HRMManual122018tobeuploaded PDF

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/325385446
Course Manual On HRM 1340: Human Resource Management Year I: Semester

II-2018
Book · May 2018
CITATIONS READS
0 2,355
1 author:
Henarath H. D. N. P Opatha
University of Sri Jayewardenepura
116 PUBLICATIONS 405 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Quality of Work Life View project
Labour-Management Relationship View project
All content following this page was uploaded by Henarath H. D. N. P Opatha on 01 August 2019.
The user has requested enhancement of the downloaded file.

Course Manual
On
HRM 1340: Human Resource Management

Year I: Semester II-2018
Manual 1-Chapters 1 to 9
Department of Human Resource Management

Faculty of Management Studies and Commerce
Nugegoda, Sri Lanka
1
© 2002 Department of Human Resource Management
COURSE DIRECTOR
Senior Prof. Dr. Henarath H.D.N.P.Opatha
COURSE COORDINATOR
Dr. (Mrs) G.D.N. Perera
TEAM OF LECTURERS IN HRM

Senior Prof. Henarath H.D.N.P.Opatha
Dr. (Mrs) M.G.G.Tharanganie
Dr. (Mrs) U.K.Thalgaspitiya
Dr. N.W.D.K.Dayarathna
Dr. (Mrs) G.D.N.Perera
Dr. (Mrs) T.L.Sajeevanie
Mr.C.C.Piyasena
This manual was prepared by Senior Prof. Dr. Henarath.H.D.N.P.Opatha, (then

Professor of HRM on Merit and Head of the Department of Human Resource
Management of USJ) in 2002.
2
Preface
This manual was specially prepared for the course-HRM 2301 Human
Resource Management that is offered by the Faculty of Management Studies
and Commerce in the year II: semester I of the common programme. Under
the course there are three study materials, i.e., Manual 1, Manual 2 and
Applications in Human Resource Management. This manual is part one and
I must stress that this is not a text book but only a guide to the
undergraduates to follow the course more effectively and efficiently. We
believe in that these materials will be very useful to our undergraduates. In
addition I purposively did not add new developments in the respective
issues of HRM owing to the reasons that this course is an elementary one
for all students of Management under the Faculty, there is already a heavy
academic work load for the students, and the duration of the course is
limited.

Course Director
3
CONTENTS
Chapters Page
Numbers
1. Human Resource Management 01
2. Human Resource Department 10
3. Job Design 16
4. Job Analysis 19
5. Human Resource Planning 23
6. Recruitment 28
7. Selection 33
8. Hiring and Induction 37
9. Performance Evaluation 41
4
Year I : Semester 1I
Course Syllabus
Course Title: HRM 1340 Human Resource Management
Course Director: Senior Professor and Literarum Doctor H.H.D.N.P.Opatha

BSc (BA) Special (Hons) (USJ); MSc (BA) HRM (USJ); MBA (Birmingham);
Dip. Personnel Mgt & Industrial Relations (Cambridge Col); Dip Eve Eng
(CPM); PhD (HRM) (UUM); DHRM(IIU); Cert.DBA (OXIM-UK); D. Litt
(SUSL)
Course Coordinator: Dr. (Mrs) G.D.N. Perera

B.Sc. Human Resource Management (Special)(USJ); MSc (USJ); PhD (MSU);
CTHE (University of Colombo)
Course Philosophy:
A clear interdependence exists between our society and organizations that produce goods
and services in order to fulfill our needs. The standards of living and even survival of
people in the society depend on the goods and services of the organization. Thus, any
society/nation wants organizations that need people to achieve organizational objectives
and goals. People-less organizations are impossible to realize even in a growing high-tech
economy. Generally any organization whether private or public, in industrial or service
sector is characterized by two types of people at work viz. the managerial employees and
non-managerial employees. It is indispensable to manage efficiently and effectively these
employees in order to achieve success and progress of success of organizations and
finally accomplishment of societal needs. This course is about efficient and effective
management of people at work.
Course Objectives:
The main objective of this course is to provide a systematic and rational understanding of
Human Resource Management (HRM), both conceptual understanding and job-oriented
practical understanding. It focuses on a systematic and scientific approach to the analysis
and handling of issues/problems in HRM with especial reference to Sri Lankan context.
5
Having completed this course, participants will have a firm foundation upon which to:
further study of HRM, and manage human resources of an organization regardless of
functional specialty of participants‟ interest and industry of participants‟ interest.
Methods of Evaluation: Continuous Assessment 30%

Final Examination 70%
Course Contents:
1. Introduction to HRM: The central challenges, human Factor, definitions, generic
purpose, strategic goals, objectives, functions, responsibility for functions, the HRM
model, significance and approaches (one session)
2. Organization of the HR Department: Departmental components, centralized versus
decentralized HR departments, HR generalists and specialists, staffing the HR
department, qualities of HR manager and professionalisation (one session)
3. Job Design: Definition, significance, techniques of JD, elements of JD, trade offs
between efficiency elements and behavioural elements (one session)
4. Job Analysis: Definition, significance and purposes, JA process, problems with JA
(one session)
5. Human Power Planning: Definition, importance, HPP process, forecasting HR for
future, estimating HR supply, comparing HR demand and HR supply and deciding
strategies to be taken, evaluating HPP effort and principles of HPP (two sessions)
6. Recruitment: Definition, importance, R process, identifying job vacancies,
ascertaining job requirements, consideration of relevant factors, preparing job
application form, deciding R method, implementation of R plan, evaluation of R
effort and increasing the number of applicants (two sessions)
7. Selection: Definition, S importance, S methods, and S process (two sessions)
8. Hiring and Induction: H definition, process of H, probation period, definition of I,
importance of I, and I process (one session)
9. Performance Evaluation: Definition, PE nature. Importance of PE, purposes of PE,
process of PE, and evaluator errors (two sessions)
10. Pay Management: Definition, pay versus rewards, pay management, objectives of pay
management, importance of PM, factors affecting pay, PM process, job evaluation,
pay surveys, job pricing, individual pay adjustments, pay openness and secrecy, and
pay and other payments (two sessions)
6
11. Training and Development and Career Management: Definition of T & D,
distinction between T & D, training and education, need for T & D, purposes of T &
D, learning, learning curves and learning principles, T methods, Mgt obsolescence,
process of T, responsibility of T in an organisation and career planning and Mgt
(three sessions)
12. Employee Movements: promotions- definition, importance, methods of P, P criteria,
calculating seniority and special problems due to promotions; transfers-definition,
reasons for Ts, types of Ts, employer right of Ts and elements of Transferring; lay-
offs- definition, characteristics, and methods of Ls (one session)
13. Management of Discipline: Definition, importance of D, types of D, hot-stove rule,
progressive D, disciplinary offences and penalties, counseling approach for D,
sandwich model, domestic inquiries, and principles of DM (one session)
14. Health and Safety Administration: Definition, importance of HAS, Hazards and
factors affecting H & S, strategies of H & S, and responsibility for H & S (one
session)
15. Employee Welfare Administration: Definition, importance of welfare, types of
welfare services, statutory welfare, considerations of a welfare programme, principles
of EWA and welfare officer (one session)
16. Grievance Handling: Definition, importance of grievance handling, causes of Gs,
identification of Gs, grievance settlement procedure, alternative methods of GH,
principles of GH and strategies (one session)
17. Management of Labour Relations: Definition, importance of LR, LR system, trade
unions, collective bargaining, joint consultation and determinants of LR (two
sessions)
18. HRM in Perspective: Challenges to HR policies, external challenges to HRM,
workplace innovations in the future, the future of HRM and trends in HRM (one
session/depending on time)
Also it is expected to cover the following:

Critical Incidents in HRM
1. The Birth of A HR Department
2. Hard Work
3. The Super Management Trainee
4. The Employment Interview
7
5. Orientation at Warehousing of North America,Inc
6. Performance Evaluation at M Company
Cases in HRM
1. Commencement
2. The Reluctant Receptionist
3. X Development and Administration Department
4. Heen Kendiriya
5. Supervisory Training Course
6. The Accident
7. Sangeeth Company
8. Rupee Corporation
9. Disciplinary Action
Skill Building Applications in HRM

1. Selecting a Management Trainee(HRM)
2. Identifying Different Types of Criteria of PE
3. Writing PE Standards of Subjective Criteria
4. Interviewer Errors
5. Job Evaluation 1
6. Job Evaluation 2
7. Welfare Scheme
Recommended References (In addition to the manuals):
Essential Reading
 Opatha, H.H.D.N.P., (2009), Human Resource Management: Personnel, Colombo: Dept of
HRM, University of Sri Jayewardenepura.
Additional Readings
 Armstrong, M. (1998). A Handbook of Personnel Management Practice, London: Kogan
Page Ltd.
 Mathis, L. and Jackson, H. (2000). Human Resource Management, New York: South-
Western Collee Publishing.
8
 Opatha, H.H.D.N.P. (1995). Sewa Mandala Kalamanakaranaya (Personnel Management,
Colombo: Author Publication.
 Schular, R.S. and Huber, V.L. (1990). Personnel and Human Resource Management, 4ed.
St.paul: West Publishing Company.
 Werther, B. W. and Davis, K (1994). Human Resources and Personnel Management, 4ed,
New York: McGraw- Hill Book Company.
(Latest editions of the above mentioned books)
The lecturers will inform relevant articles during the class times.
Course Lecturing Plan –1

HRM 1340 Human Resource Management
Session Topic
01 Introduction to HRM
02 Human Resource Department
03 Job Design
04 Job Analysis
05 Human Resource Planning I
06 Human Resource Planning II
07 Recruitment
08 Selection I
09 Selection II
10 Hiring and Induction
11 Performance Evaluation I
12 Performance Evaluation II
13 Performance Evaluation III
14 Feedback
9
Chapter 1
Human Resource Management (HRM)
Objectives:
After studying this chapter& listening to the lecture successfully the student will be able
to:
i. Define what HRM means.
ii. Understand the significance of Human Resources (HR).
iii. Describe the generic purpose, strategic goals and objectives of HRM.
iv. Ascertain the functions of HRM.
v. Understand a Model of HRM.
vi. Describe the significance of HRM
Introduction
Today Human Resource Management (HRM), which is a very significant functional field
of organizational management, has evolved a very broad and profound management
branch. It is HRM that deals with management of Human Resources. HRM is also called
by alternative names such as Personnel Management (PM), Manpower Management,
People Management and Staff Management. Schuler and Youngblood (1986, p.6) state:
“Of great importance to organizations today is how to effectively use their human resources. Effective PM
is the recognition of the importance of a company’s work force as vital human resources and the
utilization of several functions and activities to ensure that they are used effectively and legally for the
benefit of the individual, the organization and society.”
Definition of HRM
HRM can be defined as follows:
“HRM is the efficient and effective utilization of human resources to achieve
goals of an organization.”
According to the above definition of HRM,

(a) An organization means an economic and social entity composed of a group of people
who interact with each other for the purpose of achieving a common goal. This
organization may be either profit organization or non-profit organization. Also it may
belong to public sector or private sector or cooperative sector.
10
(b) Goals refer to desired targets to be achieved in future. The basic goal of any
organization should ideally be to serve the human society. If not, the existence of the
organization will suffer or vanish after a short period. Basic goal of an organization is to
fulfil human needs and upgrade standard of living of people. The fulfilment of all human
needs is impossible for an organization. Therefore, what human need or needs to be
fulfilled should be defined. Thus, by fulfilling certain human need/ needs the
organization activates to enhance level of welfare enjoyed by people.
Instance: -
To upgrade the standard of living of Sri Lankan people through the production and
distribution of high quality dairy products.
In order to achieve the above-mentioned basic goal, the organization establishes specific
goals. An organization may establish one or several or all of the goals mentioned bellow
or other ones not mentioned here:
* To increase net assets of owners.

* To enhance employee welfare and development.
*To maximize customer satisfaction.
* To achieve cooperate growth.
* To maintain market share.
* To fulfill social responsibility.
*To achieve financial stability.
* To increase quality of the product.
(c) Human Resources (HR) are employees who work for the organization being
concerned. It is not an exaggeration that HR is the most significant resource compared
with other resources such as financial resources, physical resources etc. The
overwhelming significance of HR is due to its unique characteristics, which are:
1. It is animate, active and living.
2. It has the ability to think, feel and react.
3. Its value appreciates with the passage of time (because of experience, training
etc.).
4. It has the ability to influence on determining its cost.
5. It has the ability to organize (as unions, teams etc.)
11
6. Its behaviour is complex and may be unpredictable.
7. It has the ability of creativity and innovation, which cannot be found in any other
resources.
8. It makes decisions in respect of all other resources.
HR with the above mentioned unique characteristics in an organization could be divided
into two groups such as managerial employees and non-managerial employees.
(d) Efficient utilization of HR means optimum use of employees by eradicating (or

minimizing) wastage. It denotes utilizing the right employees in the right number at
the right cost. It involves fulfillment of activities by minimizing waste of available
HR, as much as possible, in terms of number of employees, their efforts and total
employee cost etc.
(e) Effective utilization refers to use of HR for organizational effectiveness, which is the
extent to which goals of the organization have been realized. It involves utilization of
employees so as to accomplish goals of the organization fully. It is possible for an
organization to achieve efficiency by minimizing employment cost through reduction of
employees in quantity and quality as many /much as possible. However, if the relevant
activities and functions are not performed successfully and organizational goals are not
attained such an efficiency will be meaningless. Hence efficiency should be reached so as
to attain organizational effectiveness.
The Generic Purpose

The generic purpose of HRM is to generate and retain an appropriate and contented
human/ employee force, which gives the maximum individual contribution to
organizational success. Appropriate means accurate quantity and quality. An appropriate
employee force includes employees who possess knowledge, skills and attitudes that are
necessary for attaining fully goals of the organization. Contented refers to being satisfied
and quite happy (enjoying higher level of welfare).
Strategic Goals
There are several strategic goals of HRM in order to achieve the above-mentioned
generic purpose. They are:
12
1. To improve Employee Productivity
Employee productivity is the relationship between employee inputs and outputs. It is the
ratio of employee outputs to employee inputs within a certain period of time. The
following formula can be used to calculate the employee productivity.
Employee outputs (Number of units produced)

Employee productivity = -----------------------------------------------------
Employee inputs (Number of employees)
This implies how many units of production one employee creates for a particular period
of time. Expected employee productivity should be achieved within certain duration and
also employee productivity improvement should be achieved (for the next period) for the
progress of success. Simply productivity improvement means doing better tomorrow
than today.
2. Employee Development
Employee development denotes a broader meaning. It involves provision of
opportunities as many as possible to accomplish employees‟ personal objectives,
improvement of their career development or career path, and enhancement of their
competency through the development of knowledge, skills and attitudes.
3. To increase Quality of Work Life (QWL)

QWL is a wide and abstract concept gross meaning of which is that all the employees
have the opportunity of presenting their ideas, suggestions and opinions before making
decisions which affect them. Schuler and Youngblood (1986,p 455) defines QWL as a
situation in which all members of the organization, through appropriate channels of
communication set up for this purpose, have some say about the design of their jobs in
particular and the work environment in general. It is intended that the degree of
employees‟ participation or involvement in making employment decisions is increased.
4. To ensure Legal Compliance

HR of the organization should be utilized so as to conform to various laws imposed by
the government in relation to managing people. If legal compliance does not exist
survival of the organization will jeopardize owing to incidences of diverse industrial
13
conflicts such as strikes. Sri Lankan government has imposed a set of labour laws some
of which are given below:
* Shop and office employees Act

* Employment of Women, Young persons and Children Act
* Industrial Disputes Act
* Termination of Employment of Workmen (special provision) Act
* Employees‟ Holidays Act
* Workmen‟s Compensation Act
* Wages Boards Ordinance
* Trade Unions Ordinance
HRM in an organization (specially private) should be performed in compliance with

legitimate provisions imposed by the labour laws.
Objectives
When strategic goals of HRM are fulfilled, the fulfillment of the generic purpose of
HRM occurs. The following objectives have to be accomplished in order to achieve
strategic goals of HRM.
1. To procure right people at the right time to do the right jobs.

2. To retrain the more appropriate employees (who produce desired performance)
within the organization.
3. To get and improve the employee commitment.
4. To motivate employees.
5. To control the cost of employees.
Functions
There is a series of functions to be followed in order to accomplish the goals and
the objectives of HRM. This series of functions includes:
1. Job Design (The function of arranging tasks, duties and responsibilities into an
organizational unit of work.)
14
2. Job Analysis (The function of investigating systematically jobs and job holder
characteristics in order to create a collection of job information.)
3. Human Power Planning (The process of determining future employee needs and
deciding steps or strategies to achieve those needs.)
4. Recruitment (The process of finding and attracting qualified people to apply for
employment.)
5. Selection (The process of making the choice of the most appropriate persons from
the pool of applicants recruited to fill the relevant job vacancies.)
6. Hiring (The process of appointing the persons selected to the posts/ jobs which are
vacant.)
7. Induction (The function that systematically and formerly introduces the new
employees to the organization.)
8. Performance Evaluation (The function that measures degree of effectiveness and
efficiency of employees in performing their jobs.)
9. Pay management (The process of development, implementation and maintenance of
a base pay system which adheres to external equity, internal equity and absolute
equity.)
10. Training and Development (The process of improving current and future employee
performance by increasing employees‟ abilities through acquisition of knowledge,
skills and attitudes.)
11. Employee Movements (The function that deals with promotions, transfers, lay-offs
etc. in the right way at the right times.)
12. Welfare Administration (The group of activities involved in the development,
implementation and on-going maintenance of a fair and effective system of facilities
and comforts to enhance standard of living of employees.)
13. Management of incentives and benefits (the process of development, implementation
and maintenance of a fair and adequate system of incentives and benefits.)
14. Safety and Health Administration (The group of activities involved in creating,
improving and maintaining total health and safety of employees.)
15. Discipline Administration (The group of activities involved in planning and
controlling behaviour of employees in compliance with established rules and
regulations.)
16. Grievance Handling (The function that identifies and solves discontents arising from
feelings of injustice felt by employees in connection with work environments.)
15
17. Labour Relations (Management of all interactions which occur between management
and trade unions.)
The above functions refer to as HRM functions. These functions are interrelated. For
instance, pay management can be performed successfully by doing job analysis
successfully. That, performance evaluation gives inputs to perform the function of
training and development, is another example showing the interrelated nature.
Also some functions are interdependent. Success of one function has a direct impact on
determining the success of another function. For instance, success of selection function
depends on successful performance of recruitment function. A decision taken in
performing one function may affect performance of another function. For instance,
salary determined for a job according to job evaluation affects recruitment in respect of
that job. It is very imperative to ascertain that there are interrelationship and
interdependency among HRM functions.
See the figure 1-1. It depicts the model developed by Opatha (2002) in respect of HRM.
16
FIGURE 1-1: A Model of Human Resource Management Performance
Evaluation
Pay Management
Training &
Development
Job Objectives Strategic Goals Generic Goal
Design Development 1. Procurement 1. Improvement To generate
of right people of Employee and retain an
Employee in the right Productivity appropriate and
Movements way 2. Employee contented
2. Retention of Development employee force
the most 3. Enhancement which gives the
Job Human Hiring & appropriate of Quality of maximum
Analysis Resource Recruitment Management of
Selection Incentives employees Work Life individual
Planning Induction 3. Employee 4. Ensuring Legal contribution to
Commitment Compliance organizational
4. Employee success.
Welfare Motivation
Administration 5. Control of
Employment
Costs
Health & Safety

Administration
Discipline
Management
Grievance Handling
Source: Opatha, 2002, Performance Evaluation of Human Resources
Labour Relations
Management
17
Responsibility for Functions of HRM
The responsibility for HRM functions rests with every manager in the organization being
concerned. In fact a dual responsibility exists among other (line and staff) managers and
HRM experts. Every manager has subordinates to be managed. Therefore HRM is a
responsibility of all those who manage people as well as specialists designated as
HR/Personnel Managers.
Significance of HRM
Following points highlight the significance of HRM.
1. Human resources are the most important resource that managers utilize to achieve
goals and objectives of an organization.
2. Quality of other functional fields of management heavily depends on quality of
HRM in an organization.
3. HRM is the responsibility of every manager in an organization.
Activity 1.1: Discuss the following statement:

“Other resources make things possible. But only human resources make things happen.”
Self-Assignment 1.1:
Select any organization to which you have an access. Discuss with the General Manager or
HR manager with regard to the following:
(a) Purpose of HRM
(b) Goals and Objectives of HRM
(c) Functions of HRM
(d) Significance of HRM
Compare what you gathered from the discussion with what you had learnt in the class. If
there are significant differences, can you explain why?
9
Chapter 2
Human Resource Department (HRD)
Objectives:
After studying this chapter & listening to the lecture successfully the student will be able to:
i. Define what HRD means.
ii. Understand why a separate HRD for an organization.
iii. Understand three different natures of HRD.
iv. Describe 5 bases for departmentalisation of HR function.
v. Understand the way of staffing HRD.
Definition
The department established for coordination of HRM functions in an organisation is HRD.
A manager called HR Manager or Personnel Manager heads it. It is a separate division under
the leadership of HR manager that facilitates proper functioning of the HRM functions
throughout the organisation. It is very important to organise the works of the HRD properly
and staff rightfully the HRD for efficient and effective HRM.
Why is a Separate HRD for an Organisation?

