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INDEX
SL
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
SUBJECT
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATION
JOB EVALUATION
JOB DESIGN
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT
SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
MULTI-SKILLING
CHANGE MANAGEMENT
PERFORMANCE APPRAISALS
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
UNIONS
ORGANIZATIONAL DOWNSIZING
PAGE
3
9
11
13
14
20
21
22
23
25
28
28
31
35
38
44
47
49
56
62
64
67
68
71
73
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WHAT IS HRM?
MEANING OF HRM
HRM is a management function that helps organisation to recruit, select, train, develop and
manage its members. Simply stated, HRM is all about management of people in the
organisation from Recruitment to Retirement. HRM refers to set of programs, functions,
and activities designed and carried out in order to maximise both employee as well as
organisational effectiveness.
Definition 1
HRM is planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.
Definition 2
HRM is concerned with the people dimensions in management. Since every organization
is made up of people, acquiring their services, developing their skills, motivating them to
higher levels of performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives. This is true,
regardless of the type of the organization government, business, education, health,
recreational, or social action.
OBJECTIVES OF HRM
1.
Organizational Objectives : To assist the organization to achieve its primary
objectives, whether it is profit making or charity or social agenda.
2.
Societal Objectives: To be responsive to the needs and challenges of the
society while minimizing the negative impact, if any, of such demands upon the
organization.
3.
Functional Objectives : To maintain departments contribution and level of
services at a level appropriate to the organizations needs.
4.
Personal Objectives: To assist employees in achieving their personal goals, at
least in so far as these goals enhance the individuals contribution to the organization. This
is necessary to maintain employee performance and satisfaction for the purpose of
maintaining, retaining and motivating the employees in the organization.
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SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization
Following are the areas of operation of HRM:
1.
2.
Job Analysis
3.
Job Design
4.
5.
6.
7.
Performance Appraisals
8.
Job Evaluation
9.
10.
Motivation
11.
Communication
12.
Welfare
13.
14.
Industrial Relations
Based on the above activities, we can summarize the scope of HRM into following seven
different categories:
1.
Introduction to HRM
2.
Employee Hiring
3.
4.
Employee Motivation
5.
Employee Maintenance
6.
Industrial Relations
7.
Prospects of HRM
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ROLE OF HRM
1.
(b)
2.
3.
ROLE OF HR MANAGERS
1.
Humanitarian Role:
2.
3.
4.
Spokesman: To represent the company in Media and other forums because he has
better overall picture of his companys operations.
5.
6.
7.
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(a)
(b)
(c)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(a)
(b)
(c)
Performance Appraisals
Placement & Orientation
Employee Assessment
(a)
(b)
(c)
(d)
(e)
Planning: Research and plan about wage trends, labour market conditions, union
demands and other personnel benefits. Forecasting manpower needs etc.
2.
Organizing:
Organizing manpower for the achievement of organizational goals
and objectives.
3.
Staffing:
4.
5.
Procurement:
2.
Development:
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3.
4.
Integration:
5.
Maintenance:
Sustaining and improving working conditions, retentions,
employee communication
6.
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mothers, more educated and aware workers etc. Thus, changing demography of workforce
has its own implications for HR managers and a true challenge to handle.
5.
Changed Employee Expectations:
With the changes in workforce
demographics, employee expectations and attitudes have also transformed. Traditional
allurements like job security, house, and remunerations are not much attractive today.
Rather, employees are demanding empowerment and equality with management. Hence, it
is a challenge for HRM to redesign the profile of workers, and discover new methods of
hiring, training, remunerating and motivating employees.
6.
New Industrial Relations Approach: In the changed industrial climate,
even trade unions have realised that strikes and militancy have lost their relevance and not
many workers are willing to join them and disrupt work. However, the problems faced by
workforce now have different dimension for the management. They manifest in the form of
increased attrition rate. Unsatisfied employees instead of approaching the management for
resolution, often take up the new job. The challenge before the HRM is find ways and
means to feel the pulse of employees and address the issues on proactive basis.
7.
Renewed People Focus: Man behind the machine is most important than the
machine. This is an old doctrine of the Armed Forces. However, this doctrine has begun to
gain acceptance in the corporate world and thus all out efforts to grab the best talent at what
ever cost.
8.
Managing the Managers: Managing the managers is most difficult. Armed
with inside information, they can not be lured with rosy promises. They are in great
demand too with growth in economy. These are the people who are most mobile, attrition
rate being highest for the junior and middle management level. The challenge of HRM is
how to manage this tribe?
9.
Weaker Sections Interests : Another challenge for HRM is to protect the
interest of weaker sections of society. The dramatic increase of women workers, minorities
and other backward communities in the workforce, coupled with weakening of trade
unions, has resulted in the need for organizations to re-examine their policies, practices and
values. In the name of global competition, productivity and quality, the interests of the
society around should not be sacrificed. It is a challenge of todays HR managers to see that
these weaker sections are neither denied their rightful jobs nor are discriminated while in
service.
10.
Contribution to the Success of Organizations: The biggest challenge to
an HR manager is to make all employees contribute to the success of the organization in an
ethical and socially responsible way. Because societys well being to a large extent depends
on its organizations.
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2.
3.
4.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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TEAM EFFECTIVENESS
Definition:
A team is a small group of people who agree to work together for achieving a clear and
identifiable set of goals.
