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Q.1) Define Human resource development?

Roles responsibility
and functions in an organization and its importance?


Human Resource Development (HRD) is a

framework for helping employees, develop there personal and
organizational skills, knowledge and abilities. Human Resource
Development includes such opportunities as employee training, employee
carrier development, coaching, succession planning, key employee
identification, tuition assistance and organizational development.

 Role of Human Resource Development:

• Human Resource Development reinforce the executive

Skills by marketing people aware about the skills required for
job performance and by outlining performance standards.

• It uploads career planning and ensure all around growth of


• It makes utilization of manpower by employing right man to

right job at right time.

• It is two ways process and establishes congenital growth of


• It is action oriented. Employee’s contributions are rewarded


• It facilitates human resource planning and control by

maintaining update data about the manpower for present and
future use.

• It fights resistance to changes and employees become

accommodating and willing to accept the change.
• It brings about an atmosphere of mutual trust and confidence
leading to overall better performance.
• It maintains transparency in administration.
• It encourages people to show innovation while solving problems
and also take calculated risks.

 Responsibilities of Human Resource


• Fairness in the workplace:

One important managerial
responsibility is making sure that all managers and staff
apply personnel policies on a day-to-day basis and distribute
tasks and responsibilities fairly and equitably among
employees. When developing an integrated human resource
management system, you should review your organization's
job classifications and related salary scales to ensure that
salaries are appropriate to the level of responsibility and are
competitive when compared with local economic conditions.

• Setting Work Priorities:

You should also review your organization's
personnel policies, update them as needed, and make the updated
information available to all staff. One of the steps you can take in
strengthening an HRD system is to make sure that all staff has a current
and up-to-date job description that provides them with information about
their general duties and responsibilities. The job description provides the
supervisor with a starting place in developing a work plan with the

• Encouraging Good Performance:

An important element of a work
planning and performance review system is holding joint
work planning and performance review meetings on a
regular basis. This system allows both the supervisor and the
employee to evaluate performance and to plan ahead for
training or other career development activities, if needed. A
work planning and performance review system can improve
individual staff performance and increase staff motivation. If
you use the system as the basis for creating a staff
development plan, it will also help you align staff
development efforts more closely with your organization's

• Providing Meaningful Work:

Communicating to employees
that their work matters is an important element in an HRD
strategy. Engaging in systematic planning and taking steps
to make sure that people's day-to-day work directly supports
the priorities of the organization is critical to meeting your
organization's objectives. These objectives represent the
strategic areas in which your organization has decided to
focus in a given year, as identified during your organization's
annual planning process.

• Staff Development Responsibility :

Making staff development a
priority is an importance component of a comprehensive
HRD system. A well-managed program of training and staff
development can broaden the skills and competencies of
your staff and reap many pay-offs. Formal, organized
training is only one vehicle for staff development. Other staff
development strategies include:

• On-the-job learning through mentoring relationships;

• Cross-functional assignments;
• Membership in task forces and committees;
• Additional job assignments;
• Technical presentations and discussions at staff meetings.

These can all provide the challenge and opportunity needed

for personal and professional growth as well as increase the
knowledge that people have in common and expose them to
new ways of thinking and doing.

 Functions of Human Resource

• Develop a HR philosophy for the entire organization and get the
top management committed to it openly and consistently.
• Keep inspiring the line managers to have a consistent desire to
learn and develop.
• Constantly plan and design new methods and systems of
developing and strengthening the HRD climate.
• Be aware of the business/social/other goals of the organizations
and direct all their HRD effort to achieve these goals.
• Monitor effectively the implementation of various HRD
• Work with unions and associations and inspire them.
• Conduct human process research, organizational health surveys
and renewal exercise regularly.
• Influence human resource policies by providing necessary inputs to
the human resource development/top management.


Human Resource is the most Important and vital Factor of Economic
Development or it can be said that humans are the agents of development.
Some of the importance of Human Resource or Human Capital is as follows:

1) Country Develops if The Human Resource is

Developed: To enhance economic development the state
constructs roads, buildings bridges, dams, power houses, hospitals,
etc. to run these units doctors, engineers, scientist, teachers, are
required. So if the state invests in a human resource it pays dividend
in response.

2) Increase in Productivity: The batter education,

improved skills, and provision of healthy atmosphere will result in
proper and most efficient use of resources (non-natural & natural)
which will result in increase in economic production.

