HRMTQM Research

Human Resource Management
CHAPTER 1: INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT
1.1: DEFINITION OF HRM
Human Resource Management (HRM) is an operation in companies designed to
maximize employee performance in order to meet the employer's strategic goals and objectives.
More precisely, HRM focuses on management of people within companies, emphasizing on
policies and systems.
In short, HRM is the process of recruiting, selecting employees, providing proper orientation and
induction, imparting proper training and developing skills.
Human Resource Management (HRM) also includes employee assessment like
performance appraisal, facilitating proper compensation and benefits, encouragement,
maintaining proper relations with labor and with trade unions, and taking care of employee safety,
welfare and health by complying with labor laws of the state or country concerned.
https://www.tutorialspoint.com/human_resource_management/human_resource_management_introduction.htm
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a human
resource manager fall into three major areas: staffing, employee compensation and benefits, and
defining/designing work
https://www.inc.com/encyclopedia/human-resource-management.html
Human resource management (HRM or HR) is the strategic approach to the effective
management of people in a company or organization such that they help their business gain
a competitive advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives
https://en.wikipedia.org/wiki/Human_resource_management
1.2 Scope of HRM
The scope of HRM is very wide. It consists of all the functions that come under the banner
of human resource management. The different functions are as follows −
Human Resources Planning
It is the process by which a company identifies how many positions are vacant and
whether the company has excess staff or shortage of staff and subsequently deals with this need
of excess or shortage.
Job Analysis Design
Job analysis can be defined as the process of noticing and regulating in detail the
particular job duties and requirements and the relative importance of these duties for a given job.
Job analysis design is a process of designing jobs where evaluations are made regarding
the data collected on a job. It gives an elaborate description about each and every job in the
company.
Recruitment and Selection
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With respect to the information collected from job analysis, the company prepares
advertisements and publishes them on various social media platforms. This is known
as recruitment.
A number of applications are received after the advertisement is presented, interviews
are conducted and the deserving employees are selected. Thus, recruitment and selection is yet
another essential area of HRM.
Orientation and Induction
After the employees are selected, an induction or orientation program is organized.
The employees are updated about the background of the company as well as culture, values,
and work ethics of the company and they are also introduced to the other employees.
Training and Development
Employees have to undergo a training program, which assists them to put up a better
performance on the job. Sometimes, training is also conducted for currently working experienced
staff so as to help them improve their skills further. This is known as refresher training.
Performance Appraisal
After the employees have put in around 1 year of service, performance appraisal is
organized in order to check their performance. On the basis of these appraisals, future
promotions, incentives, and increments in salary are decided.
Compensation Planning and Remuneration
Under compensation planning and remuneration, various rules and regulations regarding
compensation and related aspects are taken care of. It is the duty of the HR department to look
into remuneration and compensation planning.
1.3 Features of HRM

Human Resource Management as a discipline includes the following features −
 It is pervasive in nature, as it is present in all industries.
 It focuses on outcomes and not on rules.
 It helps employees develop and groom their potential completely.
 It motivates employees to give their best to the company.
 It is all about people at work, as individuals as well as in groups.
 It tries to put people on assigned tasks in order to have good production or results.
 It helps a company achieve its goals in the future by facilitating work for competent and
well-motivated employees.
 It approaches to build and maintain cordial relationship among people working at various
levels in the company.
Basically, we can say that HRM is a multi-disciplinary activity, utilizing knowledge and inputs
drawn from psychology, economics, etc.
1.4 The Major functions of Human Resource Management
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The major functions of human resources are: strategic management, workforce planning
and employment, human resource development, policy formulation, total rewards, labor relations,
and risk management. Let's take a look at the functions of HR and how each impacts an
organization.
Strategic Management
Human Resource professionals are proactive in planning for the future by meeting the
continuous short-term and long-term strategic objectives of the organization.
Workforce Planning and Employment (recruitment and selection)
Workforce planning involves recruitment, selection, orientation, and exit process.

Department managers collaborate with Human Resources to determine staffing needs and to fill
job vacancies in a timely manner whenever the need(s) arise. The HR recruitment team
strategically recruits and selects only the best candidates for the company and ensures workforce
efficiency thereafter in an effort to help the organization accomplish it goals and objectives.
Human Resource Development (training & development)
HR is responsible for ensuring that employees receive the appropriate training (whether
in-house or off-site) to adequately perform their jobs. Thus, employees will be equipped to help
achieve desired departmental and company goals and objectives. Encouraging employees to take
advantage of the tuition reimbursement benefit will give employees an incentive to further their
education and use their acquired skills and knowledge for the betterment of the company in
general. HR Specialist also assists with change management and performance management
needs of the organization.
Total Rewards (compensation & benefits)
The HR benefits team is responsible for acquiring and administering an attractive

compensation and benefits package for new hires. This might include: a competitive salary range,
medical and dental insurance, choice of life insurance, tuition reimbursement, 401k, flexible
spending account, and more. The HR recruiter should promote and offer an attractive rewards
package to those candidates who meet the selection criteria at some point during the interview
process. A competitive reward package will attract top talent and hopefully retain them once hired.
Most organizations use a computerized system, Human Resource Information System (HRIS) to
in-put and keep track of employee data. HR compensation analyst and payroll specialist
oversees the salary administrations of new hires, process payroll, employee benefits, attendance,
vacation days, and maintain employees’ files. Payroll specialist also responds to employee
inquiries regarding their salaries and other benefits.
Policy Formulation
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Human Resources keeps new hires and current employees abreast of the policies and
procedures of the organization. This might include (but not limited to) the distribution of employee
handbook, code of conduct manual, and performance appraisals guidelines.
Employee and Labor Relations
The employee relations team seeks to align the employees’ needs and rights with the
needs of the organization. Things such as: union and non-union issues, discrimination issues,
and sexual harassment claims are matters that should be handled by the labor relations
department. Employers must stay in compliance with the law in making sure that every employee
is treated fairly. Employees are encouraged to contact employee relations should they ever feel
that they were treated unfairly or to resolve other workplace problems.
Risk Management
The HR risk management team along with the department manager-should be proactive
in detecting risk items that could pose a possible threat to the company: such as the removal of
hazardous waste material from a work area within the organization. Health care institutions in
particular, should take extra precautions in providing a safe work environment for its workers as
well as its clients and customers. HR should provide safety training and issue handbooks to its
employees to educate them on risk management issues. Employers face a legal obligation to
provide a safe and hazard free work environment. Employers must also comply with OSHA
(occupational safety and health administration) in keeping accurate records for all work related
injuries.
Concluding, understandably, some may still use the terms personnel and human resources
interchangeably. However, keep in min that a HR professional’s role is not just limited to
administrative duties in the company anymore, but instead, they provide continuous support in
the planning process and the development of an organization.
https://hiringpayroll.knoji.com/identifying-seven-major-functions-of-human-resources/
1.5 Four Fundamental Principles of HRM
1. Hire slowly
One of the biggest mistakes any business makes is to hire new employees too quickly,
often leading to a company not employing the best talent available. It is usually the case as
managers are too quick to make decisions on hiring and view it as a secondary task.
The results of this are disastrous as the business in many cases will go through the expense of
hiring, training and losing/firing an employee because the wrong candidate was hired. Companies
like Google and Facebook pride themselves of how long they spend on recruitment and how in
many cases they’ve rejected candidates competitors would later accept. They often carry out up
to 9 interviews to find the right candidate to employ. So, remember to hire slowly and avoid the
costly headaches of hiring the wrong candidate and gain the extreme benefits of hiring the right
candidate.
2. Use technology
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As we move into an era of unprecedented technological change, businesses have been

slow to adopt technology in the HR space, despite its abundance. You can now get paid and free
HR software that can quickly make the processes of recruiting, managing and motivating
employees much faster and more successful.
With providers including companies like peoplehr.com that offer a range of solutions you can
make your HR department work more efficiently.
3. Make everyone accountable

One of the most dangerous things a business can do is create a culture where no one is
accountable; this can lead to costly mistakes and an overall loss of standards and quality across
your business’ products or services.
To avoid this disastrous situation from the start, you need to create a culture where everyone is
responsible individually and as a team. You can start to do this by being clear from the start on
your expectations of new employees and what they can expect from you. You can continue to
build this culture by giving employees more responsibility and rewarding those who choose to
take on more responsibility, even those who make honest mistakes in the process.
4. Encourage Innovation
To start creating this culture, you will want to have an open door policy of ideas, encourage
employees to develop and test their solutions, and provide resources to back those who come up
with innovative projects.
https://entrepreneurhandbook.co.uk/4-fundamental-principles-of-human-resources/
CHAPTER 2: JOB ANALYSIS

2.1 DEFINTION OF JOB ANALYSIS
Some important definitions of job-analysis are as under:
Harry L. Wylie. "Job analysis deals with the anatomy of the job.....This is the complete study of
the job embodying every known and determinable factor, including the duties and
responsibilities involved in its performance; the conditions under which performance is carried
on; the nature of the task; the qualifications required in the worker; and the conditions of
employment such as pay, hours, opportunities and privileges"
Dale Yoder. "A Job is a collection of duties, tasks and responsibilities which are assigned to an
individual and which is different from other assignment"
Michael J. Jucius, "Job analysis refers to the process of studying the operations, duties and
organisational aspects of jobs in order to derive specification or, as they are called by some job
description"
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Edwin B. Flippo, "Job analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job "
According to Blum, "A job analysis is an accurate study of the various components of a job. It
is concerned not only with an analysis of the duties and conditions of work, but also with the
individual qualifications of the worker."
John A Shubin "Job analysis is the methodical compilation and study of work data in order to
define and characterise each occupation in such a manner as to distinguish it from all others."
Scott, Clothier and Spriegel, "Job analysis is the process of critically evaluating the
operations, duties and relationship of the job."
http://www.whatishumanresource.com/job-analysis
Job analysis is the process of gathering and analyzing information about the content
and the human requirements of jobs, as well as, the context in which jobs are performed.
Job analysis defines the organization of jobs within a job family. It allows units to
identify paths of job progression for employees interested in improving their opportunities for
career advancement and increasing compensation.
https://hr.unl.edu/compensation/nuvalues/jobanalysis.shtml/
Job Analysis is a process to identify and determine in detail the particular job duties
and requirements and the relative importance of these duties for a given job. Job Analysis is a
process where judgements are made about data collected on a job.
https://job-analysis.net/G000.htm
Job analysis is a systematic process of collecting all information about the job for
preparing of job description and job specification meant to selection of employee, satisfaction in
job, and motivation etc.
2.2 PURPOSE OF JOB ANALYSIS
Purpose of Job Analysis
The purpose of Job Analysis is to establish and document the 'job relatedness' of
employment procedures such as training, selection, compensation, and performance appraisal.
Determining Training Needs

Job Analysis can be used in training/"needs assessment" to identify or develop:
 training content
 assessment tests to measure effectiveness of training
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 equipment to be used in delivering the training

 methods of training (i.e., small group, computer-based, video, classroom...)
Compensation
Job Analysis can be used in compensation to identify or determine:
 skill levels
 compensable job factors
 work environment (e.g., hazards; attention; physical effort)
 responsibilities (e.g., fiscal; supervisory)
 required level of education (indirectly related to salary level)
Selection Procedures
Job Analysis can be used in selection procedures to identify or develop:
 job duties that should be included in advertisements of vacant positions;

 appropriate salary level for the position to help determine what salary should be offered
to a candidate;
 minimum requirements (education and/or experience) for screening applicants;
 interview questions;
 selection tests/instruments (e.g., written tests; oral tests; job simulations);
 applicant appraisal/evaluation forms;
 orientation materials for applicants/new hires
Performance Review
Job Analysis can be used in performance review to identify or develop:
 goals and objectives

 performance standards
 evaluation criteria
 length of probationary periods
 duties to be evaluated
2.3 METHODS AND ASPECTS OF JOB ANALYSIS
Several methods exist that may be used individually or in combination. These include:
 review of job classification systems

