HRM Final PDF

Study Material
For
M.B.A.
Based on Latest Syllabus of MBA prescribed By
Maharshi Dayanand University, Rohtak (DDE)
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CONTENTS
HUMAN RESOURCES MANAGEMENT
Syllabus....................................................................5 - 5
UNIT –I.....................................................................6 - 17
UNIT –II..................................................................18 - 38
UNIT –III.................................................................39 - 52
UNIT –IV.................................................................53 - 99
Past Year Question Paper....................................100 - 103
Worksheet..........................................................104 - 106
INDIAN BUSINESS ENVIRONMENT

Syllabus.............................................................107 - 107
UNIT –I................................................................108 - 120
UNIT –II..............................................................121 - 135
UNIT –III.............................................................136 - 149
UNIT –IV.............................................................150 - 166
Past Year Question Paper.....................................167 - 171
Worksheet..........................................................172 - 174
PRODUCTION & OPERATIONS MANAGEMENT

Syllabus.............................................................175 - 175
UNIT –I................................................................176 - 190
UNIT –II..............................................................191 - 202
UNIT –III.............................................................203 - 216
UNIT –IV.............................................................217 - 238
Past Year Question Paper.....................................239 - 244
Worksheet..........................................................245 - 248
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SYLLABUS
HUMAN RESOURCE MANAGEMENT
MBA–2nd SEMESTER, M.D.U., ROHTAK
External Marks : 70 Internal Marks : 30
Time : 3 hrs.
UNIT-I
Concepts & Perspectives of HRM : HRM in changing environment, HRM
functions, Role of HR Practitioners; HR Policies, Corporate objectives
and Human Resource Planning.
UNIT-II
Job Analysis, Role Analysis, Methods of Manpower Search, Attracting
and selecting HR; Induction and socialisation, Manpower training &
development; Career and succession Planning, Managing
Organisational Renewal.
UNIT-III
Compensation-Aims & components, Factors determining pay rates;
Establishing pay rates, Job Evaluation; Pay for performance; Employee
benefits & services; Performance appraisal, 360 degree feed back,
Potential appraisal.
UNIT-IV
Industrial Relations; Industrial disputes and dispute resolution; Trade
Unions; Employee grievances and Discipline; Participation and
Employee empowerment.
NOTE : The question paper will be set by the external examiners. The
external examiner will set 8 questions in all, selecting not more than two
questions form each unit. If a case study in included in the question
paper then it will carry marks equivalent to two questions. The
candidates will be requited to attempt five questions in all, selecting
atleast one question from each unit. However, in question paper (s)
where any deviation is required, special instructions will be issued by
the Chairman.PG Board of Studies in Mangement.
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MBA 2nd Semester (DDE)
UNIT – I
Q. What is Human resource management? Explain its features &
approaches. Also explain scope & objectives of HRM?
Ans. Human Resource Management (HRM) is the function within an
organization that focuses on recruitment of, management of, and providing
direction for the people who work in the organization. Human Resource
Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with
issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.
Approaches :–
HRM is really personnel management :– Human resource management is a
modernized form of ‘personnel’, repackaged to enhance the status of personnel
managers. HRM is based on integrated and coherent recruitment, assessment
and development programmes.
HRM is a strategic model :– It employs the techniques of strategic
management for the utilization of human resources. It focuses on senior
manager concern with achieving objectives and containing costs. HRM aims for
a seamless link between business policy and recruitment, performance
assessment, reward management, development and dismissal. HRM is a
mechanism for control and the exercise of power by top management.
HRM is people management :– It covers all aspects of managing employees in
its widest sense and emphasises the role of line managers in overseeing their
own staff.
HRM is very important to us for the following reasons :–
1. Development and Growth of the organisation :– By improving the
individual capabilities, acquiring necessary cooperation and developing
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teamwork. HRM makes sure that the organization develops and grows
well. Goals of the organization are met by HRM by effective motivation and
excellent utilization of employees.
2. Creation of healthy culture in the Organization :– HRM creates and
maintains excellent culture in the organization and it makes people
develop and grow.
3. Maintenance of Human Resources :– The development, care of Human
Resources is done by the HRM.
4. The concept of Human beings is a very crucial and vital factor of
production , HRM is gaining more and more importance day by day. It also
has important implication in societal development also. IT IS THE HEART
AND SOUL OF MODERN MANAGEMENT.
Core values of HRM :–
1. Human beings are the crucial aspects of every organization. The greater is
the commitment of the human resources the more successful is the
organization.
2. An individual is a whole person. He brings all aspects of his personality,
attitudes, traits and behavior to the work place.
3. All people represent the organization. The building, equipment and other
resources productive only because they are being handled by the hyper
energic force of humans.
4. People are different from each other. They vary in abilities, nature,
personality; religion etc. People are also influenced by social economic and
environmental factors.
5. Human resources have to be acquired, developed and motivated to give
higher performances and also must be retained.
6. The success of an organization depends upon the satisfaction of
organizational needs and employees needs. There are various levels of
hierarchical levels in an organisation. The people who manage (i.e., the
managers), and people who are at work (subordinates). The effective
coordination and commitment between managers and subordinates is
essential for organizational success. Apart from that healthy relation
ships are to be maintained with consumers, shareholders, entrepreneurs,
governments and suppliers.
7. Human relations enable people to work effectively in an organization with
other people in organization.
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Features of HRM :–
Human resource management is concerned with most effective use of people to
achieve organizational & individual goals. It has the following features :–
(i) Pervasive force :– HRM is pervasive in nature as it is present in every
enterprises & at all level of management in an organization.
(ii) Action oriented :– HRM focuses attention on action rather then record
keeping, written procedures or any rules.
(iii) Individually oriented :– It helps employees develop their potential fully &
encourages them to give output their best to the organization & motivates
them through systematic process.
(iv) People oriented :– HRM in all about people at work both as group &
individuals. It tries to put people an assigned job in order to produce good
result.
(v) Development oriented :– HRM intends to develop full potential of
employees. The reward structure is turned if turned to need of employees,
Training to sharpen & improve their skills, rotation on various job to gain
experience
(vi) Integrating mechanism :– HRM tries to build & maintain relations
between people working at various level in the organization & integrate
human assets in best possible manner.
(vii) Comprehensive function :– HRM is to some extent concerned with any
organizational decision which has an impact on the workforce of
organization at all levels.
(vii) Inter disciplinary function :– HRM is a multi disciplinary activity
utilizing knowledge & inputs drawn from psychology, sociology
anthropology, economics etc
(ix) Continuous function :– HRM is not one shot deal. It cannot be practiced
one hour a day or one day a week. It requires constant alertness &
awareness of Human Relations & their importance in all operations.
(x) Auxiliary service :– HRM deptt. Exist to assist & advise the line or the
operating managers to do their personal work more effectively.
Scope of HRM :– The scope of HRM is very wide.
1. Personal aspect :– This is concerned with manpower planning
recruitment, selection, placement, transfer, promotion training &
development, retrenchment, incentive & productivity etc.
2. Welfare Aspect :– It deals with working conditions such as canteens,
lunch room, restroom, crèches, housing, transport , medical assistance,
education, safety about health & recreation facilities.
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3. Industrial relation aspect :– This covers union management relation

joint consultation, collective bargaining, grievance and disciplinary
procedures settlement of disputes etc.
Objectives of Human Resource Management :– The primary objective of
HRM is to ensure the availability of competent and willing workforce to an
organization. Specifically HRM has four fold- Social, organization, functional &
personnel.
1. Social objectives :– To be ethically & socially responsible to the needs &
challenges of the society while minimizing the negative impact of such
demands upon the organization.
2. Organizational Objectives :– To recognize the role of HRM bringing about
organizational effectiveness. The HRM deptt. Exists to serve the rest of
organization.
3. Functional objectives :– To maintain the deptt’s contribution at a level
appropriate to the organization needs.
4. Personnel objectives :– To assist employees in achieving their personnal
goals as these goals enhance individual’s contribution to the
organization.
Importance of HRM :– HRM plays an important role. It helps an organization
in many ways.
1. Enterprise level :– Good human resource practice can help in attracting
& retaining best people in the organization.
2. It is needed in short, medium & long run.
a. At individual level-Effective management of human resource
promote teamwork & team spirit among employees.
b. It offers excellent growth opportunities to the people who have the
potential to rise.
c. It inspires people to work with diligence & commitment.
3. At society level :–
a. Society as a whole is major beneficence of good human resource
practice.
b. Employment opportunities multiply.
c. Scarce talent is put to best use.
Human Resource Areas :–
1. Quality of Work life :– It is multifaceted concept. The premise of quality is
work life is having work environment where an employees activities
become more important. It means implementing procedures or policies
that make the work less routine and more rewarding for employee. These
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procedures or policies include autonomy, reorganization, belonging,
progress & development and some external reward. Autonomy deals with
amount of freedom that employee can work in their job. Reorganization
involves being valued by others in company. Belonging refers to internal
rewards available from the company’s challenge & accomplishment.
External reward means reward in form of salary benefits & also include
promotion, rank & status. These components provide quality of work life
for individual. If quality of work life is lacking then worker’s productivity
may suffer.
2. Productivity :– Productivity is the quantity or volume of the major
product or services that an organization provides. Many components
constitute the productivity factor-:
a. Capital investment includes having the best possible machinery
available that will help improve the efficiency of workers.
b. Innovation :– is a process where by new ideas & creative ideas are
welcomed, studied for the feasibility & implemented, if found
feasible.
c. Learning looks at training issues :– Not only we want individual to
work efficiently but also effectively. Finnaly productivity is contigent
on an employee’s motivation. Productivity improvement can be
achieved through proper equipement, training, new ideas &
increased motivation.
3. Readiness for change :– Change is a fact of life everywhere.At work we
must be aware that changes will occur .The changes might be suitable
such as getting a new Boss or organization installing a new work system.
But fear must not be associated with changes & to reduced their fear,
training is important about getting ready for change. Employers must
make changes to remain competitive, innovative & responsible.
Q. What activities does HRM do? Explain.
Ans. Human resources management is responsible for the following :–
1. Promotion of organisational needs :– This is a very crucial function of
HRM. The organization needs people human assets. People appreciate day
by day with experience and are extremely valuable assets in an
organization.
2. Development of employees :– He does bring his abilities, attitudes,
personality, and behaviour with himself. An individual aims for
development and personal growth in the work sphere.
3. Relationship maintenance function :– HRM functions include
maintenance of effective interpersonal relations. In this context the
functions of legal compliance, maintenance and Industrial relations are
done by HRM.
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4. Empowerment :– It is the provision of greater freedom and discretion to
employees. When employees are given freedom they work effectively as a
team and strive(struggle) for the development and growth of the
organization. The function of empowerment leads to the prosperity of the
organization.
5. HRMs crucial function also includes Good and effective communication of
policies. Communication when streamlined effectively leads to excellent
network building and growth.
6. Equality :– Employees need to be treated with fairness and equality. HRM
function of equal policies and justice make sure that the employees are
protected fully. Equality leads to well trained and well-motivated
employees.
7. Functions relating to job :– Job is the duty which one is expected to do.
An employee works well when the job matches with his expectations,
abilities and talents. Job Satisfaction is vital for all.
HRM Function :–
(i) Organizational, work, and job design
(ii) Planning
(iii) Recruitment and selection
(iv) Training and development
(v) Performance management
(vi) Compensation
(vii) Occupational health and safety
(viii) Employee and labour relations
Recruitment and Selection :–

Recruitment is the process of generating of applications or attracting
applicants for specific positions through four common sources, viz.
Advertisement, state employment exchange agencies , present employees and
campus recruitment.
Having identified the potential applicants the next step is to evaluate their
experience and qualification for ascertaining their suitability for a job and
make selection. Selection refers to the process of offering job to one or more
applicants from the applications. Selection is thus a means of selecting the
”best-fit” for a job by using multiple hurdles such as screening, short listing
based on marks, tests, interviewing, and an equal opportunity dispenser.
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Performance & Potential Appraisal :–
Performance appraisal also called “merit rating” or “employee rating is a
means of helping supervisors to evaluate the work of employees. It is the name
given to the regular formalised and recorded review of the way in which an
individual performs in his or her job. This is normally carried out by the job
holder’s immediate boss.
1. It helps employee in self-appraisal
2. It Reviews his performance in relation to the objectives and other
behaviors.
3. It Checks reviews done by the superiors.
4. It sends summary information for central storage and use.
5. It analyses the difficulties of the employees and works to remove
them. It helps employees to face challenges and accept
responsibilities. It plans Potential.
Counselling :–
“Counselling is helping the employee to recognise his own strengths,
weaknesses and potential and helping him to prepare action plans for own
development.” Giving feedback in “threatening way” or correcting the
undesirable or unsatisfactory behaviour of employees by pointing it out the
deficiencies or other malfunctioning and warning them not to repeat these
behaviour are all integral parts of a manager’s role and are not the same as
counselling.
1. They give critical and supporting feedback.
2. They discuss with the employee the difference between his self rating
and the rating by the immediate superior.
3. They discuss the steps the employee can take for improvement.
4. They provide support
Career Planning :– Career planning involves identifying the right potential well
in time, for development to take over higher responsibilities. This includes
promotion and planned job rotation under various conditions and
environments of challenge. In this process, attention is focused on individual’s
style of working than his current performance results. Current results can
provide reasonable clues of future potential, but they are not the sole criterion;
current results only, could be misleading in judging one’s potential.
Succession Planning :– Succession planning entails in identifying the key jobs
in an organisation and ensuring that , if anything, planned or unplanned were
to remove the present job holder from his post, there would be some one ready
to take the place. This benefits the company by ensuring that there are no
expensive gaps, or panic measures to fill them. It benefits the individual by
providing him with opportunities for advancement. Three broad steps are
required in this context (I) to decide which are the key jobs in the organisation;
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(ii) to identify the potential incumbent who can fit the position; & (iii) to make
necessary records in the organisation chart. Therefore, a succession plan to
indicate who can succeed whom in the hierarchy.
Training :– The purpose of training is to improve the capabilities of the human
resources in order to increase their efficiency and effectiveness on the job.
Training is expected to indicate positive changes in knowledge, skill and
attitudes. Training is job oriented and fulfills the current needs of an individual
to overcome job difficulties.
Job Evaluation :– Job evaluation is concerned with establishing the relative
worth of a job compared to other jobs within an organisation. In job evaluation
one attempts to consider and measure the inputs required of employees (know-
how, accountability and problem solving etc.) for minimum job performance
and to translate such measures into specific monetary returns.
Transfer, Promotion & demotion!!!
Transfer is a lateral movement within the same grade, from one job to another.
A transfer may result in changes in duties and responsibilities, supervisory
and working conditions, but not necessarily salary.
Promotion is the advancement of an employee from one job level to a higher
one, with increase in salary.
Demotion is the opposite of promotion. It is a downward movement from one
job level to another, leading to a reduction in rank, status, pay and
responsibility.
Job Analysis :– Job analysis is the process of studying and collecting
department information relating to operations and responsibilities of a specific
job. The immediate products of this analysis are job description and job
specification. Job description is an organised factual statement of duties and
responsibilities of a specific job, whereas, job specification is a statement of the
minimum acceptable qualities necessary to perform a job properly.
Role Analysis :– Role analysis is the process of defining a role in the context of
its work system., in terms of expectation of important persons, detailing
specific tasks under each function, and elaborating the process, standards and
critical attributes namely knowledge, attitude, skill, habits required for
effective role. Role is a position or an office a person occupies as defined by
expectations from significant persons in the organisation, including the person
himself. Position is the collection of tasks and responsibilities performed by one
person. Communication Policies.
HR Department stresses a lot on Communication aspects to be developed.
Communication policies do pave way for effective ness and efficiency.
Rewards :– Rewards are the positive reinforcements given by the organization .
Rewards act as effective motivators and help people to increase productivity
and efficiency. Rewards include:
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1. Promotion
2. Salary Review
3. Salary Administration
Importance of HRM functions :–
To hire the wrong person for the job
To experience high turnover
To find our people not doing their best
To waste time with countless and useless interviews
To have our company sued for our discriminatory actions.
To be quoted under bad example of unsafe practices
To have some of your employees think their salaries are unfair and
inequitable relative to others in the organization
To allow a lack of training to undetermine your department’s effectiveness
To commit any unfair labor practices
Role HR Practitioners :– The HR managers have keen role in the effective
planning and implementation of the policies and decisions that in tune with the
business changes. They should act as strategic partners and be proactive in
their role. The HR managers should understand how far their decisions
contribute to business surplus incorporating human competency and
performance to the organisation. Strategic HR managers need a change in their
outlook from seeing themselves as relationship managers to strategic resource
managers. The major HRM innovations occur when senior management takes
the lead and adoption of innovative SHRM practices is dependent on the nature
of relationship of the HR Department with the CEO and the line managers. the
actions of the personnel practitioner in the innovation process suggests that
adoption of an innovation by an organization depends largely on HR
practitioners’ credibility with information and resource providers. HR
Department and HR managers in these innovative organizations play a
strategic role linking the HR strategy with the business strategy of the
organization. A crucial aspect concerning SHRM is the concepts of fit and
flexibility. The degree of fit determines the human resource system’s
integration with organization strategy. It is the role of HR Managers to ensure
this fit in between Human Resource System with the Organization Strategy.
Q. What is Human Resource Planning? Explain briefly all concepts
related to it.
Ans. Human resource planning is the process of anticipating and carrying out
the movement of people into, within, and out of the organization. Human
resources planning is done to achieve the optimum use of human resources
and to have the correct number and types of employees needed to meet
organizational goals.
Thus, it is a double-edged weapon. If used properly, it leads not only to proper
utilization, but also reduces excessive labor turnover and high absenteeism,
and improves productivity.
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It can also be defined as the task of assessing and anticipating the skill,
knowledge and labor time requirements of the organization, and initiating
action to fulfill or ‘source” those requirements. Thus, if the organization as a
whole or one of its subsystem is not performing to the benchmark, in other
words, it is declining, it may need to plan a reduction in its existing labor force.
The process by which management ensures that it has the right personnel, who
are capable of completing those tasks that help the organization reach its
objectives.
The features of HRP
(i) Forecasting future manpower requirements, where we use mathematical
projections you might have studied in ‘business economics’ and
‘quantitative techniques’ paper, to project trends in the economic
environment and development of the industry.
(ii) Making an inventory of present manpower resources and assessing the
extent to which these resources are employed optimally. Procuring
competent personnel requires positive recruitment efforts and the
development of a variety of recruitment sources. These sources must
consider not only the nature and conditions of the external labor market,
but also the presence of qualified personnel who are available to fill
vacancies through internal promotions or transfers.
(iii) Anticipating manpower problems by projecting present resources into the
future and comparing them with the forecast of requirements to determine
their adequacy, both quantitatively and qualitatively; and
(iv) Planning the necessary programmes of requirement, selection, training,
development, utilization, transfer, promotion, motivation and
compensation to ensure that future manpower requirements are properly
met.
The salient features of HRP :–
1. It’s a systematic approach. It ensures a continuous and proper staffing. It
avoids or checks on occupational imbalances (shortage or surplus)
occurring in any of the department of the organization.
2. There is a visible continuity in the process
3. There is a certain degree of flexibility. That is, it is subject to modifications
according to needs of the organization or the changing circumstances.
Manpower plans can be done at micro or the macro levels depending upon
various environmental factors.
Uses of HRP :–
1. Match Human resources related activities and future organization and
future organization objectives efficiently.
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2. Achieve economic in hiring new workers.
3. Expand the human resource management information base to assist
other human resources activities and other organizational units.
4. Make major demands on local labour markets successfully.
5. Co-ordination different human resources management programs such as
employment equity plans and hiring needs.
Barriers to HRP :– Planners face significant barriers while formulating an
HRP. The major ones are the following:
1. People question the importance of making HR practices future oriented
and the role assigned to HR practitioners in formulation of organizational
strategies. Their argument is simple-there are people when needed. Offer
attractive package of benefits to them to quit when you find them in
surplus.
2. HR practitioners are perceived as experts in handling personnel matter,
but are not experts in managing business. The personnel plan conceived
and formulated by the HR practitioners when enmeshed with
organizational plan, might make the overall strategic plan itself defective.
3. HR information often is incompatible with the information used in
strategy formulation. Strategic planning efforts have long been oriented
towards financial forecasting often to the exclusion of other types of
information.
4. Conflicting may exist between short-term and long-term HR needs. For
example, there arises a conflict between the pressure to get work done on
time and long-term needs, such as preparing people for assuming greater
responsibilities. Many managers are of the belief that HR needs can be met
immediately because skills are available on the market as long as wages
and salaries are competitive. These managers fail to recognize that by
resorting to hiring or promoting depending on short-term needs alone,
long-term issues are neglected.
5. There is conflict between quantitative and qualitative approach to HRP.
Some people view HRP as a number game designed to track the flow of
people across the departments. These people a strictly quantitative
approach to planning. Others take a qualitative approach and focus on
individual employee concerns such as promotabilty and career
development. Best results would accrue if there is a balance between the
quantitative and qualitative approaches.
6. Non-involvement of operating managers renders HRP ineffective. HRP is
not strictly and HR department function. Successful planning needs a co-
ordinated effort on the part of operating managers and HR personnel.
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FIGURE HR Planning Process
Organizational
Objectives and
Strategies
Scan External
Analyze Internal
Environmentfor
Inventory of
ChangesAffecting
HR Capabilities
Labor Suppy
Forecasting
Organizational Survey of
Need for People
People Available
HR Strategies
and Plans
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UNIT – II
Q. What is Job Analysis? How we analyse any job?What information
we can geathered from Job Analysis?Explain its scope. What are
methods of collecting Job Analysis data?
Ans. A defined data collection and analysis procedure through which
information about job tasks and job requirements are obtained.
Job analysis is the procedure for determining the duties and skill requirements
of a job and the kind of person who should be hired for it.
Organizations consist of positions that have to be staffed. Job analysis is the
procedure through which you determine the duties of these positions and the
characteristics of the people who should be hired for them .The analysis
produces information on job requirements, which is then used for developing
job descriptions (what the job entails) and job specifications (what kind of
people to hire for the job).
To analyse any job there are 6 steps :–
1. Identify how information will be used
2. Review background information
3. Select representative positions to analyse
4. Collect data to analyse job
5. Review information with incumbents
6. Develop Job Description / Job Specification
Step 1 :– Identify the use to which the information will be put, since this will
determine the types of data you collect and how you collect them. Some data
collection techniques like interviewing the employee and asking what the job
entails and what his responsibilities are good for writing job descriptions and
selecting employees for the job.
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Step 2 :– Review relevant background information such as organization charts,

