Transport Management Unit-1

A transport Management system is a subset of supply chain management concerning

transportation operations and may be part of an enterprise resource planning system.

A transportation management system (TMS) is a subset of supply chain

management (SCM) that deals with the planning, execution and optimization of the
physical movements of goods. In simpler terms, it's a logistics platform that enables users
to manage and optimize the daily operations of their transportation fleets.

TMS is offered as a module within enterprise resource planning (ERP) and SCM suites
and helps organizations move inbound -- procurement and outbound -- shipment freight
using tools such as route planning and optimization, load building, operations execution,
freight audit and payment, yard management, order visibility, and carrier management.

The ultimate goals of using a TMS are to improve shipment efficiency, reduce costs, gain
real-time supply chain visibility and enhance customer service.

Typically, TMS serves both shippers and logistics service providers. Manufacturers,
distributors, e-commerce organizations, wholesalers, retailers and third-party
ogistics (3PL) companies are some of the major users of TMS software.

Benefits of TMS
A fully deployed transportation management system can benefit organizations in the
following ways:
Transportation order planning and execution:
TMS integrates well with enterprise order management, warehouse management and
purchasing systems, customer relationship management (CRM), supplier relationship
management (SRM), and other systems for managing transport demand. It enables users
to plan and manage both international and domestic shipments and determines the
cheapest and most efficient carrier and mode using better route planning, load
optimization, carrier mix and mode selection.

Supply chain visibility and better control of inventory management

TMS enables users to track and monitor the lifecycle of orders and shipments in real time
and get status updates on each. This offers users an accurate forecast for the inventory
and improves the visibility and accountability of the supply chain network.

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Reduce invoice errors:
By automating the freight payment and audit processes, users can reduce errors that may
arise from manual procedures.

Transport intelligence:
Most TMS software offers users extensive insights and reporting capabilities that
provide them with detailed visibility into freight data and metrics to help pinpoint any
discrepancies. With this data, users can make the necessary changes to improve service
delivery and reduce cost, and they can also create reports.

Personal Management
Personnel management is that field of management which has to do with planning,
organising, and controlling various operative activities of procuring, developing,
maintaining and utilizing a labour force in order that the objectives and interest for which
the company is established are attained as effectively and economically as possible and
the objectives and interest of all levels of personnel and community are served to the
highest degree. M. J. Jucius, Personnel Management

Personnel Management is that part of management process which is primarily concerned

with the human constituents of an organization. E.F.L. Brech (ed.) Principles and
Practice of Management.

Personnel management is that part of management function which is concerned with

people at work and with their relationships within an enterprise. Its aim is to bring
together and develop into an effective organisation the men and women who make up an
enterprise and, having regard to the well-being of an individual and of working groups, to
enable to make their best contribution to its success. The British Institute of Personnel
Management.
Functions of Personnel Management
Personnel Management involves Management functions and Operative functions.
1. Management function:
a. Planning
b. Organizing
c. Directing
d. Controlling

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2. Operative functions
a. Employment
b. Development
c. Compensation
d. Maintenance
e. Motivation
f. Personnel records
g. Industrial Relations
h. Separation

3. Advisory Function:
a. Advised to Top Management:
b. Advised to Departmental Heads:
Personal management is the planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance, and separation of
human resources to the end that individual, organizational and societal objectives are
accomplished
Management function
Planning
Effective managers realize that a substantial portion of their time should be devoted to
planning. For the personal manager, planning means the determination in advance of a
personnel program that will contribute to goals established for the enterprise. The process
of goal establishment will involve the active and enlightened participation of the personal
manager, with his or her expertise in the area of human recourses.
The planning function of a personnel manager pertains to the steps taken in determining
a course of action. This involves developing a personnel programme and specifying what
and how operative personnel functions are to be performed.
Organizing:
After a course of action has been determined, an organization must be established to
carry it out. An organization is a means to an end. Once it has been determined that
certain personnel functions contribute towards the firm’s objectives, the personnel
manager must form an organization by designing the structure of relationships among
jobs, personnel, and physical factors. One must be aware of the complex relationships
that exist between the specialized unit and the rest of the organization.
After plans have been developed, the personnel manager must establish an organisation
to carry them out. This function, therefore, calls for groupings of personnel activities,
assignment of different group of activities to different individuals, delegation of authority
to carry them out and provision for coordination of authority relationships horizontally
and vertically in the organisation structure.
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Directing:
After plan and an organization to execute that plan a starter function is necessary to
execute the plan. This function is labeled as direction. It may be called by other names
such as motivation, actuation, or command. A considerable number of difficulties are
involved in getting people to go to work willingly and effectively.

Directing involves guiding and supervising the personnel. Personnel manager must
inculcate in the workers a keen appreciation of the enterprise policies. He must guide
them towards improved performance and motivate them to work with zeal and
confidence.
Controlling:
The observation of action and its comparison with plans, and the corrections of any
deviation that may occur, or, at times, the realignment of plans and their adjustment to
unchangeable deviation.
Control is the managerial function concerned with regulating activities in accordance
with the personnel plan, which in turn was formulated on the basis of an analysis of
fundamental organization goal.
Control involves measuring performance, correcting negative deviations and assuring the
accomplishment of plans. Through direct observation, direct supervision, as well as
reports, records and audit, personnel management assures itself that its activities are
being carried out in accordance with the plans.
Operative functions
Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the
human resource or personnel department. These are concerned with employment,
development, compensation, integration and maintenance of personnel of the
organisation.
The operative functions of human resource or personnel department are discussed
below:
(a) Employment:
The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the objectives of
the organisation. This involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower
requirements both in terms of number and quality of the personnel. Recruitment and
selection cover the sources of supply of labour and the devices designed to select the
right type of people for various jobs. Induction and placement of personnel for their
better performance also come under the employment or procurement function.