 incumbent interviews
 supervisor interviews
 expert panels
 structured questionnaires
 task inventories
 check lists
 open-ended questionnaires
 observation
 incumbent work logs
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A typical method of Job Analysis would be to give the incumbent a simple questionnaire to
identify job duties, responsibilities, equipment used, work relationships, and work environment.
The completed questionnaire would then be used to assist the Job Analyst who would then
conduct an interview of the incumbent(s). A draft of the identified job duties, responsibilities,
equipment, relationships, and work environment would be reviewed with the supervisor for
accuracy. The Job Analyst would then prepare a job description and/or job specifications.
The method that you may use in Job Analysis will depend on practical concerns such as type of
job, number of jobs, number of incumbents, and location of jobs.
What Aspects of a Job Are Analyzed?
Job Analysis should collect information on the following areas:
 Duties and Tasks The basic unit of a job is the performance of specific tasks and
duties. Information to be collected about these items may include: frequency, duration,
effort, skill, complexity, equipment, standards, etc.
 Environment
This may have a significant impact on the physical requirements to be able to perform a job.
The work environment may include unpleasant conditions such as offensive odors and
temperature extremes. There may also be definite risks to the incumbent such as noxious
fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
 Tools and Equipment
Some duties and tasks are performed using specific equipment and tools. Equipment may
include protective clothing. These items need to be specified in a Job Analysis.
 Relationships
Supervision given and received. Relationships with internal or external people.
 Requirements
The knowledges, skills, and abilities (KSA's) required to perform the job. While an
incumbent may have higher KSA's than those required for the job, a Job Analysis typically only
states the minimum requirements to perform the job.
2.4 IDEAL JOB ANALYSIS
An ideal job analysis should include
below listed are areas where job analyst should focus to bring out facts about a job.
Duties and Tasks:
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The basic unit of a job is the performance of specific tasks and duties. This segment
should include frequency, duration, effort, skill, complexity, equipment, standards, etc.
Environment:
This segment identifies the working environment of a particular job. This may have a
significant impact on the physical requirements to be able to perform a job.
Tools and Equipment:
Some duties and tasks are performed using specific equipment and tools. These items
need to be specified in a Job Analysis.
Relationships:
The hierarchy of the organization must be clearly laid out. The employees should know
who is under them and who they have to report to.
Requirements:
The knowledge, skills, and abilities required to perform the job should be clearly listed.
There are several ways to conduct a job analysis, including: interviews with incumbents
and supervisors, questionnaires (structured, open-ended, or both), observation, critical
incident investigations, and gathering background information such as duty statements or
classification specifications.
2.5 BENEFITS OF JOB ANALYSIS
Organizational structure and design :
Job analysis helps the organization to make suitable changes in the organizational
structure, so that it matches the needs and requirements of the organization. Duties are either
added or deleted from the job.
Recruitment and selection :
Job analysis provides information about what the job entails and what human
characteristics are required to perform these activities. This information, in the form of job
descriptions and specifications, helps management decide what sort of people to recruit and
hire.
Performance appraisal and training/development :
Based on the job requirements identified in the job analysis, the company decides
a training program. Training is given in those areas which will help to improve the performance
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on the job. Similarly when appraisal is conducted we check whether the employee is able to
work in a manner in which we require him to do the job.
Job evaluation :-
Job evaluation refers to studying in detail the job performance by all individual. The
difficulty level
Promotions and transfer :
When we give a promotion to an employee we need to promote him on the basis of the
skill and talent required for the future job. Similarly when we transfer an employee to another
branch the job must be very similar to what he has done before. To take these decisions we
collect information from job analysis.
Career path planning :-
Many companies have not taken up career planning for their employees. This is done to
prevent the employee from leaving the company. When we plan the future career of the
employee, information will be collected from job analysis. Hence job analysis becomes
important or advantageous.
Labour relations :
When companies plan to add extra duties or delete certain duties from a job, they
require the help of job analysis, when this activity is systematically done using job analysis the
number of problems with union members reduce and labour relations will improve.
Health and safety :
Most companies prepare their own health and safety, plans and programs based on job
analysis. From the job analysis company identifies the risk factor on the job and based on the
risk factor safety equipments are provided.
Acceptance of job offer :
When a person is given an offer/appointment letter the duties to be performed by him are
clearly mentioned in it, this information is collected from job analysis, which is why job analysis
becomes important.
2.6 STEPS IN CONDUCTING JOB ANALYSIS
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Six Steps to Conducting a Job Analysis
STEP 1: COLLECT INFORMATION ABOUT THE JOB
A good place to start is by reviewing materials that describe the work performed on the job. Such
materials include:
 Position descriptions and classification standards
 Subject matter expert (SME) input
 Performance standards
 Occupational studies
STEP 2: LIST THE TASKS
Prepare preliminary lists of tasks and competencies required to perform successfully on

the job, based on the information and/or SME input (along with the source of that information)
collected in Step 1.
STEP 3: IDENTIFY THE CRITICAL TASKS
Have the SMEs rate the importance of each task.
STEP 4: IDENTIFY THE CRITICAL COMPETENCIES
 Have the SMEs rate the importance of each competency and indicate whether they are
needed at entry.
 After the competencies are rated, identify which competencies are critical. Determine
cutoffs for each of the scales. o For example, based on the rating scales and cutoffs described in
the DEOH, the critical competencies are those rated as at least “important” and “needed at entry.”
STEP 5: LINK THE TASK AND COMPETENCIES
Have SME’S rate the extent to which each competency is important for performing each
task
Eliminate task not linked to one or more competencies and competencies that are not
linked to atleast one task.
STEP 6: CHOOSE SELECTIVE AND QUALITY RATING FACTORS
Determine which competencies, if any.
https://www.opm.gov/policy-data-oversight/assessment-and-selection/job-analysis/job_analysis_checklist.pdf
2.7 DEFINITION OF JOB DESCRIPTION
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Job description is a document intended to provide job applicants with an outline of the
main duties and responsibilities of the role for which they are applying.
The description is usually drawn up by the individual in the organisation responsible for
overseeing the selection process for the role, often with the help of the company’s HR
department and/or an external recruiter.
https://www.wikijob.co.uk/content/application-advice/job-applications/what-job-description
Job description is an informative documentation of the scope, duties, tasks,

responsibilities and working conditions related to the job listing in the organization through the
process of job analysis. Job Description also details the skills and qualifications that an individual
applying for the job needs to possess. It basically gives all the details which might be good for
both the company and the applicant so that both parties are on the same page regarding the job
posting.
Job description is used in the recruitment process to inform the applicants of the job
profile and requirements, and used at the performance management process to evaluate the
employee’s performance against the description.
https://www.mbaskool.com/business-concepts/human-resources-hr-terms/1809-job-description.html
2.8 MAIN USES AND STRUCTURE OF A JOB DESCRIPTION
There are many benefits to an effective job description. Here are just some of its key uses:
 To provide the employee with the expectations that are required of them in the role
 To provide enough detail to help the candidate assess if they are suitable for the position
 To support the recruitment team during the selection process
 To help formulate questions for the interview process
 To allow the prospective employee to determine their role or standing within the
structure of the organisation
 To assist in forming a legally binding contract of employment
 To help set goals and target for the employee upon joining
 To aid in the evaluation of the employee’s job performance
 To help formulate training and development plans
A job description should follow a simply laid out, accurate format that clearly defines the
needs of the role. While the actual structure will typically vary between roles and organisations,
a well-rounded job description will normally be loosely structured as follows:
1. Job Title
2. Location
3. Reports to
4. Job Purpose (a brief line or two)
5. Responsibilities/duties (detailed)
6. Essential and desirable criteria
7. Company/ team overview
8. Application information
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2.9 WRITING JOB DESCRIPTION
The job description is a critical document for every position. A good job description performs a
number of important functions:
 It describes the skills and competencies that are needed to perform the role;
 It defines where the job fits within the overall company hierarchy;
 It is used as the basis for the employment contract; and
 It is a valuable performance management tool.
This article outlines how to write a job description that is clear, concise and accurately defines
the role – in 5 simple steps.
1. Job title
The first fundamental element of the job description is the job title. A good job title will have the
following qualities:
 It accurately reflects the nature of the job and the duties being performed
 It reflects its ranking order with other jobs in the company
 It does not exaggerate the importance of the role
 It is free of gender or age implications
 It is generic enough that it can be compared to similar jobs in the industry for the
purposes of equity in pay and conditions
 It is self-explanatory for recruitment purposes (in most online job searches, the job title is
the main keyword searched).
An example of a good job title is ‘Parking Inspector’. An example of a bad job title for the same
position would be ‘Council Enforcement Officer’. This title gives you no indication of what is
being enforced. In this case, the word ‘parking’ would be a mandatory requirement in the job
title.
2. Duties
The job description should contain a list of the duties and responsibilities associated with the
role, along with the amount of time expected to be dedicated to each task.
This should be represented as a percentage (i.e. filing 20%, data entry 40% etc). Descriptions of
duties should be no more than two or three sentences in length and should be outcome-based,
containing an action, an object and a purpose (eg ‘compiles monthly reports to allow monitoring
of the department’s budget’).
The list of duties and responsibilities will vary in length, but as a rule, should be as short as
possible, otherwise the document becomes an operational manual rather than a job description.
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Roles in smaller companies (eg office manager) may have more tasks associated with them,
due to their ‘all rounder’ nature, but you should still aim to keep your list to around fifteen tasks
and preferably less.
3. Skills and competencies
Skills and competencies should be listed separately from each other, as they are two quite
separate things. Skills are activities the candidate can perform based on what they have learned
in the past, or from qualifications they have obtained.
Competencies are the traits or attributes you expect the candidate to display in the role. An
example of a skill is the ability to give effective presentations. It is a skill that can be learned
through study and practice.
An example of a competency, on the other hand, is strong communication, which is an innate

characteristic displayed by a person. The modern trend towards competency-based job
descriptions means extra weight is given to behavioural competencies such as leadership,
teamwork, flexibility, communication and initiative.
4. Relationships
It is important to include reporting lines and working relationships in your job description.
Reporting lines clarify the responsibilities of the position by showing who the candidate reports
to and who reports to them. This is important, not only in relation to compliance issues, but also
to give the candidate an insight into the hierarchical structure of the organisation and how their
position fits into it.
Working relationships are the people and departments the position requires the candidate to
work closely with. It is a good idea to give an indication of the size of such departments and the
extent of interaction.
An organisational chart is a good way to represent relationships in a job description, with vertical
lines between boxes demonstrating reporting lines and horizontal lines showing working
relationships.
5. Salary
Rather than assigning a particular salary to the position, work out a salary range to include in
the job description that is competitive with similar positions in other organisations and allows for
variations in education and experience.
Obviously, this would need to be updated from time to time, in line with changing pay scales.
A good job description is much more than a laundry list of tasks and responsibilities.
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If well written, it gives the reader a sense of the priorities involved. It not only provides a clear
picture of the position for potential candidates, but is also a useful tool for measuring
performance and a vital reference in the event of disputes or disciplinary issues.
So, the more accurate you can make a job description upfront, the more useful it will become in
the future.
https://recruitloop.com/blog/how-to-write-a-job-description/
CHAPTER 3: RECRUITMENT OF EMPLOYEES

3.1 DEFINITION OF RECRUITMENT
Recruitment is a process of identifying, screening, shortlisting and hiring potential
resource for filling up the vacant positions in an organization. It is a core function of Human
Resource Management.
Recruitment is the process of choosing the right person for the right position and at the
right time. Recruitment also refers to the process of attracting, selecting, and appointing
potential candidates to meet the organization’s resource requirements.
https://www.tutorialspoint.com/recruitment_and_selection/recruitment_and_selection_tutorial.pdf
Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating
and encouraging them to apply for jobs in an organisation.” He further elaborates it, terming it
both negative and positive.
Dale Yoder, Recruitment is the process to “discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force.”
Joseph J. Famularo has said, “However, the act of hiring a man carries with it the
presumption that he will stay with the company-that sooner or later his ability to perform his
work, his capacity for job growth, and his ability to get along in the group in which he works will
become matters of first importance.”
http://www.yourarticlelibrary.com/recruitment/recruitment-meaning-definition-process-and-factors-influencing-
recruitment/25950
3.2 PURPOSE AND IMPORTANCE OF RECRUITMENT
Recruitment is one of the most fundamental activities of the HR team. If the recruitment
process is efficient, then –
 The organization gets happier and more productive employees
 Attrition rate reduces
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.  It builds a good workplace environment with good employee relationships
.  It results in overall growth of the organization.
Here is a list that shows the purpose and importance of Recruitment in an organization:
 It determines the current and future job requirement
.  It increases the pool of job at the minimal cost.
 It helps in increasing the success rate of selecting the right candidates
.  It helps in reducing the probability of short term employments.
 It meets the organization’s social and legal obligations with regards to the work force.
 It helps in identifying the job applicants and selecting the appropriate resources.
 It helps in increasing organizational effectives for a short and long term.
 It helps in evaluating the effectiveness of the various recruitment techniques
.  It attracts and encourages the applicants to apply for the vacancies in an organization.
 It determines the present futures requirements of the organization and plan according.
 It links the potential employees with the employers.
 It helps in increasing the success ratio of the selection process of prospective candidates.
 It helps in creating a talent pool of prospective candidates, which enables in selecting the right
candidates for the right job as per the organizational needs.
3.3 FACTORS AFFECTING RECRUITMENT
We have Internal Factors as well as External Factors that influence the recruitment
process. In this chapter, we will be discussing these factors in detail.
Internal Factors Organizations
have control over the internal factors that affect their recruitment functions. The internal
factors are:
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 Size of organization
 Recruiting policy
 Image of organization
 Image of job Size of Organization
The size of the organization
is one of the most important factors affecting the recruitment process. To expand the
business, recruitment planning is mandatory for hiring more resources, which will be handling
the future operations.
Recruiting Policy Recruitment policy of an organization
, i.e., hiring from internal or external sources of organization is also a factor, which
affects the recruitment process. It specifies the objectives of the recruitment and provides a
framework for the implementation of recruitment programs.
Image of Organization Organizations
having a good positive image in the market can easily attract competent resources.
Maintaining good public relations, providing public services, etc., definitely helps an organization
in enhancing its reputation in the market, and thereby attract the best possible resources.
Image of Job Just like the image of organization,
the image of a job plays a critical role in recruitment. Jobs having a positive image in
terms of better remuneration, promotions, recognition, good work environment with career
development opportunities are considered to be the characteristics to attract qualified
candidates.
External Factors External factors
are those that cannot be controlled by an organization. The external factors that affect
the recruitment process include the following:
 Demographic factors – Demographic factors are related to the attributes of potential

employees such as their age, religion, literacy level, gender, occupation, economic status, etc.
 Labor market – Labor market controls the demand and supply of labor. For example, if
the supply of people having a specific skill is less than the demand, then the hiring will need
more efforts. On the other hand, if the demand is less than the supply, the hiring will be relative
easier.
 Unemployment rate – If the unemployment rate is high in a specific area, hiring of

