HUMAN RESOURCE MANAGEMENT AT

MYSTIC MONK DESIGNS GARMENT

We start with defining what you mean by human resources?

According to Leon C. Megginson, the term human resources ca be

thought of as, “the total knowledge, skill, creative abilities, talent

and aptitudes of an organization’s workforce, as well as the value,

attitudes and beliefs of the individuals involved”

Human resources are also regarded as human factor, human asset,

human capital and the like.

Nature and Scope of Human Resources in Organization

People in any organization manifest themselves, not only through

individual sections but also through group interactions. When

individuals come to work place, they come with not only technical

skills, knowledge etc. But also with their personal feelings,

perception, desire motives, attitude, values etc. Therefore employee

management in an organization does not mean management of not

only technical skills but also other factors of the human resources

Complex Dynamism

The handling of human resource is entirely different from that of

other resources. If human factor is properly utilizes, it may even

prove a dynamic motive force for running an organization.

Otherwise it becomes a passive and destructive force.

A Social System

The personnel manager involves himself in administering a social

system. In this process, the manager has to see that the economic

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satisfaction for a reasonable livelihood, the social satisfaction of

working together as members of a group and individual job

satisfaction of a worker are attained.

The nature and significance of personnel management have

undergone rapid changes recognizing the people not as a cost

center but as a profit center.

Meaning of Human Resource Management

In simple sense, human resources management means employing

people, developing their resources, utilizing, maintaining and

compensating their services in tune with job and organizational

requirements.

Michael J. Jucius defined Personnel Management as “the field of

management

Personnel Management as “the field of management which has to

do with planning, organizing, directing and controlling the functions

of procuring, developing, maintaining and utilizing a labor force,

such that the :

a) Objectives for which the company is established are attained

economically and effectively,

b) Objectives of all levels of personnel are served to the highest

possible degree,

c) Objectives of society are dully considered and served

Human Resource Management can be defined as managing

(planning, organizing, directing and controlling) the functions of

employing, developing and compensating human resources

resulting in the creating and development of human relations with a

view to contribute proportionately (due to them) to the

organizational individual and social goals.

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Significance of Human Resource Management (HRM)

Today the apparel industry has become very competitive with the

removal of quotas more and more buyers are coming into India.

Human resources are the lifelines of any organization.

Human Resources System is a central subsystem of the

organization.

Human resources system in an organization is not only unique sub-

system but also a principle and central sub-system and it operates

upon and control all other systems (as shown in the following figure.

Thus in the words of Wendell L. French, “ Personnel management is

a major pervasive sub-system of all organizations”. Whatever I the

environment affects the organization like economic, social, cultural,

legal, political, historic, competitors, consumers etc. as a whole also

affects the personnel system. The resource system receives inputs

from the organization in the form of objectives and it results in

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FinancialSub-

System

MarketingSub-

System

TechnologySub-System

Human Resources

Sub-System

MaterialSub-

System

ORGANISATION SYSTEM

individual and organizational performance that may be viewed as

individual and organizational output. Both the personnel system and

the entire organizations operate under the same cultural, economic,

social, legal, political and other constraints. Hence, greater the

effectiveness and productivity of personnel, the more will be the

effective functioning of an organization. Peter F. Drucker has rightly

observed the significance of personnel as, managers are fond of

repeating the truism that the only real difference between one

organization and the other is the performance of the people”. In

essence the survival, development and performance of an

organization although not solely but heavily _ depends on the

equality of personnel.

Environmental Influence

The external environment is comprised of those factors, which

affect an organization’s human resources from outside the

organization. Important among them are, economic, social, political,

Governmental and legal, technological, manpower, in the country,

tradition and culture, customers, other organizations and trade

unions in other organizations. Each of these external factors

separately or in combination can influence the HRM function of any

organization. Further, changes in these factors make the personnel

manager’s job a challenging one.

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The internal environment also affects the job of a personnel

manager.

The internal environmental factors include organization objectives,

policies, organizational structure, the functional areas of the

organization with which the personnel managers works continuously

like finance, marketing and production. Impact of internal

environmental factors is profound as they frequently and closely

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External

Technological

Governmental Legal

Political

Economic

Social IncludingReligious

Human Resources in Country

Trade Unions in other

Organizations

Customers

Internal

Marketing Organizational Objectives

HRM

Organizational Politics

Finance Organizational Structure

Production

Environment

ENVIRONMENTAL SCANNING OF HRM

interact with HRM function in an organization. For instance, the

objectives of HRM are formulated based on the organizational

objectives. Jobs are designed and analyzed based on the

organizational structure. The personnel manager works closely with

other functional (line) managers in solving their personnel problems

through counseling, advising, providing information etc. The levels

of wage salary, various allowances – incentive compensation etc.,

are highly influenced by the level of finance and success of

marketing functions. Most of the personnel problems are linked with

the production function of an organization. Thus the internal

environment of an organization influences heavily the HRM.

Technological Factors: Just as necessity is mother invention,

competition and a host of other reasons are responsible for the

rapid technological changes and innovations. In consequence of

these changes, technical personnel, skilled workers and machine

operators are increasingly required while the demand of the other

categories of employees has declined. But it is found that the supply

of former category of employees has dwindled in relation to the

demand for the same. Hence procurement of skilled employees and

their increase in numbers to match the changing job requirements

has become a complicated task. In addition, not only new

organizational relationships and different motivational techniques to

satisfy the changed relationships but also to retain technically

skilled and efficient personnel will be required.

Changes in the Structure of Employment

There has been a significant change in the structure of employment

with the entry of

a) Candidates belonging to the scheduled cast, scheduled tribe

and backward communities, thanks to government’s

reservation policy and with

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b) More female employees, due to increase carrier orientation

among women to the suitability of women for certain jobs and

to women becoming more acclimatized to the working climate

and higher level commitment.

These changes in workforce have naturally complicated the task of

HRM as the personnel manager has to deal with the employees with

different backgrounds.

Changes in Employee Role and their Values

It was the opinion of the management that it was the boss and the

employees had to follow obediently management’s decision. But

gradually this relationship has been replaced by the relationship in

which employees and management are partners in the

organizations.

It has become imperative for the management to provide various

fringe benefits to improve morale, to introduce negotiating

machinery to reduce grievance; to encourage employee

participation indecision making and the like to pave the way for

industrial democracy to meet the situations of workforce.

Further, employees prefer flexible working hours to fixed time

schedule.

Changing Demands of Employers

The technological revolution and neck to neck marketing

competition of most of the organizations demand that the existing

employees adopt to the ever changing work situations and learn

new skilled, knowledge etc., to cope up with the new changes.

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FUNCTIONS OF HRM

After knowing the meaning and importance of human resource

management, how do we define the function of HRM in Mystic Monk

Designs Pvt. Ltd.?

Managerial Functions

Planning: It is a pre-determined course of action. Planning is

determination of personnel programmes and changes in advance

that will contribute to the organizational goals. In other words it

involves planning of human resources, requirements, recruitment,

selection, training etc. It also involves forecasting of personnel

needs, changing, changing values, attitudes and behavior or

employees and their impact on organization.

Organizing: An organization is a means to an end. It is essential to

carry out the determined course of action. In the words of

J.C.Massie, an organization is a “structure and a process by which

co-operatives groups of human beings allocated its task among its

members, identifies relationships and integrates its activities

towards common objective”.

Directing: The next logical function after completing planning and

organizing is the execution of the plan. The basic function of

personnel management at any level is motivating, commanding,

leading and activating people. The willing and effective co-operation

of employees for the attainment of organizational goals, is possible

through proper direction.

Controlling: After planning, organizing, directing the various

activities of the personnel management. At this point the

performance is to be verified in order to know that the personnel

functions are performed in conformity with the plans and directions.

Controlling also involves checking, verifying and comparing of the

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actual with the plans, identification of deviations if any and

correcting of identified deviations.

Operative Functions

Employment: Employment is connected with securing and

employing the people possessing required kind and level of human

resources necessary to achieve the organizational objectives.

Job analysis

a) Collection of data, information, facts and ideas relating to

various aspects of jobs including men, machines and

materials.

b) Preparation of job-description, job specification, job

requirements and employee specification, which will help

identifying the nature , levels and quantum of human

resources.

c) Providing the guides, plan and basis for job design and for all

operative functions of HRM.

Human Resource Planning: It is process of determination and

assuring that the organization will have an adequate number of

qualifies persons, available to proper times, performing jobs which

would meet the needs of the organization and which would provide

satisfaction for the individuals involved.

Recruitment: It is the process of searching for prospective

employees and stimulating them to apply for jobs in an

organization.

Selection: It is the process of ascertaining the qualifications,

experience, skill, knowledge etc., of an applicant with a view to

appraising his/her suitability to a job appraising.

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Placement: It is the process of assigning the selected candidate

with the most suitable job in term of job requirements. It is

matching of employee specifications with job requirements.

Induction and Orientation: Induction and orientation are the

techniques by which a new employee is rehabilitated in the changed

surrounding and introduced to the practices, policies, purposes and

people etc., of the organization.

Human Resource development

It is the process of improving molding and changing the skills,

knowledge, creative ability, aptitude, attitude, values, commitment

etc., based on present and future job and organizational

requirements. This function includes:

Performance Appraisal :It is the systematic evaluation of

individuals with respect to their performance on the job and their

potential for development.

Training; It is the process of imparting the employees the technical

and operating skills and knowledge.

Management Development: It is the process of designing and

conducting suitable executive development programmes as to

develop the managerial and human relations skill of employees.

Career Planning and Development; It is the planning of one’s

career and implementation of career plans by means of education,

training, job search and acquisition of work experiences. It includes

internal and external mobility.