It is not indispensable for an organisation to establish a separate department for HRM.
There may be organisations, which do not have a HRD. Even though there may be
organisations without HRD it does not mean that HRM does not exist. HRM is an integral
part of management of any organisation. Employee-less organisations are impossible to
realise even in a growing high-tech economy. Successful performance of HRM functions has
to be done irrespective of that the organisation is a small one or a large one or a public one
or private one.
Separate department for HRM has to be established when the manager finds that HRM
functions seriously disrupt his/her other duties; when the manager does not have the
required competence to manage people at work; when HRM functions become more
complex and time-consuming; when the chief executive officer perceives that HRM can be
done better if there is a specialist in HRM; or when the organisation is commenced as a large
10
scale industry. To form a separate department the expected benefits of establishing a
separate department should exceed its costs. Ideally if the expected benefits will be greater
than the expected costs a separate department for HRM will be decided to be established.
Organisation of the Department

Organisation of the HRD may vary depending on the nature of the organisation, size, top
management philosophy, financial strength and profitability, geographical location etc. The
structure in a small organisation is quite different from that of a large organisation. In a large
organisation there is a hierarchy of jobs in the HRD. See the following three figures.
Figure 1: HRD in a Small Business Organisation
Owner
Manager
Operation Marketing
Manager Manager
Personnel
Administrator
Clerk Clerk
Figure 2: HRD in a Medium Size Business Organisation
General Manager
Production HR Marketing Finance

Manager Manager Manager Manager
HR Officer HR Officer (Employee

(Personnel Adm) 11 Relations)
Figure 3: HRD in a Large Business Organisation
AGM (HRM)
Manager Manager Manager Manager

(Planning (HRD) (Rewards) (Labour
& Staffing) Development) Relations)
HR Officer
HR Officer HR Officer (Safety &
(Performance (Training & Health, &
Appraisal) Development) Worker
Participation)
HR Officer HR Officer
HR Officer HR Officer HR Officer
(Planning) (Staffing)
(Wages (Incentives (Discipline,
and and Grievances
Salaries) Benefits) &
Counseling)
Organisational Bases
There are five bases for departmentalisation of HR function.
1. Field (according to the fields of HRM; see figure 4.)
2. Functional (according to the functions of HRM; see figure 5.)
3. Employee (see figure 6.)
4. Business/project (see figure 7.)
5. Mixed (see figure 8.)
Figure 4: Field Departmentalisation
DGM (HR)
HR Manager HR Manager HR Manager HR Manager

(Employee (HR (Rewards) (Labour
Resourcing) Development) Relations)
12
Figure 5: Functional Departmentalisation
DGM (HR)

(Job Analysis (Training & (Wages & (Safety & Health &
& HR Planning) Development) Salaries) Labour Relations)

(Recruitment & (Performance (Incentives and (Discipline &
Selection) Evaluation) Welfare Adm ) Grievance Adm)
Figure 6: Employee Departmentalisation
DGM (HR)

(Top & Middle (First Line (Technical (Clerical, Allied
Managers) Managers) Employees) & Operative)
Relations)
Figure 7: Business Departmentalisation
Group HR Manager

(A-Business) (B-Business) (C-Business) (D-Business)
13
Figure 8: Mixed Departmentalisation
Group HR Manager

(A-Business) (B-Business) (C-Business) (D-Business)

(Employee (HR (Rewards) (Labour
Resourcing) Development) Relations)
HR Officer HR Officer
(Managerial (Non-Managerial
Employees) Employees)
Activity 2.1: Discuss each figure.
The Role of HRD

As HRD exists to assist line managers (managers responsible for the operations of those
departments that make or distribute the organisation‟s products or service) it is a service
department.
Staffing the HRD

It is essential to procure and employ people who possess right knowledge, skills and
attitudes to perform successfully the jobs and positions of the HRD. How effectively an
organisation‟s human resources are managed depends in large part on the quality of the
people in the HRD (Schular and Youngblood, 1986).
Jobs in the HRD have been classified by Stone and Meltz (1993) as follows:
1. Support Jobs-typists, clerks, and receptionists.
14
2. Technical and professional jobs-functional specialists in such areas as labour relations,
compensation, and training.
3. Operating HR managers. A person in such a job- often called a HR generalist-handles
most or all of the HRM functions in a small organisation or in the plant of a larger firm.
4. HR executive positions. Persons in these posts are “generalist and administrators who
manage larger HRDs that include specialists, operating HR managers, and support staff.
They provide the linking-pin between top management and the HRD.
Some jobs in HRD are more specialised while others are more generalised. Thus, basically
there are two types of HR managers, i.e., HR Specialists (e.g. Reward Specialist, Job Analyst,
Labour Relations Specialist etc) and HR Generalists (e.g. Personnel Manager, Group HR
Manager, Factory HR Officer etc).
Activity 2.2: Differentiate between a HR Specialist and a HR Generalist.
To be a good HR Specialist, the person must have both right education (a Degree in HRM,
IR or Business Administration/Management specialising in HRM; preferably a Masters
Degree in HRM or a related field) and experience. To be a Good HR Generalist, the person
must be a Graduate (better if he is a Postgraduate) with several years of experience. Most
likely the right education for a HR Generalist includes a Degree in HRM/IR and a
Postgraduate Diploma/Masters in Management/Business Administration or a Degree in
Business Administration/Management and a Postgraduate Diploma/Masters in HRM.
Activity 2.3: Discuss how several people in HRDs in Sri Lanka became so.
Self-Assignment 2.1: Select a HRD to which you have an access. Write a report how each
person got the employment in the HRD.
Critical Incident 2.1: The Birth of a HR Department
Case 2.1: Commencement
15
Chapter 3
Job Design (JD)
Objectives:
i. Define what JD means.
ii. Understand the significance of JD.
iii. Identify five techniques of JD.
iv. Understand elements of JD.
v. Understand the way of finding the balance between efficiency elements and
behavioural elements of JD.
Definition
The principal function that has to be performed by the organisation in order to achieve its
primary goal cannot be done by one individual because of lack of time/energy/competence
or all these. Consequently the principal function has to be divided into individual
assignments, i.e., jobs. Jobs are basic building blocks of the organisation. JD can be defined
as the function of arranging tasks, duties and responsibilities into an organisational unit of
work for the purpose of accomplishing a certain objective. This is a conscious effort as well
as a continuous activity.
An organisational unit of work is a job that is composed of three main components, i.e.,
tasks, duties and responsibilities. A task is a series of motions and is a distinct identifiable
small work activity. A duty is a series of tasks and is a larger work segment. Responsibility is
the obligation of performing the entrusted tasks and duties successfully.
Activity 3.1: Consider two jobs, which are familiar to you. Identify three duties and three
tasks of each duty.
Significance of JD
JD affects overall individual job performance. It has a direct impact on efficiency,
effectiveness, productivity, satisfaction, health and development of the employee.
16
Inappropriate JD results in lower productivity, higher employee turnover, many grievances,
many industrial conflicts and higher absenteeism etc.
Techniques of JD
1. Scientific Technique
A technique derived from scientific management. Basic objective of this technique is
to maximise the organisational productivity by maximising employee efficiency.
Acquiring a maximum output by reducing time, effort and expenditure required to
finish the task/duty as much as possible is emphasised. This results in a more
specialised job that has a shorter job cycle, which is the required time to complete
every duty in the job for once.
Activity 3.2: Consider a job in an assembly line and calculate job cycle. Compare it
with the job cycle of a job in a service industry.
2. Job Enlargement
Increasing the scope of a job by including a new related duty/duties in addition to
the current duties involved is job enlargement.
3. Job Enrichment
Increasing the depth of a job by expanding authority and responsibility for planning
and controlling the job is job enrichment.
4. Job Rotation
Job rotation is shifting an employee from one particular job to another without
limiting the employee to do only a particular job.
5. Professional Technique
Designing job according to a certain accepted profession is professional technique.
6. Group Technique
Job is designed so that a group of individuals can perform it. Result is a collective job
rather than an individual job.
Elements of JD
There are two categories of elements as follows:
1. Efficiency elements, which include division of labour, standardisation and

specialisation.
17
2. Behavioural elements, which include skill variety, task identity, task significance,
autonomy and feedback.
Division of Labour: Breaking jobs into their smallest component parts and employing
separate/different persons to do each part separately.
Standardisation: The “one best way” to do a certain job/task/duty with a more simplicity
and at a lower cost is discovered through work study (basically method study and work
measurement) and then, having accepted it every person follows.
Specialisation: An employee‟s concentration on one particular type of work so that the
employee acquires an expertise in that type of work.
Skill Variety: The extent to which the job requires use of different skills.
Task Identity: The extent to which the job involves doing some complete piece of work.
Task Significance: The extent to which the job has an impact on other people‟s work.
Autonomy: The degree of independence and freedom the job holder has.
Feedback: The extent to which clear information of results in respect of individual
efficiency and effectiveness is provided.
Trade Off Between Efficiency and Behavioural Elements

Efficiency elements of JD point to greater specialisation, less variety, less task identity, low
task significance and minimum autonomy while behavioural elements of JD stress to add
more variety, more task identity, high task significance, more autonomy and more feedback.
Thus, it is more likely that making the job more efficient causes it to be less satisfying.
Conversely, making the job more satisfying by focusing on employee needs more likely
proves to be inefficient.
What should HRM specialist do?
There is no simple clear-cut solution. There should be a trade-off between efficiency
elements and behavioural elements.
Activity 3.3: Discuss the relationship between productivity and specialisation and explain
why?
Select any job familiar to you. Write a report about how it has been designed and why.
Critical Incident 3.1:
Hard Work
18
Chapter 4
Job Analysis (JA)
Objectives:
i. Define what JA means.
ii. Understand the significance of JA.
iii. Explain the six steps of JA process.
iv. Understand advantages and disadvantages of methods of JA data collection.
v. Distinguish between Job Description and Job Specification and indicate main
features involved.
Definition
JA is a primary function of HRM as it produces a set of information that is essential for
successful performance of many other HRM functions. JA is a systematic investigation of
jobs and jobholder characteristics in order to create a collection of information that can be
used to perform various HRM activities/functions. It involves collecting, evaluating,
organising and recording information regarding jobs within the organisation.
JA is an ongoing activity to be performed by professionals. In large organisations HRM
specialists called job analysts may do JA. In a medium size organisation HR manager does it
generally. JA is done about each job but not about every position.
Activity 4.1: Discuss the difference between JOB and POSITION.
Activity 4.2: Discuss what is meant by the term POST.
Importance
JA is a HRM function that has potential for serving the informational needs of a wide range
of HRM functions. Uses of JA are:
1. HR planning (in determining replacements)
2. Recruitment (in specifying what types of employees to recruit, in determining
attractive pay packages for a particular job and in composing advertisements for job
vacancies)
3. Selection (in providing standards for testing qualifications of applicants)
4. Orientation (in introducing new employee to the job)
19
5. Training and Development (in identifying objectives and in determining the contents
of training)
6. Performance Evaluation (in establishing clear-cut criteria)
7. Reward Mgt (in conducting job evaluation)
8. Job Design (in structuring and modifying tasks and duties of specific jobs)
9. Health and Safety Administration (in identifying hazards)
10. Labour Relations (in bargaining with unions)
Process of JA
JA can be viewed as a process that involves a series of steps to be performed. Following
figure depicts the process:
1. Familiarise with nature & type of work of

the organisation
2. Identify and select job/s to be analysed
3. Develop a JA Information Format
4. Collect information/data
5. Apply JA information/data
6. Evaluate JA process
Feedback
20
Methods of JA Data Collection
1. Observation: observes directly the incumbent performing the job and takes notes to
describe tasks, duties and behaviours being performed. Advantages include: a deeper
understanding of the job can be obtained; help confirm data obtained from other
methods or remove doubts; working conditions and hazards can be better
understood when observed personally by the analyst. Disadvantages include: may
interfere with normal operations; not appropriate for the jobs without complete and
easily-observed job cycles; possibility of missing irregularly occurring activities; and
mental activities of jobs are impossible to observe.
2. Participation: does actually performance of the job himself/herself. Advantages
include: first-hand information; and fairly good for simple jobs which can be easily
learned. Disadvantages include: may be dangerous for hazardous jobs (e.g., fire-
fighters, patrol officers) or unethical/illegal for jobs requiring licensing or extensive
training; and impossible to use for complex jobs demanding an advanced education.
3. Questionnaire: includes open-ended questions and closed-ended questions.
Advantages include: possible to collect data on a large number of jobs in a relatively
short period of time; fast and less costly; and a greater deal of information can be
obtained within a shorter time. Disadvantages: lesser accuracy due to misunderstood
questions, incomplete responses, and unreturned questionnaires; and developing,
coding and analysing the questionnaire are time-consuming and are a labourious
process.
4. Employee Log (Diary): requires the job incumbent to describe and record tasks,
duties etc. in a log on a daily basis. Advantages: can provide quite accurate
information if entries are made over the entire job cycle; and is very useful, perhaps
only feasible method for analysing complex jobs. Disadvantages: most employees
may not be disciplined enough to keep such a diary or record all activities in the job
cycle; and managers and workers often see EL as a nuisance and resist its
introduction. After the novelty wears off, accuracy may decline as entries become
infrequent (Werther and Davis, 1989).
5. Interviews: with job incumbents, superiors, subordinates, clients or other
knowledgeable people. Advantages: permits the analyst to explain unclear questions
21
and probe into uncertain answers; serves as an opportunity to explain the interviewee
about the purpose of job analysis and its uses; information of irregularly performed
and mental activities can be gathered; and can provide in-depth data. Disadvantages:
very costly and time-consuming; and if the interviewee is suspicious about the
purpose of JA, he/she may distort the information.
6. Jury of Experts (Technical Conference): information is collected from a panel of
experts. Advantages: brings together a large pool of knowledge/experience relevant
to a particular job in one place at one time; most appropriate for jobs which are
difficult to define; the interaction of the members during the conference can add
insight and detail; and allows participants to clarify expected duties and
responsibilities. Disadvantages: is expensive due to the number of people involved;
and the experts may give responses based upon their past experience without
considering current changes.
Job Description and Job Specification
JA information is put into such usable forms as job descriptions and job specifications.
Distinction between the two is as follows:
Job Description Job Specification
1. Explains tasks, duties, responsibilities, working 1. Specifies the key qualifications an individual
conditions and other aspects of a specified job. needs to perform the job efficiently and
effectively.
2. Describes the job. 2. Describes the person ideally needed to
perform the job.
3. A profile of the job characteristics. 3. A profile of the human characteristics needed
for successful performance of the job.
4. Contains * Purpose of the job * Duties * 4. Contains * Required abilities *Education
Working conditions etc. *Experience *Training *Special mental &
physical skills
Activity 4.3: Discuss the uses of job descriptions and job specifications.
Self-Assignment:
Select any job familiar to you. Write a job description and a job specification.
Case: Reluctant Receptionist
22
Chapter 5
Human Resource Planning (HRP)
Objectives:
i. Define what HRP means.
ii. Explain why HRP is important for an organisation.
iii. Figure out the HRP process.
iv. Describe nine causes of future HR demand.
v. Detail estimating HR supply.
vi. Give strategies in shortage/surplus conditions of HR.
Definition
HRP is the process of determining future employee needs and deciding steps or strategies to
achieve those needs for the purpose of accomplishing organisation goals and objectives. It is
a HRM function that focuses on providing the organisation with an adequate manpower in
order to achieve goals/objectives of the organisation. Main objective of HRP is to prepare
the organisation to acquire the more appropriate (if not the most) employees on the more
appropriate jobs at the more appropriate times so that overall organisational goals are
attained.
Importance
By HRP an organisation is able to achieve the following purposes (these can also be
considered as reasons for HRP):
1. To determine future employee needs.
2. To utilise HR more efficiently and effectively.
3. To control employee cost.
4. To develop high talent employees.
5. To formulate and implement strategic plans.
23
HRP Process
This is shown in the following figure:
1. Forecast future demand for HR.
2. Estimate HR supply.
3. Compare forecast demand with estimated

supply.
4. Develop strategies to be taken.
5. Assess HRP effort.
Feedback
Forecasting Demand for HR (FDHR)
FDHR involves estimating the types and quantities/numbers of employee needs for future.
Here following factors affecting future demand have to be considered:
1. Demand for the product
2. Goals and strategic plans of the organisation
3. Production methods
4. Retirements
5. Resignations
6. Deaths
7. Leaves of absence
8. Termination
9. External factors such as economic (e.g. inflation, interest rate etc), social, and political
etc.
24
Activity 5.1: Discuss how the above factors affect the future demand for HR.
Demand forecasting for HR means estimating future impact of factors affecting HR demand
as much accurate as possible and determining employees needed by the organisation for the
relevant period of time. Forecasting involves use of past and current information in order to
identify future expected conditions of demand factors for a particular period of time.
Techniques of forecasting are below:
1. Informal Forecast
2. Formal Expert Survey
3. Delphi Method
4. Unit Forecasting
5. Extrapolation
6. Indexation
Activity 5.2: Discuss the meaning, major advantage and major disadvantage of each of the
above techniques.
Forecasting translates the factors of demand into short-term and long-term statements of
employee needs. Short-term needs are more specific compared with long-term needs. Short-
term needs can be reported as a table what is called staffing (Manning) table. The table lists
the future vacancies for each type of jobs considered.
Activity 5.3: Construct a hypothetical staffing table.
Estimating HR Supply
There are two sources of supply: internal and external. The internal supply consists of
current employees who can be promoted, transferred, or demoted to meet forecast needs.
People in the labour market who are not employed in the organisation considered include
under external supply. They are both employees of the other organisations and those who
are seeking jobs to be employed. Estimating HR supply involves making internal supply
estimates. This has two sub steps.
25
1. Auditing current HR
This means assessing characteristics of current work force. HR audit summarises
each employee‟s competency (knowledge, skills and abilities). The audits result in
skills inventories and management inventories which catalogue competencies of
employees. This enables the planner to have a comprehensive understanding in
respect of the capabilities available in the current work force of the organisation.
Activity 5.4: Discuss the difference between Skills Inventory and Management Inventory.
2. Identify and arrange possible replacements (succession planning)

Through the audit planner receives information, which enables him/her to assign
specific employees to fill future vacancies. These tentative assignments can be
recorded on replacement charts. As replacement charts contain very limited
information replacement summaries can be developed.
Activity 5.5: Construct a hypothetical Replacement Chart.
Compare Forecast Demand with Estimated Supply

This step involves determining net employee requirements and identifying shortages and
surpluses of HR.
Activity 5.6: Construct a hypothetical Net Employee Requirements Table.
Develop Strategies
Strategies in surplus conditions:
a. Hiring freeze
b. Attrition (Voluntary departures)
c. Encouragement of leaves of absence
d. Early retirement on voluntary basis
e. Reduction of reward expenditure
f. Lay off
g. Formal outplacement facilities
h. Termination
26
Strategies in shortage conditions:
 Have current employees work overtime.
 Sub contract work to other firms.
 Provide opportunities for learners for a period of time.
 Hire part-time employees.
 Hire casual employees.
 Hire temporary employees.
 Hire permanent full-time employees.
 Capital substitution
Self-Assignment: Select any organisation or a division/section of an organisation accessible

to you. Do a HRP and prepare a report based on what you have planned.
Case: X Development and Administration Department
27
Chapter 6
Recruitment (R)
Objectives:
i. Define what Recruitment (R) means.
ii. Explain the significance of R.
iii. Detail R process.
iv. Differentiate between internal R policy and external R policy and point out
major advantages and disadvantages.
v. Understand various methods of R.
Definition
R is the process of finding and attracting suitably qualified people to apply for employment.
R is that set of activities an enterprise uses to attract job candidates who have the abilities
and attitudes needed to help the enterprise achieve its objectives (Glueck, 1978). It is the
process of generating a pool of qualified applicants for organizational jobs (Mathis and
Jackson, 1988). R results in creation of a pool of job seekers from which persons are
selected.
Often the responsibility of performing the R function goes to HR Department of an
organization. A very large organization continuously recruits applicants for job vacancies and
therefore, there may be a separate HR specialist called Recruiter or Recruitment specialist.
Importance
The quality of HR in an organization depends on the quality of job applicants attracted. R
relates to a set of HRM activities such as human power planning, job analysis, selection and
rewards management. The following figure depicts R and related HRM functions.
28
HRP
Determining needed
type and number of
employees
Selection
Job Analysis Determining the most
Recruitment
Providing JD and JS appropriate person to
fill the vacancy
Reward
Management
Deciding competitive
salaries/wages,
incentives and benefits
used to attract job
applicants
29
Process
A model of R process is given in the below figure.
1. Identify job vacancies

(From HRP and Specific requests made by managers)
2. Ascertain job requirements

(From job analysis information and manager’s comments)
3. Consider factors affecting R

