Professional Documents
Culture Documents
INTRODUCTION
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changing type of working people became more and more
important there by leading to HRM which is an
advancement of personnel management.
Evolution of HRM
Scope of HRM/functions of HRM
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important area of HRM. The employees are informed about
the background of the company, explain about the
organizational culture and values and work ethics and
introduce to the other employees.
5. Performance appraisal :-
Once the employee has put in around 1 year of
service, performance appraisal is conducted that is the HR
department checks the performance of the employee.
Based on these appraisal future promotions, incentives,
increments in salary are decided.
8. Industrial relations :-
Another important area of HRM is maintaining co-
ordinal relations with the union members. This will help the
organization to prevent strikes lockouts and ensure smooth
working in the company.
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• HRM involves management functions like planning,
organizing, directing and controlling
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3. Women in the work force :-
The number of women who have joined the work force
has drastically increased over a few years. Women
employees face totally different problems. They also have
responsibility towards the family. The organization needs to
consider this aspect also. The challenge before the HR
manager lies in creating gender sensitivity and in providing
a good working environment to the women employees.
4. Handicapped employees :-
This section of the population normally faces a lot of
problems on the job, very few organization have jobs and
facilities specially designed for handicapped workers.
Therefore the challenge before the HR manager lies in
creating atmosphere suitable for such employees and
encouraging them to work better.
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Changing the method of working, changing the
attitude of people and changing the perception and values
of organization have become necessary today. Although
the company may want to change it is actually very difficult
to make the workers accept the change. The challenge
before the HR manager is to make people accept change.
Significance/importance/need of HRM
1. Objective :-
HRM helps a company to achieve its objective from
time to time by creating a positive attitude among workers.
Reducing wastage and making maximum use of resources
etc.
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in the future for the top level jobs. Thus one of the
advantages of HRM is preparing people for the future.
Job analysis
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Salary and incentives Training
Need/importance/purpose/benefits of job
analysis
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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 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.
4. Job evaluation :-
Job evaluation refers to studying in detail the job
performance by all individual. The difficulty levels, skills
required and on that basis the salary is fixed. Information
regarding qualities required, skilled levels, difficulty levels
are obtained from job analysis.
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9. 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.
1. Personal observation :-
In this method the observer actually observes the
concerned worker. He makes a list of all the duties
performed by the worker and the qualities required to
perform those duties based on the information collected,
job analysis is prepared.
3. Interview method :-
In this method an interview of the employee is
conducted. A group of experts conduct the interview. They
ask questions about the job, skilled levels, and difficulty
levels. They question and cross question and collect
information and based on this information job analysis is
prepared.
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incident will give an idea about the problem, how it was
handled, qualities required and difficulty levels etc. critical
incident method gives an idea about the job and its
importance. (a critical means important and incident means
anything which takes place in the job)
5. Questioner method :-
In this method a questioner is provided to the
employee and they are asked to answer the questions in it.
The questions may be multiple choice questions or open
ended questions. The questions decide how exactly the job
analysis will be done. The method is effective because
people would think twice before putting anything in writing.
6. Log records :-
Companies can ask employees to maintain log records
and job analysis can be done on the basis of information
collected from the log record. A log record is a book in
which employees record /write all the activities performed
by them on the job. The records are extensive as well as
exhausted in nature and provide a fair idea about the
duties and responsibilities in any job.
7. HRD records :-
Records of every employee are maintained by HR
department. The record contain details about educational
qualification, name of the job, number of years of
experience, duties handled, any mistakes committed in the
past and actions taken, number of promotions received,
area of work, core competency area, etc. based on these
records job analysis can be done.
Job design
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Factors affecting job design: - There are various factors
which affect job design in the company. They can be
explained with the help of diagram.
a) Task characteristics :-
Task characteristics refer to features of the job that is
depending on the type of job and the duties involved in it
the organization will decide, how the job design must be
done. Incase the company is not in a position to appoint
many people; a single job may have many duties and vice
versa.
c) Ergonomics :-
Ergonomics refers to matching the job with physical
ability and characteristics of the individual and in providing
an office environment which will help the person to
complete the jobs faster and in a comfortable manner.
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d) Work practices :-
Every organization has different work practices.
Although the job may be the same the method of doing the
job differs from company to company. This is called work
practice and it affects job design.