Teams Can be Very Effective.
The benefit of teams lie in Synergy which means The whole is greater than sum of its
parts. Thus, a team is able to produce more than the sum of individuals working separately.
A team benefits from complementing and some times contrasting abilities of its members.
Teams can bring to bear a wider range of skills and experience to solve a problem. Teams
often lead to better quality decisions as individual whims and prejudices are kept in check.
Further, members of team have an obligation to each other and thus there is a moral
force/binding to perform.
TEAM EFFECTIVENESS
For a team to be effective, following are the prerequisites:
1.
2.
Effective leadership
3.
Shared goals
4.
Diverse skills and experience - technical, problem solving and interpersonal skills
5.
6.
7.
Ability to self-correct
8.
Interdependent work
9.
10.
11.
Synergy among the team members is very important. The team needs a clear sense of
direction which the leader provides. Harmony and trust among the group members is
utmost essential. In any group, conflicts are inevitable, how ever harmonious it may be.
There has to be a well formulated policy for conflict management. Decision making is a
source of potential conflicts. A well charted course for decision taking will be able to
minimise such conflicts.
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HRP SYSTEM
HRP System as such includes following elements or sets for planning.
Business Environment
Overall Organization Objectives
Forecasting Manpower Needs
Assessing Manpower Supply
Matching Manpower Demand-Supply factors
Based on these elements we can draw HRP System Architecture as under.
Business Environment
Manpower Programming
Manpower Implementation
Control & Manpower
Evaluation
Surplus Manpower
Shortage of Manpower
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HRP PROCESS
Organizational Objectives & Policies:
Organizational objectives and policies give a clue to future requirement of manpower. A
company planning expansion would require more manpower in near future. Kind of people
required would be dictated by technology being planned for expansion. HRP needs to align
hiring of people with these elements. In addition, companys policies towards its manpower
policies, like using internal resources for promotion or external resources or dependence on
certain caste or region for some jobs have also to be catered for. Gujarati companies in
diamond business hire only gujaraties. Similarly, certain Business Houses from Rajasthan
prefer Rajasthanies. So, HRP process will be dictated by following organisational policies:
1. Internal Hiring or External Hiring?
2. Training & Development plans
3. Union Constraints
4. Job enrichment issues
5. Rightsizing organization
6. Automation needs
7. Continuous availability of adaptive and flexible workforce
Manpower Demand Forecasting: It is the process of estimating the future quantity and
quality of people required. The basis should be long term corporate plans. Demand
forecasting should be based on following factors.
Internal Factors:
Production levels
Organizational structure
Employee separation
Budget constraints
External Factors:
Economic climate
Technology changes
Social Factors
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Personal data
Skills
Special Qualifications
Salary
Job History
Company data
Capabilities
Special preferences
Management inventories would include the following:
Work History
Strengths
Weaknesses
Promotion Potential
Career Goals
Personal Data
Productivity level
New blood,
New experiences
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Organizational growth
Diversification
External sources can be colleges and universities, consultants, competitors and
unsolicited applications.
SUCCESSION PLANNING
Meaning of Succession Planning
Succession planning is the process or activities connected with the filling of key positions
in the organization hierarchy as vacancies arise. Succession planning focuses on
identification of future vacancies and locating the probable successor. For example in
succession planning the key concern can be who will be next CEO or what will happen if
the Marketing Manager retires in coming March. Grooming a person to fill an important
position may take years. Succession planning involves identification of key positions in the
company and then scouting for people who can effectively fill those positions at short
notice.
Importance of Succession Planning
1.
Succession planning helps when there is a sudden need due to job hopping/death of
serious injury to a key employee.
2.
3.
Acts as a motivator for the individual employee who comes to know of the
impending promotion in advance.
4.
Succession planning helps create loyalty towards the organization and improved
motivation and morale of individual employees.
5.
6.
CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and
developmental experiences that an individual goes through in his working life. It is a
sequence of positions occupied by a person during his life.
Career planning is the process of identifying an individuals strengths, weaknesses,
aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to
take maximum advantages of positive traits and minimising the effect negatives traits.
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After identifying the personality traits of the individual begins the process of identifying
suitable job billets for him. It may also involve training at times to strengthen his weak
areas.
Career planning is a process of integrating the employees needs and aspirations with
organizational requirements.
A typical succession planning involves the following activities:
1.
Analysis of the demand for managers and professionals by company level, function
and skill.
2.
Audit of existing executives and projection of likely future supply from internal and
external sources.
3.
Planning of individual career paths based on objective estimates of future needs and
drawing on reliable performance appraisals and assessments of potential.
4.
5.
Accelerated promotions with development targeted against the future needs of the
business.
6.
7.
Planned strategic recruitment not only to fill short term needs but also to provide
people for development to meet future needs
8.
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JOB ANALYSIS
Definition 1
Job Analysis is a process of collecting and studying the information relating to operations
and responsibilities of a specific job. The immediate products of this analysis are Job
Description and Job Specifications.
Definition 2
It is a basic technical procedure that is used to define duties and responsibilities and
accountabilities of the job.
Job Evaluation :
Job evaluation means determination of relative worth of
each job for the purpose of establishing wage and salary. This is possible with the
help of job description and specifications; i.e. Job Analysis.
