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Chapter 1 Introduction to human resource management

Definition - Edwin
Flippo defies HRM as
planning, organizing, directing, controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual, organizational and social
obectives are achieved!"
Features of HRM or characteristics or nature
#! HRM involves management functions li$e planning, organizing, directing and controlling
%! &t involves procurement, development, maintenance of human resource
'! &t helps to achieve individual, organizational and social obectives
(! HRM is a might) disciplinar) subect! &t includes the stud) of management ps)cholog)
communication, economics and sociolog)!
*! &t involves team spirit and team wor$!
+cope of HRM,functions of HRM
-he scope of HRM refers to all the activities that come under the banner of HRM! -hese activities are as
#! Human resources planning .-
Human resource planning or HR/ refers to a process b) which the compan) to identif) the
number of obs vacant, whether the compan) has e0cess staff or shortage of staff and to deal with
this e0cess or shortage!
%! 1ob anal)sis design .-
2nother important area of HRM is ob anal)sis! 1ob anal)sis gives a detailed e0planation
about each and ever) ob in the compan)! 3ased on this ob anal)sis the compan) prepares
'! Recruitment and selection .-
3ased on information collected from ob anal)sis the compan) prepares advertisements and
publishes them in the news papers! -his is recruitment! 2 number of applications are received after
the advertisement is published, interviews are conducted and the right emplo)ee is selected thus
recruitment and selection are )et another important area of HRM!
(! 4rientation and induction .-
4nce the emplo)ees have been selected an induction or orientation program is conducted! -his is
another important area of HRM! -he emplo)ees are informed about the bac$ground of the compan),
e0plain about the organizational culture and values and wor$ ethics and introduce to the other
*! -raining and development .-
Ever) emplo)ee goes under training program which helps him to put up a better performance on
the ob! -raining program is also conducted for e0isting staff that have a lot of e0perience! -his is called
refresher training! -raining and development is one area were the compan) spends a huge amount!
5! /erformance appraisal .-
4nce the emplo)ee has put in around # )ear of service, performance appraisal is conducted that
is the HR department chec$s the performance of the emplo)ee! 3ased on these appraisal future
promotions, incentives, increments in salar) are decided!
6! 7ompensation planning and remuneration .-
-here are various rules regarding compensation and other benefits! &t is the ob of the HR
department to loo$ into remuneration and compensation planning!
8! Motivation, welfare, health and safet) .-
Motivation becomes important to sustain the number of emplo)ees in the compan)! &t is the
ob of the HR department to loo$ into the different methods of motivation! 2part from this certain
health and safet) regulations have to be followed for the benefits of the emplo)ees! -his is also
handled b) the HR department!
9! &ndustrial relations .-
2nother important area of HRM is maintaining co-ordinal relations with the union members!
-his will help the organization to prevent stri$es loc$outs and ensure smooth wor$ing in the compan)!
7hallenges before the HR manager,before modern personnel management
/ersonnel management which is $now as human resource management has adapted itself to the changing
wor$ environment, however these changes are still ta$ing place and will continue in the future therefore the
challenges before the HR manager are
#! Retention of the emplo)ees .-
4ne of the most important challenge the HR manager faces is retention of labour force!
Man) companies have a ver) high rate of labour turnover therefore HR manager are re:uired to ta$e
some action to reduce the turnover
%! Multicultural wor$ force .-
;ith the number of multi cultural companies are increasing operations in different nations!
-he wor$ force consists of people from different cultures! Dealing with each of the needs which are
different the challenge before the HR manager is integration of multicultural labour wor$ force!
'! ;omen in the wor$ force .-
-he number of women who have oined the wor$ force has drasticall) increased over a few
)ears! ;omen emplo)ees face totall) different problems! -he) also have responsibilit) towards the
famil)! -he organization needs to consider this aspect also! -he challenge before the HR manager
lies in creating gender sensitivit) and in providing a good wor$ing environment to the women
(! Handicapped emplo)ees .-
-his section of the population normall) faces a lot of problems on the ob, ver) few
organization have obs and facilities speciall) designed for handicapped wor$ers! -herefore the
challenge before the HR manager lies in creating atmosphere suitable for such emplo)ees and
encouraging them to wor$ better!
*! Retrenchment for emplo)ees .-
&n man) places companies have reduced the wor$ force due to changing economic
situations, labourers or wor$ers who are displaced face sever problems! &t also leads to a negative
atmosphere and attitude among the emplo)ees! -here is fear and increasing resentment against the
management! -he challenge
before the HR manager lies in implementing the retrenchment polic) without hurting the
sentiments of the wor$ers, without antagonizing the labour union and b) creating positive attitude
in the e0isting emplo)ees!
5! 7hange in demand of government .-
Most of the time government rules $eep changing! ;hile a lot of freedom is given to
companies some strict rules and regulations have also been passed! -he government has also
underta$en the disinvestment in certain companies due to which there is fear among the emplo)ees
regarding their ob! -he challenge before the HR manager lies in convincing emplo)ees that their
interest will not be sacrificed!
6! &nitiating the process of change .-
7hanging the method of wor$ing, changing the attitude of people and changing the
perception and values of organization have become necessar) toda)! 2lthough the compan) ma)
want to change it is actuall) ver) difficult to ma$e the wor$ers accept the change! -he challenge
before the HR manager is to ma$e people accept change!
Chapter 2 Job analysis, job design, job evolution
Define ob anal)sis
2 ob is defined as a collection of duties and responsibilities which are given together to an individual
emplo)ee! 1ob anal)sis is the process of stud)ing and collecting information relating to operations and
responsibilities of a specific ob!
<eed,importance,purpose,benefits of ob anal)sis
Def. - 2 ob is defined as a collection of duties and responsibilities which are given together to an individual
emplo)ee! 1ob anal)sis is the process of stud)ing and collecting information relating to operations and
responsibilities of a specific ob!
-he following are the benefits of ob anal)sis!