3) Eradication of Social and Economic

Backwardness: Human Resource development has an ample
effect on the backwardness economy and society. The provision of
education will increase literacy which will produce skilled Human
Resource. Similarly provision of health facilities will result in healthy
Human Resource which will contribute to the national economic

4) Entrepreneurship Increase: Education, clean

environment, good health, investment on the human resource, will all
have its positive effects. Job opportunities would be created in the
country. And even business environment will flourish in the state
which creates many job opportunities.

5) Social Revolution: Because of Human Resource

development the socio economic life of the peoples of a country
changes drastically. Over all look changes thinking phenomena
changes, progressive thoughts are endorsed in to the minds of peoples.
Q.2) What are the various techniques of job design? What are
the various methods of job evaluation (in brief)?


It is the process of deciding on the content of a job in terms of its duties, on

the methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relation between the employees.

Techniques of job design are as follows:

(1)Job simplification:

In the job simplification technique the job is simplified.

A given job is divided into small sub-parts and each part is assigned to
different individual.

Work simplification is introduced when job designer feels that the job is not
Job Enlargement:

Job enlargement is a horizontal expansion of job tasks; that is, the worker is
assigned more tasks at the same general skill level.

In a manufacturing setting, job enlargement might mean having a worker do

several tasks at a work station rather than only one or two.

In a bank, it might mean training a person to write home loans, car loans,
and installment loans rather than only one of these.

Job Enrichment

It involves vertical expansion of a job’s responsibilities and skills.

It may mean that a production worker is involved in the design of the

product or production process, is responsible for her own quality testing,
handles customer complaints, or deals directly with suppliers.

For job enrichment to be of greatest value, at least some of the added tasks
and responsibilities should involve greater use of the worker’s capabilities,
including creativity, pattern recognition, interpersonal communication, and
problem solving.

Vertical expansion of the job necessitates greater training and empowerment

of line workers.

Job Rotation:
Job rotation can be used to make work more interesting while exploiting the
efficiencies of narrowly defined, repetitive jobs is to have employees work
in teams and exchange jobs on a periodic basis.

Within a department or production line there may be three, four, or more

different jobs, each involving a different level of interest for the workers.

If workers take turns and rotate among the jobs, no one is stuck with an
extremely boring or physically demanding job all the time; the desirable and
undesirable jobs are equally shared.
How often rotation occurs will vary from job to job and will be affected by
learning rates, the time needed to switch jobs, and the relative desirability of
the jobs.

Autonomous or Self-Directed Team: A self – directed work team is a

group of committed employees who are responsible for a ‘whole’ work
process or segment that delivers a product or service to an internal or
external customer.

High-Performance Work Design: It is a means of improving

performance in an environment where positive and demanding goals are
set. It starts from the principle of autonomous group working and
develops an approach which enables groups to work effectively together
in situations where the rate of innovation is high. Employees are needed
to gain and apply new skills quickly with minimum supervision for
operational flexibility.

Job Evaluation
Job Evaluation is the process of analysis and assessment of jobs to ascertain
reliably their relative worth, using the assessment as a basis for a balanced
wage structure.

Job Evaluation is used to establish a wage structure which is acceptable to

both Management and Labour by providing a relative value of every job in a
plant or industry.
Job Evaluation may be defined as “an attempt to determine and compare
demands which the normal performance of a particular job makes on normal
workers without taking into account into the individual abilities or
performance of the workers concerned.

Objectives of Job Evaluation

The major objectives of job evaluation are to help management achieve:

1. Equitability of wage structure within the firm, and
2. Consistency of the firm’s overall wage structure with that of the
industry in which the firm operates.

Job evaluation methods are of two categories – non analytical and analytical

Non-Analytical Methods: - These methods make no use of detailed job

factors. Each job is treated as a whole in determining its relative ranking.

 Ranking Method
 Job – Grading Method

Analytical Methods: -

 Point Ranking Method

 Factor Comparison Method

 Ranking Method:

This is the simplest and the most inexpensive method of evaluation.

The evaluation is done by assessing the worth of each job on the basis of its
title or on its contents, if the latter is available.
The job is not broken down into elements or factors. Each job is compared
with others and its place is determined.
Drawbacks – Job evaluation may be subjective, as the jobs are not broken
into factors. It is hard to measure whole jobs.