It takes care of transfer, promotion, demotion etc.

Compensation: It is the process of providing adequate, equitable

and fair remuneration to the employees. It includes job evaluation,

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wage and salary administration, incentives, bonus, fringe benefits,

social security measures etc.

Effectiveness of Human Resources Management

Effectiveness of various personnel programmes and practices can

be measured or evaluated by means of organizational health and

human resources accounting etc.

Organizational Health: The result of the employee satisfaction

can be understood by labor turnover, absenteeism, commitment

and the like. Low rate of absenteeism and specific and high rate of

employee commitment most probably indicate employee –

satisfaction about the job and the organization.

Human Resource Accounting, Audit and Research:

Effectiveness of human resources management can also be found

out through human resource accounting, audit and research.

Human Resource Research: It is the process of evaluating the

effectiveness of human resources policies and practices and

developing more appropriate ones. It includes;

a) Conducting morale, attitude, job satisfaction and behavior

surveys.

b) Collecting data and information regarding wages, cost-benefit

analysis of training, benefits, productivity, absenteeism,

employee turnover, strikes, accidents, operations, working

hours, shifts etc.

c) Tabulating, computing and analyzing of the data and

information

d) Report writing and submission to the line managers

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e) Finding pout defects and shortcomings in the existing policies,

practices etc.

f) Developing of more appropriate policies, procedures,

programmes of personnel.

Objectives of Human Resource Management

The objectives of HRM may be as follows:

a) To create and utilize an able and motivated workforce, to

accomplish the basic organizational goals.

b) To establish and maintain sound organizational structure and

desirable working relationships among all the members of the

organization.

c) To secure the integration of individual and groups goals with

those of the organization.

d) To create facilities and opportunities for individual or group

development so as to match it wit the growth of the

organization.

e) To attain an effective utilization of human resources in the

achievement of organizational goals.

f) To identify and satisfy individual and group needs by

providing adequate and equitable wages, incentives,

employee benefits and social security and measures for

challenging work, prestige, recognition, security status etc.

g) To maintain high employee morale and sound human relations

by sustaining and improving the various conditions and

facilities.

h) To strengthen and appreciate human assets continuously by

providing training and developmental programmes.

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i) To consider and contribute to the minimization of socio-

economic evils such as un-employment, under-employment,

inequalities in the distribution of income and wealth and to

improve the welfare of the society by providing employment

opportunities to women and disadvantaged section of the

society etc.

j) To provide an opportunity for expression and voice in

management

k) To provide fair, acceptable and efficient leadership.

l) To provide facilities and conditions of work and creation of

favourable atmosphere for maintaining stability of

employment.

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JOB DESIGN

Job design process has to start from what activity needs to be in

order to achieve organizational goals. It requires the use of

techniques like work-study, process planning, organizational

methods and organizational analysis.

Job Design Options:

Personnel departments use a variety of methods to improve jobs

such as job rotation, job enlargement and job enrichment.

Job Rotation: Job rotation refers to the movement of an employee

from one job to another. Job themselves are not actually changed;

only the employees are rotated among various jobs. An employee

who works on a routine/respective job moves to and works on

another job for some hours/day/months and backs up to the first

job. This measure relieves the employee from boredom and

monotony, improves employee’s skill regarding various jobs and

prepares the competent employees to meet the contingencies. This

measure also improves worker’s self-image and provides personnel

growth.

Job Enlargement: Job enlargement means adding more and

different tasks to a specialized job to provide greater variety.

Job Enrichment: Job enrichment loads the job vertically. Job

enrichment means adding duties and responsibilities that will

provide for skill variety, task identity, task significance, autonomy

and feedback on job performance. It tries to deal with dissatisfaction

by increasing job depth as work activities from a vertical slice of the

organization unit are combined in one job.

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Job Analysis

Need of Job Analysis

Procurement is the first operative function of personnel

management, which can be sub-divided into various sub-functions

like human resource planning, recruitment and selection.

Management should determine the kind of personnel required for a

job in right time. Thorough knowledge of the job is essential to

perform these functions.

Job Terminology

Description of technical terminology is highly essential in order to

facilitate the study of a job analysis.

Task: A task is an action or related group of action designed to

produce a definite outcome or result.

Position: A position is a group of similar tasks and responsibilities

assigned to one individual.

Job: A job is “a group of positions that are similar as to kind and

level of work”.

Occupation: An occupation “is a group of job that are similar as to

kind to work and are found throughout an industry or the entire

country”.

Job Analysis: The U.S. Department of Labor defined job analysis as

“the process of determining, by observation and study, and

reporting pertinent information relating to the nature of a specific

job.

Job Description: A job description is “ an organized, factual

statement of the duties and responsibilities of a specific job”.

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Job Specification: A job specification is “a statement of the

minimum acceptable human qualities necessary to perform a job

properly”.

Job Specification: Employee specification is a statement of

minimum required employee qualifications”.

Job Classification: A job classification is “a grouping of jobs on

some specified basis such as kind of work or play”.

Process of Job Analysis

Jobs can be analyzed through a process, which consist of six basic

steps;

i. Collection of Background Information

ii. Selection of Representative Position to be analyzed

iii. Collection of Job Analysis of Data

iv. Developing a Job Description

v. Developing a Job Specification

vi. Developing Employee Specification

Job Analysis Information: This analysis provides the following

information;

1. Job Identification

2. Significant Characteristics of a Job

3. What the Typical Worker Does?

4. Job Duties

5. What Materials and Equipment the Worker Uses?

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6. How a Job is performed?

7. Required Personal Attributes

Job Relationship:

This includes opportunities for advancement, patterns of

promotions, essential cooperation etc.:

Sources of Job Analysis Information:

a. From the employee who actually perform a job.

b. From other employees such as supervisors and foremen who

watch the workers while doing a job and thereby acquire

knowledge about it; and

c. From outside observers specially appointed to watch

employees performing a job. Such outside persons are called

the trade job analysis. Sometimes, special job reviewing

committees are also established.

Job Description

Characteristics of Good Job Description: It should indicate the

scope and nature of the work including all-important relationships.

The job description should be clear regarding the work of the

position, duties etc. More specific words should be selected to show

a. The kind of work

b. The degree of complexity

c. The degree of skill required

d. The extent to which problems are standardized

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e. The extent of worker’s responsibility for each phase of the

work and

f. The degree and type of accountability.

The Content of Job Description: The job description normally

contains the information on the following line

Job title

Organizational location of the job

Supervision given and received

Materials, tools, machinery and equipment worked with

Designation of the immediate superiors and subordinates

Salary levels: Pay, D.A., other allowances, bonus, incentive wages,

method of payment, hours of work, shift, and break.

Complete list of duties to be performed separated accordingly to daily,

weekly, monthly and casual, estimates times to be spent on each duty.

Definition of unusual terms

Conditions of work: Location, time, speed of work, accuracy, health

hazards, accident hazards

Training and development facilities

Promotional chances and channels

The content of job description are defined in Mystic Monk Designs

Pvt. Ltd.but they are done only for the top level or middle level jobs.

Our recommendation is that job should clearly defined for all the

workers in the organization. It helps in clearly defining the authority

responsibility relationship of superior and subordinate. It also helps

in job evaluation and giving the right feedback to the worker.

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Major Steps of Job Description: Job analyst has to write the job

description after consulting the worker and the supervisor. After

writing the preliminary draft, the job analyst has to get further

comments and criticism from the worker and supervisor before

preparing the final draft. The following modes may be used in

writing job description:

i. Get the questionnaire filled in by immediate supervisor of the

employee.

ii. Job analyst has to complete the job description form by

observing the actual work being done by the employee.

iii. All the information pertaining to the job should be secured

from the worker.

The job analyst has to finalize the job description and write the final

draft by using any one or a combination of two or more of the above

methods. The job description should be reviewed and updated after

the final draft is prepared.

Keeping the Job Description Up-to-date: Job requirements have been

undergoing continuous change. The job analyst has to secure the

information about the changes as and when it is reported or when a

grievance is ventilated claiming that a given job should be

reclassified into a higher group or class carrying the higher rate of

pay. The job analyst has to check the information that is received

and he has to change the job description accordingly.

Job Specification

It is a written statement of qualifications, traits, physical and mental

characteristics that an individual must possess to perform the job

duties and discharge responsibilities effectively.

Job Specification Information: This includes:

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i. Physical specifications

ii. Mental specifications

iii. Emotional and social specifications and

iv. Behavioral specifications

Job Specification Form (this should be maintained for all the

job positions in Mystic Monk Designs Pvt. Ltd.)

Age

Sex

Educational Qualifications

Experience

Physical Specification: Height, weight etc.

Social Back ground

Family Back ground

Extra-curricular activities

Hobbies

Employee Specifications: Job specification information must be

converted into employee specification information in order to know

what kind of person is needed to fill a job. Employee specification is

useful to find out the suitability of particular class of candidates to a

particular job.

Recommended model of employee specification form to be

maintained in Mystic Monk Designs Pvt. Ltd.

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Job Grade

Job Title

Age

Sex

Educational Qualifications

Training received

Experience

Physical specification

Social specification

Uses of Job Analysis

Employment: Job analysis is useful as a guide in every phase of

employment process like manpower planning, recruitment selection,

placement, orientation induction, and in performance appraisal as it

gives the information about duties, tasks and responsibilities etc.

Organization Audit: Job information obtained by job analysis often

reveals instances of poor organization in terms of the factors

affecting job design.

Training and development Programs: Description of duties and

equipment used is of great help in developing the content of

training and development programs.