#! 4rganizational structure and design .-
1ob anal)sis helps the organization to ma$e suitable changes in the organizational structure,
so that it matches the needs and re:uirements of the organization! Duties are either added or deleted
from the ob!
%! Recruitment and selection .-
1ob anal)sis helps to plan for the future human resource! &t helps to recruit and select the
right $ind of people! &t provides information necessar) to select the right person!
'! /erformance appraisal and training,development .-
3ased on the ob re:uirements identified in the ob anal)sis, the compan) decides a training
program! -raining is given in those areas which will help to improve the performance on the ob!
+imilarl) when appraisal is conducted we chec$ whether the emplo)ee is able to wor$ in a manner
in which we re:uire him to do the ob!
(! 1ob evaluation .-
1ob evaluation refers to stud)ing in detail the ob performance b) all individual! -he
difficult) levels, s$ills re:uired and on that basis the salar) is fi0ed! &nformation regarding :ualities
re:uired, s$illed levels, difficult) levels are obtained from ob anal)sis!
*! /romotions and transfer .-
;hen we give a promotion to an emplo)ee we need to promote him on the basis of the s$ill
and talent re:uired for the future ob! +imilarl) when we transfer an emplo)ee to another branch the
ob must be ver) similar to what he has done before! -o ta$e these decisions we collect information
from ob anal)sis!
5! 7areer path planning .-
Man) companies have not ta$en up career planning for their emplo)ees! -his is done to
prevent the emplo)ee from leaving the compan)! ;hen we plan the future career of the emplo)ee,
information will be collected from ob anal)sis! Hence ob anal)sis becomes important or
6! =abour relations .-
;hen companies plan to add e0tra duties or delete certain duties from a ob, the) re:uire
the help of ob anal)sis, when this activit) is s)stematicall) done using ob anal)sis the number of
problems with union members reduce and labour relations improve!
8! Health and safet) .-
Most companies prepare their own health and safet), plans and programs based on ob
anal)sis! From the ob anal)sis compan) identifies the ris$ factor on the ob and based on the ris$
factor safet) e:uipments are provided!
9! 2cceptance of ob offer .-
;hen a person is given an offer,appointment letter the duties to be performed b) him are
clearl) mentioned in it, this information is collected from ob anal)sis, which is wh) ob anal)sis
becomes important!
Methods of ob anal)sis
Def. - 2 ob is defined as a collection of duties and responsibilities which are given together to an individual
emplo)ee! 1ob anal)sis is the process of stud)ing and collecting information relating to operations and
responsibilities of a specific ob!
-here are different methods used b) organization to collect information and conduct the ob anal)sis!
-hese methods are
#! /ersonal observation .-
&n this method the observer actuall) observes the concerned wor$er! He ma$es a list of all
the duties performed b) the wor$er and the :ualities re:uired to perform those duties based on the
information collected, ob anal)sis is prepared!
%! 2ctual performance of the ob .-
&n this method the observer who is in charge of preparing the ob anal)sis actuall) does the
wor$ himself! -his gives him an idea of the s$ill re:uired, the difficult) level of the ob, the efforts
re:uired etc!
'! &nterview method .-
&n this method an interview of the emplo)ee is conducted! 2 group of e0perts conduct the
interview! -he) as$ :uestions about the ob, s$illed levels, and difficult) levels! -he) :uestion and cross
:uestion and collect information and based on this information ob anal)sis is prepared!
(! 7ritical incident method .-
&n this method the emplo)ee is as$ed to write one or more critical incident that has ta$en place
on the ob! -he incident will give an idea about the problem, how it was handled, :ualities re:uired and
difficult) levels etc! critical incident method gives an idea about the ob and its importance! >a critical
means important and incident means an)thing which ta$es place in the ob?
*! @uestioner method .-
&n this method a :uestioner is provided to the emplo)ee and the) are as$ed to answer the
:uestions in it! -he :uestions ma) be multiple choice :uestions or open ended :uestions! -he :uestions
decide how e0actl) the ob anal)sis will be done! -he method is effective because people would thin$
twice before putting an)thing in writing!
5! =og records .- >% mar$s concept?
7ompanies can as$ emplo)ees to maintain log records and ob anal)sis can be done on the basis
of information collected from the log record! 2 log record is a boo$ in which emplo)ees record ,write all
the activities performed b) them on the ob! -he records are e0tensive as well as e0hausted in nature and
provide a fair idea about the duties and responsibilities in an) ob!
6! HRD records .-
Records of ever) emplo)ee are maintained b) HR department! -he record contain details
about educational :ualification, name of the ob, number of )ears of e0perience, duties handled, an)
mista$es committed in the past and actions ta$en, number of promotions received, area of wor$, core
competenc) area, etc! based on these records ob anal)sis can be done!
1ob design
Definitions. -
1ob design is the process of
a? Deciding the contents of the ob!
b? Deciding methods to carr) out the ob!
c? Deciding the relationship which e0ists in the organization! 1ob anal)sis helps to develop
ob design and ob design matches the re:uirements of the ob with the human :ualities re:uired to
do the ob!
Methods of ob design
-here are various methods in which ob design can be carried out! -hese methods help to
anal)sis the ob, to design the contents of the and to decide how the ob must be carried out !these methods
are as follows .- >* mar$s each?
&! 1ob rotation
&&! 1ob enlargement
&&&! 1ob enrichment
&! 1ob Rotation .-
1ob rotation involves shifting a person from one ob to another, so that he is able to
understand and learn what each ob involves! -he compan) trac$s his performance on ever) ob and
decides whether he can perform the ob in an ideal manner! 3ased on this he is finall) given a
particular posting!
1ob rotation is done to decide the final posting for the emplo)ee e!g! Mr! 2 is assigned to the
mar$eting department whole he learns all the obs to be performed for mar$eting at his level in the
organization !after this he is shifted to the sales department and to the finance department and so on!