resources will be simple and easier, as the number of applicants is very high. In contrast, if the
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unemployment rate is low, then recruiting tends to be very difficult due to less number of
resources
.  Labor laws – Labor laws reflect the social and political environment of a market,
which are created by the central and state governments. These laws dictate the compensation,
working environment, safety and health regulations, etc., for different types of employments. As
the government changes, the laws too change
.  Legal considerations – Job reservations for different castes such as STs, SCs, OBCs
are best examples of legal considerations. These considerations, passed by government, will
have a positive or negative impact on the recruitment policies of the organizations.
 Competitors – When organizations in the same industry are competing for the best
qualified resources, there is a need to analyze the competition and offer the resources
packages that are best in terms of industry standards.
3.4 RECRUITMENT PROCESS
Recruitment is a process of finding and attracting the potential resources for filling up the
vacant positions in an organization. It sources the candidates with the abilities and attitude,
which are required for achieving the objectives of an organization.
Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, shortlisting and selecting the right candidate.
To increase the efficiency of hiring, it is recommended that the HR team of an organization

follows the five best practices (as shown in the following image).
These five practices ensure successful recruitment without any interruptions. In addition,
these practices also ensure consistency and compliance in the recruitment process.
Recruitment process is the first step in creating a powerful resource base. The process
undergoes a systematic procedure starting from sourcing the resources to arranging and
conducting interviews and finally selecting the right candidates.
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Recruitment Planning Recruitment planning
is the first step of the recruitment process, where the vacant positions are analyzed and
described. It includes job specifications and its nature, experience, qualifications and skills
required for the job, etc. A structured recruitment plan is mandatory to attract potential
candidates from a pool of candidates. The potential candidates should be qualified, experienced
with a capability to take the responsibilities required to achieve the objectives of the
organization.
Recruitment Strategy Recruitment strategy
is the second step of the recruitment process, where a strategy is prepared for hiring the
resources. After completing the preparation of job descriptions and job specifications, the next
step is to decide which strategy to adopt for recruiting the potential candidates for the
organization. While preparing a recruitment strategy, the HR team considers the following
points:
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but having a right strategy
is mandatory to attract the right candidates. The steps involved in developing a recruitment
strategy include:
 Setting up a board team
 Analyzing HR strategy
 Collection of available data
 Analyzing the collected data
 Setting the recruitment strategy
Searching the Right Candidates Searching
is the process of recruitment where the resources are sourced depending upon the
requirement of the job. After the recruitment strategy is done, the searching of candidates will be
initialized. This process consists of two steps
:  Source activation: Once the line manager verifies and permits the existence of the
vacancy, the search for candidates starts. Recruitment and Selection
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 Selling: Here, the organization selects the media through which the communication of
vacancies reaches the prospective candidates.
Screening/Shortlisting Screening
starts after completion of the process of sourcing the candidates. Screening is the
process of filtering the applications of the candidates for further selection process. Screening is
an integral part of recruitment process that helps in removing unqualified or irrelevant
candidates, which were received through sourcing. The screening process of recruitment
consists of three steps:
Reviewing of Resumes and Cover Letters Reviewing
is the first step of screening candidates. In this process, the resumes of the candidates
are reviewed and checked for the candidates’ education, work experience, and overall
background matching the requirement of the job
. While reviewing the resumes, an HR executive must keep the following points in mind,
to ensure better screening of the potential candidates:
 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping
 Lack of career progression Conducting Telephonic or Video Interview Conducting

telephonic or video interviews is the second step of screening candidates. In this process, after
the resumes are screened, the candidates are contacted through phone or video by the hiring
manager. This screening process has two outcomes:
 It helps in verifying the candidates, whether they are active and available
.  It also helps in giving a quick insight about the candidate’s attitude, ability to answer
interview questions, and communication skills. Identifying the top candidates Identifying the top
candidates is the final step of screening the resumes/candidates. In this process, the cream/top
layer of resumes are shortlisted, which makes it easy for the hiring manager to take a decision.
This process has the following three outcomes:
 Shortlisting 5 to 10 resumes for review by the hiring managers  Providing insights and
recommendations to the hiring manager
 Helps the hiring managers to take a decision in hiring the right candidate
Evaluation and Control
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Evaluation and control is the last stage in the process of recruitment. In this process, the
effectiveness and the validity of the process and methods are assessed. Recruitment is a costly
process, hence it is important that the performance of the recruitment process is thoroughly
evaluated. The costs incurred in the recruitment process are to be evaluated and controlled
effectively. These include the following:
 Salaries to the Recruiters
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees
.  Administrative expenses and Recruitment overheads
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Cost incurred in recruiting suitable candidates for the final selection process
3.5 TYPES OF RECRUITMENT
For any organization, recruitment is a crucial part of developing and maintaining an

effective and efficient team. A good recruitment strategy will cut down the wastage of time and
money, which would have incurred for extensive training and development of unqualified
resources.
Internal Sources of Recruitment
Internal sources of recruitment refer to hiring employees within the organization

internally. In other words, applicants seeking for the different positions are those who are
currently employed with the same organization.
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Internal sources of recruitment are the best and the easiest way of selecting resources
as performance of their work is already known to the organization. Let us now discuss more on
the various internal sources of recruitment.
Promotions
Promotion refers to upgrading the cadre of the employees by evaluating their

performance in the organization. It is the process of shifting an employee from a lower position
to a higher position with more responsibilities, remuneration, facilities, and status. Many
organizations fill the higher vacant positions with the process of promotions, internally.
Transfers
Transfer refers to the process of interchanging from one job to another without any
change in the rank and responsibilities. It can also be the shifting of employees from one
department to another department or one location to another location, depending upon the
requirement of the position.
Recruiting Former Employees
Recruiting former employees is a process of internal sources of recruitment, wherein the

ex-employees are called back depending upon the requirement of the position. This process is
cost effective and saves plenty of time. The other major benefit of recruiting former employees
is that they are very well versed with the roles and responsibilities of the job and the
organization needs to spend less on their training and development.
Internal Advertisements (Job Posting)
Internal Advertisements is a process of posting/advertising jobs within the organization.

This job posting is an open invitation to all the employees inside the organization, where they
can apply for the vacant positions. It provides equal opportunities to all the employees working
in the organization. Hence, the recruitment will be done from within the organization and it saves
a lot of cost.
Employee Referrals
Employee referrals is an effective way of sourcing the right candidates at a low cost. It is
the process of hiring new resources through the references of employees, who are currently
working with the organization. In this process, the present employees can refer their friends and
relatives for filling up the vacant positions. Organizations encourage employee referrals,
because it is cost effective and saves time as compared to hiring candidates from external
sources. Most organizations, in order to motivate their employees, go ahead and reward them
with a referral bonus for a successful hire.
External Sources of Recruitment
External sources of recruitment refer to hiring employees outside the organization

externally. In other words, the applicants seeking job opportunities in this case are those who
are external to the organization. External employees bring innovativeness and fresh thoughts to
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the organization. Although hiring through external sources is a bit expensive and tough, it has
tremendous potential of driving the organization forward in achieving its goals.
Let us now discuss in detail the various external sources of recruitment.
Direct Recruitment
Direct recruitment refers to the external source of recruitment where the recruitment of
qualified candidates are done by placing a notice of vacancy on the notice board in the
organization. This method of sourcing is also called as factory gate recruitment, as the blue-
collar and technical workers are hired through this process.
Employment Exchanges
As per the law, for certain job vacancies, it is mandatory that the organization provides
details to the employment exchange. Employment exchange is a government entity, where the
details of the job seekers are stored and given to the employers for filling the vacant positions.
This external recruitment is helpful in hiring for unskilled, semi-skilled, and skilled workers.
Advertisements
Advertisements are the most popular and very much preferred source of external source
of recruitment. The job vacancy is announced through various print and electronic media with a
specific job description and specifications of the requirements. Using advertisements is the best
way to source candidates in a short span and it offers an efficient way of screening the
candidates’ specific requirements.
Professional Associations
Professional associations can help an organization in hiring professional, technical, and

managerial personnel, however they specialize in sourcing mid-level and top-level resources.
There are many professional associations that act as a bridge between the organizations and
the job-seekers
Campus Recruitment
Campus recruitment is an external source of recruitment, where the educational

institutions such as colleges and universities offers opportunities for hiring students. In this
process, the organizations visit technical, management, and professional institutions for
recruiting students directly for the new positions.
Word of Mouth
Advertising Word of mouth is an intangible way of sourcing the candidates for filling up
the vacant positions. There are many reputed organizations with good image in the market.
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Such organizations only need a word-of-mouth advertising regarding a job vacancy to attract a
large number of candidates.
3.6 PROS AND CONS OF INTERNAL AND EXTERNAL RECRUITMENT
Pros and Cons of Internal Sources of Recruitment
Internal sources of recruitment, i.e., hiring employees within the organization, has its own set of
advantages and disadvantages.
The advantages are as follows
:  It is simple, easy, quick, and cost effective
.  No need of induction and training, as the candidates already know their job and
responsibilities.
 It motivates the employees to work hard, and increases the work relationship within the
organization.  It helps in developing employee loyalty towards the organization.
The drawbacks of hiring candidates through internal sources are as follows
:  It prevents new hiring of potential resources. Sometimes, new resources bring innovative
ideas and new thinking onto the table
.  It has limited scope because all the vacant positions cannot be filled.
 There could be issues in between the employees, who are promoted and who are no
t.  If an internal resource is promoted or transferred, then that position will remain vacant
.  Employees, who are not promoted, may end up being unhappy and demotivated.
Pros and Cons of External Sources of Recruitment
External sources of recruitment, i.e., hiring employees outside an organization, has both
its benefits and drawbacks. The benefits are as follows
:  It encourages new opportunities for job seekers.
 Organization branding increases through external sources
 There will be no biasing or partiality between the employees. Recruitment and

Selection 21
 The scope for selecting the right candidate is more, because of the large number
candidates appearing.
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The disadvantages of recruiting through external sources are as follows
:  This process consumes more time, as the selection process is very lengthy.
 The cost incurred is very high when compared to recruiting through internal sources.
 External candidates demand more remuneration and benefits. To conclude, the HR

department should be flexible enough to choose between internal or external methods of
recruitment, depending upon the requirement of the organization.
CHAPTER 5: TRAINING AND DEVELOPMENT OF

EMPLOYEES
Employee training and development refers to the continued efforts of a company to

boost the performance of its employees. Companies aim to train and develop employees by
using an array of educational methods and programs.
https://corporatefinanceinstitute.com/resources/careers/soft-skills/employee-training-and-development/
Training and development are planned efforts to facilitate the learning job-related
behavior on the part of the employees.
The goal of training and development is to enhance employee quality and motivation so
as to improve productivity and meet future needs of the organization.
Objectives of training and development:
A. Meet organization needs.
B. Meet individual needs.
C. Improve productivity satisfaction.
https://www.slideshare.net/manickam1971/training-process-31789731
Although there are new training techniques emerging every day, several common
training approaches have proven highly effective. They include:
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1. Orientations
Orientation training is crucial to the success of new recruits. It doesn’t matter whether
the training is implemented through a handbook, a one-on-one session, or a lecture. What
matters is providing new employees with information regarding the firm’s background,
strategies, mission, vision, and objectives. Such training gives new employees an opportunity to
familiarize themselves with company policies, rules, and regulations.
2. Lectures
Lectures are particularly efficient when the aim is to provide the same information to a
large group at once. In doing so, there is no need for individual training and thus, savings on
costs. However, lectures also pose some disadvantages. For one, they center on one-way
communication, which leaves little room for feedback. Also, the trainer may find it challenging to
assess the level of understanding of the content within a big group.
3. Computer-based Training (CBT)
With this approach, computers and computer-based tutorials are the primary means of
communication between the trainer and employees. The programs are structured in such a way
that they provide instructional materials while also facilitating the learning process.
The core benefit of computer-based training (CBT) is that each employee is given the freedom
to learn at their own pace in their most convenient time. It also helps to reduce the total cost that
an organization incurs in training its employees. Costs are minimized by reducing the training
duration, eliminating the need for instructors, and reducing travel.
https://corporatefinanceinstitute.com/resources/careers/soft-skills/employee-training-and-development/
 Improved employee performance – the employee who receives the necessary training
is more able to perform in their job. The training will give the employee a greater
understanding of their responsibilities within their role, and in turn build their confidence.
This confidence will enhance their overall performance and this can only benefit the
company. Employees who are competent and on top of changing industry standards
help your company hold a position as a leader and strong competitor within the industry.
 Improved employee satisfaction and morale – the investment in training that a

company makes shows employees that they are valued. The training creates a
supportive workplace. Employees may gain access to training they wouldn’t have
otherwise known about or sought out themselves. Employees who feel appreciated and
challenged through training opportunities may feel more satisfaction toward their jobs.
 Addressing weaknesses – Most employees will have some weaknesses in their

workplace skills. A training program allows you to strengthen those skills that each
employee needs to improve. A development program brings all employees to a higher
level so they all have similar skills and knowledge. This helps reduce any weak links
within the company who rely heavily on others to complete basic work tasks. Providing
the necessary training creates an overall knowledgeable staff with employees who can
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take over for one another as needed, work on teams or work independently without
constant help and supervision from others.
 Consistency – A robust training and development program ensures that employees

have a consistent experience and background knowledge. The consistency is
particularly relevant for the company’s basic policies and procedures. All employees
need to be aware of the expectations and procedures within the company. Increased
efficiencies in processes results in financial gain for the company.
 Increased productivity and adherence to quality standards – Productivity usually

increases when a company implements training courses. Increased efficiency in
processes will ensure project success which in turn will improve the company turnover
and potential market share.
 Increased innovation in new strategies and products – Ongoing training and

upskilling of the workforce can encourage creativity. New ideas can be formed as a
direct result of training and development.
 Reduced employee turnover – staff are more likely to feel valued if they are invested in
and therefore, less likely to change employers. Training and development are seen as
an additional company benefit. Recruitment costs therefore go down due to staff
retention.
 Enhances company reputation and profile – Having a strong and successful training
strategy helps to develop your employer brand and make your company a prime
consideration for graduates and mid-career changes. Training also makes a company
more attractive to potential new recruits who seek to improve their skills and the
opportunities associated with those new skills.
Training can be of any kind relevant to the work or responsibilities of the individual, and
can be delivered by any appropriate method.
For example, it could include:

 On-the-job learning
 Mentoring schemes
 In-house training
 Individual study
https://2020projectmanagement.com/resources/project-management-training-and-qualifications/the-
importance-of-training-and-development-in-the-workplace
o What is Employee Orientation?