Environmental factors :-
Environmental factors which affect job design are as
follows
Behavioral factors :-
Job design is affected by behavioral factors also. These
factors are
a) Feedback :-
Job design is normally prepared on the basis of job
analysis and job analysis requires employee feedback
based on this employee feedback all other activities take
place. Many employees are however not interested in
providing a true feedback because of fear and insecurity.
This in turn affects job deign.
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b) Autonomy :-
Every worker desires a certain level of freedom to his
job effectively. This is called autonomy. Thus when we
prepare a job design we must see to it that certain amount
of autonomy is provided to the worker so that he carries his
job effectively.
c) Variety :-
When the same job is repeated again and again it
leads to burden and monotony. This leads to lack of
interest and carelessness on the job. Therefore, while
preparing job design certain amount of variety must be
provided to keep the person interested in the job.
• Job rotation
• Job enlargement
• Job enrichment
Job Rotation:-
Job rotation involves shifting a person from one job to
another, so that he is able to understand and learn what
each job involves. The company tracks his performance on
every job and decides whether he can perform the job in an
ideal manner. Based on this he is finally given a particular
posting. Job rotation is done to decide the final posting for
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the employee e.g. Mr. A is assigned to the marketing
department whole he learns all the jobs to be performed for
marketing at his level in the organization .after this he is
shifted to the sales department and to the finance
department and so on. He is finally placed in the
department in which he shows the best performance .Job
rotation gives an idea about the jobs to be performed at
every level. Once a person is able to understand this he is in
a better understanding of the working of organization
Avoids monopoly :-
Job rotation helps to avoid monopoly of job and
enable the employee to learn new things and therefore
enjoy his job
1. Frequent interruption :-
Job rotation results in frequent interruption of
work .A person who is doing a particular job and get it
comfortable suddenly finds himself shifted to another job
or department .this interrupts the work in both the
departments
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Quality of work done by a trained worker is
different from that of a new worker .when a new worker I
shifted or rotated in the department, he takes time to learn
the new job, makes mistakes in the process and affects
the quality of the job.
Job enlargement
• Job rotation
• Job enlargement
• Job enrichment
Job enlargement :-
Job enlargement is another method of job design
when any organization wishes to adopt proper job design it
can opt for job enlargement. Job enlargement involves
combining various activities at the same level in the
organization and adding them to the existing job. It
increases the scope of the job. It is also called the
horizontal expansion of job activities.Jon enlargement can
be explained with the help of the following example - If Mr.
A is working as an executive with a company and is
currently performing 3 activities on his job after job
enlargement or through job enlargement we add 4 more
activities to the existing job so now Mr. A performs 7
activities on the job.
It must be noted that the new activities which
have been added should belong to the same hierarchy level
in the organization. By job enlargement we provide a
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greater variety of activities to the individual so that we are
in a position to increase the interest of the job and make
maximum use of employee’s skill. Job enlargement is also
essential when policies like VRS are implemented in the
company.
1. Variety of skills :-
Job enlargement helps the organization to improve and
increase the skills of the employee due to organization as
well as the individual benefit.
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Job enrichment
There are various methods in which job design can be
carried out. These methods help to analysis the job, to
design the contents of the and to decide how the job must
be carried out .these methods are as follows :- (5 marks
each)
• Job rotation
• Job enlargement
• Job enrichment
Job enrichment :-
Job enrichment is a term given by Fedric herzberg.
According to him a few motivators are added to a job to
make it more rewarding, challenging and interesting.
According to herzberg the motivating factors enrich the job
and improve performance. In other words we can say
that job enrichment is a method of adding some motivating
factors to an existing job to make it more interesting. The
motivating factors can be
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are power and responsibility hungry. Job enrichment
satisfies the needs of the employees.
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2. Job enrichment has negative implications ie. Along with
usual work decision making work is also given to the
employees and not many may be comfortable with this.
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Human resource planning can be defined as the
process of identifying the number of people required by an
organization in terms of quantity and quality. All human
resource management activities start with human resource
planning. So we can say that human resource planning is
the principle/primary activity of human resource
management. The process of HRP involves various steps
they can be explained with the help of the following
diagram.
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Comparison
Differences
Yes No
Personal Personal
Surplus Shortage
(100=125) (100=75)
Layoff Overtime
Termination Recruitment/hiring
VRS Subcontracting
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requirement consists of number of people required as
well as qualification they must posses.
