictions, implement
programmes to avoid anticipated problems. Very briefly humans resource
planning is the process of examining an organization’s or individual’s
future human resource needs for instance, what types of skills will be
needed for jobs of the future compared to future human resource
capabilities (such as the types of skilled employees you already have) and
developing human resource policies and practices to address potenti al
problems for example, implementing training programmes to avoid skill
deficiencies.
According to Vetter, “HRP is the process by which management
determines how the organization should move from its current man power
position to desired manpower position . Through planning, management
strives to have the right time, doing things which result in both the
organization and individual receiving maximum long run benefits”.
According to Gordon Mc Beath, “HRP is concerned with two things:
Planning of manpower req uirements and Planning of Manpower
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Human Resource
Management According to Beach, “HRP is a process of determining and assuming that
the organization will have an adequate number of qualified persons,
available at proper times, performing jobs which meet the needs of the
enterprise and which provides satisfaction for the individuals involved”
Simply HRP can be understood as the process of forecasting an
organization’s future demands for and supply of the right type of people in
the right number. In other words HRP is the p rocess of determining
manpower needs and formulating plans to meet these needs.
2. PROCESS OF HRP
HRP is a Four -Phased Process :
The first phase involves the gathering and analysis of data through
manpower inventories and forecasts.
The second phase consists o f establishing manpower objectives and
policies and gaining top management approval of these.
The third phase involves designing and implementing plans and
promotions to enable the organization to achieve its manpower objectives.
The fourth phase is concer ned with control and evaluation of manpower
plans to facilitate progress in order to benefit both the organization and the
individual. The long run view means that gains may be sacrificed in the
short run for the future grounds. The planning process enable s the
organization to identify what its manpower needs is and what potential
manpower problems required current action. This leads to more effective
and efficient performance.
3. NATURE OF HRP
Human resource planning is the process of analyzing and identifyin g the
availability and the need for human resources so that the organization can
meet its objectives. The focus of HR planning is to ensure that the
organization has the right number of human resources, with the right
capabilities, at the right times, and in the right places. In HR planning, an
organization must consider the availability and allocation of people to jobs
over long periods of time, not just for the next month or the next year.
Present employees, and/or increasing the number of employees in ce rtain
areas. Factors to consider include the current employees’ knowledge,
skills, and abilities and the expected vacancies resulting from retirements,
promotions, transfers, and discharges. To do this, HR planning requires
efforts by HR professionals work ing with executives and managers.
2.3 OBJECTIVES OF HUMAN RESOURCE PLANNING
The basic objectives of HR Planning are:
1. To ensure optimum utilization of human resources currently available
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Human Resource Planning 2. To assess or forecast the future skill requirement o f the organization.
3. To provide control measures to ensure that necessary resources are
available as and when required.
A series of specified reasons are there that attaches importance to
manpower planning and forecasting exercises. They are elaborated belo w:
1. To link manpower planning with the organizational planning.
2. To determine recruitment levels.
3. To anticipate redundancies.
4. To determine optimum training levels.
5. To provide a basis for management development programs.
6. To cost the manpower.
7. To assist produc tivity bargaining.
8. To assess future accommodation requirement.
9. To study the cost of overheads and value of service functions.
10. To decide whether certain activity needs to be subcontracted, etc.
HRP exists as a part of planning process of business. This is t he activity
that aims to coordinate the requirements for the availability of the
different types of employers. The major activities are the forecasting,
(future requirements), inventory (present strength), anticipating
(comparison of present and future req uirements) and planning (necessary
program to meet the requirements).
The HR forecasts are responsible for estimating the number of people and
the jobs needed by an organization to achieve its objectives and realize its
plans in the most efficient and effe ctive manner.
HR needs are computed by subtracting HR supplies or number of the
employees available from expected HR demands or number of people
required to produce a desired level of outcome. The objective of HR is to
provide right personnel for the right work and optimum utilization of the
existing human resources.
The objectives of human resource planning may be summarized as below:
Forecasting Human Resources Requirements:
HRP is essential to determine the future needs of HR in an organization.
In the a bsence of this plan it is very difficult to provide the right kind of
people at the right time.

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Human Resource
Management Effective Management of Change:
Proper planning is required to cope with changes in the different aspects
which affect the organization. These changes need co ntinuation of
allocation / reallocation and effective utilization of HR in organization.

Realizing the Organizational Goals:
In order to meet the expansion and other organizational activities the
organizational HR planning is essential.
Promoting Employee s:
HRP gives the feedback in the form of employee data which can be used
in decision -making in promotional opportunities to be made available for
the organization.
Effective Utilization of HR:
The data base will provide the useful information in identifyin g surplus
and deficiency in human resources. The objective of HRP is to maintain
and improve the organizational capacity to reach its goals by developing
appropriate strategies that will result in the maximum contribution of HR.
2.4 NEED FOR HRP IN ORGANIZATI ONS
Major reasons for the emphasis on HRP at the Macro level:
1. Employment -Unemployment Situation: Though in general the
number of educated unemployment is on the rise, there is acute shortage
for a variety of skills. This emphasizes on the need for more effective
recruitment and employee retention.
1. Technological Change: The changes in production technologies,
marketing methods and management techniques have been extensive and
rapid. Their effect has been profound on the job contents and job contexts.
Thes e changes have caused problems relating to redundancies, retention
and redeployment. All these suggest the need to plan manpower needs
intensively and systematically.
2. Demographic Change: The changing profile of the work force in
terms of age, sex, literacy , technical inputs and social background has
implications for HRP.
3. Skill Shortage: Unemployment does not mean that the labour market
is a buyer’s market. Organizations generally become more complex and
require a wide range of specialist skills that are rar e and scarce. A problem
arises in an organization when employees with such specialized skills
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Human Resource Planning 4. Governmental Influences: Government control and changes in
legislation with regard to affirmative action for disadvantages groups,
working conditions and h ours of work, restrictions on women and child
employment, causal and contract labour, etc. have stimulated the
organizations to be become involved in systematic HRP.
5. Legislative Control: The policies of “hire and fire” have gone. Now
the legislation makes it difficult to reduce the size of an organization
quickly and cheaply. It is easy to increase but difficult to shed the fat in
terms of the numbers employed because of recent changes in labour law
relating to lay -offs and closures. Those responsible for m anaging
manpower must look far ahead and thus attempt to foresee manpower
problems.
6. Impact of the Pressure Group: Pressure groups such as unions,
politicians and persons displaced from land by location of giant
enterprises have been raising contradictory p ressure on enterprise
management such as internal recruitment and promotion, preference to
employees’ children, displace person, sons of soil etc.
7. Systems Approach: The spread of system thinking and advent of the
macro computer as the part of the on -going revolution in information
technology which emphasis planning and newer ways of handling
voluminous personnel records.
8. Lead Time: The log lead time is necessary in the selection process
and training and deployment of the employee to handle new knowledge
and skills successfully.
2.5 IMPORTANCE OF HRP
HRP is the subsystem in the total organizational planning. Organizational
planning includes managerial activities that set the company’s objective
for the future and determines the appropriate means for achieving th ose
objectives. The importance of HRP is elaborated on the basis of the key
roles that it is playing in the organization.
1. Future Personnel Needs: Human resource planning is significant
because it helps to determine the future personnel needs of the
organization. If an organization is facing the problem of either surplus or
deficiency in staff strength, then it is the result of the absence of effecting
HR planning. All public sector enterprises find themselves overstaffed
now as they never had any plannin g for personnel requirement and went
of recruitment spree till late 1980’s. The problem of excess staff has
become such a prominent problem that many private sector units are
resorting to VRS ‘voluntary retirement scheme’. The excess of labor
problem would have been there if the organization had good HRP system.
Effective HRP system will also enable the organization to have good
succession planning.
2. Part of Strategic Planning: HRP has become an integral part of
strategic planning. HRP provides inputs in strategy formulation process in munotes.in

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Human Resource
Management terms of deciding whether the organization has got the right kind of
human resources to carry out the given strategy. HRP is also necessary
during the implementation stage in the form of deciding to make resource
allocation decisions related to organization structure, process and human
resources. In some organizations HRP play as significant role as strategic
planning and HR issues are perceived as inherent in business
management.
3 Creating Highly Talented Personnel : Even thou gh India has a great
pool of educated unemployed, it is the discretion of HR manager that will
enable the company to recruit the right person with right skills to the
organization. Even the existing staff hope the job so frequently that
organization face f requent shortage of manpower. Manpower planning in
the form of skill development is required to help the organization in
dealing with this problem of skilled manpower shortage.
4 International Strategies: An international expansion strategy of an
organizatio n is facilitated to a great extent by HR planning. The HR
department’s ability to fill key jobs with foreign nationals and
reassignment of employees from within or across national borders is a
major challenge that is being faced by international business. With the
growing trend towards global operation, the need for HRP will as well
will be the need to integrate HRP more closely with the organizations
strategic plans. Without effective HRP and subsequent attention to
employee recruitment, selection, placeme nt, development, and career
planning, the growing competition for foreign executives may lead to
expensive and strategically descriptive turnover among key decision
makers.
5 Foundation for Personnel Functions: HRP provides essential
information for designin g and implementing personnel functions, such as
recruitment, selection, training and development, personnel movement
like transfers, promotions and layoffs.
6 Increasing Investments in Human Resources: Organizations are
making increasing investments in human resource development
compelling the increased need for HRP. Organizations are realizing that
human assets can increase in value more than the physical assets. An
employee who gradually develops his / her skills and abilities become a
valuable asset for th e organization. Organizations can make investments in
its personnel either through direct training or job assignment and the rupee
value of such a trained, flexible, motivated productive workforce is
difficult to determine. Top officials have started ackno wledging that
quality of work force is responsible for both short term and long term
performance of the organization.
7 Resistance to Change: Employees are always reluctant whenever they
hear about change and even about job rotation. Organizations cannot shi ft
one employee from one department to another without any specific
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Human Resource Planning one department to another) there is a need to plan well ahead and match
the skills required and existing skills of the employees.
8 Uniting the Viewpoint of Line and Staff Managers: HRP helps to
unite the viewpoints of line and staff managers. Though HRP is initiated
and executed by the corporate staff, it requires the input and cooperation
of all managers within an orga nization. Each department manager knows
about the issues faced by his department more than anyone else. So
communication between HR staff and line managers is essential for the
success of HR Planning and development.
9 Succession Planning: Human Resource Pla nning prepares people for
future challenges. The’ stars’ are picked up, trained, assessed and assisted
continuously so that when the time comes such trained employees can
quickly take the responsibilities and position of their boss or seniors as
and when s ituation arrives.
Other Benefits:
 HRP helps in judging the effectiveness of manpower policies and
programmes of management.
 It develops awareness on effective utilization of human resources for
the overall development of organization.
 It facilitates select ion and training of employees with adequate
knowledge, experience and aptitudes so as to carry on and achieve the
organizational objectives.
 HRP encourages the company to review and modify its human
resource policies and practices and to examine the way of utilizing the
human resources for better utilization.
2.6 FACTORS AFFECTING HRP
HRP is influenced by several factors. The most important of the factors
that affect HRP are explained below:
Type and Strategy of the Organization: Type of the organization
determines the production processes involve, number and type of staff
needed and the supervisory and managerial personnel required. HR need
is also defined by the strategic plan of organization. If the organization has
a plan for organic growth then organiza tion need to hire additional
employees. On the other hand If the organization is going for mergers and
acquisition, then organization need to plan for layoffs, as mergers can
create, duplicate or overlap positions that can be handled more efficiently
with fewer employees.
Organization first decides whether to be reactive or proactive in HRP.
Organizations either carefully anticipate the needs and systematically plan
to fill the need in advance (proactive) or can simply react to the needs as
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Human Resource
Management The nature of HR plan is also decided upon the formality of the plan. It
can decide to have an informal plan that lies mostly in the minds of the
managers and personnel staff or can have a formal plan which is properly
documented in writing.
The nat ure of HR plan is also depended upon the flexibility that is
practiced in the organization. HR plan should have the ability to anticipate
and deal with contingencies. Organizations frame HRP in such a way that
it can contain many contingencies, which refle ct different scenarios
thereby assuring that the plan is flexible and adaptable.


Fig. 2.1: Factors Affecting HRP.
Figure2.1 summarizes the five factors that influencean organization while
framing its strategic HRP.
Organizational Growth Cycles and Pla nning: All organizations pass
through different stages of growth from the day of its inception. The stage
of growth in which an organization is, determines the nature and extends
of HRP. Small organizations in the earlier stages of growth may not have
well defined personnel planning. But as the organization enters the growth
stage they feel the need to plan its human resource. At this stage
organization gives emphasis upon employee development. But as the
organization reaches the mature stage it experience less flexibility and
variability resulting in low growth rate. HR planning becomes more
formalized and less flexible and less innovative and problem like
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Human Resource Planning Environmental Uncertainties: Political, social and economic changes
affect all organizations and the fluctuations that are happening in these
environments affect organizations drastically. Personnel planners deal
with such environmental uncertainties by carefully formulating
recruitment, selection, tr aining and development policies and programmes.
The balance in the organization is achieved through careful succession
planning, promotion channels, layoffs, flexi time, job sharing, retirement,
VRS and other personnel related arrangements.
During the decl ining stage of the organization HRP takes a different focus
like planning to do the layoff, retrenchment and retirement. In declining
situation planning always becomes reactive in nature towards the financial
and sales distress faced by the company.
Time H orizons: HR plans can be short term or long term. Short term
plans spans from six months to one year, while long term plans spread
over three to twenty years. The extent of time period depends upon the
degree of uncertainty that is prevailing in an organiz ations environment.
Greater the uncertainty, shorter the plan time horizon and vice versa.
Table 2.1: Degree of Uncertainty and Length of Planning Period
Short Planning period -
uncertainty/ instability Long planning period - certainty/
stability
Many new c ompetitors Rapid
changes in social and economic
conditions Strong competitive position
Evolutionary, rather than rapid
social, political and technological
change
Unstable product/ service
demand patterns Stable demand patterns
Small organizational size, poor
management practices (crisis
Management) Strong management practices.

Source: Elmer H. Burack and Nicholas J. Mathis, Human Resource
Planning - A Pragmatic approachto manpower Staffing and development ,
Illinosis, Brace - Park Press, 1987, p. 129.
Type and Quality of information: The information used to forecast
personnel needs originates from a multitude of sources. The forecast
depends to a large extent upon the type of information and the quality of
data that is available to personnel planners. The q uality and accuracy of
information depend upon the clarity with which the organizational
decision makers have defined their strategy, structure, budgets, production
schedule and so on.
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Human Resource
Management Table 2.2: Levels of HRP Information
Strategic
Information General
Organizational
Information Specific
Information Necessary
for HRP

Product mix
Customer mix
Organizational structure
Information flows Job analysis
Skills inventories Competitive
emphasis
Operating and capital
budgets
Functional area
objectives Management inventories Geographic limits
of market Production schedules
Distribution channels Available training
and
development
programmes Sales territories
Production processes Recruitment sources Level of technology
Planning horizons
Labour market analysis
Compensation
programmes
Constitutional
provisions
and labour laws
Retirement plans
Turnover data.

Source: Leap & Crino, Personnel/ Human Resource Management ,
p. 161.
Nature of Jobs Being Filled: Personnel planners need to be really careful
with respect to the nature of the jobs being filled in the organization.
Employees belonging to lower level who need very limited skills can be
recruited hastily but, while hiring employees for higher posts, selection
and recruitment need to be carried out with high discretion. Organization
need to anticipate vacancies far in advance as possible, to provide
sufficient time to recruit suitable candidate.
Outsourcing: Several organizations outsource part of their work to
outside parties in the form of subcontract. Outsourcing is a regular feature
both in the public sector as well as in the private sector companies. Many
of the organizations have surplus labour and hence instead of hiring more
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Human Resource Planning critical activities. Outsourcing of non critical activities through
subcontracting determines HRP.
2.7 HRP PROCESS
HRP effectively involves forecasting personnel needs, assessing personnel
supply and matching demand – supply factors through personnel related
programmes. The HR planning process is influenced by overall
organizational objectives and environment of business.

Fig. 2.2: The HRP Process
Following are the important steps in the process of HRP:
Environmental Scanning:
It refers to the systematic monitoring of the external forces influencing the
organization. The following forces are essential for pertinent HRP -
1. Economic factors, including general and regional conditions.
2. Technological changes
3. Demographic changes including age, com position and literacy,
4. Political and legislative issues, including laws and administrative
rulings Social concerns, including child care, educational facilities and
priorities.
By scanning the environment for changes that will affect an organization,
manag ers can anticipate their impact and make adjustments early.
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Human Resource
Management  Organizational Objectives and Policies:
HR plan is usually derived from the organizational objectives. Specific
requirements in terms of numbers and characteristics of employees should
be derived from organizational objectives.
Once the organizational objectives are specified, communicated and
understood by all concerned, the HR department must specify its objective
with regard to HR utilization in the organization.
 HR Demand Forecast:
Demand fore casting is the process of estimating the future quantity and
quality of people required to meet the future needs of the organization.
Annual budget and long -term corporate plan when translated into activity
into activity form the basis for HR forecast.
For e.g. in the case of a manufacturing company, the sales budget will
form the basis for production plan giving the number and type of products
to be produced in each period. This will form the basis upon which the
organization will decide the number of hour s to be worked by each skilled
category of workers. Once the number hours required is available
organization can determine the quality and quantity of personnel required
for the task.
Demand forecasting is influenced by both internal factors and external
factors: external factors include -competition, economic climate, laws and
regulatory bodies, changes in technology and social factors whereas
internal factors are budget constraints, production level, new products and
services, organizational structure and employee separations.
Demand forecasting is essential because it helps the organization to:
1. Quantify the jobs, necessary for producing a given number of goods,
2. Determine the nature of staff mix required in the future,
3. Assess appropriate levels in different parts of organization so as to
avoid unnecessary costs to the organization,
4. Prevent shortages of personnel where and when, they are needed by
the organization.
5. Monitor compliances with legal requirements with regard to
reservation of jobs.
Techniques like managerial judgment, ratio trend analysis, regression
analysis, work study techniques, Delphi techniques are some of the major
methods used by the organization for demand forecasting.
 HR Supply Forecast:
Supply forecast determines whether the HR departmen t will be able to
procure the required number of workers. Supply forecast measures the
number of people likely to be available from within and outside an
organization, after making allowance for absenteeism, internal movements
and promotions, wastage and c hanges in hours, and other conditions of
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Human Resource Planning Supply forecast is required because it:
1. Helps to quantify the number of people and positions expected to be
available in future to help the organization realize its plans and meet
its objectives.
2. Helps to clar ify the staff mixes that will arise in future.
3. It assesses existing staffing in different parts of the organization.
4. It will enable the organization to prevent shortage of people where and
when they are most needed.
5. It also helps to monitor future complian ce with legal requirements of
job reservations.
Supply analysis covers the existing human resources, internal sources of
supply and external sources of supply.
 HR Programming:
Once an organization’s personnel demand and supply are forecasted the
demand and supply need to be balanced in order that the vacancies can be
filled by the right employees at the right time.
 HR Plan Implementation:
HR implementation requires converting an HR plan into action. A series
of action are initiated as a part of HR plan impl ementation. Programmes
such as recruitment, selection and placement, training and development,
retraining and redeployment, retention plan, succession plan etc when
clubbed together form the implementation part of the HR plan.
 Control and Evaluation:
Contr ol and evaluation represent the final phase of the HRP process. All
HR plan include budgets, targets and standards. The achievement of the
organization will be evaluated and monitored against the plan. During this
final phase organization will be evaluatin g on the number of people
employed against the established (both those who are in the post and those
who are in pipe line) and on the number recruited against the recruitment
targets. Evaluation is also done with respect to employment cost against
the budg et and wastage accrued so that corrective action can be taken in
future.
2.8 REQUISITES FOR SUCCESSFUL HRP
 HRP must be recognized as an integral part of corporate planning
 Support of top management is essential
 There should be some centralization with respect to HRP
responsibilities in order to have co -ordination between different
levels of management.
 Organization records must be complete, up to date and readily
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Human Resource
Management  Techniques used for HR planning should be those best suited to the
data available and d egree of accuracy required.
 Data collection, analysis, techniques of planning and the plan
themselves need to be constantly revised and improved in the light of
experience.
2.9 BARRIERS TO HRP
Human Resource Planners face significant barriers while formulatin g an
HRP. The major barriers are elaborated below:
1. HR practitioners are perceived as experts in handling personnel
matters, but are not experts in managing business. The personnel plan
conceived and formulated by the HR practitioners when enmeshed
with org anizational plan, might make the overall strategic plan of the
organization ineffective.
2. HR information often is incompatible with other information used in
strategy formulation. Strategic planning efforts have long been
oriented towards financial forecast ing, often to the exclusion of other
types of information. Financial forecasting takes precedence over
HRP.
3. Conflict may exist between short term and long term HR needs. For
example, there can be a conflict between the pressure to get the work
done on time and long term needs, such as preparing people for
assuming greater responsibilities. Many managers are of the belief that
HR needs can be met immediately because skills are available on the
market as long as wages and salaries are competitive. Therefore, long
times plans are not required, short planning are only needed.
4. There is conflict between quantitative and qualitative approaches to
HRP. Some people view HRP as a number game designed to track the
flow of people across the department. Others take a qua litative
approach and focus on individual employee concerns such as
promotion and career development. Best result can be achieved if
there is a balance between the quantitative and qualitative approaches.
5. Non-involvement of operating managers renders HRP i neffective.
HRP is not strictly an HR department function. Successful planning
needs a co -ordinate effort on the part of operating managers and HR
personnel.
2.10 SUMMARY
Today, human resource planning is viewed as the way management comes
to grasp the ill -defined and tough -to-solve human resource problems
facing an organization. Human resource planning is the process of
determining the human resources required by the organization to achieve
its goals. Human resource planning also looks at broader issues relatin g to
the ways in which people are employed and developed, in order to
improve organizational effectiveness. HRP is a decision making process
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Human Resource Planning of people with the proper skills, motiv ating them to achieve high
performance and creating interactive links between business objectives are
resource planning activities. HRP sets out requirements in both
quantitative and qualitative terms. Accurate manpower plan is a dream. A
common error of m any managers is to focus on the organization’s short
term replacement needs. Any human resource plan, if it is to be effective,
must be derived from the long term plans and strategies of the
organization. The various approaches to human resource planning u nder
which a number of major issues and trends in today’s work plan that will
affect organization and employees are (1) Examine external and internal
issues, (2) Determining future organizations capabilities, (3) Determining
future organizational needs, an d (4) Implementing human resources
programmes to address anticipated problems. Although change is
occurring very rapidly in the work world it is important for both
organizations and employees to monitor issues and events continuously
and consider their pot ential effects.
2.11 SELF ASSESSMENT QUESTIONS
1. Describe the various forecasting techniques and how these techniques
are being used in human resource planning.
2. Explain the role of HR professional in human resource planning
process in organizations.
3. Explain the b arriers to HRP. Bring out the requisites for effective
planning.
4. Define HRP. Explain the need and importance of HRP.
5. Discuss in detail the process of HRP.
6. Elaborate the factors affecting on HRP.
7. Write note on:
 Objectives of HRP
 Importance of HRP
 Need of HR P

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32 3
JOB ANALYSIS
Unit Structure
3.0 Objectives
3.1 Introduction
3.2 Job Analysis Defined
3.3 Important of Job Analysis
3.4 Steps in Job Analysis
3.5 Methods for Collecting Job Analysis Data
3.6 Job Description
3.7 Writing Job Description
3.8 Job Specificatio n
3.9 Job Design
3.10 Methods of Job Design
3.11 Summary
3.12 Self Assessment Questions
3.0 OBJECTIVES
After completing this unit, you will be able to:
 Define job analysis.
 Understand the basic steps in a Job analysis.
 Identify the major methods of collect ing Job analysis data.
 Recognize the major elements of job descriptions
 Explain how to prepare job descriptions and job specification and their
use.
 Point out and explain job design and its various methods
 Distinguish between job enlargement and job enrich ment.

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33 3.1 INTRODUCTION
Manpower planning is concerned with determination of quantitative and
qualitative requirements of manpower for the organization. Determination
of manpower requirements is one of the most important problems in
manpower planning. Job an alysis and job design, provide this knowledge.
Before going through the mechanism of job analysis and job design, it is
relevant to understand the terms which are used in job analysis and job
design.
Job: A job may be defined as a “collection or aggregatio n of tasks, duties
and responsibilities which as a whole, are regarded as a regular assignment
to individual employees,” and which is different from other assignments,
In other words, when the total work to be done is divided and grouped into
packages, we call it a “job.” Each job has a definite title based upon
standardized trade specifications within a job; two or more grades may be
identified, where the work assignment may be graded according to skill,
the difficulty of doing them, or the quality of work manship. Thus, it may
be noted that a position is a “collection o tasks and responsibilities
regularly assigned to one person;” while a job is a “group of position,
which involve essentially the same duties, responsibilities, skill and
knowledge.” A positi on consists of a particular set of duties assigned to an
individual.
Decenzo and P. Robbins defines other terms as follows:
Task: It is a distinct work activity carried out for a distinct purpose.
Duty: It is a number of tasks.
Position: It refers to one or more duties performed by one person in an
organization, There are at least as many positions as there are workers in
the organization; vacancies may create more positions than employees.
Job: It is a type of position within the organization.
Job Fam ily: It is group of two or more jobs that either call for similar
worker characteristics or contain parallel work tasks as determined by job
analysis.
Occupation: It is a group of similar jobs found across organizations.
Career: It represents a sequence of positions, jobs, or occupations that a
person has over his working life.
3.2 JOB ANALYSIS DEFINITION
Developing an organizational structure, results in jobs which have to be
staffed. Job analysis is the procedure through which you determine the
duties and nature of the jobs and the kinds of people (in terms of skills and
experience) who should be hired for them.’ It provides you with data on
job requirements, which are then used for developing job descriptions
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34 for the job). Some of the definitions of job analysis ate given as follows, to
understand the meaning of the term more clearly:
According to Michael L. Jucius, “Job analysis refers to the process of
studying the operations, dut ies and organizational aspects of jobs in order
to derive specifications or as they called by some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a systematic
exploration of the activities within a job. It is a basic technical procedure,
one that is used to define the duties, responsibilities, and accountability of
a job.”
According to Herbert G Herman “A job is a collection of tasks that can
be performed by a single employee to contribute to the production of some
product or se rvice provided by the organization. Each job has certain
ability requirements (as well as certain rewards) associated with it. Job
analysis process used to identify these requirements.”
Flippo has offered a more comprehensive definition of job analysis as,
“Job analysis is the process of studying and collecting information relating
to the operations and responsibilities of a specific job. The immediate
products of the analysis are job descriptions and job specifications”
Thus, job analysis involves the proc ess of identifying the nature of a job
(job description) and the qualities of the likely job holder (job
specification).
3.3 IMPORTANCE OF JOB ANALYSIS
The job analysis is used as a basis of several interrelated personnel
management activities. Following poin ts elaborates the importance of Job
Analyses:
 Achievement of Goals:
Weather and Davis have stated, “Jobs are at the core of every
organization’s productivity, if they are designed well and done right, the
organization makes progress towards its objectives. Otherwise,
productivity suffers, profits fall, and the organization is less able to meet
the demands of society, customer, employees, and other with a stake in its
success.”
 Organizational Design :
Job analysis will be useful in classifying the jobs and th e interrelationships
among the jobs. On the basis of information obtained through job analysis,
sound decisions regarding hierarchical positions and functional
differentiation can be taken and this will improve operational efficiency.

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35  Organization and Ma npower Planning:
It is helpful in organization planning, for it defines labour in concrete
terms and co -ordinates the activities of the work force, and clearly divides
duties and responsibilities.
 Recruitment and Selection:
Job analysis provides you with i nformation on what the job entails and
what human requirements are required to carry out these activities. This
information is the basis on which you decide what sort of people to recruit
and hire.
 Placement and Orientation:
Job analysis helps in matching the job requirements with the abilities,
interests and aptitudes of people. Jobs will be assigned to persons on the
basis of suitability for the job. The orientation programme will help the
employee in learning the activities and understanding duties that are
required to perform a given job more effectively.
 Employee Training and Management Development:
Job analysis provides the necessary information to the management of
training and development programmes. It helps in to determine the content
and subject m atter of in training courses. It also helps in checking
application information, interviewing test results and in checking
references.
 Job Evaluation and Compensation :
Job evaluation is the process of determining the relative worth of different
jobs in an organization with a view to link compensation, both basic and
supplementary, with the worth of the jobs. The worth of a job is
determined on the basis of job characteristics and job holder
characteristics. Job analysis provides both in the forms of job des cription
and job specification.
 Performance Appraisal:
Performance appraisal involves comparing each employee’s actual
performance with his or her desired performance. Through job analysis
industrial engineers and other experts determine standards to be ac hieved
and specific activities to be performed.
 Health and Safety:
It provides an opportunity for identifying hazardous conditions and
unhealthy environmental factors so that corrective measures may be taken
to minimize and avoid the possibility of acciden ts.

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36  Employee Counseling:
Job analysis provides information about career choices and personal
limitation. Such information is helpful in vocational guidance and
rehabilitation counseling. Employees who are unable to cope with the
hazards and demands of gi ven jobs may be advised to opt for subsidiary
jobs or to seek premature retirement.
3.4 STEPS IN JOB ANALYSIS
The six steps of job analysis are explained below:
 Determine the Use of the Job Analysis Information: Start by
identifying the use to which the i nformation will be put, since this will
determine the type of data you collect and the technique you use to collect
them.
 Collection of Background Information: According to Terry, “The
make -up of a job, its relation to other jobs, and its requirements for
competent performance are essential information needed for a job
evaluation. This information can be had by reviewing available
background information such as organization charts (which show how the
job in question relates to other jobs and where they fit into the overall
organization); class specifications (which describe the general
requirements of the class of job to which the job under analysis belongs);
and the existing job descriptions which provide a starting point from
which to build the revised job description”.
 Selection of Jobs for Analysis: To do job analysis is a costly and
time consuming process. It is hence, necessary to select a representative
sample of jobs for purposes of analysis. Priorities of various jobs can also
be determined. A job ma y be selected because it has undergone
undocumented changes in job content. The request for analysis of a job
may originate with the employee, supervisor, or a manager.
When the employee requests an analysis it is usually because new job
demands have not b een reflected in changes in wages. Employee’s salaries
are, in part, based upon the nature of the work that they perform. Some
organizations establish a time cycle for the analysis of each job. For
example: A job analysis may be required for all jobs every three years.
New jobs must also be subjected to analysis.
 Collection of Job Analysis Data: Job data on features of the job,
requited employee qualification and requirements, should be collected
either from the employees who actually perform a job; or from other
employees (such as foremen or supervisors) who watch the workers doing
a job and there by acquire knowledge about it; or from the outside persons,
known as the trade job analysis who are appointed to watch employees
performing a job. The duties of s uch a trade job analyst are:
 To outline the complete scope of a job and to consider all the physical
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37  To find out why a worker does a job; and for this purpose he studies
why each task is e ssential for the overall result; and
 To increase the skill factor which may be needed in the worker to
differentiate between jobs and establish the extent of the difficulty of any
job.
 Processing the Information: Once job analysis information has been
collected, the next step is to place it in a form that will make it useful to
those charged with the various personnel functions. Several issues arise
with respect to this. First, how much detail is needed? Second, can the job
analysis information be expressed in quantitative terms? These must be
considered properly.
 Preparing Job Descriptions and Job Classifications: Job
information which has been collected must be processed to prepare the job
description form. It is a statement showing full details of the act ivities of
the job. Separate job description forms may be used for various activities
in the job and may be compiled later on. The job analysis is made with the
help of these description forms. These forms may be used as reference for
the future.
 Developin g Job Specifications: Job specifications are also prepared
on the basis of information collected. It is a statement of minimum
acceptable qualities of the person to be placed on the job. It specifies the
standard by which the qualities of the person are me asured. Job analyst
prepares such statement taking into consideration the skills required in
performing the job properly. Such statement is used in selecting a person
matching with the job.
3.4 METHODS FOR COLLECTING JOB ANALYSIS
DATA
As discussed earlier, in formation is to be collected for job analysis. Such
information may be collected by the trained job analysis, superiors
concerned and job holders themselves. Job information is collected
through the following methods:
 Participant Diary/Logs: Workers can be to keep participant
diary/long or lists of things they do during the day. For every activity he or
she engages in, the employee records the activity (along with the time) in a
log. This can provide you with a very comprehensive picture of the job,
especia lly when it’s supplemented with subsequent interviews with the
worker and his or her supervisor. This method provides more accurate
information if done faithfully. However, it is quite time consuming.
Further, each job holder may maintain records according to his own way
which presents problems in analysis at later stage. Therefore, it has limited
application.
 Interview: There are three types of interviews you can use to collect
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38 interviews w ith groups of employees having the same job; and supervisor
interviews with one or more supervisors who are thoroughly
knowledgeable about the job being analyzed. The group interview is used
when a large number of employees are performing similar or identi cal
work, since this can be a quick and inexpensive way of learning about the
job. As a rule, the worker’s immediate supervisor would attend the group
session; if not, you should interview the supervisor separately to get that
person’s perspective on the d uties and responsibilities of the job.
 Critical Incidents : In this method, job holders are asked to describe
incidents concerning the job on the basis of their past experience. The
incidents so collected are analyzed and classified according to the job
areas they describe, A fairly picture of actual job requirements can be
obtained by distinguishing between effective and ineffective behaviors of
workers on the job. However, this method is time consuming. The analyst
requires a high degree of skill to analyz e the contents of descriptions given
by workers.
 Technical Conference Method: This method utilizes supervisors
with extensive knowledge of the job. Here, specific characteristics of a job
are obtained from the “experts.” Although it is a good data gatherin g
method, it often overlooks the incumbent worker’s perception about what
they do on their job.
 Job Performance: Under this method, the job analyst actually
performs the job under study to get first -hand experience of the actual
tasks, and physical and soc ial demands of the job. This method can be
used only for jobs where skill requirements are low and can be learnt
quickly and easily. This is a time -consuming method and is not
appropriate for jobs requiring extensive training.
 Functional Job Analysis: Func tional job analysis (FJA) is employee -
oriented analytical approach of job analysis. This approach attempts to
describe the whole person on the job. The main features of FJA include
the following:
 The extent to which specific instruction are necessary to p erform the
task.
 The extent to which reasoning and judgment are required to perform the
task.
 The mathematical ability required to perform the task.
 The verbal and language facilities required to perform the task.
 Observation Method: Using this method, a j ob analyst watches
employees directly on the job. Observations are made on various tasks,
activities, the pace at which tasks are carried out, and the way different
activities are performed. This method is suitable for jobs that involve
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39 requires that the entire range of activities be observable; possible with
some jobs.
 Questionnaires: The method is usually employed by engineering
consultants. Properly drafted questionnaires are sent out to job -holders for
completion and are returned to supervisors. However, the information
received is often unorganized and incoherent. The idea in issuing
questionnaire is to elicit the necessary information from job holders so that
any error may first be discussed with the employee and, after corrections,
may be submitted to the job analyst.
Questionnaire for Job Analysis
1. Your Name ………..………..………..………..………..………..…
2. Title or Designation of your job ……………………………………
3. Regular or Extra ……………………………………………………
4. Your Department ……………………………………………………
 To whom do you report directly (Name and Title): -------------------
 Description of work:
 Daily Duties:
 Periodical Duties:
 Occasional Duties:
 Your knowledge Requirements:
 Store Procedure and Methods:
 Merchandise:
 What Equipme nt do you use?
 What Materials do you work with or sell?
 If you supervise the work of others, state how many and what their
jobs are.
 To what job would you normally expect to be promoted?
 From what job were you transferred to your present job?
This techniqu e is time consuming and generally does not yield satisfactory
results because many employees do not complete the questionnaire or
furnish incorrect information because of their own limitations. The use of
questionnaire is recommended only in case of those technical jobs where
the job contents are not completely known to the supervisor or the
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40 There are certain standardized questionnaires developed by a few agencies
which are used by various organizations for job analysis. Most of these
questionnaires are of two types: Position Analysis Questionnaire and
Management Position Description Questionnaire that are described as
follows:
 Position Analysis Questionnaire. Position analysis questionnaire
(PAQ) is a highly specialized instrument for analyzing a job in terms of
employee activities. The PAQ developed by Purdue University is a
comprehensive questionnaire for collecting information for job analysis.
In this questionnaire, various job elements have been grouped into six
categories with each category containing relevant job elements resulting
into 195 elements as shown in Table 3.1.
Position Analysis Questionnaire Job Aspects
Information input -Where and how do employee get
information to do their job? No. of
elements
35 Menta l processes -what reasoning, planning,
organizing, and decision making is done?
14 Work output -what physical activities, tools and
machines are used?
49 Relationships -what contact with other people, both
in the company and outside is maintained or
devel oped?