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(b) Development
Training and development of personnel is a follow up of the employment function. It is a
duty of management to train each employee property to develop technical skills for the
job for which he has been employed and also to develop him for the higher jobs in the
organisation. Proper development of personnel is necessary to increase their skills in
doing their jobs and in satisfying their growth need.
For this purpose, the personnel departments will device appropriate training programs.
There are several on- the-job and off-the-job methods available for training purposes. A
good training program should include a mixture of both types of methods. It is important
to point out that personnel department arranges for training not only of new employees
but also of old employees to update their knowledge in the use of latest techniques.
(c)Compensation:
This function is concerned with the determination of adequate and equitable
remuneration of the employees in the organisation of their contribution to the
organisational goals. The personnel can be compensated both in terms of monetary as
well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their
basic needs, requirements of jobs, legal provisions regarding minimum wages, capacity
of the organisation to pay, wage level afforded by competitors etc. For fixing the wage
levels, the personnel department can make use of certain techniques like job evaluation
and performance appraisal.
(d) Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided with
good working, conditions so that they may like their work and workplace and maintain
their efficiency. Working conditions certainly influence the motivation and morale of the
employees.
These include measures taken for health, safety, and comfort of the workforce. The
personnel department also provides for various welfare services which relate to the
physical and social well-being of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education for children of employees,
recreational facilities, etc.
(e) Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the
cases, it is found that they do not contribute towards the organisational goals as much as
they can. This happens because employees are not adequately motivated. The human
resource manager helps the various departmental managers to design a system of
financial and non-financial rewards to motivate the employees.

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(f) Personnel Records:
The human resource or personnel department maintains the records of the employees
working in the enterprise. It keeps full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to the behaviour of
personnel like absenteeism and labour turnover and the personnel programs and policies
of the organisation.
(g) Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly
discharged by the human resource manager. The human resource manager can help in
collective bargaining, joint consultation and settlement of disputes, if the need arises.
This is because of the fact that he is in possession of full information relating to personnel
and has the working knowledge of various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour
welfare, safety, grievance, etc. He helps in laying down the grievance procedure to
redress the grievances of the employees. He also gives authentic information to the trade
union leaders and conveys their views on various labour problems to the top
management.
(h) Separation:
Since the first function of human resource management is to procure the employees, it is
logical that the last should be the separation and return of that person to society. Most
people do not die on the job. The organisation is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned person is
in as good shape as possible. The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.
Advisory Functions
Human resource manager has specialised education and training in managing human
resources. He is an expert in his area and so can give advise on matters relating to human
resources of the organisation.
He offers his advise to:
1. Advised to Top Management
Personnel manager advises the top management in formulation and evaluation of
personnel programs, policies and procedures. He also gives advice for achieving and
maintaining good human relations and high employee morale.
2. Advised to Departmental Heads
Personnel manager offers advice to the heads of various departments on matters such as
manpower planning, job analysis and design, recruitment and selection, placement,
training, performance appraisal, etc.

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 Objectives of Personnel Management

These are classified into two:

(а) General Objectives:
These reveal the basic philosophy of top management towards the labour force engaged
on the work and its deep underlying conviction as to the importance of the people in the
organisation. The following are the most important objectives.

(i) Maximum individual development:

The employer should always be careful in developing the personality of each individual.
Each individual differs in nature and therefore management should recognize their
individual ability and make use of such ability in an effective and make use of such
ability in an effective manner.
(ii) Desirable working relationship between employer and employees:
It is the main objective of personnel management to have a desirable working
relationship between employer and employees so that they may co-operate the
management.
(iii) Effective molding of human resources as contrasted with physical resources:
Man is the only active factor of production, which engages the other factors of production
to work.

(b) Specific objectives: Following are some of the important activities

(i) Selection of right type and number of persons required to the organisation.
(ii) Proper orientation and introduction of new employees to the organisation and their
jobs.
(iii) Suitable training facilities for better job performance and to prepare the man to
accept the challenge of higher job.
(iv) Provision of better working conditions and other facilities such as medical facilities.
(v) To give a good impression to the man who is leaving the organisation.
(vi) Maintaining good relations with the employees.

C. Enterprise Objectives:
The primary objective of personnel management is to help in achieving organizational
goals. There will be a need for co-operation from everyone in the organization for
achieving business goals. This requires that such persons should be employed who are
capable of taking up the jobs assigned to them.

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They should also be given proper training for undertaking the work effectively. This will
be ensured by a suitable policy of recruitment, training and placement. The satisfaction of
employees should be ensured to get their wholehearted co-operation. This may be done
by looking after their convenience at work and offering them financial and other
incentives. The enterprise objectives will only be achieved if everybody works for their
attainment. Employees should be motivated to contribute their maximum to the
organizational goals.