He is finall) placed in the department in which he shows the best performance
&&! 1ob enlargement .-
1ob enlargement is another method of ob design when an) organization wishes to adopt
proper ob design it can opt for ob enlargement! 1ob enlargement involves combining various
activities at the same level in the organization and adding them to the e0isting ob! &t increases the
scope of the ob! &t is also called the horizontal e0pansion of ob activities!
1on enlargement can be e0plained with the help of the following e0ample - &f Mr! 2 is
wor$ing as an e0ecutive with a compan) and is currentl) performing ' activities on his ob after ob
enlargement or through ob enlargement we add ( more activities to the e0isting ob so now Mr! 2
performs 6 activities on the ob!
&t must be noted that the new activities which have been added should belong to the same
hierarch) level in the organization! 3) ob enlargement we provide a greater variet) of activities to the
individual so that we are in a position to increase the interest of the ob and ma$e ma0imum use of
emplo)eeAs s$ill! 1ob enlargement is also essential when policies li$e BR+ are implemented in the
&&&! 1ob enrichment .-
1ob enrichment is a term given b) Fedric herzberg! 2ccording to him a few motivators are
added to a ob to ma$e it more rewarding, challenging and interesting! 2ccording to herzberg the
motivating factors enrich the ob and improve performance!
&n other words we can sa) that ob enrichment is a method of adding some motivating factors
to an e0isting ob to ma$e it more interesting! -he motivating factors can be
a? Civing more freedom!
b? Encouraging participation!
c? Civing emplo)ees the freedom to select the method of wor$ing!
d? 2llowing emplo)ees to select the place at which the) would li$e to wor$!
e? 2llowing wor$ers to select the tools that the) re:uire on the ob!
f? 2llowing wor$ers to decide the la)out of plant or office!
1ob enrichment gives lot of freedom to the emplo)ee but at the same time increases the
responsibilit)! +ome wor$ers are power and responsibilit) hungr)! 1ob enrichment satisfies the needs
of the emplo)ees!
Human resource planning/manpower planning
Def! of human resource planning .-
Human resource planning can be defined as the process of identif)ing the number of people re:uired
b) an organization in terms of :uantit) and :ualit)! 2ll human resource management activities start with
human resource planning! +o we can sa) that human resource planning is the principle,primar) activit) of
human resource management!
From human resource planning the organization identifies how man) people it has currentl) and
how man) people will be re:uired in future! 3ased on this information maor human resource decisions
are ta$en!
/rocess of HR/,M/,,steps in HR/,M/
Human resource planning can be defined as the process of identif)ing the number of people re:uired
b) an organization in terms of :uantit) and :ualit)! 2ll human resource management activities start with
human resource planning! +o we can sa) that human resource planning is the principle,primar) activit) of
human resource management!
#! /ersonnel re:uirement forecast .-
-his is the ver) first step in HR/ process! Here the HR/ department finds out department wise
re:uirements of people for the compan)! -he re:uirement consists of number of people re:uired as
well as :ualification the) must posses!
%! /ersonnel suppl) forecast .-
&n this step, HR department finds out how man) people are actuall) available in the
departments of the compan)! -he suppl) involves,includes number of people along with their
'! 7omparison.-
3ased on the information collected in the #
and %
step, the HR department ma$es a
comparison and finds out the difference! -wo possibilities arise from this comparison
a! <o difference .-
&t is possible that personnel re:uirement D personnel supplied! &n this case there is no
difference! Hence no change is re:uired!
b! Ees, there is a difference .-
-here ma) be difference between suppl) and re:uirement! -he difference ma)
i! /ersonnel surplus
ii! /ersonnel shortage
(! /ersonnel surplus .-
;hen the suppl) of personnel is more than the re:uirement, we have personnel surplus! ;e
re:uire #FF people, but have #%* people! -hat is we have a surplus of %* people! +ince e0tra emplo)ees
increase e0penditure of compan) the compan) must tr) to remove e0cess staff b) methods of
i! =a)off
ii! -ermination
iii! BR+,7R+
*! /ersonnel shortage .-
;hen suppl) is less than the re:uirement, we have personnel shortage! ;e re:uire #FF peopleG
we have onl) 6* i!e! we are short of %* people! &n such case the HR department can adopt methods li$e
4vertime, Recruitment, +ub-contracting to obtain new emplo)ee
2dvantages of HR/,need,importance,role,benefits
Human resource planning can be defined as the process of identif)ing the number of people re:uired
b) an organization in terms of :uantit) and :ualit)! 2ll human resource management activities start with
human resource planning! +o we can sa) that human resource planning is the principle,primar) activit) of
human resource management!
-he process of HR/ pla)s a ver) important role in the organization! -he importance of HR/
can be e0plained as follows!
#! 2nticipating future re:uirement .-
-hru this process of HR/, the compan) is able to find out how man) people will be
re:uired in future! 3ased on this re:uirement the compan) could ta$e further actions! -his method
also helps the compan) to identif) the number of obs which
will become vacant in the near future!
%! Recruitment and selection process .-
-he recruitment and selection process is a ver) costl) affair for a compan)! Man)
companies spend la$hs of rupees on this process! -herefore recruitment and selection must be
carried out onl) if it is e0tremel) necessar)! HR/ process helps to identif) whether recruitment and
selection are necessar) or not!
'! /lacement of personnel .-
+ince the HR/ process is conducted for the entire organization, we can identif) the
re:uirements for each and ever) department! 3ased on the re:uirement, we can identif) e0isting
emplo)ees and place them on those obs which are vacant!
(! /erformance appraisal .-
HR/ ma$e performance appraisal more meaningful! +ince feedbac$ is provided in
performance appraisal and emplo)ee is informed about his future chances in same compan), the
emplo)ee is motivated to wor$ better! &nformation for all this is collected from HR/ process!
*! /romotion opportunit) .-
HR/ identifies vacancies in the entire organization including all the branches of all the
compan)! -herefore when the compan) implements promotion polic) it can underta$e its activities
in a ver) smooth manner!

Recruitment selection and induction
Define recruitment .-
Recruitment is a process of searching for prospective emplo)ees and stimulating them to appl)
for obs!