36 Job context - what is the physical and social context
in which the job is maintained?
19 Other job characteristics -what other activities,
conditions or Characteristics not covered by the
categories are relevant?

42

The advantage of PAQ is that it provides a quantitative score or profile of
any job in terms of how that job rates on the basic activities. The PAQ’s
real strength is, thus, in classifying jobs. PAQ’s results can be used to
compare the jobs relative to one another and pay levels can be assigned for
each job.
The major problem with PAQ is the time it takes for a job analyst to fill
out the ratings. However, PAQ has been widely researched and tested and
appears to be both reliable and valid.
 Management Position Description Questionn aire: Management
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41 items relating to managerial responsibilities, restrictions, demands and
other miscellaneous position characteristics. W.W. Tomov and P.R. Pinto
have developed the fo llowing Management position Description factors:
The above methods are the most popular ones for gathering job analysis
data. They all provide realistic information about what job incumbents
actually do. They can thus be used for developing job description s and job
specifications.
3.5 JOB DESCRIPTION
Job description is the immediate product of job analysis process; the data
collected through job analysis provides a basis for job description and job
specification.
Job Description: is a written record of the du ties, responsibilities and
requirements of a particular job. It is concerned with the job itself and not
with the job holders. It is a statement describing the job in such terms as
its title, location, duties, working conditions and hazards.
Flippo has Def ined Job Description as, “A job description is an
organized, factual statement of duties and responsibilities of a specific job.
In brief, it should tell what is to be done. How it is done why. It is a
standard of function, in that defines the appropriate and authorized content
of a job.
According to Pigors and Myres, “Job description is a pertinent picture
(in writing) of the organizational relationships, responsibilities and
specific duties that constitutes a given job or position. It defines a scope of
responsibility and continuing work assignments that are sufficiently
different form that of other jobs to warrant a specific title.”
According to Zerga, who analyzed 401 articles on job description about
30 years ago. A job description helps us in:
1. Job grad ing and classification.
2. Transfers and promotions.
3. Adjustments of grievances.
4. Defining and outlining promotional steps.
5. Establishing a common understanding of a job between employers and
employees.
6. Investigation accidents.
7. Indicating faulty work procedure s or duplication of papers.
8. Maintaining, operating and adjusting machinery.
9. Time and motion studies.
10. Defining the limits of authority.
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42 12. Studies of health and fatigue.
13. Scientific guidance.
14. Determining jobs suitable for occu pational therapy.
15. Providing hiring specifications.
16. Providing performance indicators.
“Job description” is different from “performance assessment.” The former
concerns such functions as planning, co -ordination, and assigning
responsibility; while the latter concerns the quality of performance itself.
Though job description is not assessment, it provides an important basis
establishing assessment standards and objectives.
3.6 WRITING JOB DESCRIPTION
A Job description is a written statement of what the job hold er actually
does, how he or she does it, and under what conditions the job is
performed. This information is in turn used to write a job specification.
This lists the knowledge, abilities, and skills needed to perform the job
satisfactorily. While there is no standard format you must use in writing a
job description, most descriptions contain at least sections on:
Job Identification: It includes the job title, alternative title, department,
division, and plant and code number of the job. The job title ident ifies and
designates the job properly, the department, division, etc., indicate the
name of the department where it is situated – whether it is the maintenance
department, mechanical shop etc. Location gives the name of the place.
This portion of job descr iption gives answer to two important questions: to
what higher level job is this job accountable. And who is supervised
directly.
Job Summary: Job summary describes the contents of the jobs in terms
of activities or tasks performed. Job summary should clea r the nature of
the job. Primary, secondary and other duties to be performed on the job
should clearly be indicated separately.
Duties and Responsibilities: This is the most important phase of job
description and should be prepared very carefully. It descr ibes the duties
to be performed along with frequency of each major duty. Responsibilities
concerning custody of money, supervision and training of staff etc. are
also described in this part.
Example of a Job Description
Job Title: Record Clerk Job No. 011
Supervisor: Record Supervisor Job Grand –III
Supervises: None Date: 2/21/12
Job Summary: Originate, process, and maintain comprehensive records;
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43 Job Duties and Responsibilities :
Review a variety of documents, listings, summarizes, etc, for
completeness and accuracy.
Check records against other current sources such as reports or summaries;
investigate differences and take required action to ensure that records are
accurate and up to date ; compile and summarize data report format as
required.
Implement controls or obtaining, preserving, and supplying a variety of
information. Prepare simple requisitions, forms, and other routine
memorandum.
Provide functional guidance to lower level person nel as required.
Working Conditions: Normal working conditions. But visits sites on
average twice a week. Eight hours per day.
Relationships: With equivalent officers in other departments.
Maintains formal and social contacts with local officials.
Job Char acteristics: Skilled operation of computer, calculating machine,
or key punch machine is not necessarily a requirement of this job.
The above information is correct and approved by:
(Signed) (Signed)
Job Analyst In charge Manager
Supervision: Under it is given number of persons to be supervised along
with their job titles, and the extent of supervision involved general,
intermediate or close supervision.
Relation to Other Jobs: It describes the vertical and horizontal
relationships of work flow. It also in dicates to whom the job holder will
report and who will report to him. It gives an idea of channels of
promotion.
Machine, tools and equipment define each major type or trade name of
the machines and tools and the raw materials used.
Working Conditions: The working environment in terms of heat, light,
noise, dust and fumes etc, the job hazards and possibility of their
occurrence and working conditions should also be described. It will be
helpful in job evaluation.
Social Environment: It specifies the socia l conditions under which the
work will be performed. In this part the size of work group, interpersonal
interactions required to perform the job and development facilities are
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44 3.7 JOB SPECIFICATION
The job specification states the minimum accepta ble qualifications that the
incumbent must possess to perform the job successfully. Based on the
information acquired through job analysis, the job specification identifies
the knowledge, skills, and abilities needed to do the job effectively.
Individuals possessing the personal characteristics identified in the job
specification should perform the job more effectively than individuals
lacking these personal characteristics. The job specification, therefore, is
an important tool in the selection process, fo r it keeps the selector’s
attention on the list of qualifications necessary for an incumbent to
perform the job and assists in determining whether candidates are
qualified.
According to Dale Yoder, “The job specification, as such a summary
properly describ ed is thus a specialized job description, emphasizing
personnel requirement and designed especially to facilitate selection and
placement.”
Flippo has defined job specification as, “Job specification is a statement
of the minimum acceptable human qualities necessary to perform a job
properly. It is a standard of personnel and designates the qualities required
for acceptable performance.”
In is clear from the above definitions that job specification is a statement
of summary of personnel requirements for a j ob. It may also be called
“standard of personal for the selection”
A Job Specification should include:
Physical characteristics: which include health, strength, endurance, age,
height, weight, vision, voice, eye, hand and foot co -ordination, motor co -
ordin ation, and colour discrimination.
Psychological and social characteristics: such as emotional stability,
flexibility, decision making ability, analytical view, mental ability,
pleasing manners, initiative, conversational ability etc.
Mental Characteristics : such as general intelligence, memory, judgment,
ability to concentrate, foresight etc.
Personal Characteristics such as: sex, education, family background, job
experience, hobbies, extracurricular activities etc.
All these characteristics must be classif ied into three categories:
1. Essential attributes which a person must possess.
2. Desirable attributes which a person ought to posses.
3. Contra indicators which will become a handicap to successful job
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45 3.8 JOB DESIGN
Job design is of comparatively re cent origin. The human resource
managers have realized that the design of a job has considerable influence
on the productivity and job satisfaction; poorly designed jobs often result
in boredom to the employees, increased turnover, job dissatisfaction, low
productivity and an increase in overall costs of the organization. All these
negative consequences can be avoided with the help of proper job design.
According to Jon Werner and DeSimone, “Job design is the
development and alteration of the components of a job (such as the tasks
one performs, and the scope of one’s responsibilities) to improve
productivity and the quality of the employees’ work life.”
Job design has been defined by Davis (1966) as: “The specification of the
contents, methods, and relations hips of jobs in order to satisfy
technological and organizational requirements as well as the social and
personal requirements of the job -holder.”
Milkovich and Boudreau defined job design as , “Job design integrates
work content (tasks, functions, and rela tionships), the rewards (extrinsic
and intrinsic) and the qualifications required (skills, knowledge, abilities)
for each job in a way that meets the needs of employees and the
organization.”
Michael Armstrong has defined job design as “the process of deci ding
on the content of a job in terms of its duties and responsibilities, on the
methods to be used in carrying out the job, in terms of techniques, systems
and procedures, and on the relationships that should exist between the job
holder and his superiors , subordinates and colleagues.”
Job design is an attempt to create a match between job requirements and
human attributes. It involves organizing the components of the job and the
interaction patterns among the members of a work group. It helps in
developin g appropriate design of job to improve efficiency and
satisfaction.
PRINCIPLES OF JOB DESIGN:
Principles are the bases of the approach used in job design. Robertson
and Smith (1985) have suggested the following five principles of job
design:
1. To influence skill variety, provide opportunities for people to do
several tasks and combine tasks.
2. To influence task identity, combine tasks and from natural work units.
3. To influence task significance, form natural work units and inform
people of the importance of the ir work.
4. To influence autonomy; give people responsibility for determining
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46 5. To influence feedback; establish good relationship and open feedback
channels.
3.9 METHODS OF JOB DESIGN
The various techniques of job design and redesign ar e discussed below:
Job Simplification: In job simplification, the complete job is broken
down into small subparts; this is done so that employee can do these jobs
without much specialized training. Moreover, small operations of the job
can also be performe d simultaneously so that the complete operation can
be done more quickly. For job simplification, generally time and motion
studies are used.
Job Rotation : Another technique designed to enhance employee
motivation is job rotation, or periodically assigning employees to
alternating jobs or tasks.
Bumpers to vehicles and the following two weeks making final checks of
the chassis. During the next month, the same employee may be assigned to
two different jobs. Therefore, the employee would be rotated among four
jobs. The advantage of job rotation is that employees do not have the same
routine job day after day. Job rotation only addresses the problem of
assigning employees to jobs of limited scope; the depth of the job does not
change. The job cycle of the actua l daily work performed has not been
lengthened or changed. Instead, employees are simply assigned to
different jobs with different cycles.
Because job rotation does not change the basic nature of jobs, it is
criticized as nothing more than having an employ ee perform several
boring and monotonous jobs rather than one. Some employees dislike job
rotation more than being assigned to one boring job because when they are
assigned to one job they know exactly where to report and what work to
expect each day. Work ers quickly realize that job rotation does not
increase their interest in their work.
Although it seldom addresses the lack of employee motivation, it give
manages a means of coping with frequent absenteeism and high turnover.
Thus when absenteeism or turn over occurs in the work force, managers
can quickly fill the vacated position because each employee can perform
several jobs.
Job rotation is often effectively used as a training technique for new,
inexperienced employees. At higher organizational levels, rotation also
helps to develop managerial generalists because it exposes them to several
different operations.
Advantage of Job Rotation Technique:
1. The employee experiences variety of work, workplace and peer group.
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47 2. The main advantage of job rotation is that it relieves the employee
from the boredom and monotony of doing the same job.
3. With the help of this method, people become more flexible. They are
prepared to assume responsibility e specially at other positions.
4. Job rotation broadens the work experience of employees and turns
specialists into generalists. It is beneficial for the management also as
the management gets employees who can perform a variety of tasks to
meet the contingenc ies.
5. This method improves the self image and personal worth of the
employee.
Disadvantage of Job Rotation Technique:
1. Job rotation also creates disruptions. Members of the work group have
to adjust to the new employee.
2. Productivity is reduced by moving a wo rker into new position just
when his efficiency at the prior job was creating organizational
economies.
3. Training costs are increased.
4. The supervisor may also have to spend more time answering question
and monitoring the work of the recently rotated employe e.
5. It can de -motivate intelligent and ambitious trainees who seek specific
responsibilities in their chosen specialty.
Job Enlargement : Another means of increasing employee’s satisfaction
with routine jobs is job enlargement, or increasing the number of ta sks
performed (i.e. increasing the scope of the job). Job enlargement, like job
rotation, tries to eliminate short job cycles that create boredom. Unlike job
rotation, job enlargement actually increases the job cycle. When a job is
enlarged, either the tas ks being performed are enlarged or several short
tasks are given to one worker. Thus, the scope of the job is increased
because there are many tasks to be performed by the same worker. Job
enlargement programs change many methods of operation in contrast t o
job rotation, in which the same work procedures are used by workers who
rotate through work stations. Although job enlargement actually changes
the pace of the work and the operation by reallocating tasks and
responsibilities, it does not increase the de pth of a job.
The focus of designing work for job enlargement is the exact opposite of
that for job specialization. Instead of designing jobs to be divided up into
the fewest of tasks per employee, a job is designed to have many tasks for
the employee to p erform. An enlarged job requires a longer training period
because there are more tasks to be learned. Worker satisfaction should
increase because is reduced as the job scope is expanded. However, job
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48 such workers are less prone to resort to absenteeism, grievances,
slowdowns and other means of displaying job dissatisfaction.
Enlargement is done only on the horizontal level. Thus, the job remains
the same, but becomes of a larger scale than before. In the words of
Geroge Strauss and L.R. Sayles “Job enlargement implies that instead of
assigning one man to each job, a group of men can be assigned to a group
of jobs and then allowed to decide for themselves how to organize the
work. Such c hanges permit more social contacts and control over the work
process.”
Job enlargement has the following advantages:
1. Increase in diversity of jobs.
2. Job satisfaction
3. Provides wholeness and identity with the task and increases the
knowledge necessary to perf orm it.
4. Provides variety of skills.
5. Reduces tension and boredom.
6. Trains and develops more versatile employees.
Despite these advantages this is not a completely satisfactory method of
job design as it does not increase the depth of a job. Enlarged jobs re quire
longer training period as there are more tasks to be learned.
Job Enrichment: The concept of job enrichment has been derived from
Herzberg’s two -factor theory of motivation in which he has suggested that
job content is one of the basic factors of mot ivation. If the job is designed
in such a manner that it becomes more interesting and challenging to the
job performer and provides him opportunities for achievement,
recognition, responsibility, advancement and growth, the job itself
becomes a source of m otivation to the individual.
According to Richard W. Beatty and Graig Eric. Schneider , “Job
enrichment is a motivational technique which emphasizes the need for
challenging and interesting work. It suggests that jobs be redesigned so
that intrinsic satisfa ction is derived from doing the job. In its best
applications it leads to a vertically enhanced job by adding function from
other organizational levels, making it contain more variety and challenge
and offer autonomy and pride to the employee.”
According t o P. Robbins, ” Job enrichment refers to the vertical expansion
of the jobs. It increases the degree to which the worker controls the
planning, execution and evaluation of his work.”
In the words of Robert Albanese, “Job enrichment sometimes called.
“Vertic al job leading’ is a job redesign strategy that focuses on job depth.” munotes.in

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49 According to Mondy. Holmes, and Flippo, “Job enrichment refers to
basic changes in the content and level of responsibility of a job so to
provide for the satisfaction of the motivation needs of personnel.
Rebert Ford, who was associated with designing of jobs to make them
more enriched, has provided some bases (though not exhaustive) for job
enrichment as shown in Table 3.3.
Job Enrichment Bases
Tasks Motivator involved
Assign specific or specialized
task to individuals enabling them
to become expert Responsibility, growth,
advancement
Making periodic reports directly
available to the individual himself
rather than to the supervisor. Internal recognition
Giving a person a whole, natura l
unit of work (module, exchange
district, division, area, etc.) Responsibility, achievement,
recognition
Increasing the accountability of
individuals for own work Responsibility, recognition

Techniques of Job Enrichment:
In order to enrich the jobs the management should adopt the following
measures:
1. Freedom in decisions
2. Assign a natural work unit to an employee. Encouraging participation
3. Allow the employee to set his own standards of performance.
Minimize the controls to provide freedom to the employees Make an
employee directly responsible for his performance.
4. Encourage participation of employees in deciding organizational goals
and policies. Expand job vertically
5. Introducing new, difficult and creative tasks to the employees. Sense
of achievement.
Adva ntages of Job Enrichment:
The advantages of job enrichment are as follows:
1. It enriches the role.
2. Job enrichment is the most widely used of job design as it provides a
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50 3. It makes the work interesting and employee get motivate d.
4. It helps in reducing the rate of labour turnover and absenteeism.
5. It increases skills of the employees.
6. It increases morale and performance. Reduce Boredom and
dissatisfaction.
7. Increase in output both qualitative and quantitative.
Disadvantages of Job E nrichment:
Dunham and Newstrom state , “Even the strongest supporters of job
enrichment readily admit that there are limitations in its application.”
Newstrom and Keith Davis also write , “Employees are the final judges
of what enriches their jobs. All that management can do is to gather
information about what tends to enrich jobs, try these changes in the job
system, and then determine whether employees feel that enrichment has
occurred.”
A few limitations of or problems with job enrichment are as follows:
1. Increase cost
2. Need more employee counseling, training, and guidance.
3. Not applicable to all jobs.
4. Negative impact on personnel. Imposed on people.
5. Objected by unions Pay dissatisfaction
JOB ENLARGEMENT vs. JOB ENRICHMENT
Job enlargement and job enrichment ar e both important forms of job
design in order to enhance productivity and satisfaction of the employees.
They differ from each other in the following respects:
Nature of Job: The major difference between job enrichment and
enlargement lies in the nature o f additions to the job. Enlargement
involves a horizontal loading or expansion, or addition of tasks of the
same nature. Enrichment involves vertical loading of tasks and
responsibility of the job holder; it improves the quality of the job in terms
of its intrinsic worth.
Purpose: The purpose of job enlargement is to reduce the monotony in
performing repetitive jobs by lengthening the cycle of operation. On the
other hand, the purpose of job enrichment is making the job lively,
challenging and satisfying. I t satisfies the higher level needs such as ego
satisfaction, self expression, sense of achievement and advancement of
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51 Skill Requirement: Job enlargement may not necessarily require the use
of additional skills which the job holder was using in performing the job
before the enlargement. This is due to similarity of additional tasks.
Enrichment calls for development and utilization of higher skills,
initiative, and innovation on the part of the job holder in performing the
job.
Direction and Cont rol: Job enlargement requires direction and control
from external sources, say supervisor. In fact, the job holder may require
more direction and control because of enlargement of his responsibility.
Enrichment does not require external direction and contr ol as these come
from the job holder himself. He requires only feedback from his
supervisor.
3.10 SUMMARY
The purpose of an organization is to give each person a separate distinct
job and to ensure that these jobs are coordinated in such a way that the
organization accomplishes its goals.
Developing an organization structure results in jobs that have to be staffed.
Job analysis is the procedure through which you find out (1) what the job
entails, and (2) what kinds of people should be hired for the job. It
involves six steps: (1) determine the use of the job analysis information;
(2) collection of background information; (3) selection of jobs for
analysis; (4) collection of job analysis data; (5) processing the
information; (6) preparing job descriptions an d job classifications; and (7)
developing job specifications.
Techniques of job analysis are – observation method, questionnaires,
participant diary/logs, interview, critical incidents, technical conference
method, and job performance.
Job description and job specification are products of job analysis. Job
description should indicate: duties to be performed by the job holder and
the manner he should complete the tasks. Job specification: answer the
question “what human traits and experience are necessary to do the job.
Job design is an attempt to create a match between job requirements and
job attribute. Job rotation implies transfer to a job of same level and status.
Job simplification enables the employees to do the without much
specialized training.
Job e nlargement is the process of increasing the scope of job of a
particular by adding more tasks to it. And job enrichment implies
increasing the contents of a job or the deliberate upgrading of
responsibility scope and challenge in work.
Job enlargement and job enrichment are both important forms of job
design in order to enhance the productivity and satisfaction of the job
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52 3.11 SELF ASSESSMENT QUESTIONS
1. What do you understand by job analysis? What is its importance in the
management of human resourc es?
2. What is job analysis? What steps are involved in the preparation of job
analysis?
3. What are the byproducts of job analysis? Discuss the techniques used
for collecting data for job analysis?
4. What is job description? How is it prepared?
5. Define job specifi cation? How is it different from job description?
6. Write notes on:
i. Job Rotation
ii. Job Simplification
iii. Distinguish between:
iv. Job description and job specification
v. Job enlargement and job enrichment
vi. “Job analysis is the most basic personnel management function .”
Discuss.
vii. Clearly define and discuss the relationship among job analysis, job
description and job specification.

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4
RECRUITMENT AND SELECTION PART I
Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Recruitment: Meaning and Definition
4.3 Process of Recruitment
4.4 Recruitment Policy
4.5 Factor Affecting Recruitment
4.6 Sources of Recruitment
4.7 Methods of Recruitme nt
4.8 Philosophies of Recruitment
4.9 Summary
4.10 Self Assessment Questions
4.0 OBJECTIVES
After completing this unit, you will be able to:
 Define recruitment.
 Cite the steps in recruitment process.
 Understand the prerequisites of a good recruitment poli cy.
 Describe the various sources of recruitment.
 Understand the methods through which prospective candidates may be
recruited.
 Point out the various factors affecting recruitment.
4.1 INTRODUCTION
Successful human resource planning should identify our human r esource
needs. Once we know these needs, we will want to do something about
meeting them. The next step in the acquisition function, therefore, is
recruitment. This activity makes it possible for us to acquire the number munotes.in

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Management and types of people necessary to en sure the continued operation of the
organization.
Hallett says, “It is with people that quality performance really begins and
ends.” Robert Heller also says, “If people of poor caliber are hired,
nothing much else can be accomplished and Gresham’s law will work: the
bad people will drive out the good or cause them to deteriorate.”
Recruiting is the discovering of potential candidates for actual or
anticipated organizational vacancies. Or, from another perspective, it is a
linking activity bringing together those with jobs to fill and those seeking
jobs.
4.2 RECRUITMENT: MEANING AND DEFINITION
 DEFINITION
Recruitment forms a step in the process which continues with selection
and ceases with the placement of the candidate. It is the next step in the
procurement function, the first being the manpower planning. Recruiting
makes it possible to acquire the number and types of people necessary to
ensure the continued operation of the organisation. Recruiting is the
discovering of potential applicants for actual or an ticipated organisational
vacancies.
According to Edwin B. Flippo, “Recruitment is the process of searching
for prospective employees and stimulating them to apply for jobs in the
organisation.”
According to Lord, “Recruitment is a form of competition. Just a s
corporations compete to develop, manufacture, and market the best
product or service, so they must also compete to identify, attract and hire
the most qualified people. Recruitment is a business, and it is a big
business.”
In the words of Dale Yoder, “Recruiting is a process to discover the
sources of manpower to meet the requirements of the staffing schedule
and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient working force. ”
According to Werther and Davis, “Recruitment is the process of finding
and attracting capable applicants for employment. The process begins
when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants fo rm which new employees
are selected.”
Dales S. Beach writes, “Recruitment is the development and maintenance
of adequate manpower resources. It involves the creation of a pool of
available labour upon whom the organisation can depend when it needs
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Recruitment and Selection
Part I Thus, recruitment process is concerned with the identification of possible
sources of human resource supply and tapping those sources. In the total
process of acquiring and placing human resources in the organisation,
recruitment falls in be tween different sub processes.
 NEED FOR RECRUITMENT
According to Scott, Clothier and Spriegel the need for recruitment
arises out of the following situations:
 Vacancies created due to expansion, diversification, and growth of
business.
 An increase in the c ompetitive advantage of certain concerns,
enabling them to get more of the available business than formerly.
 An increase in business arising from an upswing during the recovery
period of a business cycle.
 Vacancies created due to transfer, promotion, retir ement,
termination, permanent disability or death.
 The normal population growth, which requires increased goods and
services to meet the needs of the people.
 A rising standard of living, which requires more of the same goods
and services as well as the cre ation of new wants to be satisfied.
4.3 PROCESS OF RECRUITMENT
Recruitment process passes through the following stages:
Recruitment process begins when the personnel department receives
requisitions for recruitment from any department of the company, The
personnel requisitions contain details about the position to be filled,
number of persons to be recruited, the duties to be performed,
qualifications expected from the candidates, terms and conditions of
employment and the time by which the persons should be available for
appointment etc.
Locating and developing the sources of required number and type of
employees. Identifying the prospective employees with required
characteristics.
Developing the techniques to attract the desired candidates. The goodwill
of an organisation in the market may be one technique. The publicity
about the company being a good employer may also help in stimulating
candidates to apply. There may be others of attractive salaries, proper
facilities for development etc. Evaluating the effectiveness of recruitment
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Human Resource
Management According to Famularo, personnel recruitment process involves five
elements, viz., a recruitment policy, a recruitment organisation, a forecast
of manpower, the development of sources of recruitment, and different
techniques used for utilising these sources, and a method of assessing the
recruitment programme.
The steps in the process of recruitment are explained below:
 Recruitment Policy: It specifies the objectives of recruitment and
provides a framework for the imp lementation of the recruitment
programme. It also involves the employer’s commitment to some
principles as to find and employ the best qualified persons for each
job, to retain the most promising of those hired, etc. It should be based
on the goals, needs and environment of the organisation.
 Recruitment Organisation: The recruitment may be centralised like
public sector banks or decentralised. Both practices have their own
merits. The choice between the two will depend on the managerial
philosophy and the p articular needs of the organisation.
 Sources of Recruitment : Various sources of recruitment may be
classified as internal and external. These have their own merits and
demerits.
 Methods of Recruitment: Recruitment techniques are the means to
make contact w ith potential candidates, to provide them necessary
information and to encourage them to apply for jobs.
 Evaluation of Recruitment Programme: The recruitment process
must be evaluated periodically. The criteria for evaluation may consist
of cost per applic ant, the hiring ratio, performance appraisal, tenure of
stay, etc. After evaluation, necessary improvements should be made in
the recruitment programme.
4.4 RECRUITMENT POLICY
 Areas covered by the Recruitment Policy
As Yoder et al observe recruitment polic y spells out the objectives of the
recruitment and provides a framework for implementations of the
recruitment programme in the form of procedures. It may involve a
commitment to broad principles such as filling vacancies with the best
qualified individual s. The recruitment policy may embrace several issues
such as the extent of promotion from within, attitudes of enterprise in
recruiting old, handicapped, and minor individuals, minority group
members, part time employees and relatives of present employees. In
addition, the recruitment policy may also involve the organisation system
to be developed for implementing the recruitment programme and
procedures to be employed. Explicitly, an organisational system is a
function of the size of an enterprise. In smal ler enterprises, there may be
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Recruitment and Selection
Part I responsible to handle this function along with their usual responsibilities.
On the other hand, in larger organisations, there is usually a staff unit
attached with personnel or an industrial relations department designated as
employment or recruitment office. This specialisation of recruitment
enables staff personnel to become highly skilled in recruitment techniques
and their evaluation. However, recruitment r emains the line responsibility
as far as the personnel requisition forms are originated by the line
personnel, who have also the final word in the acceptance or rejection of a
particular applicant. Despite this, the staff personnel have adequate
freedom in respect of sources of manpower to be tapped and the procedure
to be followed for this purpose.
Recruitment policy covers the following areas:
 To prescribe the degree of emphasis inside the organisation or outside
the organisation.
 To provide the weightage that would be given to certain categories of
people such as local population, physically handicapped personnel,
personnel from scheduled castes/tribes and other backward classes.
 To prescribe whether the recruitment would be centralised or
decentralised a t unit levels.
 To specify the degree of flexibility with regard to age, qualifications,
compensation structure and other service conditions.
 To prescribe the personnel who would be involved in recruitment
process and the role of human resource department i n this regard.
 To specify the budget for meeting the expenditures incurred in
completing the recruitment process.
According to Yoder, “the recruitment policy is concerned with quantity
and qualifications of manpower.”It establishes broad guidelines for the
staffing process.
According to Yoder generally the following factors are involved in a
recruitment policy:
 To provide each employee with an open road and encouragement in
the continuing development of his talents and skills;
 To provide individual employee s with the maximum of employment
security, avoiding, frequent lay -off or lost time;
 To avoid cliques which may develop when several members of the
same household or community are employed in the organisation;
 To carefully observe the letter and spirit of t he relevant public policy
on hiring and, on the whole, employment relationship; munotes.in

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Human Resource
Management  To assure each employee of the organisation interest in his personal
goals and employment objective; To assure employees of fairness in
all employment relationships, including promotions and transfers;
 To provide employment in jobs which are engineered to meet the
qualifications of handicapped workers and minority sections; and
 To encourage one or more strong, effective, responsible trade unions
among the employees.
 Prerequisite s of a Good Recruitment Policy:
The recruitment policy of an organisation must satisfy the following
conditions:
 It should be in conformity with its general personnel policies.
 It should be flexible enough to meet the changing needs of an
organization.
 It should be so designed as to ensure employment opportunities for its
employees on a long -term basis so that the goals of the organisation
should be achievable; and it should develop the potentialities of
employees.
 It should match the qualities of employees with the requirements of
the work for which they are employed.
 It should highlight the necessity of establishing job analysis.
4.5 FACTOR AFFECTING RECRUITMENT
The factors affecting recruitment can be classified as:
 Internal Factors
 External Factors.
 Internal Factors:
The internal factors are:
 Wage and salary policies;
 The age composition of existing working force;
 Promotion and retirement policies;
 Turnover rates;
 The nature of operations involved the kind of personnel required;
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Recruitment and Selection
Part I  Future expansion and reduction programmes;
 Recruiting policy of the organisation;
 Human resource planning strategy of the company;
 Size of the organisation and the number of employees employed;
 Cost involved in recruiting employe es;
 Growth and expansion plans of the organisation.
 External Factors:
The external factors are:
 Supply and demand of specific skills in the labour market;
 Company’s image perception of the job seekers about the company.
 External cultural factors: Obviously , the culture may exert
considerable check on recruitment. For example, women may not be
recruited in certain jobs in industry.
 Economic factors: such as a tight or loose labour market, the
reputation of the enterprise in the community as a good pay master or
otherwise and such allied issues which determine the quality and
quantity of manpower submitting itself for recruitment.
 Political and legal factors also exert restraints in respect of nature and
hours of work for women and children, and allied employm ent
practices in the enterprise, reservation of Job for SC, ST and so on.
4.6 SOURCES OF RECRUITMENT
After the finalisation of recruitment plan indicating the number and type
of prospective candidates, they must be attracted to offer themselves for
considerat ion to their employment. This necessitates the identification of
sources from which these candidates can be attracted. Some companies try
to develop new sources, while most only try to tackle the existing sources
they have. These sources, accordingly, may be termed as internal and
external.
 Internal Sources
It would be desirable to utilise the internal sources before going outside to
attract the candidates. Yoder and others suggest two categories of internal
sources:
1. Review of the present employees
2. No mination of candidates by employees. munotes.in

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Human Resource
Management Effective utilisation of internal sources necessitates an understanding of
their skills and information regarding relationships of jobs. This will
provide possibilities for horizontal and vertical transfers within the
enterprise eliminating simultaneous attempts to lay off employees in one
department and recruitment of employees with similar qualification for
another department in the company. Promotion and transfers within the
plant where an employee is best suitable im proves the morale along with
solving recruitment problems. These measures can be taken effectively if
the company has established job families through job analysis
programmes combining together similar jobs demanding similar employee
characteristics. Again , employees can be requested to suggest promising
candidates. Sometimes, employees are given prizes for recommending a
candidate who has been recruited. Despite the usefulness of this system in
the form of loyalty and its wide practice, it has been pointed out that it
gives rise to cliques posing difficulty to management. Therefore, before
utilising this system attempts should be made to determine through
research whether or not employees thus recruited are effective on
particular jobs. Usually, internal so urces can be used effectively if the
numbers of vacancies are not very large, adequate, employee records are
maintained, jobs do not demand originality lacking in the internal sources,
and employees have prepared themselves for promotions.
Merits of Intern al Sources:
The following are the merits of internal sources of recruitment:
 It creates a sense of security among employees when they are assured
that they would be preferred in filling up vacancies.
 It improves the morale of employees, for they are assure d of the fact
that they would be preferred over outsiders when vacancies occur.
 It promotes loyalty and commitment among employees due to sense of
job security and opportunities for advancement.
 The employer is in a better position to evaluate those presen tly
employed than outside candidates. This is because the company
maintains a record of the progress, experience and service of its
employees.
 Time and costs of training will be low because employees remain
familiar with the organisation and its policies.
 Relations with trade unions remain good. Labour turnover is reduced.
 As the persons in the employment of the company are fully aware of,
and well acquainted with its policies and know its operating
procedures, they require little training, and the chances are that they
would stay longer in the employment of the organisation than a new
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Recruitment and Selection
Part I  It encourages self -development among the employees. It encourages
good individuals who are ambitious.
 It encourages stability from continuity of employment.
 It can also act as a training device for developing middle and top -level
managers.