(Organizational policies, cost, time and others)
4. Prepare job application

(Standard one or self-prepared)
5. Select the method (s) of R

(Internal or external)
6. Implementation
(Individuals apply and their applications are received)
7. Evaluation of R effort
30
Internal R Policy
It refers to procuring candidates to fill vacancies within the organization itself.
Advantages:
1. Creates employee (current) morale.
2. Possible to attract people who expect career development.
3. Possible to retain current appropriate employees.
4. Motivates employees.
5. Cheaper/lesser cost.
6. Encourages sound labour-management relations.
7. Lesser orientation time or no need of induction.
Disadvantages:
1. Prevents from flowing inside of new knowledge and skills.
2. No opportunity of having the most appropriate man from a large number of recruits.
3. Avoids NEW BLOOD. Retains OLD BLOOD. Inbreeding (practice that juniors
follow the same things done by seniors) occurs.
4. Higher cost in procuring/training a professional.
Activity 6.1: Discuss the advantages and disadvantages of External R policy.
Methods of R
It is essential to know where to recruit in order to find out suitably qualified applicants.
1. Internal
1.1 Job Posting and Bidding
1.2 Skills Inventories
1.3 Intranet
1.4 Succession Plans
1.5 Employee Referrals (internal)
31
2. External
2.1 Employee Referrals
2.2 Pre-applicants (walk-ins and write-ins)
2.3 Past Employees
2.4 Educational Institutions
2.5 Universities
2.6 Employment Agencies (private and public)
2.7 Advertising
2.8 Employee Organizations/Trade Unions
2.9 Executive Search Firms
2.10 Professional Associations
2.11 Job/Career Fairs
2.12 Internet Job-Posting Sites
2.13 Alumni Associations
Activity 6.2: Discuss at least two advantages and disadvantages of each method of R.
Self-Assignments 6.1:
1. Find out a job application form of a leading organization in any industry. Study the
elements involved in the form.
2. Take a Sunday Observer paper issued for a certain date and study the recruitment
advertisements therein.
(a) Classify the advertisements according to Open and Blind Ads.
(b) For what types of employees were advertisements?
(c) What are the elements involved in each advertisement?
(d) What are the elements not commonly involved in each advertisement?
(e) What reason or reasons do you think for the appearance of Blind Ads?
32
Chapter 7
Selection (S)
Objectives:
After studying this chapter& listening to the lecture successfully the student will be able to:
i. Define what S means.
ii. Explain the significance of S.
iii. Understand three objectives of S.
iv. Describe main methods of S.
v. Understand a typical S process.
Definition
S is the process of making the choice of the most appropriate person from the pool of
applicants recruited to fill the relevant job vacancy. Determining applicants who have the
highest capability to produce the desired job performance occurs in S. S involves the use of
one or more methods to assess candidates in order to make a decision as to their suitability
to perform duties and responsibilities of the jobs successfully.
Objectives of S
The personnel/HRM specialist tries to achieve in the S process following objectives:
1. To get the right person for the right job.
2. To establish or maintain an image as a good employer.
3. To perform the S process as cost-effective as possible.
Importance
S function has direct effect on the quality of HR available in the organization. The inefficient
and ineffective S results in deterioration of quality of HR and ultimately impairs
organizational success. Examining the objectives of S shows the importance of S. Apart
from them, unfavourable consequences of a wrong S decision are as follows:
1. Expected job performance does not occur as long as the wrong employee is within
the organization.
33
2. Loss of appropriate/expected contribution that could have been acquired by
selecting the right person.
3. Cost incurred for induction and training of the wrong employee will go in vain.
4. Possibility of occurrence of losses and costs.
5. Cost of grievance handling arising from an elimination decision.
6. Additional cost in procuring a new right employee.
7. Possibility of harming thoughts of some existing employees.
S Methods
1. Application Evaluation: assessing the applicant‟s suitability using the information
given in the application form sent by him/her. This is not a very popular method in
Sri Lanka though it is a good method of S. More objective form of application
evaluation is weighted application blank that is an application form in which weights
or scores are assigned to different answers given by applicants with regard to each
question or information required. Major advantages are: it is easy to compare job
candidates‟ qualifications and other requirements; it is a quick way of checking
whether applicants possess minimum requirements; it is a good method of assessing
legibility of writing, organisation of information etc.; and it serves as a guideline in a
subsequent interview, and for preparing personal files. Major disadvantages are:
criteria such as verbal ability, visible interest, visible health, appearance, fluency of a
language etc cannot be measured; and it is a difficult task to prepare a good
application form that asks right questions and evaluates responses objectively.
2. Interviews: most popular method in Sri Lanka and in other countries as well. S
interview is a face-to-face, oral and observational evaluation method of appraising an
applicant‟s acceptability with regard to a certain job (Opatha, 1994). Major
advantages are: it gives the interviewer with an opportunity to evaluate the candidate
in terms of self-presentation, verbal abilities, manners and sociability; it can fill
information gaps and enable to clarify questionable responses; it can be adapted to
various types of employees; it allows a two-way communication; it is less costly for
many organisations which do not follow elaborate selection procedure; and
interviewers‟ human judgment based on experience and knowledge can be utilised.
34
Major disadvantages are: possibility of occurrence of interviewer errors such as Halo
Effect, Personal Prejudices, Overemphasis on One Criterion, Pseudo-Scientific
Premises, Leading Questions and Interviewer Domination; it may not be possible to
get a real picture of the candidate due to lack of rapport; and several errors may
occur with the interviewee such as purposeful distorting answers, social desirable
behaviour, taking too much, not listening and boasting (Opatha, 1994).
Activity 7.1: Discuss the interviewer errors with examples.
Activity 7.2: Discuss errors that may arise with the interviewees with examples.
3. Tests: relatively a popular method for selecting applicants to the Government

Sector. There are different types of tests such as knowledge tests, aptitude tests,
practical tests, proficiency tests, interest tests and psychological tests. Major
advantages are: possibility of getting a large amount of information about candidates
within a shorter time and at a lower cost; possibility of assessing a large number of
candidates within a shorter time and thus, less cost; possibility to discriminate
candidates who have similar competencies; more objectivity; and abilities such as
reasoning, problem solving, conceptualising etc can be measured more accurately.
Major disadvantages are: not economical for a small number of candidates; and some
abilities such as verbal communication ability, practical performance on the job and
self-presentation are not possible to examine.
4. Background Investigations: assessing employment, finance, character and

academic histories of applicants. Major advantages are: possibility of knowing history
of the candidates; and assessing honesty of candidates. Major disadvantage is less
reliability, as it is difficult to persuade a referee to give a frank opinion.
5. Medical Tests: assessing whether the applicants are physically fit for the job or not.
Major advantages are: safeguarding the health of current employees of the
organisation through the detection of contagious/communicable diseases; serving
the organisation to protect against damages to properties and unnecessary medical
and insurance claims and compensation; and providing data about a candidate as a
basis for future health guidance. Major disadvantage is higher cost of conducting
medical tests.
35
6. Assessment Centre: is a programme lasting for one or several days and using
multiple methods of S and multiple assessors to determine the suitability of
candidates for particular job vacancies. Focus is on behaviour mainly and results are
fed back to candidates, with comments for improvement. Studies show that
assessment centre has the highest degree of validity compared with other S methods.
Major disadvantage is the higher cost involved.
A Typical S Process
A typical S process is given in the below figure.
R Medical
Test
E
J Background
E Investigation
C
Interview
T
I
Employment
O Test
N
Application
Evaluation
Activity 7.3: Critically evaluate the above S process.

Self-Assignment 7.1
Take a Sunday Observer paper issued for a certain date and study the recruitment
advertisements therein.
(f) Identify S practices of the organisations.
(g) Differentiate S practices according to type of industry (service or non-
service), size and ownership.
Critical Incident 7.1: Super Management Trainee
Critical Incident 7.2: The Employment Interview
Skill Building Application 7.1: Selecting a Management Trainee (HRM
36
Chapter 8
Hiring (H) and Induction (I)
Objectives:
i. Define what H means.
ii. Understand the process of H.
iii. Describe importance of Probationary Period.
iv. Define what I means.
v. Understand the importance of I
vi. Detail the process of I
vii. Understand what is meant by Buddy system.
Definition of H
H is the process of appointing the candidate selected to the post/job which is vacant.
Generally the authority of obtaining and appointing new employees is vested in top
management of the organisation. This authority at the hand of top management is exercised
directly with regard to senior managers. The authority of hiring non-managerial and junior
managers may be delegated to line middle managers and/or human resource manager.
H Process
Following figure depicts a model of H process:
Prepare appointment letter
Notification
Follow-up
Rejection Acceptance
Appoint from the waiting Enter the contract of

list employment
37
Activity 8.1: Discuss the each step of the above process.
Probationary Period
Probationary period is a certain period of time during which a new employee, who was hired
for a permanent post, works for an organisation. During this period the new employee will
have to prove that he/she is capable of performing duties of the job successfully. As a result
he/she will be confirmed on the job. Until confirmation, a new employee who is on
probation is not legally a permanent employee. The period may be anything between three
months and one year or even longer. At any time during the probationary period and up to
the end of the period, the employment can be terminated by either the employer or the
employee or both at short notice without any further obligation on either party.
Definition of I
I is the HRM function that systematically and formally introduces the new employee to the
organisation, the job, the work group to which the new comer will belong and the work
environment where the new comer will work. As I familiarises new employee with the work
and general organisational environment it is some form of training. I can be divided into two
categories basically: General I (introducing the new employee to the organisational setting)
and Special I (introducing the new employee to the job and job environment).
Importance of I
It is expected that I will help the new employee face Cultural Shock and Real Shock (a
strong feeling of distress due to the incompatibility between what the new employee expects
in his/her new job and the reality he/she is confronted with) successfully. Also it will
facilitate the socialisation of the new employee. Following objectives are also be expected to
achieve through I:
1. To build confidence about self and the organisation within the new employee so that
he/she will become a productive employee.
2. To create the feeling of belonginess and loyalty within the new employee.
3. To familiarise the new employee with the job and the job environment within a
shorter time.
38
4. To generate favourable attitudes within the new employee about peers, superiors and
the organisation in general.
5. To assist the new employee to contribute to organisational success more quickly.
I Process
I process is shown in the following figure:
Preparation Conduct Follow-up &

Evaluation
Preparation is essential to get accurate and clear answers for the following questions:
1. About what information should a basic understanding be given? (Nature of the
organisation, organisational policies, procedures and rules, employee rewards, job-
related information etc.)
2. Who should give the information? (General I by HR manager and/or general
manager and/or managing director and specific I by the relevant immediate superior
and/or immediate superior‟s superior)
3. How to give the information? (Through employee handbooks, video films, lectures,
bulletins, booklets etc)
4. Within what period should information be given? (One hour or few hours or one
day or week etc. depending on nature of the organisation, nature of the job, time of
management etc.)
Conduct has to be done to make I programme in action. Supervision is important aspect

with regard to proper conduct. Follow-up is important to check to see whether I programme
is being implemented as planned. Evaluation needs to be done to assess the degree of
success of the I programme implemented.
Activity 8.2: Discuss specifically about types of information to be given during I.
39
Buddy System
This is an I method that gets the service of an old employee, who is currently working for
the organisation, to assist the new employee to get familiarised with the job, job
environment, and general organisational environment. This method has advantages as well as
disadvantages.
Activity 8.3: Discuss the advantages and disadvantages of the Buddy system.
Critical Incident 8.1: Orientation at Warehousing of North America, Inc.
40
Chapter 9
Performance Evaluation (PE)
Objectives:
i. Define what PE means.
ii. Understand the purposes of PE.
iii. Know the overview of the process of PE.
iv. Differentiate objective criteria and subjective criteria.
v. Understand PE standards.
vi. Describe some commonly used methods of PE.
vii. Discuss evaluator biases in PE.
Definition
A management theorist, Glueck (1979) defines PE as the personnel activity by means of
which the enterprise determines the extent to which the employee is performing the job
effectively. According to this definition performance evaluation is a personnel activity
because it examines levels of performance of employees working in the organization. As
such this definition deals with only how well employees are performing in their functions as
expected by the organization this definition confines clearly to employer‟s (or his agent‟s)
perception.
Schuler and Youngblood (1986) analysing Effective Personnel Management define
performance appraisal as a system of measuring, evaluating, and influencing an employee‟s
job related attributes, behaviours and outcomes, and level of absenteeism to discover at what
level the employee is presently performing on the job. According to the definition given by
Schuler et al., PE is a system that deals with controls to influence outcomes of the
employee‟s job performance. Here the term „performance appraisal‟ has been used instead of
the name „performance evaluation‟.
Werther and Davis (1985) define PE as a process by which organizations evaluate employee
job performance. Considering these three definitions, PE could be described as a process, a
system and a personnel activity.
41
PE is a systematic process by which the organization determines the degree to which the
employee is performing the job in relation to the set norms and standards for a particular
period of time and identifies the employee potential for development.
Purposes
These purposes can be grouped into two categories.
1. Administrative Purposes
This category means that PE provides a set of information needed to perform successfully
many functions leading to management of employees. These purposes are mentioned below:
(a) Human power planning
One of the steps of human power planning is to estimate HR supply. Estimating HR supply
involves auditing current HR, which means assessing characteristics of current employees so
as to develop skill inventories and management inventories which catalogs competences of
each existing employee. To develop these inventories PE information is needed.
(b) Reward management
PE information is essential to make rewards (wages, salaries, incentives etc.) decisions.
Examples of some concerns are:
1. Should pay increments be paid to employees at the end of a certain period or not?
2. If increments are to be paid, how much should be paid?
3. Should performance incentives be paid?
(c) Management of promotions
Generally promotions are given on the criteria of seniority and competency. Competency
refers to the degrees of efficiency and effectiveness of the employee. PE identifies and
measures the degree of competencies of employees.
(d) Administration of transfers
There may be employees who cannot perform tasks, duties and responsibilities of the
current job successfully and also there may be employees who can perform better another
jobs rather than current jobs. PE information will be helpful to identify and solve these
problems (through right transfers).
42
(e) Discipline administration
When an employee violates a certain rule he/she should be punished through a disciplinary
action fundamentally. When determining the degree of severity of disciplinary action PE
information may be useful.
(f) Selection
Several methods of selection are used when selecting applicants to fill job vacancies. For
effective and efficient selection, the methods used in selecting people should be validated
and for validation purpose it is necessary to evaluate how well employees are performing the
jobs.
(g) Hiring
Generally when an employee is hired for a permanent job he or she has to spend a certain
period of time what is called probationary period which may be anytime between three
months and one year or even longer (three years in Sri Lanka Government service.). There
are three basic decisions that will have to be taken regarding this period of any employee.
1. Extending the period for another point of time.
2. Terminating the period and giving the confirmation status.
3. Stopping the period and dismissing the probationary employee.
(h) Management of labour-management relationship
PE is an important factor that contributes to labour-management relationship significantly.
In view of Huber and Fuller (1998), PE often leads to conflict between managers and
workers. If PE has right attributes for fair and accurate evaluation it will minimise evaluator
errors, inadequate feedback, unfair promotions, lay-offs and transfers and inequitable and
inadequate distribution of rewards. Consequently grievances and conflicts are minimised and
it will enhance the relationship between labour (union and workers) and management.
The above-mentioned decisions are appropriately made through the use of PE information
of relevant employees. Also PE plays a significant role in deciding to hire a temporary/
casual employee into the permanent staff.
43
2. Development Purposes
PE is useful in the following ways for management development.
(a) Training
It is essential to identify needs of employees before developing a training programme. PE is
an effective source of identifying performance deficiencies of employees that are mostly
training needs of the employees.
(b) Success of training programmes

One way of determining the success of a training program is through an assessment of job
behaviour of an employee before and after the training. PE is used to assess employees‟ job
behaviour.
(c) Proper direction

It is possible for a superior to obtain information through PE, which is useful for guiding
and advising subordinates. The superior will be able to give specific and relevant feedback to
the subordinates in order to develop them.
(d) Better productivity

PE increases mutuality between each subordinate and superior. It generates and encourages
favourable superior-subordinate relations. Proper PE reduces employees‟ anxiety, as they
know how they are performing. When systematic, regular and corrective feedback on
performance is given to employees their productivity enhances. Objective and fair PE help
motivation of employees toward increased individual performances and potential
advancement in the organization. All these contribute to better productivity of an
organization.
44
Figure -1 Contribution of PE to HRM Functions
Human Power Planning
Selection
Hiring
Training
Performance Promotions
Evaluation
Reward Management
Transfers
Discipline Administration
45
Overview of the Process of PE
PE can be viewed as a process. A process is a series of activities leading to the
accomplishment of objectives (Hitt et al., 1979, p.10). Based on Hitt‟s definition of process,
process of PE can be defined as a series of definite activities leading to the accomplishment
of the goal of successful operation of PE. PE process denotes an answer for the issue of
how to do PE in an organization. See figure 2, which gives a model of process of PE
developed by the author. The process involves ten steps, which are of course interrelated.
Step 1
Establishing objectives of PE is the first step of the process of PE. Hitt et al. (1979) define
an objective as a desired future result that an organization wants to achieve. Objectives are
favourable targets to be achieved in future. The organization should establish targets. The
organization being concerned should establish targets expected to be achieved through the
act of evaluating employees‟ job performance. Objectives are an integral part of any PE
programme. Many purposes of PE were discussed in the last chapter. Based on those
purposes of PE it is possible to establish objectives. Always objectives should be clear,
understandable and attainable. Some examples of PE objectives are:
i. To ascertain the current level of job performance of each employee.

ii. To ascertain strengths and weaknesses of employees.
iii. To identify training needs of each employee so as to improve each employee‟s
job performance.
iv. To ascertain potential performance and development needs so as to develop
the employee for promotions.
v. To provide a fair and objective rationale in order to reward employees.
46
Figure 2 Process of PE
1. Establish objectives of PE
2. Formulate policies of PE
3. Establish criteria and standards of PE
4. Select method (s) of PE
5. Design evaluation form and procedure
6. Train evaluators
7. Appraise
8. Discuss PE results
9. Make decisions and store
10. Review and Renewal
Step 2
Step 2 involves formulating policies of PE. Solutions for some issues by means of
formulating well-defined policies have to be decided. Important issues for which policies
should be formulated (Glueck, 1979) are:
47
 Whose performance should be evaluated?
 When should PE be done?
 How often should PE be done?
 Who should do PE?
Step 3
Establishing PE criteria and standards is the third step of the process. Specific criteria and
standards to be used in judging employee performance have to be identified, selected and
established. Without criteria and standards no systematic and fair evaluation can be done.
Criteria refer to factors that are used to evaluate job performance of employees for a certain
period of time. Quality of work, quantity of work, co-operation and initiative are examples
of criteria. Standards refer to rating scales.
Step 4
A method of evaluating employee job performance has to be selected. There are many
methods of PE available today. A decision has to be taken with respect of selecting a
method of PE by considering situational factors such as nature of job, purpose of evaluation,
cost involved etc..
Step 5
Design of PE form and procedure is the fifth step. Having selected a method of evaluation
designing PE form and procedure is a must. Hereby either a common form and procedure
for evaluating performance of all jobs or separate forms and procedures depending on the
nature of jobs and employees can be designed.
Step 6
This step includes training personnel who do evaluation of employee job performance in the
organization. Before implementing any PE programme, evaluators should be trained
adequately so that activities involved in actual evaluation can be performed successfully or in
the expected manner.
48
Step 7
The seventh step includes appraising. This is the step where the evaluation of job
performance of an employee is actually done by an evaluator. The evaluator is supposed to
evaluate the actual job performance of the employee in order to achieve established
objectives of PE in accordance with policies formulated, criteria established, method
selected, and form and procedure designed.
Step 8
This step involves discussing of evaluation results. Once an evaluation has been done, it is
necessary that the employee whose performance was evaluated receive feedback. The
evaluator through an interview called performance feedback interview should give this
feedback.
Step 9
Decisions should be taken by the respective authorities for various purposes for which PE is
done. For example, think that the PE is done to determine whether the employee should be
paid with the salary increment or not. Once the evaluation is done, payment or no payment
of the salary increment should be decided basing on the evaluation results. Completed PE
forms will become reference documents, which will be used in future for various purposes
such as manpower planning, promotions, rewards administration etc. These forms will have
to be filed in a proper way and should be kept on files for several years. Computers can also
be used in this regard.
Step 10
All the things involved in the above steps will contribute to development of a system what is
called employee performance evaluation system. Once a system is developed it cannot be
used forever. Jobs and duties and responsibilities of jobs may change owing to various
changes, which occur within the organization. For example, new duties may be added to the
current content of the job of an employee. Consequently PE methods, form, procedure, etc.
may have to be changed. So there may be a need for review and renewal of the PE system.
Also there is a need for finding out whether the system is being carried out in the way it was
planned and to determine whether improvements can be made for more successful system.
49
Criteria
The dimensions of performance upon which an employee is evaluated are called the criteria
of evaluation (Ivancevich, 1992). The factors on which an employee is evaluated are called
the criteria of the evaluation (Glueck, 1979). Thus, criteria should involve dimensions or
factors according to which employees‟ performances are evaluated. A PE criterion can be
defined as a measure or factor of identifying success of job performance.
PE criteria can be classified into two categories; objective criteria and subjective criteria.
1. Objective Criteria
Objective criteria are factors of evaluation that are quantifiable distinctly. For example the
number of units sold by a salesman is an objective criterion because it can be quantified
distinctly. Also objective criteria are verifiable by others. For instance, if two sales executives
evaluate a salesman‟s units sold each executive gets the same number of units sold. There
should not be variation between the two evaluations of the two sales executives (provided
that the two sales executives do the evaluations correctly.). The following exhibit gives some
examples of objective criteria for different jobs.
Exhibit 1 Examples of Objective Criteria

Job Criteria
1. University Lecturer Number of lectures done during the
academic year and number of topics
covered
2. Salesman Number of units sold and number of new
customers created.
3.Production Worker Number of units produced and number of
defects
4. Project Engineer Total cost of completing a project and
number of projects completed
4. Medical Expert Number of patients cured and number of
hours of consultation
50
In addition to criteria given in the above exhibit absenteeism, number of accidents and
tardiness are some examples of objective criteria.
2. Subjective Criteria
Subjective criteria are factors of evaluation that are not quantifiable distinctly. For example,
cooperation is a subjective criterion as it is not possible to quantify distinctly. By considering
indirect things such as number of conflicts occurred, number of willing favours given,
availability of opposition and so on, criterion of cooperation can be measured in some way
but not in very distinct way. Subjective criteria are not verifiable by others. For example, if
two sales executives evaluate a salesman‟s cooperation each executive may not get the same
rating (there may be variations between two evaluations of the executives). When evaluator
uses a subjective criterion he/she attributes a value based on his/her human judgment.
Usually evaluations on subjective criteria are the evaluator‟s personal opinions. Exhibit 6-5
gives some examples of subjective criteria for different jobs.
Exhibit 2 Examples of Subjective Criteria

Job Criteria
1. University Lecturer Sensitivity to student‟s needs and subject
knowledge
2.Salesman Cooperation and interpersonal relations
3.Production Worker Dependability and house keeping
4.Project Engineer Technical ability and originality
5.Medical Expert Pity towards patients and commitment to
work
It is not appropriate to use subjective criteria only for PE because they are more prone to
certain kinds of errors associated with evaluators (these errors will be explained in a later
chapter). Owing to these evaluator errors PE will be inaccurate. PE based on subjective
criteria is subjective rather than objective. Nevertheless, when using subjective criteria use of
some objective indicators as many as possible is appropriate. Assume that subjective
51
criterion of discipline is used. Such objective indicators as number of rules violations,
number of serious punishments and number of complaints can be used to make a more
objective evaluation with respect of the criterion of discipline.
Use of subjective criteria only may not be advisable. Tripathi (1997, p.186) notes:
“It should be remembered that although objective measures of performance are intuitively attractive, they often
suffer from several glaring weaknesses, the most serious of which are performance unreliability and
modification of performance by situational characteristics. For example, rupee volume of sales is influenced by
numerous factors beyond a particular sales person’s control- for example territory location, number of accounts
in the territory, nature of the competition, distances between accounts, price and quality of the product and so
forth.”
In addition to Tripathi‟s above analysis only objective criteria are not sufficient to achieve
many purposes of PE specially development purposes. To identify strengths and weaknesses
and to give feedback, subjective criteria are also significant to be considered.
Activity 9.1: Identify and mention five subjective criteria and five objective criteria those can
be used to evaluate performance of a University Lecturer.
PE Standards
It is essential to identify PE standards in order to assess how well and how far employees are
performing their jobs. By using standards, performance criteria take on a range of values
(Schuler and Youngblood, 1986). PE standards indicate rating scales. These scales should be
developed systematically and fairly. For example, following scale may be determined in
relation to the criterion of number of units sold (this is a common criterion in assessing job
performance of sales staff).
Excellent Units 81 -100