4bectives of recruitment
Recruitment fulfills the following obectives
#! &t reviews the list of obectives of the compan) and tries to achieve them b) promoting the
compan) in the minds of public!
%! &t forecasts how man) people will be re:uired in the compan)!
'! &t enables the compan) to advertise itself and attract talented people!
(! &t provides different opportunities to procure human resource!
Methods of recruitment,sources >#F,* mar$s?
Recruitment is a process of searching for prospective emplo)ees and stimulating them to appl)
for obs
7ompanies can adopt different methods of recruitment for selecting people in the
compan)! -hese methods are
#! &nternal sources
%! E0ternal sources
-he sources can be further e0plained with the help of following diagram
+ources of recruitment >manpower suppl)?
Internal source !ternal sources
#! /romotion #! Management consultant
%! Departmental e0am %! Emplo)ment agenc)
'! -ransfer '! 7ampus recruitment
(! Retirement (! <ews paper advertisement
*! &nternal advertisement *! &nternet advertisement
5! Emplo)ee recommendation 5! ;al$ in interview
&nternal sources of recruitment .-
&nternal sources of recruitment refer to obtaining people for ob from inside the compan)! -here are
different methods of internal recruitment
#! /romotion .-
7ompanies can give promotion to e0isting emplo)ees! -his method of recruitment saves a
lot of time, mone) and efforts because the compan) does not have to train the e0isting emplo)ee!
+ince the emplo)ee has alread) wor$ed with the compan)! He is familiar with the wor$ing culture
and wor$ing st)le! &t is a method of encouraging efficient wor$ers!
%! Departmental e0am .-
-his method is used b) government departments to select emplo)ees for higher level posts!
-he advertisement is put up on the notice board of the department! /eople who are interested must
send their application to the HR department and appear for the e0am! +uccessful candidates are
given the higher level ob! -he method ensures proper selection and impartialit)!
'! -ransfer .-
Man) companies adopt transfer as a method of recruitment! -he idea is to select talented
personnel from other branches of the compan) and transfer them to branches where there is
shortage of people!
(! Retirement .-
Man) companies call bac$ personnel who have alread) retired from the organization! -his
is a temporar) measure! -he method is beneficial because it gives a sense of pride to the retired
when he is called bac$ and helps the organization to reduce recruitment selection and training cost!
*! &nternal advertisement .-
&n this method vacancies in a particular branch are advertised in the notice board! /eople who
are interested are as$ed to appl) for the ob! -he method helps in obtaining people who are read) to
shift to another branch of the same compan) and it is also beneficial to people who want to shift to
another branch!
5! Emplo)ee recommendation .-
&n this method emplo)ees are as$ed to recommend people for obs! +ince the emplo)ee is
aware of the wor$ing conditions inside the compan) he will suggest people who can adust to the
situation! -he compan) is benefited because it will obtain!
2dvantages of internal recruitment
#! &nternal methods are time saving!
%! <o separate induction program is re:uired!
'! -he method increases lo)alt) and reduces labour turnover!
(! -his method is less e0pensive!
Disadvantages of internal recruitment
#! -here is no opportunit) to get new talent in this method!
%! -he method involves selecting people from those available in the compan) so there is limited
scope for selection!
'! -here are chances of biased and partialit)!
(! 7hances of emplo)ee discontent are ver) high!
E0ternal methods,sources of recruitment
E0ternal sources of recruitment refer to methods of recruitment to obtain people from outside the compan)!
-hese methods are
#! Management consultant .-
Management consultant helps the compan) b) providing them with managerial personnel,
when the compan) is on the loo$ out for entr) level management trainees and middle level
managers! -he) generall) approach management consultants!
%! Emplo)ment agencies .-
7ompanies ma) give a contract to emplo)ment agencies that search, interview and obtain the
re:uired number of people! -he method can be used to obtain lower level and middle level staff!
'! 7ampus recruitment .-
;hen companies are in search of fresh graduates or new talent the) opt for campus
recruitment! 7ompanies approach colleges, management, technical institutes, ma$e a presentation
about the compan) and the ob and invite applications! &nterested
candidates who have applied are made to go through a series of selection test and interview
before final selection!
(! <ews paper advertisement .-
-his is one of the oldest and most popular methods of recruitment! 2dvertisements for the
ob are given in leading news papersG the details of the ob and salar) are also mentioned!
7andidates are given a contact address where their applications must be sent and are as$ed to send
their applications within a specified time limit! -he method has ma0imum reach and most preferred
among all other methods of recruitment!
*! &nternet advertisement .-
;ith increasing importance to internet, companies and candidates have started using the
internet as medium of advertisement and search for obs! -here are various ob sites li$e
nau$ri!com and monster!com etc! candidates can also post their profiles on these sites! -his method
is growing in popularit)!
5! ;al$ in interview .-
2nother method of recruitment which is gaining importance is the wal$ in interview method!
2n advertisement about the location and time of wal$ in interview is given in the news paper!
7andidates re:uire to directl) appearing for the interview and have to bring a cop) of their 7!B! with
them! -his method is ver) popular among 3!/!4 and call centers!
2dvantages of e0ternal recruitment
#! -here is influ0 of new talent in the method!
%! -he method encourages more and more competition!
'! -here is lesser chance of partialit) through this method!
(! &f options li$e campus recruitment have been e0ercised we get a chance to emplo) fresh
graduates, thus increasing emplo)ment!
Disadvantages of e0ternal recruitment
#! -he method is costl) because it involves recruitment cost, selection, training cost!
%! -he method is time consuming!
'! -he method reduces lo)alt) to the compan)!
Define selection .-
+election can be defined as process of choosing the right person for the right ob!
/rocess of selection .- >#F mar$s?