Employee orientation is the process of introducing new hires to their jobs, co-workers,
responsibilities, and workplace. It allows employees the chance to feel comfortable within their
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new teams, departments, and roles within the company. Effective employee orientation answers
any questions or concerns a new colleague may have, makes them aware of company policies
and expectations, and eases them comfortably into their new positions.
o Why Orientation is Important for New Employees

Orientation officially begins the relationship between employee and employer. A smooth
transition into a new role benefits both new employees and their new managers and colleagues.
By clearly communicating expectations and responsibilities to a new employee, they can start
being productive quickly. This will also reduce new employee turnover due to misunderstood
and unmet expectations. Additionally, a clear policy for employee orientation will ensure that all
new team members receive the same training and information.
There are a number of competitive challenges that face human resources

management departments, six of which include; going global, embracing technology, managing
change, developing human capital, responding to the market and containing costs.
 Going global
In order for businesses to succeed in the modern world, it is necessary to try expanding into
the global market. Many companies use the global market as a fantastic business opportunity to
prosper and expand. This has an effect on human resources when finding new employees.
They will need to look for candidates that understand international cultures, laws and business
practices.
 Embracing technology
Advanced technology has decreased the number of jobs that need little skill but increased the
number of jobs that require specific technology skills. Technology is used to manage Human
Resource Information Systems and present accurate information for staff.
 Managing change
Change is a difficult thing for Human Resources departments to manage. Often companies are
lacking leaders who are willing to initialize the changes or communicate their visions. They may
not establish a sense of urgency or declare victory too soon.
 Developing human capital
Success increasingly depends on an organization's ability to manage human capital. The

Human Resources department has to try and manage jobs, technologies and projects in a way
that is unnatural to them.
 Responding to the market
It is essential that organizations aim to meet and respond to their customer's expectations. The
Human Resources departments must learn the strategies involved in this process; total quality
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management, six sigma and reengineering.
 Containing costs
One of the biggest challenges to the Human Resources department is to try and contain costs.
Labor costs are the largest expenditures of any company and the HR department is in charge of
downsizing or outsourcing, should the need to occur.
https://employment.blurtit.com/3220135/what-are-the-six-competitive-challenges-facing-human-
resources-management-departments
The Training Process comprises of a series of steps that needs to be followed

systematically to have an efficient training program. The Training is a systematic activity
performed to modify the skills, attitudes and the behavior of an employee to perform a particular
job.
1. Needs assessment: The first step in the

training process is to assess the need for training
the employees. The need for training could be
identified through a diagnosis of present and future
challenges and through a gap between the
employee’s actual performance and the standard
performance.
The needs assessment can be studied from two

perspectives: Individual and group. The individual
training is designed to enhance the individual’s
efficiency when not performing adequately. And
whereas the group training is intended to inculcate the new changes in the employees due to a
change in the organization’s strategy.
2. Deriving Instructional Objectives: Once the needs are identified, the objectives for which the
training is to be conducted are established. The objectives could be based on the gaps seen in
the training program conducted earlier and the skill sets developed by the employees.
3. Designing Training Program: The next step is to design the training program in line with the
set objectives. Every training program encompasses certain issues such as: Who are the
trainees? Who are the trainers? What methods are to be used for the training? What will be the
level of training? etc. Also, the comprehensive action plan is designed that includes the training
content, material, learning theories, instructional design, and the other training requisites.
4. Implementation of the Training Program: Once the designing of the training program is
completed, the next step is to put it into the action. The foremost decision that needs to be
made is where the training will be conducted either in-house or outside the organization.
Once it is decided, the time for the training is set along with the trainer who will be conducting
the training session. Also, the trainees are monitored continuously throughout the training
program to see if it’s effective and is able to retain the employee’s interest.
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5. Evaluation of the Training Program: After the training is done, the employees are asked to
give their feedback on the training session and whether they felt useful or not. Through
feedback, an organization can determine the weak spots if any, and can rectify it in the next
session. The evaluation of the training program is a must because companies invest huge
amounts in these sessions and must know its effectiveness in terms of money.
Thus, every firm follows the series of steps to design an effective training program that serves
the purpose for which it was intended.
https://businessjargons.com/training-process.html
CHAPTER 6: PERFORMANCE REVIEW AND APPRAISAL
According to Flippo, a prominent personality in the field of Human Resources,

“performance appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in the matters pertaining to his present job and his potential for a better job.”
https://www.slideshare.net/bindmadhuri/performance-appraisal-23010631
According to Newstorm, “It is the process of evaluating the performance of employees,
sharing that information with them and searching for ways to improve their performance.”
Performance Appraisal is the step where the management finds out how effective it has
been at hiring and placing employees.
A “Performance Appraisal” is a process of evaluating an employee’s performance of a
job in terms of requirements.
https://www.slideshare.net/angel01021990/performance-appraisal-ppt-hrm
A performance review, also called a performance appraisal or performance evaluation, is
a formal assessment in which managers evaluate an employee’s work performance, identify
strengths and weaknesses, offer feedback, and set goals for future performance.
https://www.bamboohr.com/hr-glossary/performance-review/
1. It allows management to specify what must be done and to combine feedback with goal
setting.
2. Managers cannot manage and define what is expected, gives feedback and recognition
without defining the basis or performance measures.
3. Employee cannot improve on what he is supposed to do without the necessary data
before and after to see if performance is actually improving.
4. Creating high performance requires a definition or clear goals so you will know it when
you see it.
5. Pay for performance requires metrics.
Early Approaches to Performance Appraisal
 Focusing on the employees’ past performance so this is more on management results.
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 Focusing on the employees’ development. In here results become the driving force for
management development.
Common Flaws Identified with Performance Review System Design
 Organizations limit performance review to making employees accountable for past

endeavor. This takes the view that making people accountable for poor performance will
automatically generate improvement.
 Tying performance review to employee salary review. This is trying to reinforce the power
of management to decide who are those entitled to receive increases, showing who is
boss, with the use of stick and carrot.
1. It provides information for promotion, transfer, demotion, layoff, discharge, and salary
decisions.
2. It identifies employees’ strength and weaknesses.
3. It identifies the training needs of employees.
4. It helps in the firm’s career planning process.
5. It allows easy monitoring and supervision.
6. It helps evaluate the relative individual or team contributions in achieving the
organization’s goals.
7. It provides information to evaluate effectiveness of selection and recruitment decisions.
https://www.coursehero.com/file/25153023/CHAPTER-6-PERFORMANCE-REVIEW-AND-
APPRAISALrepropptx/
Performance criteria defined as a written description of the standards or characteristics

to be assessed for a given task or activity used by a line manager or assessor to ascertain if an
individual, group or organization can perform a specified task or activity to the defined standard
or characteristics.
https://www.definitions.net/definition/performance+criteria
6.3.1 Criteria for Successful Performance Appraisal
1. Clear Objectives: A good performance appraisal should be built around unambiguous

objectives. These objectives should cover all levels and areas of the organization and
reflect the needs of each. The appraisal system should be clear in its purpose.
2. Management and employee endorsement: To be effective, the appraisal system should
be supported by the entire work force. This includes management support for possible
expenses such as additional training, employee meetings, and appraisal forms and other
materials, and staff time.
3. Flexibility: An organization must design its system with enough flexibility to adapt to any
changes that might occur.
4. Predictability: the timing of the performance appraisal and any other feedback sessions
should be predictable. For example, some organizations have an annual performance
appraisal close to the hiring anniversary date of the employee. This enables the employee
to prepare for the evaluation.
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5. Performance dialogue: performance discussions between the rater and the employee are
perhaps the most critical component of a successful performance appraisal system.
6. Appraisal Form: The importance of an appropriate appraisal form should not be
overlooked. Many organizations simply adopt “standard” form that may or may not be
tailored to their goals and objectives.
7. Periodic system checks: Systematically evaluating the validity of the performance
appraisal system should be a key feature.
https://hrmpractice.com/criteria-for-a-successful-performance-appraisal/
1. Supervisor rating of subordinates: Managers & supervisors in each department rate their
employee performance. Managers & supervisors in each department rate their employee
performance.
2. A group of managers rating employees: A group of managers from various departments
can rate the employee's performance with different departments. A group of managers
from various departments can rate the employee's performance with different
departments.
3. Peer ratings: Use a group of peers as raters to evaluate another employee.
4. Subordinates rate their supervisors: Used to evaluate managers & supervisors in order
to improve their decisions-making and leadership potentials. Use to evaluate managers
& supervisors in order to improve their decisions-making and leadership potentials.
5. Self-ratings: It is a self-development tool that force employees to think about their
strengths, weakness & opportunities for improve themselves. It is a self-development
tool that force employees to think about their strengths, weakness & opportunities for
improve themselves.
6. Outsider rating: Rating also may be done by outsider.
https://slideplayer.com/slide/8794786/
Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as they relate
to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
 Past Oriented Methods
 Future Oriented Methods
Past Oriented Methods
1. Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales range from excellent to poor. The total numerical scores are
computed and final conclusions are derived.
 Advantages – Adaptability, easy to use, low cost, every type of job can be
evaluated, large number of employees covered, no formal training required.
 Disadvantages – Rater’s biases
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2. Checklist: Under this method, checklist of statements of traits of employee in the form
of Yes or No based questions is prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
 Advantages – economy, ease of administration, limited training required,
standardization.
 Disadvantages – Raters biases, use of improper weighs by HR, does not allow
rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is
forced to make a choice. HR department does actual assessment.
 Advantages – Absence of personal biases because of forced choice.
 Disadvantages – Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point on a
rating scale. Rater is compelled to distribute the employees on all points on the scale. It
is assumed that the performance is conformed to normal distribution.
 Advantages – Eliminates
 Disadvantages – Assumption of normal distribution, unrealistic, errors of central
tendency.
5. Critical Incidents Method: The approach is focused on certain critical behaviors of
employee that makes all the difference in the performance. Supervisors as and when
they occur record such incidents.
 Advantages – Evaluations are based on actual job behaviors, ratings are
supported by descriptions, feedback is easy, reduces recency biases, chances
of subordinate improvement are high.
 Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly
close supervision; feedback may be too much and may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective
behaviors determine the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee performance.
 Advantages – helps overcome rating errors.
 Disadvantages – Suffers from distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside employees’ own
department usually from corporate or HR department.
 Advantages – Useful for managerial level promotions, when comparable
information is needed,
 Disadvantages – Outsider is generally not familiar with employees work
environment. Observation of actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or skills.
The tests may be written or an actual presentation of skills. Tests must be reliable and
validated to be useful.
 Advantage – Tests may be apt to measure potential more than actual
performance.
 Disadvantages – Tests may suffer if costs of test development or administration
are high.
9. Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self-expression, team work, leadership, initiative, technical ability,
reasoning ability, originality and resourcefulness etc. The system is highly secretive and
confidential. Feedback to the assessed is given only in case of an adverse entry.
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 Disadvantage is that it is highly subjective and ratings can be manipulated

because the evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance,
promotability of employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee.
 Advantage – It is extremely useful in filing information gaps about the employees
that often occur in a better-structured checklist.
 Disadvantages – It its highly dependent upon the writing skills of rater and most
of them are not good writers. They may get confused success depends on the
memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns
yields to his or her organization. Cost to keep employee, and benefit the organization
derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers.
The usual techniques used may be ranking methods and paired comparison method.
 Ranking Methods: Superior ranks his worker based on merit, from best to
worst. However how best and why best is not elaborated in this method. It is
easy to administer and explanation.
 Paired Comparison Methods: In this method each employee is rated with
another employee in the form of pairs. The number of comparisons may be
calculated with the help of a formula as under.
Future Oriented Methods
1. Management by Objectives: It means management by objectives and the performance

is rated against the achievement of objectives stated by the management. MBO process
goes as under.
o Establish goals and desired outcomes for each subordinate
o Setting performance standards
o Comparison of actual goals with goals attained by the employee
o Establish new goals and new strategies for goals not achieved in previous year.
 Advantage – It is more useful for managerial positions.
 Disadvantages – Not applicable to all jobs, allocation of merit pay may result in
setting short-term goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees’
potential for future performance rather than the past one. It is done in the form of in-
depth interviews, psychological tests, and discussion with supervisors and review of
other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance. This approach
is slow and costly and may be useful for bright young members who may have
considerable potential. However, quality of these appraisals largely depends upon the
skills of psychologists who perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have
their participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work
samples. Assessee is requested to participate in in-basket exercises, work groups,
computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job. The characteristics assessed in
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assessment center can be assertiveness, persuasive ability, communicating ability,

planning and organizational ability, self-confidence, resistance to stress, energy level,
decision making, sensitivity to feelings, administrative ability, creativity and mental
alertness etc.
 Disadvantages – Costs of employees traveling and lodging, psychologists,
ratings strongly influenced by assessee inter-personal skills. Solid performers
may feel suffocated in simulated situations. Those who are not selected for this
also may get affected.
 Advantages – well-conducted assessment center can achieve better forecasts of
future performance and progress than other methods of appraisals. Also,
reliability content validity and predictive ability are said to be high in assessment
centers. The tests also make sure that the wrong people are not hired or
promoted. Finally, it clearly defines the criteria for selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance
data on an individual group, derived from a number of stakeholders like immediate
supervisors, team members, customers, peers and self. In fact, anyone who has useful
information on how an employee does a job may be one of the appraisers. This
technique is highly useful in terms of broader perspective, greater self-development and
multi-source feedback is useful. 360-degree appraisals are useful to measure inter-
personal skills, customer satisfaction and team building skills. However, on the negative
side, receiving feedback from multiple sources can be intimidating, threatening etc.
Multiple raters may be less adept at providing balanced and objective feedback.
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CHAPTER 7: CHANGES IN PERSONNEL STATUS