Good Units 61 -80
Average Units 41 -60
Poor Units 21 -40
Very poor Units 1 -20
52
Alternatively,
Outstanding 100 and over
Excellent 99-90
Very Good 89-80
Good 79-70
Satisfactory 69-60
Poor 59-50
Very Poor Below 50
Compared with first example of standards, the second example involves rating scale that is
more demanding or more difficult. If the number of units sold will become between 41 and
60 the performance will be considered as average in the first scale but average performance
will be between 69 and 60 in the second scale.
Some Methods of PE
Following table gives some methods of PE.
Graphic rating scale Rank order
Checklist Alternative ranking
Multiple choice Paired comparison
Self evaluation Forced distribution
Essay Point allocation rating
Critical incidents
Field review
MBO
BARS
BOS
Activity 9. 2: Discuss salient features of seven methods of PE.
53
Evaluator Biases/Errors
Among the most commonly cited evaluator errors are the following:
Halo Effect
When an evaluator appraises an employee high or low on many or all criteria because of one
criterion the error of halo effect occurs. For example, a production worker has never missed
a day of work in the year of evaluation. The production superior of that production worker
gives the worker excellent ratings on many or all other criteria of work, including quality and
quantity of work without really considering other criteria separately. To give a female
employee an excellent evaluation because she is very attractive would also be an example of
halo effect. Halo effect may work positively or negatively. An example of negative halo
effect is that, considering a subordinate to be very poor in co-operation, the superior goes on
to indicate that he or she is very poor in all or many areas.
Central Tendency
Central tendency refers to the tendency of the evaluator to rate averagely on many or all PE
criteria. If the evaluator is reluctant to give extreme ratings – either excellent or very poor,
the error of central tendency occurs. Consequently PE is distorted to make each evaluee or
many evaluees appear to be average. When there is a requirement that extremely high or low
ratings should be justified with clear documentation, this error often occurs.
Harshness and Leniency

The error of harshness occurs when the evaluator tends to be too hard in evaluating
performance. Hardly a harsh evaluator gives excellent ratings to his/her evaluees. The error
of tendency is just the opposite of harshness. It occurs from the evaluator who is too easy in
his/her evaluation of performance. Hardly lenient evaluator gives very poor ratings to
evaluees. When PE standards are ambiguous both errors may occur. If the evaluator is a very
highly qualified one the harshness error may happen.
54
Recency Effect
When the evaluator‟s ratings are heavily influenced by results and/or behaviours done
and/or exhibited by the evaluee near the end of the PE period, the error of recency effect
occurs. In other words, when an evaluee‟s job performance is rated solely on performance
occurred in the recent period of time irrespective of performance occurred over the entire
period of evaluation, the error of recency effect happens. This error is an understandable
evaluator error because recent performance is more likely remembered and performance that
may be several months old is more likely forgotten by the evaluator. Some employees may
attempt to take advantage of the recency effect by “apple polishing” their superior shortly
before an evaluation is to be completed (Mathis and Jackson, 1988).
Personal Prejudice
Generally every human being has prejudices of one sort or another. Excessively low or high
ratings are given only to a certain evaluee or certain evaluees because of race, age, sex,
religion, cast, personal relationship, jealousy and dislike.
Training the evaluator is a major attempt to control evaluator errors. Before implementation
of any PE program it is essential to train all the people who are supposed to work as
evaluators regarding the specifics of the PE programme including evaluator errors and their
control.
Critical Incident 9.1: Performance Evaluation at M Ltd

Case 9.1: Mr.Heenkendiriya
Skill Building Application 9.1: Writing PE Standards of Subjective Criteria
55
References
1. Glueck W. F.(1979), Foundations of Personnel , Business Publications Inc, Texas.

2. Hitt M A, Middlemist R D and Mathis R L (1979), Effective Management, West
Publishing Company, New York.
3. Huber, V.L. and Fuller, S.R. (1998). Performance Appraisal, The IEBM Handbook
of Human Resource Management, International Thomson Publishing Company,
London.
4. Ivacevich J.M. (1992), Human Resource Management 8th ed., IRWIN, Boston.
5. Mathis R. and Jackson J.H. (1998), PERSONNEL: Human Resource Management,
West Publishing Company, New York.
6. Opatha, H.H.D.N.P. (1994), Interview as a Method of Assessment”, Management
Review, USJ, Vol.1, No2 July-Dec, pp.53-60.
7. Opatha, H.H.D.N.P. (1995), Sewa Mandala Kalamanakaranaya (Personnel
Management), Author Publication, Colombo.
8. Opatha, H.H.D.N.P. (2002), Performance Evaluation of Human Resources, Author
Publication, Colombo.
9. Schuler R. S. and Youngblood S.A. (1986), Effective Personnel Management, 2nd ed,
West Publishing company, New York.
10. Tripathi, P.C. (1991), Personnel Management and Industrial Relations, Sultan Chand
and Sons, New Delhi.
11. Werther B.W. and Davis K. (1985), Human Resources and Personnel Management,
4th ed, McGraw-Hill book Company, New York.
56
Course Manual
On

Manual 2-Chapters 10 to 17

Nugegoda, Sri Lanka
i
COURSE DIRECTOR
COURSE COORDINATOR

Mr.C.C.Piyasena
ii
Contributors to Manual 2
Chapter Topic Author Editor

No.
10 Pay Management Senior Prof. H .H. D.
N .P. Opatha
11 Training & Development Dr.(Mrs). M.G.G. Senior Prof. H. H.
Tharanganie D. N. P. Opatha
12 Employee Movements Dr.(Mrs).G.D.N.Perera ,,
13 Management of Discipline Dr.(Mrs).T.L.Sajeevanie ,,
14 Occupational Health & Mrs.K.A.C.Chandrika ,,

Safety Administration
15 Employee Welfare Dr.N.W.K.D.K. ,,
Administration Dayarathna
16 Grievance Handling Mrs. C.K. Batagoda ,,
17 Management of Labour Senior Prof. H. H. D.

Relations N. P. Opatha
iii
Preface
This manual was specially prepared for the course-HRM 1340 Human
Resource Management that is offered by the Faculty of Management Studies
and Commerce in the year I: semester II of the common programme. Under
the course there are three study materials, i.e., Manual 1, Manual 2 and
Applications in Human Resource Management. This manual is part two and I
must stress that this is not a text book but only a guide to the undergraduates
to follow the course more effectively and efficiently. We believe in that these
materials will be very useful to our undergraduates.

Course Director
iv
CONTENTS
Chapters Page
Numbers
10. Pay Management 57
11. Training & Development 63
12. Employee Movement 73
13. Management of Discipline 76
14. Occupational Health & Safety Administration 80
15. Employee Welfare Administration 87
16. Grievance Handling 93
17. Management of Labour Relations 102
v
Course Lecturing Plan –2
HRM 2301 Human Resource Management
Session Topic
14 Pay Management I
15 Pay Management II
16 Training & Development I
17 Training & Development II
18 Employee Movement
19 Management of Discipline
20 Occupational Health & Safety Administration I
21 Employee Welfare Administration
22 Grievance Handling I
23 Grievance Handling II
24 Management of Labour Relations I
25 Management of Labour Relations II
26 Revision I (Manual 1)
27 Revision II (Manual2)
28 Feedback
vi
Chapter 10
Pay Management (PM)
Objectives:
After studying this chapter & listening to the lecture successfully the student will be able
to:
i. Define what PM means.
ii. Understand the significance of PM.
iii. Understand equity issue in PM.
iv. Explain factors affecting wages/salaries.
v. Understand the overview of PM.
vi. Define Job Evaluation.
vii. Identify four main methods of JE.
Definition
Pay Management is the HRM function that deals with development, implementation and
maintenance of a base pay system that adheres to external equity, internal equity and
absolute equity. It involves the aggregate of all the activities involved in developing,
implementing and maintaining a base pay system that is fair.
Pay is the basic reward an employee receives, usually a wage or a salary. Thus, pay may be
called wage or salary. Is there a difference between wage and salary? Theoretically yes but
practically the distinction is not important as many issues involved in wages and salaries
are the same. A wage is the basic reward paid to a non-managerial employee in exchange
for work he/she renders the organisation while a salary is the basic reward paid to a
managerial employee in exchange for work he/she renders the organisation.
Activity 10.1: Identify other differences between wages and salaries and prepare a table
showing a comparison.
Objectives of PM
Following objectives are expected to be achieved by PM:
1. To attract suitably qualified persons to the organisation.
2. To retain the most appropriate employees within the organisation.
57
3. To motivate employees.
4. To comply with legal requirements.
5. To ensure equity (internal equity, external equity and absolute equity).
6. To control employee cost.
Activity 10.2: Contemplate the objectives of HRM. How do you view the objectives of
PM?
Significance of PM
Understanding the objectives of PM makes you to understand the significance of PM. As
far as the nature of pay is concerned the employer sees it as an expenditure, and
therefore he/she attempts to reduce or at least control (or to give less if possible).
However, the employee sees the pay as an income, and therefore attempts to increase or
expects to get more. Consequently there is a greater tendency for the occurrence of
confrontations between the employer and the employee. It suggests that PM will have to
be done effectively in order to avoid a lot of conflicts, chaos and disputes. Lawler (1971)
as in Werther and Davis (1985) developed a model to explain the consequences of pay
dissatisfaction. Figure 10.1 indicates that model.
Equity Issue in PM
Basically there are two forms of equity, i.e., relative equity and absolute equity. Relative
equity has two types such as internal equity and external equity. Internal equity refers to
that pay should be related to the relative worth of jobs. Similar jobs get similar pay while
different jobs get different pay. (Equal pays for equal jobs. Unequal pays for unequal jobs
BUT the inequality of pays should be equal to the inequality of jobs.)
External equity refers to that to pay an employee at a rate equal to the wage/salary that
similar employees receive in other organisations. Wage/salary for a certain job is to be
equal to that of other similar jobs in other organisations.
Absolute equity is that the wage/salary should be enough to meet normal expenses of the
employee (at least to meet physiological and security needs).
Activity 10.3: Consider a certain job in an organisation and evaluate the degree to which
the pay given to that job complies with relative equity and absolute equity.
58
Factors Affecting Wages/Salaries
There are several factors, which affect in determining wages and salaries in an
organisation. These factors include:
(1) Government Legal Regulations (minimum wage requirements)
(2) Trade Unions
(3) Cost of Living
(4) Demand and Supply
(5) Productivity
(6) Financial Ability to pay
(7) Competitive Pays
(8) Others
Activity 10.4: Discuss how each factor affects the determination of wages/salaries in an
organisation.
PM Process
In general PM process is a complex phenomenon. The process of PM is depicted in the
following figure:
Job Evaluation
Pay Survey
Job Pricing
Adjustment of Individual
Pays
Monitor and Update the

Pay System
59
Job Evaluation
Job Evaluation (JE) is a systematic process of determining the relative worth of all the
jobs available within the organisation. The main purpose of JE is to ensure that the base
pay possesses an adequate degree of internal equity. To perform a successful JE it needs
a good expertise in PM and JE, and therefore JE has to be done relevant experts or a
committee that consists of experts in PM in specific and HRM in general. There are four
main methods of JE and they are:
1. Job Ranking Method: Jobs are ranked from the most important to the least
important as per general factors such as education needed, experience needed,
etc.
2. Job Grading/Classification Method: Jobs are analysed and grouped according
to predetermined classes and groups. Then classes/groups are arranged according
to the importance.
3. Point System: Jobs‟ relative worth is evaluated according to a systematic
quantitative procedure that takes into account several specific factors such as
competence, effort, responsibilities and working conditions. It has several steps
such as (1) determine critical factors and define them; (2) break critical factors
down into sub critical factors and define them; (3) determine levels of factors; (4)
determine a total point, allocate points to factors and sub factors; (4) allocate
points to levels; (6) develop the point manual; and evaluate each job.
4. Factor Comparison Method: A quantitative method that evaluates a set of
selected jobs (called base jobs) according to several factors, and evaluate other
jobs based on the evaluations of base jobs.
Above first and second methods are called qualitative methods of JE while third and
fourth methods are called quantitative methods of JE. The later methods are better than
the former methods.
Activity 10.5: Do the skill building applications numbered 5 and 6 appeared on page
145 of the study material Applications in HRM.
60
Job Evaluation Process
The process involves the following steps:
1. Appoint the JE committee.

2. Examine job analysis information.
3. Decide the method of JE.
4. Evaluate jobs.
5. Put jobs according to the order of importance.
Pay Survey
A pay survey is a type of research that deals with collection and analysis of pay
information in industry. The main purpose of the pay survey is to ensure external equity.
It is a way of collecting and analysing information about jobs and their pay for the
purpose of making comparisons between similar jobs in different organisations.
Steps of a pay survey are:
1. Determine jobs (key jobs).
2. Decide which information is needed.
3. Determine organisations for the survey.
4. Determine survey technique/s.
5. Conduct the survey.
6. Data analysis and presentation.
Activity 10.6: Discuss the each step of the process in brief.

Select any base pay system of an organisation accessible to you. Write a report how JE
has been done. If not, find and report why.
61
Performance
Strikes
Absenteeism
Desire for Grievances
More Pay
Search for a Turnover

higher paying
job
Psychological
Withdrawal
Pay Lower Job

Dissatisfaction Attractiveness Dissatisfaction Dispensary
of Job Visits
Absenteeism Poor Mental

Health
Source: Edward E. Lawler, 1971, as in Werther and Davis
62
Chapter 11
Training and Development
Objectives:
After studying this chapter & listening to the lecture successfully the students will be able
to:
i. Define what Training and Development means
ii. Explain the differences and similarities between training and development
iii. Describe the benefits on training and development
iv. Describe the each stage of training cycle
v. Discuss the learning process
vi. Understand what managerial obsolescence means
Introduction
Providing the organization with the most suitable human resources for the tasks and
environment is an on-going process. It involves not only the recruitment and selection,
but the training and development of employees-prior to employment, or at any time
during their employment, in order to help them meet the requirements of their current
and potential future jobs.
Before examining how training is initiated and then organized, it is useful to define what
is meant by training and then distinguish it from development.
Training is organized procedure by which people learn knowledge and skills for a definite
purpose.
(Dale. S. Beach, Personnel Management)
Training is a systematic process of altering the behavior, knowledge and motivation of

employees in a direction to increase organizational goal attainment.
(Glueck. F. William, A diagnosis approach to Personnel Management)
Management Development is a comprehensive long-term process by helping the

organization to grow the managers to meet its present and future needs. It improves
manager‟s performance, gives them development opportunities and provides for
management succession. As stated in the International Personnel Development
professional standards management development process may be anticipatory reactive
and motivational. The particular aims of management development are to:
63
- Ensure that managers understand that what is expected of them
- Identify managers with potential, encouraging them to prepare and implement
personal development plans and ensuring that they receive the required
development.
- Provide for management succession, creating a system to keep this under review.
Basic purposes / objectives and the process involved are similar in both programmes.
But following arguments can be used to distinguish the difference between training and
development.
1. Historically, training has been used to design the acquisition of technical oriented
skills by non-management personnel. Management development normally has
been associated with the methods and activities designed to enhanced skills of
managers. Therefore, management development activities tend to focus on a
broad range of skills, which have been arising on personality and maturity.
Whereas training focuses on a smaller number of technical skills for a definite
purpose. Therefore training is a short -term process while development is a long-
term process.
2. Training is an acquisition of new knowledge, skills, attitudes which permit

employees to perform their present jobs to the desired standards. It improves
human performance on the job the employees are presently doing or are being
hired to do. Development will be seen as any learning activity which is directed
towards future needs rather than present needs and concerned more with career
rather than immediate performance.
3. Training is a programme which is designed to give knowledge, skills and attitudes

to employees. Development is the progress occurred within the employee due to
the training.
In short distinction between training and development is as follows:
Training deals with Development deals with
Mechanical operation Conceptual and philosophical concepts
Short term Long term continuous process
Non managerial personnel Managerial personnel
Reactive process to meet current needs Proactive process to meet future needs
64
Training is closely linked to other human resource activities. For instance Human
resource planning identifies skill shortages. These shortages can either be filed through
staffing or through strengthening those skills in the present work force.
Activity 11.1 Discuss how training and Development relates to other HRM functions.
Benefits of Training and Development

Training and development are key activities for all organizations. Because, there are
numerous potential benefits to be gained by modern business and individuals from
systematic, well planned training and development programme.
Benefits of training and development to the Organization

1. Improve individual team and corporate performance.
A key motivational principle states that an individual performance is a function of
both ability and motivation.
Performance = f (Ability, Motivation).
Effects of training
Abilities Motivation performance
Training & Development
2. Provide and update employee's skills , knowledge etc…

Every business must change - customers changes; need change; Technology change;
circumstances change no business can remain static. Training is an essential method
which provides and updates employees skills, knowledge etc. in order to work more
effectively in such an environment.
3. Reduction of mistakes
4. Quality improvement
5 Less absenteeism
6. Lower Labor Turnover
7. Less Supervision Time
Benefits of Training and Development to the individual

Many of the items discussed under the heading of benefits to the organization apply also
to the individual. However, individual trainees can benefit in a number of ways from
effectively conducted training programs. For instance in relation to their current
65
positions, trainees may gain greater intrinsic or extrinsic job satisfaction. Intrinsic job
satisfaction may come from performing a task well and from being able to exercise a new
skill. Extrinsic job satisfaction may derive from extra earnings through improved job
performance and the enhancement of career and promotion prospects both within and
outside the organization to which they belong.
Further training can contribute to the organization achieving its objectives. It plays a
more long term strategic role either directly or indirectly. The direct role is pursued
through the nature of actual training content. Training can also affect an organizations
culture in a more indirect way through the management of individual and group training.
Finally training can help to create a learning organization' that is more flexible and
responsive in coping with present and future internal and external demands.
A Systematic Approach to Training

Atkins (1983) suggested a systematic approach to training can be interpreted as a logical
relationship between the sequential stages in the process of investigating training needs,
designing, conducting and evaluating training.
Training Cycle
The diagrammatic presentation of a systematic approach usually named as a training
cycle. A close study of such a model will show that it goes around four main stages which
are shown in their simplest form at figure 11.1.
Evaluating Investigating
Effectiveness Training needs
Of training
Conducting Designing
Training Training
Figure -11.1 A basic model of a systematic approach to training

66
Stage 1: Investigating Training Needs
A training need is any shortfall in employee performance or potential performance which
can be remedied by an appropriate training. It can also be thought of as the "gap"
between the requirements of the job and the actual current competence of the job
holder.
Required level of competence - present level of competence = T. need
Activity 11.2: Identify and discuss the causes for arising training needs.
Investigating needs properly is obviously a very important part of the training cycle. If it
is wrong the later stages of the training cycle will also be inappropriate. Usually line
managers, HRM Manager, training department, individual employees or combination of
above parties may be responsible for identifying training needs of the employees.
Training need identification can be conducted at three levels namely

Organizational level /Analysis
Occupational level / Analysis
Individual level / Analysis
Organizational analysis focuses on organizational wide performance criteria or company
wide needs and investigates the areas which are not running smoothly. For instance
productivity, quality, customers complaints, labor cost, value system etc.
At the occupational analysis the required level of competence can be determined by
analyzing job description and job specification.
Individual analysis focuses on individual employee training needs. Individual training
needs identification methods include performance evaluation, assessment centers,
observation, skill test, attitude surveys, interviews etc.
Activity 11.3 : According to your opinion, indicate the most suitable method to identify
the training needs of following categories of employees.
- Sewing girls in a garment factory.
- Management trainees in a manufacturing firm.
- Nurses in a private hospital
- Lecturers in a university.
67
Need analysis may reveal number of training needs and therefore prioritization must be
done. Then the training department manager or Human resource manager will have to
derive the training objectives from the training needs identified.
Training Objectives:
Training objectives are the statement of what a training is intended to achieve. Training
objectives should be
Specific
Measurable
Achievable
Relevant
Well written objectives will benefit training in at least three ways.
- clarify what is to be expected from both trainee and trainer.
- help to determine suitable training method
- provide a basis for evaluating the programme.
Stage 2 : Designing Training

Having identified training needs and objectives the manager will have to design the
programme. Training programme needs to be designed carefully to ensure that it meets
the identified objectives. The following factors have to be considered in designing
training programme.
a) Location :
Is the training to be on-site? or outside ?
b) Timing : Is there an optimum time for the training to take place what is the duration
of training?
c) Level : If the training is to be conceptual only are the trainees experienced enough to
be able to relate it to the work situation?
d) Content
e) Budget
f) Learning
g) Training methods
68
Learning
Skinner (1976 ) defined learning as process of progressive behavior adaptation. Kulkami
(1989) considered learning as relatively permanent change in behavior which occurs as a
result of experience or practice.
There are different learning theories which explain and describe the learning process in
very different ways.
There are several principles which offer valuable guidance for designing effective training
programme. Some of the important principles are :
- Conditions of practice (For maximum learning active practice of the skills to be

acquired is necessary. Practice should continue.)
- Knowledge of results (errors are eliminated faster when trainees receive feedback
on how they are doing.)
- Relevance of material (meaningfulness can be enhanced by providing relevant
materials providing an overview of how the training fits wish the job, how the
training sequence fit together etc.)
- Transfer to the job (How learning is transferred to the job is also important.)
- Intensity
- Reinforcement
- Motivation
Learning Curves
When we plan and design a training programme we should consider and be aware of the
learning curves also. This will help to understand the rate of learning and degree of time
for learning. There are three different learning curves. They are ;
Negatively accelerated learning curve
Positively accelerated learning curve
Competencies acquisition learning curve.
69
max max
Level of Level of
learning learning
min min
time time
Negatively accelerated learning curve Positively accelerated learning curve
max
Level of
learning
min
time
Competencies Acquisitions Learning Curve
Figure11.2 - Learning curves.
Activity 11.4 : Discuss the above learning curves.
Training Methods
Training methods and media must next be evaluated. There are variety of options
available and some of them indicated below:
a) Apprentice Training
b) Coaching
c) Job rotation
d) Case study
e) Role playing
f) In basket method
70
g) Vestibule training
h) Sensitivity training
i) On the-job Training
.Activity 11.5 : Discuss each method with its advantages and disadvantages .
Stage 3 : Conducting Training Programme

The only general rule for conducting a training programme is that the programme should
continually be monitored to ensure that it is carried out according to the plan and within
the agreed budget.
Stage 4 : Evaluating Effectiveness of Training

Evaluation is the final stage of the training. The focus of evaluating and the methodology
adopted varies greatly from programme to programme. Anderson and Ball (1978)
describes the major purposes of an evaluation as one or more of the following :
1. To contribute to decisions about programme installation.,
2. To contribute to decisions about programme continuation, expansion or
certification.
3. To contribute to decisions about programme modifications.
4. To obtain evidence to rally support for a programme.
5. To obtain evidence to rally opposition to a programme.
6. To contribute to the understanding of the basic psychological, social and other
processes.
Having determined the purpose the next step for the evaluator would be to adopt and
appropriate level to the evaluation.
Hamblin (1974) proposes five distinct levels at which evaluation can take place.
1. The reaction level
2. The learning level
3. The job behavior level
4. The functioning level
5. The ultimate value level.
71
There are 3 styles of evaluation
1. Post measure
2. Pre-post measure
3. Experimental post measure.
Managerial Obsolescence
It means that manager‟s skills, knowledge and attitudes are outdated or not modernized
to perform his /her job as expected by the organization. There are three main reasons
for obsolescence.
(Opatha, H.H D.N.P, Sevamandala Kalamanakaranaya )
1. When a manager is promoted beyond his or her competency level.