 Job – Grading method:

This method does not call for a detailed or quantitative analysis of job
factors. It is based on the job as a whole.
Under this method the number of grades if first decided upon and the
factors corresponding to these grades are then determined.
Facts about jobs are collected and are matched with the grades, which have
been established.
The essential requirements of this method are to frame grade descriptions to
cover discernible differences in degree of skill, responsibility and other job
Job grades are arranged in the order of their importance in the form of a
schedule. The lowest grade may cover jobs requiring greater physical work
under close supervision, but carrying little responsibility.
Each succeeding grade reflects a higher level of skill and responsibility,
with less and less supervision.
More job classification schedules need to be prepared because the same
schedule cannot be used for all types of jobs.

Point Ranking Method:

This system starts with the selection of job factors, construction of degrees
for each factor, and assignment of points to each degree. Different factors
are selected for different jobs, with accompanying differences in degrees and
points. The range of grades and scores is also predetermined- for example,
from 210 to 230 points, the 5th grade; 231 to 251 points the 6th grade and so
forth. A given fob is placed on a particular grade, depending on the number
of points it scores.

Factor Comparison Method:

Under this method one begins with the selection of factors usually five of
them- mental requirements, skill requirements, physical exertion,
responsibility and job conditions.
These factors are assumed to be constant for all the jobs. Each factor is
ranked individually with other jobs.
For example – all jobs may be compared first by the factor ‘mental
Then the skills factor, physical requirements, responsibility and working
conditions are ranked.
Thus a job may rank near the top in skills but low in physical requirements.
The total point values are then assigned to each factor.
The worth of a job is then obtained by adding together all the point values.

Q.6) Explain the process of training program? What are

the methods of training?
Definition of training:
According to Edwin Flippo, training is “the act of increasing the knowledge
and skill of an employee for doing a particular job.”

Training may be defined as “a planned programme designed to improve

performance and to being about measurable changes in technical knowledge
and skills of employees for doing a particular job.”

Two methods of training.

This type of training is also known as job instruction training, is the most
commonly used method.
Under this method the individual is placed on a regular job and certain
skills are taught that are necessary to perform that job.
The trainee learns under the supervision and guidance of a qualified
worker or instructor. On the job training has the advantage of giving first
hand knowledge and experience under the actual working conditions.
On the job training method include job rotation, coaching, job instruction
or training through step-by-step and committee assignments.
a) Job rotation: Job rotation involves movement of trainee from
one job to another. The trainee receives job knowledge and
gains experience from the supervisors or trainers in each of
different job assignment. This method gives on opportunity to
the trainee to understand the problems of employees on other
jobs and respect them.
b) Coaching: In coaching superior plays an active role in training
the subordinate by assigning him challenging tasks. The
superior acts as a coach in training the subordinate by assisting
and advising him to complete the assigned task..
c) Job instruction: This method is known as training through step
by step. Under “ “trainer explains trainee the way of doing
job, job knowledge and skills and allows him to do the job. The
trainer appraises the performance of the trainee, provides
feedback information and corrects the trainee. The process or
the steps under job instruction method are as follows
Step1: Prepare the employee for instruction. Put him at ease.
Explain the job and its importance. Get him interested in
learning the job.
Step 2: Present the job. Follow your breakdowns. Explain and
demonstrate one step at a time – tell why and how? Stress key
points. Instruct clearly and patiently. Give everything you will
want back, but no more.
Step 3: have him do the job. Have him tell why and how and
stress key points. Correct errors and omissions as he makes
them. Encourage him. Get back everything you gave him in the
step 2. Continue until you know he knows.
Step 4: Follow through. Put him on his own. Encourage
questions. Check frequently. Let him know how he is doing.
If the learner has not learnt, correct him and teach him

d) Committee assignment: Under committee assignment group of

trainers are given and asked to solve an actual organizational
The trainee solves the problem jointly. It develops teamwork.
B) OFF THE JOB TRAINING: Under this method of training,
trainee is separated from the job situation and his attention is
focused upon learning the material related to his future job
Since the trainee is not distracted by the job requirements, he
can place his entire concentration on learning the job rather
than spending his time in performing it. Off – field job training
methods are as follows:

1) Classroom method:
Classroom method for training personnel includes lectures,
discussions, role-playing and case study.

a) Lectures: It is common method to impart facts,

concepts, principles etc to a large group at one time.
The main advantage of lectures is that it can be used for
a very large group at one time and there is low cost per
b) Discussion: Combining lectures with discussion
eliminate the limitation of one-way communication. In
this method the trainees interact with the lecturer and
any doubts or misunderstanding of the concept and
principles are cleared.
c) Case study: In this technique, an actual or hypothetical
problem is presented to a training group for discussion
and solution. It is important to note that the problem is
presented in cases is usually do not have a single
solution, but narrow mindedness of trainees is reduced
as problem-solving ability is increased.