3. Comparison:-
Based on the information collected in the 1st and
2nd step, the HR department makes a comparison and
finds out the difference. Two possibilities arise from this
comparison
a. No difference :-
It is possible that personnel requirement =
personnel supplied. In this case there is no
difference. Hence no change is required.
4. Personnel surplus :-
When the supply of personnel is more than the
requirement, we have personnel surplus. We require 100
people, but have 125 people. That is we have a surplus
of 25 people. Since extra employees increase
expenditure of company the company must try to
remove excess staff by methods of
• Layoff
• Termination
• VRS/CRS
• Personnel shortage :-
When supply is less than the requirement, we
have personnel shortage. We require 100 people; we
have only 75 i.e. we are short of 25 people. In such
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case the HR department can adopt methods like Overtime,
Recruitment, Sub-contracting to obtain new employee
Advantages of
HRP/need/importance/role/benefits
3. Placement of personnel :-
Since the HRP process is conducted for the entire
organization, we can identify the requirements for each
and every department. Based on the requirement, we
can identify existing employees and place them on
those jobs which are vacant.
4. Performance appraisal :-
HRP make performance appraisal more
meaningful. Since feedback is provided in performance
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appraisal and employee is informed about his future
chances in same company, the employee is motivated
to work better. Information for all this is collected from HRP
process.
5. Promotion opportunity :-
HRP identifies vacancies in the entire organization
including all the branches of all the company.
Therefore when the company implements promotion policy
it can undertake its activities in a very smooth manner.
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HRP gives a clear out solution for excess staff i.e.
Termination, layoff, VRS,. However when certain
employees are removed from company it mostly
affects the psyche of the existing employee, and they
start feeling insecure, stressed out and do not believe
in the company. This is a limitation of HRP i.e. it does not
provide alternative solution like re-training so that
employee need not be removed from the company.
5. Expensive process :-
The solution provided by process of HRP incurs
expense. E.g. VRS, overtime, etc. company has to
spend a lot of money in carrying out the activity. Hence we
can say the process is expensive.
1. Employment :-
HRP is affected by the employment situation in
the country i.e. in countries where there is greater
unemployment; there may be more pressure on the
company, from government to appoint more people.
Similarly some company may force shortage of skilled
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labour and they may have to appoint people from
other countries.
3. Organizational changes :-
Changes take place within the organization from
time to time i.e. the company diversify into new products
or close down business in some areas etc. in such cases
the HRP process i.e. appointing or removing people will
change according to situation.
4. Demographic changes :-
Demographic changes refer to things referring to
age, population, composition of work force etc. A number of
people retire every year. A new batch of graduates with
specialization turns out every year. This can change the
appointment or the removal in the company.
6. Multicultural workforce :-
Workers from different countries travel to other
countries in search of job. When a company plans it’s
HRP it needs to take into account this factor also.
7. Pressure groups :-
Company has to keep in mind certain pleasure.
Groups like human rights activist, woman activist, media
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etc. as they are very capable for creating problems for
the company, when issues concerning these groups
arise, appointment or retrenchment becomes difficult.
Definition of VRS
VRS refers to voluntary retirement scheme, when
company faces the problem of surplus labour, they have to
remove the extra workers. This needs to be done to avoid
increase in cost. One of the methods used by the
companies is the methods used by companies is the VRS
scheme.
Under this scheme people have put in 20 or more number
of years of service are given an option to opt for early
retirement benefits and some other amount which is due to
them are paid when they leave the company.
Define recruitment :-
Recruitment is a process of searching for prospective
employees and stimulating them to apply for jobs.
Objectives of recruitment
Recruitment fulfills the following objectives
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Methods of recruitment/sources
Recruitment is a process of searching for prospective
employees and stimulating them to apply for jobs
Companies can adopt different methods of recruitment
for selecting people in the company. These methods are
• Internal sources
• External sources
1. Promotion :-
Companies can give promotion to existing
employees. This method of recruitment saves a lot of
time, money and efforts because the company does not
have to train the existing employee. Since the employee
has already worked with the company. He is familiar with
the working culture and working style. It is a method of
encouraging efficient workers.
2. Departmental exam :-
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This method is used by government departments
to select employees for higher level posts. The
advertisement is put up on the notice board of the
department. People who are interested must send
their application to the HR department and appear for the
exam. Successful candidates are given the higher level
job. The method ensures proper selection and impartiality.