D. Personnel Objectives
Personnel management aims at the material and mental satisfaction to each employees in
the organization. This will be possible when employees are provided with proper work
environment and job satisfaction. The work place should be neat and clean and properly
ventilated. Job satisfaction will include good remuneration, job security, avenues for
promotion, financial and other incentives for improving performance.

E. Social Objectives:
Personnel management also aims at preserving and advancing general welfare of the
community. An enterprise owes a responsibility to the society at large. It can serve the
society by creating more employment opportunities, producing quality goods at cheap
rates. It can also help society by using productive resources in a best possible way and
minimizing their waste.

Objectives of Personnel Management:

According to Michael J. Jueius, personnel management should aim at:
(a) Attaining economically and effectively the organizational goals,
(b) Serving to the highest possible degree the individual goals, and
(c) Preserving and advancing the general welfare of the community.
Personnel Management has been assigned the task of not only helping the organization
and its employees but also the society at large.

Role of Personnel Manager

Role of Personnel Manager:

Role 1. Advisory Role:

The personnel department has functional relationship with other departments/managers in
the total organisation. As a specialist, the personnel manager advises the heads of
different functional departments on various aspects of human resource management e.g.,
manpower planning, recruitment, selection, training, appraisal, compensation etc.

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He represents management in many of the relationships that affect the organisation as a
whole. He is also responsible for conveying the problems, grievances or simply opinions
of workers to management.

The personnel manager should provide suggestions and assistance very tactfully, in order
to win the confidence and cooperation of all the line managers. Staff assistance is likely
to be effective when it is wanted rather than imposed. He has to persuade the line
managers to work with staff specialists and not against them.

Role 2. Counseling Role:

The personnel manager plays the role of a counseller with the employees also. He
discusses the various problems of the employees relating to work, career, their
supervisors, colleagues, health, family, financial, social etc. and suggests those means to
minimize and overcome those problems.

Role 3. Role of a Change Agent:

Personnel manager works as a change agent regarding personnel areas. To be an effective
consultant, he should be familiar with the needs and changing environment of the
business. He should initiate and spearhead necessary improvement in human resource
policies.
As a consultant, he can provide necessary infrastructure and support for organisation
development. He helps in introducing and implementing major institutional changes in
the organization.
Role 4. The Conscience Role:
While playing the conscious role, the personnel manager informs the management about
the humanitarian approach. He should advise the management about the moral and
ethical obligations towards the employees.

Role 5. Mediator’s Role:

The personnel manager often acts as a mediator in the organization. Whenever there is a
friction between two employees, two groups of employees, superiors and subordinates
and employees and management, the personnel manager has to act as a mediator, so as to
maintain industrial harmony.
Role 6. Liaison Role:
The personnel manager acts as a representative of the organization so as to give an
overall picture of the organizational operations to the employees particularly in case of
industrial disputes or grievance redressal. Similarly, he acts as employees’ representative
in representing their problems to the management particularly in concerns where trade
unions are not there.

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Role 7. Legal Role:
The personnel manager plays this fire fighting role of grievance handling, settlement of
disputes, handling disciplinary cases, collective bargaining, joint consultation,
interpretation and implementation of various labour laws, contacting lawyers regarding
court cases, filing suits in labour courts, industrial tribunals, civil courts and the like.
Role 8. Welfare Role:
Under Section 49 of the Factories Act, a welfare officer has to be appointed in specific
factories. Personnel manager is expected to be the welfare officer of the company. As a
welfare officer, he provides and maintains (on behalf of the company) canteens,
hospitals, creches, educational institutions, clubs, libraries, conveyance facilities;
cooperative credit societies, consumer stores etc.

Role 9. Controller’s Role:

The personnel manager assists the line managers in effective implementation of
personnel policies and programmes. His advice and service is essential for monitoring
and controlling the progress. As an arm of the top management, the personnel manager
ensures that the personnel policies and procedures approved and adopted by the
management are being consistently carried out in all the departments.

Role 10. Human Relations Role:

Personnel manager is supposed to be an expert in human relations. He is expected to
improve productivity by fulfilling the economic, social and psychological needs and
aspirations of employees. Personnel manager also has to meet the challenge of a fast
changing postindustrial society.

Nature of Personnel Management:

1. Personnel management includes the function of employment, development and
compensation- These functions are performed primarily by the personnel
management in consultation with other departments.
2. Personnel management is an extension to general management. It is concerned
with promoting and stimulating competent work force to make their fullest
contribution to the concern.
3. Personnel management exist to advise and assist the line managers in personnel
matters. Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather that making lengthy
schedules, plans, work methods. The problems and grievances of people at work
can be solved more effectively through rational personal policies.
5. It is based on human orientation. It tries to help the workers to develop their
potential fully to the concern.
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 6. It also motivates the employees through its effective incentive plans so that the
employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to
human resources, it manages both individual as well as blue-collar works.