Remuneration:
jobs.
Safety & Health: Job Analysis helps to uncover hazardous conditions and
unhealthy environmental factors so that corrective measures can be taken to
minimize and avoid possibility of human injury.
Job analysis also helps in determining wage and salary for the
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JOB DESCRIPTION
Job Description implies objective listing of the job title, tasks, and responsibilities
involved in a job.
Job description is a word picture of the duties, responsibilities and organizational
relationships that constitutes a given job or position. It defines work assignment and a
scope of responsibility that are sufficiently different from those of the other jobs to warrant
a specific title. Job description is a broad statement of purpose, scope, duties and
responsibilities of a particular job.
Job Identification
2.
Job Summary
3.
4.
Supervision specification
5.
6.
Work conditions
7.
Work hazards
8.
Job Title
2.
Region/Location
3.
Department
4.
5.
Objective
6.
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JOB SPECIFICATIONS
Job Specification involves listing of qualifications, skills and abilities required in an
employee to meet the job description. These specifications are minimum required to do the
job satisfactorily.
In other words, it is a statement of minimum acceptable physical/psychological attributes
and professional skills necessary to perform the job properly. Job specifications seek to
indicate kind of persons who can be expected to meet the role requirements. Thus, it is
basically concerned with matters of selection, screening and placement and is intended to
serve as a guide in hiring.
Physical Characteristics
2.
Psychological characteristics
3.
Personal characteristics
4.
Educational Qualifications
5.
6.
Demographic features
Essential Attributes
2.
Desirable Attributes
3.
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JOB EVALUATION
Job evaluation is the process of analyzing and assessing various jobs systematically to
ascertain their relative worth in an organization.
Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the basis
of Job Description and Job Specification only. Job Evaluation helps to determine wages
and salary grades for all jobs. Employees need to be compensated depending on the grades
of jobs they perform. Remuneration must be based on the relative worth of each job.
Ignoring this basic principle results in inequitable compensation and attendant ill effects on
employees morale. A perception of inequity is a sure way of de-motivating an employee.
Jobs are evaluated on the basis of content and placed in order of importance. This
establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials
among various jobs.
Jobs are ranked (not jobholders)
(b)
(c)
(d)
(e)
(f)
2.
Wage Survey
3.
Employee Classification
4.
Analytical Methods
(a)
Point Ranking Methods: Different factors are selected for different jobs
with accompanying differences in degrees and points.
(b)
2.
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Non-Analytical Methods
(a)
Ranking Method: Jobs are ranked on the basis of their title or contents.
Like Managers, Supervisors, Workers, Peon, etc. All managers whether
from production, planning, sales, stores or Allied Services (House Keeping)
Deptt are treated equal. Job is not broken down into factors etc. It is easier
to implement but not always satisfactory for the employees.
(b)
2.
3.
Not suitable for forward looking organizations, which may have trimmed multiple
job titles into two or three broad jobs.
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JOB DESIGN
In the most simplified form - The process of breaking/organizing work into specific tasks
in order to perform a specific job is called Job Design. Job Design is the logical Sequence
to Job Analysis. Job design involves conscious efforts to organise tasks, duties and
responsibilities into a unit of work to achieve certain objective.
2.
3.
Organizational factors
(a)
(b)
(c)
(d)
Environmental Factors
(a)
(b)
Behavioural Elements
(a)
Feedback
(b)
Autonomy
(c)
Use of Abilities
(d)
Variety
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worker only applies the tool to the right place. He does not even put the wheel in
place. In such cases, work becomes repetitive in nature. Work simplification is used
when jobs are not specialized.
2.
Job Rotation:
Same job, same people, same surrounding, days over days,
months over months, leads to boredom and even fatigue. And it manifests in higher
error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer
to such problems. While broadly the job may remain same, minor variations
between jobs are enough to rejuvenate the employee. It not only benefits the
personnel but also the organisation in equal measure
(a)
(b)
3.
4.
Job Enrichment :
Job enrichment is to add a few more motivators to a job to
make it more rewarding. A job is enriched when the nature of the job is exciting,
challenging, rewarding and creative or gives the job holder more decision-making,
planning and controlling powers. An enriched job will have more authority,
responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal
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enrichment) and more growth opportunities. The employee does more planning and
controlling with less supervision but more self-evaluation. For example:
transferring some of the supervisors tasks to the employee and making his job
enriched. As per Hertzberg, who was the father of this term, an enriched job has
eight characteristics:
(a)
(b)
(c)
(d)
(e)
(f)
Control over Resources: One approach to Job enrichment is for the each
employee to have control over his or her resources and expenses.
(g)
(h)
5.
(a)
(b)
Job enrichment may have short term negative effects till the worker gets
used to the new responsibility.
(c)
(d)
Job enrichment assumes that workers want more responsibilities and those
workers who are motivated by less responsibility, job enrichment surely demotivates them
(e)
(f)
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whole work segment. They work together, handle day-to-day problems, plan and
control, and are highly effective team.
JOB SATISFACTION
Job satisfaction is self satisfaction derived by an employee in doing the job he has been
entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an
employee towards his job, related factors and life in general than the job itself. The
attitudes related to job may be wages, supervision, steadiness, working conditions,
advancement opportunities, recognitions, fair evaluation of work, social relations on job,
prompt settlement of grievances etc. A person with a kind heart will find high level of job
satisfaction in working with some agency involved in charitable work though the salary
might be relatively less. An over ambitious person will never find the job satisfaction.