-he process of selection is different in different companiesG however a general procedure of
selection can be framed! -his process of selection can be e0plained with the help of following diagram
"rocess o# selection
1ob anal)sis
2pplication blan$,form
;ritten test
Medical e0amination
&nitial ob offer
2cceptance,reection letter
Final offer,letter of appointment
#! 1ob anal)sis .-
-he ver) first step in the selection procedure is the ob anal)sis! -he HR department
prepares the ob description and specification for the obs which are vacant! -his gives details for
the obs which are vacant! -his gives details about the name of the ob, :ualification, :ualities
re:uired and wor$ conditions etc!
%! 2dvertisement .-
3ased on the information collected in step #, the HR department prepares an advertisement and
publishes it in a leading news papers! -he advertisement conve)s details about the last date for
application, the address to which the application must be sent etc!
'! 2pplication blan$,form .-
2pplication blan$ is the application form to be filled b) the candidate when he applies for a ob
in the compan)! -he application blan$ collects information consisting of ( parts- #? /ersonal details %?
Educational details '? ;or$ e0perience (? Famil) bac$ground!
(! ;ritten test .-
-he application which have been received are screened b) the HR department and those
applications which are incomplete are reected! -he other candidates are called for the written test!
2rrangement for the written test is loo$ed after the HR department i!e! :uestion papers, answer papers,
e0amination centers and hall tic$ets etc!
*! &nterview .-
7andidates who have successfull) cleared the test are called for an interview! -he entire
responsibilit) for conducting the interview lies with the HR department i!e! the) loo$ after the panel of
interviewers, refreshments, informing candidates etc!
5! Medical e0amination .-
-he candidates who have successfull) cleared the interview are as$ed to ta$e a medical e0am!
-his medical e0am ma) be conducted b) the organization itself >arm)?! -he organization ma) have a tie
up with the hospital or the candidate ma) be as$ed to get a certificate from his famil) doctor!
6! &nitial ob offer .-
7andidates who successfull) clear the medical e0am are given an initial ob offer b) the
compan) stating the details regarding salar), terms of emplo)ment, emplo)ment bond if an) etc! -he
candidate is given some time to thin$ over the offer and to accept or reect!
8! 2cceptance, reection .-
7andidates who are happ) with the offer send their acceptance within a specified time limit to show that
the) are read) to wor$ with the compan)!
9! =etter of appointment,final ob offer .-
7andidates who send their acceptance are given the letter of appointment! -he letter will state the name
of the ob! -he salar) and other benefits, number of medical leaves and casual leaves, details of
emplo)ment bond if an) etc! &t will also state the date on which the emplo)ee is re:uired to start
dut) in the compan)!
#F! &nduction .-
4n the date of oining the emplo)ee is introduced to the compan) and other emplo)ees through am
elaborate induction program!
$raining and %evelopment
Define training,development,managerial,e0ecutive development program .- >% mar$s concept?
-raining is defined b) ;a)ne 7ascio as training consists of planed programs underta$en to
improve emplo)ee $nowledge, s$ills, attitude, and social behavior so that the performance of the
organization improves considerabl)!"
-raining is normall) viewed as a short process! &t is applied to technical staff, lower, middle, senior
level management! ;hen applied to lower and middle management staff it is called as training and for
senior level it is called managerial development program,e0ecutive development program,development
4bectives,purpose,goals of training and development
-raining is defined b) ;a)ne 7ascio as training consists of planed programs underta$en to
improve emplo)ee $nowledge, s$ills, attitude, and social behavior so that the performance of the
organization improves considerabl)!"
-he purpose of training and development can be e0plained as follows!
#! &mproving :ualit) of wor$ force .-
-raining and development help companies to improve the :ualit) of wor$ done b) their
emplo)ees! -raining programs concentrate on specific areas! -here b) improving the :ualit) of
wor$ in that area!
%! Enhance emplo)ee growth .-
Ever) emplo)ee who ta$es development program becomes better at his ob! -raining
provides perfection and re:uired practice, therefore emplo)eeAs area able to develop them
'! /revents obsolescence .-
-hrough training and development the emplo)ee is up to date with new technolog) and
the fear of being thrown out of the ob is reduced!
(! 2ssisting new comer .-
-raining and development programs greatl) help new emplo)ees to get accustomed to
new methods of wor$ing, new technolog), the wor$ culture of the compan) etc!
*! 3ridging the gap between planning and implementation .-
/lans made b) companies e0pect people to achieve certain targets within certain time limit
with certain :ualit) for this emplo)ee performance has to be accurate and perfect! -raining helps
in achieving accurac) and perfection!
5! Health and safet) measures .-
-raining and development program clearl) identifies and teaches emplo)ees about the
different ris$ involved in their ob, the different problems that can arise and how to prevent such
problems! -his helps to improve the health and safet) measures in the compan)!
Methods of training operating personnel,factor) wor$ers >* mar$s imp?
-raining is defined b) ;a)ne 7ascio as training consists of planed programs underta$en to improve
emplo)ee $nowledge, s$ills, attitude, and social behavior so that the performance of the organization
improves considerabl)!"
-here are different methods of training for operating personnel >factor) wor$ers?! -raining these
wor$ers becomes important because the) handle e:uipment worth crores of rupees! -he different methods
can be e0plained with the help of following diagram!
Methods of training operating personnel
4n the ob 2pprenticeship Bestibule 1ob rotation
method method method method method
#! 4n the ob training method .-
&n this method wor$ers who have to be trained are ta$en to the factor), divided into groups and
one superior is allotted to ever) group! -his superior or supervisor first demonstrates how the e:uipment
must be handled, and then the wor$er is as$ed to repeat whatever he has observed in the presence of the
supervisor! -his method ma$es it eas) for the emplo)ee to learn the details about specific e:uipment!
4nce the wor$er studies the first e:uipment thoroughl) the supervisor moves on to the ne0t e:uipment
and so on!
%! 2pprenticeship training .-
&n this method both theor) and practical session are conducted! -he emplo)ee is paid a stipend
until he completes training! -he theor) sessions give theoretical information about the plant la)out, the
different machines, their parts and safet) measures etc! -he practical sessions give practical training in
handling the e:uipment! -he apprentice ma) or ma) not be continued on the ob after training!