Performance Appraisal: Instead of rating an employee on

characteristics such as dependability there is now a tendency

toward establishing job goals and appraising the work done toward

those goals.

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Promotion and Transfer; Job description helps I charting the

channel of promotion and in showing lateral lines of transfer.

Preventing Dissatisfaction and Settling Complaints: Job

information can be used as a standard in preventing and settling

complaints related to work load nature of work, work procedures

etc. alteration or revisions of job description etc.

Disciple; Job information can be used as a standard when discipline

is being considered for standard performance.

Restriction of Employment Activity for Health Reasons and

Early Retirement

When employees are unable to maintain the standard job

performance due to old age or health hazard they may opt for early

retirement for the organization may retrench their services.

Wage and Salary Administration

Job analysis is the basis for job evaluation. Basically wage and salary

levels are fixed on the basis of job evaluation, which takes into

consideration the content of the job in terms of tasks, duties,

responsibilities, risks, hazards, etc.

Health and Safety

Job description provides the information about hazardous and

unhealthy conditions, accident-prone areas etc.

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HUMAN RESOURCE PLANNING

Objective: The important objectives of manpower planning in an

organization are:

i. To recruit and retain human resources of required

quality, quantity and foresee the employee turnover and

make the arrangement for minimizing turnover and

filling up of consequent vacancies

ii. To meet the needs of the programme of expansion,

diversification etc.

iii. To foresee the impact of technology on work, existing

employees and future human resource requirements

iv. To improve the standard, skill, knowledge, ability

discipline etc.

v. To asses the surplus or shortage of human resources

and take measure accordingly

vi. To maintain congenial industrial relations by

maintaining optimum level and structure of human

resources

vii. To minimize imbalances caused due to non-availability

of human resources of right kind, right number in right

time and right place

viii. To make the best use of its human resources and

ix. To estimate the cost of human resources.

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What is Human Resource Planning?

E.W/ Vetter viewed human resource planning as “ a process by

which as organizations should move from its current manpower to

its desired manpower position.

According to Leon C. Megginson human resource planning is “ an

integrated approach to performing the planning aspects of the

personnel function in order to have a sufficient supply of adequately

developed and motivated people to perform the duties and task

required to meet organizational objectives and satisfy the individual

needs and goals of organizational members”.

Need of Human Resource Planning

Every organization has to plan for human resource due to:

i. The shortage of certain categories of employees and/or

variety of skills despite the problem of unemployment.

ii. The rapid changes in technology, marketing, management

etc. and the consequent need for new skills and new

categories of employees.

iii. The changes in organization design and structure affecting

manpower demand.

iv. The demographic changes like the changing profile of the

workforce in terms of age, sex, education etc.

v. The government polices in respect to reservation, child labor,

working conditions etc.

vi. The labor law affecting the demand for the supply of labor.

vii. Pressure from trade unions, politicians, robots etc.

viii. Introduction of computers, robots etc.

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ix. The involvement of lead-time in maintaining the job with most

suitable candidate.

Benefits of Human Source Planning

i. It checks the corporate plan of the organization.

ii. It offsets uncertainty and change. But the HRP offsets

uncertainties and changes to the maximum extent possible

and enables the organization to have right men at right time

and the right place.

iii. It provides scope for advancement and development of

employees through training, development etc.

iv. It help to anticipate the cost of salary enhancement, better

benefits etc.

v. It helps to anticipate the cost of salary, benefits and all the

cost of human resources facilitating the formulation of

budgets in an organization.

vi. To foresee the need of redundancy and plan to check it or to

provide alternatives employment consultation with trade

unions, other organizations and government through

remodeling organizational, industrial and economic plans.

vii. To foresee the changes values, aptitude and attitude of

human resources and to change the techniques of

interpersonal, management etc.

viii. To plan for physical facilities, working conditions and the

volume of fringe benefits like canteen, schools, hospitals,

conveyance, child care centers quarters, company stores etc.

ix. To give an idea of type of tests to be used and interview

techniques in selection based on the level of skills,

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qualifications, intelligence, values etc., of future human

resource.

x. It causes the development of various sources contributions in

the form of increased productivity, sales, turnover etc.

xi. It facilitates the control of all the functions, operations,

contribution and most of human resources.

PROCESS OF HUMAN RESOURCE PLANNING

Analyzing the Organization Plans

The process of human resource planning should start with analyzing

the organizational plan into production plan, technological plan, plan

for expansion, diversification etc., marketing plan, sale plan,

financial plan,. Each plan can be further analyzed into Sub-units.

Detailed programmes should be formulated on the basis of unit-wise

plans. Practicability of each programme should be ensured. Analysis

of organizational plan and programmes helps in forecasting the

demand for human resources as it provides the quantum of future

work activity.

Forecasting the Overall Human Resource Requirements

The existing job design and analysis may thoroughly be reviewed

keeping in view the future capabilities, knowledge and skills of

present employees. Job analysis and forecasting about the future

components of human resource s facilitates demand forecasting.

One of the important aspects of demand forecasting is the

forecasting of the quality of human resources (skill, knowledge

values, capabilities etc.) in addition to the quantity of human

resources. Important forecasting methods are:

i. Managerial judgment

ii. Statistical techniques and

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iii. Work-study techniques.

Managerial Judgment:

How Mystic Monk Designs Pvt. Ltd.forecasts its overall human

resource requirement?

Mystic Monk Designs Pvt. Ltd. resorts to the management-judgment

approach. Under this method the managers or supervisors who are

well acquainted with the work load, efficiency and abilities of the

employees, think about their future workload, future capabilities of

employees and decides on the number and type of human resource

to be required. This is done by the supervisors concerned who send

the proposals to he top official for approval. Under this bottom-up

approach, the management at the top compares the proposals with

the organizational plan, makes necessary arrangements and

finalizes the plan. Alternatively this exercise can also be done by the

top management which in turn sends the information at the top

prepare the organizational plan, departmental plans and human

resource plan.

Recommendation: In today’s competitive world work-study

analysis is must for any export house.

Work Study Techniques

These techniques are more suitable where the volume of work is

easily measurable. Under this method, total production and

activities in terms of clear units are estimated in a year. Man-hours

required to produce/perform each unit is calculated. Work ability of

each employee is estimated in terms of man-hours after giving due

weight age to absenteeism, rest etc. Then the required number of

employees is calculated.

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After an order comes from the buyer and before it goes for

production, planning control and work-study analysis should be

done:

1. Order 50,000 shirts

2. Standard man hour needed to

produce each unit

1.2 hr

3. Plan man hour needed 40,000 hr

4. If order has to dispatch in 2

months i.e. (52 working days)

416 working hours (i.e. 52

working days x 8 hr shift / day)

5 Number of men required 96 employees (40,000/416)

Work-study analysis enables an export manufacturing to

know the exact details of the number of employees required

to complete the task.

Supply Forecasting

Existing Inventory

The data relating to present human resources inventory in terms of

human resources components, number, designation-wise and

department-wise should be obtained. Principal dimensions of human

resources inventory are:

i. Head counts regarding total, department-wise, designation-

wise, skill-wise, pay roll-wise.

ii. Job family Inventory: It includes number of category of

employees of each job family, i.e. all jobs related to same

category like merchandising, production quality etc.

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iii. Age Inventory: It includes age-wise number and category of

employees. It indicates age-wise imbalances in present

inventory which can be correlated in future selections and

promotion

iv. Inventory of skill, experience, values, capabilities.

v. Inventory of qualifications and training including minute

qualifications and training.

vi. Inventory of salary grade-pay-wise, allowances-wise, and total

salary-wise.

vii. Sex-wise inventory.

viii. Local and non-local-wise inventory.

Potential Losses

Potential losses to the organization include voluntary quits, deaths,

retirements, dismissals, lay-offs, disablement due to ill health or

involvement in accident, loss of values, aptitude etc. due to changes

in the attitude of existing employees towards the job, department

and organization. Potential losses to a particular department or sub-

unit include factors like promotions out, transfers out and demotions

out in addition to the above factors relating to the organization. The

reasons for the potential losses can be classified as:

i. Permanent total loss

ii. Permanent partial loss

iii. Temporary total loss and

iv. Temporary partial loss.

(a) Permanent total loss is due to labor turnover. Labor turnover is

measured by the following formula:

29

Labor turn over rate = No. of employees left during a specified period X 100

Average No. of employees during the same period

Management has to calculate the rate of labor turnover, conduct

exist interviews regarding dismissal etc. This helps to forecast

the rate of potential loss, reason for loss, etc. and reduce loss.

Management also calculates labor stability index (rate of

employees with certain period of experience to total number of

employees), survival rate ( the proportion of employees who are

engaged within a certain period who remain with the firm after so

many months or years of service) which help the management to

encourage a stability and minimize undesirable turnover.

(b) Permanent partial loss consists of wages of skills, capabilities

etc.

(c) Temporary total loss of human resource is due to

absenteeism and deputations out.

(d) Temporary partial loss include consultancy, advisory and

other services offered by the employees to others.

Potential Additions

a) Permanent loss

b) Permanent partial

c) Temporary total and

d) Temporary partial.

Permanent total additions to the organization consist of new hires.

Permanent total additions in case of departments include

30

promotions, demotions and transfers within the organization.

Permanent partial addition consists of acquisition of new skills,

knowledge, values, aptitudes etc. by the existing employees.

The difference between the potential loss and potential additions is

to be added or subtracted as the case may be to the present

inventory of human resource in order to forecast the supply of

manpower.

Future supply of Present inventory the difference between theHuman Resources = of human resources ±

potential additions and potentialloss of human Resources

Or

Present inventory of + Potential additions _ Potential LossHuman Resources

Estimating the Net Human Resource Requirements

Net human resource requirements in terms of number and

components are to be determined in relation to the overall human

resource requirements (demand forecast) for a future date and

supply forecast for that date.