3. Transfer :-
Many companies adopt transfer as a method of
recruitment. The idea is to select talented personnel from
other branches of the company and transfer them to
branches where there is shortage of people.
4. Retirement :-
Many companies call back personnel who have already
retired from the organization. This is a temporary
measure. The method is beneficial because it gives a sense
of pride to the retired when he is called back and helps
the organization to reduce recruitment selection and
training cost.
5. Internal advertisement :-
In this method vacancies in a particular branch
are advertised in the notice board. People who are
interested are asked to apply for the job. The method helps
in obtaining people who are ready to shift to another
branch of the same company and it is also beneficial to
people who want to shift to another branch.
6. Employee recommendation :-
In this method employees are asked to
recommend people for jobs. Since the employee is
aware of the working conditions inside the company he
will suggest people who can adjust to the situation. The
company is benefited because it will obtain.
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• This method is less expensive.
1. Management consultant :-
Management consultant helps the company by
providing them with managerial personnel, when the
company is on the look out for entry level management
trainees and middle level managers. They generally
approach management consultants.
2. Employment agencies :-
Companies may give a contract to employment
agencies that search, interview and obtain the required
number of people. The method can be used to obtain
lower level and middle level staff.
3. Campus recruitment :-
When companies are in search of fresh graduates
or new talent they opt for campus recruitment.
Companies approach colleges, management, technical
institutes, make a presentation about the company and
the job and invite applications. Interested candidates
who have applied are made to go through a series of
selection test and interview before final selection.
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4. News paper advertisement :-
This is one of the oldest and most popular
methods of recruitment. Advertisements for the job are
given in leading news papers; the details of the job and
salary are also mentioned. Candidates are given a
contact address where their applications must be sent
and are asked to send their applications within a specified
time limit. The method has maximum reach and most
preferred among all other methods of recruitment.
5. Internet advertisement :-
With increasing importance to internet,
companies and candidates have started using the
internet as medium of advertisement and search for jobs.
There are various job sites like naukri.com and
monster.com etc. candidates can also post their profiles
on these sites. This method is growing in popularity.
6. Walk in interview :-
Another method of recruitment which is gaining
importance is the walk in interview method. An
advertisement about the location and time of walk in
interview is given in the news paper. Candidates require
to directly appearing for the interview and have to bring
a copy of their C.V. with them. This method is very
popular among B.P.O and call centers.
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• The method is costly because it involves recruitment
cost, selection, training cost.
• The method is time consuming.
• The method reduces loyalty to the company.
Process of selection
Job analysis
Advertisement
Application blank/form
Written test
Interview
Medical examination
Acceptance/rejection letter
2. Advertisement :-
Based on the information collected in step 1, the
HR department prepares an advertisement and publishes
it in a leading news papers. The advertisement conveys
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details about the last date for application, the address to
which the application must be sent etc.
3. Application blank/form :-
Application blank is the application form to be
filled by the candidate when he applies for a job in the
company. The application blank collects information
consisting of 4 parts- 1) Personal details 2) Educational
details 3) Work experience 4) Family background.
4. Written test :-
The application which have been received are
screened by the HR department and those applications
which are incomplete are rejected. The other
candidates are called for the written test. Arrangement
for the written test is looked after the HR department i.e.
question papers, answer papers, examination centers and
hall tickets etc.
5. Interview :-
Candidates who have successfully cleared the test
are called for an interview. The entire responsibility for
conducting the interview lies with the HR department
i.e. they look after the panel of interviewers,
refreshments, informing candidates etc.
6. Medical examination :-
The candidates who have successfully cleared the
interview are asked to take a medical exam. This
medical exam may be conducted by the organization
itself (army). The organization may have a tie up with
the hospital or the candidate may be asked to get a
certificate from his family doctor.
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8. Acceptance/ rejection :-
Candidates who are happy with the offer send
their acceptance within a specified time limit to show
that they are ready to work with the company.
Mental ability/
Intelligence test
Medical aptitude
test
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Psycho motor test
Aptitude test :-
Aptitude tests are test which assess the potential
and ability of a candidate. It enables to find out whether
the candidate is suitable for the job. The job may be
managerial technical or clerical. The different types of
aptitude test are
I. Intelligence test :-
This test measures the numerical skills and
reasoning abilities of the candidates. Such abilities
become important in decision making. The test consists
of logical reasoning ability, data interpretation,
comprehension skills and basic language skills.
