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SEMESTER II
Module 1: (8 hours)
Human Resource Management:
Introduction, meaning, nature, scope of HRM. Importance and Evolution of the concept of HRM. Major
functions of HRM, Principles of HRM, Organization of Personnel department, Role of HR Manager.
HRMs evolving role in the 21st century.
Module 2: (8 hours)
Job Analysis: Meaning, process of Job Analysis, methods of collecting job analysis data, Job Description
and Job Specification, Role Analysis.
Human Resource Planning: Objectives, Importance and process of Human Resource Planning, Effective
HRP.
Module 3: (8 hours)
Recruitment: Definition, Constraints and Challenges, Sources and Methods of Recruitment, New
Approaches to recruitment.
Selection: Definition and Process of Selection.
Placement: Meaning, Induction/Orientation, Internal Mobility, Transfer, Promotion, Demotion and
Employee Separation.
Module 4: (8 hours)
Training and development: Training v/s development, Training v/s Education, Systematic Approach to
Training, Training Methods, Executive Development, Methods and Development of Management
Development, Career and Succession Planning.
Module 5: (8 hours)
Performance Appraisal: Concept of Performance Appraisal, the Performance Appraisal Process, Methods
of Performance Appraisal, Essential Characteristic of an Effective Appraisal System.
Compensation: Objectives of Compensation Planning, Job Evaluation, Compensation Pay Structure in
India, Wage and Salary Administration, Factors Influencing Compensation
Levels, Executive Compensation.
Module 6: (8 hours)
Employee Welfare: Introduction, Types of Welfare Facilities and Statutory Provisions.
Employee Grievances: Employee Grievance procedure, Grievances Management in Indian Industry.
Discipline: Meaning, approaches to discipline, essential of a good disciplinary system, managing difficult
employees.
Module 7: (8 hours)
Industrial Relations: Overview of industrial relations and industrial conflict.
Industrial disputes: preventive and settlement machinery, collective bargaining, industrial relations
scenario: current issues and future challenges.
Practical Component:
1. Give a case and ask the students to prepare the recruitment advertisement for a newspaper.
2. Expose students to standard selection tests followed in various sectors.
3. Exploring training and development practices.
4. Exploring performance appraisal practices in various sectors.
5. Exploring employee separation practices.
6. Give a job analysis case and ask the students to prepare job description and job Specification.
7. Ask the students to prepare an appointment letter for the post of office manager of a Company
known to you.
RECOMMENDED BOOKS:
1. Human Resource Management Rao V. S. P, Excel BOOKS, 2010
2. Human Resource Management - Cynthia D. Fisher, 3/e, AIPD, Chennai.
3. Human Resources Management: A South Asian Perspective, Snell, Bohlander, &
Vohra, Cengage Learning, 16th Rep., 2012.
4. Human Resource Management - Lawrence S. Kleeman, Biztantra, 2012.
5. Human Resource Management Aswathappa K HPH
REFERENCE BOOKS:
1. Human Resource Management - John M. Ivancevich, 10/e, McGraw Hill.
2. Human Resource Management in practice - Srinivas R. Kandula, PHI, 2009
3. Managing Human Resources - Luis R Gomez-Mejia, David B. Balkin, Robert L.
Cardy, 6/e, PHI, 2010.
4. P.Subba Rao, Human Resource Management & Industrial relations, Himalaya
Publishing House, Mumbai.
Table of Contents
Module 1
Human Resource Management
Introduction:
Human resource is the most important asset of any organisation.HR are the building blocks and
are required skills to make an organization to achieve the set goal & targets. HRM is all about how
to induce people to make an organization by getting the people who can make an organization,
enabling those people to acquire required capabilities to make a successful organization and
motivating them to contribute their resources continuously for running the organisation
successfully. An organisation may be a manufacturing firm, a business concern, an insurance
company a government agency a social organisation, hospital, and university, a school or a
religious trust, cause oriented groups. It may be small or large, simple or complex. An organisation
is a human grouping in which work is done for the accomplishment of some specific goals or
mission. HRM is a broad sense may be defined as management function that Helps, Manages,
Recruit and Select, Train and Develop Members/Employees for an organisation. It is obviously
concerned with the peoples dimensions in organisation.
Meaning of HRM
It is this human resources which is of paramount importance in the success of any organisation
because most of the problems in organizational settings are human and social rather than physical,
technical or economic failure to reorganize this fast cause immense loss to the nation, enterprise
and individual. HRM is a broad sense may be defined as management function that helps, manages,
recruit, select, Train and develop members for an organisation. It is obviously concerned with the
peoples dimensions in organisation. The principal component of an organisation is its human
resource or people at work. Human resources may be defined as the resource with the knowledge
skills, creative ability, talents and aptitudes.
Nature and Scope of HRM
The Nature of HRM depends on the Role performed. Earlier, it was Line Managers who performed
HR Roles. But, now HR Professionals perform the roles of HRM. The scope of HRM is vast. All
major activities in the working life of an employee from Recruitment till retirement comes under
the purview of HRM.it consist of the following areas:
Nature of HRM
Employee hiring
Employee and executive remuneration
Employee motivation
Employee maintenance
Industrial relations
Prospects of HRM
Importance and Evolution of HRM
Human Resource are the most important asset of any organization. HRM is an important strategic
tool for an organization. It helps to establish on organizations sustainable competitive advantage.
Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific
selection of workers based on qualifications and also argues for incentive-based compensation
systems to motivate employees. The interpretation of the Hawthorne Studies' begins to have an
impact on management thought and practice. Greater emphasis is placed on the social and informal
aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers
is cited as a means to increase their productivity. Many companies establish departments devoted
to maintaining the welfare of workers. The discipline of industrial psychology begins to develop.
Industrial psychology, along with the advent of World War I, leads to advancements in
employment testing and selection.
The interpretation of the Hawthorne Studies' begins to have an impact on management thought
and practice. Greater emphasis is placed on the social and informal aspects of the workplace
affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to
increase their productivity. In the U.S., a tremendous surge in union membership between 1935
and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel
management. Compensation and benefits administration also increase in importance as unions
negotiate paid vacations, paid holidays, and insurance coverage.
Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in
terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action
to "managing diversity." A second trend is the globalization of business and the accompanying
technological revolution. These factors have led to dramatic changes in transportation,
communication, and labor markets. The third trend, which is related to the first two, is the focus
on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall
strategic planning of the firm in order to cope with rapid change, intense competition, and pressure
for increased efficiency.
Staff functions
Procurement: planning, recruitment and selection, induction and placement
Development: training, development, career planning and counselling.
Compensation: wage and salary determination and administration
Integration: integration of human resources with organization.
Maintenance: sustaining and improving working conditions, retentions, employee
communication
Separations: managing separations caused by resignations, terminations, layoffs, death,
medical sickness etc.
Principles of HRM
Principles of Human Resources Management have been well summarized. This involves the
proper management of all aspects of the people you are working with bearing in mind that human
resources is the most valuable resource your firm has. This means that the financial, health,
transportation, tools and anything employees need to work should be well taken care of.
Companies should ensure that they remunerate their employees accordingly. The employees
reward system should be able to sustain the organization. . Firms should be able to take charge of
their employees and ensure that productivity and quality is achieved and maintained. Control
should be exercised carefully so that it does not seem like tyranny. All the steps taken by a firm in
the management of human resources must be in line with the mission and vision of the firm. Human
Resources managers should direct their focus on what the company needs and employee abilities.