Action Plan for Redeployment, redundancy/Retirement

If future surplus is estimated, the organization has to plan for

redeployment, redundancy etc. If surplus is estimated in some

jobs/departments, employees can be redeployed in other

jobs/departments where the deficit of employees is estimated.

Organization should also plan for training or reorientation before

redeployment of employees. Redeployment takes place in the form

of transfers. If the deficit is not estimated in any job/department and

surplus is estimated for the entire organization, the organization, in

31

consultation with the trade unions, has to plan for redundancy or

retrenchment.

32

Forecast Future Supply from All the Sources

Action Plan for Recruitment, Development etc.

The promotion plan includes establishing of the ratio of internal

promotion to external recruits, basis for promotion, promotional

channel, and reservations in promotions etc. The transfer plan

includes channel, company rules regarding organization initiated

transfers and employee initiated transfers.

The training and development plan covers areas to be developed,

training techniques, training programmes, training time, availability

of trainer, in plant training or institute training, new courses to be

developed or changes made to the existing courses, cost benefit

analysis of training, development of the employees and matching of

their improved skills with future job requirements etc.

The productivity plan includes maximization of productivity or

minimization of labor cost per unit of output through technological

changes, improving / streamlining methods, procedures and

systems, productivity bargaining, training, financial incentives,

developing various schemes, motivation, commitment, organization

development programmes, job enrichment/ enlargement,

participation etc. It also includes improving of productivity

efficiency.

Recruitment and selection plans cover the number and types of

employment required, when they are required for the job, time

necessary for recruitment and selection process, recruitment

sources, recruitment techniques to be used, selection procedures to

be adopted, selection techniques to be used to select the required

candidates. It also covers the time factor for induction, preliminary

training and placement.

33

Modify the Organizational Plan

Retention Plan

Control and Review Mechanism

MODEL FOR CALCULATION OF NET HUMAN RESOURCES

REQUIRMENT FOR THE NEXT YEAR (this is a recommended

model which can be applied in Mystic Monk Designs Pvt.

Ltd.)

Particular Skill Knowledge

Aptitude Specialization

Age Number

Job:

Demand

1.Number required at the beginning of the year

2. Changes during the year

3. Total requirements at the end of the year

Supply

4. Present inventory

5. Additions: Permanent total

i. New hires

ii. Promotions in

iii. Transfers in

Demotions in

Permanent partial

Temporary: Deputation in

Loss: Permanent total

6.i. Voluntary quits

34

ii, Deaths

iii. Dismissals

iv. Retirements

v. Promotions out

vi. Transfers out

vii. Demotions out Permanent partial

Temporary: Absenteeism Deputations out

7. Future net supply

New Recruitments

8. Deficit/ Needed Additions

9 Surplus/Redeployment

10 Net Additional Human Resources Required

35

RECRUITMENT

Definition

Recruitment is defined as, “a process to discover the sources of

manpower to meet the requirements of the staffing schedule and to

employ effective measures for attracting that manpower in

adequate numbers to facilitate effective selection of an efficient

workforce”.

Edwin B. Flippo defined recruitment as “ the process of searching for

prospective employees and stimulating them to apply for jobs in the

organization”.

Recruitment Policy

Recruitment policy of any organization is derived from the personnel

policy of the same organization. In other words the former is the

part of the latter. However, recruitment policy by itself should take

into consideration the government’s reservation policy, policy

regarding sons of soil etc. personnel policies of other organizations

regarding merit, internal sources, social responsibility in absorbing

minority section, women etc. Recruitment policy should commit

itself to the organization’s personnel policy like enriching the

organization’s human resources or serving the community by

absorbing the weaker sections and disadvantaged people of the

society, motivating the employees through internal promotions,

improving the employee loyalty to the organization by absorbing the

retrenched or laid-off employees or casual/temporary employees or

dependents of present/former employees etc.

The following factors should be taken into consideration in

formulating recruitment policy. They are:

a. Government’s policies;

36

b. Personnel policies of other competing organization;

c. Organization’s personnel policies;

d. Recruitment sources;

e. Recruitment needs;

f. Recruitment cost;

g. Selection criteria and preference etc.

Centralized Vs. Decentralized Recruitment

Merits of Centralized Recruitment

i. Average cost of recruitment per candidate/unit should be

relatively less due to economies of scale.

ii. It would have more expertise available to it.

iii. It can ensure broad uniformity among human resources of

various units/zones in respect of education, skill, knowledge,

talent etc.

iv. It would generally be above malpractices, abuse of power,

favoritism, bias etc.

v. It would facilitate interchangeability of staff among various

units/zones.

vi. It enables the line managers of various units and zones to

concentrate on their operational activities by relieving them

from the recruitment functions.

vii. It enables the organization to have centralized selection

procedure, promotional and transfer procedure etc.

37

viii. It enables the organization to have centralized selection

procedure, promotional and transfer procedure etc.

ix. It enables centralized training programmes, which further

brings uniformity and minimizes average cost of staff.

Merits of decentralized Recruitment

i. The unit concerned concentrates only on those sources/places

where it normally gets the suitable candidates. As such the

cost of recruitment would be relatively less.

ii. The unit gets most suitable candidates as it is well aware of

the requirements of the jobs regarding cultural, traditional,

family background aspects, local factors, social factors etc.

iii. Units can recruit candidates as and when they are required

without any delay.

iv. The units would enjoy freedom in finding out, developing the

sources, in selecting and employing the techniques to

stimulate the candidate.

v. The unit would relatively enjoy advantage about the

availability of information, control and feedback and various

functions/processes of recruitment.

vi. The unit would enjoy better familiarity and control over the

employees it recruits rather than on employees selected by

the central recruitment agency.

Both the system of recruitment would suffer from their own

demerits. Hence, the management has to weigh both the merits and

demerits of each system before making a final decision about

centralizing or decentralizing the recruitment. Alternatively the

management may decentralized the recruitment of certain

categories of employees preferably middle and top level managerial

38

personnel and centralize the recruitment of the other categories of

the employees preferably lower level positions in view and the

nature of the jobs and suitability of those systems for those

categories of positions. The management has to find out and

develop the sources of recruitment after deciding upon centralizing

or decentralizing the recruitment function.

In Mystic Monk Designs Pvt. Ltd.recruitments for higher-level jobs

are decentralized whereas recruitments for lower level jobs such as

operators, pattern masters, assistants to merchants, fabric chasers

are all done centrally through employment agencies.

SOURCES OF RECRUITMENT

The sources of recruitment are broadly divided into internal sources

and external sources. Internal sources are the sources within an

organizational pursuits. External sources are the sources outside

organizational pursuits.

Internal Sources

Internal sources include:

a. Present permanent employees;

b. Present temporary/casual employees;

c. Retrenched or retired employees;

d. Dependents of deceased. Disabled, retired and present

employees.

39

In Mystic Monk Designs Pvt. Ltd.lots of operators in the production

department are given opportunities to become inline quality

checkers. This provides a lot of motivation to the operators to

improve their efficiency.

Why Do organizations Prefer Internal Sources?

Organizations prefer this source to external source to some extent

for the following reasons:

i. Internal recruitment can be used as a technique of motivation;

ii. Morale of the employees can be improved;

iii. Suitability of the internal candidates can be judged better

than the external candidates as “ known devils are better than

unknown angles”;

iv. Loyalty, commitment, a sense of belongingness, and the

security of the present employees can be enhanced;

v. Employees’ psychological needs can be met by providing an

opportunity for advancement;

vi. Employees economic needs for promotion, higher income can

be satisfied;

vii. Cost of selection can be minimized;

viii. Cost of training, induction, orientation, period of adaptability

to the organization can be satisfied;

ix. Trade unions can be satisfied;

x. Social responsibility towards employees may be discharged;

xi. Stability of employment can be ensured.

40

External Sources

i. The suitable candidates with skill, knowledge, talent etc. are

generally available;

ii. Candidates can be selected with out any pre-conceived notion

or reservations;

iii. Cost of employees can be minimized because employees

selected from this Latest knowledge, skill, innovative or

creative talent can also be flow source are generally placed in

minimum pay scale;

iv. Expertise, excellence and experience in other organizations

can be easily brought into the organization;

v. Human resources mix can be balanced with different

background, experience, skill etc.;

vi. Latest knowledge, skill, innovative or creative talents can also

be flowed into the organization;

vii. Existing will also broadens their personality;

viii. Long-run benefit to the organization in the sense that

qualitative human resources can be brought.

External Sources include;

a. Educational and training Institutes;

b. Private employment agencies/consultants;

c. Public Employment Exchanges;

d. Professional Associations;

e. Data banks;

41

f. Casual Applicants;

g. Similar Organizations;

h. Trade Unions.

In Mystic Monk Designs Pvt. Ltd.a lot of middle level and higher-level

personnel are recruited from similar organizations or through

consultants. Juniors merchants and production in charges may be

recruited from education or training institutes. The lower level

recruitments are made from employment agencies and also from

casual applicants.

RECRUITMENT TECHNIQUES

Recruitment techniques are the means or media by which

management contracts prospective employees or provide necessary

information or exchanges ideas or stimulate them to apply for jobs.

Management uses different types of techniques to stimulate internal

and external candidates.

Techniques useful to stimulate internal candidates are:

a. Promotions; and

b. Transfers

Techniques useful to stimulate external candidates:

a. Present employees;

b. Scouting;

c. Advertising.