2) Vestibule training: In this method, actual work conditions are

simulated in the classroom. Material, files and equipments
those are used in actual job performance are also used in
training. This type of training is commonly used for training
personnel for clerical and semi-skilled jobs. The duration of this
training ranges from days to a few weeks.
3) Committee conference: Committees can be a method of
training. The junior members of the committee can learn from
the discussion and interaction with the senior member of the
committee. The senior member can also learn from the opinions
and views expressed by the junior members. Committees can
serve the purpose of developing good social relations. In the
case of conference, group discussions and the meetings are held
to discuss various issues and to provide solutions to various
problems. The chairperson leads the discussion and then the
participants attempt to provide solutions. The conferences act as
a group interaction and exchange of views and idea. It reshapes
thinking and attitudes of t6he participants.

4) Reading, television and video instructions: Planned reading of

relevant and current management literature is one of the best
methods of management development. It is essentially a self-
development programme. A manager may be aided by training
department, which often provide a list of valuable books. Also
there are television programme that are features towards
management development. Videotapes are also available
whereby important managerial discussions, debates and talks
can be viewed and listened.

5) Role playing: It is defined as a method of human interaction

that involves realistic behavior in imaginary situations. this
method of training involves actions, doing and practice. The
participants play the role of certain characters, such as
production manager, mechanical engineer, superintendents,
maintenance engineers, quality control inspectors, foreman,
workers and the like. This method is mostly used for
developing interpersonal interactions and relations.
Every company has a specific training procedure, depending upon its
requirements. A general training procedure is explained below along with


Determining training need of employee

Select a target group for training

Preparing trainers

Developing training packages



Follow up
1. Determining training needs of employee :-
In the very 1st step of training procedure, the HR department,
identifies the number of people requiring training, specific area in which
they need training, the age group of employee, the level in organization
etc. in some cases the employee may be totally new to the organization.
Here the general introduction training is required. Some employees may
have problems in specific areas; here the training must be specific. This
entire information is collected by HR department.
2. Selecting target group :-
Based on information collected in step 1 the HR department divides
employee into groups based on the following.
 Age group of the employee to be trained
 The area in which training is required
 Level of the employee in the organization
 The intensity of training etc.

3. Preparing trainers :-
Once the employees have been divided into groups, the HR
department arranges for trainers. Trainers can be in house trainers or
specialized trainers from outside. The trainers are given details by HR
department, like number of people in the group, their age, their level in
organization, the result desired at the end of training, the area of training,
the number of days of training, the training budget, facilities available
4. Preparing training packages :-
Based on the information provided by trainers, he prepares entire
training schedule i.e. number of days, number of sessions for each day,
topics to be handled each day, depth of which the subject should be
covered, the methodology for each session, the tests to be given foe each
session, handout/printed material to be given in each session etc.
5. Presentation :-
On the first day of training program the trainer introduces
himself and specifies the need and objective of the program. This is
done so that employees get the right idea about the objectives. He then
actually starts the program. The performance of each employee is tracked
by the trained and necessary feedback is provided.
6. Performance :-
At the end of training program the participants reports back to their
office or branches. They prepare report on the entire training program
and what they have learned. They the start using whatever they have
learnt during their training. Their progress and performance is constantly
tracked and suitable incentives are given if the participant is able to use
whatever he has learnt in training.
7. Follow up :-
Based on the employee performance, after training, the HR
department is able to identify what is exactly wrong with training
program and suitable correction is made in the training programme in the

Q.7)Difference between training and development?