Communication is very important in every organization. Through communication, firms can
ensure there is flow of information that is necessary for efficiency. Creativity is key if a firm is to
be efficient in human resources management. Firms should adopt new ways of human resources
management as long as it fits their companies. It is an organizations responsibility to ensure that
their employees are skilled to do their duties. Because the competence of a firm depends on that
of its employees, firms should do everything to increase employee capabilities for example, by
training them. Firms must ensure that they remain the best brand to most of their clients by
maintaining their credibility. They should put in place strategies that ensure all employees have a
clear sense of direction to a common goal. Change is inevitable for businesses. The fastest business
to embrace change in management of their human resources is better placed to produce
better results. Every organization has objectives which they intend to meet both for themselves
and for their clients. To meet these goals, firms need committed staff therefore it is the firms
responsibility to keep their employees motivated so as to ensure they are committed to the
organizations course.
Organisation of personnel department
Status of the HR department in the total organisation structure depends on whether a unit is small
or large.In most of the small Organisations, there is no HR department, usually owners recruit the
staff and decide the salary and other benefits. Office staff/accountants handle all the HR activities.
A large small unit will have manager/directors heading the HR department. A large company with
many plants will have either a centralized HR department or decentralized HR departments at all
the plants. E.g. BHEL, ITI, L&T, HAL etc. relating to each plant are handled by respective HR
department whereas the broad policies, matters, concerning executives are handled by the
centralized department at the head/corporate office.
Many HR duties are assumed by management
-HR dept. size grows as these duties increase
-HR dept. increases in size as need grows
-specialization also increases with size of dept
HR as a strategic partner:
Executives with people management skills would be able to steal the show, since they help
integrate corporate goals with employee expectations in a successful way.HR executives would be
able to smoothly move into top management positions, using their soft skills to good advantage.
2. Talent Hunting, developing, retaining star employees: The 21 st century Corporation would be
looking for people with cross functional expertise with strong academic background and team
management skills. Corporates pay attention to talent acquisition, development and retention
through novel developmental efforts, compensation packages and incentives apart from flexible
work schedules.
3. Lean and Mean Organisations
Organisations will be forced to eliminate low-end jobs, say goodbye to older employees with
limited skill sets, outsource work to specialized institutions in an attempt to save costs and remain
highly competitive. As a result obtaining employee loyalty and commitment would be quite
challenging in such a scenario.
4. Labour relations
LPG Reforms means the end of the road for trade unions. They will lose their count slowly but
steadily. Governmental influence in labour- management relations would have only historical
significance as employment-related issues begin to be dictated by market forces.
5. Health care benefits
To attract talented workforce healthier work environments would be an absolute necessity.
Employers would be obliged to give their employees safe, healthy and secure work environments.
Wellness programs to solve potential health problems, Office dcor, and furniture design and space
utilization with a view to improve the comfort levels of employees are the top priorities of HR in
the current scenario.
Factors influencing HRM
In a dynamic Global environment, factors influencing HRM strategy are listed below:
Module 2
Job Analysis & Human resource Planning
Meaning
Job analysis is a process in which jobs are studied to determine what tasks and responsibilities they
include, their relationship to other jobs, conditions under which work is performed and the personal
characteristics required for satisfactory performance. Job analysis consists of two parts, a statement
of work to be performed and the skill and knowledge which must be possessed by any one filling
the job.
Process of Job analysis
Organisation Analysis
Selection of job to be analyzed
Data collection
Job description
Job specification
Steps involved
1) Strategies:
a) Extent of employees involvement in job analysis
b) The level of detail of job analysis
c) Timing and frequency of job analysis
d) Past oriented Vs. Future Oriented job analysis
4) Collection a job description: On features of the job, required employee behavior & human
requirement
5) Developing a job description: Contents of jobs in term of function & operations as given
in job description
Role Analysis
At middle and higher Management levels, a clear definition of expected and unexpected job related
behavior is not possible. A role is a set of expectations people have about the behavior of a person
in a position. A position holder may perform 3 types of roles 1.Expected Role, 2.Perceived Role
and 3.Enacted Role. The incumbents role is observed and feedback is provided for further
improvement.
It includes the following
Analysis the essential roles, tasks and responsibilities in that particular job
Collecting the list of roles to be performed
Sequencing the tasks and process
Analysis the skills and competencies for the task performance
Matching the skills required and the job demand.
Swot analysis of the employee
With future workforce needs considered, human resource planning must analyze the competency
of the present workforce. Comparing future needs with current workforce strengths and abilities
will identify gaps or surpluses. Future Preparation
Considering workforce surpluses and deficits, human resources must prepare action plans for the
workforce. This includes identifying the type and number of employees needed, employee
competency, budget considerations, recruiting and retaining measures, and the development and
training of employees. Evaluation Process
Ensuring objectives are being met by the future workforce requires an evaluation process. This
will determine if the workforce is adequate to satisfy strategic goals. Planning for this process now
will more easily and quickly identify future workforce gaps or surplus.
Importance and Process of Human Resource Planning
Importance of HRP
Human Resources Planning (HRP) anticipates not only the required kind and number of employees
but also determine the action plan for all the functions of personnel management .The major
benefits of Human resource planning are:
It checks the corporate plan of the organization.
It offsets uncertainly and change .But the HRP offsets uncertainties and changes to the
maximum extent possible and enables the organization to have right men at right time and
in right place.
It provides scope for advancement and development of employees through
training,development etc.
It helps to anticipate the cost of salary enhancement, better benefits etc.
It helps to anticipate the cost of salary, benefits and all the cost of human resources
facilitating the formulation of budgets in an organization.
To foresee the need for redundancy and plan to check it or to provide alternative
employment in consultation with trade unions, other organizations and government
through remodeling organizational, industrial and economic plans.
To foresee the changes in values, aptitude and attitude of human resources and to change
the techniques of interpersonal, management etc.
To plan for physical facilities, working conditions and the volume of fringe benefits like
canteen, schools, hospitals, conveyance, child care centers. Quarters, company stores etc.
It gives an idea of type of tests to be used and interview techniques in selection based on
the level of skills, qualifications, intelligence, values etc., of future human resources.
It causes the development of various sources of human resources to meet the organizational
needs.
It helps to take steps to improve human resource contributions in the form of increased
productivity, sales turnover etc.
It facilities the control of all the functions, operations, contribution and cost of human
resources.
Process of Human Resource Planning
HR Strategies
The means used to anticipate and manage the supply of and demand for human
resources.
Provide overall direction for the way in which HR activities will be
developed and managed.
Scanning the External Environment
Environmental Scanning
The process of studying the environment of the organization to pinpoint
opportunities and threats.
Environment Changes Impacting HR
Governmental regulations
Economic conditions
Geographic and competitive concerns
Workforce composition
Internal Assessment of the Organizational Workforce
Auditing Jobs and Skills
What jobs exist now?
How many individuals are performing each job?
How essential is each job?
What jobs will be needed to implement future organizational strategies?
Module 3
Recruitment, Selection and Placement
Definition
The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate
qualifications, and encouraging them to apply for jobs with an organization .Recruitment is the process of
locating and encouraging potential applicants to apply for existing or anticipated job openings. It is actually
a linking function, together those with jobs to fill and those seeking jobs.
Eg: Recruitment ad of a foreign bank may invite applications from chartered accountants who
have cleared the CA examination in the first attempt only.
Recruitment is a process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in an organization. FLIPPO
Recruitment is the discovering of potential candidates.
For actual or anticipated organizational vacancies. It is the linking activity bringing together
those with the jobs to fill & those seeking jobs DAVID.