(i) Promotions

(ii) Transfers

42

(iii) Recommendations of the Present Employees

(iv) Scouting

(v) Advertising

43

SELECTION

The guiding policy in selection is the intention to choose the best-

qualified and suitable candidate for each unfilled spot and to avoid

commitment to those who will not work well. The selection to

procedure is the system of functions and devices adopted in a given

company to ascertain whether the candidates’ specifications are

matched with the job specifications and requirements or not. The

selection procedure cannot be effective until and unless:

a. Requirements of the job to be filled have been clearly

specified (job analysis etc.)

b. Employee specifications (physical, mental, social, behavioral

etc.) have been clearly specified;

c. Candidates for screening have been attracted.

Essentials of Selection Procedure

a. Some one should have the authority to select. This authority

comes from the employment requisition, as developed by an

analysis of the workload and work force.

b. There must be some standard of personnel with which a

prospective employee may be compared, i.e., there should be

available before hand a comprehensive job description and job

specification as developed by a job analysis.

c. There must be sufficient number of applicants from whom the

required number of employees may be selected.

Organizational Relationship

Before designing a selection procedure, the manner in which task

and responsibilities for accepting or rejecting candidates should be

shared by line and staff executives. They must be laid down. The

44

personnel department should eliminate all unsuccessful candidates,

so that the time of the line executives need not be spent on such

people. Secondly, candidates who can meet job requirements

should be made available promptly. Line executive is ultimately

vested with the authority either to accept or to reject a candidate.

However, the personnel officer has a duty to see that the right types

of personnel are selected and placement done wisely. If he is not

satisfied in this regard, he should give his views to the superior and

should avoid involving himself in argument with departmental head

on methods of selection.

Factors Affecting Selection Decisions in Apparel Industry

Organizational and Social Environment; Some candidates who are

eminently suitable for the job, may fail as successful employees due

to varying organizational and social environment. Hence,

candidates’ specifications must match with not only job

specifications but also with organizational and social environmental

requirements.

Selection Procedure

(1)Job Analysis: Job analysis is the basis for selecting the

right candidate. Every organization should finalize the

job analysis, job description, job specification and

employee’s specifications before proceeding to the next

step of selection.

(2)Recruitment: Recruitment refers to the process of

searching for prospective employees and stimulating

them to apply for jobs in an organization. It is the basis

for the remaining techniques of the selection and the

latter varies depending upon the former.

45

Application Form

Personnel background Information:

Educational Attainments:

Work Experience:

Salary:

Personal Items:

References:

Options of Interviews Available for Apparel Industry

Preliminary Interview

The preliminary interview is to solicit necessary information from

the prospective applicants and to assess the applicant’s suitability

to the job. An assistant in the personnel department may conduct

this. The information thus provided by the candidate may be related

to the job or personnel specifications regarding education,

experience, and salary expected, aptitude towards the job, age,

physical appearance and other physical requirements etc. If the

information supplied by the candidate is below/above the

availability of number of suitable candidates. Thus, preliminary

interview is useful as a process of eliminating the undesirable and

unsuitable candidates. If a candidate satisfied the job requirements

regarding most of the areas, he mat be selected for further process.

The preliminary interviews are short and known as stand-up

interviews or sizing-up of the candidates or screening interviews.

However, certain required amount of care is to be taken to ensure

that the desirable workers are not eliminated. This interview is also

46

useful to provide the basic information about the company to the

candidate.

Core Interview

It is normally the interaction between the candidate and the line

executive or experts on various areas of job knowledge, skill, talent,

etc. This interview may take place various forms like:

(a)Background information interview: This interview is

intended to collect the information which is not available

in the application blank and to check that information

provided in the application blank regarding education,

place of domicile, family, health, interest, hobbies, likes,

dislikes, extracurricular activities of the applicant.

(b)Job and probing interview: This interview aims at

testing the candidate’s job knowledge about duties,

activities, methods of doing the job, critical/problematic

areas, methods of handling those areas etc.

(c) Stress interview; This interview aims at testing the

candidate’s job behavior and level of withstanding

during the period of stress and strain. Interviewer tests

the candidate by putting him under stress and strain by

interrupting the applicant from answering, criticizing his

opinions, asking questions pertaining to unrelated areas,

keeping silent for unduly long period after he has

finished speaking etc. Stress during the middle portion

of the interview gives effective results. Stress interview

must be handled with utmost care and skill. This type of

interview is often invalid, as the interviewee’s need for a

job; his previous experience in such type of interviews

may inhibit his actual behavior under such situations.

47

(d)Panel Interview: Interviewing of candidates by one person may

not be effective as he can not judge the candidates in different

areas/skills owing to lack of knowledge and competence in multiple

disciplines and areas. Hence, most organizations invite a panel of

experts, specialized in different areas/fields/disciplines, to interview

candidates. A panel of experts interviews each candidate, judges his

performance individually and prepares a consolidated judgment based

on each expert’s judgment and weight age of each factor. This type of

interview is known as panel interview, which is more effective as an

expert in relevant areas prepares each candidate. Experts should be

cautioned against over accuracy, excessive weight age to a particular

factor, domination of other experts etc.

At what level of the

organization?

What takes place in

Mystic Monk

Designs Pvt. Ltd.?

Recommendations

Top level selection There are generally

two interviews. The

first interview takes

place with the

General manager and

the second interview

takes place with the

department head.

There should be a

panel interview. The

panels should

comprise of general

manager, department

head and the human

resource manager of

the company. It is

important to know the

human resource

management skills of

a top-level employee.

Middle level selection The selections are

generally made on

the basis of one

interview with the

There should be two

round of interviews.

The first should be a

preliminary interview

48

respective

department head.

with the human

resource manager of

that level and the

second should be with

the respective

department head.

Lower level selection There are generally

no interviews for their

selection; they are

selected on the basis

of recommendation

made by the

employment

agencies, employees

of the export house.

A preliminary

interview may be a

good option to know

about the basic

qualification, technical

skills, and attitude. A

list can be maintained

for the employees

who have future

prospects of growth,

who are willing to

undertake additional

responsibilities ,who

are very enthusiastic.

Interview Process

Interview is not a single step. It is a process consisting of several

steps. The major steps are grouped into four categories;

(a) Preparation for the interview •Appropriate type of interview

•The areas to be tested

•Type and number of interviews

•Review the information

49

(b) Conduct the interview •Open the interview

•Get complete and accurate

information

•Record observations and impressions

•Guide the interview

•Check the success of the interview

c) Close the interview

(d) Evaluate interview results

A panel of interview is preferable to individual interview. The

number of interviewers is to be decided on the basis of number and

nature of areas to be covered by the interview, number of

candidates to be interviewed and the time available for

interviewing.

Evaluation of Interview Results

The interviewer/the board of interviewers evaluate (s) the

candidates strengthens and weaknesses against the job and

organizational requirements. The evaluation is generally based on

the observations, impressions and information collected during the

course of interview. However, the final decision about the suitability

of candidate to the job is made on the basis of the results of all

selection techniques. But the interview results influence the

selection decision much more than any other technique. The

evaluation may be in descriptive form or grading form or rating

form. The interviewer has to strike a fine balance between the job

requirements and the employee values skills, knowledge etc.

50

Reference Checks

After completion of the final interview and medical examination, the

personnel department will engage in checking references.

Candidates are required to give the names of reference in their

familiar with the candidate’s academic achievement or from the

applicant’s previous employer, who is well versed with the

applicant’s job performance, and sometimes from co-workers. In

case the reference check is from the previous employer, information

for the following areas may be obtained.

They are: job title, job description, period of employment, pay and

allowances, gross emoluments, benefits provided, rate of absence,

willingness of the previous employer to employ the candidate again

etc.

Final Decision by the Line Manager Concerned

The Line manager concerned has to make the final decision whether

to select or reject a candidate after soliciting the required

information through different techniques discussed earlier. The Line

manager has to take much care in taking the final decision not only

because of economic implications and of the decisions but also

because of behavioral and social implications.

Employment

Thus, after taking the final decision the organization has to intimate

this decision to the successful as well as unsuccessful candidates.

The organization sends the appointment orders to the successful

candidates either immediately or after sometimes depending upon

its time schedule.

51

Placement

The organization, generally, decides the final placement after the

initial training is over on the basis of candidate’s aptitude and

performance during the training/probation period. Probation period

generally ranges between sic months and two years. If the

performance is not satisfactory, the organization may extend the

probation or ask the candidate to quit the job. If the employee’s

performance during the probation is satisfactory, his services will be

regularized and he will be placed permanently on a job.

Induction

“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 happily and start work”.

Lecture, handbook, film, group seminar are used to impart the

information to new employees about the environment of the job and

the organization in order to make the new employee acquaint

himself with the following heads:

a. About the company’s history;

b. About the department;

c. About the superiors, subordinates etc.

About the company

a) History, growth, organization and management, products,

market, customers etc. of the company;

b) Basic conditions of employment-hours of work, shift, holidays,

retirement benefits;

c) Pay, allowances, deductions;

52

d) Sickness rules, information-pay-sick leaves;

e) Leaves rule-casual, special, earned-holidays, vacation;

f) Work rule, work-load, use of materials, equipment, machine

g) Disciplinary rules and procedures;

h) Grievance procedure;

i) Career path, promotion channel;

j) Unions, negotiation channel;

k) Education, training and development facilities;

l) Health, safety, medical are arrangements;

m)Canteen and restaurant facilities;

n) Social benefits and welfare measures;

o) Telephone calls and correspondence;

p) Traveling and subsistence expenses;

q) Uniform, clothing;

r) Various employees- their designations – position in the

organization.