2. When a manager is not able to adjust to the highly changed environment.
3. When a manager becomes older and older he/she will be unable to adjust to
the modern situation naturally.
Activity 11.6: Discuss the solutions for the problem of managerial obsolescence.
72
Chapter 12
Employee Movements
Objectives:
to
i. Identify types of Employee Movements.

ii. Define what Promotions, Transfers and Layoffs are.
iii. Understand methods of Promotions, Transfers and Layoffs.
iv. Understand Promotion Criteria.
v. Understand Elements of Transfers.
vi. Identify Reasons for Layoffs.
Definition -Promotion
Promotion is the advancement of an employee to a better job- better in terms of greater
responsibilities, more prestige, greater skill and increased rate of pay or salary (Paul
Pigors & Charles. A. Myert, 1977.p. 282). There may be better hours or better location or
working conditions for the “better job”. Promotion is a re-assignment of an employee to
a higher rank job.
Types of Promotion
1. Up Grading
2. Up Classing
3. Different Functional Field
4. Same Functional Field
Activity –12.1: Discuss ways of promoting an employee
73
There are two types of promotional criteria.
1).Formal
There are two types of formal criteria.
1. Seniority- the length of period that an employee has served for the organization
or the period of service. There are different types of seniority such as
Job Seniority
Department Seniority
Organization Seniority
2. Competency or Merit- the degree of effectiveness and efficiency of the

employee.
2) Informal
Promotions may be given by interpersonal influences. There may be national politics
or organizational politics or other reasons for inter personal influences.
Activity 12.2: Discuss the advantages and disadvantages of seniority and competency as
criteria for giving promotions.
Definition-Transfer
A transfer is the movement of an employee from one job to another on the same
occupational level and at about the same level of wages or salary. No appreciable increase
or decrease in duties and responsibilities is involved, although there may be a change in
their specific nature of duties and in working conditions.
Types of Transfers
1. Production Transfers
2. Policy Oriented Transfers
3. Disciplinary Transfers
74
4. Remedial or Corrective Transfers
5. Vacant Transfers
6. Versatility Transfers
7. Shift Transfers
8. Interest Oriented Transfers
9. Problem Oriented Transfers
Activity-12.3 : Discuss policies and procedures in Transfers.
Definition – Layoff
Layoff is a temporary stoppage of the service of an employee owing to a reason which is

uncontrollable by the management.
Activity 12.4: Discuss possible reasons for layoffs.
Methods of Layoffs
1. Bumping
2. LIFO
3. FIFO
4. Agent method
5. Formal
Activity 12.5: Describe each method of layoffs and discuss major advantages and
disadvantages of the each.
75
Chapter 13
Management of Discipline
Objectives:
to:
i. Define what Discipline means.

ii. Understand importance of Discipline Administration.
iii. Identify types of Discipline.
iv. Understand Hot -Stove Rule.
v. Understand Sandwich model and Progressive Discipline.
vi. Identify Disciplinary Offences and Penalties.
vii. Understand Domestic Investigation.
Definition
Discipline involves controlling work and behavior of employees in compliance with all
the relevant rules and regulations in order to achieve organizational goals and objectives.
Discipline administration is defined as the development, implementation and

maintenance of an appropriate discipline system in the organization in order to
accomplish its goals.
Importance of Disciplinary Administration
1. To reduce conflicts and confusions.

2. To achieve the objectives and goals of the organization.
3. To control and manage human resources in an orderly manner.
4. To ensure the employees‟ behavior in accordance with performance standards,
rules and regulations of the organization.
76
Types of Discipline
There are two major types of Discipline and they are:
1. Preventive Discipline
Preventive Discipline is action taken to encourage employees to follow standards and

rules so that infractions do not occur. The basic objective is to encourage employees‟ self
discipline. A self –disciplined employee has generally the following characteristics.
-Accepts the rules which happen to face
-Respects the rules
-Observes the rules by him/herself willingly
-Needs no another to direct or supervise him/her to adhere to rules
-Keeps on adhering to rules continuously
2. Corrective Discipline
Corrective Discipline is an action that follows infraction of a rule and it seeks to
discourage further infractions so that future acts will be in compliance with rules and
regulations. It involves corrective actions which discourage repetition of rule violations.
Typically the corrective action is a penalty of some type and is called a disciplinary action
(Werther et al, 1985, p 438).
Activity 13.1: Explain the objectives of a Disciplinary Action
The Hot Stove Rule

The hot stove rule states that disciplinary action should have characteristics similar to the
consequences a person suffers from touching a hot stove. According to this rule,
discipline should have following characteristics.
1. Warning
2. Immediacy
3. Consistency
4. Impersonality
77
Activity 13. 2 : Describe the characteristics of the hot -stove rule.
Sandwich Model
This is an approach that does not involve a discussion and it is more one-way
communication (Opatha, 2002, p.48). Sandwich approach refers to that a corrective
comment is sandwiched between two positive comments in order to make the corrective
comment more acceptable (Werther et al, 1985).
Activity 13.3: Discuss an example that applies the sandwich model.
Progressive Discipline
Progressive discipline means that there are stronger penalties for repeated offences. The
purpose is to give an employee an opportunity for self correction before more serious
penalties are applied.
A progressive discipline system is as follows.
1. Verbal warning
2. Written warning with a record in personnel file
3. One to three day suspension from work
4. Suspension for one week or longer
5. Dismissal
Disciplinary Offences and Penalties
Basically there are two types of offences.

1. Serious
2. Non serious
Activity 13.4: Identify serious and non serious offences that may be committed by
employees in the organization.
78
It is possible to divide Penalties into two major categories:
1. Minor, e .g. Verbal warning, written warning
2. Major, e .g. Demotion, Dismissal
Factors that affect in determining the severity and non severity are given below.
1. Nature of the offence
2. Number of previous offences
3. Nature of previous offences
4. Penalties given for similar offences by other competitors
5. Period of service
6. Whether the company rules are clear? Have they been communicated in
reasonable and understandable manner?
Domestic Investigation
When a person is suspected for a rule violation, the organization will have to conduct
domestic investigation. This is called the internal disciplinary investigation or domestic
inquiry. Steps of an internal disciplinary inquiry are as follows.
1. Do a preliminary investigation
2. Interdict the service of the employee
3. Issue the charge sheet
4. To receive letter of explanation
5. Formal inquiry
6. Determine the punishment and implement it.
Activity 13.5: Describe each step of the domestic inquiry procedure.
79
Chapter 14
Occupational Health and Safety Administration (OHSA)
Objectives:
to:
i. Define what OSHA means
ii. Understand the Significance of OSHA
iii. Discuss factors affecting Health Hazards
iv. Explain in detail basic causes of accidents
v. Explain how to prevent accidents at work
vi. Discuss health hazards and strategies to avoid those hazards
vii. Explain factors affecting Quality of Work Life
viii. Discuss occupational Health and Safety Program
Introduction
Health and safety administration is the group of activities involved in the development,
implementation and on-going maintenance of a legitimate, fair and adequate health and
safety system in order to achieve goals of the organization.
Definition
Occupational Health
Physical, mental and emotional well-being of an employee inside and outside of the
workplace.
Occupational Safety
Free from danger and risk. Working environment is free from accidents and industrial
disasters that may cause personal injury or ill health to employees.
Occupational Health can be divided into two:

1) Physical Health
The state of being physically fit to do a job.
2) Mental Health
A good mental healthy person has qualities such as:
80
i. Understanding reality of the life
ii. Bearing fairly life stress and working accordingly (adaptation
to situational mental stress)
World Health Organization ( WHO) defines the aims of occupational health as the
prevention and maintenance of the highest degree of physical, mental and social well-
being of workers in all occupations; the prevention among workers of departments from
health caused by their working conditions; the protection of workers in their
employment from risks relating to factors adverse to health, the placing and
maintenance of workers in an occupational environment adapted to his physiological
and psychological environment: to summary the adaptation of work to man and each
man to his job.
Significance of OSHA
i. Assist to develop effective and efficient work force in an organization
ii. Assist to improve employee performance
Employee well being
Sound mental
Well-being Sound physical
well-being
To make correct Energy, speed,

decisions & desired endurance, persistence
behaviours and flexibility to do
correct function
Higher Job Performance
Source: Opatha H H N D, Sevaka Madala kalamanakaranaya, 1995
Environmental Hazards affecting Employee Health and Safety

1. Industrial Accidents
2. Occupational Diseases
3. Low Quality of Work Life ( QWL)
4. Organizational Stress
81
Results/ Consequences of Occupational Health and Safety
Environmental Hazards Conditions Outcomes (unfavorable)

1. Occupational Accident Loss of hearing, eyesight, High medical cost
loss of body parts, cuts High compensation
sprains, Bruises, broken High legal cost
bones, burns, electric Decline of reputation
shocks, death
2. Occupational Diseases Cancer, asthma, poisoning, High absenteeism
Respiratory disorders, High turnover
reproductive disaster Job dissatisfaction
3. Low Quality of Work Dissatisfaction, apathy Low job involvement
Life Low efficiency
4. Organizational Stress Confusion, Ineffective,
negligence, tension Low productivity
Industrial Accidents
Industrial accidents are mainly due to human failure somewhere in the chain of
circumstances which lead to the injury and it is an unexpected occurrence that interrupts
regular progress of work.
Cost of an accident
1. Insured Cost
Under Workmen‟s Compensation Laws there is an immediate cost of an accident,
namely the insurance premium paid to cover the employer‟s financial liability for medical
and compensation benefits for the injured employee.
2. Uninsured Cost
i. Cost of wages paid to the injured worker
ii. Cost of wages paid for the time lost of workers not injured
iii. Cost of replacing the injured employee
iv. Cost of damages to plant, equipment and materials
v. Cost of legal expenses arising due to the accident
82
Causes of Accidents
Causes of accident can be categorized into four:
1) Relating to machines
i. Not covering or not properly covering dangerous parts
ii. Machines defects
iii. Not properly repair
iv. Machines operates at a high speed
2) Human Causes
i. Poor health
ii. Lack of training
iii. Lack of competence
iv. Negligence
v. Anxiety
vi. Monotony
vii. Lack of self confidence
viii. Frustration
ix. Intoxication
3) Environmental Causes
i. Inappropriate location & layout
ii. Inappropriate ventilation
iii. Inadequate space for movement
iv. Either very high or low temperature
v. Inadequate lighting
vi. Cabinets drawers & windows are left open
vii. Floor and staircases wet with water or oily substance
viii. Telephone and electrical cables fall on the floor
ix. Carpets are turn or loose or not suitable
83
4) Miscellaneous
i. Weak housekeeping
ii. High noise (excessive)
iii. Leaking of electric wires
iv. Overloading
v. Use of inadequate or defective tools
vi. Poor supervision
vii. Working continuously for a long time
Occupational Health Hazards

1) Chemical – Dust, fumes, gases, lead and toxic metals
2) Biological – Bacteria, fungus, insects
3) Physical – Noise, Heat, vibration and radiation
4) Mental – Bourbon, monotony, frustration, fear and shocks
Factors Affecting QWL

i. Poor job design
ii. Low employee involvement
iii. Ineffective pay system
iv. Unfulfilled expectations
v. Discrimination practices
vi. Lack of Job security
Factors Affecting Stress
i. Supervision, Salary, Safety and job Security (4 S‟s)
ii. Organizational changes
iii. Crowding
iv. Lack of privacy
v. Over work
vi. Unattainable targets
84
Strategies for Improving Occupational Health and Safety
After identifying the sources of harmful conditions on the job, the organization can
develop strategies for improving OHS.
1. Strategies for improving OHS in the physical environment
1.1 Strategies for minimizing occupational accidents.
1.1.1 Environmental design
Designing the work environment is perhaps the best way to
prevent accidents and improve safety.
E.g.- automatic shutoff, warning light, safety helmet and hand tails of
staircases
1.1.2 Ergonomics
To achieve the maximum efficiency in the organization, it has to
study the work and work environment & conditions.
1.1.3 Job redesign
1.1.4 Safety committees
1.1.5 Safety motivational programs
1.2 Strategies to minimizing occupational diseases
Occupational diseases may be more harmful and costly to the
organization and employees than occupational accidents.
1.2.1 Record keeping
1.2.2 Setting objectives
1.2.3 Recognition
1.2.4 Introducing workers educational and physical fitness programs
2. Strategies for improving OHS in the socio-psychological work environment
2.1 Strategies for improving QWL

2.1.1 Re-designing jobs
2.1.2 Participation in making decision
2.1.3 Ensuring job security
2.1.4 Establishing an effective and fair pay system
85
2.2 Strategies for preventing stress
2.2.1 Job design
2.2.2 Career development
2.2.3 Quality circles
2.2.4 Organizational restructuring
Occupational Health and Safety Programs

The essential elements of an occupational heath and safety program are:
1. Analysis – of health and safety performance, problems and potential hazards
2. Development – of policies, organizational procedures and training systems
3. Implementation – of the program by the means of training, inspections,
investigations and audits
4. Evaluation – of control on formation and reports and of the effectiveness of the
organization and training. This evaluation will result in feedback to be used for
improving performance.
Activity 14.1 – Discuss the effective Health & safety Program in selected organization in
Sri Lanka
Case Study – The Accident
86
Chapter 15
Employee Welfare
Objectives
to :
(i) Define what welfare means.
(ii) Understand the significance of employee welfare.
(iii) Understand the principles of employee welfare.
(iv) Understand the classification of employee welfare work.
(v) Identify employee welfare activities.
Introduction
The term “welfare” suggests many ideas, meanings and connotations, such as the
state of well being, health, happiness, prosperity and the development of human
resources. The concept of welfare can be approached from various angles. Welfare has
been described as a total concept. It is a desirable state of existence involving physical ,
mental , moral and emotional well- being. All these four elements together constitute the
structure of welfare on which its totality is based.
Welfare is called a relative concept for it is related to time and space. Changes in
it have an impact on the system of welfare as well. As welfare is growing and dynamic,
the welfare potential changes, as a result of which its content keeps on varying and has to
keep pace with the changing times. Also, the characteristics of welfare vary for it depends
largely on the conscience of the community, the scientific advancement and the
development of a nation in all fields. Its meaning and components, therefore, differ from
country to country, place to place and organisation to organisation.
Welfare is also a positive concept. In order to establish a minimum level of
welfare, it demands certain minimum acceptable conditions of existence, biologically and
socially. The positive nature calls for the setting up of the minimum desirable standard
necessary for certain components of welfare, such as health, food, clothing, housing,
medical assistance, insurance, education, recreation so on.
87
Definition of Employee Welfare
Labour welfare has been defined in various ways. There is no single definition that has
been used universally.
The Oxford Dictionary defines labour welfare as “efforts to make life worth living for
worker”.
Another definition implies that welfare is fundamentally an attitude of mind on the part
of management, influencing the method by which management activities are undertaken.
The emphasis obviously is on the “attitude of mind”. Trevor Bolton - An Introduction
to HRM.
In the Encyclopedia of social sciences, welfare is define as “ the voluntary efforts of the
employers to establish, within the existing industrial system, working and sometimes
living and cultural conditions of the employees beyond what is required by the law, the
customs of the industry a and the conditions of the market”.
So, The term welfare refers to all the facilities and comforts given by the employer to
employees apart from wages, salaries and incentives.
Significance of Employee Welfare
Employee welfare is important not only for the employees and but it is also for the
employer‟s own interest.
1. The welfare work has beneficial effects for the employees. It influences
the sentiment of the workers and helps to maintain industrial peace.
When the employee feels that the employer and the government are
interested in his / her day- today life he/ she feels happy about it and
likely stop grousing and grumbling about the working conditions.
2. Better housing facilities, co-operative societies, canteens, sickness and

maternity benefits, educational facilities, free or cheap rate cinema shows
will assist to create a sense of happy feeling among the employees and
88
help them to work harder for the organization. Therefore the question of
labour strikes at the organisation may not arise.
3. Welfare work is increasingly recognised as an intergral part of industrial

administration. Therefore, it brings about a real change of heart and a
change of outlook on the part of both employers and employees.
4. It helps to improve the mental and moral health of the workers by

minimising the incidents of social evil of industrialization. Working in a
bad environment pushes the worker in to vices like drinking, gambling
and prostitution. Healthy surroundings created by welfare work are likely
to act as a deterring force against such vices.
5. Labour - turnover and absenteeism may decline. As welfare work

improves conditions of work and life of the employees. The worker
becomes happy and contented with his / her work. This will reduce his/
her desire to take leave unnecessarily and tend to reduce
absenteeism in the organisation.
6. Organizational welfare helps to improve good will and reputation of the

organization.
Principles of Welfare Administration
There are several Principles to be followed to perform the HRM function of employee
welfare administration. They are as follows:
Satisfaction of Real Needs

Any welfare service should satisfy real needs of the employees, at least majority of the
employees.
89
Cost Benefit Analysis
It is important to do a cost / benefit analysis before starting a welfare programme. If the
programme has more benefits compared with direct and indirect costs it is appropriate to
implement.
Participation
When formulating a welfare programme it is better to get participation of relevant
workers and / or trade union officials.
Welfare Financing
Adequate provisions for financing the programme are to be established.
Permission for Criticism

Employees should be allowed to criticise any welfare programme.
Welfare is for Welfare

A welfare programme must not be started with the intention of earning profits or saving
money.
Impartiality
Administration of any welfare programme is to be based on honesty and non-cordiality.
With the intention of helping associates only the administration should not be done.
The management should not try to offer welfare services to the more deserving
than to those needing. If done so, the management will earn more ill – will rather than
good - will in welfare administration.
Classification of Employee Welfare Work
Employee welfare work can be classified in to 3 different categories.

1. Statutory
2. Voluntary
3. Mutual
90
1. Statutory
Statutory welfare is implemented on the coercive power of the government. The

Government enacts laws for the provision of employee welfare in order to enforce
minimum standards of safety, health and welfare of the employees / workers. Employees
have to observe the rules related to working conditions, hours of work, hygiene, safety,
light, ventilation, sanitation etc. Every country is increasing its statutory control over
employee welfare. There are two main labour laws found in Sri Lanka.
1. Factory Ordinance No 45 of 1942 (Amended in 1956)
2. Indian Labour Act
2. Voluntary
This includes all activities which employers undertake for their employees on a
voluntary basis. Welfare work likely leads to good results. There are some social
organisations which undertake voluntary welfare work.
Eg : YMBA, YMCA
3. Mutual
Mutual welfare work is also undertaken by the workers themselves. Some trade unions too undertake
the workers welfare activities.
Employee Welfare Activities
(i) Medical Facilities

(ii) Canteen Facilities
(iii)Housing Facilities
(iv)Transport Facilities
(v) Sports and Recreational Facilities
(vi)Advances and Easy Loan Facilities
(vii)Death / Funeral Facilities
(viii)Thrift Facilities
(ix)Education Facilities
(x)Legal Aids
(XI)Other Facilities
91
Activity 15.1 -“Making effort on employee welfare by an organisation is useless because
the government and the organizations are making efforts on public welfare” Do you
agree or not with this statement? Give reasons.
Self- Assignment 1.
Select any organization and discuss with the general manager or HR manager
with regard to the following :
(a) Who performs the employee welfare administration?

(b) Significance of employee welfare.
(c) The prevailing employee welfare activities.
(d) Current problems of employee welfare administration.
(e) Actions which have been taken to solve the welfare administration
problems.
92
Chapter 16
Grievances Handling
Objectives:
to:
(i) Answer the question “What is Grievance Handling/Settlement?”