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In this test the emotional ability or the emotional
quotient is tested. This test judges the ability to work in
a group, inter personal skills, ability to understand and
handle conflicts and judge motivation levels. This test is
becoming very popular now days.
Induction = orientation
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i.e. using lecture method, power point presentation, group
discussion, psychological test, roll play secessions etc.
The induction program concludes with the employee
reporting for duty at his respective branch after induction.
When he reports for duty the senior most people in the
branch takes the new employee around the office and
introduces to all other employees and gives information
about the working of the branch. The senior people
regularly stay in touch with the new employee in the first
week so that he can make the new employee comfortable
and help him to adjust to the company. After this the
company may start a training program for the new
employee.
Define placement :-
Companies conduct recruitment and selection and
finally select employees. The employees undergo an
induction program. After the induction program is over the
employee is given a specific job in the company. This is
called placement.
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Objectives/purpose/goals of training and
development
3. Prevents obsolescence :-
Through training and development the employee
is up to date with new technology and the fear of being
thrown out of the job is reduced.
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6. Health and safety measures :-
Training and development program clearly
identifies and teaches employees about the different risk
involved in their job, the different problems that can
arise and how to prevent such problems. This helps to
improve the health and safety measures in the company.
2. Apprenticeship training :-
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In this method both theory and practical session
are conducted. The employee is paid a stipend until he
completes training. The theory sessions give theoretical
information about the plant layout, the different
machines, their parts and safety measures etc. The
practical sessions give practical training in handling the
equipment. The apprentice may or may not be
continued on the job after training.
3. Vestibule training :-
In this method of training an atmosphere which is
very similar to the real job atmosphere is created. The
surroundings, equipment, noise level will be similar to the
real situation. When an employee is trained under such
conditions he gets an idea about what the real job
situation will be like. Similarly when he actually starts
doing the job he will not feel out of place. This method is
used to train pilots and astronauts. In some places
graphics are also used to create the artificial
surroundings. This method involves heavy investment.
4. Job rotation :-
In this method the person is transferred from one
equipment to the other for a fixed amount of time until
he is comfortable with all the equipments. At the end of
the training the employee becomes comfortable with all
the equipment. He is then assigned a specific task.
5. Classroom method :-
In this method the training is given in the
classroom. Video, clippings, slides, charts, diagrams and
artificial modules etc are used to give training.
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Various methods are used to train personnel for managerial
level jobs in the company. These methods can be explained
with the help of following diagram.
Methods of training
Readings
In-basket training
1. Job rotation :-
This method enables the company to train
managerial personnel in departmental work. They are
taught everything about the department. Starting
from the lowest level job in the department to the
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highest level job. This helps when the person takes
over as a manager and is required to check whether his
juniors are doing the job properly or not. Every minute
detail is studied.
2. Planned progression :-
In this method juniors are assigned a certain job
of their senior in addition to their own job. The method
allows the employee to slowly learn the job of his senior
so that when he is promoted to his senior job it becomes
very easy for him to adjust to the new situation. It also
provides a chance to learn higher level jobs.
4. Under study :-
In this method of training a junior is deputed to
work under a senior. He takes orders from the senior,
observes the senior, attends meetings with him, learns
about decision making and handling of day to day
problems. The method is used when the senior is on the
verge of retirement and the job will be taken over by
the junior.
5. Junior board :-
In this method a group of junior level managers
are identified and they work together in a group called
junior board. They function just like the board of directors.
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They identify certain problem, they have to study the
problem and provide suggestions. This method improves
team work and decision making ability. It gives an idea
about the intensity of problem faced by the company.
Only promising and capable junior level managers are
selected for this method.
1. Classroom method :-
The classroom method is used when a group of
managers have to be trained in theoretical aspects.
The training involves using lectures, audio visuals, case
study, role play method, group discussions etc. The
method is interactive and provides very good results.
2. Simulation :-
Simulation involves creating atmosphere which is
very similar to the original work environment. The
method helps to train manager handling stress, taking
immediate decisions, handling pressure on the jobs etc.
An actual feel of the real job environment is given here.
3. Business games :-
This method involves providing a market situation
to the trainee manager and asking him to provide
solutions. If there are many people to be trained they
can be divided into groups and each group becomes a
separate team and play against each other.
4. Committee :-
A committee refers to a group of people who are officially
appointed to look into a problem and provide solution.
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Trainee managers are put in the committee to identify
how they study a problem and what they learn from it.