process charts, and job descriptions. Organization charts show how the job in
question relates to other jobs and where it fits in the overall organization. The
chart should identify the title of each position and, by means of its
interconnecting lines, show who reports to whom and with whom the job
incumbent is expected to communicate.
Step 3 :– Select representative positions to be analyzed. This is done when
many similar jobs are to be analyzed and it is too time-consuming to analyze,
say, the jobs of all assembly workers.
Step 4 :– Next actually analyze the job by collecting data on job activities,
required employee behaviors, working conditions, and human traits and
abilities needed to perform the job.
Step 5 :– Review the information with job incumbents. The job analysis
information should be verified with the worker performing the job and with his
or her immediate supervisor. This will help to confirm that the information is
factually correct and complete. This “review” step can also help gain the
employee’s acceptance of the job analysis data and conclusions by giving that
person a chance to review and modify your description of his or her job
activities.
Step 6 :– Develop a job description and job specification. A job description and
a job specification are usually two concrete products of the job analysis. The job
description is a, written statement that describes the activities and
responsibilities of the job, as well as important features of the job such as
working conditions and safety hazards. The job specification summarizes the
personal qualities, skills, and background required for getting the job done; it
may be either a separate document or on the same document as the job
description.
Job analysis is a systematic procedure for studying jobs to determine their
various elements and requirements. The job analysis for a particular position
typically consists of two parts-:
A job description is a list of the elements that make up a particular job.
A job specification is a list of the qualifications required to perform
particular job.
Job Description Vs. Job Specification :–
Job Description :– written narrative describing activities performed on a job;
includes information about equipment used and working conditions under
which job is performed.
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Job Specification :– outlines specific skills, knowledge, abilities, physical and
personal characteristics necessary to perform a job.
Job Analysis helps to find information about the following :–
1. Work activities :– Information is usually collected on the actual work
activities performed, such as cleaning, selling, teaching, or painting. Such
a list may also indicate how, why, and when the worker performs each
activity.
2. Human behaviors :– Information on human behaviors like sensing,
communicating, decision-making, and writing may also be collected.
Included here would be information regarding human job demands such
as lifting weights, walking long distances, and so on.
Machines, tools, equipment, and work aids used. Included here would be
information regarding products made, materials processed, knowledge
dealt with or applied (such as finance or law), and services rendered (such
as counseling or repairing)
3. Performance standards :– Information is also collected regarding
performance standards (in terms of quantity, quality, or speed for each job
duty, for instance) by which an employee in this job will be evaluated.
4. Job context :– Included here is information about such matters as
physical working conditions, work schedule, and the organizational and
social context-for instance, in terms of the number of people with whom
the employee would normally have to interact. Also included here might be
information regarding incentives for doing the job.
5. Human requirements :– Finally, information is usually compiled
regarding human requirements of the job, such as job-related knowledge
or skills (education, training, work experience) and required personal
attributes (aptitudes, physical characteristics, personality, interests).
Types of Information Gathered :–
Work Activities
Ø Work activities performed
Ø How, why, when activity is performed
Human Behaviours
Ø Communicating, decision making, and
Ø Other physical job demands, e.g., lifting
Tools, equipment, etc used
Ø Products made
Ø Knowledge dealt with / applied
Ø Services rendered
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Performance standards
Ø Quantity, quality, speed
Ø Used to evaluate employee performance
Scope of Job Analysis :–
Recruitment and Selection :– Job analysis provides information about what
the job entails and what human characteristics are required to carry out these
activities. Such job description and job specification information is used to
decide what sort of people to recruit and hire.
Compensation :– Job analysis information is also essential for estimating the
value of and appropriate compensation for each job. This is so because
compensation. (such as salary and bonus) usually depends on the job’s
required skill and education level, safety hazards, degree of responsibility and
so on-all factors that are assessed through job analysis. Job analysis provides
the information determining the relative worth of each job so that each job can
be classified.
Training :– Job analysis information is also used for designing training and
development programs because the analysis and resulting job description
show the skills-and therefore training-that are required.
Performance Appraisal :– A performance appraisal compares each employee’s
actual performance with his or her performance standards. It is often through
job analysis that experts determine the standards to be achieved and the
specific activities to be performed.
JOB ANALYSIS = Process of defining jobs in terms of tasks, behaviors and
personal requirements.
Methods of Collecting Job Analysis Data
1. Job performance :– In this method the job analyst actually performs the
job in question. The analyst, thus, receives first hand experience of
contextual factors on the job including physical hazards, social demands,
emotional pressures and mental requirements. This method is useful for
jobs that can be easily learned. It is not suitable for jobs that are
hazardous (e.g., fire fighters) or for jobs that require extensive training
(e.g., doctors, pharmacists).
2. Personal observation :– The analyst observes the worker(s) doing the job.
The tasks performed, the pace at which activities are done, the working
conditions, etc., are observed during a complete work cycle. During
observation, certain precautions should be taken
a. The analyst must observe average workers during average
conditions.
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b. The analyst should observe without getting directly involved in the
job.
c. The analyst must make note of the specific job needs and not the
behaviours specific to particular workers.
3. Critical incidents :– The critical incident technique (CIT) is a qualitative
approach to job analysis used to obtain specific, behaviorally focused
descriptions of work or other activities. Here the job holders are asked to
describe several incidents based on their past experience. The incidents so
collected are analysed and classified according to the job areas they
describe. The job requirements will become clear once the analyst draws
the line between effective and ineffective behaviours of workers on the job.
4. Interview :– The interview method consists of asking questions to both
incumbents and supervisors in either an individual or a group setting. The
reason behind the use of this method is that jobholders are most familiar
with the job and can supplement the information obtained through
observation. Workers know the specific duties of the job and supervisors
are aware of the job’s relationship to the rest of the organisation.
5. Questionnaire method :– The questionnaire is a widely used method of
analysing jobs and work. Here the jobholders are given a properly
designed questionnaire aimed at eliciting relevant job-related
information. After completion, the questionnaires are handed over to
supervisors. The supervisors can seek further clarifications on various
items by talking to the jobholders directly. After everything is finalised, the
data is given to the job analyst.
Important Terms :–
Task :– meaningful, discrete, unit of work activity generally performed on job
by one worker within some limited time period; represents composite of
methods, procedures, and techniques
Duty :– area of work that includes several distinct tasks - e.g., preparing
operating room for surgery, monitoring patient
Position - set of tasks and duties performed by single individual, Chief surgical
nurse
Job :– group of positions that is identical with respect to their major significant
tasks; sufficiently alike to be covered by single analysis - surgical nurse
Occupation :– general class of jobs - nurses
Career :– sequence of jobs held by individual throughout lifetime
Q. What are the sources of manpower searching? Explain each of them
with there merits & demerits.
Ans. Recruitment :– It is a process of finding and attracting capable applicants
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for employment. The process begins when new recruits are sought and it ends
when their proper applicants are submitted. The result is pool of applicants
from which new employees are selected. Then process extends to screening of
applicants. In simple terms recruitment is understood as the process of
searching for manpower and obtaining applicants for jobs from among whom
right manpower can be selected.
Recruitment & Selection are required for manpower searching. Specifically
these require-:
1. Doing employment planning and forecasting to determine the duties of the
positions to be filled.
2. Building a pool of candidates for these jobs by recruiting internal or
external Candidates.
3. Having the applicants fill out application forms and perhaps undergo an
initial screening interview.
4. Utilizing various selection techniques such as tests, background
investigations, and physical exams to identify viable job candidates.
5. Sending to the supervisor responsible for the job one or more viable job
candidates.
6. Having the candidate go through one or more selection interviews with the
supervisor and other relevant parties for the purpose of finally
determining to which candidate an offer should be made.
Selection of a particular source of manpower supply depends on several factors
enumerated below :–
External Sources :–
We must understand that the first problem is to identify outside sources.
Normally, following external sources are utilized for different positions :–
1. Advertisement :– Advertisement is the most effective means to search
potential employees from outside the organisation. Employment
advertisement in journals, newspapers, bulletins, etc., is quite common in
our country.
2. Employment Agencies :– Many organisations get the information about
the prospective candidates through employment agencies. In our country,
two types of employment agencies are operating: public employment
agencies and private employment agencies. Though both of these perform
activities regarding employment suggestions to their clients, often they
differ considerably
a. Public Employment Agencies :– There are employment exchanges
run by the government almost in all districts. The employment
seekers get themselves registered with these exchanges. Normally,
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such exchanges provide candidates for lower positions like semi-
skilled and skilled workers, and lower-level operatives like clerks,
junior supervisors, etc.
b. Private Employment Agencies :– There are many consultancy and
employment agencies like ABC Consultants, A.F. Ferguson and
Company, Personnel and Productivity Services, S.B. Billimoria and
Company, etc., which provide employment services particularly for
selecting higher level and middle level executives. These agencies
also undertake total functions of recruiting and selecting personnel
on behalf of various organisations. They charge fees for this purpose.
3. On Campus Recruitment :– Many organisations conduct preliminary
search of prospective employees by conducting interviews at the
campuses of various institutes, universities, and colleges. This source is
quite useful for selecting people to the posts of management trainees,
technical supervisor, scientist, and technicians
4. Deputation :– Many organisations take people on deputation from other
organisations. Such people are given choice either to return to their
original organisation after a certain time or to opt for the present
organisation. At the initial development of public sector organisations,
this source was quite common for filling managerial vacancies in these
organisations. People from civil and defense services were put on
deputation in these organisations. Organisations promoted by various
industrial groups also use this source to fill up higher managerial
positions. People working in one organisation are deputed in another
belonging to the same industrial house.
5. Employee Recommendations :– Employee recommendations can be
considered to employ personnel particularly at the lower levels. The idea
behind employee recommendations as a source of potential applicants is
that the present employees may have specific knowledge of the individuals
who may be their friends, relatives, or acquaintances. If the present
employees are reasonably satisfied with their jobs, they communicate
these feelings to many persons in their communities.
6. Labour Unions :– In many organisations, labour unions are used as
source of manpower supply, though at the lower levels. Many such union
leaders whose styles are cooperative and constructive can be promoted to
supervisory level.
7. Gate Hiring :– The concept of gate hiring is to select people who approach
on their own for employment in the organisation. This happens mostly in
the case of unskilled and semi-skilled workers.
Internal Sources :–
1. Promotions and Transfers :– This is a method of filling vacancies from
within through transfers and promotions.
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A transfer is a lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working
conditions, etc., but not necessarily salary. Promotion, on the other hand,
involves movement of employee from a lower level position to a higher-level
position accompanied by (usually) changes in duties, responsibilities,
status and value.
2. Job Posting :– Job posting is another way of hiring people from within. In
this method, the organization publicizes job openings on bulletin boards,
electronic media and similar outlets. One of the important advantages of
this method is that it offers a chance to highly qualified applicants working
within the company to look for growth opportunities within the company
without looking for greener pastures outside.
3. Employee Referrals :– Employee referral means using personal contacts
to locate job opportunities. It is a recommendation from a current
employee regarding a job applicant.
Merits & Demerits :–
A. Internal Sources :– Persons who are already working in an organization
constitute the ‘internal sources’ are retrenched employees, retired
employees, dependents of deceased employees may also constitute the
internal sources. Whenever any vacancy arises, someone from within the
organisation is upgraded, transferred, promoted or even demoted.
Merits :–
1. Economical :– The cost of recruiting internal candidates is minimal. No
expenses are incurred on advertising.
2. Suitable :– The organization can pick the right-candidates having the
requisite skills. The candidates can choose a right vacancy where their
talents can be fully utilized.
3. Reliable :– The organization has knowledge about the suitability of a
candidate for a position. ‘Known devils are better than unknown angels!’
4. Satisfying :– A policy of preferring people from within offers regular
promotional avenues for employees. It motivates them to work hard and
earn promotions. They will work with loyalty, commitment and
enthusiasm.
Demerits :–
1. Limited Choice :– The organization is forced to select candidates from a
limited pool. It may have to sacrifice quality and settle down for less
qualified candidates.
2. Inbreeding :– It discourages entry for talented people, available outside
an organization. Existing employees may fail to behave in innovative ways
and inject necessary dynamism to enterprise activities.
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3. Inefficiency :– Promotions based on length of service rather than merit,
may prove to be a blessing for inefficient candidates. They do not work
hard and prove their worth.
4. Bone of contention :– Recruitment from within may lead to infighting
among employees aspiring for limited, higher level positions in an
organization. As years roll by, the race for premium positions may end up
on a bitter note.
B. External Sources :– External sources lie outside an organization. Here the
organization can have the services of: (a) Employees working in other
organizations; (b) Job aspirants registered with employment exchanges; (c)
Students from reputed educational institutions; (d) candidates referred by
unions, friends, relatives and existing employees; (e) candidates forwarded by
search firms and contractors; (f) Candidates responding to the advertisements,
issued by the organization; and (g) Unsolicited applications/ walk-ins.
Merits :–
1. Wide choice :– The organization has the freedom to select candidates
from a large pool. Persons with requisite qualifications could be picked up.
2. Motivational force :– It helps in motivating internal employees to work
hard and compete with external candidates while seeking career growth.
Such a competitive atmosphere would help an employee to work to the
best of his abilities.
3. Long-term benefits :– Talented people could join the ranks, new ideas
could find meaningful expression, a competitive atmosphere would
compel people to give out their best and earn rewards, etc.
4. Injection of fresh blood :– People with special skills and knowledge could
be hired to stir up the existing employees and pave the way for innovative
ways of working.
Demerits :–
1. Expensive :– Hiring costs could go up substantially. Tapping multifarious
sources of recruitment is not an easy task either.
Time consuming :– It takes time to advertise, screen, to test and to select
suitable employees. Where suitable ones are not available, the process
has to be repeated.
2. De-motivating :– Existing employees who have put in considerable
service may resist the process of filling up vacancies from outside. The
feeling that their services have not been recognized by the organization,
forces them to work with less enthusiasm and motivation.
3. Uncertainty :– There is no guarantee that the organization, ultimately,
will be able to hire the services of suitable candidates. It may end up hiring
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someone who does not ‘fit’ and who may not be able to adjust in the new
set-up.
Method of Recruitement
A.Internal Method :–
1. Promotions and Transfers :– This is a method of filling vacacies from with
in through transfers and promotions .Transfer is a lateral moment within
the same grade from one job to another leading to change in duties
responsibilities and wrong conditions but not necessarily the salary. The
promotion on the other hand involves movement of employees from a
lower level position to a high level position, accompanied by change in
duty, stand by values ,Responsibilities and salary and perks also.
2. Job Posting :– It is the another way of hiring the people within. In this
method organization publishes job openings in bulletin boards, electronic
media and similar cutlets .One of the most important advantage of this
method is that it offers a change to highly qualified applicats working
within the company to look for growth opportunities within the company
without looking out.
3. Employee Refrals :– Employee refrals means using personal contacts to
locate job opportunities. It is a recommendation from a current employee
regarding a job applicant. The logic behind it is that it takes out to know
one employee working in an organization are encouraged to recommend
the names of some potential and outstanding friends and tell them
working in other organization, for a possible vacancy in near future.In fact
this has become a popular way of man power search in highly competitive
management field and IT industry now a days.
B. DIRECT METHODS :–
1. Campus Requirement :– It is a method of searching man power and
recruiting work force by visiting and participating in campus of colleges
,institutions and universities and their placement cells and centers .Here
recruiters visits highly reputed educational institutions colleages, and
universities with a view to pick up job aspirants
Having requisite technical and professional skills along with good
academic approach .Students (job seekers) are provided information
about jobs and recruiters int turn get a snapshot of job seekers through
constant inter change of information with respective institutions. A
preliminary screening is done at campus and shortlisted students are
then called for selection process campus recruiting steps should be taken
by human resource dept to ensure that recuiters acknowledge connecting
the jobs that are to be filled.
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Ø But some common mistakes are generally made in campus recruiting :–
The recruiters is not professionally trained in intevewing
The recruiters does not have authority to make decision of hirirng.
The recruiters does not get involved in development of new employee
The actual plan visit is mishandled
Ø There are some guideline for campus recruiting:-
Identify the potential candidate early
Use various means to attract potential and outstanding candidate
Use effective recruiting materials
Offer training to campus interview to trained them to answer specific
questions of students and candidate
Come out with a competitive offer
C. INDIRECT METHOD :–
Advertisement :– These constitute a popular and most common method of
seeking recruiters as many as recruiters prefer advertisement in newspaper of
their wide reach and scenario. This include want ads in newpaper, trade,
professional and tech. journals and radios and television. Nowadays this
medium has become just as colorful lively and imaginative as consumer
advertising
The want ads describe the job benifets identify the employer, job
responsibility, packages & prospect in organization alongwith the way to apply.
this method is suitable(a) when organisation intends to reach large targets
group(b) It want a fairly good number of talented people, who are geographically
spread out advertisement must be effectively drafted before publishing or
releasing. Experience advertiser use four points called AIDA-: A stands for
attention, I stands for interest, D stands for desire, A stand for action.
D. Third party Method :–
1 Private Manpower Search Firms :– A search firm is a private
employment agencies that maintains list of qualified applicants supplies
these to employers willing to hire manpower from the list for a fee and vice
versa. These search firms provide services to both recruiters & recruits.
2. Employment Exchanges :– Employment exchanges have been set up all
over the country under employment exchange act 1959 which applies to
all industrial establishment. It require to notify vacancies before filling.
The employment exchange act as a link between employers & prospective
employees.
3. Gate Hiring &contractors :– Gate hiring where job seekers generally blue
collars present themselves at factory gate & offer their services on daily
basis, hiring through contractors & recruiting through word of mouth
publicity are still in use despite misuse.
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4. Walk in :– The most common & least expensive approach for candidates is
direct application in which jobseekers submit unsolicted application
letters or Resumes.
Recruitment policies :–
In the recruitment companies will :–
a. Advertise all vacancies internally.
b. Respond to every applicant of job without delay.
c. Process all applications with efficiency & courtsy
d. Inform all applicants the basic details of job alongwith conditions.
e. Ensure that every person invited for interview will be given fair
dealing & through hearing.
The company will not :–
a. Discriminate unfairly against potential candidates on basis of
religion , caste etc
b. Knowingly make any false claim in recruitment adv.
Q. What is selection? What are objectives of selection? What are types of
selection devices & explain its process also.
Ans. Definition :–
“Selection is the process of differentiating between applicants in order to
identify (and hire) those with a greater likelihood of success in a job”.
Selection is the process of gathering information about applicants for a position
and then using that information to choose the most appropriate applicant.
Objectives of the selection process :–
1.Gather as much relevant information as possible
2.Organize and evaluate the information
3.Assess each candidate in order to:
(i) Forecast performance on the job, and
(ii) Give information to applicants, so that
(iii) They can judge whether or not they wish to accept an offer of
employment.
Selection Process :–
1. Screening of Applications :– Prospective employees have to fill up some
sort of application form. These forms have a variety of information about
the applicants like their bio-data, achievements, experience, etc.
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2. Selection Tests :– Many organizations hold different kinds of selection
tests to know more about the candidates or to reject the candidates who
cannot be called for interview, etc. Selection tests normally supplement
the information provided in application forms. Such forms may contain
factual information about candidates. Selection tests may give
information about their aptitude, interest, personality etc, which cannot
be known by application forms.
Types of Test :–
I Achievement Test :– It is also called performance test or trade test.
Achievement is concerned with what one has accomplished. When
candidates claim that they have done certain things and know these, the
achievement test may be conducted to measure how well the candidates
know these.
II Intelligence Test :– Intelligence test tries to measure the level of
intelligence of a candidate. This test generally includes verbal
comprehension, word fluency, memory, inductive, reasoning, number
facility, speed of perception, spatial, visualization, etc.
III Personality Test :– The personality test is administered to predict
performance success for jobs that require dealing with people, or jobs that
are essentially supervisory or managerial in character. Dimensions of
personality such as interpersonal competence, dominance-submission,
extroversion-introversion, self-confidence, leadership ability, patience,
and ambition can be measured through personality tests.
IV Aptitude test is used for measuring human performance characteristics
related to the possible development of proficiency on specific jobs. These
basic characteristics can be thought of as aptitudes. As such, aptitude
test measures the latent or potential characteristics to do something,
provided proper environment and’ training are provided to the individuals.
This test is more valid when the applicants have no experience or very little
experience along the lines of the jobs. Specific tests have been developed
for jobs that require clerical, mechanical, spatial relationships, and
manual dexterity, abilities and skills. However, aptitude test does not
measure motivation. Since on-the-job motivation is found to be more
important than aptitude for the job, aptitude test is supplemented by
interest tests.
V. Interest Test Interest test is designed to discover a person’s area of
interest, and to identify the kind of jobs that will satisfy him. It is assumed
that a person who is interested in a job can do much better than the
person who is not interested. Interest test generally measures interest in
outdoor activities, mechanical, computational, scientific, persuasive,
artistic, literary, musical, clerical, social services, etc.
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3. Interviews :– Selection tests are normally followed by personal interview