(ii) Understand the importance of solving employee grievances.
(iii) Identify the causes of Grievances.
(iv) Understand identification of Grievances.
(v) Describe the methods of settling grievances.
(vi) Explain the important principles that should be protected in a formal Grievance
settlement procedure, and strategies of solving grievances.
(vii) Identify the responsibility of solving Grievances.
Introduction
Human Resources Management is concerned with „people‟ dimension in management.
Since every organization is made up of people, acquiring their services, developing their
skills, motivating them to high level of performance and ensuring that they continue to
maintain their commitment to the organization are essential to achieving organizational
objectives. The success of any organization depends upon its quality of HR.
When the employees are suffering from grievances, it is very difficult to utilize them in
expected ways. Therefore, to manage HR more effectively and efficiently it is very
necessary that organizations take an interest in employee grievance and make attempt to
control or minimize the employee grievances.
Defining Grievance
Defining Grievance is rather a difficult task. Different researchers and authorities have
defined the Grievance in different ways.
93
Definitions:
(i)According to Davis (1971 P.34), Grievance is any real or imagined feeling of personal
injustice, which an employee has, concerning his employment relationship.
(ii)Yoder explains Grievance as a written complaint filed by an employee and claiming

unfair treatment.
(iii)The International Labour Organization (ILO) says that a grievance is a complaint of

one or more workers in respect of wages, allowances, condition of work and
interpretation of service stipulations covering such areas as overtime, leave, transfer,
promotion, seniority, job assignment, and termination of service.
(iv)Jucius identified grievance as any discontent or dissatisfaction, whether expressed or

not, whether valid or not, arising out of anything connected with the company that an
employee thinks, believes, or even feels, is unfair, unjust or inequitable.
Summarizing the above, grievance can be identified as psychological discontent or

dissatisfaction arising from a feeling or belief of injustice, felt by an employee or a group
of employees in connection with the work environment. It can be expressed or
unexpressed, valid or invalid.
Significance of Grievance Handling
A simple grievance may be a potential source of massive problems for the organization.
Dissatisfaction of one may make dissatisfaction for many. It creates a conflict with the
management. This results in low productivity and inability to achieve organizational
objectives.
94
Importance of solving grievances
Grievance converts Grievance makes Anti attitudes Opposition Industrial

of one of group of towards Disputes
employee to employees managers to
Result in
1. Declining organizational
productivity
2. Absenteeism
3. Turnover
4. Low effectiveness &
efficiency
(Source: Opatha, 1995, p. 309-310)
Therefore, whether expressed or unexpressed, valid or invalid, handling grievances

prevents a lot of unfavorable situations in the present and in the future.
Causes of Grievances
Grievances can arise owing to a variety of causes:
1. Causes relating to the job:
i The employee not competent to perform the duties and responsibilities of the job
ii The employee given a duty, which is out of his job description
iii The worker not having the adequate or proper training to perform the job assigned
iv Improper matching of the employee with the job
95
2. Causes relating to working conditions:
i Work hazards and unpleasant conditions that are faced by the employees
ii Unfavorable relationships with supervisors
iii Leadership style of the superior
iv Inadequate resources to carry out duties
v Inadequacy of toilet facilities, lunchroom and others, noise, fumes and other
unpleasant physical conditions
3. Causes relating to personnel management

policies/practices/procedures/decisions
Complaints/appeals/requests about:
i. Wages/salaries and incentives
ii. Leave
iii. Promotions
iv. Terminations
v. Transfers
vi. Training and development
vii. Performance appraisal
4. Causes relating to an alleged violation of terms and conditions:

i. Violation of terms of collective agreement
ii. Violation of rules and procedures
iii. Disciplinary actions
iv. Ignoring managements‟ responsibilities
v. Act against past practices
5. Causes relating to unsuitable individual behavior

i. Over ambitious
ii. Superiority complex
iii. Impractical attitudes towards life
96
Methods of Grievance Settlement
Organizations follow several methods to settle Grievances. There is no unique method

that can be recommended, according to organization type, size, etc. Method can be
changed. These methods can be as follows:
i. Formal Grievance Settlement Procedure (FGSP)
ii. Open-door policy
iii. Quasi Method
iv. Committee Approach
v. Counseling
vi. Mixed Method
1. Formal Grievance Settlement Procedure (FGSP)
The formal method is used mostly in unionized organization setups to solve employee
grievances. Formal method involves several steps and the number of steps may differ
from organization to organization. A specimen Grievance settlement procedure for a
manufacturing organization is shown in the following figure:
97
Figure: Grievance Settlement Procedure
S
T ARBITRATION
E
P
S
National Trade Union Leader 2 weeks The Chief Executive Officer

7 (CEO) / President
1 week &
Branch Trade Union Leader & Factory Manager /
6 National Union Representative Personnel Manager
5 days
Branch Trade Union 1 week & Assistant Factory Mgr. /

5 Representative Assistant Personnel Mgr.
3 days
1 week
Trade Union Personnel Management Officer
4 Representative
Trade Union 5 days Department Head

3 Representative
3 days
Employee Sectional Head
2
Grievant / Employee 2 days Immediate Supervisor

1
(Source: Opatha H. H D.N. P., Sevaka Mandala Kalamanakaranaya, 1995, p. 315)
98
Following characteristics must be included when forming an effective Formal Grievance
Settlement Procedure (FGSP):
a. Try to solve grievances at the lowest management level.
b. If employees are unable to find a solution to their grievances and lower
management level, they should be aware to whom they should appeal in
order to find a solution.
c. It should be clearly stated that if the grievance is against an order given by
the superior, first the employee should carry out the order in order to
maintain discipline and only after that she/he should appeal for a
solution.
d. The procedure should provide immediate solutions in order to avoid
frustration among employees.
e. Employee participation should be sought when drawing up Formal
Grievance Settlement Procedure.
f. It should be simple and understandable.
Due to a formal Grievance Settlement Procedure any organization can gain advantages
stated below:
(a) As hidden grievances are disclosed, the management is in a position to

find quick solutions.
(b) This assures that the management acts fairly and that employees are
equally treated.
(c) As higher-level managers review the decisions taken by the lower level
managers, lower level managers have to be more careful when taking
decisions.
(d) By finding solutions for minor problems and frustrations the
management is in a position to avoid major conflicts within the
organization.
(e) This provides an avenue for the employees to communicate with the
management.
Activity 16.1: Discuss the other methods of grievance settlement and its advantages and
disadvantages.
99
Identifying Employee Grievances
Excellent management should identify, at its earliest, employee grievances before they
become serious. The following methods can be used to identify employee grievances:
1. Exit Interviews
2. Attitude Surveys
3. Grievance Boxes
Activity 16.2: Discuss each of these methods specifying its advantages and
disadvantages.
The Principles of Grievance Settlement

Grievance settlement principles present the aspects that have to be followed to solve
grievances efficiently and productively by the management when employees forward
grievances to their immediate superiors or to other authorized management personnel.
These can be explained as:
(i) All grievances are treated as important.
(ii) Gather all the relevant data and information about the grievant and the
grievance.
(iii) Discuss with grievant about the matter (not argue).
(iv) Listen attentively.
(v) Build up confidence.
(vi) Accept the fault.
(vii) Use authority wisely.
(viii) The decisions taken should be communicated immediately to the
employee and it should be implemented without delay.
(ix) After implementing the decision, a follow up action should be taken to
see whether the grievance has been solved.
(x) Appropriate training should be given to the immediate superior to solve
grievances.
Strategies to Solve Grievances

Where there is a grievance there will be a frustration. In order to reduce the degree of
mental frustration of the grievant the immediate supervisor or other authorized manager
100
can take some actions on the employee strategically without solving the grievance
directly. These strategies are:
1. Allow to Talk.
2. Escape from the situation.
3. Allow to get over.
4. Give in.
5. Use the employee in more responsible tasks than before, so that
frustration can be removed.
Activity 16.3: Discuss each of these strategies.
Responsibility of Solving Grievances

As explained, employee grievances may convert in to future conflicts or disputes, make
administrative problems and lead to a decline in organizational productivity. Finally
organizational objectives are not attained due to employee grievances. Therefore, it is
important to consider grievance handling as an important HR activity and give high
priority to it. A question that arises is that who is responsible for this activity.
Whether employees are unionized or not, any successful grievance settlement procedure
shows that the first attempt is to forward the grievance to the immediate superior. This
immediate superior may be the supervisor, foreman or line manager. Robert M Palmar
identified that, as an observant immediate supervisor can avoid disputes arising from the
mental drive and dissatisfaction levels of the individual. James M Black conducted a
research and found that the immediate superior can solve 80% - 90% grievances in the
first step of FGSP.
If the immediate superior does not have enough authority to solve the grievance, it may
be passed on to higher managerial level, which has the authority.
Grievance handling is not the responsibility of the HR Manager only. It is an activity and
responsibility of the immediate superior as well as the highest level of management.
101
Chapter 17
Labour Relations (LR)
Objectives:
to:
i. Define what LR means and compare it with PR.
ii. Understand the significance of LR.
iii. Identify main parties in the LR system and understand their
interdependence.
iv. Explain why workers join a union.
v. Understand the advantages and disadvantages of trade unions.
vi. Describe the meaning of collective bargaining and types of collective
bargaining.
vii. Explain the process of collective bargaining from the managerial point of
view.
viii. Understand the distinction between collective bargaining and joint
consultation.
Definition
The concept of Labour Relations (LR) refers to a continuous relationship between labour
and management of an organisation. It involves all the interactions and feelings between
labour and management in the context where a trade union represents workers. Workers
are non-managerial employees and they are organised as a trade union or trade unions in
the context of LR. The management involves all the managerial employees in the
organisation who represent the employer/owner/s.
The concept of Personnel Relations (PR) refers to a continuous relationship between an
individual worker or workers and managers in an organisation. It involves all the
interactions and feelings between workers and management in the context where workers
are not represented by a trade union.
While LR involves collective relations PR involves individual relations. LR is alternatively

termed as Union-Management Relations while PR is alternatively called as Employee
Relations.
102
Activity 17.1: Identify two practical examples representing LR and PR.
Objectives of LR
Following objectives are expected to be achieved:
1. To create and promote industrial peace.
2. To create and promote industrial democracy.
3. To maintain sound/cordial relationship between labour and management.
4. To improve organisational productivity.
5. To work together to enhance standards of living of all the parties
concerned.
Activity 17.2: Contemplate the objectives of LR. How do you view the objectives?
Importance of LR
Understanding the objectives of LR makes you to understand the significance of LR. If
cordial and cooperative LR has not created, it is most likely that conflicts and disorders
happen. As a result of this, labour unrest occurs by abolishing labour peace.
Consequently:
Decline of employee morale;
Damages to organisation‟s properties;
Wastage of resources;
Decline of labour productivity;
And impairment of overall organisational efficiency and effectiveness.
These unfavourable conditions are not only detrimental to the organisation but also to
the entire nation. Therefore, cordial and harmonious LR is a must for organisation
existence and development and also for economic development of a country.
LR System
LR system consists of three main parties. They are:
1. Employees and their representatives (unions)
2. Employer and his/her representatives (Management)
3. The Government
Activity 17.3: Explain the interdependency of unions, management, and Government.
103
Activity 17.4: Examine the accuracy of the statement that although each party depends
on the other, the parties are not equal.
Why Do Workers Unionise?

Following figure indicates a model (modified from Schular and Youngblood, 1986)
explaining why workers join a union.
Inefficient, discriminate, biased and week management
Individual Attempt
Job Dissatisfaction to solve problems
Unsuccessful Successful
Union Instrumentality Job Satisfaction
Unionization
Activity 17.5: Discuss the above model.
Mills (1994, p.9) gives 5 major reasons for why employees join unions. They are as
follows:
i. In opposition to management (unfair)
ii. To participate in union activities
iii. To exercise leadership
iv. Because of social pressure and
v. Compulsory unionism
It is likely that all the reasons except the last one apply to Sri Lankan workers to join
unions. As there is no law in Sri Lanka requiring a worker to join a union the last reason
of Mills does not apply to.
104
Advantages and Disadvantages of Trade Unions
Advantages of having a Trade Union (TU) in an organisation are:
(1) TU fulfils the “agency” function that is especially important where there are a
large number of employees engaged in relatively homogenous activities. It will
save the time of management.
(2) TU voices the grievances of workers.
(3) TU can help identify workplace hazards.
(4) TU can help improve QWL.
(5) TU can bring some certainty and discipline to the work force.
(6) TU can significantly influence the application of proper HRM practices.
Disadvantages include:
(1) Trade unions are concerned with representing collective interests of workers
whereas management may want to place more importance on the individual
interest.
(2) TU may disrupt unitary approach of the organisation due to external
focus/political motivation.
(3) Management flexibility and authority for decision making are limited due to the
TU.
(4) TU may present unfair demands, which may hinder the organisational
effectiveness.
(5) TU‟s actions such as strikes may be very detrimental to the organisational
productivity.
Collective Bargaining-Definition
Collective Bargaining (CB) is an attempt taken by both trade union and management to
come to an agreement that specifies terms and conditions of employment for a certain
period of time. CB is a process in which managerial representatives and worker
representatives/trade union meet and endeavour to negotiate an agreement what is called
collective agreement that specifies rules and regulations of employment for a period of
105
time. Objective is to develop an agreement between workers and management in order
to enhance level of welfare of workers and organisational success by enduring sound
functioning.
Types of CB
There are four types of bargaining structures. They are as follows:
1. Single/one employer-one-union/unitary
2. Multi-employer
3. Multi-union
4. Multi-union-multi-employer/multiple (between union association /s and
employer association/s)
CB Process
CB process consists of three stages each of which has several specific steps that are given
below.
Preparatory Stage
1. Assemble the CB team.
2. Monitor the environment to find clues about likely union demands.
3. Determine offers (management counter proposals).
4. Determine time, place and rounds.
5. Secure top management approval.
6. Check union actions.
7. Government agent participation.
Negotiation Stage
1. Discussion
2. Negotiation
3. Approval of the agreement
4. Legalisation
Administrative Stage
1. Communicate the agreement.
2. Adjust relevant policies, procedures etc.
3. Ensure union and management compliance.
106
Activity 17.6: Discuss each step of the CB process. From what point of view is the
process? Indicate the process in a figure.
Joint Consultation
Most obvious method of worker participation is Joint Consultation (JC). JC provides a
means of jointly finding and discussing problems of concern to both management and
workers. It is a mode of worker participation where management and workers get
together to discuss solutions for work-related problems. General topics for JC include
work methods, leave, absences, work rules, safety strategies, health facilities, educational
and other welfare facilities, productivity improvement programmes etc. JC committees
are formed.
Activity 17.7: Discuss the difference between CB and JC.
Case: Sangeeth Company
107
Applications in HRM

Nugegoda, Sri Lanka
i
COURSE DIRECTOR
COURSE COORDINATOR

Mr.C.C.Piyasena
The applications in this book were developed or adapted by Prof. Dr. Henarath
H.D.N.P.Opatha of the Department of HRM of USJ. The sources from which
applications were adapted have been mentioned at the end of the each application.
ii
CONTENTS
Applications
Critical Incidents in HRM
2. Hard Work
3. The Super Management Trainee
5. Orientation at Warehousing of North America,Inc
6. Performance Evaluation at M Company
Cases in HRM
1. Commencement
2. The Reluctant Receptionist
3. X Development and Administration Department
4. Heen Kendiriya
5. Supervisory Training Course
6. The Accident
7. Sangeeth Company
Skills Builders in HRM

1. Selecting a Management Trainee (HRM)
2. Identifying Different Types of Criteria of PE
3. Writing PE Standards of Subjective Criteria
5. Job Evaluation 1
6. Job Evaluation 2
7. Welfare Scheme
iii
In 1991, X and Y decided to form an agency to provide travel facilities to tourists. By the
end of the 1990s, X was still handling all personnel records, employment training and
compensation for sixty employees in the organization. Business activities were very
successful so far and a further rapid increase in operations is expected next year (2001).
Talking with Y, X listed the following reasons why he thought a HR department should be
formed.
a) “I don‟t like to do recruiting or interviewing.”

b) “The personnel paperwork interferes with my time to line up new appointments.”
c) “Certainly, someone else can do this HR work better.”
d) “I‟ve never had any training in HRM work, and I fear I might be unknowingly breaking
laws.”
e) “Without a HR department, there is no one to whom I can delegate these thankless HR
tasks.”
f) “I‟ve done this HRM work long enough.”
It was decided to hire a recent graduate in HRM of a reputable university for training as the
HR Manager.
(1) Of the reasons X gave, which should properly be considered in deciding whether to start
an HR department? Which should be ignored?
(2) What is X‟s view of HRM?
(3) If you were hired to fill the new opening of HR Manager, what HR responsibilities do
you think X would delegate to you?
Source: Adapted from Werther, B. W. and Davis, K (1993). Human Resources and Personnel Management,
4th ed, New York: McGraw- Hill Book Company.
108
2. Hard Work
Mr.X heard the alarm ringing but did not move. The thought of facing another day at work
was too much. “May be I will call and say that I am sick.” He thought, but then he thought
otherwise. “I stayed away 2 days last week, and if I am going to be absent anymore I may run
the risk of losing my job.” Just then his wife walked in and said “ Come on, X it‟s a nice day.
Get up and have the breakfast with the children before you leave for work. I hate to see you
missing breakfast every day.”
X got annoyed. “What difference does breakfast make? I just hate to go to work. The work
is so boring now, you just go in, sit down and then leave at the end of the day. The repetitive
work is the thing I cannot stand most.”
“Oh come on honey, things can‟t be that bad. Look at the positive side- the pay is good, and
you are quite senior now after 12 years of service in a large company.” Said X‟s wife.
“The work is still hard, but it‟s the boredom and repetition that annoy me.‟ Responded X. “I
feel like I am wasting my time at this stage of my life. I think I will look for another job.”
“Well” his wife said, “I will not tell you what to do; that is your decision, but don‟t forget
that the children are getting older now, and we will have to pay extra fees next month when
the next term commences. Why don‟t you think about another job again next year?”
X thought, “She is probably right. We do need the money and it is a bad time to be short. I
guess I will have to think about another job little later.”
You are required to:

Identify the problems being faced by X as an employee of the company and suggest suitable
solutions to those problems.
109
3.The Super Management Trainee
Kathy had been employment office manager for just ten weeks. She had spent the first
weeks acquainting herself with office procedures and trying to get a feel for the needs of the
employment office The employment office handles the recruiting and selecting for a large
corporation employing about 10000 persons. It screens about 10000 people a year and hires
10-15 percent of those screened.
Kathy noticed a position requisition for a management trainee for one of the offices on the
south side of the city. This requisition had been on file for six weeks and had remained
unfilled. Kathy took it upon herself to fill the requisition as soon as possible. Two days later,
a very likely looking candidate for the position was referred to her from testing.
The individual who had been referred to Kathy was Willson, an aggressive Young man of
age 22. He had not finished college but had come within one semester of graduating. When
questioned, Willson revealed that he had quitted school to support his terminally ill mother
after his father had died of cancer. Willson was an impressive young man and his firm
handshake, pleasant smile, and quick wit impressed Kathy immediately. His scores on the
aptitude test were not as high as Kathy would have liked, but she felt that personal qualities
exhibited by Willson overcame these difficulties. Kathy felt it was very obvious that this
individual was the kind of person who would make a good manager and saw no need to
contact Willson‟s former employers. Kathy sent Willson to the manager of the office where
the position was located. Shortly thereafter, Kathy received a phone call from the manager
indicating that he shared her high opinion of this young man and Willson was hired.
Three weeks later Kathy got a telephone call from the manager. The manager most angrily
suggested that Kathy ought to be a bit more careful in the kinds of candidates chosen to be
considered as management trainee prospects. Willson had been discovered stealing from the
company and had been fired last week.
Kathy was mystified and amazed that she could have misjudged someone so badly. She
decided to check with Willson‟s former employers and found that the reasons why he had
110
left at all. She also found out that Willson‟s father and mother were alive and well. Kathy
spent a rather melancholy day reflecting on the difficulty of selecting good employees.
Questions:
1. Identify and figure out the selection process applied by the company.
2. Critically evaluate the selection process.
3. What are the errors associated with Kathy? How can they be prevented in future?
Source: Adapted from Mathis, R. L. and Jackson, J. H. (1988). Personnel / Human Resources Management,
4th ed, New York: West Publishing Company.

Janaka is the underwriting manager for a large insurance company located in the C city.
Recently one of his best employees had given two weeks‟ notice of her intention to leave.
She was expecting a baby soon, and she and her husband had decided that she would quit
work and stay at home with her new baby and her other two young children. Today Janaka
has scheduled to start interviewing applicants for this job. The first applicant was Delki
Pushpa. She arrived at the company‟s office promptly at 9 A.M., the time scheduled for her
interview. Unfortunately, just before she arrived, Janaka received a phone call from his boss,
who had just returned from a three-week vacation. He wanted Janaka to bring him up to
date on what had been going on. The telephone conversation lasted 30 minutes. During that
time, Delki was seated in the company‟s reception room.
At 9:30, Janaka went to the reception room and invited her into his office. The following
conversation occurred:
Janaka: Would you like a cup of tea?
Delki: No, I‟ve already had one.
J: You don‟t mind if I have a cup, do you?
D: No, go right ahead. (Janaka pauses, and rings his secretary Manjalee.)
J: Manjalee, would you prepare for me a cup of tea?
M: I‟ll bring it in shortly. You have a call on line 1.
J: Who is it?
M: It‟s Tony Patabathi, our computer company representative. He wants to talk to you about
the delivery date on our new computer set.
111
J: I‟d better talk to him. (Turning to Delki.) I‟d better take this call. I‟ll only be a minute. (He
picks up his phone.) Well, Tony, when are we going to get our machines?
This phone conversation goes on for almost 10 minutes. After hanging up, Janaka turns
again to Delki to resume the interview.
J: I‟m sorry, but I needed to know about those machines. We really do need them. We only
have a short time, so why don‟t you just tell me about yourself.
At that point, Delki tells Janaka about her education, which includes an undergraduate
degree in Commerce and an MBA, which she will be receiving shortly. She explains to
Janaka that this will be her first full time job. Just then the phone rings, and Janaka‟s
secretary tells him that next interviewee is waiting.
J: (Turns to Delki.) Thank you for coming in. I‟ll be in touch with you as soon as I interview
the other applicants for this job. However, I need to ask a couple of quick questions.
D: OK.
J: Are you married?
D: I am divorced.
J: Do you have children?
D: Yes, two boys.
J: Do they live with you?
D: Yes.
J: The reason I am asking is that this job requires some travel. Will this pose a problem?
D: No.
J: Thanks, and I‟ll be in touch with you.
Questions:
1. Outline the inadequacies of this interview.
2. What information did Janaka learn?
Source: Adapted from Rue, L. W. and Byars, L. L. (1988). Management: Skills and Application, 6th ed, Boston:
IRWIN.
112
5. Orientation at Warehousing of North America, Inc.
Warehousing of North America, Inc., is a chain of public warehouses in the US and Canada.
The corporate HR department requested that local HR managers develop their own
orientation programme but gave these managers few guidelines. About a year after the
programme was designed and installed, the HR manager decided that follow-up interviews
would be a useful way to learn how those who went through it have received the orientation
programme. Leslie was asked by the HR manager to interview Oliver, the newest warehouse
supervisor, about the orientation he had received. When asked about the programme, Oliver
made the following statement:
For an international company with nearly a thousand employees, I was very disappointed with the orientation
programme. It began the first day when the secretary in the HR department brought me in to see Mr. Chandana, the
general manager. I was in there for about a half hour. For twenty-five minutes of that time, Mr. Chandana was on the
phone. Most of the other top managers I was introduced to spend few minutes were either on phone or complaining
about their problems. By lunch, I seriously thought about quitting.
Luckily, my boss, the warehouse manager, spent a couple of hours with me after work the first day and explained all
the forms we use. I didn’t understand them all, but at least I had a general idea of the paper flow around here. It
probably took two weeks to figure out all the things I was supposed to do. I really felt foolish asking some of my
employees about these forms, and I was supposed to be the boss.
Whenever a new person starts with me, I make sure that they understand what all these forms are for. I figure that they
will ask about fringe benefits when they want to know about them. The important thing around here is to do the
paperwork right. My people learn about every form the first morning. It’s a lot, but knowing that paperwork is
important.
A number of other interviews confirmed Oliver‟s observations.