5. Conference :-
Conferences are conducted by various companies
to have elaborate discussions on specific topics. The
company which organizes the conference invites trainee
manager and calls for experts in different fields to give
presentation or lecture. The trainee manager can ask
their doubts to these experts and understand how
problems can be solved on the job.
6. Readings :-
This method involves encouraging the trainee
manager to increase his reading related to his subject
and then ask him to make a presentation on what he
has learned. Information can be collected by trainee
manager from books, magazines and internet etc.
7. In basket training :-
In this method the training is given to the
manager to handle files coming in and to finish his work
and take decisions within a specified time limit. The
trainee manager is taught how to prioritize his work, the
activities which are important for his job and how to take
decisions within limited time limit.
Process/procedure of training
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Preparing trainers
Presentation
Performance
Follow up
3. Preparing trainers :-
Once the employees have been divided into
groups, the HR department arranges for trainers.
Trainers can be in house trainers or specialized trainers
from outside. The trainers are given details by HR
department, like number of people in group, their age, their
level in organization, the result desired at the end of
training, the area of training, the number of days of
training, the training budget, facilities available etc.
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Based on the information provided by trainers, he
prepares entire training schedule i.e. number of days,
number of sessions each day, topics to be handled
each day, depth of which the subject should be covered,
the methodology for each session, the test to be given foe
each session, handout/printed material to be given in
each session.
5. Presentation :-
On the first day of training program the trainer
introduces himself and specifies the need and objective
of the program and then actually stars the program.
The performance of each employee is tracked by the
trained and necessary feedback is provided.
6. Performance :-
At the end of training program the participants
reports back to their office or branches. They prepare
report on the entire training program and what they
have learned. They the start using whatever they have
learned during their training. Their progress and
performance is constantly tracked and suitable incentives
are given if the participant is able to use whatever he has
learned in training.
7. Follow up :-
Based on the em0ployee performance, after
training, the HR department is able to identify what is
exactly wrong with training program and suitable
correction is made.
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• Has change occurred after training?
• Is the change due to training?
• Is the change positive or negative?
• Will the change continue with every training program?
1. Reaction :-
Reaction refers to attitude of employee about the
training, whether the employee considers training to be
+ve or –ve one. If reaction are +ve then people have
accepted the program and changes will be possible.
2. Learning :-
Another method of judging effectiveness is to
identify levels of learning i.e. how much the people have
learnt during the training. This can be found out by
trainers mark sheet, the report submitted by the
employee, and actual performance.
3. Behavior :-
The HR department needs to understand behavior
of the employees, to understand the effectiveness of
training. The behavioral change can be seen in how the
person interacts with juniors, peer groups and seniors.
They mark change in behavior and inform the HR
department of the success of training program.
4. Result :-
Results provided by employee in monetary terms
also determines effectiveness of training program i.e.
employee success in handling the project, the group
performance before and after training etc.
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• Employee development in career terms
• Overall efficiency in the company
2. Reduced supervision :-
When workers have been formally trained they
need not be supervised constantly. This reduces the work
load on the supervisor and allows him to concentrate on
other activities in the factory.
3. Reduction in wastage :-
The amount of material wasted by a trained
worker is negligible as compared to the amount of
material wasted by an untrained worker. Due to this the
company is able to reduce its cost its cost of production.
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6. Union management relations :-
When employees are trained and get better
career opportunities. The union starts having a possible
attitude about the management. They feel that the
management is genuinely interested in workers
development. This improves union management relations.
2. High rewards :-
Effective training programs result in improved
performance. When performance appraisal is done
excellent performance from the employee is rewarded by
giving him incentives and bonus.
3. Increased motivation :-
Employees who have been trained are generally
more confident as compared to others. Since their
efforts will be rewarded in future they are very much
interested in improving their performance. Therefore we
can say that their motivation levels are very high.
4. Group efforts :-
Training programs are not only technical
programs but are also conducted in areas like conflict
management, group dynamics (formal and informal
groups), behavioral skills, stress management etc. this
enables employees to put in group effort without facing
problems that groups normally face. In other words
training teaches people to work in a group.
5. Promotion :-
People who attend training programs learn from
them and improve themselves are generally
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considered for promotion. Thus training increases
chances of promotion.
Performance appraisal
Traditional method
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Traditional method of performance appraisal has been
used by companies for very long time. A common feature of
these methods is they are all relatively simple and involve
appraisal by one senior.