Recruitment is the process to discover the sources of manpower to meet the requirements of
staffing schedule and to employ effective measures for attracting the manpower YODER.
HRP Support the organization ability to acquire, retain and develop the best talent and skills.
Determine present and future manpower requirements of the organization in coordination with planning
and job analysis activities.
Obtain the number and quality of employees that can be selected in order to help the organization to
achieve its goals and objectives.
Create a pool of candidates so that the management can select the right candidate for the right job from
this pool
Attract and encourage more and more candidates to apply in the organization.
Increase the pool of candidates at minimum cost.
Acts as a link between the employers and the job seekers
Infuse fresh blood at all levels of the organization
Meet the organization's legal and social obligations regarding the composition of its workforce.
Increase the effectiveness of various recruiting techniques
Constraints and Challenges
Poor image: of the company declining industry-earning a bad name, poor quality
Products-nepotism
Walk-in: A walk-in interview is a job screening that happens without an appointment or scheduled meeting.
They are common at career fairs and informal meet-and-greet sessions, and they conduct various tests and
interviews. Employers may offer candidates a job at the end, but more often than not, the meetings are used
as a way to quickly narrow down the applicant pool. Top candidates are often invited for a more formal
interview at a later date.
Consult-in: The busy and dynamic companies request the potential job seekers to approach them personally
and consult them regarding the jobs. The companies select the suitable candidates form among such
candidates through the selection process.
Head-Hunting: The Companys request the professional Organisations to search for the best candidates
particularly for the senior executive positions. The professional Organisations search for the most suitable
candidates and advise the company regarding the filling up of the positions. Head hunters are also called as
search consultants.
Body shopping: Professional Organisations and hi-tech training institutes develop a pool of human
resources for the possible employment. The prospective employers contact these organizations to recruit
the candidates. Otherwise, the organizations themselves approach the prospective employees to place their
human resources. These professional and training institutions are called body shoppers and these activities
are known as body shopping. The body shopping is used mostly for computer professionals.
Business alliances: Business alliances like acquisitions, mergers, and take-overs help in getting resources.
In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. It does
mean that, the company with surplus human resources offers the services of their employees to other needy
organizations.
E-recruitment: The technological revolution in telecommunication helped the Organisations to use the
internet as a source of recruitment. Organisations advertise the job vacancies through the World Wide Web
(www) internet. The job seekers send their applications through email or internet. Alternatively, job seekers
place their CVs in the world wide web/internet, which can be drawn by the prospective employers
depending upon their requirements.
Advertising
A classic employment recruitment technique is the "help wanted" advertisement in your local newspaper.
While you can still utilize this form of recruitment, an online ad can be more cost-effective and reach a
broader audience. Ads placed on job websites or on your business website can draw potential employees
from a wider geographic area. For targeted recruitment, you can place ads on industry specific job boards.
Career Fairs
For entry-level jobs, career fairs can help you recruit recent graduates and individuals who want to change
careers. Some colleges and universities sponsor on-campus career fairs that can help you recruit well-
educated employees for your business. Job fairs also provide an easy way to collect resumes to help fill
future vacancies.
Database
Maintain a database or filing system for potential employees based on resumes collected at career fairs,
from your website or from manual submissions. When looking to fill a vacancy, review your file of resumes
for potential applicants and send queries to possible candidates. This recruitment method can help fill
vacancies faster at a lower overall cost than starting a fresh recruiting effort.
Employment Agencies
If you are searching for employees with specific skills, you may want to work with a recruiting agency
that screens and potentially tests applicants based on the skills you require. While the initial cost of utilizing
an employment agency may be high, the long- term reward of a well-placed, highly capable employee can
be greater than the initial recruitment cost.
Internal Recruiting
Internal recruiting is an effective method of filling vacancies. Existing employees have an established
track record that can be matched to a current vacancy. Even if the employee needs some additional training
to fulfill all the position requirements, companies gain valuable employee relation benefits by hiring from
within. Promoted employees may demand lower compensation than those hired from external sources; in
addition, you decrease turnover by providing advancement opportunities.
Employee Referrals
Your existing employees can be a great source of providing recruitment referrals. They may know of a good
match for a vacancy that would not respond to more traditional recruitment methods. Many potential
employees are working for other companies and are not actively looking for employment, but may be
enticed to change employment for the right opportunity. You should encourage employee referrals by
providing bonuses for all new hires employed based on a referral.
Selection Definition
The process of interviewing and evaluating candidates for a specific job and selecting an individual for
employment based on certain criteria. Employee selection can range from a very simple process to a very
complicated process depending on the firm hiring and the position. Certain employment laws such as anti-
discrimination laws must be obeyed during employee selection. Selection is the process of choosing
among the candidates from within the organization or from the outside, the most suitable person
for the current position for the future position Koontz.Objective of selection decision is to
choose the individual who can most successfully perform the job from the pool .
Selection Procedure is not a single act but is essentially a series o methods or stages by which
different types of information can be gathered through various selection techniques. At each step,
facts may come to light which are useful for comparison with the job requirement & Employment
specifications informations required to be collected are
Process of Selection
Methods of Selection
(a) Tests:
1. Aptitude Tests:
Mental or Intelligence test
Mechanical test
Psycho-motor test
2. Achievement Tests:
Job Analysis: Is the basis for selecting the Right candidate. Organisations to finalise, job analysis,
Job description, job specifications, & Employee specifications before proceeding to the next step
of selection
Human Resources Plan: Every company plans for the required number & kind of employees for
a future date. This is the basis for Recruitment function.
Recruitments: Process of searching for prospective employees and stimulating them to apply for
jobs in an organisation. It is the basis for the remaining techniques of the selection.
Development of Bases for selection: To select appropriate candidates from the Applicants pool,
towards this the organisation may borrow / Adopt Techniques/ Bases.
Application Form: A traditional method of securing information from the prospective candidates
also can be used for screening candidates at Preliminary level. Information to be covered in an
Application form is
(i) Aptitude, (ii) Reasoning (iii) Knowledge in various disciplines (iv) General
Knowledge, (v) English Knowledge.
Preliminary Interview:
Group Discussion: A method where groups of successful applicants are brought around a
conference table and are asked to discuss a case study or a subject matter.
A technique used to secure further information regarding the suitability of the candidate for
the job.
Candidates in the group are required to analyse, discuss and alternative solutions and select a
sound solution.
- Soliciting unrevealing information based on given information and using common sense.
- Speaking effectively
- Selection panel, based on the observation judges candidates skills and ranks them
according t heir merit.
- In some cases the selection panel may also ask the candidates to write the summary of
the group discussion in order to know the candidates writing ability as well.
Placement:
Meaning
Placement is the process of assigning a specific job to each of the selected candidates. It involves assigning
a specific rank and responsibility to an individual. It implies matching the requirements of a job with the
qualifications of the candidate.
Induction/Orientation
Induction
It is the process of receiving and welcoming an employee when he joins a company and giving him the
information about the company.An applicant after being hired, he/she must be inducted and placed a chosen
job.
Induction or orientation conveys 3 types of information
1. A review of the organizations history, founding fathers, objectives, products, services as
well as how the employees job contributes to the organisation needs.
Internal Mobility
Internal mobility (mobility or talent mobility) is a dynamic internal process for moving talent from role to
role at the leadership, professional and operational levels. To achieve internal mobility, companies must
adopt the principles of succession management at all ranks; provide transparent discussion of skills and
potential, as well as organizational needs; and, focus on development across critical talent pools, based on
business needs.