The following points will bring out the nature of personnel management:

1. Managing People:
Personnel management is concerned with managing people at work. It does not manage
only organized or unorganized workers in the organization, but everyone working in the
enterprise. It covers all persons including clerical staff, executives, and managers.
2. Concerned with Employees:
Personnel management deals with employees both as individuals as well as in groups.
The aim is to motivate people for getting best results from them.
3. Helping Employees:
The employees are helped to develop their talent fully by providing them appropriate
opportunities. This will give them job satisfaction and may improve their performance at
work.
4. Universal Application:
Personal management may be used everywhere and in every type of organization. It is
equally useful in a government, semi government, non-profit organizations as is
beneficial to industrial and commercial houses. It is a part of management and has roots
extending throughout and beyond each organization.
5. Continuous Application:
Personal management is continuously used in every type of situation. It is not something
which may be used here and there or now and then. In the words of George Terry, It
cannot be turned on and off like water from faucet; it cannot be practiced only one hour
each day a week. Personal management requires a constant alertness and awareness of
human relations and their importance in everyday operations.

6 Contributing Disciplines to the Organization Behavior Field are

1. Psychology.
2. Sociology.
3. Social Psychology.
4. Economics.
5. Anthropology.
6. Political Sciences.

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Psychology
Psychology has perhaps the first influence on the field of organizational
behavior because it is a science of behavior. A psychologist studies almost all aspects Of
behavior.
Psychology deals with studying human behavior that seeks to explain and sometimes
change the behavior’of humans and other animals.
Psychologists are primarily interested in predicting the behavior of individuals to a great
extent by observing the dynamics of personal factors.
Those who have contributed and continued to add to the knowledge of OB are teaching
theorists, personality theorists, counseling psychologists and primary, industrial and
organizational psychologist.
Some of the numerous areas of interest within the disciplines of psychology are:

 General Psychology
 Experimental Psychology
 Clinical Psychology
 Consumer Psychology
 Personality and Social Psychology
 Industrial Psychology
 Counseling Psychology
 Educational Psychology
 Consulting Psychology

Understanding Psychological principles and its models help significantly in gaining the
knowledge of determinants of individual behavior such as

 The learning process,

 Motivation techniques,
 Personality determinants and development,
 Perceptual process and its implications,
 Training process,
 Leadership effectiveness,
 Job satisfaction,
 Individual decision making,
 Performance appraisal,
 Attitude measurement,
 Employee selection,
 Job design and work stress.

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Sociology
The major focus of sociologists is on studying the social systems in which individuals fill
their roles. The focus is on group dynamics.
They have made their greatest contribution to OB through their study of group behavior
in organization, particularly formal and sophisticated organizations.
Sociological concepts, theories, models, and techniques help significantly to understand
better the group dynamics, organizational culture, formal organization theory and
structure, corporate technology, bureaucracy, communications, power, conflict, and
intergroup behavior.
Psychologists are primarily interested in focusing their attention on the individual
behavior.
Key concepts of Sociology are;
Most sociologists today identify the discipline by using one of the three statements:

 Sociology deals with human interaction arid this communication are the key
influencing factor among people in social settings.
 Sociology is a study of plural behavior. Two or more interacting individuals constitute
a plurality pattern of behavior
 Sociology is the systematic study of social systems:

A social system is an operational social unit that is structured to serve a purpose.

It consists of two or more persons of different status with various roles playing a part in a
pattern that is sustained by a physical and cultural base.
When analyzing organizing as a social system, the following elements exist:

 People or actors
 Acts or Behavior
 Ends or Goals
 Norms, rules, or regulation controlling conduct or behavior
 Beliefs held by people as actors
 Status and status relationships
 Authority or power to influence other actors
 Role expectations, role performances, and role relationships.

Therefore, organizations are viewed by sociologies as consists of a variety of people with

different roles, status, and degree of authority.
The organization attempts to achieve certain generalized and specific objectives.
To attain some of the abstract ends such as the development of company loyalty, the
organization’s leaders appeal to the shared cultural base.

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 Selection Process

Definition: The Selection is a process of picking the right candidate with prerequisite
qualifications and capabilities to fill the jobs in the organization.

The selection process is quite lengthy and complex as it involves a series of steps before
making the final selection. The procedure of selection may vary from industry to
industry, company to company and even from department to department. Every
organization designs its selection process, keeping in mind the urgency of hiring people
and the prerequisites for the job vacancy.

The selection procedure comprises of following systematic steps:

1. Preliminary Interview: The preliminary interview is also called as a screening interview

wherein those candidates are eliminated from the further selection process who do not
meet the minimum eligibility criteria as required by the organization.

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 Here, the individuals are checked for their academic qualifications, skill sets, family
backgrounds and their interest in working with the firm. The preliminary interview is less
formal and is basically done to weed out the unsuitable candidates very much before
proceeding with a full-fledged selection process.

2. Receiving Applications: Once the individual qualifies the preliminary interview he is

required to fill in the application form in the prescribed format. This application contains
the candidate data such as age, qualification, experience, etc. This information helps the
interviewer to get the fair idea about the candidate and formulate questions to get more
information about him.
3. Screening Applications: Once the applications are received, these are screened by the
screening committee, who then prepare a list of those applicants whom they find suitable
for the interviews. The shortlisting criteria could be the age, sex, qualification, experience
of an individual. Once the list is prepared, the qualified candidates are called for the
interview either through a registered mail or e-mails.
4. Employment Tests or Psychological Tests

In order to check the mental ability and skill set of an individual, several tests are
conducted. Such as intelligence tests, aptitude tests, interest tests, psychological tests,
personality tests, etc. These tests are conducted to judge the suitability of the candidate
for the job.

Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant’s ability, aptitude and personality.

(a)Ability tests:
Assist in determining how well an individual can perform tasks related to the job. An
excellent illustration of this is the typing tests given to a prospective employer for
secretarial job. When applicant claims to know something, an ability test is taken to
measure how well they know it. Trade tests are the most common type of ability test
given. There are, of course, many unstandardised tests given in industries, such as typing
or dictation tests for an applicant for a stenographic position.
(b) Aptitude test:

Aptitude tests measure whether an individual’s has the capacity or latent ability to learn a
given job if given adequate training. The use of aptitude test is advisable when an
applicant has had little or no experience along the line of the job opening. Aptitudes tests
help determine a person’s potential to learn in a given area. An example of such test is the
general management aptitude tests (GMAT), which many business students take prior to
gaining admission to a graduate business school programme.

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(c )Intelligence test:

This test helps to evaluate traits of intelligence. Mental ability, presence of mind
(alertness), numerical ability, memory and such other aspects can be measured. The
intelligence is probably the most widely administered standardized test in industry. It is
taken to judge numerical, skills, reasoning, memory and such other abilities.

(d) Interest Test:

This is conducted to find out likes and dislikes of candidates towards occupations,
hobbies, etc. such tests indicate which occupations are more in line with a person’s
interest. Such tests also enable the company to provide vocational guidance to the
selected candidates and even to the existing employees. These tests are used to measure
an individual’s activity preferences. These tests are particularly useful for students
considering many careers or employees deciding upon career changes.

(e) Personality Test:

The importance of personality to job success is undeniable. Often an individual who

possesses the intelligence, aptitude and experience for certain has failed because of
inability to get along with and motivate other people. It is conducted to judge maturity,
social or interpersonal skills, behavior under stress and strain, etc. this test is very much
essential on case of selection of sales force, public relation staff, etc. where personality
plays an important role. Personality tests are similar to interest tests in that they, also,
involve a serious problem of obtaining an honest answer.

(f) Projective Test:

This test requires interpretation of problems or situations. For example, a photograph or a

picture can be shown to the candidates and they are asked to give their views, and
opinions about the picture.

(g) General knowledge Test:

Now days G.K. Tests are very common to find general awareness of the candidates in the
field of sports, politics, world affairs, current affairs.

(h) Perception Test:

At times perception tests can be conducted to find out beliefs, attitudes, and mental
sharpness.etc.

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 (i) Medical Test:

It reveals physical fitness of a candidate. With the development of technology, medical

tests have become diversified. Medical servicing helps measure and monitor a
candidate’s physical resilience upon exposure to hazardous chemicals.

5. Employment Interview: The one on one session with the candidate is conducted to gain
more insights about him. Here, the interviewer asks questions from the applicant to
discover more about him and to give him the accurate picture of the kind of a job he is
required to perform.

Also, the briefing of certain organizational policies is done, which is crucial in the
performance of the job. Through an interview, it is easier for the employer to understand
the candidate’s expectations from the job and also his communication skills along with
the confidence level can be checked at this stage.

6. Checking References: The firms usually ask for the references from the candidate to
cross check the authenticity of the information provided by him. These references could
be from the education institute from where the candidate has completed his studies or
from his previous employment where he was formerly engaged. These references are
checked to know the conduct and behavior of an individual and also his potential of
learning new jobs.
7. Medical Examination: Here the physical and mental fitness of the candidate are checked
to ensure that he is capable of performing the job. In some organizations, the medical
examination is done at the very beginning of the selection process while in some cases it
is done after the final selection.

Thus, this stage is not rigid and can take place anywhere in the process. The medical
examination is an important step in the selection process as it helps in ascertaining the
applicant’s physical ability to fulfill the job requirements.

8. Final Selection: Finally, the candidate who qualifies all the rounds of a selection process
is given the appointment letter to join the firm.

Thus, the selection is complex and a lengthy process as it involves several stages than an
individual has to qualify before getting finally selected for the job.

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 Job Description

A job description or JD is a document that describes the general tasks, or other related
duties, and responsibilities of a position. It may specify the functionary to whom the
position reports, specifications such as the qualifications or skills needed by the person in
the job, and a salary range.
According to Torrington, a job description is usually developed by conducting a job
analysis, which includes examining the tasks and sequences of tasks necessary to perform
the job. The analysis considers the areas of knowledge and skills needed for the job
Process of Job Analysis

1. Defining the objectives: The foremost step in the process of job analysis is defining the
objective of the job analysis. The objective could be either of the following:
 Redesign the job description
 Revise the compensation program
 Change the organization structure
 Redesign the job in a particular department. Once the objective is selected, it should
be well communicated to the top management because with its support only, the
changes can be made in the organization.

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2. Preparing the job Analysis: After setting an objective, the kind of jobs that are to be
analyzed are selected, whether the clerical jobs, managerial jobs, division specific job,
etc. Also, the members who are included in the analysis and the methods to be used are
identified.At this stage, the complete review of the existing job description is done to
have a fair insight of the duties, responsibilities, organization chart, working conditions,
hazards, etc. that exist in a particular set of jobs.