Y N
Does the employee have leadership qualities?
Y N
Is the employee capable of group efforts?
Y N
Has the employee shown analytical skills?
on the job
2. Confidential report :-
This method is very popular in government
departments to appraise IAS officers and other high
level officials. In this method the senior or the boss writes
a report about the junior giving him details about the
performance about the employee. The +ve and – ve traits,
responsibilities handled on the job and recommendations
for future incentives or promotions. The report is kept
highly confidential and access to the report is limited.
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is followed by an analysis of the person, his abilities and
talent, recommendations for the future incentives and
promotions.
4. Ranking method :-
In this method ranks are given to employees
based on their performance. There are different
methods of ranking employees.
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presented in the form of a chart. The chart contains
certain columns which indicate qualities which are
being appraised and other columns which specify the rank
to be given.
Eg. Employee A
Quality of Quantity of Intelligence
work work
Excellent
Very good
good
satisfactory
poor
6. Narrated essay :-
In this method the senior or the boss is supposed
to write a narrative essay describing the qualities of his
junior. He may describe the employees strength and
weakness, analytical abilities etc. the narrative essay ends
with a recommendation for future promotion or for future
incentives.
Modern methods
Modern methods of appraisal are being increasingly
used by companies. Now days one of the striving feature
that appraisal involves is, the opinion of many people about
the employee and in some cases psychological test are
used to analyze the ability of employee. These methods are
as follows
1. Role analysis :-
In this method of appraisal the person who is being
apprised is called the focal point and the members of his
group who are appraising him are called role set members.
These role set members identify key result areas (KRA 2
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marks) (areas where you want improvement are called
KRA) which have to be achieved by the employee. The KRA
and their improvement will determine the amount of
incentives and benefits which the employee will receive in
future. The appraisal depends upon what role set members
have to say about the employee.
2. Assessment centers :-
Assessment centers (AC) are places where the
employee’s are assessed on certain qualities talents and
skills which they possess. This method is used for selection
as well as for appraisal. The people who attend assessment
centers are given management games, psychological test,
puzzles, questioners about different management related
situations etc. based on their performance in these test an
games appraisal is done.
3. Management by objective :-
This method was given by Petter Druckard in 1974. It
was intended to be a method of group decision making. It
can be use for performance appraisal also. In this method
all members of the of the department starting from the
lowest level employee to the highest level employee
together discus, fix target goals to be achieved, plan for
achieving these goals and work together to achieve them.
The seniors in the department get an opportunity to
observe their junior- group efforts, communication skills,
knowledge levels, interest levels etc. based on this
appraisal is done.
5. Psychological testing :-
In this method clinically approved psychological test
are conducted to identify and appraise the employee. A
feedback is given to the employee and areas of
improvement are identified.
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6. Human resource audit/accounting :-
In this method the expenditure on the employee is
compared with the income received due to the efforts of
the employee. A comparison is made to find out the utility
of the employee to the organization. The appraisal informs
the employee about his contribution to the company and
what is expected in future.
7. 360* appraisal :-
In this method of appraisal and all round approach is
adopted. Feedback about the employee is taken from the
employee himself, his superiors, his juniors, his colleagues,
customers he deals with, financial institutions and other
people he deals with etc. Based on all these observations
an appraisal is made and feedback is given. This is one of
the most popular methods.
Measuring performance
Discussing result
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Collective action
3. Measuring performance :-
The performance of the employee is now measure by
the HR department, different methods can be used to
measure performance i.e. traditional and modern method.
The method used depends upon the company’s
convenience.
5. Discussing result :-
The results obtained by the employee after
performance appraisal are informed or conveyed to him by
the HR department. A feedback is given to the employee
asking him to change certain aspects of his performance
and improve them.
6. Collective action :-
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The employee is given a chance or opportunity to
improve himself in the areas specified by the HR
department. The HR department constantly receives or
keeps a check on the employee’s performance and notes
down improvements in performance.
1. Halo effect :-
In this case the superior appraises the person on
certain positive qualities only. The negative traits are not
considered. Such an appraisal will no give a true picture
about the employee. And in some cases employees who do
not deserve promotions may get it.
2. Horn effect :-
In this case only the negative qualities of the
employee are considered and based on this appraisal is
done. This again will not help the organization because
such appraisal may not present a true picture about the
employee.