Explain any five methods of Management development

Difference between training and development:

Training Development
Nature Tangible in nature. Intangible in nature.
Training is more Development is more
specific, job-related general in nature,
information. especially at the top
level management level.
Importance Training is important Development is
because technology is important to adapt to
improving and new technology and
changing. changing patterns in
Skills Training deals with Development deals with
non- human skills. human skills.
Directed towards Training is normally It is directed at
directed at operative managerial personnel to
employees and relates acquire conceptual and
to technical aspects. human skills.
Methodology Greater emphasis on Greater emphasis on
ON-JOB methods OFF the Job methods.
Frequency Training is less It is more frequent and
frequent; it is carried continuous in nature.
out mostly at induction
and every succeeding
stage of the job.
Who imparts Mostly the supervisors Supervisors, external
impart training experts and self
undertake development.
Relevance Training is of more Development is of
relevance at junior- higher relevance at
levels. middle and senior

Cost involved Imparting is less Imparting development

expensive is more expensive.
Duration Training courses are It involves a broader
designed mostly for long-term education for
short term. a long run term.

Methods of training managers

On the job training off the job training

Job rotation Classroom method

Planned progression Simulation
Coaching and counseling Business games
Under study Committees
Junior boards Conferences
In-basket training


On the job method refers to training given to personnel inside the company.
There are different methods of on the job training.
1. Job rotation
This method enables the company to train managerial personnel in
departmental work. They are taught everything about the department.
Starting from the lowest level job in the department to the highest level
job. This helps when the person takes over as a manager and is required
to check whether his juniors are doing the job properly or not. Every
minute detail is studied.
2. Planned progression :-
In this method juniors are assigned a certain job of their senior in
addition to their own job. The method allows the employee to slowly
learn the job of his senior so that when he is promoted to his senior’s job
it becomes very easy for him to adjust to the new situation. It also
provides a chance to learn higher level jobs.

3. Coaching and counseling :-

Coaching refers to actually teaching a job to a junior. The senior
person who is the coach actually teaches his junior regarding how the
work must be handled and how decisions must be taken, the different
techniques that can be used on the job, how to handle pressure. There is
active participation from the senior.
Counseling refers to advising the junior employee as and when he
faces problems. The counselor superior plays an advisory role and does
not actively teach employees.
4. Under study :-
In this method of training a junior is deputed to work under a senior.
He takes orders from the senior, observes the senior, attends meetings
with him, learns about decision making and handling of day to day
problems. The method is used when the senior is on the verge of
retirement and the job will be taken over by the junior.
5. Junior board :-
In this method a group of junior level managers are identified and they
work together in a group called junior board. They function just like the
board of directors. They identify certain problems; they study the
problem and provide suggestions. This method improves team work and
decision making ability. It gives an idea about the intensity of problem
faced by the company. Only promising and capable junior level managers
are selected for this method.


Off the job training refers to method of training given outside the company.
The different methods adopted here are
1. Classroom method :-
The classroom method is used when a group of managers have to be
trained in theoretical aspects. The training involves using lectures, audio
visuals, case study, role play method, group discussions etc. The method
is interactive and provides very good results.
2. Simulation :-
Simulation involves creating an atmosphere which is very
similar to the original work environment. The method helps to train
managers in handling stress, taking immediate decisions, handling
pressure on the jobs etc. An actual feel of the real job environment is
given here.

3. Business games :-
This method involves providing a market situation to the trainee
manager and asking him to provide solutions. If there are many people
to be trained they can be divided into groups and each group
becomes a separate team and play against each other.
4. Committee :-
A committee refers to a group of people who are officially
appointed to look into a problem and provide solutions. Trainee
managers are put in the committee to identify and study a problem in the
organization and to provide suggestions on how they will solve the
problem and to explain what they learnt from it.
5. Conference :-
Conferences are conducted by various companies to have elaborate
discussions on specific topics. The company which organizes the
conference invites trainee managers from different companies and calls
for experts in different fields to give presentations or lectures. The trainee
managers can ask their doubts to these experts and understand how
problems can be solved on the job.
6. Readings :-
This method involves encouraging the trainee manager to increase his
reading related to his subject and then asking him to make a
presentation on what he has learnt. Information can be collected by
trainee manager from books, magazines and internet etc.
7. In basket training :-
The method is adopted from the ‘IN’ and ‘OUT’ baskets normally
found in the manager’s cabin. In this method the training is given to the
manager to handle files coming in and to finish his work and take
decisions within a specified time limit. The trainee manager is taught
how to prioritize his work, the activities which are important for his job
and how to take decisions within limited time.
Q.3)Explain the process of HR planning? Show flow chart?

According to Geisler, “Manpower planning is the process –Including
forecasting, developing and controlling by which a firm ensures that it has-
• The right number of people,
• The right kind of people,
• At the right places,
• At the right time, doing work for which they are economically most

Process of HR planning:
1) Analyzing organizational plans.