of the candidates. The basic idea is to find out overall suitability of candidates
for the jobs. It also provides opportunity to give relevant information about the
organization to the candidates. In many cases, interview of preliminary nature
can be conducted before the selection tests.
Role of Interview :– We must try and understand that interviews are so
essential in the selection process that many times, selection of the candidates
is made on the basis of interview alone. If handled properly, interview
contributes in, the following, ways:
1. It is the only method of direct contact between the candidates and the
employer in which the employer can see a candidate in” action-how he
looks, his manner, his wearing, his appearance, etc., method of
interaction and answering, etc.
2. Many of the information can be sought through the interview, which may
not be available in application form, or cannot be disclosed by the
selection tests, such as: family background, future plans; etc.
3. The ‘interview can be used as a tool for giving information about the
organization, its policies, nature of the work to be performed by the
candidate salary and other benefits to be offered. Negotiations, if any,
about the salary and- perks to be offered to the candidate can also be
undertaken.
Hence we should remember that interview can be used ‘as a method to
promote goodwill among the candidates by offering courtesy, by providing
vocational literature, by constructive suggestions, and by showing
interest in them.
4. Checking Of References :– Many organizations ask the candidates to
provide the names of referees from whom more information about the
candidates can be solicited. Such information may be related to character,
working, etc.
5. Physical Examination :– Physical examination is carried out to ascertain
the physical standards and fitness of prospective employees.
6. Approval by Appropriate Authority :– On the basis of the above steps,
suitable candidates are recommended for selection by the selection
committee or personnel department. Though such a, committee or
personnel department may have authority to select the candidates finally,
often it has staff authority to recommend the candidates for selection to
the appropriate authority. Organizations may designate the various
authorities for approval of final selection of candidates for different
categories of candidates. Thus, for top-level managers, Board of Directors
may be approving authority; for lower levels, even functional heads
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concerned may be approving authority. In university, it may be
syndicate/executive committee. When the approvals received, the
candidate are informed about their selection and asked to report for duty
to specified persons.
7. Placement :– After all the formalities are completed, the candidates are
placed on their jobs initially on probation basis. The probation period may
range from three months to two years. During this period, they are
observed keenly, and when they complete this period successfully, they
become the permanent employees of the organization. After a candidate is
selected for employment, he is placed on the job.
Q. What is orientation? Why orientation is necessary? What are steps in
orientation programme? Explain with examples.
Ans. Orientation is the process of acquainting new employees with the
organization. Orientation topics range from such basic items as the location of
the company cafeteria to such concerns as various career paths within the
firm.
Hence we can say that induction or orientation is the process through which a
new employee is introduced to the job and the organization. In the words of
Armstrong, induction is “the process of receiving and welcoming an employee
when he first joins a company and giving him the basic information he needs to
settle down quickly and start work.
Objectives :–
Induction serves the following purposes:
a. Removes fears :– A newcomer steps into an organization as a stranger. He
is new to the people, workplace and work environment. He is not very sure
about what he is supposed to do. Induction helps a new employee
overcome such fears and perform better on the job.
b. Creates a good impression :– Another purpose of induction is to make
the newcomer feel at home and develop a sense of pride in the
organization.
c. Act as a valuable source of information :– Induction serves as a valuable
source of information to new recruits. It classifies many things through
employee manuals/handbook. Informal discussions with colleagues may
also clear the fog surrounding certain issues. The basic purpose of
induction is to communicate specific job requirements to the employee,
put him at ease and make him feel confident about his abilities.
Steps in Induction Programme :–
The HR department may initiate the following steps while organizing the
induction programme:
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1. Welcome to the organization

2. Explain about the company.
3. Show the location, department where the new recruit will work. .
4. Give the company’s manual to the new recruit.
5. Provide details about various work groups and the extent of unionism
within the company.
6. Give details about pay, benefits, holidays, leave, etc. Emphasize the
importance of attendance or punctuality.
7. Explain about future training opportunities and career prospects.
8. Clarify doubts, by encouraging the employee to come out with
questions.
9. Take the employee on a guided tour of buildings, facilities, etc. Hand
him over to his supervisor.
Content :–
The areas covered in employee induction programme may be stated as follows:
1. Organizational issues :–
History of company
Names and titles of key executives.
Employees’ title and department.
Layout of physical facilities
Probationary period
Products/services offered
Overview of production process
Company policy and rules
Disciplinary procedures
Safety steps
Employees’ handbook
2. Employee benefits :–
Pay scales, pay days
Vacations, holidays
Rest pauses
Training Avenues
Counseling
Insurance, medical, recreation, retirement benefit
3. Introductions :–
Ø To supervisors
Ø To co-workers
Ø To trainers
Ø To employee counselor
4. Job duties
Ø Job location
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Ø Job tasks
Ø Job safety needs
Ø Overview of jobs
Ø Job objectives
Ø Relationship with other jobs
Socialization :– Socialization is a process through which a new recruit begins
to understand and accept the values, norms and beliefs held by others in the
organization. HR department representatives help new recruits to internalize
the way things are done in the organization”. Orientation helps the newcomers
to interact freely with employees working at various levels and learn behaviors
that are acceptable. Through such formal and informal interaction and
discussion, newcomers begin to understand how the department/ company is
run, who holds power and who does not, who is politically active within the
department, how to behave in the company, what is expected of them, etc. In
short, if the new recruits wish to survive and prosper in their new work home,
they must soon come to ‘know the ropes’.
Employee Induction Programme :– Three Examples
Aptech :– The company takes its new entrants through a structured induction-
training program. The one-day Programme includes a briefing on the
company’s market position, The business it is in, its functioning style, its
organizational structure and its HR policies. The entrants are also familiarized
with what others do before being deputed to their own departments. A six-
month behavioral training is also offered in team building, self-development,
customer-sensitivity etc. Finally, the recruits are put through an appraisal
process to gauge fitment and progress.
Maruti Udyog :– The company customizes its initiation programs to suit the
profile of the new recruit. For engineers, the programme is offered in four parts:
(1) familiarize with various functions and meet division heads (ii) work on shop
floor (iii) work at various other departments (iv) work finally in departments for
about 2 months, where they will eventually work.
Standard Chartered Bank :– The management trainees are picked up from
premium B- schools and undergo introduction training for about 6 months.
During this period, the trainees see me in the various divisions of the bank to
get a holistic view of the bank’s operations, and get a chance to meet each of the
bank’s business heads. A two-day session dedicated to team building is also
conducted thereafter. After taking charge of the job, the new recruits have to
attend a review session about the job itself.
Q. What is career planning? Why it is necessary? How we plan & develop
career? What are advantages & disadvantages of career planning &
development?
Ans. Meaning :– Career planning is the process by which one selects career
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goals and the path to these goals. Career development is those personal
improvements one undertakes to achieve a personal career plan. Career
management is the process of designing and implementing goals, plans and
strategies to enable the organization to satisfy employee needs while allowing
individuals to achieve their career goals. So, due to this career planning and
development is necessary to each and every employee in an organization. The
need of career planning and development is felt in each and every organization
of today’s global world.
Need for Career Planning :–
Career Planning is necessary due to the following reasons :–
1. To attract competent persons and to retain them in the organization.
2. To provide suitable promotional opportunities.
3. To enable the employees to develop and take them ready to meet the future
challenges.
4. To increase the utilization of managerial reserves within an organization.
5. To correct employee placement.
6. To reduce employee dissatisfaction and turnover.
7. To improve motivation and morale.
Process of Career Planning and Development :–
The following are the steps in Career Planning and Development :–
1. Analysis of individual skills, knowledge, abilities, aptitudes etc.
2. Analysis of career opportunities both within and outside the organization.
3. Analysis of career demands on the incumbent in terms of skills,
knowledge, abilities, aptitude etc., and in terms of qualifications,
experience and training received etc.
4. Relating specific jobs to different career opportunities.
5. Establishing realistic goals both short-term and long-term.
6. Formulating career strategy covering areas of change and adjustment.
7. Preparing and implementing action plan including acquiring resources for
achieving goals.
Steps involved in Career Development System :–
There are four steps in establishing a career development system. They are :–
1. Needs :– Defining the present system i.e. this step involves in the
conducting a needs assessment as in a training programme.
2. Vision :– The needs of the career system must be linked with the
interventions. An ideal career development system known as the vision
links the needs with the interventions.
3. Action Plan :– -An action plan should be formulated in order to achieve
the vision. The support of the top management should be obtained in this
process.
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4. Results :– Career development programme should be integrated with the
organization’s on-going employee training and management development
programmes. The programme should be evaluated from time to time in
order to revise the programme.
The above points can further elaborated in the following way :–
Step 1 :– Needs: Defining the present system
a. Establish roles and responsibilities of employees, managers, and the
organization.
b. Identify needs; establish target groups.
c. Establish cultural parameters; determine organizational receptivity,
support, and commitment to career development.
d. Assess existing HR Programme or structure; consider possible links
to a career development programme.
e. Determine prior attempts at solving the problem or need.
f. Establish the mission or philosophy of the programme.
g. Design and implement needs assessment to confirm the data or
collect more data.
h. Establish indicators or criteria of success.
Step 2 :– Vision: Determining New Directions and Possibilities
a. Create a long-term philosophy.
b. Establish the vision or objectives of the programme.
c. Design interventions for employees, managers, and the organization.
d. Organize and make available career information needed to support
the programme.
Step 3 Action Plan: Deciding on practical first steps
a. Assess the plan and obtain support from top management
b. Create a pilot programme
c. Assess resources and competencies.
d. Establish an advisory group.
e. Involve advisory group in data gathering, programme design,
implementation, evaluation and monitoring
Step 4 :– Results: Maintaining the change
a. Create long-term formalized approaches.
b. Publicize the programme.
c. Evaluate and redesign the programme and its components.
d. Consider future trends and directions for the programme.
Advantages of Career Planning and Development
For Individuals :–
1. The process of career planning helps the individual to have the knowledge
of various career opportunities, his priorities etc.
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2. This knowledge helps him select the career that is suitable to his life
styles, preferences, family environment, scope for self-development etc.
3. It helps the organization identify internal employees who can be
promoted.
4. Internal promotions, upgradation and transfers motivate the employees,
boost up their morale and also result in increased job satisfaction.
5. Increased job satisfaction enhances employee commitment and creates a
sense of belongingness and loyalty to the organization.
6. Employee will await his turn of promotion rather than changing to another
organization. This will lower employee turnover.
7. It improves employee’s performance on the job by taping their potential
abilities and further employee turnover.
8. It satisfies employee esteem needs.
For Organizations :–
1. Efficient career planning and development ensures the availability of
human resources with required skill, knowledge and talent.
2. The efficient policies and practices improve the organization’s ability to
attract and retain highly skilled and talent employees.
3. The proper career planning ensures that the women and people belong to
backward communities get opportunities for growth and development.
4. The career plan continuously tries to satisfy the employee expectations
and as such minimizes employee frustration.
5. By attracting and retaining the people from different cultures, enhances
cultural diversity.
6. Protecting employees’ interest results in promoting organizational
goodwill.
Limitations of career planning :–
1. Dual Career Families :– With the increase in career orientation among
women, number of female employees in on increase. With this, the dual
career families have also been on increase. Consequently, one of those
family members might face the problem of transfer. This has become a
complicated problem to organization.
2. Low ceiling careers :– Some careers do not have scope for much
advancement. Employees cannot get promotions despite their career
plans and development in such jobs.
3. Declining Career Opportunities :– Career opportunities for certain
categories reach the declining stage due to the influence of the
technological or economic factors. Solution for such problem is career
shift.
4. Downsizing/Delayering and careers :– Business process reengineering,
technological changes and business environmental factors force the
business firms to restructure the organizations by delayering and
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downsizing. Downsizing activities result in fixing some employees, and
degrading some other employees.
There are some suggestions for effective career development. They are :–
(i) Challenging Initial Job Assignments: - There is an evidence indicating
that employees who take up initial challenging jobs perform better at later
stages.
(ii) Dissemination of Career Option Information :– Mostly employees lack
information about career choices/options. The managers identify career
paths and succession paths. This information should be made available to
all.
(iii) Job Positioning :– Management should provide job information to
employees through job positioning. For posting the jobs organizations can
use bulletin board displays, company publications, electronic billboards
and similar means.
(iv) Assessment Centres :– The assessment centers evaluate the people
regarding their ability to certain jobs. This technique helps to identify the
available skills, abilities and knowledge.
(v) Career Counseling :– Career Counseling helps employees in setting
directions, reviewing performance, identifying areas for professional
growth.
Succession Planning :–
Succession may be from internal employees or external people.
Succession from internal employees is advantageous to the organization as
well as to the internal employees. Organization can buy the employees loyalty
and commitment, belongingness, shared feeling of development along with the
organization by promoting the internal employees. Employees get the benefits
of growth in the organization. The organization mostly prefers to encourage the
growth and development of its employees and as such tends to prefer
succession from within. Organizations, appraise employee’s potentialities,
identify training gaps for future vacancies, and develop them for higher and
varied jobs. The scope of succession plan would be more when the organization
grows steadily and employees have potentialities to take up higher
responsibilities.
Professionally run organizations ask their managers to identify the
internal employees having potentialities and develop them in order to occupy
their positions as and when they feel vacant. However, it is necessary to allow
the inflow of new blood also. Hence, organizations should also search for
outside talent in certain cases like when competent internal people are not
available, when major expansion, diversification and growth plans are in offing,
complete dependence on either internal source or external source not advisable
to any organization.
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UNIT – III
Q. Explain Training & Development with its purpose and nature?
What are methods & techniques of training?
Training could be compared to this metaphor - if I miss one meal in a
day, then I will starve to death. The survival of the organization
requires development throughout the ranks in order to survive, while
training makes the organization more effective and efficient in its
day-to-day operations.
Ans. ‘Training is the formal and systematic modification of behaviour through
learning which occurs as a result of education, instruction, development and
planned experience.”
Development is any learning activity, which is directed towards future, needs
rather than present needs, and which is concerned more with career growth
than immediate performance.
Nature of Training and Development :–
In simple terms training and development refer to the imparting of specific
skills, abilities and knowledge to an employee.It is any attempt to improve
current or future employee performance by increasing an employee’s ability to
perform through learning, usually by changing the employee’s attitude or
increasing his her skills and knowledge.
The need for training and development is determined by the employee’s
performance deficiency as follows:
Training and development need = standard performance-actual
performance
The purpose of training :–
The purpose of training is to:
To increase productivity and quality
To promote versatility and adaptability to new methods
To reduce the number of accidents
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To reduce labour turnover
To increase job satisfaction displaying itself in lower labour turn-over and
less absenteeism
To increase efficiency
Advantages of training :–
1. Leads to improved profitability and/or more positive attitudes toward
profits orientation.
2. Improves the job knowledge and skills at all levels of the organization.
3. Improves the morale of the workforce.
4. Helps people identify with organizational goals.
5. Helps create a better corporate image.
6. Fasters authentically, openness and trust.
7. Improves the relationship between boss and subordinate.
8. Aids in organizational development.
9. Learns from the trainee.
10. Helps prepare guidelines for work.
11. Aids in understanding and carrying out organizational policies.
12. Provides information for future needs in all areas of the organization.
13. Organization gets more effective decision-making and problem solving.
14. Aids in development for promotion from within.
15. Aids in developing leadership skill, motivation, loyalty, better attitudes,
and other aspects that successful workers and mangers usually display.
16. Aids in increasing productivity and/or quality of work.
17. Helps keep costs down in many areas, e.g. production, personnel.
Administration, etc.
18. Develops a sense of responsibility to the organization for being competent
and knowledgeable.
19. Improves labor-management relations.
20. Reduces outside consulting costs by utilizing competent internal
consulting.
Disadvantages of training :–
1. Can be a financial drain on resources; expensive development and testing,
expensive to operate?
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2. Often takes people away from their job for varying periods of time;
3. Equips staff to leave for a better job
4. Bad habits passed on
5. Narrow experience
Development :– Hamlin observed development as training of future jobs.
According to Nadler :– development is concerned with providing learning
experiences to employees so that they may be ready to move in new directions
that organisational change may require.
A limitation of training needs based solely on needs analysis that it fails to
address the development issue Development is the need to enhance
competencies beyond those required by the immediate job, for example:
Ø Values & ethics of organisation & professional group
Ø Sources of enthusiasm
Steps in the Training Process :–
1. Organizational objectives
2. Assessment of Training needs
3. Establishment of Training goals
4. Devising training programme
5. Implementation of training programme
6. Evaluation of results
I. Organizational Objectives and Strategies :– The first step in the training
process in an organization is the assessment of its objectives and
strategies.
II. Needs Assessment :– Needs assessment diagnosis present problems and
future challenges to be met through training and development.
Needs assessment occurs at two levels- group and individual. An
individual obviously needs training when his or her performance falls
short of standards, that is, when there is performance deficiency.
Inadequacy in performance may be due to lack of skill or knowledge or any
other problem. The problem of performance deficiency caused by absence
of skills or knowledge can be remedied by training. Faulty selection, poor
job design, improving quality of supervision, or discharge will solve the
problem.
Benefits of Needs assessment are :–
1. Trainers may be informed about the broader needs of the training
group and their sponsoring organizations.
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2. The sponsoring organizations are able to reduce the perception gap
between the participant and his or her boss about their needs and
expectations from the training programmes.
3. Trainers are able to pitch their course inputs course inputs closer to
the specific needs of the participants.
III. Training and Development objectives :– Once training needs are
assessed, training and development goals must be established. Without
clearly set goals, it is not possible to design a training and development
programme and, after it has been implemented there will be no way of
measuring its effectiveness. Goals must be tangible, verifiable, and
measurable. This is easy where skills’ training is involved.
IV. Designing Training and Development Programme :– Every training and
development programme must address certain vital issues
1. Who participates in the programme?
2. Who are the trainers?
3. What methods and techniques are to be used for training?
4. What should be the level of training?
5. What learning principles are needed?
6. Where is the program conducted?
Who are the trainers: Trainers should be selected on the basis of self-
nomination, recommendations of supervisors or by the HR department
itself. Whatever is the basis, it is advisable to have two or more target
audience. For example, rank-and-file employees and their supervisors or
by the HR department itself.
V. Methods and Techniques of training :– A multitude of methods of
training is used to train employees. Training methods are categorized into
two groups :–
(i) On the job training and
(ii) Off-the job methods.
On the job training :–
Refers to methods that are applied in the workplace, while the employees is
actually working.
“Training that is planned and structured that takes place mainly at the normal
workstation of the trainee- although some instruction may be provided in a
special training area on site - and where a manager, supervisor, trainer or peer
colleague spends significant time with a trainee to teach a set of skills that have
been specified in advance.”
Advantages :–
1. Tailor-made course content with use of REAL company
situations/examples.
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2. It is usually less expensive than off-job training