3. Central tendency :-
In this case the superior gives an appraisal by giving
central values. This prevents a really talented employee
from getting promotions he deserves and some employees
who do not deserve any thing may get promotion.
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while those who may not deserve may get benefits due to
lenient boss.
Advantages/needs/importance/use/purpose of
performance appraisal
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It identifies the areas for improvement so that employee
can improve itself.
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traced back to Kautilya Artha Shastra where he
recommends that government must take active interest in
public and private enterprise. He says that government
must provide a proper procedure for regulating employee
and employee relation. In the medieval times there were
examples of kings like Allaudin Khilji who regulated the
market and charged fixed prices and provided fixed salaries
to their people. This was done to fight inflation and provide
a decent standard of living. During the pre independence
period of 1920 the trade union emerged. Many authors who
have given the history of HRM say that HRM started
because of trade union and the First World War.
8. Classroom method :-
The classroom method is used when a group of
managers have to be trained in theoretical aspects.
The training involves using lectures, audio visuals, case
study, role play method, group discussions etc. The
method is interactive and provides very good results.
9. Simulation :-
Simulation involves creating atmosphere which is
very similar to the original work environment. The
method helps to train manager handling stress, taking
immediate decisions, handling pressure on the jobs etc.
An actual feel of the real job environment is given here.
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This method involves providing a market situation
to the trainee manager and asking him to provide
solutions. If there are many people to be trained they
can be divided into groups and each group becomes a
separate team and play against each other.
11. Committee :-
A committee refers to a group of people who are officially
appointed to look into a problem and provide solution.
Trainee managers are put in the committee to identify
how they study a problem and what they learn from it.
12. Conference :-
Conferences are conducted by various companies
to have elaborate discussions on specific topics. The
company which organizes the conference invites trainee
manager and calls for experts in different fields to give
presentation or lecture. The trainee manager can ask
their doubts to these experts and understand how
problems can be solved on the job.
13. Readings :-
This method involves encouraging the trainee
manager to increase his reading related to his subject
and then ask him to make a presentation on what he
has learned. Information can be collected by trainee
manager from books, magazines and internet etc.
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Training is defined by Wayne Cascio as “training consists of
planed programs undertaken to improve employee
knowledge, skills, attitude, and social behavior so that the
performance of the organization improves considerably.”
Every company has a specific training procedure,
depending upon its requirements. A general training
procedure is explained below along with diagram
Process/procedure of training
Preparing trainers
Presentation
Performance
Follow up
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• Level in the organization
• The intensity of training etc.
•
12. Presentation :-
On the first day of training program the trainer
introduces himself and specifies the need and objective
of the program and then actually stars the program.
The performance of each employee is tracked by the
trained and necessary feedback is provided.
13. Performance :-
At the end of training program the participants
reports back to their office or branches. They prepare
report on the entire training program and what they
have learned. They the start using whatever they have
learned during their training. Their progress and
performance is constantly tracked and suitable incentives
are given if the participant is able to use whatever he has
learned in training.
14. Follow up :-
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Based on the em0ployee performance, after
training, the HR department is able to identify what is
exactly wrong with training program and suitable
correction is made.
6. Reaction :-
Reaction refers to attitude of employee about the
training, whether the employee considers training to be
+ve or –ve one. If reaction are +ve then people have
accepted the program and changes will be possible.
7. Learning :-
Another method of judging effectiveness is to
identify levels of learning i.e. how much the people have
learnt during the training. This can be found out by
trainers mark sheet, the report submitted by the
employee, and actual performance.
8. Behavior :-
The HR department needs to understand behavior
of the employees, to understand the effectiveness of
training. The behavioral change can be seen in how the
person interacts with juniors, peer groups and seniors.
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They mark change in behavior and inform the HR
department of the success of training program.
9. Result :-
Results provided by employee in monetary terms
also determines effectiveness of training program i.e.
employee success in handling the project, the group
performance before and after training etc.
8. Reduced supervision :-
When workers have been formally trained they
need not be supervised constantly. This reduces the work
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load on the supervisor and allows him to concentrate on
other activities in the factory.
9. Reduction in wastage :-
The amount of material wasted by a trained
worker is negligible as compared to the amount of
material wasted by an untrained worker. Due to this the
company is able to reduce its cost its cost of production.
7. High rewards :-
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Effective training programs result in improved
performance. When performance appraisal is done
excellent performance from the employee is rewarded by
giving him incentives and bonus.
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