'! Bestibule training .-
&n this method of training an atmosphere which is ver) similar to the real ob atmosphere is
created! -he surroundings, e:uipment, noise level will be similar to the real situation! ;hen an emplo)ee
is trained under such conditions he gets an idea about what the real ob situation will be li$e! +imilarl)
when he actuall) starts doing the ob he will not feel out of place! -his method is used to train pilots and
astronauts! &n some places graphics are also used to create the artificial surroundings! -his method
involves heav) investment!
(! 1ob rotation .-
&n this method the person is transferred from one e:uipment to the other for a fi0ed amount of
time until he is comfortable with all the e:uipments! 2t the end of the training the emplo)ee becomes
comfortable with all the e:uipment! He is then assigned a specific tas$!
*! 7lassroom method .-
&n this method the training is given in the classroom! Bideo, clippings, slides, charts, diagrams
and artificial modules etc are used to give training!
4n the ob method .-
4n the ob method refers to training given to personnel inside the compan)! -here are different
methods of on the ob training!
#! 1ob rotation .-
-his method enables the compan) to train managerial personnel in departmental wor$!
-he) are taught ever)thing about the department! +tarting from the lowest level ob in the
department to the highest level ob! -his helps when the person ta$es over as a manager and is
re:uired to chec$ whether his uniors are doing the ob properl) or not! Ever) minute detail is
%! /lanned progression .-
&n this method uniors are assigned a certain ob of their senior in addition to their own ob!
-he method allows the emplo)ee to slowl) learn the ob of his senior so that when he is promoted to
his senior ob it becomes ver) eas) for him to adust to the new situation! &t also provides a chance to
learn higher level obs!
'! 7oaching and counseling .-
7oaching refers to actuall) teaching a ob to a unior! -he senior person who is the coach
actuall) teaches his unior regarding how the wor$ must be handled and how decisions must be
ta$en, the different techni:ues that can be used on the ob, how to handle pressure! -here is active
participation from the senior!
7ounseling refers to advising the unior emplo)ee as and when he faces problems! -he
counselor superior pla)s an advisor) role and does not activel) teach emplo)ees!
(! Hnder stud) .-
&n this method of training a unior is deputed to wor$ under a senior! He ta$es orders from the
senior, observes the senior, attends meetings with him, learns about decision ma$ing and handling of
da) to da) problems! -he method is used when the senior is on the verge of retirement and the ob
will be ta$en over b) the unior!
*! 1unior board .-
&n this method a group of unior level managers are identified and the) wor$ together in a
group called unior board! -he) function ust li$e the board of directors! -he) identif) certain
problem, the) have to stud) the problem and provide suggestions!
4ff the ob training method .-
4ff the ob training refers to method of training given outside the compan)! -he different methods
adopted here are
#! 7lassroom method .-
-he classroom method is used when a group of managers have to be trained in theoretical
aspects! -he training involves using lectures, audio visuals, case stud), role pla) method, group
discussions etc! -he method is interactive and provides ver) good results!
%! +imulation .-
+imulation involves creating atmosphere which is ver) similar to the original wor$
environment! -he method helps to train manager handling stress, ta$ing immediate decisions,
handling pressure on the obs etc! 2n actual feel of the real ob environment is given here!
'! 3usiness games
-his method involves providing a mar$et situation to the trainee manager and as$ing him to
provide solutions! &f there are man) people to be trained the) can be divided into groups and each
group becomes a separate team and pla) against each other!
(! 7ommittee .-
2 committee refers to a group of people who are officiall) appointed to loo$ into a
problem and provide solution! -rainee managers are put in the committee to identif) how the)
stud) a problem and what the) learn from it!
*! 7onference .-
7onferences are conducted b) various companies to have elaborate discussions on
specific topics! -he compan) which organizes the conference invites trainee manager and calls
for e0perts in different fields to give presentation or lecture! -he trainee manager can as$ their
doubts to these e0perts and understand how problems can be solved on the ob!
5! Readings .-
-his method involves encouraging the trainee manager to increase his reading related to his
subect and then as$ him to ma$e a presentation on what he has learned! &nformation can be
collected b) trainee manager from boo$s, magazines and internet etc!
6! &n bas$et training .-
&n this method the training is given to the manager to handle files coming in and to finish his
wor$ and ta$e decisions within a specified time limit! -he trainee manager is taught how to prioritize
his wor$, the activities which are important for his ob and how to ta$e decisions within limited time
-raining procedure,process of training .-
-raining is defined b) ;a)ne 7ascio as training consists of planed programs underta$en to improve
emplo)ee $nowledge, s$ills, attitude, and social behavior so that the performance of the organization
improves considerabl)!"
Ever) compan) has a specific training procedure, depending upon its re:uirements! 2 general
training procedure is e0plained below along with diagram
"rocess/procedure o# training
Determining training need of emplo)ee
+elect a target group for training
/reparing trainers
Developing training pac$ages
Follow up
#! Determining training needs of emplo)ee .-
&n the ver) #
step of training procedure, the HR department, identifies the number of people
re:uired training, specific area in which the) need training, the age group of emplo)ee, the level in
organization etc! in some cases the emplo)ee ma) be totall) new to the organization! Here the general
introduction training is re:uired! +ome emplo)ees ma) have problems in specific areasG here the training
must be specific! -his entire information is collected b) HR department!
%! +electing target group .-
3ased on information collected in step # the HR department divides emplo)ee into groups
based on the following!
2ge group
i! -he area of training
ii! =evel in the organization
iii! -he intensit) of training etc!
'! /reparing trainers .-
4nce the emplo)ees have been divided into groups, the HR department arranges for trainers!
-rainers can be in house trainers or specialized trainers from outside! -he trainers are given details b)
HR department, li$e number of people in group, their age, their level in organization, the result desired at
the end of training, the area of training, the number of da)s of training, the training budget, facilities
available etc!