Changes in employment status are bound to take place during the period of
employment. The objective is to find or assign the right person to the right job.
The reassignment of an employee to a higher job position. Also, refers to the upward or
vertical movement of employees in an organization.
Promotion serves as encouragement and inspiration to other employees to exert their
maximum effort. Can also instill loyalty to the firm.
7.1.1 Approaches to Recruit Employees for Promotion
1. Closed Promotion System – the responsibility of the supervisor to identify promotable
employees for the job to be filled.
2. Open Promotion System – also known as job posting-enhancing participation and the
achievement of equal opportunity goals.
7.1.2 Criteria Used in Promoting Employees
1. Seniority – length of service
a. Straight Seniority – the length of service of an employee is the sole basis for
determining who gets the promotion.
b. Qualified Seniority – the competent employee as compared to another employee
with longer service will be the one promoted.
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2. Current and Past Performance – promotion is based on previous job performance and
evaluation.
7.1.3 “Unofficial Promotion Criteria
1) Personal characteristic
2) Nepotism – showing of favoritism or patronage to relatives
3) Social factors/Friendship
The reassignment of an employee to a lower job involving fewer skills and

responsibilities.
The alternative to demotion should be re-training or reorientation on the job and attitude
toward work, or as a last resort, termination of employment if no improvement is achieved.
7.2.1 Reasons Behind Demotion
1. Reorganization, company merger, or business reverses resulting to fewer jobs, forcing

some employees to accept demotion.
2. Inability of employees to perform their job based on acceptable standards.
3. As a form of disciplinary action, or a way to handle disciplinary problems, also viewed as
a routine form of punishment for wrongdoing.
4. The tool used to inform the employee concerned that he or she is beginning to be a
“liability” rather than an “asset” to the organization.
The reassignment of an employee to a job with similar pay, status, duties and
responsibilities or to another work shift, or from one unit to another in the same company just
like being an invoice clerk to a sales clerk.
7.3.1 Reasons for Transfer
1. Due to job dissatisfaction.

2. In conflict with supervisor or co-workers.
3. For employee’s convenience.
4. Organizational needs may require transfer due to business expansion, retrenchment
erroneous placement, or to meet departmental requirements during peak season.
5. For an employee to be better suited or adjusted to the job (remedial transfer).
Different kinds of separation occur depending on whether the employee or the employer
decides to terminate the employment relationship.
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Employee separation constitutes the final stage in the staffing process of an

organization. An employee can leave the organization for any reason which he deems fit for
seeking separation. However, separation is classified basically into two types. These are:
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voluntary separation and involuntary separation. Voluntary separation refers to the separation of
employees on their own request, while involuntary separation means the separation of
employees for organizational reasons which are beyond the control of the employees. We shall
now discuss the causes of these separations in detail.
7.4.1 Reasons Behind Employee Separation

Voluntary Separation. Voluntary separation, which normally begins after a request is placed in
this regard by the employee, can happen due to two reasons: professional reason and personal
reason. We shall now discuss these reasons in detail.
Professional reason. Employees may seek separation when they decide to seek better
positions, responsibilities and status outside the present organization. Efficient employees
would seek to expand their realm of knowledge and skills continuously by working in different
capacities/positions in various organizations. In their quest for greater responsibility, power and
status, they may seek separation from the organization.
Personal reasons. The important personal reasons for voluntary separation are relocation for
family reasons like marriage of the employees and health crisis of family members, maternity
and child-rearing. For instance, when working women get married, they often prefer to settle in
the partners place of occupation. Similarly, an employee may seek voluntary separation to look
after the child or parent.
Involuntary Separation. As mentioned earlier, an involuntary separation is caused by the

factors which remain beyond the purview of the employees. However, these factors may be
classified broadly into health problems, behavioral problems and organizational problems. We
shall now discuss these factors in detail
Health problems. Major health problems crippling the employees may make them invalid or
unfit to continue in the profession. For instance, accidents causing permanent disabilities and
illness of the employees like brain stroke and other terminal illnesses can lead to their
involuntary separation. Death of employees is another factor which results in their involuntary
separation.
Behavioral problems. The employee's objectionable and unruly behavior within the
organization may also lead to his involuntary separation from the organization. When the
employee’s behavior is unethical or violates the code of conduct in force, the organization may
initiate disciplinary actions, which may eventually result in his termination. This may constitute
an act of involuntary separation. Consistent failure to reach performance goals by an employee
can also result in his involuntary separation.
Organizational problems. Organizational problems are another important factor that

contributes to the involuntary separation of employees. The poor financial performance of an
organization may cause it to terminate the services of some of its employees as part of cost
control measure. Such terminations are also classified as involuntary separation. Similarly,
automation, organizational restructuring and rationalization can also result in employee
termination, discharge or layoff, broadly called involuntary separation.
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Terminating an employee in the Philippines is a complex process, especially if the

employee subject for termination is already a regular employee. The following are governing
laws regarding separation from the service.
 ARTICLE 282 TERMINATION BY EMPLOYER (DISMISSAL)
 An employer may terminate an employment for any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful
orders of his employer or representative in connection with his work.
b. Gross and habitual neglect by the employee of his duties.
c. Fraud or willful breach by the employee of the trust respond in him by his
employer or duty authorized representative.
d. Commission of a crime or offense by the employee against the person of
his employer or any immediate member of his family or his duly
authorized representative; and
e. Other causes analogous to the foregoing.
 ARTICLE 285 TERMINATION BY EMPLOYEES (RESIGNATION)

Without cause:
 If the resignation is without cause, the employee is required to give a 30- day
advance written notice to the employer, to enable the employer to look for a
replacement to prevent work disruption. If the employee fails to give a written
notice, he or she runs the risk of incurring liability for damages.
 An employee may terminate, without just cause, the employee- employer

relationship by serving a written notice (resignation letter) on the employer at
least one month in advance.
With cause:
 An employee may put an end to the relationship without serving any notice on
the employer for any of the following causes:
a. Serious insult by the employer or his representative on the honor and
person of the employee;
b. Inhuman and unbearable treatment accorded the employee by the
employer or his representative.
c. Commission of a crime or offense by the employer or his representative
against the person of the employee or any of the immediate members of
his family; and
d. Other causes analogous to any of the foregoing.
 ARTICLE 287 RETIREMENT

 Any employee may be retired upon reaching the retirement age established in
the collective bargaining agreement or other applicable employment contract.
 Article 280. Section 14. Retirement Benefits. (a) An employee who is retired
pursuant to a bona- fide retirement plan or in accordance with the applicable
individual or collective agreement or established employer policy shall be entitled
to all the retirement benefits provided therein or to termination pay equivalent to
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at least one- half month salary for every year of service, whichever is higher, a
fraction of at least six (6) months being considered as one whole year.
For the purpose of computing retirement pay, “one- half month salary” shall include all of the
following:
a) Fifteen (15) days salary based on the latest salary rate;

b) Cash equivalent of 5 days service incentive leave; and
c) One- twelfth (1/12) of the thirteenth- month pay.
The computation should be as follows:
(1/12 x 365/12) = 0.083 x 30.41= 2.52
Thus, “one- half month salary” is equivalent to 22.5 days.
Minimum retirement = daily rate x 22.5 days x number of years in service
The retirement benefits under R.A. 7641 abd R.A. 8558 are separate and distinct from those
granted by the Social Security System.
 Regular Employment - is a type of employment where the employee has been engaged
to perform activities which are usually necessary or desirable in the usual business or
trade.
 Probationary Employment - refers to the services of an employee who has been
engaged on probationary basis. He/ she may be terminated only for a just cause or
when authorized by existing laws, or when he/ she fails to qualify as a regular employee.
 Part- time employment - refers to workers employed to render work for a less than the
normal eight- hour working day or those who work less than the normal six working days
in a week. This type of worker often maintains more than one employer to earn more.
 Commission- paid employment - is when workers are paid depending on the income
they derived for their employer.
 Casual employment - happens when employees are hired for a particular period or
season. They may be hired as temporary replacements of on- leave regular employees
or are hired during peak seasons when more workers are needed.
 Contractual employment - is the state when workers are employed at any time but for a
definite period not exceeding six (6) months. This type of employment is the most
commonly used by the employers in the Philippines today in an effort to achieve more
flexible work force as a key factor for survival in the situation of heightened competition.
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CHAPTER 8: COMPENSATING HUMAN RESOURCES
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Compensation is the set of rewards that organization provide to individuals in return for
their willing to perform various jobs and tasks within the organization. It includes all forms
financial returns and tangible services and benefits employees receive as part of an
employment relationship. It also includes various elements such as based salary, incentive,
bonuses, benefits and other rewards.
Base wages and salaries are the hourly, weekly or monthly pay that employees receive
and exchange for their work. In most situations, these makes up the largest portion of an
employee`s total compensation.
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Compensation has some important objectives. To achieve, these objectives a well-

conceived compensation scheme or plan may be established. These objectives are mentioned
in the following point.
1. To be legal: It must get approval from the govt. or top management in the organization.
2. To be adequate: Compensation must be sufficient so that needs of the employees are fulfilled
substantially.
3. To be Motivational: Compensation must increase the level of motivation and job satisfaction
of the employees.
4. To be equitable: Compensation policy should be declared in such a way so that no
discrimination can be observed.
5. To provide security: Employees must have guarantee of getting wages or compensation
regularly without any break.
6. To be cost benefit effective: The organization must make a balance between cost for giving
compensation and benefits to be accrued from the employees
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Direct compensation consists of cash directly paid to the employee in exchange for
his/her. Included in this category are:
a. Basic pay
- the hourly wage or weekly/monthly salary earned.
b. Premium pay
- refers to the additional compensation required by law for work performed
within 8 hours nonworking days, such as rest days and special days.
c. Base pay progression
- movement of base pay overtime, from year to year.
d. Variable pay
- incentive or bonus pay that does not fall into base pay; such earnings may
be based on performance against preset goals (incentives) or pay at the
discretion of the company (bonuses); may be paid at the individual, team,
group, or organizational level.
8.2.1 Wages vs. Salaries
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Fundamentals to compensation understandable the distinction between wages and

salaries. Wages generally refer to hourly compensation paid to skilled and unskilled workers or
those performing blue-collar jobs, with tine as the basis the computation.
Salary, on the other hand, is income to an individual not on the basis of time but on the
basis of performance. Salaries are usually given to professional and managerial employees or
those who are performing white-collar jobs. A salary compensates an individual not for how
much time he/she in the organization but his/her overall contributions to the organization’s
performance.
Base pay, base pay progression, and variable pay add up to total cash compensation
paid in any given year.
o Benefits and perquisites or perks – In addition to direct cash, compensation is also

paid in the form of indirect cash or benefits that have monetary value.
o Indirect Compensation – quality of work life. Total rewards also include a broad array
of nonmonetary, but extremely important, rewards that we place under the general
umbrella of quality of work life. These rewards include:
a. Organizational Culture – the norms and values defining appropriate behavior in
the organization. One of the single, most important cultural expectations we
encounter today is employees’ confidence in the business and its leaders.
Quality of leadership and supervision are also defining elements of culture.
b. Intrinsic Values – rewards inherent in the work itself. These rewards come from
the act of performing. Among such outcomes are how interesting one’s work is,
the degree of variety experienced, the degree of autonomy and control over
one’s work, and the significance of the work to the business and the customers.
c. Career Opportunities – the prospects for development and growth. For
organizations, careers represent the most efficient way to grow the talent they
will need to compete; while for employees, careers represent valued
opportunities to grow and achieve professional and occupational goals.
Most wage and salary systems establish pay ranges for certain jobs based on the
relative worth of the job to the organization. An employee’s performance on the same job should
then determine where that employee’s pay falls within the job’s range. The key here is the
establishment of different pay ranges for the various jobs within the organization. A pay range
for a given job establishes a range of permissible pay, with a minimum and a maximum.
Establishing pay ranges involves two basic phases:
1) Determining the relative worth of the different jobs to the organization

(thereby ensuring internal equity)
2) Pricing the different jobs (thereby ensuring external equity)
Job evaluation is the primary used to determine the relative worth of jobs to the
organization. Wage surveys represent one of the most commonly used methods for pricing jobs.
The following are some basics determinants of pay.
I. External Factors
A. Market Factors
1. Supply and demand for labor
2. Economic condition and unemployment
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B.Existing pay level in the community

C.Government regulations and laws, i.e., minimum wage law
II. Organizational Factors
A.Type of industry
B.Profitability and company’s ability to pay
C.Unionized or nonunionized
D.Size of the company
E.Capital or labor intensive
F.Value of the job – contribution to the company
III. Job Factors
A.Skill
1. Mental requirements
2. Complexity of duties
3. Personal qualifications needed
4. Ability to make decisions, judgements
5. Preparation for the job – education, training, and knowledge
B. Responsibility
1. Money, commitments
2. Decision making
3. Supervision – work of others
4. Quality of work
5. Materials equipment, property
6. Confidential Information
C. Effort
1. Physical and mental effort required
2. Attention to details
3. Pressure of work
D. Working Conditions
1. Job conditions
2. Physical hazards
IV. Individual Factors

A. Performance, productivity
B. Experience
C. Seniority, length of service
D. Potential, promotability
These are the major factors influencing pay. All of these should be taken into
consideration to determine the proper compensation to be given to each employee.
1.3.1 Establishing Pay Rates