Demerits of Internal Sources:
However, this system suffers from certain defects as:
 There are possibilities that internal sources may “dry up”, and it may
be difficult to fin d the requisite personnel from within an organisation.
 It often leads to inbreeding, and discourages new blood from entering
and organisation.
 As promotion is based on seniority, the danger is that really capable
hands may not be chosen. The likes and disl ikes of the management
may also play an important role in the selection of personnel.
 Since the learner does not know more than the lecturer, no innovations
worth the name can be made. Therefore, on jobs which require
original thinking (such as advertising , style, designing and basic
research), this practice is not followed.
 This source is used by many organisations; but a surprisingly large
number ignore this source, especially for middle management jobs.
 External Sources
DeCenzo and Robbins remark, “Occas ionally, it may be necessary to
bring in some ‘new blood’ to broaden the present ideas, knowledge, and
enthusiasm.” Thus, all organisations have to depend on external sources of
recruitment. Among these sources are included:
 Employment agencies.
 Educationa l and technical institutes. and
 Casual labour or “applicants at the gate” and nail applicants.
 Employment Agencies:
Public and private employment agencies play a vital role in making
available suitable employees for different positions in the organisations .
Besides public agencies, private agencies have developed markedly in
large cities in the form of consultancy services. Usually, these agencies
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Management their specialisation, they effective ly assess the needs of their clients and
aptitudes and skills of the specialised personnel. They do not merely bring
an employer and an employee together but computerised lists of available
talents, utilising testing to classify and assess applicants and u se advanced
techniques of vocational guidance for effective placement purposes.
 Educational and technical institutes:
These institutes also form an effective source of manpower supply. There
is an increasing emphasis on recruiting student from different
management institutes and universities commerce and management
departments by recruiters for positions in sales, accounting, finance,
personnel and production. These students are recruited as management
trainees and then placed in special company training pr ogrammes. They
are not recruited for particular positions but for development as future
supervisors and executives. Indeed, this source provides a constant flow of
new personnel with leadership potentialities. Frequently, this source is
tapped through on -campus interview with promising students. In addition,
vocational schools and industrial training institutes provide specialised
employees, apprentices, and trainees for semiskilled and skilled jobs.
Persons trained in these schools and institutes can be pl aced on operative
and similar jobs with a minimum of in -plant training. However,
recruitment of these candidates must be based on realistic and differential
standards established through research reducing turnover and enhancing
productivity.
 Casual labour or “applicants at the gate” and nail applicants
Frequently, numerous enterprises depend to some extent upon casual
labour or “applicants at the gate” and nail applicants. The candidates may
appear personally at the company’s employment office or send their
applications for possible vacancies. Explicitly, as Yoder and others
observe, the quality and quantity of such candidates depend on the image
of the company in community. Prompt response to these applicants proves
very useful for the company. However, it may be noted that this source is
uncertain, and the applicants reveal a wide range of abilities necessitating
a careful screening. Despite these limitations, it forms a highly
inexpensive source as the candidates themselves come to the gate of the
company. Again, it provides measures for good public relations and
accordingly, all the candidates visiting the company must be received
cordially.




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Recruitment and Selection
Part I  Recruiting Sources Used by Skill and Level
Skill/Level Recruiting Source Percentage of Use
Unskilled and
Semiskille d Informal contacts 85
Walk -ins 74
Public Employment
Agencies
66
Want Ads 52
Skilled Informal Contacts 88
Walk -ins 66
Public Employment
Agencies
55
Want Ads 55
Professional
Employees Internal Search 94
Informal Contacts 92
Walk -ins 71
Public Employment
Agencies
52
Want Ads 48
Private Employment
Agencies
22

Managerial Level Internal Search 100
Informal Contacts 71
Walk -ins 31
Private Employment
Agencies
20
Want Ads 17
Public Employment
Agencies
12

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Human Resource
Management Source: Adapted from Stephen L. Mangum, “Recruitment and job
Search: The Recruitment Tactics of Employers. “Personnel
Administrator, June 1982, p. 102.
 Trade Unions :
As Jucius observes, trade unions are playing an increasingly important
role in labour supply. In s everal trades, they supply skilled labour in
sufficient numbers. They also determine the order in which employees are
to be recruited in the organisation. In industries where they do not take
active part in recruitment, they make it a point that employees laid off are
given preference in recruitment.
 Application Files:
Application files also forms a useful source of supply of work force.
Attempts may be made to review the application to determine jobs for
which the candidates filed for future use when there are openings in these
jobs. The candidates may be requested to renew their cards as many times
as they desire. All the renewed cards may be placed in “active” files and
those not renewed for considerable time may be placed in “inactive” file
or destroyed. Indeed, a well -indexed application file provides utmost
economy from the standpoint of a recruiting budget.
Efficacy of alternative sources of supply of human resources should be
determined through research. Attempts may be made to relate the factor of
success on the job with a specific source of supply. Alternative sources
can also be evaluated in terms of turnover, grievances and disciplinary
action. Those sources which are significantly positively related with job
performance and significantly negativel y related with turnover, grievances
and disciplinary action, can be effectively used in recruitment
programmes. The assessment should be periodically performed in terms of
occupations. It may be that source “A” is most effective for technical
workers, whil e source “B” for semiskilled workers.
Advantages of External Recruitment:
External sources of recruitment are suitable for the following reasons:
 It will help in bringing new ideas, better techniques and improved
methods to the organisation.
 The cost of em ployees will be minimised because candidates selected
in this method will be placed in the minimum pay scale.
 The existing employees will also broaden their personality.
 The entry of qualitative persons from outside will be in the interest of
the organisat ion in the long run.
 The suitable candidates with skill, talent, knowledge are available
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Recruitment and Selection
Part I  The entry of new persons with varied expansion and talent will help in
human resource mix.
Disadvantages of External Sources:
 Orientation and tr aining are required as the employees remain
unfamiliar with the organisation. It is more expensive and time
consuming.
 Detailed screening is necessary as very little is known about the
candidate.
 If new entrant fails to adjust himself to the working in the enterprise, it
means yet more expenditure on looking for his replacement.
 Motivation, morale and loyalty of existing staff are affected, if higher
level jobs are filled from external sources. It becomes a source of
heart -burning and demoralisation among e xisting employees.
4.7 METHODS OF RECRUITMENT
Methods of recruitment are different from the sources of recruitment.
Sources are the locations where prospective employees are available. On
the other hand, methods are way of establishing links with the pro spective
employees. Various methods employed for recruiting employees may be
classified into the following categories:
 Direct Methods:
These include sending recruiters to educational and professional
institutions, employees, contacts with public, and manne d exhibits. One of
the widely used direct methods is that of sending of recruiters to colleges
and technical schools. Most college recruiting is done in co -operation with
the placement office of a college. The placement office usually provides
help in attr acting students, arranging interviews, furnishing space, and
providing student resumes.
For managerial, professional and sales personnel campus recruiting is an
extensive operation. Persons reading for MBA or other technical diplomas
are picked up in this manner. For this purpose, carefully prepared
brochures, describing the organisation and the jobs it offers, are
distributed among students, before the interviewer arrives. Sometimes,
firms directly solicit information from the concerned professors about
students with an outstanding record. Many companies have found
employees contact with the public a very effective method. Other direct
methods include sending recruiters to conventions and seminars, setting
up exhibits at fairs, and using mobile offices to g o to the desired centers.
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Management  Indirect Methods:
The most frequently used indirect method of recruitment is advertisement
in newspapers, journals, and on the radio and television. Advertisement
enables candidates to assess their suitability. It is appropriate w hen the
organisation wants to reach out to a large target group scattered
nationwide. When a firm wants to conceal its identity, it can give blind
advertisement in which only box number is given. Considerable details
about jobs and qualifications can be gi ven in the advertisements. Another
method of advertising is a notice -board placed at the gate of the company.
 Third -Party Methods:
The most frequently used third -party methods are public and private
employment agencies. Public employment exchanges have bee n largely
concerned with factory workers and clerical jobs. They also provide help
in recruiting professional employees. Private agencies provide consultancy
services and charge a fee. They are usually specialised for different
categories of operatives, of fice workers, salesmen, 55 supervisory and
management personnel. Other third -party methods include the use of trade
unions. Labour - management committees have usually demonstrated the
effectiveness of trade unions as methods of recruitment.
Several criteri a discussed in the preceding section for evaluating sources
of applicants can also be used for assessing recruiting methods. Attempts
should be made to identify how the candidate was attracted to the
company. To accomplish this, the application may consist of an item as to
how the applicant came to learn about the vacancy. Then, attempts should
be made to determine the method which consistently attracts good
candidates. Thus, the most effective method should be utilised to improve
the recruitment programme.
4.8 PHILOSOPHIES OF RECRUITMENT
 Philosophies of recruitment
There are basically two philosophies of recruitment:
 Traditional Philosophy:
The traditional philosophy is to get as many people as possible to apply
for the job. As a result of this, a large nu mber of job seekers apply for the
job, which makes the final selection process difficult and can often result
in the selection of wrong candidates. Wrong selection can, in turn, lead to
employee dissatisfaction and turnover in the long run.
 Realistic Ph ilosophy:
In realistic philosophy, the needs of the organisation are matched with the
needs of the applicants, which enhance the effectiveness of the
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Recruitment and Selection
Part I recruited will stay in the organisation for a longer period of time and will
perform at higher level of effectiveness.
 Difference between Traditional and Realistic Job Preview
Traditional Job Preview Realistic Job Preview
Setting unrealistic and high job
expectations. Setting realistic job expe ctations.
Job is viewed by the candidates as
highly attractive Attractiveness of job is evaluated
in the light of realistic job
expectations
High rate of acceptance of job
offers. Some accept and some reject job
offers.
High expectation belied by actual
job experience Expectations are confirmed by job
experience.
Creations of dissatisfaction,
frustration and thoughts for leaving
the job
Creation of satisfaction in the light
of job expectations.
High rate of personnel turnover
and lower rate of job sur vival High rate of personnel retention
and
high rate of job survival


4.9 SUMMARY
Recruitment forms a step in the process which continues with selection
and ceases with the placement of the candidate. It is the next step in the
procurement function, the firs t being the manpower planning. Recruiting
makes it possible to acquire the number and types of people necessary to
ensure the continued operation of the organisation. Thus, recruitment
process is concerned with the identification of possible sources of hum an
resource supply and tapping those sources.
Recruitment process involves five elements, viz., a recruitment policy, a
recruitment organisation, the development of sources of recruitment, and
different techniques used for utilising these sources, and a me thod of
assessing the recruitment programme. After the finalisation of recruitment
plan indicating the numbers and type of prospective candidates, they must
be attracted to offer themselves for consideration to their employment.
This necessitates the ident ification of sources from which these candidates
can be attracted. Some companies try to develop new sources, while most
only try to tackle the existing sources they have. These sources,
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Management Methods of recru itment are different from the sources of recruitment.
Sources are the locations where prospective employees are available. On
the other hand, methods are way of establishing links with the prospective
employees. Various methods employed for recruiting empl oyees may be
classified into direct methods, indirect methods and third party methods.
4.10 SELF ASSESSMENT QUESTIONS
1. Define recruitment and identify the various factors which affect
recruitment.
2. Discuss the steps of recruitment process. How will you reconcile the
internal and external sources of recruitment?
3. Discuss various sources of recruitment.
4. What is realistic job preview? How does it differ from traditional job
preview?
5. What do you mean by recruitment policy? Explain the prerequisites of
a good recruitme nt policy.
6. Write short notes on following -
(i) Advantages and disadvantages of internal sources of recruitment.
(ii) Advantages and disadvantages of external source of recruitment.
(iii) Explain the direct, indirect and third party methods of
recruitment.

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5
RECRUITMENT AND SELECTION
PART II
Unit Structure
5.0 Objectives
5.1 Introduction
5.2 Definition of Selection
5.3 Selection Procedure
5.4 Placement of Orientation
5.5 Induction
5.6 Summary
5.7 Self Assessment Questions
5.0 OBJECTIVES
After completing this unit, you will be able to:
 Understand and define selection and its process.
 Understand the selection process so as to make it effective.
 Understand in brief about placement and orientation.
 Explain the term ‘Induction’ and the objectives of induction.
5.1 INTRODUCTION
Human resource selection is the process of choosing qualified individuals
who are available to fill positions in an organization. In the ideal
personnel situation, selection involves choosing the best applicant to fill a
position . Selection is the process of choosing people by obtaining and
assessing information about the applicants with a view to matching these
with the job requirements. It involves a careful screening and testing of
candidates who have put in their applications for any job in the enterprise.
It is the process of choosing the most suitable persons out of all the
applicants. The purpose of selection is to pick up the right person for
every job.

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Management
5.2 DEFINITION OF SELECTION
MEANING AND DEFINITION
It can be conceptual ised in terms of either choosing the fit candidates, or
rejecting the unfit candidates, or a combination of both. Selection involves
both because it picks up the fits and rejects the unfits. In fact, in Indian
context, there are more candidates who are rej ected than those who are
selected in most of the selection processes. Therefore, sometimes, it is
called a negative process in contrast to positive programme of recruitment.
According to Dale Yoder, “Selection is the process in which candidates
for employm ent are divided into two classes -those who are to be offered
employment and those who are not”.
According to Thomas Stone , “Selection is the process of differentiating
between applicants in order to identify (and hire) those with a greater
likelihood of su ccess in a job”.
In the words of Michael Jucius , “The selection procedure is the system
of functions and devices adopted in a given company for the purpose of
ascertaining whether or not candidates possess the qualifications called for
by a specific job or for progression through a series of jobs.”
According to Keith Davis, “Selection is the process by which an
organisation chooses from a list of screened applicants, the person or
persons who best meet the selection criteria for the position available.”
Thus, the selection process is a tool in the hands of management to
differentiate between the qualified and unqualified applicants by applying
various techniques such as interviews, tests etc. The cost incurred in
recruiting and selecting any new employee is expensive. The cost of
selecting people who are inadequate performers or who leave the
organisation before contributing to profits proves a major cost of doing
business. Decenzo and Robbins write, “Proper selection of personnel is
obviously an area where e ffectiveness choosing competent workers who
perform well in their position can result in large saving.” According to
them, selection has two objectives: (1) to predict which job applicants
would be successful if hired and (2) to inform and sell the candida te on the
job and the organization. Satisfaction of employee needs and wants as
well as the fullest development of his potential are important objectives of
selection.
Dale Yoder says, “Selection has long held a high rank in the priority of
problem areas i n management. Investments in good people produce a very
high rate of return. A good choice of people can provide a basis for long,
sustained contributions.”
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Part II
DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:
Difference between recruitment and selection has be en described by
Flippo as , “Recruitment is a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organisation. It is often termed positive as is stimulates people to apply for
jobs, selection on the o ther hand tends to be negative because it rejects a
good number of those who apply, leaving only the best to be hired.”
Recruitment and selection differs in following manner:
Difference in Objective: The basic objective of recruitment is to attract
maximum number of candidates so that more options are available. The
basic objective of selection is to choose best out of the available
candidates.
Difference is Process: Recruitment adopts the process of creating
application pool as large as possible and theref ore. It is known as positive
process. Selection adopts the process through which more and more
candidates are rejected and fewer candidates are selected or sometimes
even not a single candidate is selected. Therefore, it is known as negative
process or rej ection process.
Technical Differences: Recruitment techniques are not very intensive,
and not require high skills. As against this, in selection process, highly
specialised techniques are required. Therefore, in the selection process,
only personnel with s pecific skills like expertise in using selection tests,
conducting interviews, etc., are involved.
Difference in Outcomes: The outcome of recruitment is application pool
which becomes input for selection process. The outcome of selection
process is in the form of finalising candidates who will be offered jobs.
5.3 SELECTION PROCEDURE
The selection procedure is concerned with securing relevant information
about an applicant. This information is secured in a number of steps or
stages. The objective of select ion process is to determine whether an
applicant meets the qualification for a specific job and to choose the
applicant who is most likely to perform well in that job. Selection is a long
process, commencing from the preliminary interview of the applicants and
ending with the contract of employment (sometimes).
The selection procedure consists of a series of steps. Each step must be
successfully cleared before the applicant proceeds to the next. The
selection process is a series of successive hurdles or bar riers which an
applicant must cross. These hurdles are designed to eliminate an
unqualified candidate at any point in the selection process. Thus, this
technique is called “Successive Hurdles Technique”. In practice, the
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Management the same organisation. Selection procedure for the senior managers will be
long drawn and rigorous, but it is simple and short while hiring lower
level employees.
The major factors which determine the steps involved in a selection
process are as follows:
1. Selection process depends on the number of candidates that are
available for selection.
2. Selection process depends on the sources of recruitment and the
method that is adopted for making contact with the prospective
candidates.
3. Various steps involved in as selection process depend on the type of
personnel to be selected.
All the above factors are not mutually exclusive, rather these operate
simultaneously. In any case, the basic objective of a selection process is to
collect as much relevant information about the candidates as is possible so
that the most suitable candidates are selected. A comprehensive selection
process involves the various steps.
The steps are explained below:
Application Pool:
Application pool built -up through recruitment process is the base for
selection process. The basic objective at the recruitment level is to attract
as much worthwhile applications as possible so that there are more options
available at the selection stage.
Preliminary Screening and Interview
It is highly no economic to administer and handle all the applicants. It is
advantageous to sort out unsuitable applicants before using the further
selection steps. For this purpose, usually, preliminary interviews,
application blank lists an d short test can be used. All applications received
are scrutinised by the personnel department in order to eliminate those
applicants who do not fulfill required qualifications or work experience or
technical skill, his application will not be entertained . Such candidate will
be informed of his rejection.
Preliminary interview is a sorting process in which the prospective
candidates are given the necessary information about the nature of the job
and the organisation. Necessary information is obtained from the
candidates about their education, skills, experience, expected salary etc. If
the candidate is found suitable, he is elected for further screening. This
courtesy interview; as it is often called helps the department screen out
obvious misfits. Prelimin ary interview saves time and efforts of both the
company and the candidate. It avoids unnecessary waiting for the rejected
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Part II candidate. Since rejection rate is high at preliminary interview , the
interviewer should be kind, courteous, receptive and informal.
Application Blank or Application Form:
An application blank is a traditional widely accepted device for getting
information from a prospective applicant which will enable the
management to make a proper selection. The blank provides preliminary
information as well as aid in the interview by indicating areas of interest
and discussion. It is a good means of quickly collecting verifiable (and
therefore fairly accurate) basic historical data from the candidate. It also
serves as a convenient device for circulating information about the
applicant to appropriate members of management and as a useful device
for storing information for, later reference. Many types of application
forms, sometimes very long and comprehensive and sometimes brief, are
used.
Information is generally taken on the following items:
Biographical Data: Name, father’s name, data and place of birth, age,
sex, nationality, height, weight, identification marks, physical disabil ity, if
any, marital status, and number of dependants.
Educational Attainment: Education (subjects offered and grades
secured), training acquired in special fields and knowledge gained from
professional/technical institutes or through correspondence course s.
Work Experience: Previous experience, the number of jobs held with the
same or other employers, including the nature of duties, and
responsibilities and the duration of various assignments, salary received,
grades, and reasons for leaving the present em ployer.
Salary and Benefits: Present and expected.
Other Items: Names and addresses of previous employers, references,
etc. An application blank is a brief history sheet of an employee’s
background and can be used for future reference, in case needed.
The application blank must be designed from the viewpoint of the
applicant as well as with the company’s purpose in mind. It should be
relatively easy to handle in the employment office.
Application form helps to serve many functions like:
 Its main usefulness is to provide information for reference checking,
good interviewing, and correlation with testing data.
 It helps to weed out candidates who are lacking in education,
experience or some other eligibility traits.
 It helps in formulating questions to be asked in the interview.
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Management  It also tests the candidate’s ability to write, to organize his thoughts,
and to present facts clearly and succinctly.
 It indicates further whether the applicant has consistently progressed
to better jobs. It provides factual information.
Weighted Application Blanks
Some organisations assign numeric values or weights to the responses
provided by the applicants. This makes the application form more job
related. Generall y, the items that have a strong relationship to job
performance are given higher scores. For example, for a sales
representative’s position, items such as previous selling experience, area
of specialisation, commission earned, religion, language etc. The t otal
score of each applicant is then obtained by adding the weights of the
individual item responses. The resulting scores are then used in the final
selection. WAB is best suited for jobs where there are many employees
especially for sales and technical j obs. It can help in reducing the
employee turnover later on.
However, there are several problems associated with WAB:
 It takes time to develop such a form.
 The WAB would have to be updated every few years to ensure that the
factors previously identified ar e still valid products of job success.
 The organisation should be careful not to depend on weights of a few
items while finally selecting the employee.
Selection Tests:
Many organisations hold different kinds of selection tests to know more
about the candi dates or to reject the candidates who cannot be called for
interview etc. Selection tests normally supplement the information
provided in the application forms. Such forms may contain factual
information about candidates. Selection tests may give informati on about
their aptitude, interest, personality, which cannot be known by application
forms. Types of tests and rules of good of testing have been discussed in
brief below:
TYPES OF TEST:
Aptitude Tests: These measure whether an individual has the capacity or
talent ability to learn a given job if given adequate training. These are
more useful for clerical and trade positions.
Personality Tests: At times, personality affects job performance. These
determine personality traits of the candidate such as coopera tiveness,
emotional balance etc. These seek to assess an individual’s motivation,
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Part II Interest Tests: These determine the applicant’s interests. The applicant is
asked whether he likes, dislikes, or is indifferent to many examples of
school subjects, occupations, amusements, peculiarities of people, and
particular activities.
Performance Tests: In this test the applicant is asked to demonstrate his
ability to do th e job. For example, prospective typists are asked to type
several pages with speed and accuracy.
Intelligence Tests: This aim at testing the mental capacity of a person
with respect to reasoning, word fluency, numbers, memory,
comprehension, picture arrang ement, etc. It measures the ability to grasp,
understand and to make judgement.
Knowledge Tests: These are devised to measure the depth of the
knowledge and proficiency in certain skills already achieved by the
applicants such as engineering, accounting et c.
Achievement Tests: Whereas aptitude is a capacity to learn in the future,
achievement is concerned with what one has accomplished. When
applicants claim to know something, an achievement test is given to
measure how well they know it.
Projective Tests: In these tests the applicant projects his personality into
free responses about pictures shown to him which are ambiguous.
RULES OF GOOD TESTING
1. Norms should be developed for each test. Their validity and reliability
for a given purpose should be establish ed before they are used.
2. Adequate time and resources must be provided to design, validate, and
check tests.
3. Tests should be designed and administered only by trained and
competent persons.
4. The user of tests must be extremely sensitive to the feelings of pe ople
about tests.
5. Tests are to be used as a screening device.
6. Reliance should not be placed solely upon tests in reaching decisions.
7. Tests should minimize the probabilities of getting distorted results.
8. They must be ‘race -free’.
9. Tests scores are not precis e measures.
10. They must be assigned a proper weightage.

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Management Interview:
An interview is a procedure designed to get information from a person and
to assess his potential for the job he is being considered on the basis of
oral responses by the applicant to oral in quiries by the interviewer.
Interviewer does a formal in -depth conversation with the applicant, to
evaluate his suitability. It is one of the most important tools in the
selection process. This tool is used while interviewing skilled, technical,
profession al and even managerial employees. It involves two -way
exchange of information. The interviewer learns about the applicant and
the candidate learns about the employer.
OBJECTIVES OF INTERVIEWS:
Interview helps:
 To obtain additional information from the cand idate.
 Facilitates giving to the candidate information about the job, company,
its policies, products etc. To assess the basic suitability of the
candidate.
 The selection interview can be:
 One to one between the candidate and the interviewer:
 Two or more i nterviewers by employers representatives - sequential;
 By a panel of selections, i.e. by more than representative of the
employer.
 The sequential interview involves a series of interviews; each
interviewer meeting the candidate separately. The panel intervi ew
consists of two or more interviews meeting the candidate together.
TYPES OF INTERVIEWS:
Interviews can be classified in various ways according to:
 Degree of Structure
 Purpose of Interview
 Content of Interview
Degree of Structure:
Unstructured or non dir ective: in which you ask questions as they come
to mind. There is no set format to follow.
Structured or directive: in which the questions and acceptable responses
are specified in advance. The responses are rated for appropriateness of
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Part II Structured and non -structured interviews have their pros and cons. In
structured interviews all applicants are generally asked all required
questions by all interviewers. Structured interviews are generally more
valid. However structured interviews do not allow the flexibility to pursue
points of interests as they develop.
Purpose of Interview:
Selection interview : This is a type of interview designed to predict future
job performance, on the basis of applicant’s responses to the oral
questions asked to him.
Stress i nterview: It is a special type of selection interview in which the
applicant is made uncomfortable by series of awkward and rude questions.
The aim of stress interview is supposedly to identify applicant’s low or
high stress tolerance. In such an interview the applicant is made
uncomfortable by throwing him on the defensive by series of frank and
often discourteous questions by the interviewer.
Content of Interview:
Job Related Interviews : The content of interview can be of a type in
which individual’s abil ity to project a situation is tested. This is a situation
type interview. In job related interview, interviewer attempts to assess
the applicant’s past behaviours for job related information, but most
questions are not considered situational.
Behaviour int erview: In this type of interview a situation in described
and candidates are asked how they behaved in the past in such a situation.
While in situational interviews candidates are asked to describe how they
would react to situation today or tomorrow. In t he behavioural interview
they are asked to describe how they did react to the situation in the past.
PRINCIPLES OF INTERVIEWING
To make the interview effective, it should be properly planned and
conducted on certain principles. Edwin Flippo has described c ertain rules
and principles of good interviewing to this end:
 Provide proper surroundings. The physical setting for the interview
should be both private and comfortable.
 The mental setting should be one of rapport. The interviewer must be
aware of non -verbal behaviour. Plan for the interview by thoroughly
reviewing job specifications and job descriptions.
 Determine the specific objectives and the method of the interviewing.
 Inform yourself as much as possible concerning the known
information about the inter viewee. The interviewer should possess and
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Management  Questions should be asked in a manner that encourages the
interviewee to talk. Put the applicant at ease.
 Make a decision only when all the data and information a re available.
Avoid decisions that are based on first impressions.
 Conclude the interview tactfully, making sure that the candidate leaves
feeling neither too elated nor frustrated.
 Maintain some written record of the interview during or immediately
after it. Listen attentively and, if possible, protectively.
 Questions must be stated clearly to avoid confusion and ambiguity.
Maintain a balance between open and overtly structured questions.
 ‘Body language’ must not be ignored.
 The interviewer should make som e overt sign to indicate the end of the
interview.
 Interviewing is largely an art, the application of which can be
improved through practice.
Background Investigation:
The next step in the selection process is to undertake an investigation of
those applica nts who appear to offer potential as employees. This may
include contacting former employers to confirm the candidate’s work
record and to obtain their appraisal of his or her performance contacting
other job related and personal references, and verifying the educational
accomplishments shown on the application.
The background investigation has major implications. Every personnel
administrator has the responsibility to investigate each potential applicant.
In some organization, failure to do so could result in the loss of his or her
job. But many managers consider the background investigation data
highly biased. Who would actually list a reference that would not give
anything but the best possible recommendation? The seasoned personnel
administrator expects this and delves deeper into the candidate’s
background, but that, too, may not prove to be beneficial. Many past
employers are reluctant to give any information to another company other
than factual information (e.g., date of employment).
Even though there is some reluctance to give this information, there are
ways in which personnel administrators can obtain it. Sometimes, for
instance information can be obtained from references once removed. For
example, the personnel administrator can ask a reference who se name has
been provided on the application form to give another reference, someone
who has knowledge of the candidate’s work experience. By doing this, the
administrator can eliminate the possibility of accepting an individual
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Part II when the motivation for such a positive recommendation was to get rid of
the employee.
Physical Examination:
After the selection decision and before the job offer is made, the candidate
is required to undergo physical fitness test. Candidates are sent for
physical examination either to the company’s physician or to a medical
officer approved for the purpose. Such physical examination provides the
following information.
Whether the candidate’s physical measurements are in accordance with
job requirements or not? Whether the candidate suffers from bad health
which should be corrected?
Whether the candidate has health problems or psychological attitudes
likely to interfere with work efficiency or future attendance?
Whether the candidate is physically fit for the specific job or not?
Policy on these physical exams has changed today. Dale Yoder writes,
“Modem policy used the physical examination not to eliminate applicants,
but to discover what jobs they are qualified to fill . The examination should
disclose the physical characteristics of the individual that are significant
from the standpoint of his efficient performance of the job he may enter or
of those jobs to which he may reasonably expect to be transferred or
promoted. It should note deficiencies, not as a basis for rejection, but as
indicating restrictions on his transfer to various positions also.”
Approval by Appropriate Authority:
On the basis of the above steps, suitable candidates are recommended for
selection by the selection committee or personnel department. Though
such a committee or personnel department may have authority to select
the candidates finally, often it has staff authority to recommend the
candidates for selection to the appropriate authority. Organ isations may
designate the 65 various authorities for approval of final selection of
candidates for different categories of candidates. Thus, for top level
managers, board of directors may be approving authority; for lower levels,
even functional heads con cerned may be approving authority.
Final Employment Decision:
After a candidate is finally selected, the human resource department
recommends his name for employment. The management or board of the
company offers employment in the form of an appointment le tter
mentioning the post, the rank, the salary grade, the date by which the
candidate should join and other terms and conditions of employment.
Some firms make a contract of service on judicial paper. Usually an
appointment is made on probation in the begi nning. The probation period
may range from three months to two years. When the work and conduct of
the employee is found satisfactory, he may be confirmed. The personnel
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Management person does n ot join after being selected, the company calls next person
on the waiting list.
Evaluation:
The selection process, if properly performed, will ensure availability of
competent and committed personnel. A period audit, conducted by people
who work independe ntly of the human resource department, will evaluate
the effectiveness of the selection process. The auditors will do a thorough
and the intensive analysis and evaluate the employment programme.
5.4 PLACEMENT AND ORIENTATION
MEANING OF PLACEMENT:
After an employee has been recruited he is provided with basic
background information about the employer, working conditions and the
information necessary to perform his job satisfactorily. The new
employee’s initial orientation helps him perform better by providi ng him
information of the company rules, and practices.
According to Pigors and Myers, “Placement consists in matching what
the supervisor has reason to think the new employee can do with what the
job demands (job requirements), imposes (in strain, working conditions,
etc.), and offers (in the form of pay rate, interest, companionship with
other, promotional possibilities, etc.)” They further state that it is not easy
to match all these factors for a new worker who is still in many ways an
unknown quantity. For this reason, the first placement usually carries with
it the status of probationer.
A few basic principles should be followed at the time of placement of an
employee on the job. These may be enumerated as below:
Principles of Placement:
 The job should be offered to the man according to his qualifications.
The placement should neither be higher nor lower than the
qualifications.
 While introducing the job to the new employee, an effort should be
made to develop a sense of loyalty and cooperation in him s o that he
may realise his responsibilities better towards the job and the
organisation.
 The employee should be made conversant with the working conditions
prevailing in the industry and all things relating to the job. He should
also be made aware of the pe nalties if he commits a wrong.
 Man should be placed on the job according to the requirements of the
job. The job should not be adjusted according to the qualifications or
requirements of the man. Job first; man next, should be the principle of
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Recruitment and Selection
Part II  The placement should be ready before the joining date of the newly
selected person.
 The placement in the initial period may be temporary as changes are
likely after the completion of training. The employee may be later
transferred to the job where he can do better justice.
MEANING OF ORIENTATION:
In the words of John M. Ivancevich , “Orientation orients, directs, and
guides employees to understand the work, firm, colleagues, and mission. It
introduces new employees to the organisation, and to his new tasks,
managers, and work groups.”
According to John Bernardin, “Orientation is a term used for the
organizationally sponsored, formalized activities associated with an
employee’s socialisation into the organisation.”
Billimoria has defined orientation as, “Induc tion (orientation) is a
technique by which a new employees rehabilitated into the changed
surroundings and introduced to the practices, policies, and purposes of the
organisation.”
Orientation is one component of the new employee socialization process.
Socialization is the ongoing process of instilling in all new employees
prevailing attitudes, standards, values, patterns of behaviour that are
expected by the organisation and its departments.
Thus, orientation is a process through which a new employee is in troduced
to the organisation. It is the process wherein an employee is made to feel
comfortable and at home in the organisation. The new employee is handed
over a rulebook, company booklets, policy manuals, progress reports and
documents containing company information which are informational in
nature. It is responsibility of the human resource department to execute the
orientation programme.
5.5 INDUCTION
Induction is the important part of HR management and Development
because after the appointments, it is the prime duty of an organization to
make their newly employees acquainted with work place and
environment. It is but obvious that they are curious as well as nervous
initially. To reduce their anxiety and tension, induction training should be
given to ea ch and every newly appointed entrant. It makes them
comfortable at work place and they get adapted to the work accordingly.
So in this unit we shall study about induction and related issues of it.
Meaning:
Every organization has a recruitment policy by whi ch many people are
appointed time to time. These newly appointed employees are new to the
job place and for them everything is strange. The environment, people,
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Management this all. So it is very e ssential to introduce them with the organization, its
mission, vision, culture, system etc. every organization has to provide
training to their new entrants.
It is known as induction. It is the next step after selection and placement.
It helps newly joined employees to adjust him or her to the work in the
organization and to make him or her feel at home with his co -workers. So
in easy words, we can say that introducing new entrants with the
organization and its people is induction.
It is must for the organi zational as well as individual point of view.
Induction is welcoming a new employee to the organization. In other
words, it is a well orchestrated event to socialize the new entrant with the
people and the work environment in a particular organization.
According to Michael Armstrong: “Induction is the process of receiving
& welcoming an employee when he first joins a company & giving him
basic information he needs to settle down quickly & happily & start
work.”
OBJECTIVES OF INDUCTION:
 To help new employees not to feel strange being a part of the
organization after appointment.
 To make employees familiar with the people, work culture, duties and
responsibilities to be performed.
 To make them enable to adapt the new environment and feel stress
free.
 To reduce exploitation by the unscrupulous co – workers.
 To make him feel confident at the work place and work without
anxiety and tension
PHASES / TYPES OF INDUCTION PROGRAMME:
Induction is not an immediate activity but it is a process an itself. Its
stages are:
 General Induction
 Specific Induction
 Follow – up Induction
This first phase of induction is General considered by the HR department.
Here the new employees are made aware about the mission, philosophy
and vision of the organization. The very purpose of the organization is
made clear while introduction them with organization. The new
employees is also briefed about his service condition, pay & perks,
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Part II mechanisms practiced in the organization. This t ype of induction is given
accordingly. No time is fixed for it. It may be given for a week or for
many weeks.
Specific Induction
This induction is given by the new employee’s supervisor or boss. The
focus is on the overall exposition of the new employee of the new
employee to his job. the employee is introduced to the job, shown place of
work & around the premises, introduced to the job. He is introduced to his
colleagues & informed about the procedure of work, rules and
conventions to be followed etc. This helps the new employee adjust with
his work environment. It also improves the relationship between superior
and subordinates.
Follow – up Induction
This type of induction is carried to know whether the new entrant is
capable to carry his duties or not or if he understood the organizational
related issues. This induction is given by the employee’s supervisor or a
qualified specialist on industrialist psychology. It is more psychological in
nature and concluded with the effectiveness of induction training pr ovided
already.
PROCEDURE FOLLOWED WHILE CARRYING INDUCTION
PROGRAMME .
Welcoming new entrants
The new employees need to be welcomed by the organization. It makes
them well confident and starts feeling that they are being considered as a
part of the organiz ation. It creates a sense of belongingness among them.
From the day of their joining, they should be treated with care.
Determining the information:
In this stage it should be considered what the new entrants need to know.
What exactly they are interested to know. Of course the basic information
should be provided to them. It is also not necessary that everything should
be informed at a time or load their minds with the information. They
should be given time to adapt themselves with the organizational
envir onment.
Method of providing information:
At this stage, decision should be taken regarding how to provide the
information to the employees. Most of the time through power point
presentations is used in the classroom to train the new employees. But
until ot herwise employees are physically making acquainted with the
organization, it will difficult to get mixed with everyone.