Transfers
A transfer involves a change in the job, place of the job of an employee without a change in responsibilities
or salary. Transfer is a regular procedure in banks and other government establishments. E.g. once in 3
years, a bank employee is transferred. Transfer is different from promotion. Transfers do not accompany
with salary like or responsibility change. Transfers are frequent but promotions are not frequent.
Transfers should be carried out in the interest of the organisation (to achieve organizational
objectives)
Types of transfers
1) Production transfers:
A shortage or surplus of the labour force is common in different departments in a plant or several
plants in organisation. The surplus labour is shifted to the labour shortage department. E.g. new
projects, new products, new models.
2) Replacement transfers:
In this type, a junior employee may be replaced by a senior employee to avoid laying off the
senior employee.
3) Versatility transfers:
They are carried out to make employees versatile & competent in more than one skill. E.g. Bank
employees are transferred from one section to another over a period of time so that they may
acquire the necessary skills to attend to the various activities of the bank.
Versatile operations are useful at the time of rush hours E.g. from credit card section to Loan
Section.
4) Shift transfers:
Industrial establishments operate for more than one shift. Transfers between shifts are common,
on a rotation basis. Transfers are also carried out according to an employees request. E.g. From
day shift to night shift & vice versa.
5) Remedial transfers:
Remedial transfers are also called personal transfers as they are requested by the employees.
E.g. the initial placement of an employee May be faulty or the worker may not along with his
/her superior or with coworkers. The health problem/accident, stagnancy demands a transfer.
Promotion
It is an improvement in pay, prestige, position and responsibilities of an employee within his/her
organisation. Promotion increases the responsibility and salary, apart from better working hours, better
location & pleasant working conditions. A promotion is the ultimate achievement for some employee and
hence they achieve it through hard work & good performance. But some employees follow short cut path
to achieve the desired goal. Some employees refuse to be promoted as, they loose their overtime incentives,
and they also refuse because of added responsibilities.
Objectives of promotion
To maintain employees for higher productivity.
1. To attract and retain the services of qualified and competent people.
Module 4
Training and development
Training v/s development
Training
Training refers to the Imparting of specific skills, abilities and knowledge to an employee,
Training is transfer of knowledge from a trainer to a trainee. Training is an attempt to improve
current or future employee performance by increasing an employees ability to perform through
learning, by changing the employees attitude or increasing his skills and knowledge. Training is
acquiring new skills through classroom learning. It has a short term and narrow focus of skills
acquisition. Training is led by an instructor. Training is a learning process which seeks relatively
a permanent change in behaviour that occurs as a result of experience. Training is a learning
process which seeks relatively a permanent change in behaviour that occurs as a result of
experience. Training is the art of increasing the knowledge and skills of an employee for doing a
particular job.
Significance
The table below shows three major components of a systematic approach to training.
Assessment: Determining the training needs and identifying the objectives
Implementation: Selecting training methods and conducting the training
Evaluation: Comparing the training outcomes against criteria
The model below traces the steps necessary in the training process:
Organizational Objectives
Needs Assessment
Is There a Gap?
Training Objectives
Select the Trainees
Select the Training Methods and Mode
Choose a Means of Evaluating
Administer Training
Evaluate the Training
Needs analysis,Training needs can be assessed by analyzing three major human resource areas:
the organization as a whole, the job characteristics and the needs of the individuals. This analysis
will provide answers to the following questions:
Begin by assessing the current status of the company how it does what it does best and the abilities
of employees to do these tasks. This analysis will provide some benchmarks against which the
effectiveness of a training program can be evaluated. Firm should know where it wants to be in
five years from its long-range strategic plan.
Second, consider whether the organization is financially committed to supporting the training
efforts. If not, any attempt to develop a solid training program will fail.
Also, in today's market-driven economy, would be remiss not to ask customers what they like
about business and what areas they think should be improved. In summary, the analysis should
focus on the total organization and should tell (1) where training is needed and (2) where it will
work within the organization.
Once have determined where training is needed, concentrate on the content of the program.
Analyze the characteristics of the job based on its description, the written narrative of what
the employee actually does. Training based on job descriptions should go into detail about how
the job is performed on a task-by-task basis. Actually doing the job will enable to get a better feel
for what is done.
Individual employees can be evaluated by comparing their current skill levels or performance to
the organization's performance standards or anticipated needs. Any discrepancies between actual
and anticipated skill levels identifies a training needed
Training design
The first step in the design of training involves an assessment of training needs. The assessment
comprises -
The second step involves defining the training programs learning objectives. The learning
objectives, which are derived from the needs assessment, specify the observable, measurable
actions that each learner will be able to demonstrate as a result of participating in the training
activities.
The third step is the creation and implementation of a training program to improve performance,
taking into account the experience and educational levels of the personnel and the time and
resources available for training.
Options range from short courses to long-term placements in academic institutions in the country,
in the region, or overseas, and nonclassroom-based interventions, such as on-the-job training,
coaching, and mentoring.
All options must be weighed against the immediate operational needs of the program or institution,
because facilities may not have enough personnel to operate when staff members go for training.
Training implementation
Implementation
Pilot Test & revision. Most revisions are refinements of execution points and time frames Train
thetrainer & revision. Adjustments made are very minor at this stage, usually limited to delivery
execution details or typographical edits.
Regional / Divisional / Areabased deployment. For smaller organizations this is a single step, an
d coordination requirements are low.
Training evaluation
The specification of values forms a basis for evaluation. The basis of evaluation and the mode of
collection of information necessary for evaluation should be determined at the planning stage. The
process of training evaluation has been defined as "any attempt to obtain information on the effects
of training performance and to assess the value of training in the light of that information."
Evaluation leads to controlling and correcting the training programme. Hamblin suggested live
levels at which evaluation of t rai ni ng can take place, viz. reactions, learning, job behaviour,
organisation and ultimate value .
(i) Reactions: Training programme is evaluated on the basis of the trainee's reactions to the
usefulness of coverage of the matter, depth of the course content, method of presentation, teaching
methods etc.
(ii) Learning: Training programme, trainer's ability and trainee ability are evaluated on the basis
of quantity of content learned and time in which it is learned and the learner's ability to use or
apply the content he learned.
(iii) Job Behaviour: This evaluation includes the manner and extent to which the trainee has
applied his "naming to his job.
(iv) Organisation: This evaluation measures the use of training, learning and change in the job
behaviour of the department/organisation in the form of increased productivity, quality, morale,
sales turnover and the like.
(v) Ultimate Value: It is the measurement of the ultimate result of the contributions of the training
programme to the Company goals like survival, growth, profitability etc. and to the individual
goals like development of personality and social goals like maximising social benefit.
The various methods of training evaluation are:
o Immediate assessment of trainees' reaction to the programme.
o Trainees' observation during the training programme.
o Knowing trainees' expectations before the training programme and collecting
their views regarding the attainment of the expectations after training.
o Seeking opinion of the trainee's superior regarding his/her job performance and
behaviour before and after training.
o Evaluation of trainee's skill level before and after the training programme
o Measurement of improvement in trainees on the job behaviour.
o Examination of the testing system before and after sometime of the training
programme.
o Measurement of trainee's attitudes after the training programme.
o Cost-benefit analysis of the training programme.
o Seeking opinion of trainee's colleagues regarding his/her job performance and
behaviour.
o Measurement of levels in absenteeism, turnover, wastage/scrap, accidents,
breakage of the machinery during pre and post period of the training programme.
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(i) Job Rotation: This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his supervisor or trainer
in each of the different job assignments. Though this method of training is common in training
managers for general management positions,Trainees can also be rotated from job to job in
workshop jobs. This method gives an opportunity to the trainee to understand the problems of
employees on other jobs and respect them.