3. Performing the Job Analysis: The next stage in the process of job analysis is to
perform or begin with the job analysis. Here, the sufficient time should be allotted for
collecting the job details from the employees. The information from the employees can
be collected through questionnaires, interviews, or through an observation method. Once
the information gets collected it needs to be sorted on the basis of its nature, division,
department.

4. Designing Job Descriptions and Job Specifications: At this stage, the job analyst
prepares a draft of the job description and the specifications. After sorting of the
information, the changes that need to be made in the jobs is identified and is written on
paper. Once the draft gets prepared, it is circulated to the managers, supervisors, and the
employees.

5. Control Job Descriptions and Job Specifications: This is the last step in the process
of job analysis wherein the job descriptions, and the specifications are timely checked
and modified according to the changing needs of the organization.

The job analysis results in the job description and the job specification. The Job
description comprises of job duties, the level of responsibilities, working conditions, etc.
and whereas the job specification tells about the skills, education, background,
qualification, training, communication skills required to perform a specific job.

Recruitment Process
Definition: The Recruitment is the process of analyzing the job requirements and then
finding the prospective candidates who are then encouraged and stimulated to apply for
the job in the organization.

The Recruitment programme is designed to attract more and more applicants such that
the pool of candidates applies for the job, and the organization has more options to select
the best out of them. The recruitment process consists of five interrelated stages which
are as follows:

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1. Recruitment Planning: The recruitment process begins with the planning where in the
vacant job positions are analyzed and then the comprehensive job draft is prepared that
includes: job specifications and its nature, skills, qualifications, experience needed for the
job, etc.

Here, the recruitment committee decides on the number and the type of applicants to be
contacted. The aim of any organization is to attract more candidates as some of them
might not be willing to join, or some might not qualify for the job position. So the
company has a sufficient number of candidates to choose amongst them. The type of
candidates required for the job is well specified in terms of the task and responsibilities
involved in a job along with the qualification and experience expected.

2. Strategy Development: Once the comprehensive job draft is prepared, and the type and
the number of recruits required are decided upon; the next step is to decide a strategy that
is adopted while recruiting the prospective candidates in the organization. The following
strategic considerations should be kept in mind:

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  Make or Buy Employees, which means the firm either decides to select less skilled
employees and invest in training and education programmes or hire skilled
professionals.
 Methods of Recruitment, the firm decide on the methods used for recruiting the
individuals. Such as the internet provides detailed information about the prospective
candidates and helps in short listing the best-qualified individuals.
 Geographical Area, the next decision is related to the area from where the
candidates shall be searched. The firm looks for those areas where the handful amount
of qualified employees is concentrated, with a view to curtailing a search cost.
 Sources of Recruitment, there are two sources of recruitment: Internal source (within
the organization), external source (outside the organization). The firm must decide the
source from where the candidates are hired.

3. Searching: Once the strategy is prepared the search for the candidates can be initialized.
It includes two steps: source activation and selling. The source activation means, the
search for the candidate activates on the employee requisition i.e. until and unless the line
manager verifies that the vacancy exists, the search process cannot be initiated.

The next point to be considered is selling, which means the firm must judiciously select
that media of communication that successfully conveys the employment information to
the prospective candidates.

4. Screening: The screening means to shortlist the applications of the candidates for further
selection process. Although, the screening is considered as the starting point of selection
but is integral to the recruitment process. This is because the selection process begins
only after the applications are scrutinized and shortlisted on the basis of job requirements.
The purpose of recruitment here is to remove those applications at an early stage which
clearly seems to be unqualified for the job.
5. Evaluation and Control: Evaluation and control is the last stage in the recruitment
process wherein the validity and effectiveness of the process and the methods used
therein is assessed. This stage is crucial because the firm has to check the output in terms
of the cost incurred.

The recruitment is a costly process as it includes the salaries of recruiters, time spent by
the management, cost of advertisement, cost of selection, a price paid for the overtime
and outsourcing in case the vacancy remains unfilled. Thus, a firm is required to gather
all these relevant information to evaluate the performance of a recruitment process
effectively.
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 Introduction to Training

Training of Employees: Meaning, Objectives, Need and Importance

Training is concerned with increasing the knowledge and skills of employees for doing
specific jobs, and development involves the growth of employees in all aspects.
Whereas training increases job skills, development shapes attitudes of employees.

Meaning of Training:
“Training is the act of increasing the knowledge and skills of an employee for doing a
particular job.” — Edwin B. Flippo

Training is an organized activity for increasing the technical skills of the employees to
enable them to do particular jobs efficiently. In other words, training provides the
workers with facility to gain technical knowledge and to learn new skills to do specific
jobs. Training is equally important for the existing as well as the new employees. It
enables the new employees to get acquainted with their jobs and also increase the job-
related knowledge and skills.
Objectives of Training:
The objectives of training are as follows:
(i) To provide job related knowledge to the workers.
(ii) To impart skills among the workers systematically so that they may learn quickly.
(iii) To bring about change in the attitudes of the workers towards fellow workers,
supervisor and the organization.
(iv) To improve the productivity of the workers and the organization.
(v) To reduce the number of accidents by providing safety training to the workers,
(vi) To make the workers handle materials, machines and equipment efficiently and thus
to check wastage of time and resources.
(vii) To prepare workers for promotion to higher jobs by imparting them advanced skills

The need for training of employees arises due to the following factors

(i) Higher Productivity:

It is essential to increase productivity and reduce cost of production for meeting
competition in the market. Effective training can help increase productivity of workers by
imparting the required skills.