On the basis of what is given, what changes would you recommend in the orientation
programme?
Source: Adapted from Werther, B.W. and Davis, K. (1989), Human Resources and Personnel Management,
3rd ed. New York: Mcgraw-Hill Book Company.
113
6. Performance Appraisal at M Company
M Company is a rapidly expanding manufacturing firm situated in C City engaged in the
manufacture of Synthetic, Cotton and blended fabrics. Immediate superior annually rates the
employees by using graphic rating scales. The figure overleaf indicates the performance
appraisal form being used by the company.
The appraisals are discussed with the employees and are used to counsel them, to make
promotions and salary adjustments and to justify disciplinary actions. Recently, however,
three of the company‟s employees, who have not been given annual salary increment due to
their comparatively low ratings have met the Chairman/Managing Director to express their
dissatisfaction with the ratings they have received. They have argued that their ratings do not
accurately represent their qualifications or performance. They insist that community activity
is not properly a part of their job and that what they do off the job is none of the company‟s
business. They express their opinion that employees should organize a union and demand
that salary increases be automatic.
The above experience has convinced the top management that rating is a dangerous source
of friction and that its disadvantages outweigh its advantages.
a) Do you agree with the conviction of top management? Why?
b) What is the central problem in this case?
c) How do you suggest solving the central problem?
Source: Modified and expanded from the original case developed by Tripathi (1992), Personnel
Management and Industrial Relations, Sultan Chand and Sons, New Delhi.
114
M Company-Performance Appraisal Form
Appraisal for the period…………………to…………………………..
Name…………………………………………………………………………………..
Job…………………….. Section/Department………………………………….
Criteria Outstanding Satisfactory Unsatisfactory
1. Accuracy
2. Job Knowledge
3. Initiative
4. Cooperation
5. Safety/Economy
6. Communication
7. Commitment
8. Speed
9. Attendance
10. Community
Activity
Overall appraisal of the Manager (if overall appraisal is „outstanding‟ or „unsatisfactory‟ it requires
specific written justification).
Date…………………………………. Signature…………………………………
The manager explained to me this appraisal and my areas of strength and weakness.
Signature of the Employee……………………….. Date…………………………
115
Cases in HRM
1. Commencement
Sanoja Hettige, a recent graduate passed out from the Department of Business
Administration of the University of Sri Jayewardenepura, had not expected to meet again
Professor R.A.A. Perera, her lecturer in HRM in a short period.
Upon graduation one year before, Sanoja had accepted a job as a Bookkeeper/Payroll
Assistant at Building Materials Limited Liability Company engaged in wholesale and retail
sale of building materials. This company had three branches in three regions. Sanoja‟s degree
was BSc (Business Administration) Special. She had to take Personnel Management and
Labour Relations and Labour Law in the third year as compulsory subjects. A topic related
to Personnel Management had been selected by her for the degree dissertation in the final
year.
Although Prof. Perera was always delighted to see his former students and talks about their
careers and life progresses, he sensed immediately that Sanoja‟s visit was not entirely a social
one. Sanoja had just been promoted to the post of Personnel Manager in the Building
Materials Company. This had been an event that was usually a cause for celebration, specially
for a recent graduate like Sanoja. When she was hired for the Bookkeeper/Payroll Assistant
job, she had stated on her application her special interest in HRM. She never envisioned in
her wildest dreams being named the Personnel Manager of a hundred-employee business in
only one year!
After some discussion, Professor understood the reason that encouraged the decision of new
appointment was that the company recently had lost several labour cases and had to pay
compensation. It was also revealed that the company had expanded large enough, and the
owner-Managing Director of the company had decided to formalise the HR function.
Because of Sanoja‟s knowledge of the organisation and the payroll system, and the fact that
she was the only person in the company, who had ever studied HRM, she seemed to be the
logical choice.
116
Sitting apprehensively in Professor Perera‟s office room, she hoped to get some guidance.
She asked the Professor respectfully,
“Sir, …..Where do I begin from?”
Questions:
1. How do organisational HR functions evolve, either formally or informally?
2. Do you think Sanoja‟s entry into HR work is unusual? How do HR professional
begin their careers?
3. Organisations often react to both internal and external environmental forces. What
environmental forces exist for HR field?
4. Imagine that you are Professor Perera, how do you respond to Sanoja‟s question?
117
2.The Reluctant Receptionist
Udumbara Product Company has recently hired a Personnel Assistant, Nilanthi Pooja. Pooja
just received a University degree in Business Administration with second class (lower)
honours. Hamid, the Personnel Manager, was extremely pleased to find someone who had
some familiarity with basic management concepts and theory of personnel management and
industrial relations since he was the entire Personnel Department, except for a clerk-typist.
During the interview Hamid emphasized that he planned to have Pooja to work as his
assistant and that she would do some interviewing and be responsible for maintaining
employee records. Because the company has had about 350 employees, Hamid had been too
busy to prepare anything a job description except for some scrawled notes on the back of an
envelope. Everything went fine for the first week for Pooja. On Monday of the second
week, Hamid called Pooja into his office room and explained that there was another minor
duty that he had not mentioned to her. Hamid said, “ In order to get approval to hire you
from CEO, I had to agree that whoever was hired would be the relief receptionist from
11.30a.m to 12.30p.m every day. The reception board is usually quite busy and we wanted to
be sure someone who is capable would be the backup.” Pooja was not happy about this
assignment being sprung on her, but she agreed to try it for a while.
Within two weeks she was beginning to dread having to work the reception board an hour
every day. Also, she discovered that she was expected to be the relief if the receptionist was
sick or unable to work. On Wednesday and Thursday of the third week the regular
receptionist was sick and Pooja worked for her. On that Friday, Pooja told Hamid she was
quitting in two weeks. When asked why, Pooja replied, “You misrepresented the job to me.
You never said anything about my receptionist duties. If you had, I probably would not have
taken the job.”
Questions:
1. What is/are the problem/s being faced by the company?
2. Explain why the company is facing the problem/s.
3. How do you solve the problem/s?
118
3. X Development & Administration Department
X Development and Administration Department located in C city was a government

department set up for the purpose of promoting and administering an economic activity in Y
country. It was also responsible for the administration of a loan assistance scheme to the
members of the public who were engaged in that economic activity.
The organization chart of the department was as follows:
COMMISSIONER
DEPUTY COMMISSIONER
ADMINISTRATION BRANCH LOAN BRANCH
Snr.Asst.Comm. Snr.Asst. Comm.
Loan Approval Receipts & Loan Recovery

Unit Payment Unit Unit
____________ ___________ ____________
3 Asst. Comms. 2 Asst.Comms. 2 Asst. Comms. 2 Asst.Comms.
O.A.
C.C. C.C. C.C. C.C.
20 Clerks 20 Clerks 08 Clerks 20 Clerks
06 Peons 05 Peons 03 Peons 05 Peons
03 Labourers 02 Labourers 02 Labourers 02 Labourers
O.A= Office Assistant

C.C= Chief Clerk
The work in the Loan Branch was perennially in arrears, and the worst affected were the
Loan Approval and Loan Recovery Units. The backlog accumulation of work fluctuated
between four to eight weeks. In the normal process an application for a loan took three to
four months to get finalized.
119
The members of the public who came from various parts of the island seeking the services
of this department and who faced long delay adopted their own methods to overcome the
problem. Some people used influencing methods, others visited homes of the officers with
gifts and gratification and still others entertained officers at hotels and bars.
The newspapers now and again highlighted the situation prevailing in the department, but
nothing happened until one day one of the newspapers splashed scathing criticism leveling
the accusative finger at everybody responsible from the Minister downwards. It was titled
“Development & Administration of CORRUPTION” and went on to say how the officers
sell and the general public buys “delay and inefficiency”.
Within a week the Minister concerned took action. The Commissioner and the Deputy
Commissioner were replaced with two senior public service servants-Mr. Honest and Mr.
Trust who were well known for their integrity and discipline. Mr. Honest- the new
commissioner took immediate steps to deal with the problem in the Loan Branch.
1. He created a new section called the “General Office” and replaced it directly under the
charge of Mr. Trust. This unit was staffed with an Asst. Commissioner drawn from the
Loan Recovery unit, and five clerks drawn from the various sections in the Loan Branch.
The public had to transact business with this unit and the rest of the Loan Branch was
made out of bounds to the public.
2. All decision regarding approval, payment and recovery of loans in the respective units
were required to have the counter approval of the Commissioner or the Deputy
Commissioner.
3. Wednesday was declared the “public day” and all staff grades were asked to attend on
public inquiries.
4. Every Monday afternoon was set apart for the “Progress Evaluation” meeting where all
staff had to assemble and present statistics and analyze the actual progress made in the
previous week.
5. All letters of the public were to be replied within 14 days.
6. Posters were put up at suitable places informing, “Offer as well as Acceptance of Bribes
are Offences”.
120
Three months later there was a news splashed in one of the newspapers under the caption
“FROM THE FRYING PAN TO THE FIRE”. It spelled in detail how this department
demanded and degraded the public as “suspects” and deceived them by sending letters to the
effect “ your matter is receiving attention” when in fact the officers‟ attention was confined
to the sending of those letters regularly every 14 days. It added that the problems had
increased doublefold because the diagnosis was incorrect and the treatment aggravated the
problems.
Questions:
(a) Identify the central problem of this case and find the cause/s.
(b) Explain the solution/s for the problem.
Source: Adapted from the original case written by Late Prof. R.A.A. Perera (1987).
4.Heen Kendiriya
Mr. Gaambeera is the manager of Maradana (Zone 10 Colombo) branch of Mahaa Dhana
Bank. The Mahaa Dhana bank is one of the commercial banks in Sri Lanka and has over 50
branches in various district capitals and major towns in the island. The head office is situated
in Zone 1 of Colombo City.
Mr. Heen Kendiriya is a cashier – clerk in the Maradana branch for the past three years. He
had worked in the same capacity for three years at Anuradhapura branch. Also he had
worked two years as a general clerk in a Colombo mercantile office before he joined the
bank. He is 29 year old bachelor, whose home – town is Kagalle.
„H.K‟ as he is popularly known has passed G.C.E. (A/L) but could not enter the University.
Then he did a postal course and passed the National Higher Diploma in Entrepreneurship
1985, Open University. He is now doing the Chartered Accountancy course and has already
passed the Licentiate Level. He is also studying for the Institute of Bankers (Local)
Examination Part 1 stage 1.
121
H.K is not a high-speed worker, but is extremely accurate and very methodical. He has a
beautiful fist. He works without supervision and openly resents when detailed instructions
are given. He will try to walk away or “cut – short‟ saying “You want me to do this No? I
will do it.” (in Sinhala). If someone says “You don‟t know………. he really gets annoyed.
About a month back a serious verbal – clash occurred between him and Mr. Panditha
(another clerk) when……….. panditha in the course of argument said “ You don‟t
understand” Heen Kendiriya shouted back “what don‟t I understand…………..? You think
I am a baby? Don‟t try that stuff on me….” and so on. Finally the manager had to calm him
saying it was merely a slang that panditha used; that he never meant it.
Heen Kendiriya is often late on Monday because he visits his mother at week – ends and
travels from Kegalle. During the week he puts up in a small rented room at Battaramulla. He
normally eats take –home lunch and dinner packets.
H.K. never wants to work after office hours on week – days or on Saturday and Sunday
because he has to attend classes etc. He has good relations with superiors and customers and
peers. He is quick tempered and had confronted slightly with a few peers whom he identifies
as “foolish talkers.” There are 2 or 3 clerks whose company he does not enjoy.
In February he applied for 2 weeks leave for his Charted Accountancy Examination and the
manager allowed him only one week. He was frustrated about it and once or twice made
comments to his friends to be heard by the manager that “some people don‟t seem to like us
to get on in life”
Two weeks back Mr. Panditha told the manager that Heen Kendiriya is doing motor –
vehicle sales brokerage as a sideline with his elder brother who is a well-accomplished motor
mechanic and runs a small garage. They are already running a small motor spares shop with
the garage at Kegalle.
Heen kendiriya cannot converse fluently in English. So he generally replies in mono syllables
“Yes” “No” etc. He can well understand anything said in English but he seems to be
sensitive to talking in English.
122
About a month back when the manager and assistant manager were exchanging views about
the branch, employees etc. the assistant manager said that on few afternoons when H.K.
came near him after lunch he smelled liquor when he spoke, but he did not display any
abnormality.
The head office calls H.K.‟s annual performance evaluation report in April each year.
The manager received the evaluation form and the letter calling for a report on H.K.
yesterday. He has to send it by 8th May 2000, which means he has week‟s time to send it.
Questions:
(i) Assume yourself to be the manager of the branch bank and prepare the
performance evaluation report on H.K
(ii) Identify and name the assessment method used in this form
(iii) Critically examine the form and make suggestions to improve the validity and
reliability of the assessment form.
(iv) An organization can adopt the policy of evaluating all employees as at a particular
date or the policy of evaluating at different dates spread over the year. What is
the policy adopted by Mahaa Dhana Bank and what are the problems associated
with that policy?
Chart 1
Lost Time
2000 2001
J 2.38 J 2.13 J 2.18

F 3.02 A 1.12 F 2.36
M 2.40 S 1.45 M 3.02
A 4.06 O 2.39
M 2.39 N 2.18
J 2.23 D 3.12
Lost time is accumulated late attendance for the month.
123
Chart 11
Leave Record
Entitlement 2000 2001
Medical 14 14 05
Casual 07 07 03
Annual 21 21 07
No pay - 03 -
Absent - 02 -
Chart 111
Staff Cadre in Maradana Branch
Manager 01
Asst, Manager 01
Clerical staff including
Stenographers, Typists,
Cashier Clerk etc. 25
Security 09
Minor Staff 10
Chart 1V
Organization Chart – Maradara Branch
Manager
Asst . Manager
Transactional Investment Pawn Miscellaneous Administration

Accounts & Brokering Services
Services Loans
124
Performance Appraisal Form
The Reporting officer should indicate the relevant evaluation and his own rating assessment
applicable to the particular group of evaluation against each factor listed.
Evaluation Rating
„A‟ - Excellent 100, 95, 90, 85, 80
„B‟ - Good 79, 75 , 70, 65, 60
„C‟ - Average 59, 55, 50, 45, 40
„D‟ - Poor 39, 35, 30, 25, 20
„E‟ - Very Poor 19, 15, 10, 05, 00
Personal strengths/ Weaknesses Evaluation Rating Any other comments
1. Accuracy
The extent to which the individual

works without errors, with neatness and
orderliness.
2. Speed
The individual‟s ability to complete the

work assigned with the utmost expedition
for better customer service and higher
productivity.
3. Job Knowledge
Range of knowledge and experience

one possesses to carry out assigned
responsibilities.
4. Initiative
Anticipation of task requirements

without constant guidance and
supervision.
5. Quantity of Work
Output achieved in proportionate to the
time consumed.
125
Evaluation Rating Any other
Comments
6. Commitment
To work / Application Diligence shown

in pursuit of positive results.
7. Communication
Ability to communicate and interact with

customers and the staff effectively.
8. Common Sense/ Mental Alertness
Resourcefulness and the ability to tackle

Situations sensibly.
9. Appearance/ Dress & Mannerism

Attractiveness and acceptability of
Behavior.
10. Co -operation
Willingness to carry out instructions and

support the team efforts.
11. Customer Service
Ability to maintain high customer service

and foster the Bank‟ s image.
12. Total Conduct
Honesty Discipline
& General conduct.
Total
126
Overall percentage Overall
Total
 100 =
1200
(Depending on the overall Evaluation percentage rating, please select the appropriate
overall evaluation by reference to evaluation table at the beginning)
Special Comments and Training Needs
1. What do you consider his / her the main strengths and

the extent to which he/she possesses these qualities.
2. List the areas where training is to be provided in

order to sustain the individual‟s performance or to
improve.
3. Any other comments.
Date…………………..
Source: Adapted from the original case written by Late Prof. R.A.A.Perera (1987).
127
5.Supervisory Training Course
Professor Maithri was contacted on the telephone by the Assistant Director of Labour -
Industry Service Section and was invited to teach a course to the workshop foremen in the
Super Machine Ltd. He suggested that Prof. Maithri visit the HR Manager at Super
Machines Ltd. to become oriented to the company and its problems.
Super Machines Ltd. employed about 300 people and produced electrically operated motors
and different kinds of machines using these motors. The Personnel Manager told
Professor Maithri that he liked to take advantage of Sarasavi University's (University to
which Professor Maithri belongs) programme titled "University -Industry Cooperation"
designed for mutual assistance by having the University give one course for the foremen
every year on some aspects of supervision and industrial relations. The full cost of these
courses was paid by the labour Department from a project funded by an international
organizations in the country.
As the company could not spare the foremen during the working hours the course was given
one afternoon each week for ten weeks 4.00 to 6.00 p.m.. The foremen came directly to the
course from their jobs. They received one and a half time rate overtime for these extra
hours. Because the company lacked training class facilities the HR Manager arranged that it
be held in the quarters of a club patronized by the HR Manager and some other executives,
located a few blocks away from the factory.
This club was situated in an old house in a quiet part of the town. A makeshift class -room
was set up in the former dining room of the house. Some card tables ware placed to make a
conference type layout. The black-board consisted of an old table-top painted black placed
on a table and leaned against the wall. Light was provided by an old fashioned chandelier
from which several bulbs were missing.
On the Monday afternoon of the first class Professor Marthri found that he had to
introduce himself to the class of sixteen foremen . The HR Manager had sent a message
through one of the foremen to say that he was busy and could not make it. Because there
128
was no chalk for the black board one of the foremen volunteered to run across the road to
buy some.
Professor Maithri had prepared a course outline that contained the following topics:
1. Nature of a foreman's job,

2. What foremen expect from management ,
3. What workers expect from foremen,
4. Elementary aspects of organization,
5. Motivation,
6. Making work assignments,
7. Coaching,
8. Complaints and grievances,
9. Leadership
10. Discipline.
He made weekly assignments of about 25 to 30 pages in a text book on supervision. The

classes were conducted on a lecture basis with some case studies used.
Professor Maithri noticed that the men were always late for the class although they seemed
to be in and about the building. Finally at 4.00 p.m. on the third week he decided to explore
the building . To his surprise he found most of the men drinking beer at the bar located in a
room at the far end. In class the foremen were courteously attentive on the surface but
basically seemed unenthusiastic. In many of the discussions they stated that they had learnt
about various aspect of human relations and supervision in courses given to them by other
instructors in the previous year. Professor Maithri began to wonder why he had been invited
to repeat the same things. The men said on more than one occasion that the ideas about
leadership and human relations contained in the book and in the professors talks were O.K.
in theory, but they would not work at Super Machines Ltd. because of Mr. Goranadu the
Factory Manager. They claimed that Mr. Goranadu knew nothing about human relations
and was tough to deal with, that the Union always went directly to the HR Manager. With
129
the grievances and that they, as foremen had no authority. All discipline was handled by the
HR Manager.
Professor Maithri observed to himself that these foremen felt more like workers than
members of the management. They even dressed in blue shop work clothes. The casting
section foreman made the following statement to him one day: “I have worked in the
company for 25 years and have been a foreman for 15 years. But may be I should have
taken a job somewhere else. One day I was standing on the street corner when a truck from
the Acme Ltd. went by. The truck driver must have just got his pay envelope, because he
threw away the empty cover and I picked it up. He gets Rs.10600 and that is a lot more than
what I get as a foreman.”
(i) What could this foremen training programme accomplish for the company?
(ii) What are the merits and demerits of this training programme ?
(iii) If you find any demerits and under (ii) above to whom and to what reasons would you
attribute them?
(iv) If you were the HR Manager how would you have run this training programme?
130
6. The Accident
Driver Alloysius and cleaner Gunawardena set off in van No.26 Sri 5555 from the
company‟s premises in Colombo at 2.30 p.m. with a load of good to be delivered to the
company‟s wholesale agent at Kurunegala. Both of them were on duty in the afternoon shift
1.00 p.m. to 9.00 p.m. They were scheduled to reach Kurunegala – distance of 58 miles, in
two hours, spend a further one hour for unloading and rest and return to Colombo by 7.30
p.m. The Company has 15 vehicles, which are used to deliver goods to the company‟s
wholesale agents and other major customers. The general rules of conduct for the employees
state that consumption of liquor as well as being under the influence of liquor while on duty
are considered serious offences punishable by dismissal. The special rules applicable to
drivers and cleaners state that carriage of unauthorized passengers and goods in company‟s
vehicles is considered a serious offence punishable by dismissal.
At about 8.00 p.m. the company‟s office in Colombo received a telephone message from
Gampaha police station (18 miles from Colombo) informing that van No 26 Sri 5555 had
met with an accident at about 7.15 p .m. at Imbulgoda (13 miles from Colombo on Colombo
– Kandy – Kurunegala Road) and the four persons traveling in the van were found injured
and have been admitted to Government District Hospital, Gampaha. This message was
conveyed to the General Manager, who immediately made arrangements for the HR
Manager and the Transport Officer to visit the scene of accident and the injured in hospital.
It was about 9.00 p.m. when the HR Manager and Transport Officer reached the scene of
accident. It was a straight – stretch of road and it was evident that due to the fast speed the
driver apparently had lost control of the van which had stretched to the left edge, hit a
culvert guard, spinned up, and turned over a number of the times and hit against a coconut
tree which was about 15 yard away from the road. The van was a total wreck. There was a
strong smell of arrack emanating from the wreck and the two constables on duty showed
pieces of four large bottle containers and said that at the time of the accident the van had
been transporting illicit arrack.
131
The HR Manager and the Transport Officer then visited injured at hospital. Both the driver
and cleaner had serious injuries but they were declared out of danger. The Medical Officer
showed two other people who were supposed to have travelled in the van and who had
sustained bruises and cut injuries apparently having fallen over broken pieces of glass. The
Medical Officer added that all of them were found to be under the influence of liquor.
Thereafter they visited the Gampaha Police station where they were told of the details as
recorded by the police. The van at the time of accident had been traveling at a very fast
speed, the driver as well as the other occupants were found to be under the influence of
liquor and that the police will be charging the driver for driving a vehicle under the influence
of liquor, driving recklessly, negligently and for transporting illicit liquor.
It was about 11.00 p.m. when they returned to office and it took another 30 minutes or so to
make an oral report to the General Manager. The following morning by 6.30 a.m. the HR
Manager came to office and perused through the personnel files of the two employees to
inform their next of kin. But no such records were available in the files. Then he rang up
transport section and asked the officer –in-charge to send up to him any person who knew
where Alloysius and Gunawardena resided.
Then he looked into the telephone directory and dialed up the number indicated as that of
District Hospital Gampaha to ascertain the condition of the injured. As he listened on came
a massage which said, “The number you dialed is not in use…” He dashed the receiver on
the cradle and stared at the tables and chairs, which were still empty and looked ghostly.
(a) As the HR Manager what has he to do now as his part of the job arising out of the
accident?
(b) Do you contemplate taking disciplinary actions against Alloysous and