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Management Right Instructor:
It is expected that the induction training should be provided by the
experienced staff or most of the time superior . It is very important because
the mind of the new employee is full off questions and doubts. So the
instructor should be a man of knowledge and motivated himself to help
the new entrants come out of anxiety.
Evaluation of the induction:
It is the last ste p of induction programme where attempts are made to
understand to what extent the induction training has been useful to the
employees. There are many methods of evaluating the effectiveness of
induction programme. It helps HR department to bring new ideas in the
area of induction training.
 IMPORTANCE OF INDUCTION
Easy entry:
Due to the induction training, newly appointed employees feel happy on
the introduction with existing employees and the work environment. So
induction helps them to get oriented with t he everything within the
organization.
High morale:
Being made introduced with the organization, newly appointed employees
feel highly motivated and their moral gets boosted. They fell satisfied
doing work at right place and being trained formally, they ge t adapted the
organizational environment easily.
Role clarity:
Duplication work is avoided here by ensuring newly appointed employees
what they are expected to do. They are made clearly understood with the
work assigned and overcome with ambiguity.
Satisfa ction of the job:
Today most of the job skipping or turnover is observed because new
entrants are not happy with job or they are not provided with proper
training. If the induction is properly provided and they are introduced well
with the organization, th ey feel contented and do the job at their best.
Less absenteeism and turnover:
Most of the time an employee remains absent if he is not happy with the
work place or do not many things at the work place. So if they are
provided proper induction, they do not remain absent and also do not
leave an organization. But stay connected for long.
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Recruitment and Selection
Part II Goodwill
Companies with good image in the market never compromise with any
problem. They provide induction training to their entire entrant
considering them an asset of the organization. It increases their goodwill
or brand in the market.
5.6 SUMMARY
Selection is the process of picking up individuals out of the pool of the job
applicants with requisite qualifications and competence to fill jobs in the
organisation. Proper select ion can minimize the costs of replacement and
training, reduce legal challenges, and result in a more productive work
force. The discrete selection process would include: Application Pool,
Preliminary Screening and Interview, Application Blank or Applicati on
Form, Selection Tests, Interview Background Investigation, Physical
Examination, Approval by Appropriate Authority, Final Employment
Decision and Evaluation.
Selection process involves mutual decision making. The organisation
decides whether or not to m ake a job offer and how attractive the job offer
should be. The candidate decides whether or not the organisation and the
job offer is according to his goals and needs. Selection of proper personnel
helps the management in getting the work done by the peop le effectively.
To be an effective predictor, a selection device should be Reliable, Valid
and Predict a relevant criterion
In India the selection process on hiring skilled and managerial personnel
are fairly well defined and systematically practical.
5.7 SELF ASSESSMENT QUESTIONS
1. What do you understand by selection process? Discuss various steps
involved in it.
2. What is application blank? What purpose does it serve? Explain the
contents of an application blank.
3. Discuss the characteristics of a good test. Ex plain various types of
tests used in the selection process.
4. What is an interview? What purpose does it serve? Discuss various
types of interviews.
5. Discuss various guidelines to be followed for an interview.
6. Explain various steps involved in the selection o f personnel.
7. What do you understand by placement and orientation?
8. What is induction training? What are the objectives of such training?
9. What are the stages or phases of carrying induction?
10. What are the various phases of induction?
11. Explain the importance and significance of induction.
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6
PERFORMANCE APPRAISAL
Unit Structure
6.0 Objectives
6.1 Introduction
6.2 Meaning of Performance Appraisal
6.3 Need and Importance of Performance Appraisal
6.4 Objectives of Performance Appraisal
6.5 Methods of Performance Appraisal
6.6 The Performance Ap praisal Process
6.7 Factors Affecting Performance Appraisal
6.8 Benefits of Performance Appraisal
6.9 Problems of Performance Appraisal
6.10 Performance Appraisal Practices in India
6.11 Effective Performance Appraisal
6.12 Summary
6.13 Self Assessment Que stions
6.0 OBJECTIVES
After completing this unit, you will be able to:
 Understand the concept of performance appraisal.
 State the meaning and importance of performance appraisal.
 Discuss the benefits and problems of appraisal.
 Enumerate the steps in perfor mance appraisal process.
 Outline the objectives of performance appraisal
 Describe various appraisal methods.
 Outline few performance appraisal practices in India.
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Performance Appraisal
6.1 INTRODUCTION
In a casual sense, performance appraisals as old as mankind itself. In an
official sense, performance appraisal of an individual began in the Wei
dynasty (AD. 261 -265) in China, where an Imperial Rater appraised the
performance of the official family’.
In 1883, the New York City Civil Service in USA introduced an official
apprai sal programme shortly before World War. However, official
appraisal of employees’ performance is thought to have been started for
the first time during the First World War, when at the instance of Walter
Dill Scott, the US Army: adopted the “Man -to- man’ r ating system for
evaluating personnel. For being fair and unbiased, in judging the
employee it is necessary to review the performance of the person in the
organization. This is now done in a systematic way in most countries of
the world. The evaluation of an individual’s performance in the
organization is called Performance Appraisal.
The, system of performance appraisal compels the management to have a
promotion policy within the organization. It also gives motivation to those
employees who are efficient a nd are capable of working in a best way. It
is also described as merit rating in which one individual is ranked as better
or worse in comparison to others. The basic purpose in this merit rating is
to determine an employee’s eligibility for promotion. Howe ver,
performance appraisal is a broad term and it may be used to ascertain the
need for training and development, salary increase, transfer, discharge,
etc. besides promotion.
In simple terms, performance appraisal may be understood as the review
of an ind ividual’s performance in an orderly way, the performance is
measured by considering factors like job knowledge, quality and quantity
of output, initiative, leadership abilities, supervision, dependability, co -
operation, judgment, versatility, health, and t he like. Evaluation should not
be restricted to past performance alone but, the future performances of the
employee should also be assessed.
6.2 MEANING OF PERFORMANCE APPRAISAL
Performance appraisal system has been defined in many ways. The easiest
way to understand the meaning of performance appraisal is as follows:
It is the systematic assessment of an individual with respect to his or her
performance on the job and his or her potential for development in that
job. Thus, performance appraisal is a system atic and objective way of
evaluating the relative worth or ability of an employee in performing his
job. The two aspects of performance appraisal considered to be important
are:
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Management  Systematic Aspect :
The appraisal is said to be systematic when it evaluates all performances
in the same manner, by applying the same approach, so that appraisal of
different persons are comparable. Such an appraisal is taken from time to
time according to plan; it is not left to probability. Thus, both raters’ and
rates know the system of performance appraisal and its timing.
 Objective Aspect :
Appraisal has objectivity also. It’s important is that it attempts at precise
measurement by trying to remove human biases and prejudices.
According to Flippo , a prominent personality in the field of Human
resources, “performance appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in the matters pertaining to
his present job and his potential for a better job.”
In the words of Yoder, “Performance appraisa l refers to all formal
procedures used in working organizations to evaluate personalities and
contributions and potential of group members.” Thus performance
appraisal is a formal programme in an organization which is concerned
with not only the contributi ons of the members who form part of the
organization, but also aims at spotting the potential of the people.”
It is a systematic way of judging the relative worth of an employee while
carrying out his work in an organization. It also helps recognize those
employees who are performing their tasks well and also who are not
performing their tasks properly and the reasons for such (poor)
performance.
According to International Labor Organization, “A regular and
continuous evaluation of the quality, quantity and style of the performance
along with the assessment of the factors influencing the performance and
behavior of an individual is called as performance appraisal.”
In short, we can say that performance appraisal is expected to result in an
assessment of: dev elopment potential of the employees, training needs for
the employees; capabilities of employees being placed in higher posts,
behavior and obedience of the employees; and the need of the
organization to evolve a control mechanism.
6.3 NEED AND IMPORTANCE OF PERFORMANCE
APPRAISAL
Performance is always measured in terms of outcome and not efforts.
Performance Appraisal is needed in most of the organizations in order:
 To give information about the performance of employees on the job
and give ranks on the basi s of which decisions regarding salary
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Performance Appraisal  To provide information about amount of achievement and behavior of
subordinate in their job. This kind of information helps to evaluate the
performanc e of the subordinate, by correcting loopholes in
performances and to set new standards of work, if required.
 To provide information about an employee’s job -relevant strengths
and & weaknesses.
 To provide information so as to identify shortage in employee
regarding ability, awareness and find out training and developmental
needs.
 To avoid grievances and in disciplinary activities in the organization.
 It is an ongoing process in every large scale organization.
Performance appraisals in an organization provide employees and
managers with an opportunity to converse in the areas in which employees
do extremely well and those in which employees need improvement.
Performance appraisals should be conducted on a frequent basis, and they
need not be directly attached to promotion opportunities only.
It is important because of several reasons such as:
 Personal Attention: Performance appraisal evaluation, gives
employee to draw personal concern from supervisor and talk about
their own strengths and weaknesses.
 Feedback: Employees on a regular basis get feedback of their
performances and issues in which they lack, which needs to be
resolved on a regular basis.
 Career Path: It allows employees and supervisors to converse goals
that must be met to grow within the company. Th is may encompass
recognizing skills that must be acquired, areas in which improvement
is required, and additional qualification that must be acquired.
 Employee Accountability: Employees are acquainted that their
evaluation will take place on a regular basi s and therefore they are
accountable for their job performance.
 Communicate Divisional and Company Goals: It not only
communicates employees’ individual goals but provides an
opportunity for managers to explain organizational goals and in the
manner in whi ch employees can contribute in the achievement of those
goals.
6.4 OBJECTIVES OF PERFORMANCE APPRAISAL
Performance appraisal in any organization is undertaken to meet certain
objectives which may be in the form of salary increase, promotion,
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An employee in an organization may think that performance appraisal is
basically used by the organization to blame employees and to take
corrective actions, in such a case well thought out performance appraisal
may results into failure. Therefore the objective of performance appraisal
should be clear and specific. Thus including objectives into the appraisal
system may draw attention to areas for improvement, new directions and
opportunities.
 Salary Increase: Performance appraisal plays an important role in
making decision about increase in salary. Increase in salary of an
employee depends on how he is performing his job. Evaluation of an
emplo yee takes place on a continuous basis which may be formally or
informally. In a large as well as in small organizations performance
appraisal takes place but it may be in a formal or informal way. It shows
how well an employee is performing and to what ext ent a hike in salary
would take place in comparison to his performance.
 Promotion : Performance appraisal gives an idea about how an
employee is working in his present job and what his strong and weak
points are. In comparison to his strength and weaknesses it is decided
whether he can be promoted to the next higher position or not. If
necessary what additional training is required? Similarly it could be used
for demotion, discharge of an employee and transfer.
 Training and Development: Performance appraisal gives an idea
about strengths and weaknesses of an employee on his present job. It gives
an idea about the training required by an employee for overcoming the
limitations that an employee is having for better performance in future.
 Feedback: Performance a ppraisal gives an idea to each employee
where they are, how they are working, and how are they contributing
towards achievement of organizational objectives. Feedback works in two
ways. First, the person gets view about his performance and he may try to
conquer his weaknesses which may lead to better performance. Second,
the person gets satisfied after he relates his work with organizational
objectives. It gives him an idea that he is doing a meaning full work and
can also contribute in a better way.
 Pressu re on Employees : Performance appraisal puts a sort of stress
on employees for better performance. If the employees are aware that they
are been appraised in comparison to their performance and they will have
positive and acceptable behaviour in this respec t
6.5 METHODS / TECHNIQUES OF PERFORMANCE
APPRAISAL
Performance appraisal methods are categorized in two ways traditional
and modern methods. Each organization adopts a different method of
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Performance Appraisal organization, it may be on an informal basis where personal opinion of a
superior about his subordinates may consider for appraisal.
Table: Methods of Performance Appraisal
Traditional Methods Modern Methods

Ranking method Management by Objectives (MB0 )
Paired comparison Behaviorally anchored rating scales
Grading method Assessment centers
Forced distribution method 360-degree appraisal
Forced choice method Cost accounting method
Checklist method
Critical incidents method
Graphic scale method
Essay method
Field review method

TRADITIONAL METHODS
Ranking Method:
It is the oldest and simplest method of performance appraisal in which
employees’ are ranked on certain criteria such as trait or characteristic.
The employee is ranked from highest to lowest or from worst to best in an
organization. Thus if there are seven employees to be ranked then there
will be seven ranks from 1 to 7.
Rating scales offer the advantages of flexibility comparatively easy use
and low cost. Nearly every type of job can be evaluated with the rating
scale, the only condition being that the Job performance criteria should he
changed’. In such a way, a large number of employees can be evaluated in
a shorter time period.
The greatest limitation of this method is that diff erences in ranks do not
indicate how much an employee of rank 1 is better than the employee
whose rank is last.
Paired Comparison: In method is comparatively simpler as compared to
ranking method. In this method, the evaluator ranks employees by
comparing one employee with all other employees in the group. The rater
is given slips where, each slip has a pair of names, the rater puts a tick
mark next those employee whom he considers to be the better of the two.
This employee is compared number of times so as to determine the final
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Management This method provides comparison of persons in a better way. However,
this increases the work as the large number of comparisons has to be
made.
Grading Method: In this method, certain categories are defined well in
advance and employees are put in particular category depending on their
traits and characteristics. Such categories may be defined as outstanding,
good, average, poor, very poor, or may be in terms of alphabet like A, B,
C, D, etc. where A may indicate the best a nd D indicating the worst. This
type of grading method is applied during Semester pattern of
examinations. One of the major limitations of this method is that the rater
may rate many employees on the better side of their performance.
Forced Distribution Me thod: This method was evolved to abolish the
trend of rating most of the employees at a higher end of the scale. The
fundamental assumption in this method is that employees’ performance
level conforms to a normal statistical distribution. For example, 10 p er
cent employees may be rated as excellent, 40 per cent as above average,
20 per cent as average, 10 per cent below average, and 20 per cent as poor.
It eliminates or minimizes the favoritism of rating many employees on a
higher side. It is simple and eas y method to appraise employees. It
becomes difficult when the rater has to explain why an employee is placed
in a particular grouping as compared to others.
Forced -choice Method: The forced -choice rating method contains a
sequence of question in a statemen t form with which the rater checks how
effectively the statement describes each individual being evaluated in the
organization. There may be some variation sin the methods and statements
used, but the most common method of forced choice contains two
statem ents both of which may be positive or negative. It may be both the
statement describes the characteristics of an employee, but the rater is
forced to tick only one i.e. the most appropriate statement which may be
more descriptive of the employee. For examp le, a rater may be given the
following two statements:
 The employee is hard working.
 The employee gives clear instructions to his subordinates.
Though both of them describe the characteristics of an employee, the rater
is forced to tick only one which appe ars to be more descriptive of the
employee. Out of these two statements, only one statement is considered
for final analysis of rating. For example, a rater may be given the
following two statements:
 The employee is very sincere.
 Employee gives clear and f ast instructions to his subordinates.
Both of the above statements are positive but the rater is supposed to rate
only one which is more appropriate of subordinate’s behavior. For ranking
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Performance Appraisal statement to be considered the result would be free from bias. This method
may be more objective but it involves lot of problems in framing of such
sets of statements.
Check -list Method: The main reason for using this method is to reduce
the burden of ev aluator. In this method of evaluation the evaluator is
provided with the appraisal report which consist of series of questions
which is related to the appraise. Such questions are prepared in a manner
that reflects the behavior of the concerned appraise. E very question has
two alternatives, yes or no, as given below:
 Is he/she respected by his/her subordinates? Yes/No
 Is he/she ready to help other employees? Yes/No
 Does her behavior remain same for everyone in the organization?
Yes/No
The concerned ra ter/evaluator has to tick appropriate answers relevant to
the appraises.
When the check list is finished, it is sent to the personnel department to
prepare the final scores for all appraises based on all questions based on
yes or no. While preparing questi on effort is made to establish the level of
consistency of the rater by asking the same question twice but in a
different manner. This method is considered to be easy if questions are
framed properly for different categories of employees.
However, one of t he disadvantages of the checklist method is that it is
very difficult to accumulate, analyze and evaluate a number of statements
about employee characteristics and contributions. It is even costly method
with lot of time and efforts required by the organiz ation.
Critical Incidents Method: This method is very useful for finding out
those employees who have the highest potential to work in a critical
situation. Such an incidence is very important for organization as they get
a sense, how a supervisor has hand led a situation in the case of sudden
trouble in an organization, which gives an idea about his leadership
qualities and handling of situation. It is also said to be continuous
appraisal method where employees are appraised continuously by keeping
in mind the critical situation. In this method, only the case of sudden
trouble and behavior associated with these incidents or trouble are taken
for evaluation.
This method is categorized in three steps. First, a list of notable (good or
bad) on -the-job behavior of specific incidents or sudden trouble is
prepared. Second, selected experts would then assign weightage or score
to these incidents according to how serious a particular incident is and
their degree of willingness to perform a job. Third, finally a check -list
indicating incidents that illustrate workers as good or “bad” is formed.
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Management The strong point of critical incident method is that it focuses on behaviors
and, thus, judge’s performance rather than personalities.
Its drawbacks are that too frequently they need to write down the critical
incidents which are very time consuming and burdensome for evaluators,
i.e., managers. Generally, negative incidents are more noticeable than
positives.
Graphic Scale Method: It is one of the simplest and most popular
techniques for appraising performances of employee. It is also known as
linear rating scale. In graphic rating scale the printed appraisal form is
used to appraise each employee.
Such forms c ontain a number of objectives, and trait qualities and
characters to be rated like quality of work and amount of work, job know
how dependability, initiative, attitude, leadership quality and emotional
stability.
The rater gives an estimate the extent to w hich subordinates possess each
quality. The extent to which quality is possessed is measured on a scale
which can vary from three points to several points. In general practice five
point scales is used. Some organizations use numbers in order to avoid the
propensity of the rater to tick mark central points. It may be numbered or
defined. Thus numbers like 5, 4, 3, 2 and 1 may denote points for various
degrees of excellent -poor, high -low, or good -bad, and so on. Such
numbers may be expressed in terms like ex cellent, very good, average,
poor and very poor; or very high, high, average, low and very low.
Graphic scale method is good for measuring various job behaviors of an
employee. But, it is bound to limitations of rater’s bias while rating
employee’s behavio r at job.
Essay Method: In this method, the rater writes a detailed description on
an employee’s characteristics and behavior, Knowledge about
organizational policies, procedures and rules, Knowledge about the job,
Training and development needs of the emp loyee, strengths, weakness,
past performance, potential and suggestions for improvement. It is said to
be the encouraging and simple method to use. It does not need difficult
formats and specific training to complete it.
Field Review Method: In this method of appraisal direct superior is not
going to appraise an employee but appraised by another person, usually,
from personnel department. The rater, in such a case, appraises the
employee on the basis of his past records of productivity and other
information such as absenteeism, late coming, etc. It is more suitable in a
situation where an organization wants to provide promotion to an
employee. It also gives information for comparing employees from
different locations and units. It reduces partiality to some extent as
personnel department person is supposed to be trained in appraisal
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Performance Appraisal As employees are not rated by immediate boss, the rater from other
department may not be familiar with the conditions in an em ployee’s work
environment which may hamper his ability and work motivation to
perform.
The rater from other department do not get a chance to scrutinize the
employee’s behavior or performance with different time interval and in a
variety of situations, but only in an unnaturally structured interview
situation which is for a very short period of time.
MODERN METHODS
Management by Objectives (MB0): The concept of ‘Management by
Objectives’ (MBO) was coined by Peter Drucker in 1954. It is a process
where the e mployees and the superiors come together to identify some
goals which are common to them, the employees set their own goals to be
achieved, the benchmark is taken as the criteria for measuring their
performances and their involvement is there in deciding t he course of
action to be followed.
The basic nature of MBO is participative, setting their goals, selecting a
course of actions to achieve goals and then taking decision. The most
important aspect of MBO is measuring the actual performances of the
employ ee with the standards set by them. It is also said to be a process that
integrates organizational objectives into individual objectives.
Steps in MBO:
Entire programme of MBO is divided in four major steps i.e. Setting up of
goal, Action Planning, Comparis on and Timely Review.
Setting up of goal: In goal setting superior and subordinate together set
certain goals, i.e. the expected outcome that each employee is supposed to
achieve.
Action Planning: In action planning, the manner in which goals could be
achieved is determined i.e. identifying the activities which are necessary
to perform; to achieve or determined goals or standards. When the
employees start with their activities, they come to know what is to be
done, what has been done, and what remains to be done and it also gives
an idea about the resources to be achieved.
Timely Review : In this third step, the goals set by the individual
employee are compared with the actual goals achieved. It gives an idea to
the evaluator as why there is a variation in de sired outcome and actual
outcome. Such a comparison helps create need for training so as to
enhance employees’ performance. Finally, in the timely review step,
corrective actions are taken so that actual performances do not deviates
from standards establis hed in beginning.
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Management Advantages of MBO:
Few advantages of MBO are:
 It is an outcome oriented method.
 It coordinates the planning and c ontrol functions and provides
motivation.
 Employees are clear about the task that they are expected to perform
and also how they may be evaluated.
Limitations of MBO:
MBO do have certain limitations such as:
 It is time consuming process.
 Employees and the superiors jointly setting the goals may lead to
conflict as employee would always like to set lower goal and the
superior would like to set it on the higher side.
 Lack of confidence in employee by management.
Behaviorally Anchored Rating Scales: This metho d is a combination of
traditional rating scales and critical incidents methods. It consists of preset
critical areas of job performance or sets of behavioral statements which
describes the important job performance qualities as good or bad (for e.g.
the qu alities like inter personal relationships, flexibility and consistency,
job knowledge etc). These statements are developed from critical
incidents.
These behavioral examples are then again translated into appropriate
performance dimensions. Those that are selected into the dimension are
retained. The final groups of behavior incidents are then scaled
numerically to a level of performance that is perceived to represent. A
rater must indicate which behavior on each scale best describes an
employee’s performan ce. The results of the above processes are
behavioral descriptions, such as anticipate, plan, executes, solves
immediate problems, carries out orders, and handles urgent situation
situations.
Advantages:
This method has following advantages:
 It reduces rat ing errors as the behavior is assessed over traits.
 It gives an idea about the behavior to the employee and the rater about
which behaviors bring good Performance and which bring bad
performance.
Assessment Centers: It is a method which was first implement ed in
German Army in 1930. With the passage of time industrial houses and munotes.in

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Performance Appraisal business started using this method. This is a system of assessment where
individual employee is assessed by many experts by using different
technique of performance appraisal. The te chniques which may be used
are role playing, case studies, simulation exercises, transactional analysis
etc.
In this method employees from different departments are brought together
for an assignment which they are supposed to perform in a group, as if
they are working for a higher post or promoted. Each employee is ranked
by the observer on the basis of merit. The basic purpose behind
assessment is to recognize whether a particular employee can be
promoted, or is there any need for training or development.
Advantages:
This method has certain advantages such as it helps the observer in
making correct decision in terms of which employee has the capability of
getting promoted.
Disadvantages:
It has certain disadvantages also it is costly and time consuming,
discourages the poor performers etc.
360 Degree Performance Appraisals: This method is also known as
‘multi -rater feedback’, it is the appraisal in a wider perspective where the
comment about the employees’ performance comes from all the possible
sources tha t are directly or indirectly related with the employee on his job.
In 360 degree performance appraisal an employee can be appraised by his
peers, managers (i.e. superior), subordinates, team members, customers,
suppliers, vendors anyone who comes into dire ct or indirect contact with
the employee and can provide necessary information or feedback
regarding performance of the employee the “on -the- job”.
The four major component of 360 degree performance appraisal are
 Employees Self Appraisal
 Appraisal by Super ior
 Appraisal by Subordinate
 Peer Appraisal.
Employee self appraisal gives an option to the employee to know his own
strengths and weaknesses, his achievements, and judge his own
performance. Appraisal by superior forms the traditional part of the 360
degree performance appraisal where the employees’ responsibilities and
actual performance is judged by the superior.
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Management Appraisal by subordinate gives a chance to evaluate the employee on the
basis of communication and motivating abilities, superior’s ability to
delegate the work, leadership qualities etc. It is also known as internal
customers; the correct opinion given by peers can aid to find employees’
who are co -operative, employees who ready to work in a team and
understanding towards others.
Cost Accountin g Method: In this method performance of an employee is
evaluated on the basis of monetary returns the employee gives to his or
her organization. A relationship is recognized between the cost included in
keeping the employee in an organization and the benef it the organization
gets from him or her. The evaluation is based on the established
relationship between the cost and the benefit.
The following factors are considered while evaluating an employee’s
performance:
 Interpersonal relationship with others.
 Quality of product produced or service given to the organization.
 Wastage, damage, accidents caused by the employee.
 Average value of production or service by an employee.
 Overhead cost incurred.
6.6 THE PERFORMANCE APPRAISAL PROCESS
The performance appraisa l system of one organization may vary from
other organizations, though some of the specific steps that an organization
may follow are as follows:
Establish Performance Standards: It begins by establishing
performance standards i.e. what they expect from t heir employee in terms
of outputs, accomplishments and skills that they will evaluate with the
passage of time. The standards set should be clear and objective enough to
be understood and measured. The standards which are set are evolved out
of job analysi s and job descriptions. Standards set should be clear and not
the vague one. The expectation of the manager from his employee should
be clear so that it could be communicated to the subordinates that they
will be appraised against the standards set for the m.
Communicating the Standards set for an Employee: Once the
standards for performance are set it should be communicated to the
concerned employee, about what it expected from them in terms of
performance. It should not be part of the employees’ job to est imate what
they are expected do. Communication is said to be two ways street, mere
passing of information to subordinate does not mean that the work is done.
Communication only takes place when the information given has taken
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Performance Appraisal the standards may be tailored or revised in the light of feedback obtained
from the employees.
Measuring of the Actual Performances: It is one of the most crucial
steps of performance appraisal process. It is very important to know as
how the performance will be measured and what should be measured, thus
four important sources frequently used by managers are personal
observation, statistical reports, oral reports, and written reports. However,
these resources give more reliable information. What we measure is
probably more critical to the evaluation process than how we measure.
The selection of the incorrect criteria can result in serious consequences.
What we measure gives an idea about what people in an organizati on will
attempt to achieve. The criteria which are considered must represent
performance as stated in the first two steps of the appraisal process.
Comparing Actual Performance with Standards Set in the Beginning:
In this step of performance appraisal the actual performance is compared
with the expected or desired standard set. A comparison between actual or
desired standard may disclose the deviation between standard performance
and actual performance and will allow the evaluator to carry on with the
discu ssion of the appraisal with the concerned employees.
Discussion with the Concerned Employee: In this step performance of
the employee is communicated and discussed. It gives an idea to the
employee regarding their strengths and weaknesses. The impact of th is
discussion may be positive or negative. The impression that subordinates
receive from their assessment has a very strong impact on their self esteem
and, is very important, for their future performances.
Initiate Corrective Action: Corrective action can be of two types; one is
instant and deals primarily with symptoms. The other is basic and deals
with the causes. Instant corrective action is often described as “putting out
fires”, where as basic corrective action gets to the source from where
deviation has taken place and seeks to adjust the differences permanently.
Instant action corrects something right at a particular point and gets things
back on track. Basic action asks how and why performance deviated. In
some instances, managers may feel that they do not have the time to take
basic corrective action and thus may go for “perpetually put out fires.
Thus the appraisal system of each organization may differ as per the
requirement of that Organization .
6.7 FACTORS AFFECTING PERFORMANCE
APPRAISAL
There a re various factors which may influence the performance appraisal
system in any organization. There are some factors which introduce bias
whereas; some other factors hinder purposeful assessment. Such factors
are as follows:
Value System of Evaluator: The t ask of evaluator is to assess the work
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Management for some purposeful assessment. It happens that evaluator sometime
judges the performance on the basis of their own value system. Each
person has his own value system and socio cultural environment. Mostly,
it is found that the reports are influenced by the evaluator value -system.
This subjective element has lot of impact on final report.
Dominant Work Orientation: The performance Appraisal Rep ort of a
subordinate is prepared by a superior is found to have an impact by the
dominant work orientation of the superior officer. Sometimes there is
more emphasis on certain aspect of the work as compared to other aspect
which may be equally important by the superior. It introduces subjectivity
performance appraisal system.
 Inclination for work of dynamic nature.
 Liking for routine work and strict maintenance of.
 Importance on inter -personal relations and rank.
 Emphasis on qualities which do not have much functional utility; and
 Emphasis on consistency to some philosophy.
These elements bring subjectivity in the process of evaluation, influence
the judgment of the superior and distort the evaluation of performance of
the subordinates.
Loyalty: It plays a v ital role in evaluating employee. An Employee shows
loyalty due to many reasons such as common values, objectives,
emotional needs, interests, caste, religion, language or region. Loyalty
brings the superior and the loyal subordinate closer and closer to e ach
other, and creates distance between those employees who are not loyal to
their superior. This makes assessment of superior to be biased.
Level of Achievement : Subordinates evaluation may also depend on the
level of achievement of the superior. If there is a vast difference between
the level of achievement of the superior and Subordinate, then it can
create problems of adjustment and purpose for which evaluation is done is
not achieved.
Factors Hindering Objective Assessment: There are various factors
which obstruct the objective appraisal of the performance of the
subordinates. These factors are as follows:
Superiority complex of the superior reporting officer.
 Overall performance assessment does not take place only certain
incidences are assessed.
 Past record of the subordinate.
 Personality of the subordinate.
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Performance Appraisal 6.8 BENEFITS OF PERFORMANCE APPRAISAL
An effective performance appraisal system can be of benefit to three
parties they are for organi zation, for appraiser and for appraisee.
For the Organizations:
Following are the benefits to an organization:
 It leads to better performance throughout the organization, due to
successful communication of the objectives and values of the
organizations, se nse of being close to the organization, loyalty and
improved relationships between managers and staff.
 Overall improvement in the duties performed by each employee of the
organization.
 Due to performance appraisal of employee new ideas for improvement
in their work is generated. Long term plans can be generated.
 The need for training and development can be identified more clearly.
 A tradition of nonstop improvement and success in the organization
can be formed and maintained. Career development plans can be
chalked out for capable employee to enhance their performance in
future.
For the appraiser:
Following are the benefits to the appraiser:
 It gives an opportunity to the appraiser to develop a general idea of
individual jobs and departments. For every new o r difficult situation
new idea is generated for improvement or for overcoming that
problem.
 It gives an opportunity to integrate team and individual objectives and
targets with departmental and organizational objectives.
 It gives an opportunity to explain the amount of work expected by
manager from teams and individuals.
 It gives an opportunity to focus more on targets.
 It enables to form more productive relationship with staff based on
mutual trust and understanding.
For the Appraisee:
Following are the be nefits for the appraisee:
 Increased motivation.
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Management  Increased sense of personal value. Increase in morale of an employee.
 It gives an opportunity to know their strength and weaknesses. It gives
an idea about areas of their improveme nt.
 There will be a chance to subordinate to express his views even after
performance appraisal An employee should express his emotional
needs and his value system which is considered to be important today.
6.9 PROBLEMS/LIMITATIONS OF PERFORMANCE
APPRAISAL
Performance appraisal technique is very beneficial for an organization for
taking decisions regarding salary fixation, demotion, promotion, transfer
and confirmation etc. But, it is not free from problems. Some of these
problems are as follows:
Problems with Performance Appraisal are:
Leniency Error
Typically some raters have a tendency to avoid conflict with their
employees and project themselves as ‘good managers’. In an effort to
avoid conflict, the rater has the tendency to be overly generous in
judgment. They assign higher rating to an employee’s performance than
warranted by his actual level of performance.
Strictness Error:
Strictness error refers to the tendency of raters to be overly harsh while
judging performance of employees. This may be a case whe re the
standards of performance may be too high or unrealistic or the manager’s
personality characteristics or experience may be the cause. Such strictness
results in lower rating of all employees under the rater and cause
frustration and anger in good per formers. Leniency or severity on the part
of a rater defeats the very purpose of performance appraisal. Depending
on rater’s own mental make up at the time of appraisal, rater may rate
strictly or leniently. Holding raters accountable for the accuracy of t heir
ratings, especially when ratings are for administrative purposes, may be an
effective strategy for reducing leniency error. (Ami B. et al. 2005)
Spill over Effect
A spillover effect takes place when past performance appraisal ratings
unjustifiably inf luence current ratings. Past ratings, good or bad, result in
similar rating for current appraisal although demonstrative behavior does
not deserve the ratings, good or bad.
Bias Effect
This effect to allow individual differences such as sex, race, and age to
affect the appraisal ratings employee receive. The interpersonal affect, a
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Performance Appraisal traditionally been conceptualized as a source of bias in performance
appraisals. However, some researc hers have argued that the interpersonal
affect may not be a bias, especially where it develops as a result of past
performance.
Halo Effect
In halo effect, the appraiser / manager draws on one specific
characteristics / accomplishment to excessively influe nce performance
review or applies favourable ratings to all job duties based on impressive
performance in one area. For example, if an employee is accurate in work
but lacks initiative.
This error takes place when one aspect of an individual’s performance
affects the appraisal of his entire performance. In an organisation halo
error occurs when an employee who works late constantly might be rated
high on productivity and quality of output as well as on motivation.
Horn Effect
Highly critical bosses have ten dency to compare performance of their
subordinates with negative attitude.
Rater Effect
High or low ratings are given to certain individuals or groups based on
rater’s attitude towards the ratee not on actual performance or output. This
includes stereotypi ng, favouritism and hostility.
Recent performance appraisal research has highlighted the important role
played by contextual and individual factors in shaping rating behavior
such as personality factors or beliefs, systematically affect rating behavior.
The effects of these context and rater factors are reflected in ratings
accuracy, ratings discrimination among raters/dimensions, and rating
elevation. ( Aharon Tziner et. Al 2005). According to the findings of a
study attitudes and beliefs account for subst antial variance in rater’s
likelihood of giving high or low ratings, willingness to discriminate good
from poor performers, and willingness to discriminate among various
aspects of job performance when completing actual performance ratings.
(Aharon Tziner et al. 2001)
Status Effect
The employees working at higher level jobs are overrated whereas
employees working at lower level jobs underrated.
Latest behaviour
Sometimes, the appraisal is influenced by the most recent behaviour,
ignoring the common behaviou r of an individual during the entire period.