3. Learning will take place using the equipment which will be actually used
Disadvantages :–
1. Possibility of poor instruction and insufficient time.
2. Trainee may be exposed to bad work practices.
3. A large amount of spoiled work and scrap material may be produced.
4. Valuable equipment may be damaged.
5. Training takes place under production conditions that are stressful, i.e.
noisy, busy, confusing and exposing the trainee to comments by other
workers.
Off-job training
Advantages :–
1. A specialist instructor enables delivery of high quality training.
2. Wider range of facilities and equipment are available.
3. The trainee can learn the job in planned stages.
4. It is free from the pressures and distractions of company life.
5. It is easier to calculate the cost of off-job training because it is more self-
contained
6. Cross-fertilisation of ideas between different companies.
Disadvantages :–
1. Can result in transfer of learning difficulties when a trainee changes from
training equipment to production equipment.
2. No training can be entirely off-job as some aspects of the task can only be
learned by doing them in the normal production setting, with its own
customs and network of personal relationships.
3. Can be more expensive.
4. Carrying out the training
On the Job Training
Ø Orientation training
Ø Job-instruction training
Ø Apprentice training
Ø Internships and assistantships
Ø Job rotation
Ø Coaching
Off-the –job training: are used away from workplaces.
Ø Vestibule
Ø Lecture
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Ø Special study
Ø Films
Ø Television
Ø Conference or discussion
Ø Case study
Ø Role playing
Ø Simulation
Ø Programmed instruction
Ø Laboratory training
1. Vestibule Training :– This training method attempt to duplicate on-the-
job-situation in a company classroom. It is a classroom training that is
often imported with the help of the equipment and machines, which are
identical with those in use in the place of work. This technique enables the
trainees to concentrate on learning new skill rather than on performing on
actual job. This type of training is efficient to train semi-skilled personnel,
particularly when many employees have to be trained for the same kind of
work at the same time. Often used to train – bank tellers, inspectors,
machine operators, typists etc. In this, training is generally given in the
form of lectures, conferences, case studies, role-play etc.
2. Demonstrations And Example :– In this type of training method trainer
describes and displays something, as & when he teaches an employee,
how to do something by actually performing the activity himself & going on
explaining why & what he is doing. This method is very effective in
teaching because it is much easier to show a person how to do a job than
tell him or give him instruction about a particular job. This training is
done by combination with lectures, pictures, text materials etc.
3. Lectures :– Lecture is a verbal presentation of information by an
instructor to a large audience. The lecture is presumed to possess a
considerable depth of knowledge of the subject at hand. A virtue of this
method is that is can be used for very large groups, and hence the cost per
trainee is low. This method is mainly used in colleges and universities,
though its application is restricted in training factory employees.
Limitations of the lecture method account for its low popularity. The
method violates the principle of learning by practice. It constitutes a one-
way communication.
There is no feedback from the audience. Continued lecturing method can
be made effective it if is combined with other methods of training.
4. Audio-visuals :– Audio-visuals include television slides, overheads,
video-types and films. These can be used to provide a wide range of
realistic examples of job conditions and situations in the condensed
period of time. Further, the quality of the presentation can be controlled
and will remain equal for all training groups. But, audio-visuals constitute
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a one-way system of communication with no scope for the audience to

raise doubts for clarification. Further, there is no flexibility of presentation
from audience to audience.
5. Programmed Instruction (PI) :– This is method where training is offer
without the intervention of a trainer. Information is provided to the trainee
in blocks, either in a book form of through a teaching machine.
PI involves:–
1. Presenting questions, facts, or problems to the learner
2. Allowing the person to respond
3. Providing feedback on the accuracy of his or her answers
4. If the answers are correct, the learner proceeds to the next block. If
not, he or she repeats the same.
6. Computer-Assisted Instruction (CAI) :– this is an extension of the PI
method. CAI provides for accountability as tests are taken on the
computer so that the management can monitor each trainee’s progress
and needs. CAI training program can also be modified easily to reflect
technological innovations in the equipment for which the employee is
being trained. This training also tends to be more flexible in that trainees
can usually use the computer almost any time they want, thus get training
when they prefer.
7. Apprenticeship :– This method of training is usually done in crafts,
trades and in technical areas. It is the oldest and most commonly used
method, if the training is relatively for a longer period. Here a major part of
training is spent on the job productive work. Each apprentice is given a
programme of assignments according to a pre-determined schedule,
which provide for efficient training in trade skills.
8. Simulation :– A simulator is any kind of equipment or technique that
duplicates as nearly as possible the actual conditions encountered on the
job. Simulation then, is an attempt to create a realistic decision-making
environment for the trainee. Simulations present likely problem
situations and decision alternatives to the trainee. The more widely held
simulation exercises are case study, role-playing and vestibule training.
9. Conference :– In this method, the participating individuals confer to
discuss points of common interest to each other. It is a basic to most
participative group centered methods of developments. This emphasis on
small group discussion, on organized subject matter and on the active
participation of the members involved.
There are three types of conferences,
Ø Direct discussion :– Here trainer guides the discussion in such a
way that the facts, principles or concepts are explained.
Ø Training Conference :– The instructor gets the group to pool its
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knowledge and past experience and brings different points of view to
bear on the problem.
Ø Seminar Conference :– In this method instructor defines the
problem, encourages and ensures the full participation in the
discussion.
10. Case Studies :– This method is developed in at the Harvard Law School.
When the trainees are given cases to analyse, they are asked to identify the
problem and recommend tentative solution for it. The case study is
primarily useful as a training technique for supervisors and is specially
valuable as a technique of developing discussion-making skills, and for
broadening the prospective of the trainee.
In case study method the trainee is expected to master the facts, should
acquainted with the content of the case, define the objective sought in
dealing with the issues in the case, identify the problem, develop
alternative courses of action, define the controls needed to make the
action effective and role play the action to test its effectiveness and find
conditions that may limit it.
11. Role Playing :– In role-playing trainees act out the given role as they
would be in stage play. Two or more trainees are assigned parts to play
before the nest of the class. Here role players are informed of a situation
and of the respective roles they have to pay. Sometimes after the
preliminary planning, the situation is acted out by the role players. This
method primarily involves employee-employer relationship – Hiring,
firing, discussing a grievance procedure, conducting a post appraisal
interview etc.
12. Programmed Instructions :– This method involves a sequence of steps
that are often set up through the central panel of an electronic computer
as guides in the performance of desired operation or series of operations.
This method involves breaking information down into meaningful units
and then arranging these in a proper way to form a logical and sequential
learning. The programme involves – presenting questions, facts or
problems to trainees to utilize the information given and the trainee
instantly receive feedback on the basis of the accuracy of his answers.
V. Points in Planning Training Evaluation
Objectives of Evaluation are-:
1. To monitor the quality of training
2. Provide feedback
3. To appraise the overall effectiveness of the investment in training
4. To assist the development of new methods of training
5. To aid the individual evaluate his or her own learning experience.
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Methods of Evaluation :–
Various methods can be used to collect data on the outcomes of training. Some
of these are :
Questionnaires :– Comprehensive questionnaires could be used to obtain
opinion reactions, views of trainees.
Tests :– Standard tests could be used to find out whether trainees have learnt
anything during and after the training.
Interviews :– Interviews could be conducted to find the usefulness of training
offered to operatives.
Studies :– Comprehensive studies could be carried out eliciting the opinions
and judgments of trainers, superiors and peer groups about the training.
Feedback :– After the evaluation, the situation should be examined to identify
the probable causes for gaps in performance. The training evaluation
information. (about costs, time spent, outcomes, etc.) should be provided to the
instructors’ trainees and other parties concerned for control, correction and
improvement of trainees’ activities. The training evaluator should follow it up
sincerely so as to ensure effective implementation of the feedback report at
every stage.
TYPES OF TRAINING
1. Orientation :– induction or orientation training is for comforting the new
recruits to put them at ease and making them aware of everything about
work,job organization structure norms, values, rules and regulation and
technique required.
2. JIT job instruction training :– JIT is given to employees for giving them
necessary instruction about new technology of job.
3. Refresher Training :– This kind of training is given to accommodate rapid
change in technological knowhow and new invention in form of short term
courses or training programs.
4. Apprenticeship Training :– Here some apprentices spend a prescribed
time of working with an expert & experienced worker as trainee.
5. Vestibule Training :– It is training offered on actual equipment used on
job but conducted away from actual work.
Q. Write a short note on term “organizational renewal management”.
Ans. Two Distinct Dimensions of Planning :–
1. The organization and its renewal process
2. The identification of and linkage with its target publics/learner systems
through collaboration with learners and their leaders in needs
identification, assessment and analysis.
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1. Organizational Renewal :– Organizational renewal involves
reexamination by the adult education organization of:
Ø The needs of its current and emerging policies
Ø Its own functions, structure, and processes as related to its
mission/vision, values, philosophy and goals/objectives
Processual Task Defined :–
A processual task is a process in which the adult educator defines an outcome
that needs to be accomplished, specific to a programmatic situation, and then
selects and implements conceptually driven actions, leading to the
achievement of that outcome.
The Organization and its Renewal Process Processual Tasks for the Educator
Adult educators must :–
1. Acquire and maintain a thorough understanding of the functions of the
adult education organization with particular emphasis on its
mission/vision, values, philosophy and goals/objectives.
2. Acquire and maintain an in-depth understanding of the organizational
structure of the adult education organization with particular attention
given to understanding the division of responsibilities with respect to job
groups; inter organizational relationships; lines of communication; and
how the expertise and resources of the organization can be accessed and
utilized in the total programming process and in particular, the planning
sub process.
3. Acquire an understanding of the adult education organization’s
management system and practices with particular emphasis on the
management and supervision of personnel, personnel appraisal, staff
development, evaluation and accountability.
4. Acquire and understanding and appreciation of the adult education
organization’s culture and, importantly, how to relate to it.
5. Acquire and maintain an understanding of, and the skills needed to
implement, the adult education organization’s programming process.
6. Maintain a sensitivity and commitment to the use of feedback obtained
and lessons learned in the implementation of the programming process in
assessing the adult education organization’s effectiveness and relevancy
in meeting the changing educational needs of its mission-mandated
publics and in using these evaluative results to effect needed
organizational renewal.
2. Linkage :– Linkage may be defined as the temporary blending of two or
more systems through planned and sustained interaction in such a way that
they act as a unitary system in order to accomplish mutually agreed-upon
goals.
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Linkage with Publics

Five Elements of Linkage
Ø Scanning and interpreting the organization’s external environment.
Ø Study, analysis and mapping of the organization’s potential publics
based on its mission and resource availability.
Ø Identifying and ranking target publics and stakeholder groups.
Ø Identifying and interfacing with leaders of target publics and
stakeholder groups.
Ø Collaborating with leaders of target publics and stakeholders to
identify, assess and analyze needs specific to target publics.
Objectives of Linkage :–
Ø To initiate collaboration between the educator, leaders of target
publics and stakeholders in identifying, assessing and analyzing the
educational needs of the target public.
Ø To motivate and obtain a firm commitment from the target public to
actively engage in the planned program.
Ø To build a relationship of trust between the educator, the target
publics and stakeholders
Ø To create a learning environment that will aid in empowering the
target public
Ø To enhance and maximize the efficiency and effectiveness of the
education organization and its educators in planning for and
effecting positive planned change in its target learner systems.
Q. Write a short note on 360 degree Feedback & potential appraisal
Ans. 360 degree feedback :–
Where multiple raters are involved in evaluating performance, the technique is
called 360-degree appraisal. The 360-degree technique is understood as
systematic collection of performance data on an individual or group, derived
from a number of stake holders- the stakeholders being the immediate
supervisor, team members, customers, peers, and it.
The 360-degree appraisal provides a broader perspective about an employee’s
performance. In addition, the technique facilitates greater self-development of
the employees. For one’s development, multi-source feedback is highly useful.
It enables an employee to compare his or her perceptions about self with
perceptions of others. Besides, the 360-degree appraisal provides formalized
communication links between an employee and his or her customers. It makes
the employee feel much more accountable to his or her internal or external
customers. The technique is particularly helpful in assessing soft skills
possessed by employees. By design, the 360-degree appraisal is effective in
identifying and measuring interpersonal skills, customer satisfaction, and
team-building skills.
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Performance Interviews :– Performance interviews are another step in the
appraisal process. Once appraisal has been made of employees, the ratters
should discuss and review the performance with the ratees so that they will
receive feedback about where they stand in the eyes of supervisors. Feedback is
necessary to effect improvement in performance, especially when it is
inadequate. Specifically, performance interview has three goals:
i) To change behavior of employees whose performance does not meet
organizational requirements or their own personal goals, (ii) to maintain the
behavior of employees who perform in an acceptable manner, and (iii) to
recognize superior performance behaviors so that they will be continued?
Recommendations for implementing 360-degree appraisal system :–
1. Instrument Issues :–
Ø Item should be directly linked to effectiveness on the job.
Ø Item should focus on specific observable behaviors.
Ø Item should be worded in positive terms rather negative terms.
2. Administration Issues :–
1. Select raters carefully by using a representative sample of people most
critical to the ratee and who had the greater opportunity to observe his or
her performance.
2. Use an adequate number of raters to ensure adequate sampling and to
protect the confidentiality of respondents.
3. Instruct respondents in how the data will be used and ensure
confidentiality.
4. To maintain confidentiality, rater should not indicate their names or other
identifying characteristics and serves should be mailed back directly to
the analyst in a sealed envelop.
5. Alert and train raters regarding rater errors (halo, leniency, attribution
bias).
3. Feedback report :–
1. Separate the results from the various sources. the ratee should see the
average, aggregate results from peers, subordinates, higher level
managers, customers, and all other sources that may be used.
2. Show the rate’s self-rating as compared to rating by others. This enable
the ratee to see how his or her self-perception or similar or different from
others perception.
3. Compare the rate’s rating with other groups.
4. Provide feedback on items as well as scales so ratees can see how to
improve.
4. Feedback sessions :–
1. Use a trained facilitator to provide feedback to ratees.
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2. Involve the ratee in interpret end his or her on results.

3. Provide an overview of the individuals’ strengths and areas for
improvement.
4. Provide feedback on recommendations and help him or her to develop an
action plan.
5. Follow up activities :–
1. Provide opportunities for skill training in how to improve his/her
behaviours.
2. Provide support and coaching to help him/her apply what has been
learned.
3. Overtime, evaluate the degree to which the ratee has changed behaviours.
Potential Appraisal
Potential Appraisal is another powerful tool of employee development.
Whether managers realize it or not, they are stomed to making potential
assessments. Every time a manager recommends or fails to recommend an
employee for a promotion, a potential assessment has, in fact, been made. The
process of assessing the managerial potential of employees deals with the
question of whether or not they have the ability to handle positions in the future
which involve considerably more responsibility than what they have right now.
As long as individuals are viewed as being able to handle increased or different
responsibilities, they would be considered to have potential (either latent or
visible).
Potential appraisal may thus be defined as a process of determining an
employee’s strengths and weaknesses with a view to use this as a predictor of
his future performance. This would help determine the promotabilty of an
individual to a higher position and help chalk out his career plan. The
fundamental difference between reviewing performance and assessing
potential is in the criteria used. In reviewing performance, the criterion used is
what goals the employee achieved and what skills he or she currently possesses
that could be indicators of his or her ability to assume different or more
advanced responsibilities.
It is this, that makes potential appraisal a very crucial & critical area. If an
employee without requisite abilities is promoted to a higher position and does
not perform as per expectations, then it becomes impossible to demote him.
Thus, he is unable to perform at the higher level and becomes a
‘passenger’ in the system. It is rightfully assumed that every individual has
potential, low or high. Many organizations have people whose potential being
low; performance too is not up to the mark. Whilst the question in our minds
hovers around how such people got into the system, the fact remains that they
do not contribute to the organization’s performance.
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A major problem that companies face is tackling the problem children.
They can have the ability to perform but do not perform and do not contribute to
the organization’s performance. This is mainly seen as an attitudinal problem.
Further, these problem children bask in the glory of their potential but are
unable to contribute to their own jobs. Dealing with workhorses too could be
tricky. They can perform very well on routine tasks but have limited potential.
Hence, their promotabilty is difficult and this creates frustrations for the
employees. If promoted, they are unable to perform higher-level jobs and this
too creates problems both for the individuals and the organization. We easily
conclude that ‘stars’ are ideal people to have in organizations. But retaining
these stars could be difficult.
Q. What is Job evaluation? Explain its objectives and principles.What

are the methods of Job evaluation?
Ans. Job evaluation is the process of analyzing and assessing the various jobs
systematically to ascertain their relative worth in an organization. Job is
evaluated on the basis of their content and is placed in the order of their
importance.
“Job evaluation is a process of finding out the relative worth of a job as

compared to other jobs”
The following objectives are derived from the analysis of the above-mentioned
definitions: -
1) To gather data and information relating to job description, job

specification and employee specifications for various jobs in an
organization.
2) To compare the duties, responsibilities and demands of a job with that of

other jobs.
3) To determine the hierarchy and place of various jobs in an organization.
4) To determine the ranks or grades of various jobs.
5) To ensure fair and equitable wages on the basis of relative worth or value of
jobs. In other words equal wages are fixed to the jobs of equal worth or
value.
6) To minimize wage discrimination based on sex, age, caste, region, religion

etc.
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Job Evaluation Process :–
Job Evaluation process

Objectives of Job Evaluation
Job Analysis
Job Description Job Specification
Job Evaluation Programme
Wage Survey
Employee Classification
Methods of Job Evaluation :

Job-evaluation methods are of two categories-Analytical and Non Analytical
Job Evaluation
Analytical Non-Analytical
Point Factor Ranking Job Banding