(! /reparing training pac$ages .-
3ased on the information provided b) trainers, he prepares entire training schedule i!e! number
of da)s, number of sessions each da), topics to be handled each da), depth of which the subect should
be covered, the methodolog) for each session, the test to be given foe each session, handout,printed
material to be given in each session!
*! /resentation .-
4n the first da) of training program the trainer introduces himself and specifies the need and
obective of the program and then actuall) stars the program! -he performance of each emplo)ee is
trac$ed b) the trained and necessar) feedbac$ is provided!
5! /erformance .-
2t the end of training program the participants reports bac$ to their office or branches! -he) prepare
report on the entire training program and what the) have learned! -he) the start using whatever
the) have learned during their training! -heir progress and performance is constantl) trac$ed and
suitable incentives are given if the participant is able to use whatever he has learned in training!
6! Follow up .-
3ased on the emFplo)ee performance, after training, the HR department is able to identif) what is
e0actl) wrong with training program and suitable correction is made!
Evaluation of training program
-raining is defined b) ;a)ne 7ascio as training consists of planed programs underta$en to
improve emplo)ee $nowledge, s$ills, attitude, and social behavior so that the performance of the
organization improves considerabl)!"
Effectiveness of training programs are constantl) evaluated b) the compan) to find if the mone),
the) have invested has been spend properl) or not! -raining programs can be evaluated b) as$ing following
a? Has change occurred after trainingI
b? &s the change due to trainingI
c? &s the change positive or negativeI
d? ;ill the change continue with ever) training programI
2 training program should give following resulting changes!
#! Reaction .-
Reaction refers to attitude of emplo)ee about the training, whether the emplo)ee considers training
to be Jve or Kve one! &f reaction are Jve then people have accepted the program and changes will be
%! =earning .-
2nother method of udging effectiveness is to identif) levels of learning i!e! how much the
people have learnt during the training! -his can be found out b) trainers mar$ sheet, the report
submitted b) the emplo)ee, and actual performance!
'! 3ehavior .-
-he HR department needs to understand behavior of the emplo)ees, to understand the
effectiveness of training! -he behavioral change can be seen in how the person interacts with
uniors, peer groups and seniors! -he) mar$ change in behavior and inform the HR department of
the success of training program!
(! Result .-
Results provided b) emplo)ee in monetar) terms also determines effectiveness of training
program i!e! emplo)ee success in handling the proect, the group performance before and after
training etc!
*! Effectiveness of training program must lead to
i! &ncrease in efficienc) of wor$er
ii! Reduction in labour turnover
iii! &ncrease in discipline
iv! Reduction in wastage and therefore cost of production
v! /roper care of tools and e:uipments
vi! Emplo)ee development in career terms
vii! 4verall efficienc) in the compan)
"er#ormance appraisal
Definition .-
/erformance appraisal is defined the s)stematic description of emplo)eeAs ob
relevant, strength, wea$ness!
/erformance appraisal ma) be conducted once in ever) 5 months or once in a )ear!
-he basic idea of the appraisal is to evaluate the performance of the emplo)ee, giving him a
feed bac$! &dentif) areas where improvement is re:uired so that training can be provided!
Cive incentives and bonus to encourage emplo)ees etc!
Method of performance appraisal
/erformance appraisal is defined b) ;a)ne 7ascio as the s)stematic description of
emplo)eeAs ob relevant, strength, wea$ness!
7ompanies use different methods of appraisal for identif)ing and appraising the s$ills
and :ualities of their emplo)ees! -he different methods used can be e0plained with the help
of following diagram!
Methods of performance appraisal
$raditional method &odern method
#! 7hec$ list method #! Role anal)sis
%! 7onfidential report %! 2ssessment centers
'! 7ritical incident method '! management b) obective
(! Ran$ing method (! 3ehavioral anchored rating scale
*! Craphic rating scale *! /s)chological testing
5! <arrated essa) 5! Human resource accounting
6! '5FL 2ppraisal
-raditional method
-raditional method of performance appraisal has been used b) companies for ver)
long time! 2 common feature of these methods is the) are all relativel) simple and involve
appraisal b) one senior!
#! 7hec$ list method .-
&n this method the senior, the boss is given a list of :uestions about the unior! -hese :uestions
are followed b) chec$ bo0es! -he superior has to put a tic$ mar$ in an) one of the bo0es
-his method can be e0plained with the following eg!
Does the emplo)ee have leadership :ualitiesI E <
&s the emplo)ee capable of group effortsI E <
%! 7onfidential report
-his method is ver) popular in government departments to appraise &2+ officers and other high
level officials! &n this method the senior or the boss writes a report about the unior giving him details
about the performance about the emplo)ee! -he Jve and K ve traits, responsibilities handled on the ob
and recommendations for future incentives or promotions! -he report is $ept highl) confidential and
access to the report is limited!
'! 7ritical incident method
&n this method critical or important incidents which have ta$en place on this ob are noted
down along with emplo)eeAs behavior and reaction in all these situations! 3oth Jve and Kve
incidents are mentioned! -his is followed b) an anal)sis of the person, his abilities and talent,
recommendations for the future incentives and promotions!
(! Ran$ing method .-
&n this method ran$s are given to emplo)ees based on their performance! -here are different
methods of ran$ing emplo)ees!
+imple ran$ing method
2lternate ran$ing method
/aired comparison method
i! +imple ran$ing method .-
+imple ran$ing method refers to ran$s in serial order from the best emplo)ee eg! &f we
have to ran$ #F best emplo)ees we start with the first best emplo)ee and give him the first
ran$ this is followed b) the %
best and so on until all #F have been given ran$s!
ii! 2lternate ran$ing .-
&n this method the serial alternates between the best and the worst emplo)ee! -he best
emplo)ee is given ran$ # and then we move to the worst emplo)ee and give him ran$ #F
again to %
best emplo)ee and give him ran$ % and so on!
iii! /aired comparison .-
&n this method each and ever) person is the group, department or team is compared
with ever) other person in the team,group,department! -he comparison is made on certain
criteria and finall) ran$s are given! -his method is superior because it compares each and
ever) person on certain :ualities and provides a ran$ing on that basis!