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(ii) Quality Improvement:
The customers have become quality conscious and their requirement keep on changing.
To satisfy the customers, quality of products must be continuously improved through
training of workers.
(iii) Reduction of Learning Time:
Systematic training through trained instructors is essential to reduce the training period. If
the workers learn through trial and error, they will take a longer time and even may not
be able to learn right methods of doing work.
(iv) Industrial Safety:
Trained workers can handle the machines safely. They also know the use of various
safety devices in the factory. Thus, they are less prone to industrial accidents.
(iv) Reduction of Turnover and Absenteeism:
Training creates a feeling of confidence in the minds of the workers. It gives them a
security at the workplace. As a result, labour turnover and absenteeism rates are reduced.
(vi) Technology Update:
Technology is changing at a fast pace. The workers must learn new techniques to make
use of advance technology. Thus, training should be treated as a continuous process to
update the employees in the new methods and procedures.
(vii) Effective Management:
Training can be used as an effective tool of planning and control. It develops skills
among workers and prepares them for handling present and future jobs. It helps in
reducing the costs of supervision, wastages and industrial accidents. It also helps increase
productivity and quality which are the cherished goals of any modern organization.

Advantages of Training
There can be many training and development advantages of the staff as they could use it
for their company’s growth.
1. Stay ahead of competitors:
In order to stay ahead of competitors, it is mandatory to monitor that your employees are
advancing.By undergoing staff training, the organization with its employees would
definitely be ahead of their competitors.
2. Keep up with industry changes:
In order to be parallel with all industries and not left behind, staff training is necessary.
With the help of staff training, the industry is said to be abiding by the industry
regulations and also makes sure that the employees are updated with the latest skills.
3. An opportunity to learn:
When staff training is provided in the development path, the employees would have the
interest to learn, implement the new strategies learned.

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4. Grabs in new talent:
The aim for any organization would be to possess the best talents in their industry. With
the help of staff training not only employee retention is attained, but best talents from
outside are also grabbed in.With staff training, the good image is developed for business
which is desired by most job seekers.
5. Self-confidence:
There is more self-confidence for employees when staff training is offered. There is more
of adjustment amongst workers and the employees are not humiliated in the presence of
seniors. With self-confidence, the employees are able to put in best efforts for the
future.
6. Positive attitude:
With the help of staff training, there is a positive attitude amongst employees, along
with enhanced motivation levels which enhances the result of the organization.
7. Group effort:
Staff training not only trains the staff but also helps them understand about working with
a team with complete efforts. With such training group efforts are achieved.
8. Handles customers well:
Trained staffs are ones who know the techniques to handle the customer in the right
manner. By this way, the business is run in the better manner where customer inquiries,
sales and lot more are handled effectively.
Disadvantages of Staff Training
1. Waste of time and money:
There is surely a waste of valuable resources, as the organization needs to spend money,
time, and hire other people for training. They also need to pay wages for both the trainer
as well as the employees.
2. Increased stress:
In order to keep the staffs up to date with the latest trends and knowledgeable in their
specific area, training staffs for more number of hours can make them stressed. As they
are stressed, their job levels may go down too.
3. Too much of theory:
Training programs for certain departments are too much of theory than application. These
kinds of lectures make it tough for employees to learn the subject.
Thus theoretical lectures make the whole training program boring when it’s for the
prolonged period.
4. Loss of interest:
At times of training sessions which lead for long hours, employees are bored and aren’t
interested in their session.Data and information are thus not retained for employees who
do not listen. When training programs are conducted continuously with the same data or
theory, again and again, the employees lose interest.
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5. Leave for the new job:
When an employee is trained and updated with all the latest knowledge and skills. They
are prepared and ready to jump to another organization which offers good perks and
salary.
6. Time requirements:
The other main important disadvantages of employee training are that there may not be
enough time for staff training with the daily hectic schedule.
There are many organizations who dedicate very less time, which may not be helpful in
making the employee productive or knowledgeable. With very less time, the trainer
usually rushed through the main parts of the job which is to be understood by the
employees.
7. Control of training:
When your responsibility of training for new employees is delegated to some other
trainer or employee, then it is mandatory to think about what the employees are learning.
The trainer may not be a skilled and talented one like you; hence the employees may pick
some bad habits and end up with quality less training. This would spoil the complete
training. Hence having a good control over training is necessary.
Advantages and Disadvantages of Staff Training:

Advantages of Staff Training Disadvantages of Staff Training

Stay ahead of competitors Waste of time and money

Keep up with industry changes Increased stress

An opportunity to learn Too much of theory

Grabs in new talent Loss of interest

Self-confidence Leave for new job

Positive attitude Time requirements

Group effort Control of training

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Methods of Training: On-the-job Training Method and Off-the-Job Methods!
Management development is a systematic process of growth and development by which
the managers develop their abilities to manage. It is concerned with not only improving
the performance of managers but also giving them opportunities for growth and develop-
ment.