Method Comparion Method Grading
The job-evaluation process starts defining objectives of evaluation and ends

with establishing wage and salary differentials.
Methods of Job Evaluation :–
Job-evaluation methods are of two categories :–
1. Analytical Job Evaluation
2. Non Analytical Job Evaluation
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1. Analytical :–
1. Point Method
2. Factor Comparison Method
Point Method :– The system starts with the selection of job factors,
construction of degrees for each factor, and assignment of points to each
degree. Different factors are selected for different jobs, with accompanying
differences in degrees and points.
The National Electrical Manufacturing Association (NEMA), USA has suggested
the factors, degrees and point for hourly rated and salaried jobs. The job factors
taken into consideration by NEMA for hourly rated jobs are:
Skill :–
a. Education
b. Experience
c. Initiative & ingenuity
Effort :–
a. Physical demand
b. Mental and / or visual demand
Responsibility :–
a Responsibility for equipment or process
b. Responsibility for materials or product
c. Responsibility for safety of others
d. Responsibility
Job Conditions :–
a. Working conditions
b. Hazards
NEMA – Manual for salaried jobs
Factors :–
Ø Education
Ø Experience
Ø Complexity of duties
Ø Monetary responsibility
Ø Working Condition
Ø Contacts
Ø Types of Supervision
Ø Extent of Supervision
Factor-Comparison Method :– The factor-comparison method is yet another
approach for job evaluation in the analytical group. Under this method, one
begins with the selection of factors; usually five of them- is assumed to be
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constant for all the jobs. Each factor is ranked individually with other jobs. For
example, all the jobs may be compared first by the factor ‘mental requirements.’
the skills factor, physical requirements, responsibility, and working conditions
are ranked. The total points are then assigned to each factor. The worth of a job
is then obtained by adding together all the point values.
Non-Analytical :–
1. Ranking Method
2. Banding Method
3. Job-Grading Method
Ranking Method :– this is the simplest, the most inexpensive and the most
expedient method of evaluation. The evaluation committee assesses the worth
of each job on the basis of its title or on its contents, if the latter is available. But
the job is not broken down into elements or factors. Each job is compared with
others and its place is determined.
The method has several drawbacks. Job evaluation may be subjective, as the
jobs are not broken into factors. It is hard to measure whole jobs.
Ranking is the most straightforward method of work evaluation. Jobs, people,
or even teams can be ranked from the ones adding most value to least value to
the organization. Criteria for the ranking are not made explicit. Jobs rather
than people are easier to rank when there are a large number of people in jobs.
Teams can be ranked in a team-based environment as a substitute for or
addition to the ranking of jobs and people. When a larger number of jobs,
people, or teams are to be ranked, the method of paired comparisons can be
used. With this approach each entity is compared to every other entity in terms
of value to the organization.
Advantages :–
1. Simple to use if there is a small number of jobs, people, or teams to
evaluate
2. Requires little time
3. Minimal administration required
Disadvantages :–
1. Criteria for ranking not understood
2. Increases possibility of evaluator bias
3. Very difficult to use if there is a large number of jobs, people, or teams
to evaluate
4. Rankings by different evaluators are not comparable
5. Distance between each rank is not necessarily equal
6. May invite perceptions of inequity
Banding :– A banding procedure takes place when jobs are grouped together by
common characteristics. Characteristics used to group jobs follow: exempt
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versus nonexempt, professional versus non professional, union versus non
union, key contributor versus non-key contributor, line versus staff, technical
versus non-technical, value-added versus non-value-added, and classified
versus non-classified. Often these groups are then rank ordered and each
group is then placed in a pay band.
Advantages :–
1. Quick and easy procedure
2. Has initial face validity to employees
3. Allows for organizational flexibility
4. Minimal administration required
Disadvantages :–
1. Subtle, but important, differences between groups ignored
2. Subtle, but important, differences within groups ignored
3. May invite inequity perceptions
Classification :– Classification systems define the value of jobs, people, or
teams with written standards for a hierarchy of classification level. Each
classification level may be defined by a number of factors that need to be
present for a job, person, or team to be slotted into a particular classification
level. These factors are usually blended together resulting in one standard for
each classification level.
Advantages :–
1. Jobs, people, and teams can be quickly slotted into the structure
2. Classification levels have face validity for employees
3. Standards to establish value are made explicit
Disadvantages :–
1. Many jobs, people, or teams do not fit neatly into a classification level
2. Extensive judgment is required because standards used to define
each factor are blended together
3. Differences between classification levels may not be equal
4. Creates status hierarchies within organizations
5. Extensive administration required
Job-grading Method :–
As in the ranking method, the job-grading method (or job-classification
method) does not call for a detailed or quantitative analysis of job factors. It is
based on the job as a whole. The difference between the two is that in the
ranking method, there is no yardstick for evaluation, while in the classification
method, there is such a yardstick in the form of job classes or grades. Under the
classification method, the number of grades is first decided upon, and the
factors corresponding to these grades are then determined.
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The advantages of the method are;

I) job grade descriptions are vague and are not quantified;
ii) difficulty in convincing employees about the inclusion of a job in a
particular grade because of vagueness of grade descriptions; and
iii) more job classification schedules need to be prepared because the
same schedule cannot be used for all types of jobs.
Q. What is compensation aim? Explain its components with suitable
example?
Ans. Compensation’ in other terms also called as ‘Employee Remuneration’.
Remuneration is the compensation; an employee receives in return for his
or her contribution to the organization. Remuneration occupies an
important place in the life of an employee. His or her standard of living,
status in the society, motivation, loyalty, and productivity depend upon
the remuneration he or she receives. For the employer too, employee
remuneration is significant because of its contribution to the cost of
production.
Aims of employee compensation :–
a. Attract capable employees to the organization.
b. Motivate them toward superior performance.
c. Retainment of their services over an extended period of time.
The aim of employee compensation can further described as under :–
1. Attract capable employees to the organization :–
Every organization looks for retaining capable employee with the organization.
Infact, retaining an employee is the most difficult function of HR Department.
So for retaining an efficient employee with the organization, he has to be
provided with better compensation. That compensation that he is going to be
provided should include better salary perks, increments, promotions etc. So, a
better compensation package is going to attract the efficient employee who is
very useful to an organization.
2. Motivate them toward superior performance :–
For any employee, money is the main motivator. If every employee of an
organization is provided with better compensation, every body will be
motivated to exhibit superior performance. The better the pay, the better the
performance. The compensation that is going to be provided to the employees
should include better salary, perks, increments, bonus etc. Even though the
remaining components like promotion are going to motivate the employees, but
the basic motivator is better compensation.
3. Retainment of their services over an extended period of time :–
Retainment of the services of an employee with an organization is the most
difficult job of HR. So, the retainment of the employee’s service over a long
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period of time is possible only by providing them with better compensation.
Components of Compensation
The following diagram gives an overview of the components of compensation:
Direct :– Wages, Salaries, Commissions, Bonuses
Indirect :– Insurance plans, Social Assistance, Educational Assistance, Paid
Absences
The Job :– Interesting Duties, Challenge, Responsibility, opportunity for
recognition, feeling of advancement, achievement opportunity
The Environment :– Sound policies, Competent supervision, Congenial
coworkers, Appropriate status symbol, Comfortable working conditions, flexi-
time, Job sharing, Cafeteria compensation
Compensation an overview
External Environment
Internal Environment
Compensation
Financial Non-Financial
Direct Indirect The Job The Env.
Examples / Situations on different types of Compensation:

1. Nirmal and his wife are full of excitement and anticipation as they leave
their home for a shopping trip. Nirmal recently found a job after several
months of unemployment and the paycheck he received today will enable
them to make a down payment on a much-needed refrigerator.
2. Sonia’s anxiety over schedule minor surgery was somewhat relieved. Her
supervisor has assured her that 80% of her medical and hospitalization
costs will be covered by her firm’s health insurance plan.
3. Anup Singh, Executive Director of local YMCA, returns home dead fixed
from job each evening no earlier than 6 O’clock. His salary is small
compared to the salaries of many other local managers who have similar
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responsibilities. Yet, Anup is on exceptionally happy person who believes

that his work with youth, civic leaders, & other members of the
community is extremely important & worthwhile.
4. A large manufacturing firm has employed John for eight years. Although
his pay is not what he would like to be, his job in the accounts payable
department enables him to have contact with some of his best friends. He
likes his supervisor & considers that overall working environment to be
great. John would not trade jobs with anyone he knows.
Wage Policy :–
Wage policy deals with remuneration of work rendered by employees in any
organization. Wages are that compensation given to employees done for work in
return. Wages are given to the worker (blue color) who are the shop floor
employees and salaries are given to executive cadre (white color) according to
Public Policy, a good wage policy should look into the following:
1. An equitable distribution of return between capital & labour.
2. To establish justified wage differentials
3. Equal pay for equal work
4. To base wages on need basis
WAGES :–
Minimum Wages
These are the wages that ensure more than just adequate sustenance, these
ensure certain medical & other essential requirements of individuals catered to
ensure :–
1. 3 extra compensation unit to a family of a simple earning member.
2. 2700 calorie of food intake per member per day.
3. 18 yards of cloth per member and for an unit of four members i.e. 18 x 4 =
72 yards cloth per annum.
4. To ensure land, shelter equivalent of what is provided by industrial
housing scheme.
5. Amenities catered by wages 20% of minimum wage.
LIVING WAGES :–
Ensure more than adequate sustenance to the extent that certain greater
needs like social needs, sanitations, health aspects, and protections from
misfortunes.
FAIR WAGES :–
These are fixed on the basis of :–
1. Productivity of Labour
2. Prevailing level of wages
3. Industry Policy to wages & income distribution in the country.
4. Contribution of industry to the economy
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Q. Write short note on “EMPLOYEE BENEFITS AND SERVICES”
Ans. These are available to all employees based in their membership in the
organization. The purpose of such benefits and services is to retain people in
the organization and not to stimulate them to greater effort and higher
performance.
These benefits are usually known as “fringe benefits”, & the employer offers
these to the employee. The term fringe benefits are as follows – paid vacation,
pension, health insurance plan etc.
There are five categories of services and benefits under the term fringe benefits.
Ø LEGALLY REQUIRED PAYMENTS: - Old age pension, survivor
benefits, disability pension and payments made under the
Workmen’s Compensation Act.
Ø PENSION AND GROUP INSURANCE: -
Ø PAID REST PERIODS, WASTE-UP TIME
Ø PAYMENT FOR TIME NOT WORKED
Ø FESTIVAL BONUS
CLASSIFICATION OF FRINGE BENEFITS: -
Ø Premium Payments :– This is the period of time, a worker has
worked, and payment is based on daily or weekly.
Ø Payment for special duties :– Such as working on grievance
redressal procedures and labour contract negotiations.
Ø Payments for health & Security benefits :– These include
retirement plans, social security payments, Saving plans, Profit
sharing plans, Group Life Insurance etc.
Ø Payment for time not worked :– Which include payment for sick
leave and for time during which an employee is under medical care.
Payments for holiday, vacations, call back time, dressing time,
portal-to-portal time and wet time.
Ø Payment for employee service :– This include Cafeteria subsidies,
union credit, house financing etc.
Ø Other expenditure :– Like holiday bonus, on educational
reimbursements, employee uniforms, work cloths, supper money or
meal allowance etc.
EMPLOYEE SERVICES :–
The various Employee services offered in any organization.
In addition to the benefits, organizations also provide a wealth of services that
employees find desirable. These services are usually provided by the
organization at no cost to employee or at a significant reduction from what
might have to be paid without the organization’s support.
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The employee services include :–

Ø Services related to the types of work performed. This including
subsidies for purchase and upkeep of work, clothing and uniforms
and of various types of tools, used by a worker in the course of his
work;
Ø Eating facilities :– Which include the provision of company
restaurants, cafeterias, canteens, lunchrooms etc.
Ø Transportation facilities :– Like parking lot and bus services
Ø Child Care facilities :– Comprising nurses and day care centers for
children
Ø Housing Services :– It includes company owned housing projects
and subsidies.
Ø Financial and legal services :– This includes sponsoring of loan
funds, credit unions, income tax services, saving plans and group
insurance plans.
Ø Purchasing Services :– This includes company operated stores and
discount on company products and services.
Ø Education Services :– Which include sponsorship for off duty
courses, educational leave, tuition fee, refunds and scholarship for
employees and their children.
Ø Medical Services :– Including plant in firmaries, (clinics and
hospitals, counseling and referrals to community to social services.)
Ø Outplacement Services :– This include, contact with other
employers in the area, help in writing up resumes and secretarial
services.
Ø Flexi time :– The employees are permitted to build up their flexible
workday. It is called flexi time because the workers themselves
determine their own starting and stopping time.
Q. What is performance appraisal? Explain its methods?
Ans. Meaning and Definition :– In simple terms, performance appraisal may
be understood as the assessment of an individual’s performance in a
systematic way, the performance being measured against such factors as job
knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the
alike. Assessment should not be condensed to past performance alone.
Potentials of the employee for future performance must also be assessed.
A formal definition of performance appraisal is :–
It is the systematic evaluations of the individual with respect to his her
performance on the job and his or her potential for development.
Objectives of Performance Appraisal :–
1. To effect promotions based on competence and performance
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2. To confirm the services of probationary employees upon their completing
the probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular
pay scales have not been fixed.
5. To let the employees know where they stand insofar as their performance
is concerned and to assist them with constructive criticism and guidance
for the purpose of their development.
6. To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves
understanding of personal goals and concerns. This can also have the
effect of increasing the trust between the rater and the rate.
7. Finally, performance appraisal can be used to determine whether HR
programmers such as selection, training, and transfers have been
effective or not.
8. Broadly, performance appraisal serves four objectives- I) development
uses, ii) administrative uses/decisions, iii) Organizational
maintenance/objectives, and iv) documentation purposes.
All the approaches to appraisal can be classified into
I) Past-oriented methods
II) Future-oriented methods
Each group has several techniques as shown below:
Past-oriented Methods :–
Ø Rating scales
Ø Checklists
Ø Forced choice method
Ø Forced distribution method
Ø Critical incident method
Ø Behaviorally anchored scales
Ø Field review method
Ø Performance tests and observations
Ø Annual confidential reports
Ø Essay method
Ø Cost accounting approach
Ø Comparative evaluation approach
1. Rating scale :– Rating scales offer the advantages of adaptability,
relatively easy use and low cost. Nearly every type of job can be evaluated
with the rating scale, the only requirement being that the job-performance
criteria should be changed. This way, a large number of employees can be
evaluated in a short time, and the rater does not need any training to use
the scale.
2. Checklist :– Here a checklist of behaviour descriptions is prearranged
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and each person is evaluated against such list. Rater merely record the list
and a separate group can allocate weight ages for each list and finally
arrive at total points or marks obtained.
Advantages :–
1. Checklist reduces subjectively because recording is done by some one else
act as the rater. Rater, at the end put weight ages and adds marks.
2. Comparison possible.
Limitations :–
1. Normally confined to staff of personnel department.
2. Difficult for all jobs.
3. Forced Choice method:
This is a special type of checklist. Rater has to choose between two
statements or more, all of which may be favorable or unfavorable.
Appraisers job is to select that statement which is most appropriate to
describe the employee. Sample statements for a salesman may be framed
as follows:
Ø Slow but steady
Ø Avoid risks
Ø Consult headquarters on important decisions
Ø Meet the customer with confidence
Ø Friendly and informal
Ø Plain speaking.
Here the rater does not know the desirable answer for a particular job.
This is available in the ‘key’ kept confidential either in computer or files.
The answers of rating are fed into the computer and marks obtained with
the help of keys.
Adv :– Since appraiser does not know the “correct answer”, the bias is
minimized.
Limitations :– appraisers as well raters dislike this method, since they
feel they are not taken into confidence by giving them the right answers.
4. Forced distribution method :– One of the errors in rating is leniency-
clustering a large number of employees around a high point on a rating
scale. The forced distribution method seeks to overcome the problem by
compelling the rater to distribute the rates on all points on the rating
scale.
5. Critical incidents method :– The critical incidents method of employee
assessment has generated a lot of interest these days. The approach
focuses on certain critical behaviours of an employee that make all the
difference between effective and non-effective performance of a job.
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6. Behaviourally Anchored Rating Scales (BARS) :–
Behaviourally anchored scales, sometimes called behavioural expectation
scales, are rating scales whose scale points are determined by statements of
effective and ineffective behaviours. They are said to be Behaviourally anchored
in that the scales represent a range of descriptive statements of behaviour
varying from the least to the most effective. BARS have the following features:
1. Areas of performance to be evaluated are identified and defined by the
people who will use the scales.
2. The scales are anchored by descriptions of actual job behaviour that,
supervisors agree, represent specific levels of performance. The result is a
set of rating scales in which both dimensions and anchors are precisely
defined.
3. All dimensions of performance to be evaluated are based on observable
behaviours and relevant to the job being evaluated since BARS are tailor-
made for the job.
4. Since the raters who will actually use the scales are actively involved in the
development process, they are more likely to be committed to the final
product.
The procedure for BARS is usually five stepped.
Ø Generate Critical Incidents :– Persons with knowledge of the job to be
appraised (job holders/supervisors) are asked to describe specific
illustrations (critical incidents) of effective performance behaviour.
Ø Develop Performance Dimensions :– These people then cluster the
incidents into a smaller set (or say 5 or 10) of performance dimensions.
Each cluster (dimension) is then defined.
Ø Reallocate Incidents :– Any group of people who also know the job then
reallocate the original critical incidents. They are given the cluster’s
definitions, and critical incidents, and asked to redesign each incident to
the dimension it best describes. Typically a critical incident is retained if
some percentage (usually 50 to 80%) of this group assigns it to the same
cluster as the previous group did.
Ø Scale of Incidents :– This second group is generally asked to rate (7 or 9
point scales are typical) the behaviour described in the incident as to how
effectively or ineffectively it represents performance on the approximate
dimension
Ø Develop Final Instrument :– Subsets of incidents (usually 6 or 7 per
cluster) used as “behaviour anchors” for the performance dimensions.
BARS were developed to provide results that subordinates could use to improve
performance. Superiors would feel comfortable to give feedback to the ratees.
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Further, BARS help overcome rating errors. Unfortunately, this method too
suffers from distortions inherent in most rating techniques.
Though BARS technique is more time-consuming and expensive than other
appraisal tools, yet it has got certain advantages, such as:
1. A more accurate gauge, since persons expert in the technique does BARS,
the results are sufficiently accurate.
2. Clear Standards :– The critical incidents along the scale help to clarify
what is meant by “extremely good” performance, “average” performance
and so forth.
3. Feedback :– The use of critical incidents may be more useful in providing
feedback to the people being appraised.
4. Independent dimension :– Systematically clustering the critical
incidents into 5 or 6 performance dimensions, helps in making the
dimensions more independent of one another.
5. Rater – Independence :– The technique is not biased by the experience
and evaluation of the rater.
7. Field review method :– This is an appraisal by someone outside the
assessee’s own department, usually someone from the corporate office or
the HR Dept. The outsider reviews employee records and holds interviews
with the ratee and his or her supervisor. The method is primarily used for
making promotional decision at the managerial level. Field reviews are
also useful when comparable information is needed form employees in
different units or locations.
8. Performance Tests and observations :– With a limited number of jobs,
employee assessment may be based upon a test of knowledge or skills. The
test may be of the paper-and-pencil variety or an actual demonstration of
skills. The test must be reliable and validated to be useful. Even then,
performance tests are conducted to measure potential more than actual
performance. In order for the test to the job related, observations should
be made under circumstances likely to be encountered. Practically may
suffer if costs of test development or administration are high.
9. Confidential Records :– Confidential records are maintained mostly in
government departments, though its application in the industry is not
ruled out.
10. Essay method :– In the essay method, the rater must describe the
employee within a number of broad categories, such as (i) the rater’s
overall impression of the employee’s performance, (ii) the profitability of
the employee, (iii) the jobs that the employee is now able or qualified to
perform, (iv) the strengths and weakness of the employee, and (v) the
training and the development assistance required by the employee.
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Although this method may be used independently, it is most frequently
found in combination with others. It is extremely useful in filing
information gaps about the employees that often occur in the better-
structured checklist method.
11. Cost Accounting method/ Human asset accounting method :– This
method evaluates from the monetary returns the employee yields to his
her org. A relationship is established between the cost included in keeping
the employee and the benefit the org derives from him or her. Performance
of the employee is then evaluated based on the established relationship
between the cost and the benefit.
The current value of a firm’s human organization can be appraised by
developed procedures, by undertaking periodic measurements of “key
casual” and “intervening enterprise” variables. They key causal variables
include the structure of an organization’s management policies,
decisions, business leadership, strategies, skills and behaviour. The
intervening variables reflect the internal state and health of an
organization. They include loyalties, attitudes, motivations, and collective
capacity for effective interaction, communication and decision-making.
These two types of variable measurements must be made over several
years to provide the needed data for the computation of the human asset
accounting.
2. Future Oriented Appraisal :–
Ø Management by objectives
Ø 360-Degree appraisal
Ø Psychological appraisals
Ø Assessment centers
1. Management By Objective (MBO) :– This can describe as process where
by the supervisor and subordinate in an organization jointly identifies its
common goal, define each individuals responsibilities and use these measures
as guides for operating the unit and assessing the contribution of each of its
members
Objective :–
Ø To change behaviour and attitude towards getting the job done.
Ø It is management system and philosophy that stress goals rather
than method.
Ø It provides responsibility and accountability.
Ø To meet these needs by providing opportunities for participation in
goal-setting process.
2. Assessment Center Method :– This concept is first started in German
Army to evaluate the performance the soldiers’ .The purpose of this method is
to test candidates in a social situation using a number of assessors and a
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variety of procedures. The most important feature of the assessment center is