In short job satisfaction is a general attitude towards the job, which is the result of many
specific attitudes in three areas namely, job factors, individual characteristics and group
relationships outside the job.
WORK SAMPLING
Definition:
"A measurement technique for the quantitative analysis of an random/irregularly occurring
activity."
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When we are not adding value to the product, how are we spending our time?
Work sampling normally spans over several days or weeks, thus minimizing the effects
of sudden variations on a particular day.
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Work Sampling, in general, does not require a trained time-study analyst to take the
observations. Also, stopwatches or other timing devices are not required. Many studies
make use of off-shift technicians or operators to take the observations.
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RECRUITMENT
Definition:
Recruitment is the process of finding and attracting capable applicants for a job to create a
pool from which selection is to be made of the most suitable candidates.
The Process begins when new recruits are sought and ends when their applications are
submitted. Though theoretically recruitment process is said to end with the receipt of
applications, in practice, the activity extends to the screening of applications so as to
eliminate those who are not qualified for the job. The result is a pool of applicants from
which selections for new employees are made.
To broad base the applicant pool in order to get the right talent at the affordable
cost.
2.
3.
Help increase success rate of selection process by reducing number of underqualified or over-qualified applications.
4.
5.
2.
3.
4.
5.
Companys Image
Internal Factors:
1.
2.
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3.
Size of the Organization (Bigger the size lesser the recruitment problems)
4.
Cost
5.
RECRUITMENT PROCESS
1.
(b)
Present employees
(ii)
Employee referrals
(iii)
(iv)
Former Employees
(v)
Previous Applicants
2.
(i)
(ii)
Advertisements
(iii)
Employment Exchanges
(iv)
Campus Recruitment
(v)
Walk-ins Interviews
(vi)
Consultants
(vii)
Contractors
(viii)
Displaced Persons
(ix)
(x)
(c)
Competitors
(d)
(e)
Where to look
(f)
How to look
Recruitment Planning
(a)
(b)
3.
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Searching
(a)
Source activation
(b)
Selling
4.
Screening of Applications
5.
Salary Cost
(b)
(c)
Advertisement Cost
(d)
(e)
(f)
(g)
Consultants fees
2.
3.
4.
Recruitment Cost
5.
6.
Image projection
1.
2.
3.
4.
INTERNAL RECRUITMENT
Advantages
Disadvantages
Less Costly
1. Old concept of doing things
Candidates already oriented towards 2. It abets raiding
organization
3. Candidates current work may be
Organizations have better knowledge
affected
about internal candidates
4. Politics play greater roles
Employee morale and motivation is 5. Morale problem for those not
enhanced
promoted.
1.
2.
3.
4.
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EXTERNAL RECRUITMENT
Advantages
Disadvantages
Benefits of new skills, talents and Ideas 1. Better morale and motivation
Benefits of new experiences
associated with internal recruiting is
Compliance with reservation policy
denied
becomes easy
2. It is costly method
Scope for resentment, jealousies, and 3. Chances of creeping in false positive
heartburn are avoided.
and false negative errors
4. Adjustment of new employees takes
longer time.
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SELECTION
MEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. A formal definition
of Selection is as under:
Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
Selection
Selection is concerned with picking up
the right candidates from a pool of
applicants.
Selection on the other hand is negative
in its application in as much as it seeks
to eliminate as many unqualified
applicants as possible in order to
identify the right candidates.
2.
Selection Tests: Jobseekers who pass the preliminary interviews are called for
tests. There are various types of tests conducted depending upon nature of job and
the company. These tests can be Aptitude Tests, Personality Tests and Ability Tests
and are conducted to judge how well an individual can perform tasks related to the
job. Besides this, there are some other tests also like Interest Tests (activity
preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests
etc.
3.
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5.
Selection Decision :
After obtaining all the information, selection decision is
made. The final decision has to be made out of applicants who have been identified
as suitable. The views of line managers carry much weight at this stage because it is
they who are eventually responsible for the performance of the new employee.
Considering the job climate, often more than required number is selected to cater
for any selected candidate withdrawing at the job offer stage.
6.
7.
Job Offer:
The next step in selection process is job offer to those applicants
who have successfully passed all tests. It is made by way of letter of appointment.
8.
Contract of Employment :
After the job offer is made and candidates accept
the offer, certain documents are needed to be executed by the employer and the
candidate. A formal contract of employment, containing written contractual terms
of employment etc are signed by both sides.
Detailed Job Descriptions and Job Specifications prepared in advance and endorsed
by personnel and line management should be available with Selection Board.
2.
3.
4.
5.
6.
7.
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Perception: We all perceive the world differently. Our limited perceptual ability
is obviously a stumbling block to the objective and rational assessment of people.
2.
3.
4.
5.
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OBJECTIVES OF MANAGEMENT
DEVELOPMENT PROGRAMS (MDP)
1. To make the managers
Self-starters
Committed
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Motivated
Result oriented
Sensitive to environment
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Development
Development is creating learning abilities
Development is not education dependent
2.
3.
4.
5.
6.
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Performance Appraisals
2.
Interviews
3.