(ii) Coaching: The trainee is placed under a particular supervisor who functions as a coach in
training the individual. The supervisor provides feedback to the trainee on his performance and
offers him some suggestions for improvement. Often the trainee shares some of the duties and
responsibilities of the coach and relieves him of his burden. A limitation of this method of training
is that the trainee may not have the freedom or opportunity to express his own ideas.
(iii) Job Instruction: This method is also known as training through step by step. Under this
method, the trainer explains to the trainee the way of doing the jobs, 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.
(iv) Committee Assignments: Under the committee assignment, a group of trainees are given and
asked to solve an actual organisational problem. The trainees solve the problem jointly. It develops
team work. (See Box 9.6 for examples on training).
Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance. Since the
trainee is not distracted by job requirements, he can place his entire concentration on learning the
job rather than spending his time in performing it. There is an opportunity for freedom of
expression for the trainees. Companies have started using multimedia technology and information
technology in training (See Box 9.7 and Box 9.8) Off-the-job training methods are as follows:
(i) Vestibule Training: In this method, actual work conditions are simulated in a class room.
Material, files and equipment which 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. Theory can be related to practice in this
method.
(ii) Role Playing: It is defined as a method of human interaction that involves realistic behaviour in
imaginary situations. This method of training involves action, doing and practice. The participants
play the role of certain characters such as the production manager, mechanical engineer, superinten-
dents, maintenance engineers, quality control inspectors, foremen, workers and the like. This method
is mostly used for developing inter-personal interactions and relations.
(iii) Lecture Method: The lecture is a traditional and direct method of instruction. The instructor
organises this material and gives it to a group of trainees in the form of a talk. To be effective, the
lecture must motivate and create interest among the trainees. An advantage of the lecture method is
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Human Resource Management 14MBA21
that it is direct and can be used for a large group of trainees. Thus, costs and time involved are
reduced. The major limitation of the lecture method is that it does not provide for transfer of training
effectively.
(iv) Conference or Discussion: It is a method in training the clerical, professional and supervisory
personnel. This method involves a group of people who pose ideas, examine and share facts, ideas
and data, test assumptions and draw conclusions, all of which contribute to the improvement of job
performance. Discussion has the distinct advantage over the lecture method, in that the discussion
involves two-way communication and hence feedback is provided. The participants feel free to speak
in small groups. The success of this method depends on the leadership qualities of the person who
leads the group.
(v) Programmed Instruction: In recent years, this method has become popular. The subject-matter
to be learned is presented in a series of carefully planned sequential units. These units are arranged
from simple to more complex levels of instruction. The trainee goes through these units by answering
questions or filling the blanks. This method is expensive and time consuming.
Executive Development
Executive development is the whole of activities aimed at developing the skills and competencies of those
that (will) have executive positions in Organizations. While "executive" and "manager" and "leader" are
often used interchangeably, "executive" is commonly used to signify the top 5% to 10% of the organization.
Similarly, "development" and "training" and "education" are often used as synonyms, however
"development" is generally seen as the most encompassing of the three in terms of activities that build skills
and competencies. While it is typical to find organizations that have dedicated corporate training &
development people and processes, it is not always the case that an organization will have a dedicated
executive development set of activities. In some organizations (typically large multi-nationals), there is a
separate executive development team, in other organizations executive development is handled as one of
many activities by the larger corporate training group, and in yet other scenarios there is no executive
development activity to speak of. In contrast to other corporate training & development activities, which
have as their core purpose to build tactical skills for employees, executive development plays a different
role for the organization. Indeed some executive development is conducted for the purpose of building
tactical skills (sometimes referred to as "hard skills" such as business fundamentals- finance, marketing,
operations and also "soft skills" such as communication and team building), yet executive development is
also used to evaluate future potential future executives as well as a mechanism for the CEO and the
executive team to cascade their strategies, goals, and even elements of the culture to the rest of the
management team and ultimately the organization. In the best of cases, executive development not only
helps an organization execute its key strategies, it can also help provide input to the strategy creation
process. In this way, executive development is much more strategic than typical corporate training &
development which is used for most employees of an organization.
Methods and Development of Management Development
Management development is the process by which managers learn and improve their management skills In
Organisational development (OD), management effectiveness is recognized as a determinant of
Organisational success. Therefore investment in management development can have a direct benefit to the
organisation. In 2004, the money spent per year per manager on management and leadership development
was 1,035, an average of 6.3 days per manager. Most management development does not involve outside
classes. Management development is the overall concept that describes the many ways that organizations
help employees develop their personal and organizational skills, either as managers in a management job
or with an eventual management job in mind. Building the skills of managers through management
development options is critical to the effective functioning of your organization. This is because of the
power of a manager to impact the organization through his or her oversight of the work of other employees.
In fact, the managers in your workplace are the single most important factor in employee engagement,
employee motivation, and building a productive workplace. Managers are the key to employee retention
and the main reason employees leave their current employer. So, the need for management development is
significant and can provide a significant payback.
Outbound Management Development Programs
These programmes generally revolve around activities designed to improve leadership, communication
skills, planning change management, delegation, teamwork, and motivation. Participants are divided into
teams and assigned tasks or activities for completion in a specified time. Achievement and performance
during these activities is reviewed in group discussions to identify behaviours that enhance performance or
lead to failure or decreased performance. Strategies are formulated to deal with factors that hinder, and
these strategies are then put to use in the activities that follow, to test their effectiveness.
Career and Succession Planning
A career is a sequence of positions held by a person during the course of a lifetime. It comprises of a series
of work related activities that provide continuity, order and meaning to a persons life.
Traditional Career
Sequence of positions held within an occupation
Context of mobility is within an organization
Characteristic of the employee
Succession planning ensures that businesses continue to run smoothly after the businesss most important
people move on to new opportunities, retire or pass away.
Career development is important for companies to create and sustain a continuous learning
environment. A study conducted by PWC of companies in finance, online services, hospitality,
real estate and high-tech industries suggests that companies that are successful at managing the
employee growth that accompanies business expansion and increased demand for their products
and services focus on recruitment, career development, culture orientation and communications.
These companies emphasize that employees are responsible for career management.
Employees, managers, human resource managers, and the company share the responsibility for
career planning.
Roles in Career Management:
EMPLOYEE MANAGER COMPANY HR MANAGER
Self-Assessment Coaching Develop systems to Information and
Seek Challenge
a) Employees Role:
The employees must approach their manager to initiate career-related discussion as part of the
personal development planning process. Regardless of how sophisticated the companys career
planning system is, employees should engage in career management actions.
Take the initiative to ask for feedback from managers and peers regarding their skill strengths and
weakness.
Identify their stage of career development and development needs.
Seek challenges by gaining exposure to a range of learning opportunities (sales assignments,
product design assignments, administrative assignments).
Interact with employees from different work groups inside and outside the company (professional
associations, task forces).
Create visibility through good performance.
b) Managers Role:
Regardless of the type of Career management system in the company, managers should play a key
role in career management process. Because managers are the primary source of information about
position openings, training courses and other developmental opportunities. To help employees deal
with career issues, managers need to be effective in four roles: Coach, appraiser, advisor and
referral agent.
Coach-Probe problems, interests, values, listen to the needs, define and clarify concerns.
Appraiser-Clarify company standards and job responsibilities and company needs and give timely
feedback.
Advisor-Generate options, experiences and relationships, assist in goal setting and provide
recommendations.