*! Craphic rating scale .-
Craphic rating scale refers to using specific factors to appraise people! -he entire appraisal
is presented in the form of a chart! -he chart contains certain columns which indicate :ualities
which are being appraised and other columns which specif) the ran$ to be given!
Eg! Emplo)ee 2
@ualit) of wor$ @uantit) of wor$ &ntelligence
Ber) good
-he senior has to put a tic$ mar$ for a particular :ualit) along with the ran$ing! +uch charts are prepared
for ever) emplo)ee! 2ccording to the department in which the) wor$! +ometimes the :ualities which are
udged ma) change depending upon the department!
5! <arrated essa) .-
&n this method the senior or the boss is supposed to write a narrative essa) describing the
:ualities of his unior! He ma) describe the emplo)ees strength and wea$ness, anal)tical abilities
etc! the narrative essa) ends with a recommendation for future promotion or for future incentives!
Modern methods
Modern methods of appraisal are being increasingl) used b) companies! <ow da)s one of the
striving feature that appraisal involves is, the opinion of man) people about the emplo)ee and in some
cases ps)chological test are used to anal)ze the abilit) of emplo)ee! -hese methods are as follows
#! Role anal)sis .-
&n this method of appraisal the person who is being apprised is called the focal point and the
members of his group who are appraising him are called role set members!
-hese role set members identif) $e) result areas >MR2 ? >areas where )ou want improvement are
called MR2? which have to be achieved b) the emplo)ee! -he MR2 and their improvement will
determine the amount of incentives and benefits which the emplo)ee will receive in future! -he
appraisal depends upon what role set members have to sa) about the emplo)ee!
%! 2ssessment centers .-
2ssessment centers >27? are places where the emplo)eeAs are assessed on certain :ualities
talents and s$ills which the) possess! -his method is used for selection as well as for appraisal! -he
people who attend assessment centers are given management games, ps)chological test, puzzles,
:uestioners about different management related situations etc! based on their performance in these
test an games appraisal is done!
'! Management b) obective .-
-his method was given b) /etter Druc$ard in #96(! &t was intended to be a method of group
decision ma$ing! &t can be use for performance appraisal also! &n this method all members of the of
the department starting from the lowest level emplo)ee to the highest level emplo)ee together discus,
fi0 target goals to be achieved, plan for achieving these goals and wor$ together to achieve them! -he
seniors in the department get an opportunit) to observe their unior- group efforts, communication
s$ills, $nowledge levels, interest levels etc! based on this appraisal is done!
(! 3ehavioral anchored rating scale .-
&n this method the appraisal is done to test the attitude of the emplo)ee towards his ob!
<ormall) people with Jve approach or attitude view and perform their ob differentl) as compared
to people with a Kve approach!
*! /s)chological testing .-
&n this method clinicall) approved ps)chological test are conducted to identif) and
appraise the emplo)ee! 2 feedbac$ is given to the emplo)ee and areas of improvement are
5! Human resource audit,accounting .-
&n this method the e0penditure on the emplo)ee is compared with the income received due to
the efforts of the emplo)ee! 2 comparison is made to find out the utilit) of the emplo)ee to the
organization! -he appraisal informs the emplo)ee about his contribution to the compan) and what is
e0pected in future!
6! '5FL appraisal .-
&n this method of appraisal and all round approach is adopted! Feedbac$ about the emplo)ee
is ta$en from the emplo)ee himself, his superiors, his uniors, his colleagues, customers he deals
with, financial institutions and other people he deals with etc! 3ased on all these observations an
appraisal is made and feedbac$ is given! -his is one of the most popular methods!
/rocess of performance appraisal
/erformance appraisal is defined b) ;a)ne 7ascio as the s)stematic description of emplo)eeAs
ob relevant, strength, wea$ness!
/rocess of performance appraisal followed b) different companies is different! 2 general procedure
is e0plained below with the help of a diagram!
/rocess of performance appraisal
+etting performance standards
7ommunicating standards set to the emplo)ee
Measuring performance
7omparing performance with standard
Discussing result
7ollective action
&mplementation and review
#! +etting performance standards .-
&n this ver) first step in performance appraisal the HR department decides the standards of
performance i!e! the) decide what e0actl) is e0pected from the emplo)ee for each and ever) ob!
+ometimes certain mar$ing scheme ma) be adopted eg! 2 score 9F,#FF D e0cellent performance, a score
os 8F,#FF D good! 2nd so on!
%! 7ommunication standard set to the emplo)ee .-
+tandards of performance appraisal decided in #
step are now conve)ed to the emplo)ee so
that the emplo)ee will $now what is e0pected from him and will be able to improve his performance!
'! Measuring performance .-
-he performance of the emplo)ee is now measure b) the HR department, different methods can
be used to measure performance i!e! traditional and modern method! -he method used depends upon the
compan)As convenience!
(! 7omparing performance with standard .-
-he performance of the emplo)ee is now udged against the standard! -o understand the
score achieved b) him! 2ccordingl) we come to $now which categor) of performance the
emplo)ee falls into i!e! e0cellent, ver) good, good, satisfactor) etc!
*! Discussing result .-
-he results obtained b) the emplo)ee after performance appraisal are informed or conve)ed
to him b) the HR department! 2 feedbac$ is given to the emplo)ee as$ing him to change certain
aspects of his performance and improve them!
5! 7ollective action .-
-he emplo)ee is given a chance or opportunit) to improve himself in the areas specified b)
the HR department! -he HR department constantl) receives or $eeps a chec$ on the emplo)eeAs
performance and notes down improvements in performance!
6! &mplementation and review .-
-he performance appraisal polic) is to be implemented on a regular basis! 2 review must be
done from time to time to chec$ whether an) change in polic) is re:uired! <ecessar) changes are
made from time to time!