1) Conduct the salary survey (aimed at determining prevailing wage rates) for the
following reasons:
a. Price benchmark jobs
b. Majority of the position found in the company are usually priced directly in
the marketplace.
c. To collect data on benefits so as to provide a basis on which to make
decisions regarding employee benefits.
2) Determining the worth of each job through job evaluations.
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A. Ranking Method
This is the simplest and oldest method and the least often used job evaluation
technique. It involves ranking each job relative to all other jobs, usually based on overall
difficulty rather than on a number of compensable factors. Often, the evaluator prepares cards
with basic information about the jobs and then arranges the cards in the order of importance of
the positions. The job ranking method produces only an ordering of jobs and does not indicate
the relative degree of difference among them.
Advantages:
 Simplest and easiest to explain

 Takes less time to accomplish than other methods
Disadvantages:
 Provides no yardstick for measuring the value of one job relative to another
 It is limited to smaller organizations where employees are very familiar with various jobs.
 The method is highly subjective.
B. Job Classification or Job Grading Evaluation Method

This is a simple, widely used method in which jobs are categorized inti groups. The
groups are called classes if they contain similar jobs or grades if contain jobs that are similar in
difficulty but otherwise different. These sets of jobs are ranked on levels of difficulty or
sophistication. Certain classes or grades of jobs are defined on the basis of differences in
duties, responsibilities, skills, working conditions, and other job-related factors.
Advantages:
 Provides specific standards for compensation and accommodates any changes in the
value of individual jobs
 Can be constructed simply, quickly and clearly
 Easy to understand and explain to employees
Disadvantages:
 Jobs are forced to fit into categories that are not entirely appropriate and feelings of
inequity can result.
 Problems may arise in deciding how many classifications there should be because tpp
few classes will make it difficult to differentiate job value while too many classes make
writing definitions almost impossible.
C. Point System
Point system requires evaluators to quantify the value of the elements of a job. On the
basis of the job description or interviews with job occupants.
Steps:
1. Selection of key jobs. This represents jobs that are common throughout the industry.
The goal here is to select enough key jobs to represent each major internal variable in
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the pay structure for all the jobs being evaluated. A full and detailed job description is
necessary for each job.
2. Selecting compensable factors. Or characteristics of jobs that are deemed important
by the organization to the extent that it is willing to pay for them. The degree to which a
specific job possesses these compensable factors determines its relative worth.
For companies with recognized labor union, compensable factors selected must be
acceptable to both management and the union. In this method, job subfactors are used to
describe compensable factors in more detail.
Advantages:
 Can be easily interpreted and explained to employees because of its mathematical

nature
 Detailed and specific – Jobs are evaluated on a component basis and compared against
a predetermined scale.
 The system is easy to keep current as jobs change.
 Because of its quantitative nature, it is easy to assign monetary values to jobs.
Disadvantages:
 Time consuming and costly to develop

 Requires significant interaction and decision-making by the different parties involved in
conducting job evaluation.
D. Factor Comparison Method

This method is similar to the point method but slightly more complex, it involves a
monetary scale instead of a point scale, thus, not as popular as the point method. It is
absolutely essential that the rates of pay of key jobs be viewed as reasonable and fair to all
those making evaluations. Compensable factors are then identified. Typically, the number of
compensable factors is small. Examples of compensable factors are:
1. Skills
2. Responsibilities
3. Effort
4. Working conditions
Steps:
1. Identify key (benchmarks) jobs.

2. Identify job factors.
3. Rank jobs with respect to each of the factors independently.
4. Assign monetary amounts to each job on each factor.
5. Compare unique jobs with key jobs. This should be done by factor, to determine
how much each unique job should be paid.
6. Group similar jobs into pay grades. A pay grade is comprised of jobs of
approximately equal difficulty of importance as determined by job evaluations.
7. Price each pay grade. The jobs are then priced and the total pay for each job is
divided into pay for each factor.
Advantages:
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 Relatively detailed and specific – jobs evaluated on a component basis and compared
against other jobs.
 Usually easier to develop than the point method
 Value of the job is expressed in monetary terms.
 Can be applied to a wide range of jobs
 Can be applied to newly created jobs
Disadvantages:
 Relatively difficult to explain to employees since the pay for each factor is based on
judgements that are subjective
 The standards used to determine the pay for each factor may have built-in biases that
would affect certain groups of employees like females or minorities.
In conducting job evaluation, the following must be taken into consideration:
1. Consistency – This is to establish reliability. It is achieved when two people evaluating

the same jobs provide similar ratings made by one person on two different occasions.
2. Freedom form bias – The process should be free from political considerations or
personal biases. Those making the evaluation should be objective.
3. Correctability – Firms should provide mechanisms to modify inaccurate or out-of-date
evaluations, thus, the need to periodically review and update job evaluation results.
Employees should also be allowed to review the evaluation of their jobs and to appeal
the ratings if dissatisfied.
4. Representativeness – All employees affected by the process should have their concerns
represented.
5. Accuracy of information – Ratings must be based on accurate information, that is, those
making the evaluations should be quite knowledgeable of the jobs being rated.
Employees can be paid for the time they work, the output they produce, or a combination
of these two factors.
1. Payment for Time Worked

Pay surveys are used to establish competitive pay for the industry and job evaluation
is the principal method for setting time-pay schedules. This method has no direct relation
to the workers output.
Pay is usually adjusted upward through six types of increases:
a. General – across-the-board increase for all employees

b. Merit increases -paid to employees based on some indicator of job
performance
c. Cost of living adjustment
d. Reclassification increase
e. Level adjustment
f. Promotional increase
2. Incentive Forms of Compensation

This is a method of compensating employees on the basis of output which means,
more production, more earnings. The organization first establishes performance
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standards to determine the quantity a person can be expected to produce in a given

period of time. The firm sets wages based on how well workers perform relative
standard; their pay typically equals the market rate for the job, and if they exceed the
standard, they receive higher than market wages.
Classifications:
a. Piecework or payment results – This is a system of pay based on the number of items
produced or processed by each individual worker in a unit time such as times per hour or
items per day. Since individual output can be easily quantified, peso value per each unit
or item produce is also given a fixed rate or amount. This provides a strong incentive to
the worker to produce more.
b. Individual incentive plans – This reward individual performance on a real-time basis for
meeting a goal or hitting a target rather than increasing a person’s base salary at the
end of the year. An individual receives some level of salary increase or financial rewards
in conjunctives with demonstrated outstanding performance. This is used when
performance can be quantified in terms of number units of output or similar measures.
 Advantage: simple to calculate and easily understood by employee
 Disadvantage: tendency of employer to raise production standards whenever
workers are found earning “excessive” wages
c. Group incentives – These are given when it is difficult to measure individual output or
when cooperation is needed to complete a task or project. The Japanese used
cohesiveness to reduce jealousy. The assume that rewarding only an individual or a few
workers will discourage a sense of teamwork.
3. Performance-based Rewards
Organization want employees to perform at relatively high levels and need to make it
worth their efforts to do so. It is believed that when rewards are associated with higher levels
of performance, it will presumably motivate the employees to work harder to achieve
awards. In this manner, their own self-interest coincides with the organization’s interests.
Thus, managers who truly want to improve people to perform at their highest level should
structure a reward system that engages ins such behavior.
4. Spot Bonuses
These are spontaneous incentives awarded to individuals far accomplishments not
readily measured by a standard. An example is to “recognize exemplary customer service
each month to identify employee of the month awardee.”
5. Skill and Knowledge-based Pay/Competency-based Pay

This sets pay levels on the basis of how many skills an employee has or how many
jobs he/she can do. This emphasizes the importance of an employee’s ideas, growth, and
development. Rewards are based on acquisition of and proficiency in new skills and
knowledge regardless of the employee’s length of service. Thus, this system rewards
employees for the acquisition of more skills or knowledge instead or for increased
performance.
This plan is advantageous for companies that face intense competitive pressure,
companies that are downsizing, or companies that want to encourage involvement.
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6. Merit Pay Plans

Merit pay is usually awarded to employees on the basis of the relative value of their
contributions to the organizations. Employees whom make greater contributions are given
higher pay than those who make lesser contributions.
Merit pay plans are compensation plans that base compensation on merit, e.g.,
giving employees pay raise with the use of valid and reliable measures of what merit entails.
7. Profit Sharing
At the end of the year, some portion of the company’s profits is paid into a profit-
sharing pool, which is then distributed to all employees. The rationale behind this scheme is
that everyone in the organization can expect to benefit when the company does well.
8. Stock Ownership Plans

Employees are gradually given a minor stake in ownership of a corporation.
Employees receive a claim of ownership of some portion of the stock held by the company
based on seniority and perhaps performance. Eventually, even an individual becomes an
owner of the company.
9. Executive Compensation
a) Base pay – guaranteed amount of money that the executive will get from the
company.
b) Incentive pay/executive perquisites or perks, e.g., stock option plan – an incentive
plan established to give company executives the option to buy company stocks in the
future at predetermined fixed price. This is over and above the other executive perks
solely given to executives.
https://www.coursehero.com/file/37532498/hrmdocx/
Chapter 9: Employee Relations and Employee Discipline

9.1 Importance of Labor Relations
Maintaining healthy employee relations in an organization is a pre-requisite for
organizational success. Strong employee relations are required for high productivity and human
satisfaction. Employee relations generally deal with avoiding and resolving issues concerning
individuals which might arise out of or influence the work scenario. Strong employee relation
depends upon healthy and safe work environment, cent percent involvement and commitment
of all employees, incentives for employee motivation, and effective communication system in the
organization. Healthy employee relations lead to more efficient, motivated and productive
employees which further lead to increase in sales level.
Good employee relation signifies that employees should feel positive about their identity,
their job as well as about being a part of such a great organization. Despite the importance of
strong and healthy employee relations, there are circumstances in the life of every organization
when employee and management relations are hampered. Instances of such circumstances are
as follows-
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1. When the employees do not behave as per accepted norms of behaviour, it is known
as employee indiscipline. Absenteeism, change in employee’s behaviour, slow
performance and grievances are all forms of employee indiscipline. Thus, when the
employees fail to meet management expectations in terms of standard performance and
behavior, it is referred to as indiscipline. In such cases, it must be ensured by the
management that steps should be taken so that employee’s behavior is in conformity
with the managerial expectations.
2. Similarly, the employees also expect from the management to provide them a safe
working environment, fair treatment, proper incentives, participation in decisions, and
needs satisfaction. The failure on part of management to meet these expectations is
termed as employee grievance.
3. When the employees fail to meet their own expectations whether in terms of personal
goals, career goals, performance, self-respect, etc it is referred to as employee stress.
Excessive workload, insufficient workload, peer pressure, excessive/unreasonable use
of authority by the management, lack of promotional opportunities, nature of job, etc all
again lead to employee stress.
All the above mentioned organizational factors influencing employees relation must be
carefully tackled. An optimistic approach to strengthen disciplinary culture rooted on shared
norms of employees should be adopted. An effective grievance redressal system should be
there. Stress management strategies should be followed in the organization.
Improving Employee Relations
Employee relations must be strengthened in an organization. To do so, following points must be

taken care of:-
i. Employee has expectation of fair and just treatment by the management. Thus,
management must treat all employees as individuals and must treat them in a fair
manner. Employee favoritism should be avoided.
ii. Do not make the employees’ job monotonous. Keep it interesting. Make it more
challenging. This can be done by assigning employees greater responsibilities or
indulging them in training programs..
iii. Maintain a continuous interaction with the employees. Keep them updated about
company’s policies, procedures and decisions. Keep the employees well-informed.
Informed employees will make sound decisions and will remain motivated and
productive. Also, they will feel as a member of organizational family in this manner.
iv. Employees must be rewarded and appreciated for a well-done job or for achieving/over-
meeting their targets. This will boost them and they will work together as a team.
v. Encourage employee feedback. This feedback will make the employers aware of the
concerns of employees, and their views about “you” as an employer.
vi. Give the employees competitive salary. They should be fairly paid for their talents, skills
and competencies.
vii. Be friendly but not over-friendly with the employees. Build a good rapport with the
employee. The employee should feel comfortable with the manager/supervisor rather
than feeling scared.
https://www.managementstudyguide.com/employee-relations.htm
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9.2 Prevention of Employee Misconduct
6 Steps for Handling Employee Misconduct

Handling and responding to employee misconduct can be a very stressful situation for an
HR professional. Not to mention, a huge liability. However, following a consistent procedure can
help the process go smoothly and can help you avoid further problems. The steps outlined
below are great strategies for effectively dealing with misconduct when a situation arises.
1. Gather all the facts about the incident: Taking the time to talk to all relevant
information will lead to good disciplinary decisions and may prevent future litigation.
When interviewing employees or witnesses, it’s always a good idea to have two
individuals in the room.
2. Don’t make termination decisions alone: When making an employment termination
decision, involve human resources or a senior member of management. This internal
review will ensure consistent discipline and minimize the risk of a discrimination claim.
3. Keep the situation in context with the employee’s history: Weigh the offense in the
context of the employee’s overall record. The disciplinary measure will likely be fairer. If
it’s the employee’s first incident of misconduct, consequences will often be less severe
than if it was the same employee’s sixth incident of misconduct.
4. Deal with situations as soon as possible: Waiting to respond to a disciplinary concern
may raise questions about your motive. If the discipline is severe, it’s undermined by the
employer’s delay in responding or may prompt questions as to the real motive behind
the discipline. Make sure that you are disciplining consistently. The longer you wait, the
more likely you will not discipline altogether.
5. Keep your goals in mind when disciplining: Remember that the intent is to correct
the misconduct and modify the behavior, not to punish the employee for wrongdoing.
6. Maintain all documentation related to the incident: Should the disciplinary decision
come into question, you’ll be thankful you’ve kept copies of interview transcripts, bits of
evidence and anything else that backs up your decision.
https://www.assuranceagency.com/blog-post/6-steps-for-handling-employee-misconduct
9.3 Addressing Employee Conduct Problems
Basic Guidelines to Address Employee Performance Problems
(Note that if your organization's policies about performance management indicate a specific
procedure for handling performance issues, that procedure should be followed very carefully.
Otherwise, a court may interpret your official policies to be modified by how you actually
handled a performance issue and you may lose protection from your related policies in court.)
1 .Note that performance issues should always be based on behaviors that were actually seen,
not on characteristics that you or someone else senses or intuits about the employee's
personality. .
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2. Convey performance issues to employees when you see first see the issues!
Don't wait until the performance review! Worse yet, don't ignore the behaviors in case they "go
away."
3. When you first convey a performance issue to an employee, say what you noticed and
would like to see instead.
Be specific about what you saw that you have a problem with. Ask the employee for feedback.
Ask the employee if there's any special training or more resources they need to do their job.
Explore if the job is configured so that must people would probably fail, and so the job needs to
be redesigned. Tell them that you want the behavior to improve. If they react strongly and claim
they will quit, give them a day to think it over. In any case, remind them that you support them in
their role.
4. Consider special circumstances.