There are two methods through which managers can improve their knowledge and skills.
One is through formal training and other is through on the job experiences. On the job
training is very important since real learning takes place only when one practices what
they have studied.

1. On-the-job Training (OJT) Methods:

This is the most common method of training in which a trainee is placed on a specific job
and taught the skills and knowledge necessary to perform it.

The advantages of OJT are as follows:

1. On the job method is a flexible method.

2. It is a less expensive method.

3. The trainee is highly motivated and encouraged to learn.

4. Much arrangement for the training is not required.

On-the-job training methods are as follows:

1. Job rotation:
This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the trainee
understand the problems of other employees.

2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as a
coach in training and provides feedback to the trainee. Sometimes the trainee may not get
an opportunity to express his ideas.

3. Job instructions:
Also known as step-by-step training in which the trainer explains the way of doing the
jobs to the trainee and in case of mistakes, corrects the trainee.

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4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the
problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are provided to
the trainees. Usually, students from the engineering and commerce colleges receive this
type of training for a small stipend.
2. Off-the-job Methods:
On the job training methods have their own limitations, and in order to have the overall
development of employee’s off-the-job training can also be imparted. The methods of
training which are adopted for the development of employees away from the field of the
job are known as off-the-job methods.

The following are some of the off-the-job techniques:

1. Case study method:
Usually case study deals with any problem confronted by a business which can be solved
by an employee. The trainee is given an opportunity to analyse the case and come out
with all possible solutions. This method can enhance analytic and critical thinking of an
employee.
2. Incident method:
Incidents are prepared on the basis of actual situations which happened in different
organizations and each employee in the training group is asked to make decisions as if it
is a real-life situation. Later on, the entire group discusses the incident and takes
decisions related to the incident on the basis of individual and group decisions.
3. Role play:
In this case also a problem situation is simulated asking the employee to assume the role
of a particular person in the situation. The participant interacts with other participants
assuming different roles. The whole play will be recorded and trainee gets an opportunity
to examine their own performance.
4. In-basket method:
The employees are given information about an imaginary company, its activities and
products, HR employed and all data related to the firm. The trainee (employee under
training) has to make notes, delegate tasks and prepare schedules within a specified time.
This can develop situational judgments and quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and each group has to
discuss about various activities and functions of an imaginary organization. They will
discuss and decide about various subjects like production, promotion, pricing etc. This
gives result in co-operative decision making process.
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6. Grid training:
It is a continuous and phased programme lasting for six years. It includes phases of
planning development, implementation and evaluation. The grid takes into consideration
parameters like concern for people and concern for people.
7. Lectures:
This will be a suitable method when the numbers of trainees are quite large. Lectures can
be very much helpful in explaining the concepts and principles very clearly, and face to
face interaction is very much possible.
8. Simulation:
Under this method an imaginary situation is created and trainees are asked to act on it.
For e.g., assuming the role of a marketing manager solving the marketing problems or
creating a new strategy etc.
9. Management education:
At present universities and management institutes gives great emphasis on management
education. For e.g., Mumbai University has started bachelors and postgraduate degree in
Management. Many management Institutes provide not only degrees but also hands on
experience having collaboration with business concerns.
10. Conferences:
A meeting of several people to discuss any subject is called conference. Each participant
contributes by analyzing and discussing various issues related to the topic. Everyone can
express their own view point.
Training Process
Definition: The Training Process comprises of a series of steps that needs to be
followed systematically to have an efficient training programme. The Training is a
systematic activity performed to modify the skills, attitudes and the behavior of an
employee to perform a particular job.

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 1. Needs assessment: The first step in the training process is to assess the need for
training the employees. The need for training could be identified through a diagnosis of
present and future challenges and through a gap between the employee’s actual
performance and the standard performance.
The needs assessment can be studied from two perspectives: Individual and group. The
individual training is designed to enhance the individual’s efficiency when not
performing adequately. And whereas the group training is intended to inculcate the new
changes in the employees due to a change in the organization’s strategy.

Deriving Instructional Objectives: Once the needs are identified, the objectives for
which the training is to be conducted are established. The objectives could be based on
the gaps seen in the training programmes conducted earlier and the skill sets developed
by the employees.

1. Designing Training Programme: The next step is to design the training programme in
line with the set objectives. Every training programme encompasses certain issues such
as: Who are the trainees? Who are the trainers? What methods are to be used for the
training? What will be the level of training? etc.Also, the comprehensive action plan is
designed that includes the training content, material, learning theories, instructional
design, and the other training requisites.
2. Implementation of the Training Programme: Once the designing of the training
programme is completed, the next step is to put it into the action. The foremost decision
that needs to be made is where the training will be conducted either in-house or outside
the organization.

Once it is decided, the time for the training is set along with the trainer who will be
conducting the training session. Also, the trainees are monitored continuously throughout
the training programme to see if it’s effective and is able to retain the employee’s interest.

3. Evaluation of the Training Programme: After the training is done, the employees are
asked to give their feedback on the training session and whether they felt useful or not.
Through feedback, an organization can determine the weak spots if any, and can rectify it
in the next session.The evaluation of the training programme is a must because
companies invest huge amounts in these sessions and must know it’s effectiveness in
terms of money.

Thus, every firm follows the series of steps to design an effective training programme
that serves the purpose for which it was intended.

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