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Management Shifting Standards
Performance appraisal should be based on uniform and fair standards. If
the standards are changed then employees might get confused and
organisation might not be able to promote right candid ate. For e.g. last
year quality was the criteria for appraisal but boss decides to judge them
this year on the basis of quantity.
First impression
Raters may form an overall impression of a candidate based on some
specific qualities or behaviour in first m eeting and carry it forward. At the
time of appraisal rater rates a candidate with same impression.
Poor appraisal forms
The appraisal process might also be influenced by certain factors relating
to appraisal forms such as vague and unclear rating scale, i rrelevant
performance dimension, long and complex contents in the form etc.
Situational factors:
Theory and research suggest that both person and situation influence
observed performance. System or situational factors can either enhance or
constrain perfor mance. If raters do not compensate for the influence of
situational factors, ratings will be contaminated with situational influences
and will fail to validly reflect the true level of performance (I.M. Jawahar,
2005)
Political Purposes
There is evidence t hat performance ratings are often manipulated for
political purposes. The study examined the effects of employees’
perceptions of political motives in performance appraisal on their job
satisfaction and intention to quit results indicated that when employe es
perceived performance ratings to be manipulated because of raters’
personal bias and intent to punish subordinates they expressed reduced job
satisfaction that, in turn, led to greater intentions to quit their jobs.
Manipulations of ratings for motivati onal purposes, however, had no
effect on job satisfaction and turnover intention. (June M.L. Poon, 2004)
6.10 PERFORMANCE APPRAISAL PRACTICES IN
INDIA
The systematic study of performance appraisal practices in India is very
limited. According to few studies in India the performance appraisal is
mainly undertaken for three objectives such as (i) to determine increments
in salary; (ii) to assist organizational planning, placement, or suitability;
and (iii) for training and development purposes. Other objectives o f
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Performance Appraisal
Every company uses different criteria to evaluate their employees. There
are basically three groups of criteria being used for appraisal purpose:
 Evaluation of qualitative characteristics, such as, intelligence,
reliability, honesty, leadership and attitudes, abilities, etc.,
 Evaluation of actual performance - qualitatively and quantitatively; and
 Evaluation of development and future potential and development b y
an employee during the period under consideration.
Evaluation criteria vary from company to company. There is vast
deviation in periodicity of appraisal of employees. Few companies
appraise annually, some appraise half yearly, and a few quarterly;
howeve r, annual appraisal is most common among many.
The emergence of following trends related to Performance appraisal
practices can be seen in the global scenario: 360 degree feedback, Team
performance appraisal, Rank and yank strategy.
 360 Degree Feedback: It is also known as ‘multi -rater feedback’,
where the feedback about the employees’ performance comes from all
the sources that come in contact with the employee on his job.
 Team Performance Appraisal: In this method each employee
performance is measured as a team member as well as individually.
 Rank and Yank Strategy: It is also known as up or out policy where
the performance appraisal model is prepared in which best -to-worst
ranking methods are used to identify and separate the poor performers
from the good performers. Then certain plans are chalked out for
improvement. Some of the organizations following this strategy are
Ford, Microsoft and Sun Microsystems.
6.11 EFFECTIVE PERFORMANCE APPRAISAL
The performance appraisal system is always questioned in terms of i ts
effectiveness and the problems of reliability and validity. It is always
difficult to know whether what is appraised is what was supposed to be
appraised. As long as subjective judgment is there this question cannot be
answered perhaps, the following st eps can help improve the system.
 The supervisors should be told that they themselves will be evaluated
on the basis of how seriously they are performing their duties.
 To perform assigned task of evaluation in a better way superior should
be provided with b etter training of writing report.
 To carry out job evaluation studies and prepares job descriptions/roles
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Management  The system should be designed in such a way that it is neither difficult
to und erstand nor impossible to practice.
 The supervisor should monitor whether the improvement in
performance in the areas found weak is taking place or not and, if not,
help the employee to achieve the required improvement.
Characteristics of an Effective Perf ormance Appraisal System
According to Watson and Wyatt Survey (2002), “organisations need
strategic support of employees in new economy. People are more
important than ever, people are the only sustainable source of competitive
advantage”. Thus, performanc e appraisal assumes significance for every
business organisation. A good appraisal system possesses the following
characteristics:
 It is based on evidence
 It is highly individualized
 It is a joint activity
 It strives for understanding.
 It creates commitmen t
 It maximizes self -analysis and self -discovery
 It results in improved performance
The essential characteristics of an effective performance appraisal system
are as follows:
 Simple rating system : The rating system should be simple and based
on job analysis for ensuring accuracy and fairness of performance
evaluation of employees.
 Training in appraisal system : All employees, including managers,
should be trained to use the appraisal system so that they understand
the objectives, methodology and purpose of pe rformance appraisal.
 Quantifying performance : Performance appraisal should be based on
accurate up -to-date job descriptions and ratings be made on observable
performance.
 Freedom from biases : Evaluations should be done under standard
conditions and should be free from adverse impact arising due to
personal biases and gender discrimination. A biased appraisal system
is worse than having no appraisal system as it damages the motivation,
morale and productivity of employees and impairs performance
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Performance Appraisal  Participative : Preliminary results of performance appraisal should be
shared with the employee to develop confidence of employees in the
system and to provide opportunities for discussions.
 Reviewing officer : There must be some upper level reviews with
appeal provision so that appraisal ratings are normalized and
employees have an opportunity to speak against unfair treatment by
their immediate superiors.
 Performance feedback : Performance counselling and feedback
should be provided to employees for creating joint action plans for
rectifying deficiencies in performance and seeking means and
measures for improving performance in future.
 Combining absolute and relative standards : Appraisal should be
carried out by combining absolute and relative perform ance standards
so that job performance expectations are relative and achievable.
 Using behavior based measures: Behavioural based measures should
be used to correct and develop appropriate employee attitudes,
motivation and behavior for directing and contr olling employee efforts
and outcomes.
 Identification of performance goals: Performance appraisal of
employees should also be based upon agreed performance goals and
targets for ensuring that employees are rated for the level of
performance expected from th em.
 Training & Development: Performance should be used for employee
development purposes so that gaps in skills and competencies are
addressed and removed for better performance and productivity.
 Recognize and reward achievement: Appraisals should recogniz e,
reward, reinforce and publicize employee achievements to motivate
and serve as a role model for others to emulate.
 Identifying improvement areas: Appraisal should identify areas
where performance is good and when it can be improved.
 Confidence and accep tability of employees: Performance appraisal
process should be carried out in such a way that employees response
trust and confidence in the system. Without employee acceptance,
performance appraisal shall serve no organisational purposes and will
get redu ced to a mere ritual on paper.
 Documentation: Appraisal process should ensure that performance
goals and specific activities for developing performance of employees
are documented for further reference and as legal backup.
Finally, reviewing, the appraisal systems every now and then help
updating it, and making appropriate changes in it. This is the most
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Management passage of time necessary changes in tasks, abilities and skills to perform
has to be made. If changes in the format are not considered the reports
may not generate the kind of result needed to satisfy appraisal objectives.
6.12 SUMMARY
In the organizational context performance appraisal is an evaluation of
personnel in a systematic way by supe riors or others familiar with their
performance. It is also described as merit rating in which one individual is
ranked as better or worse in comparison to others. The basic purpose in
this merit rating is to determine an employee’s eligibility for promoti on.
However, performance appraisal is a broad term and it may be used to
ascertain the need for training and development, salary increase, transfer,
discharge, etc. besides promotion. It is the systematic assessment of an
individual with respect to his or her performance on the job and his or her
potential for development in that job.
Performance appraisals should be conducted on a frequent basis, and they
need not be directly attached to promotion opportunities only. It is
important because of several reas ons such as: Personal Attention,
Feedback, Career Path, Employee Accountability, Communicate
Divisional and Company Goals. Thus, objectives into the appraisal system
may draw attention to areas for improvement, new directions and
opportunities. The methods of performance appraisal are categorized in
two ways traditional and modern methods. Each organization adopts a
different method of performance appraisal according to the need of
organization, with each method having its own advantages and drawbacks.
The performance appraisal system of one organization may vary from
other organizations; this may lead to few changes in appraisal process.
Some of the problems faced in appraising employees are biasness of rater
which may include: (a)halo effect, (b) central t endency error, (c) the
leniency and strictness biases, (d) personal prejudice, and (e) the recent
effect etc.
The systematic study of performance appraisal practices in India is very
limited. Few innovative performance appraisal practices are: 1)
Manageria l personnel are allowed to challenge or appeal appraisal
decisions made by evaluator.2) Employee management skills are
important in performance appraisal.3) Personnel department gives a clear
instruction of policy and its implementation. 4) Evaluation to b e made
only on the basis of performance of employee at work.5) It has also
enhanced role clarity in the Organization.
The latest mantra being followed by organizations across the world being
– “get paid according to what you contribute” – the focus of most of the
organizations is turning to performance management and specifically to
individual performance. It is always questioned in terms of its
effectiveness and the problems of reliability and validity exist which could
be improved if the supervisors are t old that they themselves will be
evaluated on the basis of how seriously they are performing their duties,
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Performance Appraisal provided with better training of writing report. Thus, performance
appraisa l is the technique which is essential for every organization
6.13 SELF ASSESSMENT QUESTIONS
1. “Performance appraisal is the systematic evaluation of the individual
with respect to his performance on the job and his potential for
development’’. What are the optio ns open to you in the design of a
performance appraisal system to achieve this goal?
2. Explain the Performance Appraisal System. Either suggests
improvements to an existing appraisal system in your organization or
design an appraisal system which would meet the objectives outlines
in this chapter.
3. Does current thinking indicates that appraisal for training should be
conducted separately from appraisal for promotion?
4. Explain in detail the process of performance appraisal.
5. Write short notes of:
 Management b y objectives
 Behaviorally Anchored Rating Scale
 Field Review Method
 Critical Incident Method
6. Explain the methods of performance appraisal in detail.
7. “Performance appraisal is not only for appraisal but is for
achievement and improvement of performance”. Ex plain.
8. According to you what should be done to have an effective
performance appraisal system in your organization.

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ETHICS ON PERFORMANCE APPRAISAL
Unit Structure
7.0 Objectives
7.1 Need of Ethics
7.2 Sources of Ethics
7.3 How to Manage Ethics at Workplace
7.4 Five Sources of Ethical Standards
7.5 Self Assessment Questions
7.0 OBJECTIVES
After completing this unit, you wi ll be able to:
 Understand the need of business ethics.
 Know the sources of business ethics.
 Discuss How to manage ethics.
7.1 NEED OF ETHICS ON PERFORMANCE
APPRAISAL
Ethics refers to the study of good and evil, right and wrong, and just and
unjust actions of business people. Business ethics is the same as the
generally accepted norms of good or bad practices. Human resource
management (HRM) is the science of managing people systematically in
organizations. The unique individual actor in the organization a g iven
executive, manager, line worker is not the focus of HRM, rather, human
resources practices and policies concerning recurring cycles of staffing,
reward and compensation, and performance management inform how any
person or group of people is introduced into the organization, managed
while there, and exited from the organization. When these three
overarching aspects of human resource management are designed
effectively, the organization benefits from a management system that
enhances the sustained compet itive advantage of the organization. A
critical part of designing these aspects effectively requires consideration
of ethical concerns at each stage.


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Ethics on Performance
Appraisal The need of business ethics can be explained with the help of the
following points: -
 Introducing Social ism in Business: This means the gains of business
must be shared by all concerned and not just by owner of business. Profit
is the result of group efforts and hence all concerned must share the same.
In other words, the concept of socialism in business say that workers,
shareholders, consumers all others who contribute to the success of the
business must share its gain.
 Interest of Industry: Business ethics are required to protect the
interest of small business firms. Big firms normally try to dominate and
eradicate small firms. If industry follows code of conduct, small firms can
fight for their existence and stay in the business for long.
 Buyers Market: In recent times, structural changes have taken place
in the concept of business. In case of many product s, sellers market has
been converted into buyers market. Under such changed business
conditions business ethics is needed to stress the importance of consumer
satisfaction and service orientation in place of profit orientation.
 Better Relations with Socie ty: Code of conduct results in better
relations between business and society. It will reconcile conflicting
interest of various sections of the society such as workers, shareholders,
consumers, distributors, suppliers, competitors and government.
7.2 SOURCES OF ETHICS
HR managers in every society are influenced by three repositories of
ethical values -religion, culture and law. These repositories contain unique
systems of values that exert varying degrees of control over managers. A
common thread idea of recipr ocity or mutual help runs through all the
value systems. This idea reflects the central purpose of all ethics -which is
to bind the vast majority of individuals in the society into a cooperative
whole. Ethical values constitute a mechanism that controls beh avior in HR
situations and in other walks of life. Ethics driven restraints are more
effective than restrictive controls such as police, law suits or economic
incentives. Ethical values channelize the individual energies into pursuits
that are benign to ot hers and beneficial to the society.
It is a code of conduct that is supposed to align behaviors within an
organization and the social framework. But the question that remains is,
where and when did business ethics come into being?
It is for this reason we do not have uniform or completely similar
standards across the globe. These three factors exert influences to varying
degrees on humans which ultimately get reflected in the ethics of the
organization. For example, ethics followed by Infosys are different than
those followed by Reliance Industries or by Tata group for that matter.
Again ethical procedures vary across geographic boundaries.
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Human Resource
Management  Religion
It is one of the oldest foundations of ethical standards. Religion wields
varying influences across various se cts of people. It is believed that ethics
is a manifestation of the divine and so it draws a line between the good
and the bad in the society. Depending upon the degree of religious
influence we have different sects of people; we have sects, those who are
referred to as orthodox or fundamentalists and those who are called as
moderates. Needless to mention, religion exerts itself to a greater degree
among the orthodox and to lesser extent in case of moderates.
Fundamentally however all the religions such as Hinduism, Buddhism,
Christianity, Islam, Judaism and Confucianism, operate on the principle of
reciprocity towards ones fellow beings.
 Culture
Culture is a pattern of behaviors and values that are transferred from one
generation to another, those that are considered as ideal or within the
acceptable limits. No wonder therefore that it is the culture that
predominantly determines what is wrong and what is right. It is the culture
that defines certain behavior as acceptable and others as unacceptable.
Culture determines what is ethical and what is not. Cultural norms play
important role in determining values because individuals anchor their
conduct in the culture of the group in which they belong.
Human civilization in fact has passed through various cultures, wherein
the moral code was redrafted depending upon the epoch that was. What
was immoral or unacceptable in certain culture became acceptable later on
and vice versa.
During the early years of human development where ones who were the
strongest were the o nes who survived. Violence, hostility and ferocity
were thus acceptable. Approximately 10,000 year ago when human
civilization entered the settlement phase, hard work, patience and peace
were seen as virtues and the earlier ones were considered otherwise. These
values are still pt in practice by the managers of today.
Still further, when human civilization witnessed the industrial revolution,
the ethics of agrarian economy was replaced by the law pertaining to
technology, property rights etc. Ever since a t ussle has ensued between the
values of the agrarian and the industrial economy.
 Law
Laws are procedures and code of conduct that are laid down by the legal
system of the state. They are meant to guide human behavior within the
social fabric. The major prob lem with the law is that all the ethical
expectations cannot be covered by the law and specially with ever
changing outer environment the law keeps on changing but often fails to
keep pace. In business, complying with the rule of law is taken as ethical
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Ethics on Performance
Appraisal 7.3 HOW TO MANAGE ETHICS AT WORKPLACE
The effective management of ethics is sound business practice.
Employees’ morale is raised; bottom -line performance is improved, your
corporate image is enhanced; and customers choose to form business
relationships with companies that adhere to high standards of ethical
conduct. One of your key management tasks is to persuade employees to
accept your organization’s ethi cal values.
Following are some points to consider in managing ethics:
Understand the Benefits of Ethical Conduct.
All key parties benefit from ethical conduct within the organization.
Employees who have confidence in their management contribute to their
organization’s prosperity. Conversely, in an unethical climate, employee
productivity declines, creativity is channeled into seeking ways to profit
personally from the business, loyalty diminishes, and absenteeism and
staff turnover increase. Customers pref er to be associated with and remain
loyal to companies that adhere to codes of ethical behavior. Shareholders
derive up to fifteen time’s greater return from companies with a dedicated
commitment to ethical conduct.
Focus on Ethical Conduct.
When referring to codes of behavior, the term ’ethical conduct’ is more
comprehensive and more meaningful than ’ethics’. The best ethical values
and intentions are relatively meaningless unless they generate fair, just,
and observable behaviors in the workplace. Ethical conduct focuses on
demonstrated behavior doing, not just saying.
Develop a Code of Ethical Conduct.
The best way to handle ethical dilemmas is to avoid their occurrence in
the first place. The process involved in developing a code of ethical
conduct helps to sensitize employees to ethical considerations and
minimizes the likelihood that unethical behavior will occur.
Promote Process.
When it comes to managing ethics and, in particular, developing a code of
ethical conduct, the journey is just as important as the destination. Codes,
policies, procedures, and budgets are important. So, too, is the process of
reflection and dialogue that produces those deliverables. Where possible
use group decision making to actively involve participation in, and
ownership of , the final outcome.
Link Ethics to Other Management Practices.
The development of a code of ethical conduct should not occur in
isolation. The creation of a values statement, for example, should occur as
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Management with this process. Similarly, any discussion about personnel policies could
also reflect ethical values as they apply to the organization’s culture.
Demonstrate Ethical Practices.
The best way for an organization to gain a reputat ion for operating
ethically is to demonstrate that behavior the most important way to remain
ethical is to be ethical. And the best advertisement your ethics
management program can have is everyone’s commitment to it. Be
prepared for an increase in the num ber of ethical issues to be dealt with.
As staff becomes increasingly aware of the importance of ethics
management, it is to be expected that more issues will be identified. ’The
most damaging thing is for management to come out with a code of ethics,
or a value statement, and model a different type of behavior.’
Allocate Roles and Responsibilities.
The approach will vary according to the organization, but an appropriate
structure could include the following:
An ethics management committee, representing the entire organization,
with responsibilities to include implementing and administering an ethics
management program. The creation and monitoring of a code of ethical
conduct would be part of that overall program.
An ethics officer who ideally should be a se nior executive but not from
HR or the Legal Department. He or she must be trained in matters of
ethics in the workplace and have ultimate responsibility for managing the
program.
Demonstrated involvement and support of top management. Staff and
Board must see that senior management takes ethical conduct seriously.
Identify and Model Industry Benchmarks.
An increasing number of companies strive to match practices with
espoused values. The Soul of a Business, for example, is an account of the
way in which eth ical considerations guided the day -to-day operations of
the American company, Tom’s of Maine. One of the company’s stated
values was its commitment to the health of the environment. The
company, therefore, used glass containers instead of plastic, even tho ugh
plastic was cheaper to purchase, label, and ship. Tom’s of Maine was also
committed to supporting its regional economy. Only when it couldn’t
purchase a resource in its local area would Tom’s go farther afield. This
demonstrated commitment to espoused values contributed to the
company’s growth and profitability and inspired others to follow its lead.
7.4 FIVE SOURCES OF ETHICAL STANDARDS
The Utilitarian Approach
Some ethicist emphasize that the ethical action is the one that provides the
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Appraisal greatest balance of good over harm. The ethical corporate action, then, is
the one that produces the greatest good and does the least harm for all who
are affected customers, employees, shareholder s, the community, and the
environment. Ethical warfare balances the good achieved in ending
terrorism with the harm done to all parties through death, injuries, and
destruction. The utilitarian approach deals with consequences; it tries both
to increase th e good done and to reduce the harm done.
The Rights Approach
Other philosophers and ethicist suggest that the ethical action is the one
that best protects and respects the moral rights of those affected. This
approach starts from the belief that humans hav e a dignity based on their
human nature per se or on their ability to choose freely what they do with
their lives. On the basis of such dignity, they have a right to be treated as
ends and not merely as means to other ends. The list of moral rights -
includ ing the rights to make one’s own choices about what kind of life to
lead, to be told the truth, not to be injured, to a degree of privacy, and so
on is widely debated; some now argue that non -humans have rights, too.
Also, it is often said that rights impl y duties in particular, the duty to
respect others’ rights.
The Fairness or Justice Approach
Aristotle and other Greek philosophers have contributed the idea that all
equals should be treated equally.
Today we use this idea to say that ethical actions trea t all human beings
equally or if unequally, then fairly based on some standard that is
defensible. We pay people more based on their harder work or the greater
amount that they contribute to an organization, and say that is fair. But
there is a debate over CEO salaries that are hundreds of times larger than
the pay of others; many ask whether the huge disparity is based on a
defensible standard or whether it is the result of an imbalance of power
and hence is unfair.
The Common Good Approach
The Greek philo sophers have also contributed the notion that life in
community is a good in itself and our actions should contribute to that life.
This approach suggests that the interlocking relationships of society are
the basis of ethical reasoning and that respect an d compassion for all
others especially the vulnerable are requirements of such reasoning. This
approach also calls attention to the common conditions that are important
to the welfare of everyone. This may be a system of laws, effective police
and fire dep artments, health care, a public educational system, or even
public recreational areas.
The Virtue Approach
A very ancient approach to ethics is that ethical actions ought to be
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Management of our humanity. These virtues are dispositions and habits that enable us to
act according to the highest potential of our character and on behalf of
values like truth and beauty.
Honesty, courage, compassion, generosity, tolerance, love, fidelity,
integrity, fairness, self -control, and prudence are all examples of virtues.
Virtue ethics asks of any action, "What kind of person will I become if I
do this?" or "Is this action consistent with my acting at my best?"
Putting the Approaches Together
Each of the app roaches helps us determine what standards of behavior can
be considered ethical. There are still problems to be solved, however.
The first problem is that we may not agree on the content of some of these
specific approaches. We may not all agree to the sam e set of human and
civil rights.
We may not agree on what constitutes the common good. We may not
even agree on what is a good and what is a harm.
The second problem is that the different approaches may not all answer
the question "What is ethical?" in the same way. Nonetheless, each
approach gives us important information with which to determine what is
ethical in a particular circumstance. And much more often than not, the
different approaches do lead to similar answers.
Making Ethical Decisions
Making go od ethical decisions requires a trained sensitivity to ethical
issues and a practiced method for exploring the ethical aspects of a
decision and weighing the considerations that should impact our choice of
a course of action. Having a method for ethical de cision making is
absolutely essential. When practiced regularly, the method becomes so
familiar that we work through it automatically without consulting the
specific steps.
The more novel and difficult the ethical choice we face, the more we need
to rely o n discussion and dialogue with others about the dilemma. Only by
careful exploration of the problem, aided by the insights and different
perspectives of others, can we make good ethical choices in such
situations.
7.5 SELF ASSESSMENT QUESTIONS
1. Define the ter m Ethics. Trace the sources of ethics. Why is ethics
important?
2. Explain how to manage ethics at work place.

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8
TRAINING AND DEVELOPMENT
Unit Structure :
8.0 Objectives
8.1 Introduction
8.2 Meaning and objectives of training
8.3 Need and importance of training
8.4 Difference between Training and Development
8.5 Management Development Programme (MDP)
8.6 Essentials of Success of Management Development
8.7 Training Practices / Facilities in India
8.8 Process of Designing A Training Programme
8.9 Methods of Training
8.10 Techniques of Evaluation of Training
8.11 Summary
8.12 Questions
8.0 OBJECTIVES
After studying the unit student will be able to:
 Understand Meaning and nature of Training and Development
 Know the objectives of Training
 Study the needs and importance of Training
 Understand the concept of Training and Development
 Know Management Development Programme (MD P)
 Understand the requi sites for the Success of Management
Development Programme (MDP)
 Study Training Practices in India
 Make and evaluation of Training Facilities
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Human Resource
Management 8.1 INTRODUCTION
Training is an organised activity for increasing the knowledge and skills
of people for a definite purpose. It involves systematic procedures for
transferring technical know -how to the employees so as to increase their
knowledge and skills for doing specific jobs with proficiency. In other
words, the trainees acquire technical k nowledge, skills and problem
solving ability by undergoing the training programme.
8.2 MEANING AND OBJECTIVES OF TRAINING
 MEANING
According to Edwin B. Flippo, ― “Training is the act of increasing the
knowledge and skills of an employee for doing a partic ular job”. Training
involves the development of skills that are usually necessary to perform a
specific job. Its purpose is to achieve a change in the behavior of those
trained and to enable them to do; their jobs better. Training makes newly
appointed wor kers fully productive in the minimum of time. Training is
equally necessary for the old employees whenever new machines and
equipment are introduced and/or there is a change in the techniques of
doing the things. In fact, training is a continuous process. It does not stop
anywhere. The managers are continuously engaged in training their
subordinates.
They should ensure that any training programme should attempt to bring
about positive Changes in the (i) Knowledge, (ii) skills, and (iii) attitudes
of the workers. The purpose of training is to bring about improvement in
the performance of work. It includes the learning of such techniques as are
required for the better performance of definite tasks.
The main objective of training is to achieve a change in th e behaviour of
those trained. In the industrial situation, this means that the trainees
acquires new techniques skills, problems solving abilities and develop
proper, work attitude. The trainees apply the newly acquired knowledge
on the job in such a way a s to keep them in the achievement of
organisational goals and targets. Training is a necessary activity in all
organisations, It plays a large part in determining the effectiveness and
efficiency of the organisation. Training is must for all. A training
programme enables the trainee to achieve the reasonable level of
acceptable performance. To achieve improved performance and increase
in productivity, quality and profitability. Change Organisational climate
and culture, to improve health and safety and poss ibility and personal
growth and development.
Training generally is intended to provide training experiences that help
people perform efficiently in their present and future jobs. Training is a
process in which abilities are developed into specific required skills
knowledge or attitudes.
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Training and Development Thus managing the training process can go a long way towards enhancing
its effectiveness. If training programs are well conceived and well
executed, both the organisation and its employees benefit. A
comprehensive process h elps managers ensure that the objectives of the
training program are met.
Training enables the employees to get acquainted with jobs and also
increase, their aptitudes and skills and knowledge. It makes newly
recruited employees fully productive in the min imum of time. Even for the
old workers, it is necessary to refresh them and to enable them to keep up
with new methods and techniques as well as new machines and
equipments for doing the work. Thus, training is not a one -step process‘,
but it is a continuo us or never ending process because it increases the
knowledge and skills of new employees in performing their jobs and
serves as a refresher course for the old employees. Training job will never
be finished as long as the organization remains in operation. At any given
time, the different phases of training programme will be found at
practically every stage of progress. Men may be learning by their own
experiences and by trial and error methods. Training does not disappear
from any organisation merely becau se its presence is ignored. The purpose
of training is to bring about improvement in the performance of workers.
It includes the learning of such techniques as are required for the
intelligence performance of definite task.
There is a growing realisation a bout the importance of training in Indian
organisations, especially after globalisation. This has posed a lot of
challenges to Indian industries. Without efficiency, effectiveness and
competency, it would be impossible to survive and to be internationally
competitive, all out efforts are required. Quality innovation, technology
upgradation, cost reduction and productive work culture, have thus
become the slogans of every industry, which no organisation will be able
to achieve without continuously training i ts human resources. Justifiably,
therefore, there is an upward trend in investment in training in many
organisations. But increasing the investment in training and hiking
training budgets is not going to achieve desired results. There are certain
fundament als and basic in training which must be given due importance if
investments have to bring in returns.
NATURE OF TRAINING AND DEVELOPMENT:
Training is the most important component of Human Resource
Development (HRD) but HRD training is must in an organisati on which
aspires to grow must be in tune with the changing needs of the society.
Training becomes relevant in the context since it is only through training
that the gap between performance of the organization and the felt need of
a changing society can be neutralised Training reduces the gap by
increasing employees knowledge, skill, ability and attitude.
Training makes a very important contribution to the development of the
organisation‘s human resources and hence to the achievement of its aims
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Management managed so that the right training is given to the right people, in the right
form, at the right time and at the right costs. Following points explains the
nature of Training:
 The term training‘ indicates the process involved in improving the
aptitudes, skills and abilities of the employees to perform specific jobs.
Training helps in updating old talents and developing new ones.
 Training is a vital phase of management control. It helps in reducing
accidents, eliminating wastages and increasing, the quality of work.
 Training and Development are terms which are sometimes used
interchangeably. Development was seen as an activity associated with
managers, In contrast training has a more immediate conce rn and has been
associated with improving the knowledge and skill of non -managerial
employees in the present job.
 Training and development may be regarded interactive, each
complementing the other. The logical step for the organisation is to
produce a plan for human resource development (i.e. training and
development) which will dovetail into the employee resourcing plan (i.e.
selection) and the organisation’s overall strategic plan.
 Objectives of Training
The primary objective of training is to prepare emp loyees – both new and
old, for promotions to positions which require added skill and knowledge.
This means that the training may range from highly specific instruction as
to steps in the performance of a given job to very general information
concerning the economy and society. Therefore, it is necessary to establish
the goals of training very cautiously.
The objectives of training are as follows:
 To impart to new entrants the basic knowledge and skill they need for
an intelligent performance of definite ta sks;
 To assist employees to function more effectively in their present
positions by exposing them to the latest concepts, information and
techniques and developing the skills, they will need in their particular
fields;
 To build up a second line of competen t officers and prepare them to
occupy more responsible positions;
 To broaden the minds of senior managers by providing them with
opportunities for an inter -change of experiences within and outside with a
view to correcting the narrowness of the outlook tha t may arise from over
specialisation;
 To impart customer education for the purpose of meeting the training
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Training and Development In a nutshell, the objectives of training are to bridge the gap between
existing performance ability and desired performance.
 NEED AND IMPORTANCE OF TRAINING
Since training is a continuous process and not a one shot affair, and it
consumes time and entails much expenditure, it is necessary that a training
programme or policy should be prepared wi th great thought and care.
Moreover, it must guard against over - training, use of poor instructors, too
much training on skills which are unnecessary for a particular job,
imitation of other company training programmes, misuse of testing
techniques, inadeq uate tools and equipment, and overreliance on one
single technique for e.g., on slides, pictures on lecturers and not enough on
practice.
Following points explains the importance of training:
 Increasing Productivity: Instruction can help employees increas e
their level of performance on their present job assignment. Increased
human performance often directly leads to increased operational
productivity and increased company profit. Again, increased performance
and productivity, because of training, are most evident on the part of new
employees who are not yet fully aware of the most efficient and effective
ways of performing their jobs.
 Improving Quality: Better informed workers are less likely to make
operational mistakes. Quality increases may be in relatio nship to a
company product or service, or in reference to the intangible
organisational employment atmosphere.
 Helping a Company Fulfill its Future Personnel Needs:
Organisations that have a good internal educational programme will have
to make less drasti c manpower changes and adjustments in the event of
sudden personnel alternations. When the need arises, organisational
vacancies can more easily be staffed from internal sources if a company
initiates and maintains and adequate instructional programme for both its
non-supervisory and managerial employees.
 Improving Organisational Climate: An endless chain of positive
reactions results from a well -planned training programme. Production and
product quality may improve; financial incentives may then be increas ed,
internal promotions become stressed, less supervisory pressures ensue and
base pay rate increases result. Increased morale may be due to many
factors, but one of the most important of these is the current state of an
organisation‘s educational endeavou r.
 Improving Health and Safety: Proper training can help prevent
industrial accidents. A safer work environment leads, to more stable
mental attitudes on the part of employees. Managerial mental state would
also improve if supervisors now that they can bet ter themselves through
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Management  Obsolescence Prevention: Training and development programmes
foster the initiative and creativity of employees and help to prevent
manpower obsolescence, which may be due to age, temperament o r
motivation, or the inability of a person to adapt himself to technological
changes.
Personal Growth: Employees on a personal basis gain individually from
their exposure to educational experiences. Again, Management
development programmes seem to give par ticipants a wider awareness, an
enlarged skin, an enlightened altruistic philosophy, and make enhanced
personal growth possible.
It may be observed that the need for training arises from more than one
reason those are:
 An increased use of technology in pro duction.
 Labour turnover arising from normal separations due to death or
physical incapacity, from accidents, disease, superannuation, voluntary
retirement, promotion within the organisation and change of occupation or
job.
 Need for additional hands to cop e with an increased production of
goods and services.
 Employment of inexperienced, new or badli labour requires detailed
instruction for an effective performance of a job;
 Old employee need refresher training to enable them to keep abreast of
the changing methods, techniques, and use of sophisticated tools and
equipment;
 Need for enabling employees to do the work in a more effective way,
to reduce learning time, reduce supervision time reduce waste and
spoilage of raw material and produce quality goods, and develop their
potential.
 Need for reducing grievances and minimising accident rates;
 Need for maintaining the validity of an organisation a whole and
raising the moral of its employees.
8.4 DIFFERENCE BETWEEN TRAINING AND
DEVELOPMENT
Though training and educa tion differ in nature and orientation, they are
complementary. An employee, for example, who undergoes training, is
presumed to have had some formal education. Furthermore, no training
programme is complete without an element of education. In fact, the
distinction between training and education is getting increasingly blurred
now-a-days. As more and more employees are called upon to exercise
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Training and Development programmes seek to broaden and develop the i ndividual through
education. For instance, employees in well -paid jobs and or employees in
the service industry may be required to make independent decisions
regarding their work and their relationships with clients. Hence,
organisations must consider elem ents of both education and training while
planning their training programmes.
Training is the systematic modification of behavior through learning
which occurs as a result of education, instruction development and
planned experience. Training is the increa sing knowledge and skill of an
employee for doing a particular job; Training is a short term process
utilizing a systematic and organised procedure by which trainees learn
technical knowledge and skill for a definite purpose. Training is a process
of learn ing a sequence of programmed behavior. It implies application is a
process of learning a sequence of programmed behaviour. It implies
application of rules and procedures to guide their behaviour thereby
improve their performance.
Training is a systematic p rogramme to increase the knowledge, skills,
abilities and aptitudes of employees to perform specific jobs. Training is
concerned with increasing the knowledge and understanding of the total
environment. Development is concerned with the growth of an employ ee
in all respects. Development programmes seek to develop skills and
competence for future jobs while training programmes are directed toward
maintaining and improving job performance. Thus training is a process by
which the aptitudes, on the one hand ski lls, abilities of employees to
perform specific jobs are increased. On the other hand, education is the
process of increasing the general knowledge and understanding of
employees.
Development refers to those learning opportunities designed to help
employee grow. Development is not primarily skills -oriented. Instead, it
provides general knowledge and attitudes which will be helpful to
employees in higher positions. Efforts towards development often depend
on personal drive and ambition. Development activitie s, such as those
supplied by management development programmes are generally
voluntary.
8.5 MANAGEMENT DEVELOPMENT PROGRAMME
(MDP)
Management development programmes, aim systematically to identify
talent, improve skills, widen experience and help people to grow in their
ability to accept greater responsibility.
The subject matter of a course for Management Development Programme
(MDP) may comprise:
 Company or Organisation:
The Management Development Programme (MDP) relating company or
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Management  Objective and philosophy of company;
 Policies, procedures and practices of an organisation;
 Products and services;
 Organisational structure and organisation dynamics;
 Plant facilities;
 Financial aspects such as investment plannin g, financial planning and
control capital budgeting;
 Labour management relations etc.
 Management Techniques and Principles:
Under this main area the following sub -areas may be included:
 Organisation principles;
 Financing, planning and management;
 Cost anal ysis and control;
 Operations research and data processing;
 Marketing management, Marketing research;
 Production planning and control;
 management and administration;
 Decision -making.
 Human Relations:
In this constituent the below mentioned sub -areas may be included:
 Motivation;
 Understanding human behaviour;
 Group dynamics;
 Discipline;
 Complaints and grievances;
 Collective bargaining;
 Counseling and suggestion scheme;
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Training and Development  Attitudes, training and development;
 Job evaluation and p erformance appraisal;
 Labour economics;
 Supervisory responsibilities.
 Technical Knowledge and Skills:
Under this main area the following sub -areas may be included:
 Computer technology;
 PERT/CPM;
 Linear programming;
 Materials handling;
 Inventory control;
 Adequate understanding of technology, products, processes.
 Personnel Skills:
It contains the following sub -areas:
 Speaking;
 Report writing;
 Conference leadership;
 Learning through listening;
 Reading improvement.
 Economic, Social, and Political Environment:
It contains the following sub -areas:
 Business;
 Economic system;
 Relations with the state;
 Community relations;
 Political systems;
 Legal framework of business;
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Management 8.6 ESSENTIALS OF SUCCESS OF MANAGEMENT
DEVELOPMENT
PROGRAMME :
While administering the programme, we should have to give the following
considerations:
 Systematic Career Planning:
A Management Development Programme should support a systematic
career planning for managerial personnel otherwise the frustrated trainees
might seek opportunities elsewhere and the whole investment made in
training programmes would go waste.
 Structured Course:
Management Development must follow a series of structured courses.
There should also be an active interaction be tween the trainees and
management.
 Indiscriminate Approach:
The training programme should cover as far as possible, every manager,
capable of showing potential for growth. It should be free from
discrimination. Peter Drucker pointed out that the right men out of every
ten who were not included in the programme will understandably feel
slighted. They may end of by welcoming less effective, less productive,
less willing to do new thing.
 Properly Planned:
The entire programme should be properly planned. The tr ainee should
take part in it. An individual may stay out, but it should be made clear that
he does so at some risk to his future promotion. The company should not
normally allow any manager to opt out of a training programme.
Essentials of Success of Manag ement Development Programme
(MDP) :
The following are the essentials for the success of Management
Development Programme (MDP):
 Circulate the Materials to Participants:
The following materials should be distributed among the participants to
make the progra mme more successful:
 News letter conveying information about corporate affairs;
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Training and Development  Excerpts from well -written and informative articles; Copies of minutes
of meeting distributed among those who were not present.
When these materials are discussed by a group, new plans and improved
procedures will be formulated.
 Programme should be prepared well in advance:
The programme should be prepared well in advance and should contain
decisions about instructional methods and development approaches to be
used and have a provision of expertise and the necessary support system.
It should be based on the policy of promoting a proper utilisation of
trained executives, their knowledge and techniques in the improvement of
the operati ons of an organisation.
 Training division should have smart and successful executives:
The training division should not be a dumping ground for people found to
be unsuitable for other jobs; it mannered by a group of smart and
successful executives drawn fr om various functional areas and disciplines.
A multi -disciplinary approach should be emphasised in training
programmes rather than the purely personal favour that is often found in
them.
 Programme should be for all not the weak ones:
A management programme should not only be looked upon as something
meant for the limping horses in the organisation; it should be for the high
fliers as well. In view of knowledge explosion and the consequent threat
of management obsolescence, such programmes should be meant fo r
everyone in an organisation and not just for the weak ones.
 Management Development Programme (MDP) should be based on
a definite strategy:
The MDP should be based on a definite strategy, which should spell out
the type, coverage and objectives of the pro gramme. The multitier
supervisory and management development programme should start from
the first line supervisor and go all the way up to the top management.
 Top Management should Accept Responsibility:
The top management should accept responsibility for getting the policy of
development executed. To do so, a senior officer may be placed in charge
to initiate and implement the MDP.
 Management Development is a “Line Job”:
It is essentially a line job. It takes place on the job and involves both the
man an d his boss.