Referral Agent-Link to career management resources and follow up on career management plan.
c) Human Resource Managers Role:
HR managers should provide information or advice about training and development opportunities.
Also, HR managers should provide specialized services such as testing to determine employees
values, interests and skills, prepare employees for job searches and offer counseling and career-
related problems.
d) Companys Role:
Companies are responsible for providing employees with the resources needed to be successful in
career planning. These resources include specific programs as well as processes for career
management:
Career workshops (seminars on how career management system works, self-assessment, goal
setting and helping managers understand and perform their roles in career management.
Infromation on career and job opportunities
Career planning workbooks (printed guides that direct employees through a series of exercises,
discussions and guidelines relating to career planning).
Career counseling (advice from a professionally trained counselor who specializes in working with
employees seeking assistance with career issues).
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Career paths (planning job sequences and identifying skills needed for advancement within and
across job families, such as moving from technical jobs to management jobs).
The company also needs to monitor the career planning system to (ensure that managers and
employees are using the system as intended and evaluate whether the system is helping the
company meet its objectives.
Module 5
Performance Appraisal and compensation
Concept of Performance Appraisal
Performance appraisal may be understood as the assessment of an individuals performance in a systematic
way. The performance being measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, cooperation, Judgment, versatility, health
etc.t is the systematic evaluation of the individual with respect to his/her performance on the job and his/her
potential for development. A system that involves employee evaluations once a year with an ongoing effort
to provide feedback and coaching so that performance can be improved is performance management
system.(PMS).PA-Performance appraisal is the systematic description of an employees strengths and
weaknesses. Thus performance appraisal is a part of Performance management system. Assessment is
generally not confined to past performance alone .Potentials of the employee for future performance must
also be assessed. Therefore a more comprehensive definition is Performance Appraisal is a formal,
structured system of measuring and evaluating job related behaviour and outcomes to discover how and
why the employee is presently performing on the job and how the employee can perform more affectively
in the future so that the employee, organization and society all benefits This definition states behaviour is
also a part of the assessment .Behaviour can be active or passive do something or do nothing. Either way
behaviour affects job results, employee assessment is as old as the concept of management.
The process of performance appraisal helps the employee and management to know the level of
employees performance compared to the standard pre-determined level useful to decide upon
employee promotion/ transfer salary etc. Performance appraisal indicates the level of desired
performance level, level of actual performance and the Gap between these two. This Gap should
be bridged through Human Resource techniques like, Training, executive development etc.
Method of evaluating Behaviour of Employees in the work spot including both the quantitative
and qualitative aspect of Job performance. Performance is measured in terms of results and not
efforts. Important features are.
It is the systematic description of an employees job relevant strength and weakness.
To find how well the employee is performing the job and establish a plan of improvement.
Appraisals are arranged periodically according to a definite plan
Performance evaluations not job Evaluation. It refers to how well someone is doing the assigned
job. Job evaluation determines how much a job is worth to the organization and therefore what
range of pay should be assigned to the job.
Training
Promotion
Manpower Planning
Plan Lay off, Retrenchment etc
Traditional method
cooperation and etc... Each scale ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion; then computes the employees total numerical score. The
number of points may be linked to salary increases, whereby total points = corresponding
percentage of increase in salary.
Rating Scale:
Instructions: - for the following performance factors, please indicate on rating scale, your
evaluation of the employee.
Employee name: ____________ Dept: _________
Raters name: _______________ Date: _________
Excellent Good Acceptance Fair Poor
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Quality of work
Total
Grand total
Advantages: adaptability, easy to use, low cost, nearly every type of job can be evaluated with this rating
scale, if the job performance is changed. A large number of employees can be evaluated in short time; the
rater do not require training to use this scale.
Disadvantage: Biases influence valuation.
Check lists:
Here a check list of statements on the traits of the employee and his/her job is prepared in two columns i.e.
yes and no column. The rates (immediate superior) ticks the yes column if the answer to the statement
is positive and in column no. if the answer is negative. Assessment is done in the HR department. Certain
points are given to yes & no column to become a weighed check list depending on the points. Increases
in salary are determined thereafter.
PARAMETERS YES NO
Is the employee really interested in the job
Does he/she possess adequate knowledge about the job?
Is his/her attendance satisfactory?
Does he/she maintain his/her equipment in good
Condition?
Does she/he cooperate with coworkers?
Does he/she keep his/her temper?
Does he/she obey orders?
Does he/she observe safety preparations?
Does he/she complete the work?
Does he/she evade responsibility?
after assigning marks to the performance of each employee, Distributor in a pattern to confirm to
normal frequency Distribution. The limitation is that, in a group if all are outstanding, it is difficult
to place people at lower category. Usha, JCT, SPL follow this method.
No
Of
Employee
40% 20%
Average Below 10%
10%20% Average
Excel Good On
Ent satisfactory
Scores
Checklist Method.
(i) Simple Checklist (ii) Weighted checklist (iii) Forced choice Method
Rater checks on a statement of Performance Ratings on Large number of statements in
behavior of an employee as various Behaviour of Groups are prepared. Each group
positive / negative. Employee employee is given a weight consists of four descriptive
performance is rated on age. Weighted performance statements concerning employee
number of positive choice score is compared with the behavior. Two Statements
Statement meaning may vary overall assessment standards to favourable Two Statements,
Rater to Rater find out the overall Unvavourable. Appraiser to select
performance of an employee. one statement that mostly
Demerit: The consuming rater deserves employees behavior.
may not fully know items Demerit: Objective evaluation not
contributing to the successful possible Rater may not fully
performance. understand equally desirable/ un
desirable
Critical incident method: A continuous rating method, instead of once in 6 months or 1 year
Annual Rating.
Supervisor records employee performance on critical incidents both positive and negative
characters on specially designed note book. Rating done based on notebook data. Reduces Bias in
evaluation short coming. Critical incidents not defined for comparison All capital (ITC,
VOLTAS, VST follow this) incident may not be knowing to supervisor.
Essay or Free form of appraisal: Manager is required to write a short essay describing each
employees performance during the rating period. This format emphasizes Evaluation of overall
performance. Based on strength and weakness of employee rather than specific job dimension.
Supervisory BIAS and HOLO effect required by asking supervisor to enumerate specific examples
of employee behavior.
Demerit.
- Difficult to take decisions based on essays- No standard
- to compare- Evaluators may vary in their skills of essay
- Writing & the employee actual performance will depend
- On the writing skills of the appraiser.
-
BPL, BIRLA, 3M, Wheels India & BATA follow this method.
The Group rating against standard performance discussed with the concerned widely used by
Kinetic Honda, Birla, VXL, Bluestar used essentially for promotion, Demotion and Retrenchment.
Modern methods
Behaviourly Anchored Rating Scales: BARS
Combines Elements of Traditional Rating Scales and Critical Incident Methods
Using BARS: Job Behaviour from Critical Incidents Effective Ineffective Behaviours are
described more objectively.
Method: Individuals who are familiar with a particular job to identify its major components and
then rank and validate specific behavior for each of the components, then they rank and validate
specific behaviours for each of the components emphasis on pooling the thought process of people
who will use the scales both as Evaluators and Evaluees.
Step: I. Collect Critical Incidents: Supervisors job Holders Describe Effective In effective,
Indifference Behaviour Related to Job performance.
Step II. Identify performance Dimension: Convert Critical incidents into Key performance
dimension, Generally About 5 to 10 Dim for a job.
Step III. Reclassification of Incidents: Another Group to reclassify the Critical Incidents
Generated > 75% agreed ones selected.