Gunawardane? If so when and how do you propose to take such actions?
132
7. Sangeeth Company
Mr.Sangeeth was very worried about the deteriorating labour - management relations of
Sangeetha Company, a musical instruments factory in Sri Lanka. His father founded the firm
in 1977. Since the owners lived in apartments over the factory, Mr. Sangeeth had been
acquainted with the business from childhood. He had studied sciences and was interested in
mechanical and technological innovations. He had worked on almost all of the machines in
the factory and was thoroughly familiar with all of the technical processes employed.
Mr. Sangeeth began working in the factory in 1970 when he was twenty. In order to keep
with developments in the music industry, he went to Europe after having working in the
factory for six years. While in Europe, he had visited many factories and worked in a number
of them. At the British Museum, he learned a great deal about the science of music and
technology of making musical instruments. Whenever he came across a method or device
which could improve efficiency or productivity, he sent a detailed description of it to the
factory in Sri Lanka. Most of these innovations were adopted immediately and proven highly
successful.
Mr. Sangeeth returned from Europe with ideas of some tool - making machines which were
not available in Sri Lanka. He used these to develop more labour saving equipment . Among
the new machines which he built was a pipe - drawing machine. Formerly this work was
done hand - a very slow process.
In addition pipes drawn by hand were generally inferior to those made by machine. Mr.
Sangeeth's machine remarkably improved both precision and productivity. A device for
shaping hyperbolic cones from conical brass tubes was equally successful. Mr.Sangeeth
estimated that these developments saved the company about Rs. 50000 per year.
Mr.Sangeeth believed that the owner should be friendly and sympathetic with the factory
workers. He dressed in simple clothes and arrived at the factory punctually every morning.
Going everywhere in the factory, he freely helped workers to solve technical difficulties and
often worked the machines himself. Sometime he trained workers on new machines. In
133
addition to giving advice about personal and family problems Mr. Sangeeth gave money to
needy workers and visited them when they were sick.
Mr.Sangeeth believed he should lead a simple life in order to satisfy the worker's ideal. He
thought of getting married to a girl sharing such a view. He though that the sight of ladies
dressed in fine clothes and jewellery and riding in expensive cars might make workers more
aware of their poverty.
In July 1996 workers at the company were behaving boisterously and were making demands
which Mr. Sangeeth thought were unreasonable. Mr.Sangeeth thought the wages in the
factory were very reasonable and the bonuses paid were adequate. The company followed an
open door policy for grievance handling.
As a result of signs of this unfavourable condition Mr.Sangeeth decided to have a meeting

with company Accountant and Marketing Manager.
" I don't think we need to worry about a union. Our company pays good wages and has a
sound bonus programme." said the Accountant. " Sure our pay and bonuses are fair. But a
union could promise our workers even more. Besides, workers don't always join unions for
higher pay or bonuses. They may want a union as a protest of company policies or simply
because they feel being unfairly treated.", Marketing Manager commented.
"Well , if any supervisor is treating workers unfairly, they can tell me. I will take action
quickly. Since management at this factory takes care of workers, I don't think workers should
want to join a union. If they do, we should try to stop it before it gets out of hand.", the
owner added with little thought. Also he said thus.
" I am certain that the union leaders are stirring up resentment against injustice which does
not really exist. Several times I noticed union leaders of Sri Lanka workers' union around the
factory. I believe in that the leader of the Sri Lanka worker' union is trying to make money
because he is unable to earn a living in the law profession, for which he was trained."
134
The meeting ended without any action or strategy for improving LMR.
In October 1996 the union officials promised workers higher wages and bonuses if they
would join the union. They told the workers that the owners had been exploiting them.
By the end of the year 107 workers out of 204 workers working for the company joined the
union and established a branch in the company.
Questions:
A . Identify and mention the factors which have contributed to the decision of workers to
unionize.
B. Examine and comment Mr. Sangeeth's perception of LMR being faced by the company.
C. Evaluate the policy of grievance handling being applied by the company. Suggest an
appropriate policy and procedure of grievance handling for the company.
D. Assume that the company management has to reach a collective agreement with the
union. If the CEO consults you, what advice do you give him with respect to preparation for
bargaining, negotiation for an agreement and administration of the agreement?
E. Assume that the trade union enters a collective agreement with the management which
provides for a 20% wage increase and the management decides to grant this benefits only to
107 workers who are members of the union. Do you agree with the decision or not? Why?
F. LMR should be cordial or at least there should be no tension in the relations for the well -
being of all concerned- owner, managers and workers. Describe briefly four strategies that
can be followed by the company for good LMR.
135
Ananda Gunaratna, Assistant General Manager (Marketing), of the Rupee Corporation

announced that Nihal Perera had been appointed to succeed Martin Fernando as the Sales
Manager. Immediately after the announcement was made three other men in the department
lodged a protest against this promotion. At the suggestion of Perera, Gunaratna decided to
“have a chat” with each of the three disappointed men the next day.
The Rupee Corporation was a large manufacturer of an extensive range of bathroom fittings,
household and industrial hardware items, and cutlery. The company product lines comprised
several hundred different items. It dealt directly with industrial buyers and with retailers all
over the Island. The marketing division had about 150 employees of whom about 85 were
employed in the sales department. The company was planning for export operations in the
near future.
The sales department was under the general supervision of Peter Jayasinghe, General
Manager, and under the immediate supervision of Gunaratna. Tilak Panditaratne, the
Chairman, was concerned, only with broad policy and seldom, if ever, involves himself in the
day-to-day operations. The marketing division was divided into four departments, one of
which was the sales department.
The functions of the sales department were divided into four subs –departments. Perera was
Assistant Sales Manager (ASM) in charge of wholesale (consumer) sales. Jayawardena was
ASM in charge of sales to industrial customers. Davidson was ASM in charge of salesmen
training and had the most intimate contacts with the salesmen who worked under both
Perera and Jayewardena. Weerakoon was ASM in charge of pricing and of the actual physical
distribution of the products.
In Perera‟s opinion all four of them i.e. Perera, Jayawardena. Davidson and Weerakoon had
worked very harmoniously until the promotion was announced.
136
Jayewardene had always been considered an excellent worker by Fernando. He had passed
the GCE A/L Examination, was 35 years old, and had 12 years experience with the
company. He did not talk much to anyone while at work, although he was always agreeable
and everyone in the department liked him. According to Fernando he had not expressed a
desire to progress far in the organization. Fernando had attributed this lack of ambition to
the fact that Jayawardena had a private income (he was from a well rich family with many
properties) equal to his salary from the Rupee Corporation.
Weerakoon was the eldest employee in the sales department and next oldest in the marketing
division. He was 45 years old, had been to university and had married many years ago. He
and Jayewarddna were good friends and usually they had lunch together. Weerakoon‟s work
in the sales department was perhaps the most difficult and certainly very specialized.
Davidson was a conscientious, efficient worker, and good at detailed work. He was 36 years
old, a sociology graduate, and had been with the company for 13 years. He had married
about two years ago. At sometimes he was considered by his associates to be bitter, moody,
and “had to get along with”. Fernando had heard his remarks on a number of occasions that
he did not want a higher position in the company because he would be asked to shoulder too
much responsibility.
Four girls who were stenographers assisted the men in the sales department. These girls also
performed clerical services of a routine nature. Neela and Meena helped the department
head; Rita worked for Perera and Jayawardena, and Soma for Davidson and Weerakoon.
Meena advised the three other girls and acted as an informal supervisor. The girls were
considered very good workers, and were popular with the employees of the entire marketing
division. The only exception was when there were occasional clashes between Davidson and
Rita. Often they did not speak to each other (except when necessary) for days at a time. Rita
was a rather proud girl but was a good worker and everyone got along with her except
Davidson.
Nihal Perera had made fairly rapid progress in the company. When he graduated (in
Commerce) six years ago, he came to work in the company in a purely routing capacity in
137
the marketing division. He worked under Mr. De Silva‟s direction, learning about
promotions, and in general, other aspects of marketing. It was believed that some of the
promotional ideas put forward by him had proved really successful. De Silva and Gunaratne
considered Perera to be an ambitious and willing worker who was well liked by his fellow
employees. After two years in the promotion department Perera was transferred to the sales
department. This department had relationship with all the other departments within the
marketing division and also with production and finance divisions.
Six months after Perera started workings in the sales department he was interviewed by
Fernando who expressed satisfaction with his work. He stated that he was looking for
someone to understudy his job so as to be able to step into it whenever he might earn a
promotion. Fernando said that he had often mentioned this idea to the others in the
department but had never been considered. Fernando had laid out a two-year programme of
training for Perera, which was designed to give him experience in all aspects of work in the
department, its relations to other departmental chiefs within the division, and with other
divisions of the company. The other men in the sales department knew that Perera was
getting this training. They had, according to Perera, indicated both directly and indirectly that
in their opinion he was wasting his time. Even though they made fun of him about this
training, Perera spent much of his spare time learning about the work and procedures of the
department, and was able to get the help from nearly everyone in solving new problems
when they arose.
Six years after joining the company and four years after his transfer to the sales department,
Perera was promoted to succeed Fernando as sales Manager. Fernando had an accident and
had to retire prematurely, and at very short notice. He recommended Perera as his successor.
Panditharatna though at first, that Perera was too young and had insufficient experience on
the job. However, both Fernando and Gunaratna insisted that Perera could handle the work,
and that he was well qualified by his training for the vacancy. Jayasinghe, the General
Manager, with Panditharatna‟s approval, issued an order promoting Perera as Sales Manager.
Gunaratna arranged to have Jayawardena, Davidson and Weerakoon come to his office
together, at which time he announced to them that Panditaratna had approved the
appointment of Perera to succeed Fernando as Sales Manager. Each of the three men
138
expressed disapproval of the move. This reaction surprised Gunaratna, but because of other
pressing engagements he was unable to discuss the matter further at that time. He told them
that he would think it over. That night Gunaratna telephoned Perera to inform him of this
new turn in the event. It was at that stage that Perera suggested that Gunaratne speak to
each of the other three men, separately, the next day.
Questions:
1. Identify the central problem/s in this case and explain cause/s of the problem.
2. What is your evaluation regarding employee promotion method of rupee
Corporation?
3. How do you analyze administratively behaviours of Jayawardena, Davidson and
Weerakoon?
4. What do you recommend as steps that Mr. Gunawardena should take?
Sirisena Gamage had been working in Ajantha Glass Factory for more than 19 years. His
service reports were excellent and there was no complaint or accusation against him so far.
He was popular as a well-disciplined employee in the matter of observing company rules and
regulations. He made his first mistake on 05th, October 1999. He did not hear the sound of
the bell, which was used to restart the work because he had fallen asleep at teatime near his
machine. The main supervisor who was going by overseeing the work at the machine section
noticed Sirisena sleeping. Sirisena who had slept during the time when the machine should
be on operation was accused for an infraction of rules at the factory and had to face a
disciplinary inquiry.
Sirisena admitted the fault. His defence was that he had fallen asleep as he was suffering
from starvation without having the usual meal, i.e. rice for several days. Both the Personnel
Manager and the supervisor decided to give the most lenient penalty. To suspend the work
without pay for 5 days was the minimum lenient penalty given so far in the company for an
139
employee who had been caught sleeping during the working time. The penalty was given to
Sirisena by reducing it up to three (3) days.
But Sirisena‟s union does not accept this as a lenient penalty. “ Is this a lenient penalty?
Three days wage is a one tenth (1/10) of this man‟s monthly wage. What a lenient penalty
you have given at a time of starvation!” Thus said the union regional secretary.
“ In any other company this penalty is given for an offence done on two or three occasions.
You have cut the wage for the first time.” So saying, he further protested. According to the
company‟s conventions, the management did not agree to reduce the penalty further. This
problem was forwarded to an arbitrator accepted by the both parties according to the
collective agreement between the union and management.
Questions:
(a) Is it essential to punish Sirisena?
(b) What is the central problem in this case?
(c) If you are the arbitrator, how do you solve the central problem?
Acknowledgement: This case was translated and modified from the original case written in
Singhalese by Bandarage, D.S. (1975) Management and Administration: Case Study Method,
Colombo: Sudarshan Management and Industrial Consultants Ltd.
140
Skills Builders in HRM
1.Selecting a Management Trainee (HRM)
Following are the brief particulars of three applicants for a post of Management Trainee
(HRM) in Dawn Company:
Applicant A Applicant B Applicant C
Experience (years) Nil Nil 2
Age (years) 24 25 28
Academic BSc (Bus Ad) Sp BSc (Bus Ad) Sp B.Com
Qualifications (HRM) with first (HRM) with second
class upper
IQ Test Score 70/100 75/100 65/100
Ranking by:
Interviewer I 1 2 3
Interviewer II 3 2 1
Interviewer III 3 1 2
Medical Exam OK OK OK
Availability Immediately Immediately 4 weeks
Apparent Eagerness Strong Strong Moderate
Background Very Good Excellent Very Good
Investigation
Research Experience Nil 6 months Nil
Professional Nil Nil AAT full and
Qualifications Chartered Acc II
Other Information Cousin of the No relationship Son of the HR
Chairman Manager
Assume that you are required to select a candidate for the post. Whom do you select? Why?
141
2.Identifying Different Types of Criteria of PE
Following is a list of Performance Evaluation Criteria that may be used in evaluating

employee job performance.
Job Knowledge Creativity

Quantity of Work Quality of Work
Initiative Commitment
Discipline Co-operation
Temperament Integrity
Attendance Punctuality
Loyalty Leadership
Communication Ability Administrative Ability
Organizing Ability Planning Ability
Cost Consciousness Cleanliness
Knowledge of the Business Health
Ability to Handle People Drive
Speed in Setting Personal Appearance
1. Classify the above criteria as Objective and Subjective.

2. Classify the same according to Traits, Behaviours and Results.
3. Identify very important criteria to be used actually for any type of employee category.
142
3.Writing PE Standards of Subjective Criteria
A performance evaluation form of a Security Services company has the following PE

standards for four subjective criteria such as Discipline, Accuracy, Job Knowledge and
Dependability:
Discipline (the extent to which employee conforms to rules and regulations)
1. Perfect disciplinarian; an example to other employees

2. Outstanding, extremely honest and self disciplined
3. Disciplined and honest
4. Sometimes indisciplined and lacks self-control.
5. Indisciplined; a bad example to others
Accuracy (the extent to which the employee shows care and precision in performing the
duties)
1. Perfectly accurate
2. Always precise and accurate
3. Maintain a fair standard of accuracy
4. Makes many mistakes.
5. Frequently makes many errors.
Job Knowledge (the extent to which the employee knows how to perform all the duties)
1. No comprehension of the requirements of the job.

2. Insufficient knowledge of the job. Resists criticism and instruction.
3. Adequate knowledge for normal performance. Will not voluntarily seek
development.
4. Thorough knowledge in most phases. Has interest and potential toward personal
growth.
5. Exceptional understanding of all phases. Demonstrate unusual desire to acquire
information.
143
Dependability (the ability to do required tasks well with a minimum of supervision)
1. Is very unreliable. Requires close supervision.

2. Is sometimes unreliable. Requires more than average amount of supervision.
3. Is generally reliable. Requires normal supervision.
4. Is reliable. Requires little supervision.
5. Completely reliable. Can be left without supervision or requires absolute minimum
of supervision.
i. Identify the weaknesses in relation to the above.

ii. Redevelop the above so that they become less subjective and less
defective.
Interview is the most widely used selection method in industry. There may be some
common errors of the interviewer lowering the effectiveness of an interview.
a) Explain types of errors that arise with the interviewer who assesses the suitability of the
applicant for a job.
b) Following examples are typical interviewer errors. Classify each error according to the
types of errors you have mentioned in (a):
i. A candidate who wears no tie to the interview is rejected.
ii. Some jobs are for males and others for females.
iii. To consider a candidate‟s years of experience as the most important
criterion for selection.
iv. I prefer supervisors who are tall.
v. To give a female candidate a high rating in every espect as she is very
attractive.
vi. A candidate with a receding forehead is rejected as the physiognomy
categorises such an individual as a criminal.
vii. “Do you think that you are hard working?”
viii. Spending the entire interview to tell the candidate about the company
plans and benefits.
144
ix. “I want a person who likes travelling. Do you enjoy travelling?”
x. Using the interview to tell the candidate how important the
interviewer‟s job is.
5. Job Evaluation 1
The following is a list of non-managerial jobs available in a Cigarette-Distributing firm.
Cashier
Van Salesman
Bicycle Salesman
Unskilled Laborer
Skilled Laborer
Counter Salesman
Clerk
(1) Evaluate the above mentioned jobs according to the General Ranking Technique.
(2) If you are required to use the Paired Comparison Technique to do the Job Evaluation,
calculate the number of comparisons/pairs.
(3) Evaluate the same jobs by using Paired Comparison Technique.
6. Job Evaluation 2
Listed below are four key factors that can be used to evaluate jobs available in an
organization (under the method of Point System).
Competence
Effort
Responsibility
Working Conditions
You are required to:
(a) Assuming above factors are common to all the jobs, classify them into sub critical
factors.
(b) Write a one-sentence definition for each sub factor.
145
(c) Determine five levels of factors and define each level relating to each sub-factor.
(d) Introduce a total point of 100 and allocate points first among the critical factors and then
sub factors by considering relative contribution of each factor to the job success and
organizational success.
(e) Now develop the Point System Matrix.
7. Welfare Scheme
X2 Company, which deals with activities such as motor engineering and importing and
selling re-conditioned motor vehicles, has formulated a welfare scheme to implement from
this year. Objectives of the scheme were:
To improve human and industrial relations in the firm and to give some relief for
economical difficulties being faced by employees owing to higher inflation in the country.
Details of the scheme are below:
(a) To establish a medical center and give external treatments to employees through a part-
time doctor.
(b) To commence a loan program so that employees can borrow at a lower rate of interest
(10%) for the following:
i. Distress loan ii. Purchasing a bicycle iii. Purchasing vehicles from
the company (once for five years).
(c) To open a canteen with facilities to give foods and beverage to employees at lower
prices.
(d) To start a health insurance program for employees. This will help employees, their
parents and direct dependents. While the company should contribute 50% employees
should contribute the rest. The company will pay monies that should be paid by
employees at the outset of the year and then they will be cut from employees‟ monthly
salaries as installments. This is compulsory for all employees.
(e) To reserve RS 5000/- annually for sports, tours and picnics.
The CEO of this company expects advice from you before deciding and implementing the
above scheme. Prepare a report containing your advice.
146
View publication stats

HRMManual122018tobeuploaded PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

HRMManual122018tobeuploaded PDF

Загружено:

Авторское право:

Доступные форматы

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Course Manual On HRM 1340: Human Resource Management Year I: Semester

Book · May 2018

Quality of Work Life View project

Labour-Management Relationship View project

The user has requested enhancement of the downloaded file.

HRM 1340: Human Resource Management

Department of Human Resource Management

TEAM OF LECTURERS IN HRM

This manual was prepared by Senior Prof. Dr. Henarath.H.D.N.P.Opatha, (then

Senior Prof. Henarath H.D.N.P.Opatha

Course Title: HRM 1340 Human Resource Management

Course Director: Senior Professor and Literarum Doctor H.H.D.N.P.Opatha

Course Coordinator: Dr. (Mrs) G.D.N. Perera

Methods of Evaluation: Continuous Assessment 30%

Also it is expected to cover the following:

Skill Building Applications in HRM

Recommended References (In addition to the manuals):

Course Lecturing Plan –1

According to the above definition of HRM,

* To increase net assets of owners.

(d) Efficient utilization of HR means optimum use of employees by eradicating (or

The Generic Purpose

Employee outputs (Number of units produced)

3. To increase Quality of Work Life (QWL)

4. To ensure Legal Compliance

* Shop and office employees Act

HRM in an organization (specially private) should be performed in compliance with

1. To procure right people at the right time to do the right jobs.

Health & Safety

Source: Opatha, 2002, Performance Evaluation of Human Resources

Activity 1.1: Discuss the following statement:

Why is a Separate HRD for an Organisation?

Organisation of the Department

Figure 1: HRD in a Small Business Organisation

Figure 2: HRD in a Medium Size Business Organisation

Production HR Marketing Finance

HR Officer HR Officer (Employee

Manager Manager Manager Manager

Figure 4: Field Departmentalisation

HR Manager HR Manager HR Manager HR Manager

HR Manager HR Manager HR Manager HR Manager

HR Manager HR Manager HR Manager HR Manager

Figure 6: Employee Departmentalisation

HR Manager HR Manager HR Manager HR Manager

Figure 7: Business Departmentalisation

HR Manager HR Manager HR Manager HR Manager

HR Manager HR Manager HR Manager HR Manager

HR Manager HR Manager HR Manager HR Manager

Activity 2.1: Discuss each figure.

The Role of HRD

Staffing the HRD

Activity 2.2: Differentiate between a HR Specialist and a HR Generalist.

1. Efficiency elements, which include division of labour, standardisation and

Trade Off Between Efficiency and Behavioural Elements

1. Familiarise with nature & type of work of

2. Identify and select job/s to be analysed

3. Develop a JA Information Format

1. Forecast future demand for HR.

3. Compare forecast demand with estimated

4. Develop strategies to be taken.

5. Assess HRP effort.

2. Identify and arrange possible replacements (succession planning)