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Management  Selection of the Right Materials:
Management development starts with the selection of the right materials
for managerial ranks. It is essential to ensure that really good material is
led into the programme at the entry level.
 Realistic Time T able is Required:
There should be realistic time table in accordance with the needs of a
company. This time table should take into account the needs for
managerial personnel over a sufficiently long period and the resources
which are available and which wi ll be required.
 It should fulfill the needs of the Company:
Management development must be geared to the needs of the company
and the individual.
 Developing Managers is the Responsibility of All Managers:
Every manager must accept direct responsibility fo r developing managers
under his control on the job, and a high priority should be given to his
task.
Thus, for the development of management, it is essential for the top
management to promote a culture for:
 learning and gaining knowledge
 the quest of excel lence
 tolerance of mistakes
 striving to maintain a balance and an equity
 the discovery of self and others; and
 enabling a subordinate to become aware of his superiors’ interest in
his development and mental growth.
8.7 TRAINING PRACTICES / FACILITIES IN IN DIA
Different types of training facilities available in India, are as follows:
 Worker’s Training: This type of training had become very popular
after the world war II. But the real progress in the direction was made. The
following type of training are give n to the workers in our country:
 Apprentice Training Act, 1961: During 1961 the Apprentice Training
Act was passed. About 550 Industrial Training Institutes were opened.
More than 300 centres were set up established for Apprenticeship
Training. There is an Advanced Training Institute in Chennai and Kolkata
has the Central Staff Training and Research Institute. There is the
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Training and Development Employment and Training, Government of India had established Training
Centres under Craftsman Training Scheme. The National Apprenticeship
Training Scheme was extended to other industrial houses also. Child
Training Schemes were developed under Apprenticeship Scheme and now
this has been extended to many new works.
 Private Se ctor: Normally the private sector has not introduced any
formal training programme to its workers. But many business organisation
have an induction programme to their new workers aimed at informing
and educating them about the company, its products policie s and
management, etc. These programmes are generally conducted by their
personnel department with the help of the supervisory staff. Now, may
well- established private firms are conducting programmes in company
based on their workers’ needs and job requir ements.
 Public Sector Undertakings: The public sector companies use their
internal training facilities for training their non supervisory employees. In
some cases, employees are also encouraged to avail of the external
training facilities. Sometimes they s ponsor their candidature and meet the
costs also.
 Supervisors Training
 General Education: Normally supervisors are recruited either by
promotion from ranks or by direct recruitment. The latter is the more
widely followed practice in our country. But promot ion from ranks is
more common in western countries. Illiteracy and poor educational
background very much limit the possibility of promotion to supervisory
jobs from the ranks in India. The problem of supervisory training has,
therefore, to be talked at the root and in order to bridge the gap between
the potentiality of a worker for supervisory work and the post itself the
level of general education needs to be raised. Many organisation have
successfully undertaken training of junior and senior hands in
Math ematics, Elements of Sciences etc. through regular routine classes
during working hours.
 Training Institutes: The Central Training Institute for Instructors has an
additional course meant for supervisors which covers meant for
supervisors which covers non -technical subject such as leadership,
foundations for good relations, handling of problems, induction of new
entrants, effective communication, and so on. Some institutes of new
entrants, effective communication, and so on. Some institutes particularly
Small Industries Service Institute, NITE etc., organise short -term training
programme for supervisors.
 Training within Industry (TWI) : Training Within Industry was
formally introduced in India with the help of ILO experts. Many
organisation, both in public a nd private sectors, have had persons trained
by TWI Centre staff, so that they undertake supervisory training in their
respective organisations. These programmes have had mixed results. The
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Management super visors, and have not been led into complacency by the simplicity of
TWI have obtained highly successful results and the programmes.
 Management Training :
The management training and development has attracted the greatest
attention of both practicing manage rs and academicians in this field. This
is due to the fact that management has every much lagged behind the
imperative demand of the country. The major gap in the developing
countries is managerial competence has to be homegrown to suit the ethos,
temper a nd needs for our society.
There are two types of facilities for training development of practicing
managers:
 Business Organisation: These organistions are employing managerial
personnel to impart such training either through their own Management
Training i nstitutes or through organising lectures, instructors being their
own line and staff managers or faculty being taken from outside in some
cases. These organisations recruit fresh management trainees. They are
put through training process while working in t he organisation, Hindustan
Machine and Tools Ltd., Hindustan Steel Ltd., LIC, Commercial Banks,
Fertilizer Corporations and many other organisations in public sector
Hindustan lever Ltd. TISCO, Reliance Ltd. and others in private sector
have their own Mana gement Training Institutes.
 Management Institutes: There are many management institutes,
associations and other bodies which organise short -term management
development programmes. Prominent among these are Administrative
Staff College, Hyderabad, IIMs., Al l India Management Association, and
its local chapters, National Productivity Council, Indian Institute of Bank
Management. Indian Institute of Personnel management, National Institute
for Training in Industrial Engineering (NITIE). These bodies organised
management development programmes ranging from 2 days to 12 weeks.
8.8 PROCESS OF DESIGNING A TRAINING
PROGRAMME :
Training programmes are costly propositions. They are time and energy
consuming too. Hence, the training programmes should be framed with
great care and caution. The following steps should be taken while
developing a training programme. These steps usually involve a
considerable amount of dialogue between personnel department
professionals and other supervisors and managers. Ordinarily, the flow s or
sequences of these steps are approximately as follows but the various
steps are independent and in some cases may be done simultaneously.
 Determining the need and Priorities for Training:
The very first step in designing a training programme is to det ermine the
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Training and Development accurately determine its need, the training process will be inappropriately
undertaken.
Mc-Guhee and Thayer have recommended the following three steps
approach in order to dete rmine training need:
 Organisational Analysis: This analysis basically determines where
training emphasis should be placed in the organisation.
 Man Analysis: It is used to determine who needs training and what
skills and knowledge or attitudes should be aug mented or improved.
 Operational Analysis: It assists to decide what the training should
consist of, requiring a study of what a person should be taught if he is to
perform his task with maximum effectiveness.
Some of the popular methods to assess the train ing needs of employees in
a company include observation and analysis of job performance. In each
company, the management should analyse organistation needs, job
specifications and the present skill levels of the employees. The analysis
of organisational ne eds should focus on the number of employees with
various combinations of skills needed at each level and in every part of the
firm for specific periods. Regarding job specifications, many organisations
have written job specifications that define the skills needed for each job in
the firm. By carefully examining these specifications, the human resources
staff can obtain a clear idea of the nature of skills needed for each job.
Then, an analysis of worker skills and qualifications from his personal file
can a ssist in determining training needs. Similarly training needs can be
assessed for a group of employees.
Translating needs into Objectives and Establishing Training Goals:
Once the training needs have determined, the next important step is to
translate the skills needed into specific training objectives or desired
outcomes of training objectives. These training objectives or goals are
then used to determine the specific courses that will be offered. Training
objectives should include such matters as specific skills to be taught, the
number of people to be trained and from which units and the period within
which such training should take place. Objectives for training programme
that do not relate directly to specific job skills should also be considered
for ex ample, employee health and safety guidelines, promotion
opportunities and self -study opportunities. Training objectives include the
general content of the training to be given. The most frequently adopted
objectives or training subjects by the companies ar e: new employee
orientation, performance appraisal, leadership, selection process,
interpersonal skills, word processing, new equipment operation, team
building, delegation skills, and listening skills. Sometimes, orientation
regarding company policy a nd practices can be particularly important,
especially for new employers.
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Management  Selecting Trainees:
Selecting individuals or groups for training is a very complex decision for
the firm and the individuals chosen. From the firm‘s perspective,
providing the right training to the right people can help to create and
maintain a well -trained and stable work force. To impart training for
individuals with limited performance partial or lack of interest is simply a
waste of time, effort, and money. Overlooking individual s with ambition
and potential represents a lost opportunity and can contribute to higher
employee turnover. It should be assumed that ambition and potential are
widespread in the firm and exist at all age levels. There are at least four
important considera tions important in selecting trainee: (i) legal
requirements and formalities (ii) employee needs and motivation (iii)
skills obsolescence and retraining, and (iv) multi -skilling. Employee needs
and motivation can be determined with the help of previous pe rformance
evaluations as well as interviews performance evaluations as well as
interviews with individual employees and owner supervisors. The rapidly
change in technology is requiring that all segments of the society give
higher priority to worker retrain ing. This also means that individual
workers themselves must seek out training opportunities to avoid having
their skills become obsolete. Similarly, numerous companies have moved
in the direction of training their employees to have multiple skills, called
multi -skilling. In particular, multi -skilling is relevant where self -managed
teams are utilised. Everyone is encouraged to learn all of the jobs of the
team and employees are usually paid according to the number of skills that
they have developed.
 Making the Curriculum and Choosing Training Methods:
After deeming training objectives and translating into specific course
areas, the trainees are identified and evaluated, management will be in a
position to decide the overall curriculum, i.e., the arrangement of courses
to be offered. The curriculum is a sort of grand plan of what training is to
be presented and with what frequency. However, a part which must be
added to this grand plan is the matter of training methods. Will the
training be on the job, off th e job, prior to employment, or prior to a
formal assignment? Will it be done by lecture computer assisted, or
carried out by some other method? Will it be long -term or short -term?
 Preparation of training budget:
Preparing a training budget will be an inter active process with the other
steps in formulating a training program. Budget constraints may limit the
human resource manager’s alternatives and must, therefore, considered
during all phases of the development process. Costs that must be included
in the t raining budget are: staff planning time, trainees’ wages, trainers’
salary, and expenses such as cost of training materials, travels,
accommodations, and meals. If the desired training programme does not
fit within budget constraints, the human resourc e manager must consider
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Training and Development  Selecting trainers and providing training to trainers:
An effective training programme can be developed only when effective
trainers are available. Firms have the option of using staff trainers or of
seeking contract trainers outside, or of having both, types of trainers. Staff
trainers may be full -time specialists on the pay role of organisation or may
be part -time trainers. After their selection, they must be provided with the
information regarding the persons who are to be strained. The trainers
should be engaged after careful evaluation of their suitability and
effectiveness so as to ensure quality training.
 Using selected training technique.
To conduct the training is a significant aspect of training process. Under
this step, the trainers speaks, demonstrate, and illustrates in order to put
over the new knowledge, skills, and operations. Besides, he suggests t he
trainee to be at ease, without any stress and strain, and explains to him the
necessity of the training programme and creation of trainee’s personal
interest in training. The trainer tells the sequence of the entire job, the
need for each step in the jo b, the relationship of the job to the total work -
flow, the nature of interpersonal behaviour required at the job, and so on.
All key points should be covered and emphasised. Audio - visual aids
should be used to demonstrate and illustrate. To ensure follow -up by the
trainee, he should be asked to repeat the operations, and encouraged to ask
questions for further classifications and understanding.
 Performance or learning tryout:
As the training continues, it is important that the progress of trainees
should be monitored. This may be accomplished by periodic skill or
knowledge tests or periodic assessments by the personnel department. The
trainee may be asked to do the job several times. His mistakes, if any, are
corrected and complicated steps should be expla ined again. As soon as the
trainee demonstrates that he can do the job rightly, he is put at his own job
and the training is said to be over.
 Evaluation system of training programme:
In order to generate adequate feedback, some key purposes of conducting
this evaluation are:
 Determining whether a programme meets its objectives or goals.
 Identify strengths and weaknesses in the training process.
 Calculate the cost -benefit ratio of a programme.
 Determine who benefited the most from a programme and why
 Establi sh a data base for further decision about the programme.
Training programmes can be evaluated with a variety of methods. The
most popular method involves analysis of questionnaires filled out by the
trainees either at the end of the training session or wi thin a few weeks.
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Management of the training programme, in other situations their subsequent
performance or degree of improvement is a more valid measure. After
specific performance measurement , the results are compared with the
objectives for the training programme. If the training objectives have
been met, the training is said to be successful.
8.8 METHODS OF TRAINING
The following methods are generally used to provide training:
 On-the-Job T raining Methods:
This type of training is imparted on the job and at the work place where
the employee is expected to perform his duties. It enables the worker to
get training under the same working conditions and environment and with
the same materials, m achines and equipments that he will be using
ultimately after completing the training. This follows the most effective
methods of training to the operative personnel and generally used in most
of the individual undertaking.
 On Specific Job: On the job trai ning methods is used to provide
training for a specific job such as electrician, motor mechanic, pluming
etc.
 Experience: This is the oldest method of on -the-job training. Learning
by experience cannot and should not be eliminated as a method of
developmen t, though as a sole approach, it is a wasteful, time consuming
and inefficient. In some cases, this method has proved to be very efficient
though it should be followed by other training methods to make it more
meaningful.
 Coaching: On-the-Job coaching by t he superior is an important and
potentially effective approach is superior. The technique involves direct
personnel instruction and guidance, usually with extensive demonstration.
 Job Rotation: The major objective of job rotation training is the
broadening of the background of trainee in the organisation. If trainee is
rotated periodically from one job to another job, he acquires a general
background. The main advantages are: it provides a general background to
the trainee, training takes place in actual si tuation, competition can be
stimulated among the rotating trainees, and it stimulates a more co -
operative attitude by exposing a man to other fellow problem and view -
points.
 Special Projects: This is a very flexible training device. The trainee
may be aske d to perform special assignment; thereby he learns the work
procedure. Sometime a task -force is created consisting of a number of
trainees representing different functions in the organisation.
 Apprenticeship: Under this method, the trainee is placed under a
qualified supervisor or instructor for a long period of time depending upon
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Training and Development those paid to qualified workers. This type of training is suitable in
profession, trades, crafts and tech nical areas like fitter, turner, electrician,
welders, carpenters etc.
 Vestibule Training: Under this method, actual work conditions are
created in a class room or a workshop. The machines, materials and tools
under this method is same as those used in act ual performance in the
factory. This method gives more importance to learning process rather
than production.
 Multiple Management: Multiple management emphasizes the use of
committees to increase the flow of ideas from less experience managers
and to train them for positions of greater responsibility. The McCormick
& Company of Baltimore, U.S.A. developed the programme. The
company claims that the plan has increased employee efficiency, reduced
labour turnover and absenteeism, and enabled the company to pay higher
wages than those prevailing in the area and industry. In this method; a
junior board authorized to discuss any problem that the senior board may
discuss, and its members are encouraged to put their mind to work on the
business a whole, rather than too concentrate to their specialized areas.
 Off-the-job Training Methods
Following are the off the job training techniques:
 Special Courses and Lectures: Lecturing is the most traditional form
of formal training method Special courses and lectures can be established
by business organizations in numerous ways as a part of their
development programmes. First, there are courses, which the
organizations themselves establish to be taught by members of the
organizations. Some organizations have regular instructo rs assigned to
their training and development such as Tata and Hindustan Lever in
private sector; Life Insurance Corporation. State Bank of India and other
nationalized commercial banks, Reserve Bank, Hindustan Steel, Fertilizer
Corporation and many others in public sector. A second approach to
special courses and lectures is for organizations to work with universities
or institutes in establishing a course or series of course to be taught by
instructors by these institutes. A third approach is for the orga nizations to
send personnel to programmes established by the universities, institutes
and other bodies. Such courses are organized for a short period ranging
from 2 -3 days to a few weeks.
 Conferences: This is also an old method, but still a favorite traini ng
method. In order to escape the limitations of straight lecturing many
organizations have adopted guided, discussion type of conferences in their
training programmes. In this method, the participants pools, their ideas
and experience in attempting to arr ive at improved methods of dealing
with the problems, which are common subject of discussion; Conferences
may include buzz sessions that divide conferences into small groups of
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Management the w hole conference with their conclusions or questions. Conference
method allows the trainees to look at the problem from a prouder angle.
 Case Studies: This technique, which has been developed, popularized
by the Harvard Business School, U.S.A is one of the most common form
of training. A case is a written account of a trained reporter of analyst
seeking to describe an actual situation. Some causes are merely
illustrative; others are detailed and comprehensive demanding extensive
and intensive analytical abil ity. Cases are widely used in variety of
programmes. This method increases the trainee power of observation,
helping him to ask better questions and to look for broader range of
problems.
 Brainstorming: This is the method of stimulating trainees to creativ e
thinking This approach developed by Alex Osborn seeks to reduce
inhibiting forces by providing for a maximum of group participation and a
minimum of criticism. A problem is posed and ideas are invited. Quantity
rather quality is the primary objective. Id eas are encouraged and criticism
of any idea is discouraged.
Chain reactions from idea to idea often develop. Later these ideas are
critically examined. There is no trainer in brainstorming and it has been
found that the introduction of known experts into it will reduce the
originality and practicability of the group contribution, Brainstorming
frankly favours divergence, and this fact may be explained why
brainstorming is so little used as yet in developing countries where no
solutions ought to carry the h ighest premium.
 Laboratory Training: Laboratory training adds to conventional
training by providing situations in which the trains themselves experience
through their own interaction some of the conditions they are talking
about. In this way, they more or less experiment on themselves.
Laboratory training is more concerned about changing individual
behaviour and attitude. There are two methods of laboratory training:
simulation and sensitivity training.
 Simulation:
An increasing popular technique of managem ent development is
simulation of performance. In this method, instead of taking participants
into the field, the field can be simulated in the training session itself
Simulation is the presentation of real situation of organisation in the
training session. It covers situations of varying complexities and roles for
the participants. It creates a whole field organisation, relates participants,
through key roles in it, and has them deal with specific situations of a kind
they encounter in real life.
There ar e two common simulation methods of training:
 Role -playing: Role -playing is a laboratory method, which can be used
rather easily as a supplement of conventional training methods. Its
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Training and Development its greatest use, in connection with human relations training, but it is also
used in sales training as well. It is spontaneous acting of a realistic
situation involving two or more persons, under classroom situations.
Dialogue spontaneously grows out of the situation, as the trainees
assigned to it develop it. Other trainees in the group serve as observers or
critics. Since people take rules even day, they are somewhat experienced
in the art, and with, a certain amount of imagination they can protect
themselves into roles other than their own. Since a manager is regularly
acting roles in his relationship with other it is essential for him to have
role awareness and to do role thinking so that they can size up each size
up each relationship and develop t he most effective interaction position.
 Gaming: Gaming has been devised to simulate the problems of
running a company or even a particular department. It has been used for a
variety of training objectives from investment strategy, collective
bargaining tec hniques to the morale of clerical personnel. It has been used
at all the levels, from the executives for the production supervisors.
Gaming is a laboratory method in which role -playing exists but its
difference is that it focuses attention on administrativ e problems, while
role-playing tend to emphasis mostly feeling and tone between people in
interaction. Gaming involves several terms, each of which given a firm to
operate for a number of periods. Usually the periods is short one year or
so. In each period , each -team makes decisions on various matters such as
fixation of price, level of production inventory level, and so forth.
 Sensitivity Training:
Sensitivity training is the most controversial laboratory training method.
This method is about making people understand about themselves and
others reasonably, which is done by developing in them social sensitivity
and behavioral flexibility.
Social sensitivity in one word is empathy. It is ability of an individual to
sense what others feel and think from their own point of view. Behavioral
flexibility is ability to behave suitably in light of understanding.
Training is essential for the smooth, economic, timely and efficient
production, work or service in any organisation. To get work
accomplished well from a wo rker or employee, it is a must that he is given
proper training in methods of work. Training is the organized producer by
which people learn knowledge and skill for a definite purpose
management cannot make a choice as between ‘training’ or ‘ no training’.
On the other hand, it is a must. The only choice lies in the method of
training.
8.9 TECHNIQUES OF EVALUATION OF TRAINING
Several techniques of evaluation are being used in organisations.
 Evaluation by using experimental and control groups: One
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Management Each group is randomly selected, one to receive training (experimental)
and the other not to receive training (control).
The random selection helps to assure the formation of groups quite simila r
to each other. Measures are taken of the relevant indicators of success
(e.g. words typed per minute, quality pieces produced per hour, wires
attached per minute) before and after training for both groups. If the gains
demonstrated by the experimental gr oup are better than those by the
control group, the training programme is labeled as successful.
 Longitudinal or time -series analysis: Another method of training
evaluation involves longitudinal or time series analysis. Measurements are
taken before the pr ogramme begins and are continued during and after the
programme is completed. These results are plotted on a graph to determine
whether changes have occurred and remain as a result of the training
effort. To further validate that change has occurred as a r esult of training
and not due to some other variable, a control group may be included.
 Sending questionnaire to the trainees after the completion of the
programme: One simple method of evaluation is to send a questionnaire
to the trainees after the complet ion of the programme to obtain their
opinions about the programme‘s worth. Their opinions could also be
obtained through interviews. A variation of this method is to measure the
knowledge and/or skills that employees possess at the commencement and
complet ion of training. If the measurement reveals that the results after
training are satisfactory, then the training may be taken as successful.
In order to conduct a thorough evaluation of a training programme, it is
important to assess the costs and benefits associated with the programme.
This is it difficult task, but· is useful in convincing the management about
the usefulness of training.
8.10 SUMMARY
The challenges associated with the changing nature of work and the
workplace environment requires training. Rap id change requires a skilled,
knowledgeable workforce with employees who are adaptive, flexible, and
focused on the future. It is the responsibility of any business concern is to
develop its staff as per the changing environment. The Philosophy of
Human Re sources Management states that the development of human
resources is possible only by providing adequate training.
Training and development refers to the practice of providing training,
workshops, coaching, mentoring, or other learning opportunities to
employees to inspire, challenge, and motivate them to perform the
functions of their position to the best of their ability and within standards
set by local, state, Tribal, Federal and licensing organization guidelines.
Training and development activities pro vide all involved system of care
parties with the tools they need to develop professionally, increase their
knowledge, effectively work with families, and build their capacity to
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Training and Development 8.11 QUESTIONS
1. Define Training and Development. What is the difference between
Training and Development?
2. Examine the objectives, need and purpose of training.
3. What are the requisites for the success of MDP?
4. Elaborate the different methods generally used for tra ining of the
employees.
5. Examine the techniques of evaluation of training prorammes.
6. Write short notes:
i. Nature of Training
ii. On-the-job training
iii. Off-the-job training
iv. Simulation

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9
MANAGEMENT OF ORGANIZATIONAL
CHANGE
Unit Structure
9.0 Objectives
9.1 Introduction
9.2 Concept of Organizational Change
9.3 Forces of Organizational Change
9.4 Why do people resists Organizational Change
9.5 Practice of Managing Resistance to Organizatio nal Change
9.6 Organizational Development
9.7 Practice of Organizational Development
9.8 OD Interventions
9.9 Summary
9.0 OBJECTIVES
After studying the unit student will be able to:
 Undersand what is Organizational Change
 How to manage Organizational Chang e
 Strategies to overcome the resistance to change
 The importance of continuous efforts towards OD
 Analytical insight related to application of OD interventions
9.1 INTRODUCTION
Change is called the law of life. It is constant, inevitable and consistent. I n
every walk of human life, we witness many changes. Uncertainty and
complex nature of businesses due to growing competition and customers
expectation, compelling organizations to introduce changes. Manager’s
job is becoming difficult and challenging. If c hange is introduced, it is a
tendency of a human being to resist change. They think of losing
something.
Proper planning, communication and implementation is required to
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Management of
Organizational Change dealing with organizat ional change. Change management is a process in
which the changes are introduced in a planned and systematic way in an
organization.
Dealing with the change involves the perspective of an organization as
well as an individual. Predefined models are proved to be helpful in
successfully implementing change in an organization.
When a manager plans for change, communicate the need of change to the
people, assure them about the positive aspects of change and implement
the same with the support of the people. Th is process is called change
management. It is like managing those things which are inevitable,
consistent and create fear in the mind of the people. The concept of
change management plays a vital role in any organization. The task of
managing change is not an easy task.
Standardized methods, strategies and processes that are beneficial to bring
change are used by the managers for the successful implementation of
change in an organization. It is important to communicate the need for
change. Introducing chang e is a problem and communication of the need
for change and its successful implementation later on is the solution.
Change management deals with the people's side of the change.

Fig. 9.1 Conceptual Framework of Change Management
It is important to unders tand the three important elements of change
management:
 Change must be planned in advance.
 It must be communicated in advance.
 One must implement the change by involving needs.
One more important dimension is the need for change. Change is going to
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Management the change is communicated clearly, the people will adopt it freely.
Though, there will be few who will resist change.
9.2 ORGANIZATIONAL CHANGE
Change is inevitable in nature. This is t he common line used to introduce
the concept of change. Change is something which denotes a transition
from one state to another. The fact of being replaced or changed creates
fear in the mind of the people. In an organization, translating change into
an action is challenging if it is not communicated properly. People feel
change is a never ending process where responses to it will be in the form
of readjustment or readaptation.
It is introduced in an organization to make structural adjustments, project,
initiative or solution to improve the way of work. Planned change is
something an organization should introduce. Planned change reflects
proper understanding of the need for change and communication to the
people. The purpose is to change employee behavior t owards change in a
positive way and to improve the ability of the organization to adapt
changes in the new environment. It is not that easy to introduce change.
People resists due to many reasons. That’s why, management of change is
a concept which one mus t understand as far as the organizational
perspective is concerned.
9.3 NATURE OF ORGANIZATIONAL CHANGE
To understand the concept of change management, it is important to know
the nature of change management. With the help of the diagram given
below, one c an understand the nature of management of change:

Fig. 9.2 Nature of Organizational Change
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Management of
Organizational Change 9.4 WHY DO PEOPLE RESIST CHANGE?
Change is inevitable in nature. Although, people resist change. There may
be numerous reasons as human behavior is caused. Wha tever we do, there
is a reason behind that. Resistance to change can be a source of functional
conflict. Some evidence of resistance to change is very destructive. To
further understand this topic, the reasons for resistance to change are
divided into two categories.