Questionnaires
4.
Attitude Surveys
5.
6.
Work Sampling
7.
Rating Scales
2.
3.
4.
Efficiency Indices
5.
Exit Interviews
6.
7.
Quality Circles
8.
9.
2.
Trainers Perception Gaps can be reduced between employees and their supervisors
3.
Trainers can design course inputs closer to the specific needs of the participants
4.
METHODS OF TRAINING
On the Job Trainings (OJT): When an employee learns the job in actual working site in
real life situation, and not simulated environment, it is called OJT. Employee learns while
working. Take the instance of roadside mechanics. Small boys working there as helpers
learn while helping the head mechanic. They do not learn the defect analysis and engine
repairing skills in any classroom on engine models.
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2.
It is often informal
3.
4.
It is least expensive
5.
6.
3.
Job Rotation:
2.
3.
4.
5.
2.
It is systematically organized
3.
2.
It is often formal
3.
4.
It is expensive.
5.
6.
It is artificial in nature
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Classroom Lectures:
Advantage It can be used for large groups. Cost
per trainee is low. Disadvantages Low interest of employees . It is not
learning by practice. It is One-way communication. No authentic feedback
mechanism. Likely to lead to boredom for employees.
2.
3.
4.
5.
Role Plays:
Here trainees assume the part of the specific personalities in
a case study and enact it in front of the audience. It is more emotional
orientation and improves interpersonal relationships. Attitudinal change is
another result. These are generally used in MDP.
6.
7.
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8.
9.
Laboratory Training.
2.
3.
4.
5.
Unions influence
Management Commitment
2.
3.
4.
5.
6.
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Organisations geography/layout
2.
3.
4.
5.
6.
7.
PURPOSE OF ORIENTATION
The idea of Orientation programme is to make the new employees feel at home in new
environment. Any employee while joining a new organisation is anxious about the new setup, new colleagues, his own performance vis a vis other more experienced employees in
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the organisation, his work place, his exact responsibilities, etc. A structured information
and introduction system will make his transitory period short and reduce his anxiety
quickly. He will begin to perform to his potential quickly.
Formal or Informal: In informal orientation, new employees are put on the jobs
and they are expected to acclimatise themselves with the work and the organisation.
In contrast, in formal orientation, an employee goes through a structured
introduction programme.
2.
Individual or Collective:
Another choice is to be made whether new employees
are to be inducted in group or individually.
3.
4.
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student is given a foreign student as buddy to help in all matters in the initial days.) Other
subjects may be incorporated with refresher training for current staff, or handled as
participant in an outside program. Perhaps some can wait until there are groups of people
who have started in the last few months.
This may take some creative thinking, but the answer is quite simple - until the new people
are integrated, they are less useful. The mathematics of Induction and orientation is often
amazingly simple - not investing time and money to train costs more than training would.
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MULTI SKILLING
Definition
Multi-Skilling- the ability of an employee to perform more than one function or the crosstraining of an employee in several disciplines or tasks.
Multi-Skilling is training of an employee to be able to do more than one job with equal
dexterity.
Multi-Skilling is immensely beneficial to any organisation. Apart from flexibility to
redeploy man power as per changing needs, it also keeps the labour costs low. Many
complex jobs require different skills to accomplish though involvement of each skill may
be for very short duration. Thus, in absence of multi-skilled workers, the team becomes
very large and there is inadequate utilisation of team members. But, if the team members
are multi-skilled, team size can be kept small and thus the labour cost in minimised. In
addition, often job is accomplished much faster with better quality as no time is lost in
explaining the job requirements by one team member to another with attendant risks of
misunderstanding and rework. Bank tellers are examples of multi-skilling. Result is much
faster service.
Imagine the state of extension counters of banks at school or college premises which are
operated by just one or two employees. Those one or two people perform all the functions
which take up to 7 -8 people in bigger branches. Opening the bank, opening new account,
attending queries, accepting deposits and dispensing cash, verification of signatures,
maintaining account books and many other tasks are done by them. If such multi-skilling
was not available with the banks, such branches would have become unviable. Even in the
larger branches,
2.
3.
Faster job
4.
5.
6.
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2.
3.
A new employee at a job may have new ideas to fine-tune that job.
4.
5.
6.
7.
8.
Cohesiveness is enhanced.
Disadvantages of Multi-Skilling
1.
2.
3.
4.
Chances of partial skilling in various jobs instead of fully skilled in any one.
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CHANGE MANAGEMENT
Change Management is a Critical HR Professional Skill
Definitions:
1.
2.
Technology
(b)
Competition
(c)
(d)
Environment
(e)
Politics
HRs role in the change process is to help forecast future changes, develop systems and
policies for managing human capital before, during & after the change.
Change can be classified as follows: Structural Changes
Authority
Coordination
Centralization
Technological Changes
Processes
Methods
Equipments
People Changes
Attitudes
Expectations
Behaviours
Marketplace
2.
Labour markets
3.
Economic Changes
4.
Technology
5.
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Corporate Strategies
2.
Workplace
3.
4.
Employee Attitudes
Managers
2.
External Consultants
3.
Staff Specialists
PROCESS OF CHANGE
Lewins Three-Step Procedure of Change
1.
2.
3.
Refreezing process
Unfreeze
2.
3.
4.
5.