job-related stimulations. This stimulation include the characteristics that
managers feel are important for the job. On this basis the evaluators evaluate
the employees.
3. Psychological Appraisals :– Large organizations employ full-time
industrial psychologists. When psychologists are used for evaluations, they
assess and individual’s future potential and not past performance. The
appraisal normally consists of in-depth interviews, psychological tests,
discussions with supervisors and a review of other evaluations. The
psychologists the writes an evaluation of the employee’s intellectual,
emotional, motivational and other related characteristics that suggest
individual potential and may predict future performance.
4. Assessment Centers :– Mainly used for executive hiring, assessment
centers are now being used for evaluating executive or supervisory potential.
As assessment center is a central location where managers may come together
to have their participation in job-related exercise evaluated by trained
observers. The principal idea is to evaluate managers over a period of time, say
one to three days, observing their behaviour across a series of select exercises
or work samples. After recording their observations of ratee behaviours, the
raters meet to discuss these observations. The decision regarding the
performance of each assesses in based upon this discussion of observations.
Self-rating and peer evaluation are also thrown in for final rating.
Use of appraisal data :–
The final step in evaluation process is the use of appraisal data. The data and
information generated through performance evaluation must be used by the
HR dept.
In one way or the other, data and information outputs of performance-
appraisal programme can critically influence the employer-employee reward
opportunities. Specifically, the data and information will be useful in the
following areas in HRM :–
Ø Remuneration administration
Ø Validation of selection programmes
Ø Employee training and development programmes
Ø Promotion, transfer and lay-off decisions
Ø Grievance and discipline programmes
Ø HR planning.
Q. Explain the process of Performance Appraisal?
Ans. The Performance Appraisal Process,
1. Objectives of Appraisal:
2. Establish job Expectation
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3. Design Appraisal programme
4. Appraise performance
5. Performance review
6. Use appraisal Data for appropriate purposes
1. Objectives of Appraisal: :– Objectives of appraisal, as stated above,
include effecting promotions and transfers, assessing training needs,
awarding pay increases, and the like. The emphasis in all these is to
correct the problems. These objectives are appropriate as long as the
approach in appraisal is individual. Appraisal, in future, would assume
systems orientation .In the systems approach, the objectives of appraisal
stretch beyond the traditional ones.
In the systems approach, appraisal aims at improving the performance,
instead of merely assessing it. Towards this end, appraisal system seeks to
evaluate opportunity factors. Opportunity factors include the physical
environment such a s noise, ventilation and lightings, available resources
such as human and computer assistance; and social process such as
leadership effectiveness. These opportunity variables are more important
than individual abilities in determining work performance.
2. Establish Job Expectations :– The second step in the appraisal process
is to establish job expectations. This includes informing the employee
what is expected of him or her on the job. Normally, a discussion is held
with his or her superior to review the major duties contained in the job
description. Individuals should not be expected to begin the job until they
understand what is expected of them.
3. Design appraisal Programme :– Designing an appraisal programme
poses several questions which need answers. They are, (i) Formal versus
informal appraisal; (ii) whose performance is to be assessed? (iii) Who are
the raters? (iv) What problems are encountered? (v) How to solve the
problems? (vi) What should be evaluated? Vii) When to evaluate? Viii)
What methods of appraisal are to be used?
Formal versus Informal Appraisal :–
The first step in designing an appraisal programme is to decide whether the
appraisal should be formal or informal. Formal appraisals usually occur at
specified time periods- once or twice a year. Formal appraisals are most often
required by the organization for the purpose of employee evaluation. Informal
performance appraisal can occur whenever the supervisor feels the need for
communication. For example, if the employee has been consistently meeting or
executing standards, and informal appraisal may be in order to simply
recognize this fact.
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Many organizations encourage a mixture of both formal and informal

appraisals. The formal appraisal is most often used as primary evaluation.
However, the informal appraisal is very helpful for more performance feedback.
Informal appraisals should not take the place of formal performance
evaluation.
Appraisee performance and performance review :–
Answering the following questions can look into these two aspects :–
Whose performance should be rated?
To the question whose performance should be rated, the answer is obvious-
employees. When we say employees, is it individuals or teams? Specifically, the
ratee may be defined as the individual, work group, division, or organization. It
is also possible to define the ratee at multiple levels. For example, under some
conditions, it may be desirable to appraise performance both at the work-group
level for merit pay increases and at the individual level tosses training needs.
Q. What is PFP (Play for performance)? What are determinants of PFP
system?
Ans. The PFP system put more employees pay at risk and do indeed loosen the
relationship between assignments and pay levels. The term PFP is a little mix
leading Determinants of Effective PFP since many incentive systems now
award something other than pay for desired performance.
Systems :–
1. Worker value outcomes (Money and Prices)
2. Outcome is valued relatively to other rewards.
3. Desired performance must be measurable.
4. Worker must be able to control rate a output.
5. Worker must be capable of increasing output.
6. Worker must believe that capability to increase exists.
7. Worker must believe that increased output will result in receiving a
reward.
8. Size of reward to sufficient to stimulate increased effort.
9. Performance measures must be compatible with strategic goals for short
and long terms.
There are many potential problems with PFP system. They are as follows :–
Ø Poor perceived connection between performance and pay.
Ø The level of performance pay is too low relative to basic pay. The cost
of more highly motivating programmes may be prohibitive.
Ø Lack of objective, countable results for most jobs, requiring the use of
performance rating.
Ø Faulty performance appraisals systems, with poor cooperation from
managers, leniency bias in the appraisal and the systems change.
Ø Union resistance to such systems and to change in general.
Ø Poor connection between PFP outcomes and corporate performance
measures.
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How do you select a PFP system?
In designing a PFP system three major questions should be asked.
1. Who should be included in PFP system?
2. How will performance be measured?
3. Which incentives will be used?
1. Who should be included in PFP system: In general all goups should be
included in a PFP system; with one critical condition i.e. The PFP system
should be developed with specific groups and conditions in mind. Many
companies have different PFP systems for various classes of employees.
Some companies have reward systems that are compatible with the
culture that attempts to minimize the distance between people at different
levels in the organizational hierarchy.
2. How will performance be measured: Performance can measured on the
basis of different organizational policies. We will discuss these methods in
the later half of this unit.
3. Which incentive will be used: Incentives are used on the basis of Merit-Pay
plans. They are
1. Use a bonus system in which merit pay is not tied to basic salary.
2. Maintain a bonus ranging from 0 to 20% for lower pay levels and from
0 to 40% for higher pay levels.
3. Take performance appraisal seriously. Hold raters accountable for
the appraisal and provide training.
4. Focus on key organizational factors that affect the pay system.
Information systems and job design must be compatible with the
performance measurement system.
5. Include group and team performance in evaluation. evaluate team
performance wherever appropriate and base part of individual part of
merit pay on the team evaluation.
6. Consider special awards separately from and annual merit merit
allocation that recognizes.
Q. What are the different types of incentives which are given to
employees?
Ans. An Incentive or Reward can be anything that attracts a employee’s
attention, stimulates him to work; Other words it can define as “an incentive
scheme is a plan or programme to motivate individual or group performance.
In other terms, incentives are also called as ‘payments by results’.
Incentives are paid in addition to wages and salaries. Incentives depend upon
productivity, sales, profit, or cost reduction efforts.
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The different incentive schemes :–

There are: (i) Individual incentive schemes, (ii) Group incentive programs and
(iii) other incentive schemes.
Individual incentives are applicable to specific employee performance. Where a
given task demands group effort for completion, incentives are paid to the
group as a whole. The amount is later divided among group members on an
equitable basis and other incentive schemes such as...
Fringe Benefits :– These include such employee benefits as provident fund,
gratuity, medical care, hospitalization, accident relief, health and group
insurance, canteen, uniform, recreation and the like.
Perquisites :– These are allowed to executives and include company car, club
membership, paid holidays, furnished house, stock opinion schemes and the
like. Perquisites are offered to retain competent executives.
Non-monetary benefits :– These include challenging job responsibilities,
recognition of merit, growth prospects, competent supervision, comfortable
working conditions, job sharing, and flextime.
Rewards :– People join organizations expecting rewards. Firms distribute
money and other benefits in exchange for the employee’s availability,
competencies and behaviours.
Types of Rewards :–
1. Membership and seniority-based rewards :– Benefits an employee
receives depend on firm which he or she joins. An MBA taking up a job in
Wipro or Infosys gets more benefits than the boy or girls who joins a state
government undertaking.
In the same firm, a senior employee receives more benefits than his or her
junior employee. Advancement, pay raises, retirement benefits and
perquisites depend on seniority of an employee.
2. Job Status-based Rewards :– Every firm rewards employees for the
status of the jobs they are holding. Firms use job evaluation system, which
helps establish differentials in status of jobs. Status differentials are used
as the basis for establishing salary/wages differentials. Jobs that require
more skill and effort have more responsibility and have difficulty working
conditions would have more value and consequently would be place in
higher pay grades. Firms that do not use job evaluation system still reward
job status based on pay survey information about the labour market.
A supervisor will receive higher rewards than a purchasing assistant as
the job of the former enjoys better status than a later. It has move value to
the organisation (calculated by the job evaluation system or pay survey)
and therefore employees in that job receive more status-based rewards in
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the orgn. High status jobholders are also rewarded with more perquisites.
This incentive programme usually provides monetary rewards, but may
also include a variety of non-monetary rewards or prizes.
Features of incentive plan :–
a. These incentive plans usually consist of both monetary and non-
monetary elements.
b. The timing, accuracy and frequency of incentives are the basis of a
successful incentive plans.
c. These plans should be properly communicated to employees. So this
will encourage individual performance, provide feedback and
encourage redirection.
TYPES OF REWARDS/INCENTIVES
The Rewards are classified into two :–
a. Direct compensation
b. Indirect compensation
Direct Compensation :– It includes the basic salary or wage that the
individual is entitled for his job; this include overtime work, holiday premium,
bonuses based on performance etc.
Indirect Compensation :– It includes protection programmes; pay for time not
worked, services and perquisites. But these are maintenance factors rather
than reward.
Incentive (Structure of incentives)
INTRENSIC EXTRINSIC
• Participation in Direct Indirect Non Financial
Decision Making Compensation Compensation Compensation
• Greater job freedom • Basic wage or • Protection • Preferred

and direction salary Programme furniture
• More responsibility • Overtime and • Pay for time not • Preferred

holiday worked Lunch hours
premiums
• More interest in • Performance • Services • Assigned parking

work sharing perquisities space
• Opportunities • Stock option • Business cards

personal work
• Diversity of • Own secretary

activities
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UNIT – IV
Q. What is Industrial Relation? Who are the parties related to the
Industrial Relation?
Explain its features & scope?
Explain the process of Industrial Relation?
Ans. DEFINITION :–
Industrial Relations is used to denote the collective relationships between
management and the workers.
In the words of Lester :– “Industrial relations involve attempts at arriving at
solutions between the conflicting objectives and values; between the profit
motive and social gain; between discipline and freedom, between authority and
industrial democracy; between bargaining and co-operation; and between
conflicting interests of the individual, the group and the community”
By J. Henry Richardson :–
“Industrial relations is an art, the art of living together for purposes of
production. The parties while working together learn this art by acquiring the
skills of adjustment.
In simple words, industrial relations are the outcome of the ‘employment
relationships’ in industry, i.e. between employers and labour. The government
of a nation or state influences these relations to a great extent.
There are three main parties in industrial relations :–
(i) Workers and their Organisations :– The personal characteristics of
workers, their culture, educational attainments, qualifications, skills,
attitude towards work, etc. play an important role in industrial relations.
Trade unions are formed for safeguarding the economic and social
interests of the workers. They put pressure on the management for the
achievement of these objectives.
(ii) Employers and their Organisation :– The employers are a very important
variable in industrial relations. They provide employment to workers and
try to regulate their behaviour for getting high productivity from them. In
order to increase their bargaining power, employers in several industries
have organised employers’ associations. These associations put pressure
on the trade unions and the Government.
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(iii) Government :– The Government or State exerts an important influence
on industrial relations through such measures as providing employment,
intervening in working relationships. and regulating wages, bonus and
working conditions through various laws relating to labour. The
Government keeps an eye on. Both the trade unions and employers’
organisations to regulate their behaviours in the interest of the nation.
The overall environment of industrial relations
INDUSTRIAL SCENARIO
NATIONAL ENVIRONMENT
SOCIO-ECONOMIC FACTORS
T P
E O
C
H
L
N Employees Employer I
O T
L I
O
C
G
I A
C L
A
L F
F
A
A Government C
C T
T O
O
R
R
S MARKET FACTORS S
Three main parties

Ø The Employees’ or the Workers’ Organisation (Trade Union)
Ø The Employers’ Organisation
Ø The State or Government
Parties to Industrial Relations
Trade Union Employers' Organisation Government
Feaures of Industrial Relations.

Industrial relations are born out of employment relationship in an industrial
setting. Without the existence of two parties i.e. labour and management, this
relationship cannot exist. It is the industry, which provides the environment for
industrial relations.
Industrial relations are characterized by both conflict and co-operation. So the
focus of industrial relations is on the study of the attitudes, relationships,
practices and procedures developed by the contending parties to resolve or at
least minimise conflicts.
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(III) As the labour and management do not operate in isolation but are a part of
the large system, so the study of industrial relations also includes vital
environmental issues like technology of the workplace, country’s socio-
economic and political environment, nation’s labour policy, attitude of
trade unions, workers and employers.
Industrial relations also involve the study of conditions conducive to the
labour, management co-operation as well as the practices and procedures
required to elicit the desired co-operation from both the parties.
Industrial relations also study the laws, rules, regulations, agreements,
awards of court, customs and traditions, as well as policy framework laid
down by the government for eliciting co-operation between labour and
management. Besides this, it makes an in-depth analysis of the
intervening patterns of the executive and judiciary in the regulation of
labour-management relation.
Scope of Industrial Relations :–
The scope can be studied under three main categories. These categories are :–
Ø Promotion and development of healthy labour-management relations
Ø Maintenance of industrial peace and avoidance of industrial strife and
Ø Development of industrial democracy.
(1) Development of Healthy Labour-Management Relations :– The
promotion of healthy labour management relations pre-supposes:
The existence of strong, well-organised, democratic and responsible trade
unions and associations of employers.
The spirit of collective bargaining and willingness to take recourse to
voluntary arbitration.
Welfare work, whether statutory or non-statutory, provided by the state,
trade unions and employers create, maintain and improve labour
management relations and thereby contribute to industrial peace.
(2) Maintenance of Industrial Peace :– Industrial peace pre-supposes the
absence of industrial strife. Industrial peace is essential for increased
productivity and harmonious labour-management relations. .
(3) Development of Industrial Democracy :– The idea of industrial
democracy states the labour should have the right to be associated with
the management of an industry. To achieve this objective, the following
techniques are usually employed:
Establishment of the Shop Councils and Joint Management Councils at
the floor and plant level.
(a) Recognition of Human Rights in Industry
(b) Increase in Labour Productivity
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(c) The availability of proper work environments necessary so that
the worker can effectively carry out his assignment, as it is the
environment, which stimulates or depresses, improves or
destroys the relations between labour and management.
Contemporary issues in Industrial Relations :–
(i) Low Wages :– Low wages have been a perennial(permanent) problem and
have been a source of industrial dispute for years despite the existence of
Payment of Wages Act and the Minimum Wages Act. The acts do not seem
to be solving the problem due to their poor implementation. In many of the
factories, workers are still given wages below subsistence level, which
leads to high degree of dissatisfaction and subsequent decrease in
productivity. In many industries, the minimum wages have not been
revised at par to compensate for it.
(ii) Employment of Women :– In the Indian cultural setup, the employment
of women is a major problem even though things have started changing in
the recent times. There are special provisions regarding the employment
of women in the Factories Act, which prohibit employment of women
during the night shift and also on heavy machinery. Under the Equal
Remuneration Act, women are entitled to equality of wages at par with the
male workers. Some employers don’t follow the above provisions in letter
and spirit and continue to exploit the women workers by virtue of their
strong position and because of mass illiteracy and superstition among the
women workers.
(iii) Ignorance and illiteracy :– Various labour laws that have beer made
would be beneficial to the workers if implemented properly. For this it is
important that the workers themselves understand the underlying
principles and provisions of the law and demand whatever is due to them.
With high rate of ignorance and illiteracy prevailing among the workers, it
can be imagined how many of them know about the laws. It is here that the
exploitation of workers takes place and legal provisions are ignored totally.
(iv) Industrial Housing :– Another burning issue in the industrial relations
field is that of accommodation to the industrial employees. Here the
problem is that the firms are not able to provide accommodation to the
employees and further that the house rent allowance (HRA) that they
provide is not sufficient to keep pace with the ever -rising demands of the
landlords
(v) Child Labour :– The law requires that no child below the age of 14 is
allowed to work in any factory and the adolescent is not allowed to work in
hazardous conditions. The Supreme Court has passed a ruling strictly
prohibiting the employment of children in any kind of factory. But still one
finds instances of violation of law.
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Q. What is an industrial dispute? What are the factors responsible for

the disputes between management & workers and their solution?
According to Section 2(k) of the Industrial Disputes Act, 1947 “industrial
dispute” is defined as,
“Any disputes or differences between employers and employers, or between
employers and workmen, or between workmen and workmen, which is
connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person.”
The definition identifies three parties to disputes. They are :–
(i) Employers and Employers
(ii) Employers and Workmen
(iii) Workmen and Workmen
Industrial dispute is disagreement and difference between two disputants,
namely, labour and management. This disagreement or difference could be on
any matter concerning them individually or collectively. It must be connected
with employment or non-employment or with the conditions of labour.
The factors responsible for the disputes between management & workers.
Economic Cause :– These causes may be classified as:
Demand for increase in wages on account of increase in all-India Consumer
Price Index for Industrial Workers.
Demand for higher gratuity and other retirement benefits.
Demand for higher bonus.
Demand for certain allowances such as:
House rent allowance
Medical allowance
Night shift allowance
Conveyance allowance
Demand for paid holidays.
Reduction of working hours.
Better working conditions, etc.
Political Causes :– Various political parties control Trade unions in India. In
many cases, their leadership vests in the hands of persons who are more
interested in achieving their political interests rather than the interests of the
workers.
Personnel Causes :– Sometimes, industrial disputes arise because of
personnel problems like dismissal, retrenchment, layoff, transfer, promotion,
etc.
lndiscipline :– Industrial disputes also take place because of indiscipline and
voilence on the part of the workforce. The managements to curb indiscipline
and voilence resort to lock -outs
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Misc. causes :– Some of the other causes of industrial disputes can be:
a. Workers’ resistance to rationalisation introduction of new machinery and
change of place
b. Non- recognition of trade union
c. Rumours spread out by undesirable elements
d. Working conditions and working methods
e. Lack of proper communication
f. Behaviour of supervisors
g. Inter trade union Rivalry etc.
Measures to improve industrial Relations :–
The following measures should be taken to achieve good industrial relations:–
(i) Progressive Management Outlook :– There should be progressive
outlook of the management of each industrial enterprise. It should be
conscious of its obligations and responsibilities to the owners of the
business, the employees, the consumers and the nation. The
management must recognize the rights of workers to organize unions to
protect their economic and social interests.
(ii) Strong and Stable Union :– A strong and stable union in each industrial
enterprise is essential for good industrial relations. The employers can
easily ignore a weak union on the plea that it hardly represents the
workers. The agreement with such a union will hardly be honoured by a
large section of workforce. Therefore, there must be a strong and stable
union in every enterprise to represent the majority of workers and
negotiate with the management about the terms and conditions of service.
(iii) Atmosphere of Mutual Trust :– Both management and labour should
help in the development of an atmosphere of mutual cooperation,
confidence, and respect. Management should adopt a progressive outlook
and should recognize the rights of workers. Similarly, labour unions
should persuade their members to work for the common objectives of the
organization. Both the management and the unions should have faith in
collective bargaining and other peaceful methods of settling disputes.
(iv) Mutual Accommodation :– The employers must recognize the right of
collective bargaining of the trade unions. In any organization, there must
be a great emphasis on mutual accommodation rather than conflict or
uncompromising attitude. One must clearly understand that conflicting
attitude does not lead to amicable labour relations; it may foster union
militancy as the union reacts by engaging in pressure tactics. The
approach must be of mutual “give and take rather than “Take or leave.”
The management should be willing to co-operate rather than blackmail
the workers.
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(v) Sincere Implementation of Agreements :– The management should