Fig.9.3 Why do People Resist Change
 Organizational Resistance
The main reason people resist change is uncertainty of its impact. The
organizational structure itself also resists change. Every kind of change
involves resistance to change. Le t's have a look on the reasons of
organizational resistance to change:


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Management  Organizational Inertia
Making significant internal changes in the face of external changes is
known as organizational inertia. It depends upon the organization's ability
to make changes. People react when they feel the changes are occurring
gradually. On the basis of their past experience, they resist change.
 System Relationships
It is one of the important features of change that one change brings
another change. It has a domino effect. Due to the changes which arise in
one subsystem lead to changes in other subsystems also. The change in
one department may bring the change in another department as well.
That's why organizations resist chang e.
 Lack of Clarity
When organizations lack clarity about the incidence and gravity of
change, they resist. The organizational structure itself also resists change.
Most changes have the power to disrupt things. Lack of clarity brings
more confusion and fea r about the change.
 Sunk Costs and Vested Interest
Sunk costs are those costs which are used in investments. Investments in
fixed assets like machinery, land and building are treated as sunk costs.
Any new change can create a disruption in his system. V ested interests of
an individual involve commitment of an individual towards resources,
programmes, policies of the organization. Organizations resist change
when the things related to abandonment arise.
 Structural Rigidness
Organizations resist change due to structural rigidness also. Many changes
have the capacity to disrupt the structural rigidness. It affects the power
structure as well. Decentralization of authority can be often seen as threats
to the power of superiors when it comes to delegation and granting power
is concerned.
 Individual Resistance
Individuals resist change due to multiple factors. The main factor which is
considered is fear. They fear losing power, status, responsibilities and
post.
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Fig.9.5 Reasons of Individual Resistance
 Fear
The most common reason for people resisting change is fear. Fear of the
unknown, uncertainty and ambiguity are some of the reasons. Fear of
learning something new is also one of the reasons that compel people to
resist change.
 New Learning
New learning i s also one of the reasons. New learning requires effort and
energy. For doing new work and tasks, one requires to learn new methods,
a new technology etc. learning something new can be exciting if a person
is willing to learn. Few people may find it unattr active to learn and that's
why they resist change.
 Lack of Trust
The relation between management and labor is a sensitive one. Labor if
not communicated properly about the change may suspect the reason for
change and try to oppose the decision taken in fav or of the change against
the management. Lack of trust is also considered as one of the reasons.
 Habits
Human beings are slaves of habit. Changes create challenges for the
people who believe in routine work and do not like the concept of
newness. Rapid cha nges in organizations can disturb the routine of their
work nature. Such people find resistance easy rather than accepting
change.
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Management  Lack of Information
Providing information about the change is a fundamental step of
introducing change. Lack of information a bout the change can create fear
of the unknown and it can disrupt the stable relationships and work culture
of the same to organizations.
9.5 PRACTICES OF MANAGING RESISTANCE TO
ORGANIZATIONAL CHANGE
Managing resistance to change is a key to management of cha nge.
Through the following ways, an organization can effectively manage
resistance of change:

Fig. 9.6 Management of Resistance of Change
 Participation
Taking participation of employees in the change process can help
organizations and managers to impleme nt change. It is observed that
individuals find it difficult to resist a change in decision in which they
participate. It can involve all employees and those employees who resist
change. They can be brought into the decision process.
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Management of
Organizational Change  Communication
Communic ation is the best way to bring change. Communication is a
powerful force for change in ambiguous situations. Giving communication
about the need for change is an effective tool to facilitate change.
Communicating the process of change to employees helps th em to accept
change.
 Coercion
This can be taken as the last resort to implement change. After taking into
consideration all the measures, as a last tactic organization can apply
direct threats on the resisters to make them understand and accept the
change. Coercion in the form of demotion, transfer, loss of promotion,
ineffective performance appraisal can be used against the resistor.
 Facilitation
Facilitating change is an easy process to make employees understand the
gravity of change. Providing empathy to those employees who have
trouble in dealing with change is another important strategy. Managing
change through facilitation is a kind of help extended to the person who is
facing trouble in accepting change.
 Support
One of the important strategies for man aging resistance to change is
providing support to the employees. The persons who are facing trouble in
accepting change, they must be provided proper and needed support like
skill training, knowledge about the work, counseling and therapy etc.
 Co optation
Co optation means an act of co optating something in order to take over
something. The people who resist are invited to get their endorsement
regarding change. The technique of co optation is less expensive and
simple. Through this method, a manager can s eek the support of the
resistors in an organization. They are being tricked for undertaking
change. Manipulation and co optation covert attempts to influence.
 Education
Providing details to employees about the change and its need is one of the
best methods to manage resistance to change. Employees can be educated
about the change. Methods like discussions, memos, notices, groups
discussion can be used to educate the employees about the change and its
nature.
9.6 ORGANIZATIONAL DEVELOPMENT
In a changing busine ss climate, it is important to understand the structural,
cultural and strategic reality of work. To facilitate organizational success,
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Management development deals with planned change. The nature of Organizational
development is complex as it tries to understand how to manage planned
change in organizations. Through the application of knowledge of the
behavioral sciences, OD helps to facilitate the planned change for the
improvement of organization.
The concept of organizational development helps organizations to build
their capacity to bring change by integrating and developing the strategies,
structures and processes of the organization. It is a systematic, integrated
and planned approach to improve the effectiveness of the organization.
The culture of change is developed through the utilization of behavioral
science, research, theories, laws and technology. The approach of
organizational development is evidence based and structural. It aims at
organi zational effectiveness.
In simple words, organizational development is an objective based
methodology used to initiate a change of system in an entity. It is achieved
through supporting organizational structure and proper communication.
Change is inevitabl e in nature. Due to multiple reasons, there are a number
of changes occurring frequently.
DEFINITION
According to Burk and Hornstien "Organization development is a
process of planned change. Change of an organization's culture from one
which avoids an exam ination of social processes (especially decision
making, planning and communication) to one which institutionalizes and
legitimizes this examination".
According to Warren Bennis - "Organization development is a response
to change, a complex educational str ategy intended to change the beliefs,
attitudes and structure of organization so that they can better adapt to new
technologies, markets and challenges".
CHARACTERISTICS OF OD
The concept of organizational development is adaptive, flexible, modern
and evol ving. To understand the concept of organizational development
better, let's have a look in the characteristics of OD:
 OD is a systematic, planned and integrated approach to change.
 It involves the application of knowledge.
 It advocates that for organizatio ns to change, individuals must change.
 The process of OD is goal oriented.
 It is designed to solve the problems of the organization.
 It aims at building capacity and achieving effectiveness.
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Management of
Organizational Change  It is managed from the top in order,
 It is a modern approach to the management of change.
 OD interventions lead to improved organization performance.
 OD increases innovation through employee involvement and
engagement.
9.7 PRACTICES OF ORGANIZATIONAL
DEVELOPMENT
The goal of organizational development is to achieve org anizational
effectiveness. The effectiveness of OD must be fully supported by
theories. Fields like psychology, HR practices, management techniques
and various other disciplines can help to find out how to best implement
change and development. The followi ng are the practices that must be
undertaken for the functioning of organizational development in an
enterprise:

Fig. 9.7 OD Practices
Company Culture
Achievement of organizational goals is an important element for
organizational effectiveness. Company’ s culture should be built in such a
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Management responsibility for achieving group and organizational goals. Suggestions,
feedback, grievance redressal, supportive environment are some important
key ele ments which must be taken into consideration while creating a
company’s culture.
Organization Structure
The organizational structure must be flexible and simple. It must allow the
procedures within an organization to change when needed. Organizations
need to eliminate issues and practices that limit progress. The action plan
should be realistic, doable and must support the stakeholders of the
organization.
Strategic Goals
The interventions taken for the organizational development must be in
alliance with th e strategic goals of the organization. The problem
identification, its measurement and the solution is an important part of the
whole process.
Client Willingness
Determining the client’s willingness or readiness is an important factor.
Are they willing or ready to accept change is an important question that
need to be asked while going for organizational development
Collaboration
Working with the right people at the right time is essential for
organizational development. People who work in collaboration are said to
bring more positive and fruitful results for the organization.
Feedback Mechanism
Feedback is an essential element of organizational development. For every
change, a feedback mechanism should be run one to one to allow people
to express their view s and how are they able to perceive change.
9.8 OD INTERVENTIONS
Bringing OD in an organization is a complex task. Through OD
interventions, the structural activities can be proved helpful to bring and
maintain organizational effectiveness. According to French & Bell , “OD
intervention refers to the range of planned, programmatic activities client
and consultant participate in during the course of OD program.”



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Management of
Organizational Change The following interventions can be undertaken to bring about OD:

Fig. 9.8: OD Interv entions
Individual focused Interventions:
Interventions that are targeted towards individuals are known as
individual -focused interventions. The individual -focused interventions
include skill training, job redesign, career planning and role negotiations.
We will discuss this points one by one:
 Skill Training: It refers to increasing the knowledge, skills and
abilities of an employee to perform or do a specific job more
effectively. It is imparted in the classroom or on the job.
 Job Redesign: It alters jobs to improve the balance between the
individual skills and the demands of the job.
 Career Planning: It is a measure through the organizations, through
various activities, to identify strengths, weaknesses and goals of the
employees. Counseling is also an imp ortant part of career planning.
 Role Negotiation: It is a simple technique through which
employees/individuals meet and clarify their job roles. The
expectations of both the parties are clarified and negotiated.


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Fig. 9.9 Organization and Group -focused Interventions
These interventions are organizational and group -focused. They aimed at
changing the organization or work -groups within the organization. The
interventions include management by objective, quality of work life,
survey feedback, team building and process consultation.
Techno structural Interventions:
Techno Structural interventions refers to the programs which are aimed at
changing the technology and structure of the organization. With rapidly
changing markets, these interventions are becoming increasingly relevant
and important.
These interventions includes:
Organizational Structure: Organizational structure deals with the
functioning of the organization. It includes functional structure, divisional,
matrix, process, customer centric, and net work. It also includes the design
or restructuring in the form of downsizing and reengineering.
Total Quality Management: Total quality management is a philosophy.
It is not a technique. It states that every employee should work towards the
improvement of the organization. To ensure a continuous success, the
employees should contribute in improving the work culture, work
efficiency, services, systems and processes. It is mainly concerned with
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Management of
Organizational Change Job En richment and Work Design: Job enrichment means enriching the
new dimensions to the job. As the name suggests, it seeks to enrich and
improve the existing job of the employee. While, work design deals with
designing work in a way that leads to optimum produ ctivity. Both can be
considered as an attempt to motivate employees by enriching and
enhancing their jobs.
Strategic Change Interventions: These interventions can bring the
development changes in an organization. Strategic change interventions
are those in terventions which focus on the change processes that can
shake the organizations. These interventions are for the long -term.
The following can be considered as the strategic change interventions:
Continuous Change: Continuous change deals with the changes which
occur gradually. These changes are improving by the time and are
continuing in nature. By making small incremental changes, an
organization can improve slowly.
Transformational Changes: As the name suggests, transformational
changes include mergers, acquisitions, alliances, joint ventures etc. These
changes can bring changes in the whole organization.
9.9 SUMMARY
Change is something which denotes a transition from one state to another.
The fact of being replaced or changed creates fear in the mind of the
people. In an organization, translating change into an action is challenging
if it is not communicated properly. People feel change is a never ending
process where responses to it will be in the form of readjustment or
readaptation.
The purpose of org anizational changes is to change employee behavior
towards change in a positive way and to improve the ability of the
organization to adapt changes in the new environment. It is not that easy
to introduce change. People resists due to many reasons.
People resist change. There may be numerous reasons as human behavior
is caused. Whatever we do, there is a reason behind that. Resistance to
change can be a source of functional conflict. Some evidence of resistance
to change is very destructive.
Managing resist ance to change is a key to management of change. It can
be managed through various ways.
Organizational development is an objective based methodology used to
initiate a change of system in an entity. It is achieved through supporting
organizational structu re and proper communication. Change is inevitable
in nature. Due to multiple reasons, there are a number of changes
occurring frequently. munotes.in

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Human Resource
Management Bringing OD in an organization is a complex task. Through OD
interventions, the structural activities can be proved he lpful to bring and
maintain organizational effectiveness.
9.10 QUESTIONS
1. What is meant by organizational change? Why is change considered as
inevitable in nature?
2. What are the major external and internal forces for change in
organization?
3. “People resist ch ange and it's a completely normal part of the process”
Comment.
4. How can resistance to change be prevented and managed? Explain its
various techniques or measures.
5. Write a note on practices of management of change.
6. What is OD? How is it undertaken by the or ganizations?
7. Discuss the various OD interventions. Which OD intervention is most
effective?
8. Explain the various practices that can be adopted to develop
organization.
9. What topics can be included in designing a new intervention for
organizational effectiven ess?

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10

HRD STRATEGIES FOR LONG -TERM
PLANNING AND GROWTH
Unit Structure
10.0 Objectives
10.1 Introduction
10.2 Human Resource Development
10.3 Framework of HRD
10.4 HRD Interventions
10.5 HRD Strategies for Long -term Planning and Growth
10.6 Implementing HRD Strategies
10.7 Summary
10.8 Questions
10.0 OBJECTIVES
 Understand the importance of HRD
 How is HRD an important part of HRM
 Long term benefits of HRD at various levels
 HRD Strategies and their implications and challenges
10.1 INTRODUCTION
The concept of h uman resource development is different from the concept
of human resource management. Human resource development helps
organizations to develop their workforce. Development is the main focus
area while human resource management deals with acquiring, traini ng and
managing people in an organization. The subject area of human resource
management is mainly concerned with the managing part including their
development. Human resource development is an important part of human
resource management.
The human resourc es of the companies must be managed and developed
in terms of the current strategic orientation of the company. The subject
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Management knowledge, abilities and capacities of the employees and manage rs.
Through the framework of human resource development, employees can
develop their skills, knowledge and abilities. It helps them to work more
efficiently.
Within human resource management, human resource development can be
a stand alone function. It is the training and development of a company’s
workforce. The role of HRD managers is very important.

Fig. 10.1: HRM. HRD and OB
The concept of organizational behavior deals with human behavior at
work. It is the study and application of knowledge about how people
behave or act in an organization as far as their individual or group
behavior is concerned. The subject area of OB is concerned with
understanding, predicting and controlling human behavior in an
organization.
Through human resource development, or ganizations fulfills the training
and development needs of employees and managers respectively. It helps
to provide new opportunities to the young talent to work better for the
organization. The domain of human resource development is very vast and
compreh ensive. Human resource development can be in the form of a
formal or informal way.
10.2 HUMAN RESOURCE DEVELOPMENT
Since the 1980s, the term ‘Human Resource Development’ has been in use
although the concept is much longer old. The development of human
resources is essential for any organization. The nature of human resource
development is dynamic, future oriented and growth oriented. Unlike
other resources, human resources are considered as the most valuable
resource of an organization. They have rather unlimite d potential
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HRD Strategies for Long -
Term Pl anning and Growth By creating a development culture and practices, the abilities and
knowledge of the employees can be increased in this challenging and
dynamic world. Human resource development aims at creating such a
climate. Based on certain principles and interventions, the concept of
human resource development is widening day by day.
Human resource development is a practice through which employees
develop their personal and organizational skills, abilities and knowledge.
Human resour ce development is developing the most superior workforce.
In simple words, HRD is a process by which the employees of an
organization are helped in a continuous and planned way. It helps
employees to understand their own capabilities.
 DEFINITION
According to M.M. Khan , "Human resource development is the cross of
increasing knowledge, capabilities and positive work attitudes of all
people working at all levels in a business undertaking."
According to Leonard Nadler , "Human resource development is a series
of organized activities, conducted within a specialized time and designed
to produce behavioral changes."
10.3 FRAMEWORK OF HRD
The development of human resources is essential for any organization.
The nature of human resource development is dynamic, future orien ted
and growth oriented. Through the framework of human resource
development, employees can develop their skills, knowledge and abilities.
It helps them to work more efficiently.
Human resource development deals with the training and development of
employe es and staff. Their development leads to community development.
With the help of the diagram given below, we can understand the
framework of human resource development -

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Management The framework of HRD is designed to serve the employees. Hu man
resource development is one of the forms of systems which helps
organizations to sustain and retain employees. Motivation plays an
important role in the whole process. Human resource development itself is
a framework designed to train, develop and moti vate employees through
training and development by increasing their knowledge, skills and
abilities.
Human resource development framework is important because it provides
necessary training and support to the employees of the company. The most
efficient wo rkforce is targeted first to accomplish the targeted goals while
serving the customers and society. The objective of the HRD framework is
to to develop and maintain the skills and competencies of the employee.
When the knowledge, skills and abilities of an employee increases, it leads
to a better, trained and skilled workforce. The assessment, design,
implementation and evaluation of the whole framework is important.
Assessment and prioritization of needs is another important part of the
whole process. Ever y framework deals with the following stages as far as
human resource development is concerned.


Fig. 10.3: Diagramatic representation of HRD Framework
 Assessment
This stage involves the assessment of the employees, job tasks and
organizational environ ment. What is needed and what we have is the
fundamental thing which will be considered by prioritizing needs,
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HRD Strategies for Long -
Term Pl anning and Growth  Design
Designing the program of human resource development is an important
part. De fining objectives, developing course of action, lesson plan and
scheduling the program are some important elements of this stage.
 Implementation
The implementation deals with the practical stage of the whole process
which was planned earlier. It involves t he successful delivery of the
assessment and design phase. with the help of various training and
development methods, the program will be implemented.
 Evaluation
The final step in the process is evaluation of the program. The
effectiveness of the HRD inter vention is measured during this phase.
Evaluation plays a vital role. It helps organizations to follow the same
strategy if it goes successful.
 Modification/Continuation
If the framework proves to be successful, the organization will continue to
adopt the similar framework in future as well. If not, they can modify the
process as per the needs and criteria of the organization for developing
human resources.
10.4 HRD INTERVENTIONS
The programs and interventions used can be used to address a wide range
of issues a nd problems in the organization. Human resource development
is an important function within human resource management. There are
many sub -systems of human resource development. Interventions help
organizations to prioritize the needs of the organization. T he following are
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Fig. 10.4 HRD Interventions
 Training and Development
Training refers to increasing the knowledge, skills and abilities of an
employee to do a particular job while development de als with the overall
improvement of a manager. Training word is used for employees while the
development word is used for managers. Through training and
development, the human resource development function can work
effectively.
 Performance Appraisal
Perfor mance appraisal means to evaluate the performance or work of an
employee in an organization. It helps individuals manage their
performance by providing them with feedback. It is good for the
improvement of the employees. That's why it is considered as one of the
important interventions of human resource development.
 Communication
Communication is an act of passing information from one person to
another. Clear communication is a key for organizational effectiveness.
This is one of the most frequent HRD inter ventions used by the
organizations to promote growth and development of the employees.

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HRD Strategies for Long -
Term Pl anning and Growth  Quality of Work Life
Quality of work life can be defined as the satisfaction level of an
employee related to his job and his/her thinking as far as the quality of
their work is concerned. If their satisfaction level is favorable, the quality
of work life is said to be positive. If it is unfavorable, the quality is said to
be compromised. Maintaining quality at the workplace is an essential
element of HRD.
 Job Enrichment and Job Enlargement
Job enrichment means the vertical expansion of a job by increasing the
knowledge, skills and abilities of an employee. Job enlargement means the
horizontal expansion of a job by adding more responsibilities and tasks.
These two things a re considered as important interventions of human
resource development.
 Organizational Development
Organizational development is an objective based methodology used to
initiate a change of system in an entity. It is achieved through supporting
organization al structure and proper communication.
The concept of organizational development helps organizations to build
their capacity to bring change by integrating and developing the strategies,
structures and processes of the organization. It is a systematic, int egrated
and planned approach to improve the effectiveness of the organization.
The culture of change is developed through the utilization of behavioral
science, research, theories, laws and technology. The approach of
organizational development is evidence based and structural. It aims at
organizational effectiveness.
10.5 HRD STRATEGIES FOR LONG -TERM PLANNING
AND GROWTH
A human resource development strategy deals with managing and
developing its human resource to align with its business activities and
competiti ve world. The human resource development strategy is an
enterprise's overall plan for managing its human capital to align with its
commercial and business activities. The direction is set for all the main
areas of human resource. The key areas of human res ource include human
resource planning, recruitment, selection, training and development,
performance appraisal and compensation.
The HRD strategies for long -term planning and growth dictates HR
practices throughout the organization. The terms ‘planning and growth’
denote the direction of every direction. The analysis of the organization
and external environment is required to prepare the strategies for HRD. It
takes longer than one year to implement HRD strategies for long -term
planning and growth.
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Human Resource
Management The act ivities of human resource management are shaped for the long
term to achieve the objectives and goals. It helps in the deployment and
allocation of money, time, personnel and organizational resources.
The proactive approach is required in today's fast chan ging, challenging
and competitive environment. With the help of these strategies, the
efficiency, performance and productivity can be achieved through growth
and development of human resources in an organization . The utilization
and maximization of creati ve opportunities and available environment
through acquisition of knowledge is important in this field. Along with
knowledge, skills and abilities are also necessary to be updated for
productive efforts.
The objective of long term growth and development ca n be planned and
achieved by inspiring and motivating the inspired group of employees.
Their core competencies can be utilized and modified to achieve the
objectives of the organization.
The HRD strategies for long -term planning and growth deals with the
overall functioning of the organization. The following elements are an
important part of HRD strategies:


Fig. 10.5 HRD strategies for long -term planning and growth
Communication is a key element. Without communication, no
organization can achieve this ob jective. The HRD strategies for long -term
planning and growth also advocates the clear communication between the
various departments and levels. The HR policies should be made in
accordance with the vision, missions and objectives of the organization. It
should be conveyed and communicated properly to the employees of the
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HRD Strategies for Long -
Term Pl anning and Growth Maintaining quality in every aspect of the organization is a need of today.
A quality strategy will ensure this element. Managing change is another
important challenge and pr operly taken care of.
Feedback mechanism is required to see whether the organization is able to
cope with the change or not. Feedback mechanism also ensures that the
HR policies are well communicated, quality strategies are well planned
and implemented. Em ployees are involved completely in the whole
communication process.
A good feedback mechanism ensures the greater participation of
employees in an organization.
10.6 IMPLEMENTING HRD STRATEGIES
In the previous topic, we have discussed the HRD strategies fo r long -term
planning and growth. In this topic, we will see how the HRD strategies are
implemented properly. HRD strategies are a plan that defines how the
human resources would be utilized in an organization. Growth and
development plays an important role while preparing and implementing
HRD strategies.
An organization by preparing and following the given steps can plan,
prepare and implement HRD strategies. -

Fig. 10.6 Steps Involved in the Implementation of HRD Strategies
Step I: Needs Assessment
The a ssessment of needs of the organization is a first step. This step is an
important step. The needs of the organization related to human resources
are identified in this step. Developing an effective human resource
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Human Resource
Management Step II: Preparing and Designing the Strategy
In this step, the strategies are prepared and designed. Once the focus is
clear, the next step is to work in that direction. The strategies are prepared
and designed by keeping in view the goals and objectives o f the
organization.
Step III: Alignment
The third step involves the alignment of the HRD strategies with the
business objectives. Though, strategies are designed and prepared in that
way only. The objective is Every HR strategy has to support business
efforts.
Step IV: Implementation
Once the above steps are cleared, the strategies are implemented in this
step. Through team building and group efforts, the HRD strategies are
implemented to achieve the objectives of the organization related to
human resource.
Step V: Feedback
This step ensures the analysis of the whole process. Feedback mechanism
is required to see whether the organization is able to cope with the change
or not. Feedback mechanism also ensures that the HR policies are well
communicated, qualit y strategies are well planned and implemented.
Employees are involved completely in the whole communication process.
10.7 SUMMARY
 Human resource development helps organizations to develop their
workforce. Development is the main focus area while human resource
management deals with acquiring, training and managing people in an
organization. The subject area of human resource management is
mainly concerned with the managing part including their
development. Human resource development is an important part of
human resource management.
 Human resource development is a practice through which employees
develop their personal and organizational skills, abilities and
knowledge. Human resource development is developing the most
superior workforce.
 The framework of HRD is designed to serve the employees. Human
resource development is one of the forms of systems which helps
organizations to sustain and retain employees. Motivation plays an
important role in the whole process. Human resource development
itself is a framework designed to train, develop and motivate
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HRD Strategies for Long -
Term Pl anning and Growth  The programs and interventions used can be used to address a wide
range of issues and problems in the organization. Huma n resource
development is an important function within human resource
management. There are many sub -systems of human resource
development like training and development, performance appraisal
etc.
 The HRD strategies for long -term planning and growth dictat es HR
practices throughout the organization. The terms ‘planning and
growth’ denote the direction of every direction. The analysis of the
organization and external environment is required to prepare the
strategies for HRD. It takes longer than one year to implement HRD
strategies for long -term planning and growth.
 HRD strategies are a plan that defines how the human resources
would be utilized in an organization. Growth and development plays
an important role while preparing and implementing HRD strategies.
10.8 QUESTIONS
1. What is Human Resource Development? Explain the role of HRD in
developing and implementing strategies.
2. Write a note on the framework of HRD.
3. Why are companies focusing more on human resource development?
Support your answer with the help of some examples.
4. Explain the concept of HRD strategies for long -term planning and
growth.
5. What are the Steps Involved in the Implementation of HRD
Strategies.