About the Department

The departmental head concerned introduces the new employee to

the important employees and describes briefly about the

department and the job. Then the supervisor concerned introduced

the employee to all the employees in the section/unit, describes in

detail the job or work, process of the production, place of the

employee’s job and its significance in the process of production, his

position in the departmental organization structure, work

53

distribution, assignment, working hours, shift, quality/standard to be

maintained, customers/users of the product/services etc.

Advantages of Induction

a. First impression matters a good deal and results in less

turnover;

b. Newcomer adjust himself to the work quickly, and it saves the

time of the supervisor;

c. Reduces employee dissatisfaction and grievances;

d. Develops a sense of belongingness and commitment.

54

PERFORMANCE APPRAISAL

Performance appraisal is a method of evaluating the behavior of

employees in the workspot, normally including both the quantitative

and qualitative aspects of job performance. Performance refers to

the degree of accomplishment of the tasks that make up an

individual’s job. Performance is always measured in terms of results

and not efforts.

Advantages of Performance Appraisal:

In order to find whether

The employee is worthy of continued employment or not

Whether he should receive a bonus, a pay rise or

promotion, his performance needs to be evaluated from

time to time.

When properly conducted performance appraisals not only

help the employee know how well he is performing but

should also influence the employee’s future level of effort,

activities, results and task direction.

Features of Performance Appraisal:

Performance Appraisal is the systematic description of an

employee’s job-relevant strengths and weaknesses

To find out how well the employee is performing the job and

establish a plan of improvement

Appraisals are arranged periodically according to a definite

plan

It is a continuous process in every large scale organization

55

The major difference between Performance Appraisal and Job

Evaluation is that the performance appraisal refers to how well an

employee is doing the assigned job; and how a job is worth to the

organization, and, therefore, what range of pay should be assigned

to the job is determined by Job Evaluation.

Uses of Performance Appraisals

1. Performance Improvement: Performance feedback allows

employee, manager, and personnel specialists to intervene

with appropriate actions to improve performance.

2. Compensation Adjustment: Performance evaluations help

decision-makers determine who should receive pay raises.

Many firms grant part or all of their pay increases and

bonuses based upon merit, which is determined mostly

through performance appraisals.

3. Placement Decisions: Promotions, transfers, and demotions

are usually based on past or anticipated performance. Often

promotions are a reward for past performance.

4. Training and Development Needs: Poor performance may

indicate the need for retraining. Likewise, good performance

may indicate untapped potential that should be developed.

5. Career Planning and Development: Performance feedback

guides career decisions about specific career paths one

should investigate.

6. Staffing Process Decisions: Good or bad performance implies

strengths or weaknesses in the personnel department’s

staffing procedures.

7. Job Design Errors: Poor performance may be a symptom of ill-

conceived job designs. Appraisals help diagnose these errors.

8. Information Inaccuracies: Poor performance may indicate

errors in job analysis information, human resource plans, or

other parts of the personnel management information

56

system. Reliance on inaccurate information may have led to

inappropriate hiring, training, or counseling decisions.

9. Feedback to Human Resources: Good/bad performance

throughout the organization indicates how well the human

resource function is performing.

Analysis

Performance Appraisal is a continuous process in every large scale

organization but unfortunately not so structured in Mystic Monk

Designs Pvt. Ltd.. With the company in the expansion mode having

two plants and one upcoming there is the need of taking placement

decisions like promotions, transfers and good staffing decisions.

The Mystic Monk Designs Pvt. Ltd.follows the Supervisor

Appraisal System. The supervisors include only the superiors of

the employee and the top management. The other superiors having

knowledge about the work of the employee and other department

heads or managers are not included in the Supervisor Appraisal

system. General practice is that immediate superiors appraise the

performance, which in turn is reviewed by the department

head/manager. This is because supervisors are responsible for

managing their subordinates and they have opportunity to observe,

direct and control the subordinate continuously. Moreover, they are

responsible for successful performance of their subordinates. The

Human Resource Manager is not even consulted by the top

management.

Recommendation

For Mystic Monk Designs Pvt. Ltd.the Performance Appraisal by

Consultants is the best-suited model:

The appraiser may be any person who has thorough knowledge

about the job content, contents to be appraised, standards of

contents, and who observes the employee while performing the job.

57

The appraiser should be capable of determining what is more

important and what is relatively less important. He should prepare

reports and make judgments without bias. Out of the typical

appraisers as Supervisors, Peers, Subordinates, Employees

themselves, Users of service and Consultants; the use of

consultants is best suited for the company. The top

management should focus on strategic planning and somehow

minor issues for hiring of labor or line managers should be given to

the consultant. However the top management must be well aware

and take help of consultants while keeping employees at middle or

top management levels.

The Consultants are engaged for appraisal when employees or

employers do not trust supervisor appraisal and management does

not trust the self appraisal or peer appraisal or subordinate

appraisal. In this situation, consultants are trained and they observe

the employee at work for sufficiently long time for the purpose of

appraisal.

Performance Appraisal Model for Mystic Monk Designs Pvt.

Ltd.- Assessment Centre Model

In this approach individuals from various departments are brought

together to spend two or three days working on an individual or

group assignment similar to ones they would be handling when

promoted. Observers rank the performance of each and every

participant in order of merit. The assessment centers are basically

meant for evaluating the potential of candidates to be considered

for promotion, training or development; they offer an excellent

means for conducting evaluation processes in an objective way. All

assesses get an equal opportunity to show their position talents and

capabilities and secure promotion based on merit. Since evaluators

know the position requirements intimately and are trained to

perform the evaluation process in an objective manner, the

58

performance ratings may find favor with majority of the employees.

A considerable amount of research evidence is available to support

the contention that people chosen by this method prove better than

those chosen by other methods. The centre enables individuals

working in low status departments to compete with people from well

known departments and enlarge their promotional chances. Such

opportunities, when created on a regular basis, will go a long way in

improving the morale of promising candidates working in less

important positions. This will also help top management to find

out the real talents who can be well utilized in the new plant

and can be delegated with higher responsibilities.

59

Obtain Top Management Commitme

Do Detailed Job Analysis

Define Dimensions to Be Assessed

Evaluate Participants and Centre Against Job Success Criteria

Provide Feedback

Select Exercises and Participants

Design Physical Facilities

Design Assessor Training Program

Train Assessors

Conduct Program

Key Elements of Performance Appraisal

Human Performance

Performance-Related Standards

Performance Appraisal

Performance Measure

Employee Feedback

Employee Records

Human Resource Decisions

60

TRAINING

Meaning

It is the set of activities that provide the opportunity to acquire and

improve the job related skills.

It is defined as the systematic modification of behavior through

learning, which occurs as a result of education, instruction, and

development and planned experience. Training is learning process-

learning is defined as more or less permanent change in behavior,

which occurs as a result of the influence of external, environmental

stimuli on the inherent, genetic disposition of the individual.

Importance of Training

Training is the most important technique of human resource

development. Organizational efficiency, productivity, progress and

development to a greater extent depend on training.

Benefits of Training

1. How training benefits the Organization

Leads to improved profitability and/or more positive

attitudes toward profit orientation

Improves the job knowledge and skills at all levels of

the organization

Improves the morale of the workforce

Aids in organizational development

Provides information for future needs in all areas of the

organization

61

Creates an appropriate climate for growth,

communication

2. Benefits to the Individual which in Turn Should Benefit The

Organization

Increases job satisfaction and recognition

Helps eliminate fear in attempting new tasks

Analysis

It is observed that employees are given some sort of On-The-Job

Training which can not be called as a proper training method. Mystic

Monk Designs Pvt. Ltd.conducts no structured training programs for

the employees. The reasons behind it are the following:

1. They find the training programs as wastage of time.

2. The labor is on the contract basis so if they are given any

training there is no surety that they will stay forever.

3. There is limited capacity to adjust them in the company.

Recommendation

The need for training is for every organization big or small, old or

newly established should provide training to all employees

irrespective of their qualification, skill, and suitability for the job etc.

Thus, no organization can choose whether or not to train employees.

Training is used continuously in every well run establishment.

The need for training arises in Mystic Monk Designs Pvt. Ltd.due to

the following reasons:

1. Organizational Viability and Transformation Process: In the

post quota scenario there is high competition for this export

manufacturing of high fashion apparels so if the company does not

62

adapt itself to the changing factors in the environment; it will lose

its market share.

3. Technological Advances: Every organization in order to survive

and to be effective should adopt the latest technology, i.e.,

mechanization, computerization and automation. Adoption of latest

technological means and methods will not be complete until they

are manned by employees possessing skills to operate them. So

Mystic Monk Designs Pvt. Ltd.must take advantage of software like

ERPS and should train the employees to enrich them in the areas of

changing technical skills and knowledge from time to time.

4. Organizational Complexity: With the emergence of increased

mechanization and with the extension of operations to various

regions of the NCR, and extension in new overseas markets the

company must have a structure to train its employees.

Training Methods Recommended For Mystic Monk Designs Pvt. Ltd.:

1. Job Rotation: This type of training involves the movement of

the trainee from one job to another. The employees in

departments like production and quality should be trained

about all the processes in the particular departments.

2. Job Instruction: This method is also known as training through

step by step. Under this method the trainer explains the

trainee the way of doing the jobs, job knowledge and skills

and allows him to do the job. The line manager can teach the

assembly line operator and similarly the senior merchandiser

may direct the assistant merchandiser.

3. Conference or Discussion: It is an Off-the-Job training method

to train the professional and supervisory personnel. This

method can be beneficial in Mystic Monk Designs Pvt.

Ltd.where people can pose ideas to improve quality and

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productivity. It can be a good platform for both merchandising

and production personnel to solve problems existing amongst.