You can usually fire someone if they committed certain gross acts, such as theft, blatant
insubordination, a major impropriety, e.g., telling information to competitors or spreading
confidential information about clients, etc. However, if there is poor performance or chronic
absenteeism because of potential verified alcoholism or depression, it's best to consult an
expert to deal with this situation.
5. Make notes about the first meeting and its results, and keep it in a file for yourself. You
might mention the situation to your board.
This note may come in handy later on if the performance problem persists. The board will likely
be a precious and objective asset to dealing with this situation, especially if things with the
employee get worse.
6. If the problem occurs again over the next two months, immediately issue them a
written warning. Also, update the board.
In the memo, clearly specify what you saw, mention the previous meeting and its date, say the
behaviors have not improved, warn them that if this occurs again over some period (e.g., the
next month), they will be promptly terminated. Meet with them to provide them the memo. If you
are convinced that the employee is trying hard, but can't improve, consider placing him or her
elsewhere in the organization. Attempt to have this meeting on other than on a Friday.
Otherwise, employees are left to ruminate about the situation without ready access to you for at
least three days.
7. On the third occurrence, consider firing the employee.
9.4 Employee Commitment: Get Rid of "It's Not My Job!"
The attitude “I don’t give a rip about my job” happens every single day.
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Employees get this way when they are bored with their job, or feel like a faceless cog in
a big wheel or don’t know how “what they do” specifically contributes to the goals of their
department or business unit. So what causes it? How can you, as a supervisor, prevent “It’s not
my job” from happening within your team or department?
Here are three ways to develop employee commitment.
1. Communicate the importance of what they do.
Every supervisor should be able to state a meaningful purpose for his department and
the work that is being done. Here is a short but powerful statement that was developed by a
manager for her five-person benefits group.
“Benefits are about people. It’s not whether you have the forms filled in or whether the checks
are written. It’s whether the people are cared for when they’re sick, helped when they’re in
trouble.”
It is a statement with the focus on the end result—serving people—rather than on the means or
process—completing forms. How well do you communicate the importance of what is being
done in your department?
2. Recognize the importance of recognition.
The motto of many supervisors is: “Why would I need to thank someone for doing
something he’s paid to do?” Workers repeatedly tell, with great feeling, how much they
appreciate a compliment. They also report how distressed they are when their supervisor is
quick to criticize mistakes but not acknowledge good work.
A pat on the back, simply saying “good going,” a dinner for two, a note about them to senior
executives, some schedule flexibility, a paid day off, or even a flower on a desk with a thank-you
note are a few of the hundreds of ways supervisors can show their appreciation. Money may get
people in the door but it doesn’t keep them motivated to go the extra mile.
3. Tap into the importance of involvement.
There may be no single motivational tactic more powerful than asking for people’s input.
An accounting manager presented a list of customer complaints at a staff meeting. She then
broke the group into teams to find ways to eliminate these service glitches.
Getting everyone involved in problem-solving accomplished three goals. It brought the

customers to the center of the department’s day-to-day operations; it lead to greater ‘buy-in”
when changes had to be made in a process, policy or procedures; and finally it said to everyone
that they and their ideas are valued.
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As one very proud production line worker in an automotive plant said to me, “They only
looked at what we could do from our neck down…now it’s for what we can do from our neck up.”
Management Success Tip:
It is true that most people must work to survive and money is certainly a motivator — but
up to a point. For your employees to achieve great things, they need to experience purpose,
recognition and involvement. As a supervisor you can provide that. It costs you nothing. And
you might gain greater productivity and profitability.
https://managementhelp.org/employeeperformance/problems.htm
9.5 Approaches to Discipline

Different Approaches towards Discipline in a Management are as follows:
Judicial Approach
Under this approach, the nature of offence in a particular situation is determined by carefully
weighing the evidence and taking all the steps prescribed for disciplinary procedure.
The law of natural justice is followed, i.e., the offender is given an opportunity to defend himself,
cite mitigating factors and to plead for clemency.
This is a fair process but it is time-consuming and leads to delays. In India, we are more
accustomed to this approach than to any other. This approach is best exemplified by domestic
enquiry.
Human Relations Approach
Under this approach the offender is treated as a human being. If he has violated the rules, the
human relations approach would ask the question, why did he violate the rule? For example,
sleeping during the night-shift might be due to the fatigue caused by factors over which the man
has no control, e.g. illness in the family.
In such a case, an attempt should be made to help the worker to get over such a personal
difficulty or to change the shift of duty or to shift him to a job which he can conveniently handle
rather than take an extreme view and punish him severely.
Human Resources Approach
Under this approach every employee is looked upon as a resource to the employer and that the
human resource is the most important factor of production. This resource has to be trained,
motivated and brought up to the level of efficiency required by the organization.
Indiscipline on the part of workers is due to (a) failure of the training and motivating system and
(b) the individual’s own failure to measure up to the requirements of conduct prescribed as the
prevailing norm in the organization. In the latter case, it is violation of the prevailing norm.
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In this context, extreme form of penalty like discharge or dismissal will be rarely resorted to, as
the offending human resource will have to be trained and motivated to work within the
requirements of the organization’s norm of behavior.
This approach would naturally attach a good deal of importance to discipline being more a
matter of self-control or self-discipline than a matter of external control.
Group Discipline Approach
If the organization has well-established norms of conduct, it should try to involve groups of
employees in the process of discipline.
If the management succeeds in making the group accept the organization’s norms as their
norms, by virtue of such involvement, then the main function of discipline will be a delegated
function than a management task.
The group as a whole can control an individual worker who is its member much more effectively
than the management can through penalties.
Leadership Approach
Every manager has to develop a leadership quality as he has to guide, control, train, develop
and lead a group of men and act as a leader whatever may be his position in the organizational
hierarchy.
He can administer discipline among the men, whose work is under his direct supervision, much
more than even the top management can. He has a day-to-day relationship with his men and
the worker listens to him. Again, they would listen to him all the more if his own behavior is
disciplined.
http://www.yourarticlelibrary.com/business-management/what-are-the-different-approaches-towards-
discipline-in-a-management/2631
Chapter 10: Employee Benefits

10.1 Classification of Employee Benefits and Services
Benefits are any perks offered to employees in addition to salary. The most common
benefits are medical, disability, and life insurance; retirement benefits; paid time off; and fringe
benefits.
Benefits can be quite valuable. Medical insurance alone can cost several hundred
dollars a month. That's why it's important to consider benefits as part of your total
compensation. Make sure you understand which ones you will receive.
1. Medical Insurance
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Medical insurance covers the costs of physician and surgeon fees, hospital rooms, and
prescription drugs. Dental and optical care might be offered as part of an overall benefits
package. It may be offered as separate pieces or not covered at all. Coverage can sometimes
include the employee's family (dependents).
Employers usually pay all or part of the premium for employee medical insurance. Often
employees pay a percentage of the monthly cost. The cost of insurance through an employer.
2. Disability Insurance
Disability insurance replaces all or part of the income that is lost when a worker is unable to
perform their job because of illness or injury. This benefit is not commonly offered. There are
two main types of disability insurance:
 Short-term disability insurance begins right away or within a few weeks of an accident, illness,
or some other disability. For example, someone hurt in a car accident would be offered a few
paid weeks to recover.
 Long-term disability insurance provides benefits to an employee when a long-term or
permanent illness, injury, or disability leaves the individual unable to perform his or her job. For
example, an employee with spinal injuries could be entitled to long-term disability benefits until
retirement age.
3. Life Insurance
Life insurance protects your family in case you die. Benefits are paid all at once to the
beneficiaries of the policy — usually a spouse or children.
You can get life insurance through an employer if they sponsor a group plan. Company-
sponsored life insurance plans are standard for almost all full-time workers in medium and large
firms across the country. You can also buy it privately, but this is usually more expensive.
4. Retirement Benefits
Retirement benefits are funds set aside to provide people with an income or pension when
they end their careers. Defined benefit plans are offered most frequently in those sectors with
the highest levels of unionization. These include public administration, construction,
manufacturing, and trade, transportation, and utilities.
5. Domestic Partner Benefits

Some employers offer benefits to unmarried domestic partners, while others do not.
Requirements to qualify vary from simply signing a form to showing proof of domestic
partnership or financial interdependence.
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A common domestic-partner benefit is access to family health insurance, but that benefit
is considered taxable income by the federal government.
6. Paid Time Off

Paid time off (also referred to as PTO) is earned by employees while they work. The three
common types of paid time off are holidays, sick leave, and vacation leave.
Most employees earn these as separate benefits This combines sick leave and vacation into
one account for the employee to use as needed.
7. Fringe Benefits
Fringe benefits are a variety of non-cash payments are used to attract and retain talented
employees. They may include tuition assistance, flexible medical or child-care spending
accounts (pre-tax accounts to pay qualified expenses), other child-care benefits, and non-
production bonuses (bonuses not tied to performance).
Tuition reimbursement can be an especially important benefit if you plan to take classes in
your personal time. This can be a great way to advance in your career. Most firms offering
tuition assistance require that courses are related to job duties.
https://careerwise.minnstate.edu/jobs/benefittypes.html
Chapter 11: Safety and Health

11.1 Promoting Employees Health and Safety
Employees working in such industries are exposed to life-threatening hazards like

working at heights, exposure to chemicals, and exposure to various poisonous gases to name a
few. They are not only life threatening, but might also reduce the efficiency while on ground. Any
company’s major loss would be the loss of employees when they are not safe and secure during
their working hours. Managers should fully utilize all the resources to create and maintain health
and safety standards for an organization.
Below are the 5 strategies that can be implemented to encourage and sustain employee
wellness and safety.
1. Establish Open Communication
A key component in maintaining the trust of the employees is to encourage open