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SUCCESSION PLANNING
Unit Structure:
11.0 Objectives
11.1 Introduction
11.2 Meaning and Definition
11.3 Steps / Elements of Succession Planning
11.4 Need and Importance of Succession Planning
11.5 Need of Succession Planning to Family Oriented Enterprise s
11.6 Issues in Succession Planning and Solutions
11.7 Problem in Succession Planning
11.8 Measures to The Solve Problems in Succession Planning
11.9 Grievance Handling
11.10 Grievance Procedure
11.11 Summary
11.12 Self Assessment Questions
11.0 OBJECTIVE S
After studying the unit the students will be able to:
 Define the meaning of Succession Planning.
 Explain the steps in the process of Succession Planning.
 Understand the importance of Succession Planning
 Know the issues related to Succession Planning
 Elaborate how to face the issues of Succession Planning
 Discuss about the term Grievances handling and the process of
Grievances Handling.
11.1 INTRODUCTION
Survival, growth and efficient continuous existence of an organization
require a succession of people t o fill various important jobs. The purpose
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to occupy higher level jobs as and when they fall vacant. Higher level jobs
fall vacant due to various reasons like retirement, resignation, promotion,
death, creation of new position and new assignments.
Succession may be from internal employees or external people.
Succession from internal employees is advantageous to the organization as
well as to the internal employees. Organization can buy the employees
loyalty and commitment, belongingness, shared feeling of development
along with the organization by promoting the internal employees.
Employees get the benefits of growth in the organization. The
organizations mostly prefer to encourage the growth and development of
its employees and as such tend to prefer succession from within.
Organizations, appraise employees potentialities, identify training gaps for
future vacancies, develop them for higher and varied jobs. The scope of
succession plan would be more when the organization grows steadily and
employees have potentialities to take up higher responsibilities.
Professionally run organizations ask their managers to identify the internal
employees having potentialities and develop them in order to occupy their
positions as and when they fall vacant.
However, it is necessary to allow the inflow of new blood also. Hence,
organizations should also search for outside talent in certain cases like
when competent internal people are not available, when expansion,
diversification and growth plans are in offing, complete dependence on
either internal source or external source is not advisable to any
organization. Hence, a judicial balance between these two sources should
be maintained.
11.2 MEANING AND DEFINIT ION
“Succession Planning is a process to ensure continued effective
performance of an organization, division, department, or work group by
making provision for the development, replacement, and strategic
application of key people over time.”
In order to pr epare potential leaders, the gap between what they are ready
for now and what preparation they need to be ready for the job when it is
available needs to be determined.
By considering their past performance as a volunteer, past experience, fit
with the org anizational culture, and other members' acceptance of them as
a potential leader, the best fit can be determined.
Succession planning is a systematic approach to:
 Building a leadership pipeline/talent pool to ensure leadership
continuity
 Developing potenti al successors in ways that best fit their strengths
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Management  Concentrating resources on the talent development process yielding a
greater return on investment.
Succession planning recognizes that some jobs are the lifeblood of the
organization and too critical to be left vacant or filled by any but the best
qualified persons. Effectively done, succession planning is critical to
mission success and creates an effective process for recognizing,
developing, an d retaining top leadership talent.
11.3 STEPS / ELEMENTS OF SUCCESSION PLANNING
The main steps/elements of succession planning are as follows:
It is important to acknowledge that succession planning will vary slightly
between organizations. Different resources , different organizational
designs and different attitudes all mean that succession planning should be
flexible and adaptable in order to accommodate varying needs and achieve
business continuity. However, there is a general framework that
departments can use as the basis and guide for their succession planning
activities.
This framework involves:
STEP 1: Identifying key positions or key groups (current and/or future)
 Identifying Key Positions or Key Groups:
A key position or occupational group can be defi ned in many different
ways, but two important criteria that should be considered are criticality
and retention risk. A critical position is one that, if it were vacant, would
have a significant impact on the organization’s ability to conduct normal
busines s. The significance of the impact could be considered in terms of
safety, operation of equipment, financial operation, efficiency, public
opinion, and so on. Retention risk refers to positions where the departure
of an employee is expected (e.g. retirement ) or likely (e.g. history of
turnover). By examining these criteria on a low -to-high scale, an
organization can determine what positions require short or long -term
planning.
A gap analysis, as a part of workforce planning, can also be an invaluable
tool to identify key areas or occupational groups. Information that may
help identify key positions can include:
 Current and future strategic goals and objectives
 Retirement forecasts
 Turnover rates
 Current and expected vacancies
 Changes to existing programs and services
 Highly specialized function
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 What jobs, if vacant, have the potential to prevent the organiza tion
from achieving goals and objectives?
 What jobs have a direct impact on the public?
 What jobs would be difficult to fill because of required expertise or
because the exiting incumbent possesses a wealth of unique and/or
corporate knowledge?
 Is there a projected labour market shortage for relevant job skills?
 Is there a need to plan for anticipated positions that do not currently
exist?
STEP 2: Identifying competencies
Identifying Competencies
All positions have a requisite set of knowledge, skills and abilities that are
expected of employees who are filling that function. Thus, knowing the
competencies of a job is a mandatory component of recruitment, serving
as a general baseline to measure against interested potential candidates.
However, succession p lanning provides an opportunity to review the
competencies traditionally associated with jobs, particularly with respect
to current goals and objectives. Several ways to determine and develop
required competencies include:
 Reviewing job descriptions, adver tisements, and relevant merit
criteria
 Interviewing current and former job incumbents
 Interviewing supervisors, clients, and other stakeholders
 Conducting focus groups or surveys
 Reviewing any existing development programs (i.e. leadership
competencies)
 Reviewing organizational values
Although job descriptions offer a good starting point for the identification
of competencies, it is important to consider some of the other sources of
information listed above.
Current incumbents, for example, would have a go od understanding of
which competencies are the most important to their job. Interviewing
these people may reveal knowledge, skills and abilities that are necessary
for the job, but are not currently identified in the job description. Given
the practical sc ope of any job, valid identification of competencies is
necessary for:
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Management  Creating a baseline for assessing interested potential candidates; and
 Identifying appropriate learning and development opportunities .
 Some questions to consider might include:
 What are the specific functional competencies that apply to a key job
or group?
 What competencies apply to all employees and groups? Are these
competencies aligned with the organization’s vision, mission and
values?
STEP 3: Identifying and assessing potential candidates
 Identifying and Assessing Potential Candidates
The key purpose of identifying and assessing employees against core job
competencies is to help focus their learning and development
opportunities in order to prepare them for future roles in the organization.
Traditional approaches to succession planning have the potential to result
in a one sided selection process, the organization identifies a key position,
and then executives select a high -potentia l individual for preparation or
training. Given the potential sensitivity around the decision -making
process in these situations, an employee might be advised about their
prospective opportunity for advancement in private. This process is not
transparent a nd can negatively impact the morale of other employees
(including the person chosen for succession) and their relationship with
the organization.
Modern approaches to succession planning suggest that transparency and
accountability are the best practices f or an organization. Recruitment in
the public service is based on merit, fairness and respect, and these
concepts are maintained and supported by the succession planning
process. To demonstrate these values, succession planning must be:
 Objective and indep endent of personal bias;
 Merit -based;
 Communicated to and understood by all employees; and
 Transparent at all stages of the process.
Under these circumstances, self -identification is a useful starting point to
see which employees are interested in leadersh ip roles, career
advancement or lateral moves that might not be easily attained without
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 Learning and Development Plans
Once the relevant candidates have been identified, based on their interest
and potential for success in a key position, the organization must ensure
that these employees have access to focused learning and development
opportunities.
Some key points to remember when developing learning and development
plans are:
 Plans should focus on decreasing or removing the gap between
expected competencies and the current knowledge, skills and abilities
of candidates.
 Manage expectations – modern succession planning is based on
learning and developm ent to fulfill employee potential, rather than
merely filling a vacancy.
 There are a wide range of learning and development opportunities to
consider, which can include:
 Job assignments that develop and/or improve a candidate’s
competencies;
 Job rotations; and
 Formal training.
 Ensure appropriate strategies are in place to support the transfer of
corporate knowledge to candidates for key jobs, which can include:
 Mentoring, coaching or job -shadowing;
 Documenting critical knowledge;
 Exit interviews; and
 Establ ishing communities of practice.
STEP 5: Implementation and evaluation
 Implementation and Evaluation
Evaluating succession planning efforts will help to ensure the
effectiveness of the process by providing information regarding:
 How the process operates – the relationship between inputs,
activities, outputs, and outcomes
 Impact of the process relative to stated goals and objectives
 Functional strengths and weaknesses
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Management  Cost-effectiveness and cost -benefit
Planning to collect and assess these types of information will ensure that
the organization monitors its succession planning activities, appropriately
measures success, and adjusts the process accordingly given sufficient
evidence. Some evaluative questions for depart ments to consider might
include:
 Have all key jobs been identified and do they have succession plans?
 What is the impact of succession plans on business continuity in key
positions?
 Are successful candidates performing well in their new roles?
 What is the impact of learning and development efforts? Are
employees ready to compete for a vacant key position?
 Is the candidate pool diverse and reflective of employment equity
values?
 What are the areas for improvement in the succession planning
process?
Once a s uccession plan has been established, monitoring its efficiency and
effectiveness will be essential. Thus, each succession plan should be
developed within an evaluation framework in order to measure progress
and success, as well as provide any evidence to s upport changes to the
succession planning process.
11.4 NEED AND IMPORTANCE OF SUCCESSION
PLANNING
Succession planning is an essential part of doing business. As the future of
any business is not certain and it seems that everything in the business
concern is going so well, in this case putting off planning may be the
wrong decision. Here is the time for the business concern to begin for
succession planning.
Following are some reasons why succession planning is essential:
Succession planning helps to face disaster.
No matter how good you and your staff are at revenue projections or
economic predictions, no one can truly plan for disaster. Whether it's an
unforeseen illness, a natural disaster, or a CEO's decision to suddenly
retire, the reasons for having a succession plan in place before it is needed
are endless. So while you can't plan for disaster, you can put into place a
series of contingencies that will help your company stay afloat if, in fact,
catastrophe occurs.
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Just as business practices have evolved over the years, succession
planning has also grown and changed. It's no longer a plan that can only
be accessed when leadership is going to change; a succession plan can be
used before its "real" int ent is necessary. It can be used to build strong
leadership, help a business survive the daily changes in the marketplace,
and force executives to review and examine the company's current goals.
Succession planning gives your colleagues a voice:
If you're running a family business, the process of succession planning
will give family members an opportunity to express their needs and
concerns. Giving them that voice will also help create a sense of
responsibility throughout the organization, which is critical for successful
succession planning. Resist the temptation to solely carry the entire weight
of creating and then sustaining a plan.
A succession plan can help sustain income and support expenses:
Talking about money should be a priority. People generally don't want to
work for free and things don't pay for themselves. A succession plan can
provide answers as to what you and your staff will need for future income,
as well as what kind of expenses you may incur once you step out of the
main leadership role. Ask yourself questions about your annual income
and other benefits including health and dental insurance for you and your
dependents, life insurance premiums paid for by the company, your car,
professional memberships, and other business related expenses.
Succession planning gives you a big picture.
Some companies mistakenly focus solely on replacing high level
executives. A good succession plan can go further, however, and force
you to examine all levels of employees. The people who do the day -to-day
work are the ones keeping the business going. Neglecting to add them to
the succession planning mix could have dire consequences. As you
develop your plan, incorporate all layers of management and their direct
reports.
Succession planning strengthens department al relationships.
When regular communication occurs between departments you are more
likely to experience synergy, which breeds a culture of strength. Make
sure that you link your succession planning activities with human
resources. After all, HR is about people. By including HR in succession
planning, you can incorporate elements like the employee evaluation
process, which can help when deciding whether to fill vacancies with
internal candidates.
Succession planning keeps the mood buoyant.
Change a major c omponent of a succession plan is exciting and can bring
a company unforeseen rewards. Still, change can be a source of
tremendous stress, especially when people's livelihoods are at stake. As
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Management business. Planning for the future is exciting and, if done correctly, can
inspire your workers to stay involved and maintain company loyalty. It's
true that a plan is often put into place to avert catastrophe, but it's also a
company's way of e mbracing the future —a business strategy that is
essential for survival.
11.5 NEED OF SUCCESSION PLANNING TO FAMILY
ORIENTED ENTERPRISES
Due to the complexities surrounding the transfer of ownership of family
businesses from one generation to another, spec ific resources have been
developed for family business owners planning for this transition. Among
these resources is the McCabe Arch which is a visualization and planning
tool for the American business owner. It offers practical solutions for
planning the orderly consumption and distribution of financial and
emotional wealth.
The process, like the construction of an arch, begins with two solid
cornerstones, the business owner who is willing to plan for his or her
eventual departure from the business, and th e willing successor.
However, the unique aspect of an arch was that we continually build it
from two sides. For a succession planning model to work, we needed
commitment from the owner and the protégé. It was imperative that both
sides complete their assig nments with the ultimate goal of the finding and
resolving the key issues that were represented by the various blocks. Harry
McCabe (Author of Pass It On: The Entrepreneur's Succession Planning
book).
Each building block on each side of the arch represents a step in the 7
Steps to Succession, which provides a time table and road map for Family
Business Succession Plans.
11.6 ISSUES IN SUCCESSION PLANNING AND
SOLUTIONS
There is a compelling argument that gifting family businesses to the next
generation destroys b usinesses and family relationships. When family
members purchase shares in a family business they are required to assess
their own skills and ability to generate wealth from the business. Families
that skip this step, families that gift ownership encourage children to work
in and often lead family businesses for all the wrong reasons
If the employees retire or exit for other reasons, the ethos and dynamics of
the business will inevitably change. If the value of the business is to be
maintained or enhanced, it is imperative that these changes are carefully
controlled.
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The first step is to formally decide precisely what difference their
departure will make. If the retiring directors/managers were responsible
for sales dynamism, strict financial control, key a ccount customer loyalty
or engineering innovation, for example, these are the critical skill gaps
which will need to be seemlessly filled.
The assumption is companies will need to recruit externally to fill
operational gaps arising as they undergo change. This is not necessarily
the case.
External HR professionals can be brought in to work as change managers.
They can identify current or anticipated gaps in managers' range of skills
and employees' competencies and then develop the most cost efficient
ways t o fill these gaps.
But there is more to succession planning. Rather than just being a way of
averting the dangers of a foreseeable motivational and engagement
vacuum, it can be an opportunity to refresh, revitalise or reposition a staid
enterprise in a rap idly changing world.
Businesses can move forward by optimising the contribution of their
existing management, staff and workforce. It is highly likely existing
personnel will have undiscovered capabilities and talents. But the fact
these attributes have no t become apparent in their existing roles is
probably more to do with habit and complacency than a failure to invest in
employee development. It might be the case they have simply not been
invited to extend themselves in an unfamiliar direction or take on wider
responsibilities. It is definitely the case that uncovering unsung talent in
existing staff is less costly than recruiting and introducing new personnel.
Job rotations can sometimes reveal these hidden reservoirs of ability.
Perhaps someone on your s ales force has the potential to become an
outstanding marketer perhaps someone from your shop floor or office has
the potential to be an outstanding sales generator. An operative might have
innate interpersonal skills which earmark him or her for developme nt into
line management.
In some instances, the skills shortfalls can be filled by job rotation. Skills
shortfalls in one department can be overcome by importing them from
another where a competent individual's ability is being under utilised.
There are hu ge savings to be made by offering coaching, mentoring or
further job training to existing staff.
11.7 PROBLEM IN SUCCESSION PLANNING
Leadership, implementation and industry related competencies:
To combat the MEGO (my eyes glaze over) factor, we first dist inguished
industry related skills such as risk analysis or sales skills from other
competencies. We then grouped the remainder under either
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Management “Implementation” refers to how one gets things done, while “leadership”
refers to competencies that are often, in effect, personal attributes.
In the Bible, Noah demonstrated the differences among these three types
of competencies. God told Noah that it was going to rain and that he
wanted Noah to build an ark and put all kinds of animals on it. Therefore,
Noah knew what the industry risks were (it’s going to rain) and what
should be done about it (build an ark and put the animals on it). However,
knowledge of what the risks are, and what should be done about them,
doesn’t get the job done.
But Noah, starting with the limited instruction on ark building provided by
God, did get the ark built on time and today we would say on budget
demonstrating that he had the implementation skills needed to take action
and manage risk.
Noah’s implementation skills can be distinguished from his leadership
skills. He demonstrated leadership skills by convincing all those animals
to board the ark and not eat each other up during the voyage.
Grouping competencies into subgroups:
We hav e found that leadership, implementation and industry related
competencies can each be further subdivided. We have about 10 such
competencies for each of these three categories. With these additional
subdivisions, linkage can be made to the competencies nee ded for the
strategic plan. For example, our methodology subdivides “leadership” into
competencies such as: Strategic Agility (including Vision), Integrity &
Trust, and Developing Subordinates. It divides “implementation” into
competencies such as: Flexibi lity & Adaptability, Communications Skills,
and Results Orientation. Industry related skills, in addition to professional
competencies, include: Industry Knowledge, Client Focus and Global
Perspective. Russell Reynolds Associates has developed a methodolog y in
our executive search practice that allows us to predict if people are likely
to have the needed competencies. In our executive assessment practice we
have identified ‘Flexibility & Adaptability’ as a key competency for the
personal development needed to progress in leadership training, and
hence, succession.
Does this sound like motherhood? We don’t think so. We did a search for
a large Canadian financial institution that had worked through a
competency framework similar to ours and had identified the
competencies that were needed in all of their senior officers, in addition to
any specific industry related skills needed for each job. Their list of key
competencies was as follows: Dealing with Ambiguity, Strategic Agility,
Integrity and Trust, Manageria l Courage, Decision Quality, Results
Orientation, and Client Focus. We would call the first five “leadership”
competencies, the second - to last an “implementation” competency, and
the last an “industry - related” skill. We were able to match our
competency framework to theirs, and therefore, our methodology to their
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to meet both their leadership and implementation needs as well as industry
related requirements.
Building competencies int o the strategic plan:
This is where a key part of the strategic planning process should include a
review of the competencies that will be needed to fulfill a firm’s strategic
plan. Mapping the industry related competencies such as “customer focus
skills” o r “chemical engineering expertise” is relatively obvious.
However, even here, commonly held views need to be established.
Building a commonly held institutional view of key leadership
competencies is harder. However, the executive management team can
achie ve this goal by comparing competencies listed as leadership
competencies above to the firm’s current culture, and then determining
what needs to change at the leadership level in order to get to where the
firm wants to go. One firm summarized their current competencies as
subsets of; “This is how we do things around here,” and then went on to
say, “This is how we will have to do things around here in the future.”
Executives prefer quantitative benchmarks. Leadership as a concept is just
too subjective for m any people. In the absence of using specific leadership
competencies such as those described in Section C (above), our
experience tells us that decisions about people will tend to be based on
industry -related skills rather than on leadership competencies. Our
methodology makes executives more comfortable in assessing leadership
because it has been broken down into meaningful concepts such as;
“Developing Subordinates”, “Results Orientation” and “Client Focus”.
Using training to improve leadership skills:
We also believe that people can improve not just their industry skills, but
that they can also improve their implementation and leadership skills. At
the Toronto International Leadership Centre for Financial Sector
Supervision (Toronto Centre), we were seeki ng to strengthen the
leadership skills of the government officials who supervise the financial
services sector in emerging market countries. It was our theory that, like
Noah, these officials knew what the financial sector risks were when
financial markets are liberalized. However, many lacked the experience to
know how to build the ark and get the animals on it.
During one session at the Toronto Centre, we wished to use role -playing
to demonstrate the use of “persuasion” in an environment where officials
believed that simply giving an order would actually cause things to be
done. Concerned about the loss of face in role -play situations, we invited
participants to state what they would say if they were to role -play, rather
than actually engage in the role -playing. The first rapporteur, who was a
senior official from the central bank of an advanced eastern European
country, exceeded instructions and role -played his response. The second
rapporteur was the deputy governor of one of the most important central
banks in Africa. He agonized over the potential loss of face he would
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Management by not matching the performance of the previous rapporteur. Opting for
the second risk, he reached back to his skil ls as an Oxford University
debater and brilliantly rolled out his argument. By doing so, he made the
leap of applying his Oxford debating skills to using persuasion rather than
giving orders as a means of getting things done in his central bank.
Thus, whil e some people do seem to be born leaders, others can be helped
along the path. In short, while one cannot turn a sow’s ear into a silk
purse, it is possible to turn a sow’s ear into a pigskin purse. That may be
sufficient to help someone become better at w hat they do.
Identifying the leadership pool:
Having said that, there will still be those who are not able, or not willing,
to make the sacrifices demanded of leaders. For example, early in my
career, I “Peter -Principled’ a sound technical officer. Soon, w e were both
nervous wrecks. One day he came to me and said that I had over promoted
him, that he was happier in his previous job, and that he wished to have it
back. I readily agreed. Years later, long after my wings had melted from
flying too close to the sun, he was still there, fulfilling his technical
responsibilities, until he retired with full pension at the end of his career.
When the executive assessment competency testing is done, the employee
pool will be divided between those who are in the leade rship pool and
those who are not. There should still be senior technical positions
available in most companies for non leadership candidates. One does not
have to be part of the leadership pool to be an outstanding derivatives
trader or a key nuclear physi cist. Some of these people will be among the
highest paid in the firm. The rest, who are neither the leadership
candidates nor the technical stars, are the backbone of the company. They
are the much needed foot soldiers who make the roll out of the strateg ic
plan into a desired experience for the firm’s customers through direct
service or by supporting the employees who provide that service.
Those who are not in the leadership pool should be told that this is so and
the results of the competency testing sho uld be shared with them. At
Russell Reynolds Associates, we believe that it is even better to make the
results available to each person. These employees should be given the
opportunity to elect to stay in technical or operational roles if they are
performi ng well, or to leave and seek a leadership position with another
firm where their leadership competencies are more closely aligned. We
understand that it takes managerial courage to communicate this split.
Creating a training program for those who wish to try and acquire the
needed competencies alleviates part of this problem.
We have seen cases where executive management has skipped executive
assessment and decided to provide leadership training for the entire senior
management team. The advantages of doin g so are that it builds morale
and helps senior managers learn what is happening in other parts of the
business, thereby increasing the opportunities for cross selling. We believe
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senior managers are leaders or potential leaders. Their involvement makes
the leadership training program less effective. It is therefore a
misallocation of strategic resources. Moreover, some junior employees,
who are potential leaders, are excluded from the leadership pool until they
are promoted into the eligible ranks.
Candidate selection:
It is improbable that all of the skills needed to achieve the strategic
objectives will be found within the organization. In those circumstances,
recruitment from out side the organization will be needed to augment the
leadership pool. Recruitment that emphasizes the firm’s core leadership
competencies as well as the needed industry related skills reduces the risk
of recruitment failure.
We believe that a healthy mix of internal promotions and external hires
creates both a foundation of continuity and an infusion of new ideas.
There is an opportunity to test the candidates in the company before they
take on the most senior management positions if intake is at least a lay er
or two below the CEO.
Experience:
Conventional wisdom for succession planning says that leadership
candidates should be given experience in different parts of the company.
We agree, but the purpose isn’t solely to learn how to run those
businesses; it’s also to learn which questions to ask, and to learn to listen
to the answers. When I became Treasurer at CIBC, I was for the first time
faced with accountability for a discipline that was outside my area of
expertise, taxation. Desperate to cling on to som ething I knew, I asked to
retain responsibility for tax, even as I assumed my new responsibilities.
But my boss, who wanted nothing to do with the taxation line reporting
through him, said: “You have so many questions to ask that you won’t
have time to ret ain responsibility for the taxation function.” He was
correct.
Training and development:
Corporate training falls into three general groupings -
 Training for product knowledge and selling skills,
 Training in management or implementation skills, and
 Leader ship development.
Teaching product knowledge and selling skills improves customer sales
and service. It does not do much for leadership development. Teaching
management or implementation skills is often billed as leadership training.
To the extent that it teaches people to work more effectively together, to
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Management At the leadership training level, there are credible firms that can help
executives strengthen leadership skills such as “strategic agility” and
“developing subordinates.” There’s not much you can do for “integrity
and trust” if a person doesn’t have them by the time they are, say, 20 years
of age. Beyond such programs, making coaches available for personal
counseling and attending Outward Bound type programs to build trust can
be employed. We have seen good successes and some failures with both.
It makes sense to use a coaching framework for more than training on
particular subjects. Some companies, like GE, s et aside a day several
times throughout a leader’s career with the firm to thoroughly and
professionally review the strengths and needs of the individual. This
creates a framework both for personal development and for corporate
decisions on future assignme nts.
Know your exit strategies:
Depending on the firm’s makeup, the path to retirement can vary.
Research your options, set exit rules for partners, and seek an expert
adviser. At Keiter, for example, equity partners have mandatory retirement
at age 65. “I t just puts the firm in the driver’s seat as far as what’s in the
best interest of the firm,” Hall said.
Develop your staff:
It’s difficult to have an inside successor or successors if that talent isn’t
given proper training. Allow your firm’s stars to tak e on more
responsibility. David Jentho, CPA, a partner at Ratliff & Jentho CPAs in
Baytown, Texas, said a critical part of his firm’s succession plan was
“developing our staff and trying to put them in a position to where we can
begin to pass the responsib ility for clients onto them and help them build
the same type of personal relationships that we have with those clients.”
Evaluate your rates and clients:
Your PCA will be easier to implement if your practice is in line with the
firm that could take over. Now is a good time to examine your client list
and what you’re charging. Many smaller firms “have not maintained
market billing rates,” Cingoranelli said. “It’s going to make it difficult to
transition clients to another firm with higher rates. That’s goin g to be
some real sticker shock for their clients.”
Strengthen client relationships:
Focus ore attention on top clients. Don’t be afraid to shed marginal clients
(e.g., the ones who regularly pay late) or recommend another firm for
them.

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11.8 MEASURES TO THE SOLVE PROBLEMS IN
SUCCESSION PLANNING
With an aging workforce, planning for the inevitability of your leaders
exiting your organization is becoming more and more necessary by the
day. Succession planning isn’t just a buzzword: it’s a developmental
strategy that’s extremely relevant to how we plan to run our businesses in
current year and beyond.
You may have previously put it off due to some common problems that
may include a) identification, development, and retention of possible
successors, and b) budget constraints. While you may consider mentoring
as a solution for these issues in your organization, before you go any
further, you must first discard the idea of succession planning as
“replacement” planning.
Your organization may have a plan for what happe ns if and when a top
level employee leaves but chances are it’s more of a crisis/contingency
plan.
Let me ask you this: is the planned replacement ready to take on that new
role? Are they able to do it while transitioning from their current role and
handin g off their responsibilities? If they had to do it in the next two
weeks, could they do it? If the answer is “no,” it’s probably because no
one’s invested in their development and transition into that new role.
Successors Are Not Replacements:
The critical difference between the concepts of replacement planning and
succession planning is the development invested in the intended successor.
Bear in mind that no one likes to be a replacement: the word
“replacement” itself connotes “second rate/second best/I’m not ecstatic
with the current state but it’ll have to do”.
Alternatively, take this more proper definition: “a person or thing that
takes the place of another” (Oxford English Dictionary). But as we all
know when we’re talking about human beings and the co mplex ranges of
their skills, capabilities, personalities, and methodologies, you can never
simply substitute person A, entire, for person B, and assume that business
will run as it always has.
Business will not run as it always has; and no, that’s not nec essarily a bad
thing so long as you accept it and plan for it. Change is inevitable. Ignore
it at the risk of having a replacement that everyone sees as second best as
a best case scenario. When things go wrong in leadership, after all, they
tend to really go wrong for the whole business.
But when you give someone the tools and development and investment to
advance beyond “second rate/second best”, know the territory they’re
inheriting, and perform well within it, they’re able to become a true
successor. An d that person is ready to take on their new role. Mentoring
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Management you’ve been hesitant before about implementing a succession plan in the
past, here’s how mentoring can be a solution:
Make the most of a limited budget :
Your mentors (the people who currently hold the leadership role) and
mentees (their successors) come from within your organization, which
means two things for you: 1) You don’t incur coaching or training costs
otherwise associ ated with developing employees, and 2) you optimize
transfer of practical, cultural, and institutional knowledge.
Identify :
You may find that your mentors are uniquely suited to help you do
identify potential successors.
Develop :
The structure of a formal mentoring program is inherently developmental
because it a) is mentee driven b) offers practical experience to mentees, c)
offers mentee’s first -hand knowledge pertaining to their roles and/or
future roles.
Retain :
Formal mentoring programs also help retai n identified successors by
investing in not only their development, but their integration with the
culture and their new territory.
The “Success” in Succession. One final note: ultimately when you’re
looking at succession planning, you aren’t just looking at developing
individual leaders you’re looking at developing the entire company. And
that’s really the key to formal mentoring programs. Each mentor/mentee
pair’s goals and objectives must be their own and tailored to the mentee’s
developmental needs, yes but at the same time, they must tie back to
organizational objectives; and formal mentoring programs, if structured
and administered correctly, allow for exactly this.
11.9 GRIEVANCE HANDLING
Meaning of grievance:
According to Michael Julius, “A grievanc e can be any discontent or
dissatisfaction, whether Expressed or not, whether valid or not, and arising
out of anything connected with the company That an employee thinks,
believes, or even feels as unfair, unjust, or inequitable.”
“A grievance means a dis pute concerning terms and conditions of
the employment arising from any administrative decision which the
employee claims is in violation of Rights under, or a failure to apply,
established University personnel regulations, policies, o r practices, or
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An item that would not be considered as a "grievance" would be an
employee not receiving what he/she wanted or thought he/she deserved as
a salary.
GUIDELINES FOR HANDLING GRIEVANCES
 A grievance redressal cell must be constituted.
 All grievances should be considered important.
 The aggrieved party should be met in person and should be allowed
to express his grievance fully.
 A time frame should be laid for resolving the griev ance.
 It must be ensured that all procedural formalities relating to
grievance redressal have been complied with.
 All grievances should be put forth in writing.
 The redressal which the aggrieved employee is seeking must be
understood.
 The law pertaining to the grievance must be studied.
 A positive environment where the aggrieved employee may not
hesitate to air his grievance must be created.
 Organisations must have suggestion boxes at different places.
 All facts pertaining to the issue should be gathered in order to
understand the implication of the grievance.
Identification of grievance:
It is so beautifully described that good management redresses grievances
as they arise; Excellent management anticipates and prevents them from
arising. An effective manage r thus has to be proactive. A manager can
know about the problems even before they turn into actual Grievances
through several means such as:
Directive observation:
Knowledge of human behavior is requisite quality of every good manager.
From the changed be havior of employees, he should be able to snuff the
causes of grievances. This he can do without its knowledge to the
employee. This method will give general pattern of grievances. In addition
to normal routine, periodic interviews with the employees, grou p meetings
and collective bargaining are the specific occasions where direct
observation can help in unfolding the grievances
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Management Grip boxes:
The boxes (like suggestion boxes) are placed at easily accessible spots to
most employees in the organization. The em ployees can file anonymous
complaints about their dissatisfaction in these boxes. Due to anonymity,
the fear of managerial action is avoided. Moreover management’s interest
is also limited to the free and fair views of employees.
Open door policy:
Most dem ocratic by nature, the policy is preached most but practiced very
rarely in Indian organizations. But this method will be more useful in
absence of an effective grievance procedure; otherwise the organization
will do well to have a grievance procedure. Ope n door policy demands
that the employees, even at the lowest rank, should have easy access to the
chief executive to get his grievances redressed.
Exit interview:
Higher employee turnover is a problem of every organization. Employees
leave the organization either due to dissatisfaction or for better prospects.
Exit interviews may be conducted to know the reasons for leaving the job.
Properly conducted exit interviews can provide significant information
about the strengths and weaknesses of the organization and can pave way
for further improving the management policies for its labor force.
Opinion Survey:
The management can be proactive by conducting group meetings,
Periodical interviews with employees, collective bargaining sessions etc.
through which one c an get information about employees’ dissatisfaction
before it turns into a grievance.
11.10 GRIEVANCE PROCEDURE
Grievance procedure is a formal communication between an employee
and the management designed for the settlement of a grievance. The
grievance p rocedures differ from organization to organization.
Generally, grievance handling procedure involves a six -stage procedure,
which is stated as follows
Resolving by Immediate superior:
The aggrieved employee presents his grievance to his immediate superior .
The superior may take suitable action, if his is empowered to do so. If the
superior is not empowered to take appropriate action, he may take
permission from higher authorities to take suitable action to redress the
grievance.
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taken by the superior, the grievance is over. If he is not satisfied, he may
resort to the second stage.
Submit to department head:
If the concerned appointed person does not answer in stipulated time ore if
the aggrieved person is unsatisfied with the decision, he can approach the
departmental head who is supposed to answer within three days.
Grievance Committee:
On getting an unsatis factory response from the departmental head the
aggrieved person can approach grievance committee which has to
communicate its recommendation within three days.
Appeal for Revision:
If the decision of the management is not communicated to the aggrieved
employee within the stipulated period of 3 days, or if the management
decision is unsatisfactory, the employee has the right to appeal to the
management for revision. The management may review its decisions and
communicate its decision to the employee within 7 days of the
presentation of employee’s appeal for revision.
Voluntary Arbitrator:
The grievance may subsequently be referred to voluntary arbitrator if the
aggrieved party is not satisfied with the decision of the management. The
arbitrator is appointed with the mutual consultation between the
management and workers union. Both the parties may agree that the
decision of the arbitrator will be binding on both the parties. i.e.
management and the employee.
Final decision:
The arbitrator goes through the gri evance and the decision taken at the
earlier stages. He will hold deliberations with the management and the
workers union. Finally the arbitrator gives his ruling, which is normally
final and binding on both the parties.
Many grievances can be resolved qui ckly by correcting a
misunderstanding, or with a simple negotiation. In this case the grievance
procedure saves time, money, and the relationship between the parties.
Having the issue handled by those immediately involved is a benefit as
well, as they know more about the problem at hand than do people at
higher levels.
11.11 SUMMARY
Succession Planning is concerned with the preparing people to fill up
successive jobs. The purpose of succession planning is to develop people
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Management reasons as: superannuation, resignation, promotion, growth,
diversification, creation of new positions, etc.
Succession Planning focuses on preparing people to fill execution
positions. Succession planning is concerned with the examining
development needs of a firm’s strategic plans. Informally, it means high -
level managers identifying and developing their own replacements. The
employees having managerial attitude and potential may be considered for
development programme that wi ll help prepare them for the executive
jobs.
Your employer's grievance procedure may have more than three steps, but
it must include a written statement, meeting and appeal meeting.
11.12 SELF ASSESSMENT QUESTIONS
1. What is Succession Planning? How do the organiz ations plan for the
succession of the employees?
2. Explain the issues involved in the implementation of Succession
Planning? Can they be resolved? Give Examples.
3. Discuss the various elements of succession planning? Is there any
mechanism of justifying the el ements applied in the process of
succession planning?
4. Do the Indian Business Houses apply succession planning as the core
system to achieve the target of growth, expansion and diversification?
Explain giving examples.
5. Define the term Grievance Handling. Di scuss the procedure of
Grievance Handling.



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12
HEALTH AND SAFETY ASPECTS OF
HRM
Unit Structure:
12.0 Objectives
12.1 Introduction
12.2 Meaning and Significance of Employee Health and Safety
12.3 The Importance of Health and Safety
12.4 Summary
12.5 Self Assessment Questions
12.0 OBJECTIVES
After studying the unit the students will be able to:
 Know the meaning and significance of Employees’ health and safety.
 Explain the importance of health and safety.
 Explain the Role of the organization towards health and safety.
 Discuss about the procedure to prepare t he health and safety
programmme.
 Know the safety programmes in the organization.
12.1 INTRODUCTION
Since large number of employees spend great deal of their time in work
place, their work environment is not always good for their healthy life.
Stress, Strai ns, Mental and Psychological Conditions, Poor working
conditions, Long hours of work, Poor ventilation, Insanitation,
Malnutrition etc spoil their health. Efficiency in work place is possible
only when an employee is healthy on the other hand industry expo ses
workers to certain hazards which affect his health. The symptoms of bad
health are high rate of absenteeism and turnover, industrial discontent and
indiscipline, poor performance and low productivity. Modern industry is
characterized by complicated mec hanisms, intricate job requirements, and
fast moving production lines. One of the important consequences of all
this is increased dangers to human life, through accidents. To avoid this
safety programmes like industrial health programmes are introduced, bo th
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Management 12.2 MEANING AND SIGNIFICANCE OF EMPLOYEE
HEALTH AND SAFETY
 MEANING AND DEFINITION
The W.H.O has defined health as “a state of complete physical, mental
and social well -being and not merely the absence of disease or inf irmity.”
“Health and safety means safe working practices, following guidelines,
regulations and procedures, fire safety, and the maintenance of a safe
working environment”.
As defined by the World Health Organization (WHO) "occupational
health deals with a ll aspects of health and safety in the workplace and has
a strong focus on primary prevention of hazards."
Occupational health is a multidisciplinary field of healthcare concerned
with enabling an individual to undertake their occupation, in the way that
causes least harm to their health. Health has been defined as It contrasts,
for example, with the promotion of health and safety at work , which is
concerned with preventing harm from any incidental hazards, arising in
the workplace.
Industrial health refers to a system of public health and preventive
medicine which is applicable to industrial concerns.
According to the joint W.H.O Committee on Organisational Health,
industrial health is:
 the prevention and maintenance of physical, mental and well being of
workers in all occupations
 prevention among workers of ill -health caused by the working
conditions
 Protection of workers in their employment from risks resulting from
factors adverse to health, and
 Placing and maintenance of the worker in an occupational
environment adapted to his physical and psychological equipment.
 PHYSICAL HEALTH AND MENTAL HEALTH
Physical health implies prevention of disease or health conservation and
prevention of occupational disease. Health is the outcome of the
interaction between th e individual and his environment. Health not only
depends on the employee but also on the environment. Efficiency in work
is possible when the worker is healthy physically and mentally.
Industries exposes employees to certain hazards which he would not mee t
elsewhere and which may affect his health. Physical and mental health
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Health and Safety Aspects of
HRM In India, the Royal Commission on Labour (1931), the Labour
Investigation Committee (1946), the Health Survey and Development
committee (1943), the Labour Welfare Committee (1969) all emphasized
upon the “creation and maintenance of a healthy environment as possible,
in the homes of the people as well as in all places where they congregate
for work, amusement or recreation are essential”.
12.3 THE IMPORTANCE OF HEALTH AND SAFETY:
Following points explains the importance of Health and safety:
1. To overcome poverty : Healthy workers are productive and raise
healthy families; thu s healthy workers are a key strategy in
overcoming poverty. Safe workplaces contribute to sustainable
development which reduces the level of poverty.
2. Pollution control and exposure reduction: Health and safety
measures include the processes of protecting w orkers, surrounding
communities and the environment for future generations. Pollution
and environmental exposures arise from industrial processes are
hazardous to health. That can be beneficially influenced by
occupational health and safety programmes.
3. Hum an loss and suffering is immeasurable: A serious injury or
death happened at the workplace changes lives of that particular
family, friends, communities, and coworkers forever. Occupational
injuries and illnesses can provoke major crises for the families i n
which they occur. In addition to major financial burdens, they can
impose substantial time demands on uninjured family members.
Today, when many families are operating with very little free time,
family resources may be stretched to the breaking point.
4. Ensures that our beloved one is safe: We always think that beloved
one who leaves for work in the morning should expect to return
home at night in good health. Only the imagination of beloved one
will never be returning home or returning with any physical
disability is heart breaking for the family. When such thing happens
really it changes lives of the whole family forever. The Health and
Safety measures ensures that husbands return to their wives, wives to
their husbands, parents to their children, childre n to their parents and
friends to their friends in safe conditions. That is the most important
reason to create a safe and healthy work environment.
5. Reduces costs the business: If a worker is injured on the job, it
costs the company in lost work hours, inc reased insurance rates,
workers' compensation premiums and possible litigation.
Productivity is lost when other workers have to stop work to deal
with the injury. Even after the injured employee has been sent home
or taken to the hospital, other employees may be distracted or need
to take time off from work in the aftermath of the incident. Even a
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Management business. All these types of losses can be avoided by providing
health and safety environment to the employees.
6. Improves the employability of workers : Employee attrition and
absenteeism are the major obstacles in increasing productivity of the
business. When the employer provides safe and healthy environment
and safe workplace, it reduces the abov e issues on a great scale.
Such environment can be created in several ways like: Workplace
redesign, maintenance of a healthy and safe work environment,
training and retraining, assessment of work demands, medical
diagnosis, health screening and assessment of functional capacities
etc. By involving employees in safety decisions through reporting,
committees, walk troughs and meetings it has been showed that their
opinion matters to the company. By improving safety, the company
proves that it cares about the ir well -being. In such cases workers
typically respond by working harder, showing more pride in their
jobs and remaining loyal.
7. Safety improves quality: It has been proved that the companies that
put safety first turn out higher quality products. In some c ases, that’s
because a safe workplace tends to be a more efficient one, free of
debris and tangles of cords. In other cases, it’s a matter of focus. By
working in a clean, efficient environment, workers are able to reduce
distractions and truly focus on th e quality of what they do. It results
in better products that create customer loyalty, bigger margins and
increased sales.
Workplace safety creates the kind of productive, efficient, happy and
inspiring workplace we all want to be part of. It’s about creat ing a highly
profitable company. And that’s why it’s important.
Work Health and Safety Act 2011 : As per the sections of this law a
person conducting a business or undertaking must ensure the health and
safety of workers at work in the business or undertaki ng, so far as is
reasonably practicable. This act defines “Health to mean physical and
psychological health”.
As per this act the employer’s duty of care includes providing:
1. a physical and psycho social work environment without risks to
health and safety
2. safe systems of work
3. Information, training, instruction or supervision necessary to protect
all persons from risks to their health and safety.
This act monitors the health of workers and conditions at the workplace to
prevent illness or injury.
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Health and Safety Aspects of
HRM ORGANISATIO NAL ROLE TOWARDS SAFETY AND HEALTH
OF HUMAN RESOURCES
For the safety and health of human resource the organization has to take
proper decisions in the following cases:
1. To implement the safety and health management system: The
company has to have a system i .e. a policy, designate people and
clear procedures: to manage health and safety. The company having
more than five employees must set out a written health and safety
policy statement.
2. To provide appropriate financial, human, and organizational
resources: Every reasonable effort must be made to provide
adequate funding to protect the workplace safety and health of
employees. It may be necessary to prepare documentation to justify
expenses associated with hazard abatement. In addition, long term
planning and expert advice may be required. Costs can be minimized
with proper planning and research. Remember that financial
commitment to safety and health is a strong indicator of
management's overall commitment.
3. To issue a written safety and health policy as a cor e value of the
organization: A written safety and health policy clearly states the
company’s commitment to effective safety and health management
and in providing a safe and healthy working environment.
Communicating the organization’s commitment is as imp ortant as
the company’s statement.
4. To define roles, assigning responsibilities, establishing
accountability and delegating authority: The company must be
able to show how it is planning, organising, controlling, monitoring
and reviewing the preventative me asures.
5. To integrate: the safety and health goals/objectives into the
organization's business systems and processes.
6. To discuss safety and health processes and improvements
regularly during staff or employee meetings: Employee
involvement can help. When th ere are alternative ways to address a
hazard, effective managers have found that involving employees in
discussions of methods can identify useful prevention and control
measures, serve as a means for communicating the rationale for
decisions made, and enc ourage employee acceptance of the
decisions.
7. To ensure: management is held accountable for accident prevention
processes.
8. To assess the success of the safety and health processes
manually: Evaluation of the safety and health system is essential for
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Human Resource
Management objectives the company established. Evaluation seeks to assess the
safety and health activities, controls and procedures and determine if
goals are being met, hazards being corrected and other
improvement s in the system are being made. Evaluations should be
conducted annual.
9. To encourage: employees to take an active part in maintaining a
safe and healthy workplace An employer should ensure that all
employees understand the hazards to which they may be expo sed
and how to prevent harm to themselves and others from exposure to
these hazards. A thorough understanding of the hazards and their
prevention will affect employee acceptance and use of established
safety and health protections. Training for this purpos e is reinforced
by encouraging attempts to work safely and by positive recognition
of safe behavior.
10. To follow: established safety and health rules and procedures.
11. To discuss: openly safety and health issues with employees during
periodic tours or meetings or by visiting personally visiting the work
place. When employees notice that the manager “walking around”
them or discussing about their work, they realize that manager is
taking care of them.
12. To establish a system for effective communication: Every
organization’s approach to managing safety and health includes
verbal and written communication as a two -way process between
employer and employees. Regular safety and health communication
keeps employees informed and invites feedback and suggestions.
13. To recog nize employees for their safety and health efforts:
Employees are a company’s most valuable asset, and top
management should recognize employees for their efforts. and
achievements. A recognition system provides a good counter balance
to a disciplinary sys tem by focusing on the positive and motivates
employees to practice safety and health work habits. A recognition
system can be very simple and inexpensive.
ISSUES / FACTORS AND ROLE OF HR DEPARTMENT IN
EMPLOYS HEALTH AND SAFETY
Organizations frame many app roaches to ensure health and safety of their
employees. But not all of the approaches focus on contribution of both
work design and employee behavior to safety. An organizational approach
to safety is effective only when both the work design and employee
behavior work in coordination towards it. Many organizational and
individual issues emerge in management of employee health and safety.

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