4. Training Aids: Films, slides, Projections, Movies, Stills can be

shown to all the employees to improve their personality and

working styles.

64

WAGE AND SALARY AND INCENTIVE

STRUCTURE OF THE ORGANIZATION

The Company Mystic Monk Designs Pvt. Ltd.based in Gurgaon follow

the pay structure broadly on the following occupational groupings:

Managerial and Professional: Top, middle and junior

Technical/supervisory

Administrative and clerical

Manual (workers): Highly skilled, unskilled

By definition the wage means all remuneration (express or implied)

capable of being expressed in terms of money including all

allowances, prerequisites, concessions and commissions. The wage

structure is divided into three components:

The basic wage

The variable dearness allowance

he other allowances and incentives

The basic wage of 60%, 25% house rent allowance and 15% of

conveyances are provided by the company. The basic wage is fixed

as price for labor/services rendered. The following is the set of

criteria, which the company follows for basic wage as per the Fair

Wages Committee (1948)

The experience involved

The degree of skill

The responsibilities undertaken and also

The salary and incentives provided by the previous company.

65

This last criterion is for recruiting the Senior Merchandisers

and Senior Production Managers.

For the Technical and Worker class the technical knowledge is the

primary criteria of deciding the payment. The Payment by Results

is another system of linking workers' earnings to a measure of

performance.

The salaries to all the occupational groupings are paid on the

monthly basis.

The company provides the following allowances: Car, Cellular phone,

Conveyance/Transport, Medical allowances, Overtime, Provident

Fund, ESIS, Family, and Uniform. The ESIS provides benefits to

employees in case of sickness, maternity, employment injury and

related matters. These allowances have been recommended by the

Fourth Central Pay Commission (1986) and the High Powered Pay

Commission (1988).

The Provident Fund is given to people with salary below Rs. 6500

and the ESI given is to those with salary above Rs.7500.

Social Security Legislation Abided by the Company and

Additional Benefits.

Pay and benefit are important elements in Human Resource

Management. The policies and programs are affected by the

theoretical, public policy, labour market situation, and pressure from

unions and strongly by legal framework.

The additional benefits or Fringe Benefits are the non-wage

benefits offered by the company to its employees. They represent a

"substantial cost expense to the employer and a cost saving to the

employee". The key consideration is to attract and retain

employees.

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Attendance Bonus: to encourage punctuality and reduce

absenteeism

Concern for Security: As individual has been progressively

replacing Joint Family System with the nuclear family so for

old age and other emergencies Provident Fund, Gratuity and

Pension are provided by the company.

Social Security

Hazards of Industrial Life: To avoid occupational disease

caused by the very fine fibers during cutting of fabric the

masks are provided.

For minor accidents there is a clinic in the manufacturing unit

and for major accidents the workers are taken to nearby

hospital and are given compensation for the loss.

For Senior Merchandiser and the Sr. Production Manager the

company provides car, cellular phone, travel allowance and

house rent.

Methods adopted for fixation of salary

Various factors affecting wages/salary level

1 Remuneration in comparable industries

2 Firms ability to pay

3 Cost of living

4 Productivity

5 Union pressure and strategies

6 Government legislations

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Firm’s ability to pay

Productivity in organization

Expenses industry has to bear

Certain trend in price of product/services-charged by industry.

Total cost of employees (salaries, allowances, cost of fringe

benefit).

The strong financial situation is directly related to the higher wages

for the employee

Cost of living

Purchasing power maintained at same level. Wages have to

be fixed-cost of living

Productivity

The major factor for increase in the productivity is increase in the

employee’s satisfaction, which brings about an increase in their

contribution to organization.

Government legislation

Minimum Wage Act 1948 provides the following:

Minimum wages in certain employment

Minimum time rate

Minimum piece rate

Guaranteed time rate

Over time rate

Basic pay and DA (Dearness Allowance)

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Method adopted for fixation of Salary

1 Time wages

Where basic wage is linked to time for which the worker works, it is

called time rate wage.

The wage becomes payable the moment the worker puts in work for

a given period of time. In the case of operatives, the time generally

is a day of eight hrs while for staff it is one month.

Observed advantages of using time wage system

Time wage gives the worker a sense of security

Worker can devote themselves to the job with great care and

attention.

When the workers are paid some fixed time rate, they will try

to avoid over speeding and consequent damage to the

machinery

It is simple to calculate.

If the production is standardized the productivity of individual

worker can be measured.

When production is not carried on in a large scale and modern

techniques of production are not employed time wage system is not

suitable.

Time wage –generally acceptable to trade unions

Disadvantage of time wage system

1 Efficiency and payment are not correlated

2 There is no motivation

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3 There will be variation the average cost of production

which create difficulties in calculating cost of production

4 Job security offered to the employees may lead to lesser

production

Components of wages

1 Basic wage

2 Dearness allowance

3 Incentive wages

4 Other allowances

Basic wage is dependent on the nature of one’s work if that

determine wage fixation:

1 Education

2 Skill

3 Experience

4 Stress strain

5 Hazard

The amount of wages has a direct relationship with the stress and

strain involved in a job. In some cases, basic wages are fixed for

every job, while in others these are fixed for groups like unskilled,

semiskilled, skilled etc. In all cases generally a minimum wage is

fixed for the lowest category of unskilled work and others are fixed

correlating it. Minimum wages are also fixed on bases of minimum

requirement of family.

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ANALYSIS OF THE FLAWS IN THE WAGE AND SALARY

STRUCTURE OF MYSTIC MONK DESIGNS PVT. LTD.

Employee pay and benefits make up a considerable proportion of

most organizations' total costs, and is one of the main attractions

for job seekers. It can also be a main motivating or de-motivating

factor for current employees. As such, devising and running a

reward strategy to attract and retain the right caliber of

employees should be one of the most important roles for the HR

department.

One of the components of pay is incentives and benefits. Incentives

play an important role for motivating an individual to perform his

job. The basis upon which incentives are determined and the way in

which they are administered can have a significant impact upon

employee morale and productivity and thus the achievement of the

organizational goal. Incentives attempt to relate rewards directly to

performance. Rewarding for merit not only improves the morale and

productivity of the employees but it also helps to retain them in the

organization. Monetary as well as non-monetary rewards are useful

for motivating the employees. Some people who are money

motivated especially lower level employees, monetary incentives

can play an important role to increase their efficiency in terms of

both quantity and quality. Mystic Monk Designs Pvt. Ltd.,

however, does not follow any incentive plan for its

employees. They just pay bonus to the employees once a year.

One of the major requirements of all the export houses is to

deliver their goods on time. For this they require to produce

goods at a faster rate. For that the piece rate system could

work well for the export house. However the lower level

workers that are tailors are paid on the monthly basis. But if

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they are paid on the basis of piece rate the output could be

increased.

Suggestive Improvements

Comparing pay to the labor market. Salaries are also

decided according to the demand and supply of the labour in

the market. Before fixing the pay rolls it would prove to be

beneficial for the company to take these factors into

considerations and also compare their salary structure with

the other similar organizations. They will usually be happy to

tell you because they want to have the benefit of your data

just as much as you would like theirs.

Manage internal equity. Managing internal equity is more

important than external equity. An employee is much more

likely to know the salary of the person in the office next to him

or her, than the salary of a person at another company. Also,

the employee will have a better basis for salary comparison

because he or she has a better idea of what that employee's

job and job performance is. All this creates a much higher

potential for morale problems and turnover. You manage

internal equity by paying people within a salary range, and by

paying for performance. Sometimes internal equity will tell

you not to provide an employee with a salary increase, but

business necessity (the employee is leading a key project and

is threatening to leave) may lead you to decide to provide the

salary increase. In the short run this may be the right answer,

but in the long run it can be costly.

Link pay with job performance. Those employees who

perform their jobs better should receive larger salary

increases than those who do not. The organization needs to

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do is establish an adequate performance appraisal system and

establish a merit pay system. There are many good examples

of merit pay systems in the marketplace ranging from

structured to informal. Variable pay systems are growing in

popularity and can provide an excellent link between pay and

job performance.

Giving incentives to improve quality. Mystic Monk Designs

Pvt. Ltd.doesn’t provide for any incentives. However the

company can put an incentive program like paying more to

the workers who produce less defected garments. Also the

upper level employees can be given incentive for proper and

timely execution of each order.

Gain sharing. The company can put such plan to improve

productivity and efficiency. Gain sharing plans will allow

employees to share in productivity gains in accordance with a

pre-determined target. Typically the plans can be established

with participant involvement and are can be designed for

specific work groups (production department or

merchandising department), but company-wide programs can

also exist.

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HUMAN RELATIONS

Importance of Understanding Human Relations

Every employee is different from other so a manager must

understand what causes this difference and how to cope with

certain problems created because of the association of all these

different individuals.

Human Relations has been rightly defined in the words of Lee,

“human relations are the medium through which both employees

and the company mutually cooperate for the maximum satisfaction

of the economic, social, psychological wants of the people having

relation with an organization which has the objective of increasing

productivity”.

Measures to Maintain Sound Human Relations

Frankness clears the misunderstanding and restores the good

relation.

Effective communication improves the relations among

people. Disputes can be effectively handled only when

manager is effective in communication.

By developing sensitivity to others’ feelings and an ability to

appreciate others’ ideas.

By becoming a good leader the manager can bring cohesion in

the group he leads and thus can contribute to the

improvement of human relations.

By praising the subordinates publicly even for the slight

improvement. But do not do this with over ambition.

By helping the people perform their duties.

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Understanding People: In order to understand people one must

know the fundamentals of human behavior. This knowledge helps

the manager to understand that why people react in a certain way,

their wants and drives.