communication on any health or safety related issues. No employee should fear in expressing
concern for safety goals in the company. An HR Personnel should hold one-on-one meetings
with the employees so that if any employee Is fearing to express safety concerns to the direct
managers, will feel more at ease while talking to an HR personnel.
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2. Implement strict safety policy
Those employees, who are not designated to work in a certain high-risk position should be
discouraged to enter hazardous zones. By labeling unsafe environments, posting stringent
warning signs and mentioning the qualifications required for such jobs on worksites, the
candidates will get to know if they are suitable for such roles. For a corporate office that have
less physical risks, it is advisable to identify all potential hazards early on such as broken glass
or any kind of leaks.
3. Provide health and safety training
It is a must to provide required safety training programs for all employees who should
necessarily include emergency action plan training and how to treat yourself while injured and
alone. Make sure the employees are well efficient at the time of crisis by holding fire and
emergency drills from time to time.
Encourage employees to be responsible if they fall sick and take leaves without reprimand.
With safety standards in place, a company can identify all the potential risks and keep the
employees safe and sound while on the ground.
4. Coordinate with facility management
Facilities department play an important role in carrying out safety policies for business. By
harmonizing Occupational Health and Safety goals in the organization, facilities manager can
better protect employees. Encourage them to invest in safety tools and equipments, such as
anti-slip safety mats, Eye Protection, Ear Protection, masks etc. These simple yet effective
products will cultivate a general sense of wellbeing in the workplace.
5. Use positive consequences
The fear of discipline which drives under-reporting and stifles involvement must be driven
out of culture.
Discipline has a place, but most safety issues can be effectively dealt without discipline,
which has side effects that work against building a culture of safety. When discipline is used
disproportionately in relation to positive consequences, it leads to lower morale, reduced trust,
lower productivity, less teamwork and lack of engagement. It also suppresses reporting
incidents which cripples the organization’s ability to learn from mistakes and become more
proactive.
https://www.entrepreneur.com/article/276830
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11.2 Reasonable Working Condition
 Working environment: an introduction
Your working environment is affected by factors including health and safety, security and
working hours. A poor working environment can damage your health and put your safety at risk.
Your employer is legally responsible for ensuring good working conditions, but you also
have a responsibility to work safely .
Health and safety
The Workplace Health, Safety and Welfare Regulations – which became law in 1993 –
lay down minimum standards for workplaces and work in or near buildings.
These regulations apply to most types of workplace except transport, construction sites
and domestic premises. Workplaces must be suitable for all who work in them, including
workers with any kind of disability.
You have the right to a safe and healthy workplace which is suitable for all who work in
or visit them. This means that your employer must look at issues such as space, cleanliness,
lighting and ventilation and adequate toilet, washing and changing facilities.
Workplace dangers are not always obvious but paying attention to these issues and
those related to areas such as emergency lighting, suitable floors, safe traffic routes, windows
and doors will help to achieve this.
Working practices and conditions that seem harmless can eventually lead to serious illness.
Employers’ duties and those of controllers of premises
Employers and controllers of non domestic premises have a general duty to make sure
that the workplace meets certain conditions.
 Maintenance: make sure the workplace, equipment, devices and systems are maintained,
in working order and in good repair.
 Ventilation: make sure enclosed workplaces are ventilated and have enough fresh and
purified air.
 Temperature: maintain a reasonable temperature inside building during working hours.
Enough thermometers must be provided.
 Lighting: must be suitable and efficient and natural so far is reasonably practical.
Emergency lighting must be provided where lighting failure would cause danger.
 Cleanliness: keep workplaces and furnishings clean. Waste materials must not
accumulate, except in suitable containers.
 Space: make sure workrooms have enough floor area, height and unoccupied space.
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 Workstations: must be suitable for the worker and work. A suitable seat must be provided
where necessary.
 Floors: must be suitable and not uneven or slippery, presenting a safety risk. They must be
kept free from obstructions likely to cause a slip, trip or fall. Handrails must be provided on
staircases, except where they would obstruct traffic.
 Falls: take suitable and sufficient measures to prevent people falling or being struck by
falling objects. Tanks must be securely covered and fenced where there is a risk of a
person falling into a dangerous substance.
 Windows: make sure that windows, and transparent and translucent surfaces, consist of
safe material, are clearly marked, and safe when open.
 Traffic: organise workplaces to allow safe traffic circulation by pedestrians and vehicles.
 Doors: make sure doors and gates are suitably constructed and comply with certain
specifications.
 Escalators: make sure escalators function safely, are equipped with necessary safety
devices and are fitted with easily identifiable and readily accessible emergency stop
controls.
 Toilets: provide suitable and sufficient sanitary conveniences at readily accessible places.
 Washing: provide suitable and sufficient washing facilities at readily accessible places
 Water: provide an adequate supply of wholesome drinking water and cups, readily
accessible and conspicuously marked.
 Clothing: provide suitable and sufficient accommodation for clothing, as well as changing
facilities where special clothing is worn.
 Restrooms: provide suitable and sufficient rest facilities at readily accessible places. Rest
rooms and areas must include suitable arrangements to protect non-smokers from
discomfort. Suitable facilities must be provided for pregnant or nursing workers to rest and
for workers to eat meals.
Under the law, employers must:
 decide what could harm you in your job and take precautions to stop it;
 explain how risks will be controlled and tell you who is responsible for this;
 give you the training and information you need to do your job safely;
 provide you with any equipment and protective clothing you need and ensure it is
maintained;
 provide toilets, washing facilities and drinking water;
 provide first aid facilities;
 record injuries, diseases and dangerous incidents at work and report these to the Health
and Safety Executive where relevant;
 have insurance that covers you in case you get hurt at work or ill through work;
 work with anyone sharing the workplace or anyone who is providing employees (such as
agency workers), so that everyone’s health and safety is protected.
Your health and safety responsibilities are to:
 follow any training you have received when using equipment or materials your employer
has given you;
 take reasonable care of your own and other people’s health and safety;
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 co-operate with your employer on health and safety;

 tell someone if you think the work or inadequate precautions are putting anyone’s health
and safety at risk.
https://www.unison.org.uk/get-help/knowledge/health-and-safety/working-environment/
11.3 Causes of Work Related Accident and Illnesses
Accidents can happen any time—obviously they’re not intentional, and there are infinite
possibilities for something to go wrong. You can avoid many accidents, however, by taking
certain precautions to ensure that the most likely mishaps will not occur.
Here we’ve gathered some information about the most common causes of workplace
accidents so you can be prepared to prevent injuries and other incidents:
1. Lifting
It is so easy to injure yourself while lifting heavy objects. Eliminate back injuries and
muscle strains by ensuring that everyone practices safe lifting procedures. It’s always best to
recruit a helping hand or to use machinery to move large objects.
2. Lighting
Poor lighting can be a major cause of trips, falls, and other workplace injuries. If you
can’t see the hazards, they’re much more likely to become serious problems. Every area in the
workplace should be well lit, including offices, warehouses, parking areas, and outside
entryways.
3. Violence
Hundreds of people die each year from workplace violence. Employees in conflict with
one another tend to be especially unsafe when working together. OSHA has guidelines for
violence prevention if you need help resolving these issues in your workplace.
4. Trips/Falls
Consistently one of the leading causes of workplace injuries, trips and falls continue to
be a major problem. Slippery floors, improper footwear, rushing employees, and weather
conditions all contribute to trip and fall hazards. Make sure all employees are well trained on the
relevant safety information and verify that the physical conditions in the workplace are up to
standards to lower the number of injuries in this category.
5. Stress
Physical and mental stress are less commonly recognized workplace hazards, but they
can cause serious or even fatal accidents. Employees must be in the right mindset and
physically sound for the job. Communicate the importance of mental and physical health to all
employees. It’s important to take breaks and seek help with managing stressful situations.
6. Fatigue
As mentioned before, it is imperative that employees show up to work physically
prepared. A lack of adequate sleep can cause exhaustion, inattention, and accidents. Even a
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well-rested employee can grow fatigued while on the job, so it’s necessary to take breaks at
regular intervals or when needed.
7. Shortcuts
Employees should never take shortcuts on the jobs, especially when dealing with
dangerous machinery or circumventing safety procedures. The regulations are in place
to protect employees and to make sure everything is done correctly.
8. Overconfidence
Employees should be confident about what they’re doing, but overconfidence may
diminish carefulness or attention. Overconfident employees are likely to ignore safety
precautions and forego double checking their work. It’s important for them to understand that
accidents can occur any time to anyone, no matter how skilled or experienced.
9. Poor Housekeeping
A messy workplace is a dangerous workplace. Objects and debris on the floors pose
tripping hazards, wet or dirty floors can cause slips, cluttered surfaces can conceal sharp
objects, poorly contained chemicals are an obvious hazard… you get the picture. Besides the
dangers, good housekeeping sets a good example for other safety precautions as well.
10. Lack of Preparation
No one should ever be on the job without the proper knowledge, training, certifications,
tools, or PPE. Preparedness on the job is one of the absolute best ways for employees to stay
safe.
11. Mental Distractions
It’s easier said than done, but employees must try to leave personal matters at the door.
Being distracted on the job is similar to being fatigued, stressed, or overconfident. Workers
simply cannot perform their jobs to their full potential if their mind is elsewhere.
https://blog.vingapp.com/corporate/11-common-causes-of-workplace-accidents
Both employees and employers have a duty of care, as defined by the Common Law
Duty of Care, to ensure they are safe and operate safe practices at work to prevent illness and
injury to themselves or others, and to comply with the relevant legislation for their workplace or
industry.
Regulation 8 requires employers and self-employed people to report cases of diagnosed

reportable diseases that are linked with occupational exposure to specified hazards, including
those associated with exposure to carcinogens, mutagens or biological agents, as soon as the
responsible person receives a diagnosis. The reportable diseases and associated hazards
include:
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o Carpal Tunnel Syndrome: where the person’s work involves regular use of percussive or
vibrating tools;
o Cramp of the hand or forearm: where the person’s work involves prolonged periods of
repetitive movement of the fingers, hand or arm;
o Occupational dermatitis: where the person’s work involves significant or regular
exposure to a known skin sensitiser or irritant;
o Hand Arm Vibration Syndrome: where the person’s work involves regular use of
percussive or vibrating tools, or holding materials subject to percussive processes, or
processes causing vibration;
o Occupational asthma: where the person’s work involves significant or regular exposure
to a known respiratory sensitiser;
o Tendonitis or tenosynovitis: in the hand or forearm, where the person’s work is
physically demanding and involves frequent, repetitive movements.
https://fitforwork.org/blog/illness-injury-and-impairments-caused-by-work/
11.4 Occupational Diseases

An occupational disease is a disease or disorder that is caused by the work or working
conditions.
This means that the disease must have developed due to exposures in the workplace
and that the correlation between the exposures and the disease is well known in medical
research. Or put in another way, it must not be likely, beyond reasonable doubt, that the disease
was caused by factors other than work.
Examples of occupational diseases:
 Tennis elbow
 Allergy
 Hearing loss
 Asthma
 Exposures in the workplace that may cause some of the above diseases:
 Repetitive work movements
 Work with arms lifted above shoulder height
 Heavy lifting work
 Work in a very noisy environment
 Work with hazardous substances
When there is adequate medical documentation that a disease is caused by a certain exposure,
the disease is included on the list of occupational diseases.
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The list of occupational diseases is a list of work-related diseases which are recognized as
industrial injuries if a person has had certain exposures in the workplace. The list is constantly
updated so that it covers the most recent research.
Recognition of an occupational disease
In order for you to get compensation and other benefits as a consequence of a disease, the
disease must be recognised as an industrial injury.
A disease can be recognised in two different ways:
If the disease and the exposure causing the disease are on the list of occupational diseases, we
recognise the disease as an occupational disease
If the disease is not on the list of occupational diseases, it is still possible to recognise it as an
occupational disease if the Occupational Diseases Committee, in their recommendation, state
that it is likely, beyond reasonable doubt, that the disease was caused by special factors in the
workplace
https://aes.dk/en/english/industrial-injuries/what-is-an-industrial-injury/what-is-an-occupational-
disease.aspx
11.5 Cost of Accident
The Hidden Cost of Accidents
Even a simple or minor accident can be expensive. Some of the costs associated with
accidents can be quickly identified such as medical treatment, lost wages and decreased
productivity. These easily-identified expenses are often known as the "direct" costs associated
with accidents. Less evident expenses associated with accidents are known as "indirect" or
"hidden" costs and can be several times greater than the value of the direct costs. Listed below
are just a few of the hidden costs associated with most accident.
1. The expense and time of finding a temporary replacement for the injured worker,
2. Time used by other employees to assist the injured worker,
3. Time used by supervision to investigate the mishap, preparation of accident reports and
adjustments made to work schedules,
4. Property damage to tools, materials and equipment,
5. Delays in accomplishment of work task by a group.
http://web.utk.edu/~jfwalker/cost.htm
11.6 Occupational Safety and Health Center
Occupational safety and health (OSH), also commonly referred to as occupational

health and safety (OHS), occupational health, or workplace health and safety (WHS), is a
multidisciplinary field concerned with the safety, health, and welfare of people at work. These
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terms also refer to the goals of this field, so their use in the sense of this article was originally an
abbreviation of occupational safety and health program/department etc.
The goals of occupational safety and health programs include to foster a safe and
healthy work environment. OSH may also protect co-workers, family members, employers,
customers, and many others who might be affected by the workplace environment. In the United
States, the term occupational health and safety is referred to as occupational health and
occupational and non-occupational safety and includes safety for activities outside of work.
In common-law jurisdictions, employers have a common law duty to take reasonable
care of the safety of their employees.] Statute law may in addition impose other general duties,
introduce specific duties, and create government bodies with powers to regulate workplace
safety issues: details of this vary from jurisdiction to jurisdiction.
https://en.wikipedia.org/wiki/Occupational_safety_and_health
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Human Resource Management

CHAPTER 1: INTRODUCTION TO HUMAN RESOURCE

1.2 Scope of HRM

1.3 Features of HRM

1.4 The Major functions of Human Resource Management

Workforce Planning and Employment (recruitment and selection)

Workforce planning involves recruitment, selection, orientation, and exit process.

Human Resource Development (training & development)

Total Rewards (compensation & benefits)

The HR benefits team is responsible for acquiring and administering an attractive

Employee and Labor Relations

1.5 Four Fundamental Principles of HRM

As we move into an era of unprecedented technological change, businesses have been

3. Make everyone accountable

CHAPTER 2: JOB ANALYSIS

2.2 PURPOSE OF JOB ANALYSIS

Purpose of Job Analysis

Determining Training Needs

 equipment to be used in delivering the training

 job duties that should be included in advertisements of vacant positions;

 goals and objectives

2.3 METHODS AND ASPECTS OF JOB ANALYSIS

 review of job classification systems

What Aspects of a Job Are Analyzed?

Job Analysis should collect information on the following areas:

 Tools and Equipment

Supervision given and received. Relationships with internal or external people.

2.4 IDEAL JOB ANALYSIS

An ideal job analysis should include

Duties and Tasks:

Tools and Equipment:

2.5 BENEFITS OF JOB ANALYSIS

Organizational structure and design :

Recruitment and selection :

Performance appraisal and training/development :

Promotions and transfer :

Career path planning :-

Health and safety :

Acceptance of job offer :

2.6 STEPS IN CONDUCTING JOB ANALYSIS

Six Steps to Conducting a Job Analysis

STEP 1: COLLECT INFORMATION ABOUT THE JOB

 Position descriptions and classification standards

 Subject matter expert (SME) input

STEP 2: LIST THE TASKS

Prepare preliminary lists of tasks and competencies required to perform successfully on

STEP 3: IDENTIFY THE CRITICAL TASKS

Have the SMEs rate the importance of each task.

STEP 4: IDENTIFY THE CRITICAL COMPETENCIES

STEP 5: LINK THE TASK AND COMPETENCIES

STEP 6: CHOOSE SELECTIVE AND QUALITY RATING FACTORS

Determine which competencies, if any.

2.7 DEFINITION OF JOB DESCRIPTION

Job description is an informative documentation of the scope, duties, tasks,

2.8 MAIN USES AND STRUCTURE OF A JOB DESCRIPTION

2.9 WRITING JOB DESCRIPTION

3. Skills and competencies

An example of a competency, on the other hand, is strong communication, which is an innate

CHAPTER 3: RECRUITMENT OF EMPLOYEES

3.2 PURPOSE AND IMPORTANCE OF RECRUITMENT

 The organization gets happier and more productive employees

 Attrition rate reduces