sincerely implement the settlements reached with the trade unions. The
agreements between the management and the unions should be enforced
both in letter and spirit. If the agreements are not implemented then both
the union and management stop trusting each other. An environment of
uncertainty is created. To avoid this, efforts should be made at both ends
to ensure the follow up of the agreements.
(vi) Workers’ Participation in Management :– The participation of workers
in the management of the industrial unit should be encouraged by making
effective use of works committees, joint consultation and other methods.
This will improve communication between managers and workers,
increase productivity and lead to greater effectiveness.
(vii) Sound Personnel Policies :– The following points should be noted
regarding the personnel policies. The policies should be:
Ø Formulated in consultation with the workers and their
representatives if they are to be implemented effectively.
Ø Clearly stated so that there is no confusion in the mind of anybody.
Ø Implementation of the policies should be uniform throughout the
organisation to ensure fair treatment to each worker.
(viii) Government’s Role :– The Government should play an active role for
promoting industrial peace. It should make law for the compulsory
recognition of a representative union in each industrial unit. It should
intervene to settle disputes if the management and the workers are unable
to settle their disputes. This will restore industrial harmony.
Q. Write a short note on Dispute Resolution.
Why do disputes arise?
Ans. Disputes arise because of perceived differences in interests. That is, if
there is an interaction between two or more people or companies, and one
person believes that his or her interests are not identical to those of the others,
there will be a dispute. People or companies who have a contractual relation or
who are engaged in a dispute are traditionally referred to as “parties”.
The best way to prevent disputes from arising is to make sure that each party
knows what the other party wants and to capture in clear, unambiguous
writing any agreements between the parties. Increasing each party’s knowledge
about the other decreases the chance of a dispute arising because of a
misunderstanding. Similarly, relying on business practices that are
universally used in a certain industry or region will reduce the number of
disputes.
Disputes can easily arise when the parties don’t know each other well, when
they are engaging in new forms of business, or when they come from different
cultures.
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Disputes that do arise can be resolved in any of the following ways :–
1. One or more parties agree to accept a situation in which their interests are
not fully satisfied.
2. The parties submit the situation to an impartial person or panel, who
decides which interests should be satisfied and which should not.
Usually, the impartial person or panel will refer to pre-existing rules or
guidelines that had been agreed by all parties or were at least known to all
parties. Often these rules are what we call laws.
3. The perceptions of one or more parties change, so that there is no longer a
perceived difference in interests.
4. The interests of one or more parties change, so that there is no longer a
difference in interests.
The Three Factors :–
At this point, it is useful to recognize that there are three independent
fundamental factors that affect the resolution of disputes :–
Interests
Power Rights
Interests :– Are defined by a party in an interaction and are the things that that
party is interested in (money, recognition, physical goods, or whatever).
Power :– Is given by a combination of external circumstances and self-
confidence.
Rights :– Are given by an external framework, for example national laws or
contracts between parties.
Thus there are connections between interests, power, and rights, and in real
life there are usually trade-offs between the three factors.
Interests
Power Rights
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Methods of Dispute Resolution

Negotiation :– Is a method of dispute resolution largely based on power; it often
results in solutions of type A above.
Arbitration and Litigation :– Are methods largely based on rights; they result
in solutions of type B above. The advantage of arbitration is that parties can
select the judges and, to some extent, the rules to be used. For more
information, see Constituting Arbitral Tribunals, International Commercial
Arbitration Primer, and Dispute Resolution in Telecommunications.
Non-binding arbitration :– is a way of obtaining impartial information
regarding a situation; it often results in solutions of type C above.
Mediation :– Is a way of finding out if parties’ interests can be broadened so
that a true common ground can be found; it often results in solutions of type D
above.
Q. What is Employee Discipline? Explain the Disciplinary procedure?
Ans. Definition :– According to Richard D. Calhoon, “Discipline is the force
that prompts individuals or groups to observe rules, regulations, standards
and procedures deemed necessary for an organization.”
Therefore discipline means securing consistent behaviour in accordance with
the accepted norms of behaviour..
Nature of discipline :–
Discipline involves the following three things.
(I) Self-discipline.
(II) Orderly behaviour.
(III) Punishment
Self-discipline implies that a person brings the discipline in himself with a
determination to achieve the goals that he has set for himself in life.
Orderly behaviour refers to discipline as a condition that must exist for an
orderly behaviour in the organization.
Punishment is used to prevent indiscipline. When a worker goes astray in his
conduct, he has to be punished for the same and the rcoccurence of it must be
prevented.
Discipline can either be positive or negative.
Ø Negative Discipline
Ø Positive Discipline
Positive discipline :– Involves creation of an atmosphere in the organisation
whereby employees willingly conform to the established rules and regulations.
Positive discipline can be achieved through rewards and effective leadership.
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Negative Discipline :– Under negative discipline, penalties are used to force
the workers to obey rules and regulations. In other words, workers try to adhere
to rules and regulations out of fear of warnings, penalties and other forms of
punishment. This approach to discipline is called negative or punitive
approach.
Some of the symptoms of general indiscipline can be :–
1. Change in the normal behaviour
2. Absenteeism
3. Increased grievances
4. Lack of concern for performance
5. Go slow
6. Disorderly behaviour
7. Lack of concern for job
8. Late coming etc
Causes of Indiscipline :–
The common causes of indiscipline are as follows :–
(i) Unfair Management Practices :– Management sometimes indulges in
unfair practices like:
Ø Wage discrimination
Ø Non-compliance with promotional policies and transfer policies
Ø Discrimination in allotment of work
Ø Defective handling of grievances
Ø Payment of low wages
Ø Delay in payment of wages
Ø Creating low quality work life etc.
(ii) Absence of Effective Leadership :– Absence of effective leadership
results in poor management in the areas of direction, guidance,
instructions etc. This in turn, results in indiscipline.
(iii) Communication Barriers :– Communication barriers and absence of
human approach on the part of superiors result in frustration and
indiscipline among the workers. The management should clearly
formulate the policies regarding discipline.
(iv) Inadequate attention to personnel Problems :– Delay in solving
personnel problems develops frustration among individual workers. The
management should be proactive so that there is no discontent among the
workers. It should adopt a parental attitude towards its employees.
(v) Victimization :– Victimization of subordinate also results in indiscipline.
The management should not exploit the workers. It is also in the long-term
interest of the management to take care of its internal customers
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(vi) Absence of Code of Conduct :– This creates confusion and also provides
chance for discrimination while taking disciplinary action.
Different forms of indiscipline include :–
(i) Inconsistent behavior of an employee and deviation from the
standard behaviour.
(ii) Unsafe behavior of the employee.
(iii) Immoral action of the employee.
(iv) When employee is abusive, disturbs the peace and is negligent
towards his duties.
Q. What is employee Grievance? Explain its forms.
Explain the procedure of Grievance.
Ans. Definition :– According to Michael Jucius, “ A grievance can be any
discontent or dissatisfaction, whether expressed or not, whether valid or not,
and arising out of anything connected with the company that an employee
thinks, believes, or even feels as unfair, unjust, or inequitable.”
A grievance means any discontentment or dissatisfaction in an employee
arising out of anything related to the enterprise where he is working. It may not
be expressed and even may not be valid.
It arises when an employee feels that something has happened or is going to
happen which is unfair, unjust or inequitable. Thus, a grievance represents a
situation in which an employee feels that something unfavourable to him has
happened or is going to happen. In an industrial enterprise, an employee may
have grievance because of long hours of work, non-fulfillment of terms of
service by the management, unfair treatment in promotion, poor working
facilities, etc.
A grievance may take any of the following forms :–
Ø Factual,
Ø Imaginary,
Ø Disguised.
Factual :– When an employee is dissatisfied with his job, for genuine or factual
reasons like a breach of terms of employment or any other reasons that are
clearly attributed to the management, he is said to have a factual grievance.
Imaginary :– When an employee’s grievance or dissatisfaction is not because of
any factual or valid reason but because of wrong perception, wrong attitude or
wrong information he has. Such a grievance is called an imaginary grievance.
So be careful your grievances could be very much imaginary!
Disguised :– An employee may have dissatisfaction for reasons that are
unknown to himself. This may be because of pressures and frustrations that an
employee is feeling from other sources like his personal life.
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Forms of Grievances
Factual Imaginary Disguised
A manager can know about the problems even before they turn into actual
grievances through several means such as:
Ø Exit interviews
Ø Suggestions boxes
Ø Opinion surveys
Ø Open door policy.
(a) Exit interview :– Employees usually quit organizations due to
dissatisfaction or better prospects elsewhere. Exit interviews, if conducted
carefully, can provide important information about employees’
grievances. This can help the management to gather feedback and to
genuinely incorporate feedback. The management should carefully act
upon the information drawn from such employees .It should be careful
that the discontentment is reduced so that no more employees quit the
organization because of similar reasons.
(b) Gripe Boxes :– These are boxes in which the employees can drop their
anonymous complaints. They are different from the suggestion boxes in
which employees drop their named suggestion with an intention to receive
rewards It is normally said that if you want to progress in life, you should
be close to critics.
(c) Opinion Survey :– The management can be proactive by conducting
group meetings, periodical interviews with employees, collective
bargaining sessions etc. through which one can get information about
employees’ dissatisfaction before it turns into a grievance.
(d) Open-door Policy :– Some organisation extend a general invitation to
their employees to informally drop in the manager’s room any time and
talk over their grievances.
Summarising the identification of grievances.
Identifying Grievances
Exit Interview Gripe Boxes Opinion Surveys Open door policy
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Causes of grievances :–
The causes of grievances may be broadly classified into the following
categories:
(1) Grievances resulting from working conditions
(i) Improper matching of the worker with the job.
(ii) Changes in schedules or procedures.
(iii) Non-availability of proper tools, machines and equipment for doing
the job.
(iv) Unreasonably high production standards.
(v) Poor working conditions.
(vi) Bad employer – employee relationship, etc.
(2) Grievances resulting from management policy
(i) Wage payment and job rates.
(ii) Leave.
(iii) Overtime.
(iv) Seniority and Promotional.
(v) Transfer.
(vi) Disciplinary action.
(vii) Lack of employee development plan.
(viii) Lack of role clarity.
(3) Grievances resulting from personal maladjustment
(i) Over – ambition.
(ii) Excessive self-esteem or what we better know as ego.
(iii) Impractical attitude to life etc.
Effects of Grievances :–
1. Frustration
2. Alienation
3. Demotivation
4. Slackness
5. Low Productivity
6. Increase in Wastage & Costs
7. Absenteeism
8. In discipline
9. Labour unrest
A grievance procedure :–
It is advisable to set up an effective grievance procedure in the organization.
The procedure should be flexible enough to meet the requirements of the
organization. It should be simple so that an average employee is able to
understand it. Though such a procedure will vary in different organizations, yet
the following principles should be observed while laying down a procedure:
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(1) A grievance should be dealt with in the first instance at the lowest level:
that is, an employee should raise his grievance with his immediate
superior. It may be simple to settle it on the spot and that will be the end of
it. Even if it cannot be settled at that level, the man’s superior will know
what is happening. This is necessary not only to maintain his authority,
but also to prevent him from being aggrieved, as he will certainly be, if he is
by-passed and hears of the complaint from his own superior.
(2) It must be made clear to the employee what line of appeal is available. If he
cannot get satisfaction from his immediate superior, he should know the
next higher authority to which he can go.
(3) Since delay causes frustration and tempers may rise and rumours spread
around the work, it is essential that grievances should be dealt with
speedily. As it is said that a stitch in time saves nine, similarly the
problems of the employees should be taken care of by the management
least it should become a major for the management.
(4) The grievance procedure should be set up with the participation of the
employees and it should be applicable to all in the organisation. The
policies and rules regarding grievances should be laid down after taking
inputs from the employees and it should be uniformly applicable to all in
the organisation. It should be agreed that there would be no recourse to
the official machinery of conciliation unless the procedure has been
carried out and there is still dissatisfaction, and moreover, there must be
no direct action on either side, which might prejudice the case or raise
tempers while the grievance is being investigated.
Open door policy :–
Under this policy, any employee can take his grievance to the chief boss and
talk over the problem. As the name suggests, the management keeps its doors
open for the employees to share their problems. It is said that this policy can
remove the cause of grievance quickly. Though this policy appears to the
attractive, it has some prerequisites.
The open door policy is workable only in small organizations. In big
organizations, the top management does not have the time to attend to
innumerable routine grievances daily that is the work of lower-level mangers.
Under this policy, the front-line supervisor who should be the first man to know
about the grievances of his subordinates is by passed. This provokes him in two
ways. First, he thinks the man who skipped him is disrespectful. Secondly, he
fears that he will incur his superior’s displeasure because of his failure to
handle his subordinates will interpret this.
Step-Ladder Procedure :–
Under the step-ladder procedure, the employee with a grievance has to proceed
step by step unless he is able to redress his grievance. According to the Model
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Grievance Procedure, an aggrieved employee shall first present his grievance

verbally in person to the officer designated by the management for this
purpose. An answer shall be given within 48 hours. If he is dissatisfied with the
answer, the worker will present his grievance to the head of the department,
who will give his answer within 3 days. If the worker is dissatisfied with the
answer, he may ask that his grievance should be referred to the Grievance
Committee, which shall make its recommendations within 7 days to the
manger. The management must implement common recommendations of this
committee. A dissatisfied worker can apply to the management for a revision of
its decision within on week’s time.
Let us summarise the procedure in the form of a diagram.
Step No. 1
Filling of Written
Grievance
Step No. 2
Supervisor or
Foreman
Step No. 3
Head of
Department
Step No. 4
Joint Grievance
Committee
Step No. 5
Chief Executive
Last Step
Voluntary
Arbitration
SETTELEMENT
Step - ladder Grivevance Procedure.

MODEL GRIEVANCE PROCEDURE
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ESSENTIALS OF A GRIEVANCE PROCEDURE :–
A grievance procedure should incorporate the following features :–
1. Conformity with existing legislation :– The procedure should be designed
in conformity with the existing statutory provisions. Where practicable,
the procedure can make use of such machinery as the law might have
already provided for.
2. Acceptability :– Everybody must accept the grievance procedure. In order
to be generally acceptable, it must ensure the following:
Ø A sense of fair-play and justice to the worker,
Ø Reasonable exercise of authority to the manager, and
Ø Adequate participation of the union.
3. Simplicity :– The following points should be noted in this regard:
Ø The procedure should be simple enough to be understood by every
employee.
Ø The steps should be as few as possible.
Ø Channels for handling grievances should be carefully developed.
Ø Employees must know the authorities to be contacted at various
levels.
Ø Information about the procedure should be thoroughly disseminated
among all employees through pictures, charts, diagrams, etc.
4. Promptness :– Speedy settlement of a grievance is the cornerstone of a
sound personnel policy. It should be remembered that justice delayed is
justice denied. The procedure should aim at a rapid disposal of the
grievance. This can be achieved by incorporating the following feature in
the procedure :–
(a) As far as possible, grievances should be settled at the lowest level
(b) No matter should ordinarily be taken up at more than two levels, i.e.
normally there should be only one appeal.
(c) Different types of grievances may be referred to appropriate
authorities.
(d) Time limit should be placed at each step and it should be rigidly
followed at each level.
5. Training :– In order to ensure effective working of the grievance
procedure, it is necessary that supervisors and the union representatives
should be given training in working of the grievance procedure. All the
policies should be conveyed to the concerned parties.
6. Follow-up :– The personnel department should review the working of the
grievance procedure periodically and necessary changes should be
introduced to make it more effective. This is generally ignored by the
organizations. A regular follow up of the system increase the faith of the
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people in the system. Therefore it is necessary that the grievance

procedure should be reviewed whenever it is so required.
Q. How & why workers participate in a management?
Ans. Workers’ Participation in Management
The managers, workers and industrial relations experts interpret the term
“workers’ participation in management” in different ways.
Workers’ participation in management means giving scope for workers to
influence the managerial decision-making process at different levels by various
forms in the organisation. The principal forms of workers’ participation are
information sharing, joint consultation, suggestion schemes, etc.
Scope :–
1. InformationSharing :– The management ultimately takes the decision.
Workers are given an opportunity to influence decisions, they play a
passive role in the process of decision-making, but have no final say in the
matter.
2. Sharing Decision-Making :– This school holds that participation of an
individual in something occurs when he actively takes part. The focus
here is that there must exist taking part actively. Workers sit with the
representatives of management to take important decisions particularly
on matters affecting the workers. Workers may be members of Works
Committees, Joint Management Council, etc. along with the
representatives of management. The decisions are taken through mutual
discussions between the representatives of the workers and those of the
management.
3. Self-control :– The essential feature of self-control (or management) is that
management and workers are not visualised as two distinct groups but as
active members with equal voting rights. Participation in Yugoslavia is an
example of self-control.
Significance of Workers’ Participation
The need of workers’ participation is felt because of the following reasons :–
1. Higher Productivity :– The increased productivity is possible only when
there exists fullest co-operation between labour and management. It has
been found that poor labour management relations do not encourage the
workers to contribute anything more than the minimum desirable to
retain their jobs. Thus participation of workers in management is
essential to increase industrial productivity.
2. Greater Commitment :– An important prerequisite for forging greater
individual commitment is the individual’s involvement and opportunity to
express himself. Participation allows individuals to express themselves at
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the work place rather than being absorbed into a complex system of rules,
procedures and systems. If an individual knows that he can express his
opinion and ideas, a personal sense of gratification and involvement takes
place within him.
3. Reduced Industrial Unrest :– Industrial conflict is a struggle between
two organised groups, which are motivated by the belief that their
respective interests are endangered by the self-interested behaviour of the
other. Participation cuts at the very root of industrial conflict. It tries to
remove or at least minimise the diverse and conflicting interests between
the parties, by substituting it with cooperation, homogeneity and common
interests. Both sides are integrated and decision arrived are mutual rather
than individual.
4. Improved Decisions :– Because of the existence of barriers to the upward
flow of information in most enterprises, much valuable information
possessed by subordinates never reaches their managers. Participation
tends to break down the barriers, and makes the information available to
managers. To the extent such information alters the decisions, the quality
of decisions is improved.
5. Human Resource Development :– Participation provides education to
workers in the management of industry. It fosters initiative and creativity
among them. It develops a sense of responsibility. Informal leaders get an
opportunity to reinforce their position and status by playing an active role
in decision-making and by inducing the members of the group to abide by
them.
6. Reduced Resistance to Change it should be noted that changes are
randomly introduced from above without explanation. Subordinates tend
to feel insecure and take counter measures aimed at sabotage of changes.
But when they have participated in the decision making process, they
have had an opportunity to be heard. They know what to expect and why.
Their resistance to change is reduced.
Q. Write a short note on Employee empowerment.
Employee Empowerment
Ans. The meaning of empowerment is to make a person eligible for discharging
his duties in a socially desirable manner so that he can get his proper
entitlement, status and recognition.
In other words true meaning of empowerment is to give the person best
guidelines and directions. Empowerment does not mean just giving authority.
In true sense empowerment is participation of people in decision-making.
In the context of industrial relations, empowerment can be practiced through
the following committees and councils
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These are also commonly referred to as the forms of Participation-:

Ø Works Committee
Ø Joint Management Councils also known as JMC
Ø Worker Director
Ø Shop and Joint Councils
Ø Quality Circle
(1) Works Committees (1947) :– The Industrial Disputes Act, 1947, provides
for the setting up of bipartite works committees as a scheme of workers
participation in management that consist of representatives of employers
and employees.
The Act provides for these bodies in every undertaking employing 100 or
more workmen.
The aim of setting up of these bodies is to promote measure for
maintaining harmonious relations in the workplace and to sort out
differences of opinion in respect of matters of common interest to
employers and employee. Now that is an important role!
The Bombay Industrial Relations Act, 1946, also provides for these bodies,
but under the provisions of this Act they can be set up only in units that
have a recognised union and they are called joint committees. The workers
directly elect their representatives where there is a union.
Their functions include discussion of conditions of work like :–
Ø Lighting
Ø Ven tilation
Ø Temperature
Ø Sanitation
Ø Water supply for drinking purpose
Ø Provision of canteens
Ø Medical services
Ø Safe working conditions
Ø Administration of welfare funds
Ø Educational and recreational activities
Ø Encouragement of thrift and savings.
(2) Joint Management Councils (JMCS 1958)
The Second Five-Year Plan recommended the setting up of joint councils of
management consisting of representatives of workers and management.
The Government of India deputed a study group (1957) to study the schemes of
workers’ participation in management in countries like UK, France, Belgium
and Yugoslavia. The report of the study group was considered by the Indian
Labour Conference (ILC) in its 15 session in 1957 and it made certain
th
recommendations.
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a. Workers participation in management schemes should be set up in
selected undertakings on a voluntary basis.
b. A sub-committee consisting of representatives of employers, workers
and government should be set up for considering the details of
workers’ participation in management schemes.
It was also recommended that the committee should select the undertakings
where workers’ participation in management schemes would be introduced on
an experimental basis.
The objectives of Joint Management Councils are as follows :–
(i) To increase the association of employers and employee thereby promoting
cordial industrial relations;
(ii) To improve the operational efficiency of the workers;
(iii) To provide welfare facilities to them
(iv) To educate workers so that they are well prepared to participate in these
schemes; and
(v) To satisfy the psychological needs of workers.
The requirements are :–
(i) The unit must have 500 or more employees
(ii) It should have a fair record of industrial relations
(iii) It should have a well-organised trade union
(iv) The management and the workers should agree to establish JMCs
(v) Employers (in case if private sector) should be members of the leading
Employers’ Organisation
(vi) Trade Union should be affiliated to one of the Central Federations.
Functions :–
The following are the important functions of JMCs :–
a. To be consulted on matters like standing orders, retrenchment,
retionalisation, closure, reduction of operations etc.
b. To receive information to discuss and offer suggestions.
c. To shoulder administrative responsibilities like maintaining welfare
measures, safety measures, training schemes, working hours, payment of
rewards etc.
(3) Worker Directors (1970) :– After the nationalisation of banks, the
Government advised all nationalised banks to appoint employee directors
to their Boards – one representing employees and the other representing
officers – having tenure of 3 years.
The scheme required verification of Trade Union Membership,
identification of the representative union and the selection of a worker
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director who is chosen out of a panel of three names furnished to the Govt.
by the representative union within a prescribed period.
(4) Shop and Joint Councils (1975 and 1977) :– The 1975 scheme has come
into existence after the emergency has declared in June 1975.It has
envisaged the setting up of shops councils at the shop/departmental level
and joint councils at the enterprise level.
These were to be introduced in manufacturing and mining units
employing 500 or more workers – whether in public, private or co-
operative sector.
It was decided that the Council shall function for two years and will meet
regularly to discuss matters relating to the following factors:
Ø Safety
Ø Discipline
Ø Physical working conditions
Ø Welfare measures
Ø Productivity norms and targets
Ø Absenteeism
Ø Flow of communications etc.
It was also decided that the joint Council having a tenure of 2 years – shall be
constituted for an enterprise consisting of representatives of both the
management and the labour.
The Chief Executive shall be the Chairman of the Council and the
representatives of workers shall nominate the Vice Chairman.
The Council will meet once in a quarter to discuss matter that remains
unsolved by shop councils including:
Ø Schedules of working hours,
Ø Holidays,
Ø Optimum use of material,
Ø Productivity standards,
Ø Training facilities to develop skills of workers,
Ø Awards to workers for creative suggestions,
Ø General health,
Ø Safety and welfare of workers, etc.
(5) Quality Circles (QC) :– Quality circle is made up of a small group of people
belonging to the same department of an organisation, who after receiving
training take up solving quality and productivity related problems of their
units. In Japan, a QC is a group of about ten employees within a single
company department. QC is a good example of group work and WPM to
increase the per-capita productivity and for making better quality and
human relations in any work environment.
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Q. What is Trade Union? Explain its features, objectives & functions?
Ans. Definition of Trade Union :– Section 2(h) of the Trade Unions Act, 1926
has defined a trade union as “Any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations
between workmen and employers, or between workmen and workmen, or
between employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more
trade unions.”
In this definition the relationships that have been talked about are both
temporary and permanent.
Then this definition talks about three relationships. They are relationship
between the :–
Workmen and workmen
Workmen and employers
Employers and employers.
“A trade union is a continuous association of workers which is formed with the
purpose of protecting the interests of workers.”
Features of trade unions :–
I. It is an organisation formed by employees or workers.
II. It is formed on a continuous basis. It is a permanent body and not a casual
or temporary one.
III. It is formed to protect and promote all kinds of interests –economic,
political and social-of its members. The dominant interest with which a
union is concerned is, however, economic.
IV. It includes federations (association) of trade unions also.
V. It achieves its objectives through collective action and group effort.
Objectives of Trade Union :–
Workers organize themselves in the form of a union to achieve the following
goals :–
a) To improve the economic lot of employees by securing for them better
wages.
b) To secure better working conditions for the workers.
c) To secure bonus for the employees from the profit of the concern,
d) To resist schemes of the management which reduce employment, e.g.,
rationalisation and automation.
e) To secure welfare of employees through group schemes which give benefit
to every employee.
f) To protect the interests of employees by taking active participation in the
management.
g) To secure social welfare of the employees.
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h) To secure organizational stability, growth, and leadership.

Functions of Trade Unions :–
Broadly speaking, trade unions perform two types of functions, viz.,
(i) Militant functions
(ii) Fraternal functions,
Militant Functions :– One set of activities performed by trade unions leads to
the betterment of the position of their members in relation to their employment.
The aim of such activities is to ensure adequate wages, secure better conditions
of work and employment, get better treatment from employers, etc.
Fraternal Functions :– Another set of activities performed by trade unions aims
at rendering help to its members in times of need, and improving their
efficiency. Trade unions try to promote a spirit of cooperation and promote
friendly relations and diffuse education and culture among their members.
They also arrange for legal assistance to its members, if necessary. Besides,
these, they undertake many welfare measures for their members, e.g., school
for the education of children, library, reading-rooms, in-door and out-door
games, and other recreational facilities.
Another broad classification of the functions of unions may be as
follows :–
(a) Intra-mural activities
(b) Extra-mural activities
(c) Political activities.
Intra-mural activities :– These consist of those functions of the unions that
lead to the betterment of employment conditions such as ensuring adequate
wages and salaries, etc. for which the methods adopted may be collective
bargaining, negotiations, strikes, etc.
Extra-mural activities :– These activities help the employees to maintain and
improve their efficiency or productivity, e.g., measures intended to promote a
spirit of cooperation, promote friendly relations, and diffuse education among
members and various other types of welfare measures.
Political activities :– Modern trade unions also take up political activities to
achieve their objectives. Such activities may be related to the formation of a
political party or those reflecting an attempt to seek influence on public policy
relating to matters connected with the interests of working class.
Criticism of Trade Unions by the Employers
The employers have subjected trade unions to severe criticism. Some of the
charges are as under:
I. Lack of education makes the workers narrow-minded, and prevents them
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from taking long-term views. Thus, anything, which does not result in an
immediate reward, becomes unattractive to them. This attitude is
responsible for many strikes and lock-outs in industrial concerns.
II. Trade unions may not welcome explaination and improved methods of
production for the fear that some of the workers will be put out of work.
Therefore, they resort to go slow policy that retards industrial progress.
III. When labour unions strike because of illogical grounds, incalculable
losses occur to producers, community and the nation. These are harmful
to the workers also. They suffer because of the loss of wages.
IV. They create artificial scarcity of labour by demanding that only union
personnel should be employed.
V. By undue insistence on the payment of standard rates of wages, they have
only leveled down the earnings of the efficient workers.
Q. What are the impotant forces that make employees join a union?
Ans. The important forces that make the employees join a union are as
follows :–
I. Greater Bargaining Power :– The individual employee possesses very
little bargaining power as compared to that of his employer. If he is not
satisfied with the wage and other conditions of employment, he can leave
the job.
II. Make their Voices Heard :– The desire for self-expression is a
fundamental human drive for most people. All of us wish to share our
feelings, ideas and opinions with others. Similarly the workers also want
the management to listen to them.
III. Minimise Discrimination :– The decisions regarding pay, work, transfer,
promotion, etc. are highly subjective in nature. It may rate you very
differently as compared to your marketing. Similarly the personal
relationships existing between the supervisor and each of his
subordinates may influence the management. Thus, there are chances of
favouritisms and discriminations.
IV. Sense of Security :– The employees may join the unions because of their
belief that it is an effective way to secure adequate protection from various
types of hazards and income insecurity such as accident, injury, illness,
unemployment, etc. The trade union secure retirement benefits of the
workers and compel the management to invest in welfare services for the
benefit of the workers.
V. Sense of Participation :– The employees can participate in management
of matters affecting their interests only if they join trade unions. They can
influence the decisions that are taken as a result of collective bargaining
between the union and the management.
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VI. Sense of Belongingness :– Many employees join a union because their co-
workers are the members of the union. At times, an employee joins a union
under group pressure; if he does not, he often has a very difficult time at
work. On the other hand, those who are members of a union feel that they
gain respect in the eyes of their fellow workers. They can also discuss their
problem with the trade union leaders.
Five important central organisations of workers in India are
1. The Indian National Trade Union Congress (INTUC)..
2. The All India Trade Union Congress (AITUC).
3. The Hind Mazdoor Sabha (HMS).
4. The United Trade Union Congress (UTUC).
5. Centre for Indian Trade Unions (CITU).
Q. What are the problems & weaknesses of trade union in India?
Ans. The problems and weaknesses of trade unionism in India are as
follows :–
I. Uneven Growth :– The trade unionism in India is characterised by uneven
growth, both industry-wise and area-wise. Trade unions are popular in
big industries and the degree of unionisation varies widely from industry
to industry. Besides, trade union activities are concentrated in a few
states and in bigger industrial centers mainly due to concentration of
industries in those places.
II. Limited Membership :– The number of trade unions in India has
increased considerably. But this has been followed by the declining
membership per union.
This is due to the reason that any seven workers any form a union under
the Trade Unions Act, 1926 and get it registered. Secondly, the rivalry
among the leaders of trade unions has resulted in multiplicity of unions,
there by reducing the average size of membership per union.
III. Multiplicity of Unions :– There exist several trade unions in the same
establishment. The multiplicity of unions is the result of outside
leadership and labour laws. The law permits and gives sanctity to small
unions. Any seven persons can form a union under the Trade Unions Act,
1926. This Act confers rights on such a union. It is allowed under the Act
to raise disputes, file suits, go to conciliation and even bargain with
employers. Therefore, small sections of workers are encouraged to form
separate Unions. There is no restriction on the number of unions to be
registered in one establishment.
IV. Outside Leadership :– Trade unions in India are led largely by people who
themselves are not workers. These outsiders are politicians, intellectuals
and professionals having no experience of work in industry. Outsiders
continue to dominate the trade unions to advance their personal interests.
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The existence of outside leadership has created the following problems:
Ø Since outsiders have links with political parties, they give greater
importance to the interest of their political parties. At times, they do
not mind sacrificing the interest of their followers for the achievement
of political ends.
Ø Their approach towards labour problems is coloured by political
considerations. This hampers the growth of healthy employer-
employee relations. When there is an industrial dispute, the leaders
try to solve it through political pressures and interventions. This
naturally obstructs the growth of understanding and
accommodation between workers and employers.
Ø Outsides leaders are responsible for the creation of multiple unions,
in case they are not satisfied with other union leaders, they would
leave that union form another rival union in the same plant. Such an
approach kills the solidity and solidarity of trade union movement.
V. Financial Problems :– The financial position of the trade unions is weak
because their average yearly income is very low and inadequate.
VI. Indifferent Attitude of Workers :– In India, a large number of workers
have not joined any union. Moreover, all the members of the trade unions
do not show interest in their affairs. The attendance at the general
meetings of the unions is very low. Under such circumstance, trade
unionism cannot be expected to make much progress.
A few suggestions for the development of such unions are :–
I. One Union in One Industry :– Multiplicity of unions in the same plant
leads to inter-union rivalry that ultimately cuts at the root of the trade
union movement. It weakens the power for collective bargaining and
reduces the effectiveness of workers in securing their legitimate rights.
Therefore, there should be only one union in one industry.
II. Development of Leadership from Within :– It is of crucial importance
that trade unions are managed by the workers, and not by outsiders.
Leadership should be developed from within the rank and file of the
workers.
III. Recognition of Trade Unions :– Till recently, the employers refused
recognition to the trade unions either on the basis that unions consisted of
only a minority of employees or two or more unions existed.
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Past Year Question Papers
JAN 2009
UNIT–I
1. What is the difference between personnel management and HRM? Explain
the functions of HRM.
2. What is policy? How HR policies are framed and implemented?
UNIT–II
3. What is the difference between recruitment and selection? Explain the
process of selection.
4. Explain the following :
a) Succession planning
b) Managing organisational renewal
UNIT–III
5. What is job evaluation? Explain the metods of job evaluations.
6. Define performance appraisal. Explain modern techniques of performance
appraisal.
UNIT–IV
7. Define trade unions. Why employees join trade unions? Explain the problems
of trade unions.
8. Give a comprehensive note on employee participation and empowerment.
JULY 2008
UNIT–I
1. Discuss the objectives of HRM. How has the role of HR manager changed with
the change in environment?
2. Explain the importance and process of human resource planning (HRP). How
does it help in achieving corporate objectives?
UNIT–II
3. How can HRM attract right persons? What should be the major
considerations in selecting manpower?
4. Differentiate between career planning and succession planning. What role
can HRM play in career planning of its manpower and how does HRM benefit
from it?
UNIT–III
5. Discuss in detail the determinants of pay rates and the mechanism of pay
fixation.
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6. Write a detiled note on various employees benefits and services. Should they
be performance based?
UNIT–IV
7. What is the importance of industrial relations for an organistions? What role
can trade unions play in maintaining good industrial relations?
8. Write notes on (i) Industrial Disputes (ii) Grievance Handling Mechanism
JULY 2007
UNIT–I
1. What do you mean by HRM? Explain managerial and operative functions of
HRM.
2. Define human resource planning. How can HRP be integrated with corporate
objectives?
UNIT–II
3. Define job analysis. Explain various methods of doing job analysis in the
organizations.
4. What is the difference between training and development? Critically evaluate
the training methods.
UNIT–III
5. What is compensation? While explaining the aims, comment on factors
determining compensation.
6. Define performance appraisal and potential appraisal. Critically evaluate 360
degree feed back method of performance appraisal.
UNIT–IV
7. What are the causes of industrial disputes in India? Explain the machinery
available for dispute resolution.
8. Explain the following:
i) Employee grievances and discipline
ii) Employee empowerment.
JAN 2007
UNIT–I
1. Define the status of HRM in changing environment due to globalization. Does
this environment is a challenge for HRM? Comment.
2. How does human resource planning constitute a change in corporate
objective? Explain.
UNIT–II
3. Describe the methods of manpower search. Explain which methods is more
effective and why?
Ans. Methods of Manpower Search
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4. Distinguish between career and succession planning. Does it make any sense
for organisational renewal?
Ans. Reference Q. 4 July 08 (HRM)
UNIT–III
5. What are aims and objectives of compensation? How it help organisation to
achieve its objective?
6. Describe the concept of potential appraisal. How are differ from performance
appraisal? Comment.
UNIT–IV
7. What is the content and contest of industrial rel. Explain its role in managing
industrial disputes.
8. Write short note on the following :
a) Forms of employee empowerment
b) Types of employee grievances
JULY 2006
UNIT–I
1. What is human resource planning? How does it change corporate objectives?
Comment.
2. Describe the role of HR Practitioner in managing organizational change.
UNIT–II
3. What is job analysis? Explain its objectives and significance for the
organization.
4. Distinguish between career and succession planning. Why it is necessary for
organizational renewal? Comment.
UNIT–III
5. Enumerate the factors determining Pay rates in an multinational company.
6. Write short notes on any two of the following :
i) Concept of 360 degree feedback
ii) Objectives of job classification
iii) Nature of Potential appraisal.
UNIT–IV
7. Describe the concept of industrial disputes and suggest strategies to solve the
disputes.
8. Explain the forms of employee empowerment and give reasons to implement
them for better results and relations.
JAN 2006
UNIT–I
1. Describe the concept of Human Resource Management and explain its
significance to modern management.
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2. What is the role Human Resource practitioner in selecting personnel for
different positions in the organization.
UNIT–II
3. What is the difference between job description and job specification? How
does it help in job analysis?
4. Write short notes on the following
a) Socialization and Induction
b) Succession Planning
UNIT–III
5. Explain the important components of compensation. How do they motivate
people?
6. What is potential appraisal? How does it differ from performance appraisal?
UNIT–IV
7. What is industrial democaracy? Explain its importance to maintain
industrial relations in organization.
8. Describe the role of a trade union in setting dispute in an organisation.
JAN 2005
UNIT–I
1. Explain the role of HR in changing business environment. Also define skills
required for HR practitioner to cope up with the change.
2. What are objectives and funtions of HR? Explain them in detail.
UNIT–II
3. What is succession and Carrer Planning? Explain its objectives and
significance.
4. Define the concept of Training. Explain its role and significance for
manpower.
UNIT–III
5. What is Performance Appraisal? Explain its objectives and scope.
6. What factors play important role in determining pay rates in a multinational
organization?
UNIT–IV
7. What do you mean by industrial Democracy? How does it maintain reltaion in
an organization?
8. Write short notes on the following :
a) Strategies for settlement of Industrial Disputes
b) Employee Empowerment
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INDIAN BUSINESS ENVIRONMENT

PRODUCTION & OPERATIONS MANAGEMENT

3. Industrial relation aspect :– This covers union management relation

Recruitment and Selection :–

FIGURE HR Planning Process

Step 2 :– Review relevant background information such as organization charts,

3. Interviews :– Selection tests are normally followed by personal interview

1. Welcome to the organization

2. It is usually less expensive than off-job training

a one-way system of communication with no scope for the audience to

Linkage with Publics

2. Involve the ratee in interpret end his or her on results.

Q. What is Job evaluation? Explain its objectives and principles.What

“Job evaluation is a process of finding out the relative worth of a job as

1) To gather data and information relating to job description, job

2) To compare the duties, responsibilities and demands of a job with that of

3) To determine the hierarchy and place of various jobs in an organization.

4) To determine the ranks or grades of various jobs.

6) To minimize wage discrimination based on sex, age, caste, region, religion

Job Evaluation Process :–

Job Evaluation process

Job Description Job Specification

Job Evaluation Programme

Methods of Job Evaluation :

Point Factor Ranking Job Banding

The job-evaluation process starts defining objectives of evaluation and ends

The advantages of the method are;

Direct Indirect The Job The Env.

Examples / Situations on different types of Compensation:

responsibilities. Yet, Anup is on exceptionally happy person who believes

The employee services include :–

variety of procedures. The most important feature of the assessment center is

Many organizations encourage a mixture of both formal and informal

The different incentive schemes :–

• Greater job freedom • Basic wage or • Protection • Preferred

• More responsibility • Overtime and • Pay for time not • Preferred

• More interest in • Performance • Services • Assigned parking

• Opportunities • Stock option • Business cards

• Diversity of • Own secretary

Three main parties

Trade Union Employers' Organisation Government

Feaures of Industrial Relations.

Q. What is an industrial dispute? What are the factors responsible for

(v) Sincere Implementation of Agreements :– The management should

Methods of Dispute Resolution

Factual Imaginary Disguised

Summarising the identification of grievances.

Exit Interview Gripe Boxes Opinion Surveys Open door policy

Grievance Procedure, an aggrieved employee shall first present his grievance

Step - ladder Grivevance Procedure.

people in the system. Therefore it is necessary that the grievance

These are also commonly referred to as the forms of Participation-:

h) To secure organizational stability, growth, and leadership.

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