RESISTANCE/BARRIERS TO CHANGE
1.
2.
3.
4.
Perceived inconveniences
5.
6.
7.
8.
Organisational culture
9.
Feeling of insecurity
10.
Lack of incentives
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MANAGING CHANGE
It involves: 1.
2.
Minimising resistance
3.
Maximising acceptance
4.
5.
6.
7.
2.
Participation of affected people from beginning rather than at the end. Making the
potential hardliners a member of the committee designing the change.
3.
4.
5.
Manipulation co-option
6.
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Denial
Diagnosis:
Resistance
Diagnosis:
Exploration
Diagnosis:
Commitment
Diagnosis:
identify
with
Management: Set long term goals; reward those who have changed.
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ORGANIZATIONAL DEVELOPMENT
TECHNIQUES
Survey Feedback
Sensitivity Training
Process Consultation
Team Building
Inter-group Development
Conditions Facilitating Change
Dramatic Crisis
Leadership Change
Weak Culture
Young and Small Organization (ageing)
The Road to Change in Culture
Analyze the culture
Need for change
New leadership
Reorganize
Restructure
New stories and rituals
Change the job systems
Re engineering
Radical and One time Change
Redesigning
Mostly focused on what can be?
Top to Bottom
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2.
3.
Job Redesign, especially when processes change, jobs merging, and relocation
happens
4.
Employee Counselling
5.
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PERFORMANCE APPRAISALS
(b)
Factors vary from organization to organization and job to job. For a soldier, courage and
endurance are more important factors. But for the Army General, his tactical abilities are
more important. On the other side, a foreman in a factory would never be assessed for his
courage. Assessment is often not confined to past performance but checks for potential
performance also. The second definition brings in focus behaviour because behaviour
affects not only employees performance but even his peers and subordinates.
Definition 1: It is a systematic evaluation of an individual with respect to present
performance on the job and his potential.
Definition 2: It is formal, structured system of measuring/evaluating job related
behaviours and outcomes to discover how an employee has performed on the job and how
he can perform more effectively in future so that employee, organization and society, all
benefits.
Objectives:
Performance Standard
Translate job requirements
into levels of acceptable or
unacceptable performance
Performance Appraisal
Describe the individuals
past performance,
suitability and potential.
1.
Promotions
2.
Confirmations
3.
4.
Compensation reviews
5.
Competency building
6.
Evaluation of HR Programs
7.
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2.
3.
Performance Interviews
4.
5.
6.
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or checking and HR department does the actual evaluation. Advantages economy, ease of
administration, limited training required, standardization. Disadvantages Raters biases,
use of improper weights by HR Deptt, does not allow rater to give relative ratings.
3.
Forced Choice Method: A series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is forced to
make a choice. HR department does actual assessment. Advantages Absence of personal
biases because of forced choice. Disadvantages Statements may not be correctly framed.
4.
Forced Distribution Method: One of the problems faced in large organizations is
relative assessment tendencies of raters. Some are too lenient and others too severe. This
method overcomes that problem. It forces every one to do a comparative rating of all the
employees on a predetermined distribution pattern of good to bad. Say 10% employees in
Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average
Grade and 10% in Unsat grade. The real problem of this method occurs in organizations
where there is a tendency to pack certain key departments with all good employees and
some other departments with discards and laggards. Relatively good employees of key
departments get poor rating and relatively poor employees of laggards departments get
good rating.
10%
20%
Unsat Below Avg
40%
Average
20%
Good
10%
Excellent
5.
Critical Incidents Method:
It takes cognisance of abnormal incidences only,
good or bad. Supervisors record such incidents as and when they occur. Advantages
Evaluations are based on actual job behaviours. Ratings are supported by descriptions, thus
favouritism is beaten. Feedback is easy and reduces recency biases. Disadvantages
Negative incidents may get priority or incidences could be forgotten.
6.
Field Review Method: This method is useful only for senior positions in a large
organisation spread over cities and countries. Appraisal is done by someone outside
employees own department usually from corporate or HR department. Advantages
Useful for managerial level promotions, when comparable information is needed, on
employees working at distant locations in different set of conditions. Disadvantages
Outsider is generally not familiar with employees work environment, Observation of
actual behaviours not possible.
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7.
Performance Tests & Observations:
This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be reliable
and validated to be useful. Advantage Tests only measure potential and not attitude.
Actual performance is more a function of attitude of person than potential. Disadvantages
Some times costs of test development or administration are high.
8.
Confidential Reports:
Though popular with government departments, its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to
the assessee is given only in case of an adverse entry. Disadvantage is that it is highly
prone to biases and recency effect and ratings can be manipulated because the evaluations
are linked to future rewards like promotions, good postings, etc.
9.
Essay Method: In this method the rater writes down the employee description in
the form of an essay. Advantage It is extremely useful in filing information gaps about
the employees that often occur in a better-structured checklist. Disadvantages It its highly
dependent upon the writing skills of rater and most of them are not good writers. Moreover,
it is also time consuming and therefore affects full assessment. Also, comparative or
relative performance among employees is not clearly demarcated.
10.
Cost Accounting Method:
Here performance is evaluated from the monetary
returns yield to his or her organization. Cost to keep employee, and benefit the organization
derives is ascertained. Hence, it is more dependent upon cost and benefit analysis.
11.
Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers.
The usual techniques used may be ranking methods and paired comparison method.
Ranking Method: Superior ranks his worker based on merit, from best to
worst. However how best and why best are not elaborated in this method. It is easy
to administer.
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13.
Psychological Appraisals:
These appraisals are more directed to assess
employees potential for future performance rather than the past one. It is done in the form
of in-depth interviews, psychological tests, and discussion with supervisors and review of
other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance. This approach is
slow and costly and may be useful for bright young members who may have considerable
potential. However quality of these appraisals largely depends upon the skills of
psychologists who perform the evaluation.
14.
Assessment Centres:
This technique was first developed in USA and UK in
1943. An assessment centre is a central location where managers may come together to
have their participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviours across a series of select exercises or work samples.
Assessees are requested to participate in in-basket exercises, work groups, computer
simulations, role playing and other similar activities which require same attributes for
successful performance in actual job.
Disadvantages Concentrates on future performance potential. No assessment of past
performance. Costs of employees travelling and lodging, psychologists. Ratings strongly
influenced by assessees inter-personal skills. Solid performers may feel suffocated in
simulated situations.
Advantages Well-conducted assessment centre can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content
validity and predictive ability are said to be high in Assessment Centres. The tests also
make sure that the wrong people are not hired or promoted. Finally, it clearly defines the
criteria for selection and promotion.
15.
360-Degree Feedback:
It is a technique in which performance
data/feedback/rating is collected from all sections of people employee interacts in the
course of his job like immediate supervisors, team members, customers, peers, subordinates
and self with different weightage to each group of raters. This technique has been found to
be extremely useful and effective. It is especially useful to measure inter-personal skills,
customer satisfaction and team building skills. One of the biggest advantage of this system
is that assesssees can not afford to neglect any constituency and has to show all-round
performance. However, on the negative side, receiving feedback from multiple sources can
be intimidating, threatening, expensive and time consuming.
Purpose of performance evaluation is to make sure that employees goals, employees
behaviour and feedback about performance are all linked to the corporate strategy.
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2.
3.
Uniformity of appraisals
4.
Trained Raters
5.
6.
7.
8.
Avoid rating problems like halo effect, central tendency, leniency, severity etc.
9.
10.
No room for discrimination based on cast, creed, race, religion, region etc.
Problems of Rating:
1.
Leniency & Severity Either too lenient or too severe. All good or all bad.
2.
3.
4.
5.
Primacy & Recency Effect Early period or near end period behaviour effects.
6.
Perceptual Sets Effects of old beliefs about groups, regions, groups, etc
7.
8.
Status Effect High esteemed or low esteemed job bearing on the appraisal.
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NATURE OF HR AUDIT
HR Audit is a tool for evaluating the personnel activities of an organization. The audit may
include one division or entire company. It gives feedback about HR functions to operating
managers and HR specialists. It also shows how well managers are meeting HR duties.
In short HR audit is an overall control check on HR activities in a division or a company
and evaluation of how these activities support organizations strategy.
B A S I S O F H R A U D I T (PERSONNEL RESEARCH)
1.
Wage Surveys
2.
3.
4.
Supervisors effectiveness
5.
6.
Job Analysis
7.
8.
9.
Attitude Surveys
10.
BENEFITS OF HR AUDIT
1.
2.
3.
4.
5.
6.
7.
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8.
9.
10.
2.
3.
4.
(a)
Employee Turnover
(b)
Absenteeism
(c)
Accidents
(d)
Attitude Surveys
APPROACHES TO HR AUDIT
1.
2.
3.
4.
5.
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MOTIVATION THEORIES
Performance is a function of ability and motivation. P = f (A x M)
Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.
2.
3.
4.
5.
6.
CHALLENGES OF MOTIVATION
1.
2.
3.
4.
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THEORIES OF MOTIVATION
EARLY THEORIES
Scientific Management (F.W. Taylor):
Motivation by scientific management is
associated with F.W. Taylors techniques of scientific management. Taylor said that people
are primarily motivated by economic rewards and will take direction if offered an
opportunity to improve their economic positions. Based on this Taylor described following
arguments
Workers can be made more efficient by telling them how they were to do a job.
CONTEMPORARY THEORIES
Content Theories (Maslows Need Hierarchy, Hertzbergs 2-factors, Alderfers ERG,
Achievement Motivation Theory)
Process Theories (Vrooms expectancy, Adams Equity, Porters Performance and
Satisfaction Model)
Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth)
ERG theory emphasizes more on three broad needs that is Existence, Relatedness and
Growth. Its hypothesis is that there may be more than one need operating at the same time.
ERG theory further states that when a higher level need is frustrating, the individuals
desire to increase lower level needs takes place. Thus, ERG theory contains frustrationPage 65 of 73 - Human Resource Management Notes
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regression dimension. Frustration at higher level need may lead to regression at lower level
need.
Advantages More consistent with our knowledge of differences among people, it is less
restrictive and limiting, it is a valid version of need hierarchy.
Disadvantages No clear-cut guideline of individual behaviour patterns, too early to pass
a judgment on the overall validity of the theory.