Step IV. Assigning Scale value to the Incidents: 1 to 9 scale
1- Ineffective performance- Higher value- Effective performance.
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Human Resource Management 14MBA21
Step V. Producing the Final Instrument; About Six/Seven incidents for each performance
dimension. Scale to its mean value.
Human Resource Accounting: Deals with Cost and Contribution of human resources to the
organization. Employee contribution can be taken as positive when contribution is more than the
cost and cost of employee includes Cost of manpower, planning, recruitment, selection, Induction,
Placement, Training, Development, etc. Bank of Baroda, SAIL, ITC Ltd, Made attempts to follow
this method.
Management by Objectives: MBO focuses attention on particularly set goals that are tangible,
verifiable and measurable.
Compensation
Objectives of Compensation Planning
Compensation is what employees receive in exchange for their contribution to the organisation.
Compensation is a comprehensive payment including pay, incentives and benefits offered by employers for
hiring the services of employees. Remuneration is the compensation an employee receives in return for
his/her contribution to the organisation. Remuneration occupies an important place in the life of an
employee.
His/her standard of living, status in the society, motivation, loyalty & productivity depend upon the
remuneration he/she receives.
For employer too, employee remuneration is significant because of its contribution to the cost of
production.
Many battles (in the form of strikes & lockouts) are fought between the employer and the
employees, on issues relating to wages or bonus.
For HRM too, employee remuneration is a major function since HR specialists has a difficult task
of fixing wages & wages differentials acceptable to employees and their leaders.
Compensation has been an extremely important issue for both, the employer and employee. This is because
money is a crucial incentive and directly or indirectly related with fulfillment of all human needs.
Employees sell their hands and brain in order to fulfill their primary needs and employers hire them to
achieve their organizational objectives. Therefore the employers and employees perspectives vary on
matters concerning compensation. Another perspective from employers point of view is to assess its impact
on wide range of employees attitude, behaviors and ultimately its effectiveness on organizations success.
Compensation directly influences key outcomes like job satisfaction, attraction, retention, performance,
skill acquisition, cooperation and flexibility etc. While employers objective is concerned with primarily
productivity, the employees emphasis may be on higher compensation to offset their increased cost of
living and perhaps the price his skill will fetch in the competitive job market.
Compensation therefore remains one of the most strategic and important functions of human resource
management. Over the years, compensation has become a complicated issue. Not only are the problems of
internal equity and external parity important, but also the larger issues of the wider economy and society
impinge on the problem of compensation.
Components of compensation
Compensation consists of mainly 2 types monetary benefits & non-monetary benefits
Monetary benefits:
e.g. skilled Labour. But in our country there are plenty of workers e.g. unskilled Labour and they are
underpaid, to avoid this exploitation, minimum wages act of 1948 is established. In contrast, there is a
shortage of technicians, computer specialists and professional managers. High remuneration packages are
necessary to retain these skilled employees. Current trends in salary, Productivity also influences wage
fixation. A number of factors influence the wage fixation. They are categorized into external and internal
factors.
Wage and Salary Administration
The term Wage & salary administration or compensation administration denotes the process of
managing a companys compensation programme. The goals of compensation administration are to design
a cost effective pay structure that will attract, motivate and retain competent employees. Employee
compensation may be classified into two types-base compensation and supplementary compensation. Base
compensation refers to monetary payments to employees in the form of wages and salaries. The term wages
implies remuneration to workers doing manual work. The term salary is usually defined to mean
compensation to office, managerial, technical and professional staff.
Estate planning
Employee stock options(ESOP)
Personal liability insurance
Spouse travel
Chauffeur service
Reserved parking
Executive dining room
Home security system
Car /phone
Financial seminars/Coupons
Loans at low or no interest
Legal counseling
Module 6
Employee Welfare
Introduction
Employee or labour welfare is a comprehensive term including various services, benefits and facilities
offered to employees by the employer. Through such generous fringe benefits the employer makes life
worth living for employees. The welfare amenities are extended in addition to normal wages and other
economic rewards available to employees as per the legal provisions.
According to Dr.Parandikar labour welfare work is work for improving the health, safety and general
wellbeing and the industrial efficiency of the workers beyond the minimum standard laid down by labour
legislation
Welfare measures may also be provided by the government, trade unions and non-government agencies in
addition to the employer. The basic purpose of labour welfare is to enrich the life of employees and keep
them happy and contented. Welfare measures may be both statutory and voluntary. Labour laws require the
employer to extend certain benefits to employees in addition to wages. Voluntary benefits are the result of
employers generosity, enlightenment and philanthropic feelings.
Types of Welfare Facilities and Statutory Provisions.
Welfare services may broadly be classified into two categories
1. Intramural activities which are provided within establishment such as latrines and urinals, crches, rest
centers, canteens, uniforms, library. Medical aid, subsidized food, shift allowance etc.
2. Extramural activities which are undertaken outside the establishment such as family planning, child
welfare, cooperative stores, credit societies, vocational guidance, holiday homes, leave travel facilities,
transport to and from the place or work .etc.
Statutory Provisions.
Employers are required to offer welfare facilities to workers under different labour laws.
The Factories Act, 1948
The Act provides the following services to workers:
Washing facilities to male and female workers separately
Facilities for storing and drying clothes
Facilities for occasional rest for workers who work in a standing position for long hours.
First aid boxes or cupboards- one for every 150 workers and the ambulance facility if there are
more than 500 workers
Canteens, where there are more than 250 workers
Shelters rest rooms and lunch rooms where over 150 workers are employed
Employee Grievances
A grievance is a sign of employees discontent with job and its nature. Grievance is caused due to the
difference between the employee expectation and management practice
Causes of Grievance
Wages, Incentives
Job Classifications
Foreman/Supervisor
Disciplinary Measures
Promotions
Transfer/Night Shift
Safety And Health Measures
Non Availability Of Materials
Violation Of Contracts
Improper Job Assignment
Work Conditions
Employee Grievance procedure
been keen on protecting the interests of workers in the organized sector. In certain cases, they are playing
a dual role. It is unfortunate that the public sector, which should set up an example for the private sector,
has not been implementing labor laws properly.
Grievances Management in Indian Industry.
Guidelines for Handling Grievances
The following guidelines may help a supervisor while dealing with grievances. He need not follow all
these steps in every case. It is sufficient to keep these views in mind while handling grievances.
Treat each case as important and get the grievance in writing.
Talk to the employee directly. Encourage him to speak the truth. Give him a patient hearing.
Discuss in a private place. Ensure confidentiality, if necessary.
Handle each case within a time frame.
Examine company provisions in each case. Identify violations, if any. Do not hold back the remedy
if the company is wrong. Inform your superior about all grievances.
Get all relevant facts about the grievance. Examine the personal record of the aggrieved worker.
See whether any witnesses are available. Visit the work area. The idea is to find where things have
gone wrong and who is at fault.
Gather information from the union representative, what he has to say, what he wants, etc. Give
short replies, uncovering the truth as well as provisions. Treat him properly.
Control your emotions, your remarks and behavior.
Maintain proper records and follow up the action taken in each case.
Discipline
Meaning
Discipline refers to a condition or attitude among employees with respect to rules and
regulations of an organisation
Discipline refers to the orderliness in working and behavior
Objectives of Discipline
To obtain a willing acceptance of the rules, regulations
To impart an element of certainty
To develop the spirit of tolerance and adjustments
To give and seek direction and responsibility
To create an atmosphere of respect
To increase the working efficiency and morale of the employees
Approaches to discipline
1. Positive Approach
2. Progressive discipline
3. Red Hot stove Rule
4. Judicial Approach to Discipline in
India.