Concept of Personality

The behavior of any person partly depends on what he feels and

thinks about him and partly on how he views the world and others.

Thus Personality is sum total of all the physical, mental, emotional

and social characteristics of a person.

Human Behavior Is Caused

Every human action has a cause. The cause of a person’s action is

the result of an interaction between a stimulus and the person’s

perception of that stimulus. This perception is determined by his

background, personality, circumstances that he is in and his earlier

experience in life.

If the manager understands all these factors, he can be rational in

his behavior instead of being emotional.

Motivation

Meaning

Motivation is derived from the word motive. A motive is an inner

state that energizes, activates or moves and directs or channels

behavior towards goals.

It is defined as the degree of readiness of an organization to pursue

some designated goal and implies the determination of the nature

and locus of the forces, including the degree of readiness.

Needs Drives Goals/Incentives

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(Deficiency) (Deficiency with Direction) (Reduction of

drives)

The Basic Motivation Process

Types of Motives

Primary Motives: These motives are unlearned and physiologically

based. They include hunger, sleep, and avoidance of pain, sex, and

maternal concern.

General Motives: These motives are unlearned but not

physiologically based. They include curiosity, manipulation and

activity motives and the affection motive.

Secondary Motives: These are closely tied to the learning concept. A

motive must be learned in order to be included in the secondary

classification. Important among them are: achievement, affiliation,

power, security, status and immediate feedback.

Analysis

In today’s fast paced and cut throat competition world every person

is bothered with some kind of depression and frustration. The work

culture in Mystic Monk Designs Pvt. Ltd.is not deprived of it too.

Being the suppliers of High fashion garments the employees are

under constant pressure of meeting the deadlines of shipment.

Though the company pays well to all its employees meeting their

Physiological and Security needs but it need to provide all its

employees Acceptance or Affiliation and Esteem Needs (Maslow’s

Theory of Hierarchy of Needs).

Recommendation

In order to motivate people positively the employees at all the levels

of management can be rewarded financially. Monetary motivation

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may include different incentives, wage plans, productive bonus

schemes etc.

Non monetary motivation may include praise of work, participation

in management and social recognition in form of annual family

gatherings in the company.

Organizational Communication

Raymond V. Leisker has described four factors that influence the

effectiveness of communication.

1. The formal channels of communication

2. The organizations’ authority structure

3. Job specifications, and

4. Information Ownership

The organizational communication can be formal or informal.

Formal communication is an official communication having

official support and sanction. Formal communication flows

through the authority and responsibility channels of an

organization which exists in order to:

Measure and control outputs

To coordinate complex activities in the system and relate

the sub system to the total systems

To regulate response to external environment

Coordinate resource allocations

Create a climate within which the organization can adjust

its output as it receives; and process feedback

The advantages of formal communication include:

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Providing correct information

Having official support with authority

Handling of message efficiently

The drawbacks include:

Delay in sending immediate information to official

channels

Absence of immediate feedback

Lack of ability to communicate upward

Similarly Informal Communication suffers from various

drawbacks:

It sometimes spread wrong information and rumours

It distorts information

It overlooks superiors

Analysis

Mystic Monk Designs Pvt. Ltd.lacks proper software to integrate the

whole value chain right from shop floor to the cabin of the top

management. The intra communication is aided by Local Area

Network, e-mail between the merchandising department.

Recommendation

There is need to have an Enterprise Resource Planning System to

know about the profile of every employee of the company right from

gateman to top manager. Such a system also helps in knowing the

requirement of candidates at any post.

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FRINGE BENEFITS

The term fringe benefits refer to various extra benefits provided to

employee, in addition to the compensation paid in the form of wage

or salary. Balcher defines these benefits as, “any wage cost not

directly connected with the employees’ productive effort,

performance, service or sacrifice”. Cockmar, defined fringe benefit

as, “ those benefits which are provided by an employer to or for the

benefit of an employee and which are not in the form of wages,

salaries and time related payment”.

Fringe benefits are those monetary and non9monetary benefits

given to the employees during and post-employment period, which

are connected with employment but not to the employees’

contribution to the organization.

List of Fringe Benefits that should be offered by “Mystic Monk

Designs Pvt. Ltd.”

(Though the company offers most of the fringe benefits the

following list contains all the fringe benefits that are supposed to be

offered by the company:

1. For Employment Security: Benefits under this head include

unemployment insurance, technological adjustment pay,

leave travel pay, overtime pay, leave for negotiation, leave for

maternity, leave for grievances, holiday, cost of living bonus,

call back pay, lay-off pay, retiring rooms, jobs to

sons/daughter of the employees and the like.

2. For Health Protection: Benefits under this head include

accident insurance, disability allowance, health insurance,

79

hospitalization, life insurance, medical care, sick benefits sick

leave etc.

3. For Old Age and Retirement:

4. For Personnel Identification, Participation and

Stimulation:

5. Payment for Time Not Worked,

6. Extra Pay for Time Worked

Payment for Time not Worked: This category includes:

a. Hours of work:

b. Paid holiday;

c. Shift premium;

d. Holiday pay;

e. Paid vacation.

Employees Security: Physical and job security to the employee

should be also provided with a view to promoting security to the

employee and his family members:

a. Retrenchment Compensation: Industrial disputes Act 1947

provides for the payment of compensation in case of lay-off

and retirement.

b. Lay-off compensation :In case of lat-off, employees are

entitled to lay0off compensation at the rate of 50% of the total

of the basic wage and dearness allowance for the period of

lay-off except weekly holidays.

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Safety and Health: Employee’s safety and health should be taken

care of in order to protect the employee against accidents,

unhealthy working conditions and to protect worker’s capacity.

Workmen’s Compensation: In addition to safety and health

measures, provision for the payment of compensation has also been

under Workmen’s Compensation Act, 1923.

Health Benefits: Today various medical services like hospital,

clinical and dispensary facilities are provided by organization not

only to employees but also to their family members. Employees

State Insurance Act 1948, deals comprehensively about the health

benefits to be provide. These include:

i. Sickness benefit;

ii. Maternity benefit;

iii. Disablement benefit;

iv. Medical benefit.

Voluntary Arrangements: Most of the large organizations provide

health services over and above the legal requirement to their

employees free of cost by setting up hospitals, clinics, dispensaries

and homoeopathic dispensaries.

Welfare and Recreational Facilities: These include

a. Canteens;

b. Consumer societies;

c. Credit societies;

d. Housing;

e. Legal aid;

81

f. Employee counseling;

g. Welfare organization;

h. Holiday homes;

i. Educational facilities;

j. Transportation;

k. Parties and picnics; and

l. Miscellaneous.

Old Age Retirement Benefits

Industrial life generally breaks family system. The saving capacity of

the employee is very low due to lower wages, high living cost and

increasing aspirations of the employees and his family members. As

such, employer provides some benefits to the employees, after

retirement and during old age, with a view to create a feeling of

security about old age. These benefits include:

a. Provident fund;

b. Pension;

c. Deposit linked insurance;

d. Gratuity and

e. Medical benefit.

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CONCLUSION

We conclude this report by providing our model of organization

structure. There will be all together twelve people working in the

human resource department. Human resource department is

pervasive at all levels of the organization. There will be four junior

human resource managers taking care of all the role and

responsibilities in relation to lower level job position and the

employees.

Human Relations has been rightly defined in the words of Lee,

“human relations are the medium through which both employees

and the company mutually cooperate for the maximum satisfaction

of the economic, social, psychological wants of the people having

relation with an organization which has the objective of increasing

productivity”.

83

Such an organization structure will enable “Mystic Monk Designs

Pvt. Ltd.” to grow in a very harmonious way.

BIBLIOGRAPHY

Human Resource Management C.B.Gupta

Human Resource Management T.N.Chabra

Exporting garments from India by Nair, Pradeep Kaul and Rajesh.

The Abolition of MFA and its impact by Martin and Will.

India’s Garment sector- a policy analysis by Mishra and Sanjeev.

Newspapers: Economic Times, Times of India, Hindustan times,

Magazines:

India Today (May 13, 1995)

Export Import Trade Flash (June 1997)

Business World.

84

85

PROJECT REPORT

ON

HUMAN RESOURCE PLANNING AND ITS RELATION TO GARMENT MANUFACTURING

At MYSTIC MONK DESIGNS PVT. LTD.

Submitted by:

ADITYA SIKANDERRoll No. K6BBA052

ASIA PACIFIC INSTITUTE OF MANAGEMENT

86

3 & 4, INSTITUTIONAL AREA, JASOLA VIHAR,NEW DELHI

87

LIST OF TABLES

Sr. no. Topics Page No.

1. Introduction 1

2. Objectives 2

3. Scope and Limitations 3

4. Research Methodology 4

5. Literature Review 5

6. Company Profile 6

7. Problem Definition 7

8. Introduction to Human Resource Management 8

9. Functions of HRM 15

10. Job Design 21

11. Human Resource planning 30

12. Recruitment 42

13. Selection 49

14. Performance appraisal 60

15. Training 66

16. Wages and salary and incentive structure of the organization

70

17. Human Relations 79

18. Conclusion 88

19. Bibliography 89

88

ACKNOWLEDGEMENT

I have had considerable help and support in making this project

report a reality.

First and foremost a gratitude goes to Mr. Rahul Rajpal (Director),

who provided me all the guidance and support in realizing the

dissertation.

I must thank the employees of the Mystic Monk Designs Pvt. Ltd.

I am grateful to all those who obliged me with their support and

helped me in converting my collection of data and information into a

research study.

At the end I would like to thank God who was always there with me

& will always be supporting me in our work.

(ADITYA SIKANDER)

89