2) Demand forecasting – forecasting overall human resources

requirements in accordance with the organizational plans.

3) Supply forecasting – obtaining the data & information about

present & future human resource.

4) Estimating the net human resources requirements.

5) Incase surplus, plan for redeployment, retrenchment and lay-off.

6) Incase deficit, forecast future supply of human resources.

7) Plan for recruitment, development if supply is more than or equal

to net human resource requirements.

8) Plan to modify or adjust the organizational plan if supply will be

inadequate with reference to future net requirements.
Q.4)What is the difference between recruitment and
selection? What is induction? Write down its objectives,
procedure and methods?

Recruitment Selection

Recruitment is the process of searching the Selection involves the series of steps by which
candidates for employment and stimulating the candidates are screened for choosing the
them to apply for jobs in the organization most suitable persons for vacant posts.

The basic purpose of recruitments is to

create a talent pool of candidates to enable The basic purpose of selection process is to
the selection of best candidates for the choose the right candidate to
organization, by attracting more and more fill the various positions in the organization.
employees to apply in the organization

Recruitment is a positive process i.e.

encouraging more and more employees to
Selection is a negative process as it involves
rejection of the unsuitable candidates

Recruitment is concerned with tapping the Selection is concerned with selecting the most
sources of human resources. suitable candidate through various interviews
and tests.

There is no contract of recruitment

established in recruitment. Selection results in a contract of service
between the employer and the selected
Induction is the process of the receiving and welcoming an employee
when he first joins a company and giving him the basic information he
needs to settle down quickly and happily and start work.

It also known as a ‘Orientation’ orientation is therefore, the process

of indoctrination, welcoming, acclimatization, acculturalisation and

 Objectives of Induction:

i. To help the newcomer overcome his natural shyness and nervousness

in meeting new people in a new environment.

ii. To build up the new employee’s confidence in the organization and in

himself so that he may become an efficient employee.

iii. To develop among the newcomers a sense of belonging and loyalty to

the organization.

iv. To foster a close and cordial relationship between the newcomers and
the old employees and there supervisors.

v. To ensure that the newcomers do not from false impression and

negative attitude towards the organization or the job because first
impression is the last impression.

vi. To give the newcomers necessary information such as location of

cafeteria, toilets and locker rooms; rest period and leave rules, etc
Q) Short notes on:
Career planning:
Career planning is one important aspect of human resource planning and
Every individual who joins an organization desires to make a good career
for himself within the organization.
He joins the organization with a desire to have a bright career in terms of
status, compensation payment and future promotions.
From the point of view of an organization, career planning and development
have become crucial in management process.
An organization has to provide facilities/opportunities for the career
development of individual employees.
If the organizations want to get the best out of their employees, they must
plan regularly the career development programme in their organizations.
In brief, career planning refers to the formal programme that organizations
implement to increase the effectiveness and efficiency of the human
resources available.
Career planning and development is the responsibility of the HR department
of the organization.
As already noted, every person joining an organization has a desire to make
career as per his potentiality, ability, skills and so on.
1) To map out careers of employees as per their ability and willingness
and to train and develop them for higher positions.
2) To attract and retain the right type of persons in the organization.
3) To utilize available managerial talent within the organization fully.
4) To achieve higher productivity and organizational development.
5) To provide guidance and assistance to employees to develop their
potentials to the highest level.
6) To improve employee morale and motivation by providing training
and opportunities for promotion.


The following activities/areas are covered within the scope of
organizational career planning:
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

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

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. There is little or no set back due to absence of key employee.

3. Acts as a motivator for the individual employee who comes to know of

the impending promotion in advance.
Labour turnover:
Labour turnover is the rate at which an employer gains and loses employees.

Simple ways to describe it are "how long employees tend to stay" or "the
rate of traffic through the revolving door.

“Turnover is measured for individual companies and for their industry as a

If an employer is said to have a high turnover relative to its competitors, it
means that employees of that company have a shorter average tenure than
those of other companies in the same industry.

High turnover can be harmful to a company's productivity if skilled workers

are often leaving and the worker population contains a high percentage of
novice workers

High Labour Turnover causes problems for a business. It is costly, lowers

productivity and morale and tends to get worse if not dealt with.

Labour Turnover does not just create costs, but some level of Labour
Turnover is important to bring new ideas, skills and enthusiasm to the labour
Fringe benefits may be defined as wide range of benefits and services that
employees receive as an integral part of their total compensation package.
They are based on critical job factors and performance.