A Positive Approach to Employee Discipline
Traditionally, methods for maintaining discipline have been punitive in nature. The relatively new concept
of a non-punitive positive discipline system is winning increasing acceptance among many employers. The
purpose of this method is to enable employees to truly confront their performance or attendance problems
and take responsibility for their actions.
To be effective, disciplinary action should emphasize correcting the problem rather than punishing the
offender. It should maintain the employee's dignity and self-respect. It should provide for increasingly
serious steps if the problem is not resolved, and it should ultimately result in a change in the employee's
behavior and performance.
Like traditional approaches, the positive discipline approach involves a number of formal steps that increase
in seriousness. But unlike punitive disciplinary systems, the positive approach emphasizes reminders of
expected performance not warnings or reprimands for misconduct.
Step 1: Oral Reminder The first step in the positive discipline approach is a meeting between a supervisor
and the employee to discuss the problem. The supervisor tells the employee the reason for the rule that has
been violated, tells the employee the specific changes that are required, and expresses confidence that the
employee will correct the problem and the expectation that no further action will be needed. No record of
the meeting is placed in the employee's file. This is communicated to the employee, hopefully providing a
strong incentive for improvement.
Step 2: Written Reminder If the problem continues, the supervisor again talks to the employee
seriously, but without threats. The supervisor tells the employee what is expected and asks the employee to
confirm that he or she understands what changes must be made. At the end of the discussion, the supervisor
tells the employee that a written summary of their conversation will be placed in the employee's file. It's
recommended that the employee be asked to sign the report of the documented discussion.
Step 3: Decision-Making Leave In traditional discipline systems, the next step involves suspending the
offending employee for several days. In the positive discipline approach, the supervisor tells the employee
to remain at home the following day and to use that time to make a final decision as to whether she or he
can meet the organization's standards. The employee is told that the organization wants to keep him or her
as a productive member of the work force, but that the decision is up to the employee and future
violations will result in termination. The employee is told to report back to the supervisor after the decision-
making leave day to let the supervisor know his or her decision. The employee may be asked to develop a
plan for improving his or her performance. Upon returning to work, the results of the meeting with the
supervisor should be documented, signed by the employee, and placed in the employee's personnel file.
3. The discipline was consistent. Every time you touch the hot stove you get burned. Consistency in the
administration of disciplinary action is essential. Excessive leniency as well as too much harshness creates
not only dissatisfaction but also resentment.
4. The discipline was impersonal. Whoever touches the hot stove gets burned, no matter who he is.
Furthermore, he gets burned not because of who he is, but because he touched the hot stove. The discipline
is directed against the act, not against the person. After disciplinary action has been applied, the supervisor
should take the normal attitude toward the employee.
Judicial Approach to Discipline in India
The Industrial Employment (Standing Orders) act was passed in 1946 with a view to improve the industrial
relations climate. The Act requires that all establishments must define the service rules and prepare standing
orders. The term standing orders refers to the rules and regulations which govern the conditions of
employment or workers. They indicate the duties and responsibilities on the part of both the employer and
the employees. The standing order contain rules relating to:
Classification of employees ,working hours, holidays, shift working, attendance ,leave, suspension,
termination, stoppage of work etc..
Thus standing order specify the terms and conditions which regulate the employee-employer relationship
within a unit. Any violation of these terms and conditions may lead to misconduct or indiscipline.
Essential of a good disciplinary system
To avoid conflict and lawsuits, managers must administer discipline properly.
1. Rules and Performance criteria
2. Documentation of the facts
3. Consistent response to rule violations
4. Training of supervisors
5. Prompt action
6. Impersonal discipline
7. Reasonable penalty
Follow-up
Principles of a Natural Justice
The employee must be indicated about the charge against him
The employee must be given a chance for defense
The enquiry must be fair and impartial
The evidence should be put forward in front of the employee
Punishment should be appropriate with the misconduct
Module 7
Industrial Relations
Overview of industrial relations and industrial conflict.
It is the relationship between employees and management in the day-to-day working of an Industry
.Industrial relations is a set of functional interdependence involving historical, economic, social,
psychological, demographic, technological, occupational, political and legal variables.
Industrial Relations means the relationship between employees and the Management in the day
to day working of the Industry.
Whole field of relationship that exists because of the necessary collaborations of men and
women in the employment process of an Industry Dale Yoder.
Whole field = Set of functions inter dependence involving, historical, economic, social, physical,
demographic, Technological, occupational political and Legal Variables
Industrial Relations deal with either the Relationship between the State and the Employers and
worker organizations or the relation between occupational organization themselves
I.L.O (International labour Organisation)
Economic Factors
Economic organisation like capitalist, communist, mixed, democratic etc, the structure of
labor force, demand and supply of labor force
Eg: open policies to setup industries
Technological Factors
Mechanization, automation, rationalization, computerization, internet
Social And Cultural Factors
Population, religion customs and traditions of people, various cultures and religions, joint
family, women in labor etc
Political Factors
Political parties and their ideologies, their growth, mode of policies, involvement in trade unions etc
Eg: economic reforms, MNCs
Institutional Factors
Governmental policies, labor legislations, collective agreement employees court, employers federations,
attitude of workers, system of power status etc
Industrial disputes
Industrial disputes mean any dispute or difference between employers and employees and workmen or
between workmen and workmen which is connected with the terms of employment or with the working
conditions
Causes of industrial conflicts
Industry related factors
Employment, work, wages, hours of work,privileges,rights and obligations of employees
and employers
Dismissal or non-employment of any person
Registered agreement, settlement or award
Demarcation of the functions of an employee
Management related factors
Managements non -cooperation wrt disputes
Unwillingness to recognise a trade union
Less delegation of authority to officials for negotiation
Managements rigidity wrt employment, promotion, transfer
Change in working methods, closure of the department, termination of employees etc.
Government related factors
Change in the economic policies
Old labor laws
Improper and inadequate implementation of labor laws
Lack of monitoring of the labor laws
Political unrest and little faith in government
Inefficient officers dealing with the disputes
Other factors
Influence of politics in the trade union, strikes ,gherao and bandhs
Political instability, strained centre-state relation
Corruption, decreased social values, morale and industrial unrest
Rivalry between unions
Industrial Disputes
Industrial Dispute in the form of a strike or a lock out is a double edged sword. It means stoppage of work,
causing production loss to the employer. The worker at the same time, is pushed to the wall as he loses his
earnings.
Preventive and settlement machinery
Adoption of well defined, progressive policies for IR
Adoption of fair recruitment, promotion and wage policies
Adoption of effective two way communication
Provision of just and humane working conditions
Adoption of suitable and speedy grievance procedure
Recognition of a representative union
Encouragement of joint consultation, collective bargaining
Settlement of Industrial Conflicts
Investigation
Mediation
Conciliation
Voluntary Arbitration/adjudication
Collective bargaining
Collective bargaining is a process of negotiations between the employers and group of employees aimed at
reaching agreements that regulate working conditions. The interests of the employees are commonly
presented by representatives of a Trade union to which the employees belong to.
Characteristics of Collective bargaining
Its a group action as opposed to individual action.
It is flexible & mobile and not fixed.
It is a two-party process.
It is a continuous process.
It is dynamic and not static
Importance of collective bargaining
It helps to increase economic strength of both parties.
It helps to establish uniform conditions of employment.
Secure a prompt and fair redresses of grievances.
Avoid strikes, & coercive activities.
Lay down fair rates of wages& norms.
Achieve an efficient operation of the plant.