Two-Factor Theory (Hertzberg)
Fredrick Hertzberg states that the motivation concept is generally driven by two factors of
motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are
generally achievement, recognition, the work itself, responsibility, advancement and
growth, which are related to job satisfaction. Hygiene factors deal with external factors like
company policy, supervision, administration and working conditions, salary, status,
security and interpersonal relations. These factors are known as hygiene factors or job
dissatisfiers, job context factors.
Advantages Tremendous impact on stimulating thought on motivation at work, increased
understanding of role of motivation, specific attention to improve motivational levels, job
design technique of job enrichment is contribution of Hertzberg, double dimensions of two
factors are easy to interpret and understand.
Disadvantages Limited by its methodology, reliability questioned, it focuses more on job
satisfaction not on motivation, no overall measure of satisfaction utilized, inconsistent with
previous research, productivity factor ignored.
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MORALE
Definition 1:
Morale is a mental condition or attitude of individual and groups, which determines their
willingness to co-operate.
Definition 2:
Morale is attitudes of individuals and groups towards their work environment and towards
voluntary cooperation to the full extent of their ability in the best possible interest of the
organization.
Morale can be said to be a combination of satisfaction, happiness and enthusiasm.
Distinction between Morale and Motivation: -
1.
2.
3.
4.
Morale
Composite of feelings, attitudes and
sentiments that contribute towards
general satisfaction at workplace.
A Function of freedom or restraint
towards some goal.
It mobilizes sentiments.
Morale reflects Motivation.
1.
2.
3.
4.
5.
Motivation
Motivation moves person to action.
A Process of stimulating individuals
into action to accomplish desired goals.
A Function of drives and needs.
It mobilizes energy.
Motivation is a potential to develop
morale.
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PERSONNEL POLICIES
2.
3.
Minimize Favouritism:
discrimination
4.
Promote Stability: Personnel policies ensure continuity of action plan even if top
management is changed. These policies promote stability.
5.
6.
Basic Needs: Personnel policy helps the management to think deeply about basic
needs of organization and the employees.
7.
8.
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Social Decisions: Hours of work, welfare measures, work rules, safety, health,
sanitation and noise control.
2.
3.
Economic Decisions:
Methods of manufacturing, automation, lay offs, shutdowns, mergers and acquisitions and other financial aspects.
Board Level
2.
3.
Complete Control
4.
Staff Councils
5.
Joint Councils
6.
Collective Bargaining
7.
8.
Suggestion Schemes
9.
Quality Circles
10.
Empowered Teams
11.
12.
Financial Participation
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BENEFITS OF PARTICIPATION
1. Gives identity to an employee
2. Motivates employee
3. Self-esteem, job satisfaction and cooperation improves
4. Reduced conflicts and stress between Management and workers
5. More commitment to goals
6. Less resistance to change
7. Less labour problems
8. Better quality suggestions expected
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UNIONS
Employee associations are popularly known as unions. Although they have become
synonymous with strikes and unreasonable demands, their role is much wider than this.
Unions make their presence felt in recruitment and selection, promotions, training,
termination or lay off. Many programs, which contribute to the Quality of Work Life
(QWL) and productivity, are undertaken by management in consultation with and with the
cooperation of the unions. Unions also participate in deciding wage and salary structure
and negotiate revisions once in 3 or 5 years.
Trade unions are voluntary organizations of workers or employers formed to promote their
interests through collective action. Trade unions Act 1926 defines a trade union as a
combination, whether temporary or permanent formed primarily for the purpose of
regulating the relation between
1.
2.
3.
For imposing restrictive conditions on the conduct of any trade or business and includes
any federation of two or more trade unions
2.
By force
3.
Dissatisfaction
4.
Lack of Power
5.
Union Instrumentality
2.
To secure improved terms and conditions of employment for its members and the
maximum degree of security to enjoy these terms and conditions.
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3.
To obtain improved status for the worker in his work or her work
4.
To increase the extent to which unions can exercise democratic control over
decisions, which affect their interests by power sharing at the national, corporate
and plant levels.
The union power is exerted primarily at two levels. Industry level to establish joint
regulation on basic wages and hours with an employers association. Plant level, where the
shop stewards organizations exercise joint control over some aspects of the organization of
work and localized terms and conditions of employment.
Unions are party to national, local and plant level agreements, which govern their actions to
a greater or lesser extent, depending on their power and on local circumstances.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
To transfer workmen
12.
13.
To replace workers
14.
15.
16.
17.
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ORGANIZATIONAL DOWNSIZING
Downsizing necessarily means reducing work force to an optimal level depending upon the
business conditions and organizational needs. It is said that an organization should be
rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly
following method used to downsize the workforce as mentioned below.
RETRENCHMENT
It means termination of service. It is a termination for reasons other than disciplinary
actions, retirement or superannuating, expiry and termination of contract or prolonged
illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for
retrenchment. If notice and compensation are not given, the worker will not be called as
retrenched. Compensation is payable for 15 days wages for every completed year of service
besides one months notice or pay in lieu of notice. But employee should have completed at
least one year of complete service in order to receive compensation.
LAY OFFS
Lay off is inability of the employer to provide employment to workers due to
circumstances beyond his control such as shortage of power, coal, breakdown of
machinery, natural calamity etc. It is not a termination of service. Lay off compensation
can be claimed as a statutory right by the worker if he has completed one year of
continuous service or has worked for 240 days on the surface or 190 days underground in
12 calendar months. Compensation payable is half of the wages.