Fringe benefits constitute indirect compensation as they are usually

extended as a condition of employment and not directly related to
performance of concerned employee.

Fringe benefits are supplements to regular wages received by the workers at

a cost of employers.

They include benefits such as paid vacation, pension, health and insurance
plans, etc. Such benefits are computable in terms of money and the amount
of benefit is generally not predetermined.

The purpose of fringe benefits is to retain efficient and capable people in the
organization over a long period.

They foster loyalty and acts as a security base for the employees.


(1) Payment for time not worked by the employee:

• Holidays.
• Vacations.
• Leave with pay and allowances.

(2) Contingent and deferred benefits:

• Pension payment.
• Group life insurance benefit.
• Group health insurance.
• Sick leave, maternity leave, child care leave, etc.
• Suggestion/service award
• Severance pay.

(3) Legally required payments:

• Old age, disability and health insurance
• Unemployment compensation
• Worker's compensation.

(4) Misc. benefits:

• Travel allowances.
• Company car and membership of clubs, etc
• Moving expenses.
• Child care facilities.
• Tool expenses and meal allowances, etc

Wages and Salary

Wages represent hourly rates of pay, and salary refers to the monthly rate of
pay, irrespective of the number of hours put in by an employee.

Wages and salaries are subject to annual to small increments.

They differ from employee to employee, and depend upon the nature of job,
seniority, and merit.

♦ Wages:
Wages are compensation. This includes basic wages, allowances,
bonuses etc. On the employers’ points of view, wages form that part of
cost of production which is attributed as compensation paid to labor.
Wages are paid in the form of time rate or piece rate to the workers, who
are directly involved in the production or commercial activities.

♦ Salary:
This is compensation paid to the indirect labor in the form of cash.
Indirect labor involves supervisors, managers and supporting staff like
office assistants, clerks, etc. Salaries are paid in the form of time rate,
mostly on monthly basis.

♦ On the basis of the employee needs and ability of the organization,

there are various kinds of wages. Wages are generally four types:

♦ Subsistence wages
♦ Minimum Wages
♦ Fair Wages
♦ Living Wages
Q.5) What is 360 degree appraisal and write down its
advantages and disadvantages. Explain its assessment
360 systems involve evaluation of a manager by every one above him,
alongside and below him.

Structured questionnaires are used to collect responses about the manager

from his boss. Peers and subordinates.

Several parameters relating to performance and behavior are used in the


Each manager is assessed by a minimum of fifteen colleagues, at least two

of then being his bosses, four of them peer, and six of them subordinates.

The responses are presented collectively to the assesses in the form of charts
and graphs. Comments and interpretations are presented later.

Counseling sessions are arranged to solve the weakness identified in the 360
degree assessment.

Several corporations like general electronics, reliance industries, Crompton

graves, Godrej soaps, Wipro, Infosys, Thermax etc. are making use this

The 360 degree assessment program is effective when used from the top

The fact that the manager at the top has also been administered the test
convinces everyone and they are willing to go through it as well?
 Advantages of 360 degree appraisal:

i. Greater self awareness of the top management.

It reveals strength and weaknesses in there managing style.

ii. The gap between self assessment and the views of one’s colleagues
is reduced.

iii. When peer group assessment is included teamwork thrives.

iv. Facts about organizational culture and ambiance are brought to


v. Empowerment is facilitated.

vi. Inflexible managers are forced to initiate self-change.

 Disadvantages of 360 degree appraisal:

i. The system may be utilized to humiliate people.

ii. Responses from colleagues trends to be biased.

iii. Linking rewards to finding can prove to be unfair.

iv. Ignores performance in terms of reaching goals.

v. Assesses may deny the truth of negative feedback.

• Assessment centre:

It may be define as a central location where managers may come
together to have their participation in job related exercises evaluated by
trained observer.

 Features of assessment center:

• Assessment center is now used for performance appraisal of executive
and supervisor staff. It is a modern and reliable method for assessment
of staff.

• Here, managers have to participate in job related exercises and their

performance is judged by trained observer.

• Assessment center developed first in the US but are now gaining

universal popularity.

• Companies in India also used this technique but also help to determine
training and development needs of employees.

• It provides data for human resource planning.

• Assessment centers not only useful as an appraisal technique but also

help to determine training and development needs of employee