HUMAN RESOURCE MANAGEMENT

UNIT-I

Human resource management-meaning and definition-objectives-scope-funtions.Human resources planning-definition-objectives-need and importance-Human resources planning processUNIT-IIJob analysis, job description, job specification and job evaluation-recruitment-factors affecting recruitment-sources of recuritmet-recruitment process-definition of selection-selection methods and process-placement induction

UNIT-III

Definition o training-need and importance-steps in training programme-types of training-traing methods. Wageand salary administration-objectives and principles of wageand salaryadministration-components-methods of wage payments.

UNIT-IV

Performance appraisal-meaning and methods of performance appraisal-defiition and objectives of workers participation in management-forms and advantages.

UNIT-V

Industrial relations and grievance handling – concept –scope , objective and importance-causes for poor industrial relations-remedies, meaning of grievances-causes-sources of grievance –grievance procedure –essentials of sound grievance procedure.

SUBMITTED BY

P.PADMA PRIYA

DEPARTMENT OF COMMERCE WITH CA

PARVATHYS ARTS AND SCIENCE COLLEGE

DINDIGUL

Human Resource Management

Meaning :Before we define HRM, it seems pertinent to first define the term ‘human resources’. In commonparlance, human resources means the people. However, different management experts have defined human resources differently. For example, Michael J. Jucius has defined human resources as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components”.

According to Leon C. Megginson “From the national point of view human resources are knowledge, skills, creative abilities, talents, and attitudes obtained in the population; whereas from the view-point of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees”.

Sumantra Ghosal considers human resources as human capital. He classifies human capita into three categories-intellectual capitals, social capital and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learningcapacity.

Social capital is made up of network of relationships, sociability, and trustworthiness Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience. Now it is clear from above definitions that human resources refer to the qualitative and quantitative aspects of employees working in an organization

Definition of human resource management:

In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved. Let us also consider some important definitions of HRM.

According to Flippo “Personnel management, or say, human resource management is the planning, organising, directing and controlling of the procurement development compensation integration, 4intenance, and separation of human resources to the end that individual, organisational and social objectives are accomplished”.

The National Institute of Personnel Management (NIPM) of India has defined human resource/personnel management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organisation of the men and women who make up an enterprise and having regard for the well-being of the individuals and of working groups, to enable them to make their best contribution to its success”.

According to Decenzo and Robbins “HRM is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing

their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true, regardless of the type of organisation-government, business, education, health, recreation, or social action”.

Thus, HRM can be defined as a process of procuring, developing and maintaining competent human resources in the organisation so that the goals of an organisation are achieved in an effective and efficient manner. In short, HRM is an art of managing people at work in such a manner that they give their best to the organisation for achieving its set goals.

Objectives:

The primary objective of HRM is to ensure the availability of right people for right jobs so as theorganisational goals are achieved effectively.

This primary objective can further be divided into the following sub-objectives:

1. To help the organisation to attain its goals effectively and efficiently by providing competent and motivated employees.

2. To utilize the available human resources effectively.

3. To increase to the fullest the employee’s job satisfaction and self-actualisation.

4. To develop and maintain the quality of work life (QWL) which makes employment in the organisation a desirable personal and social situation.

5. To help maintain ethical policies and behaviour inside and outside the organisation.

6. To establish and maintain cordial relations between employees and management.

7. To reconcile individual/group goals with organisational goals.

Werther and Davis have classified the objectives of HRM into four categories as shown in table 1.2.

Table 1.2: HRM Objectives:

Scope:

The scope of HRM is, indeed, very vast and wide. It includes all activities starting from

manpower planning till employee leaves the organisation. Accordingly, the scope of HRM

consists of acquisition, development, maintenance/retention, and control of human resources in

the organisation (see figure 1.1). The same forms the subject matter of HRM. As the subsequent

pages unfold, all these are discussed, in detail, in seriatim.

The National Institute of personnel Management, Calcutta has specified the scope of HRM as follows:

1. The Labour or Personnel Aspect:

This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay-off and retrenchment, remuneration, incentives, productivity, etc.

2. Welfare Aspect:

It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining, grievance anddisciplinary actions, settlement of disputes, etc.

Functions:We have already defined HRM. The definition of HRM is based on what managers do. The functions performed by managers are common to all organizations. For the convenience of study,the function performed by the resource management can broadly be classified into two categories, viz.

(1) Managerial functions, and

(2) Operative functions

These are discussed in turn.

(1) Managerial Functions:

Planning:

Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them. Thus planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend on planning function.

Organising:

Organising is a process by which the structure and allocation of jobs are determined. Thus organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.

Staffing:

TOs is a process by which managers select, train, promote and retire their subordinates This involves deciding what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standard, compensating employees, evaluating performance, counseling employees, training and developing employees.

Directing/Leading:

Directing is the process of activating group efforts to achieve the desired goals. It includes activities like getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving the goals of the organisation.

Controlling:

It is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed.

(2) Operative Functions:

The operative, also called, service functions are those which are relevant to specific department. These functions vary from department to department depending on the nature of the department Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times. These functions include procurement, development, compensation, and maintenance functions of HRM.

A brief description of these follows:

Procurement:

It involves procuring the right kind of people in appropriate number to be placed in the organisation. It consists of activities such as manpower planning, recruitment, selection placement and induction or orientation of new employees.

Development:

This function involves activities meant to improve the knowledge, skills aptitudes and values of employees so as to enable them to perform their jobs in a better manner in future. These functions may comprise training to employees, executive training to develop managers, organisation development to strike a better fit between organisational climate/culture and employees.

Compensation:

Compensation function involves determination of wages and salaries matching with contribution made by employees to organisational goals. In other words, this function ensures equitable and fair remuneration for employees in the organisation. It consists of activities such as job evaluation, wage and salary administration, bonus, incentives, etc.

Maintenance:

It is concerned with protecting and promoting employees while at work. For this purpose virus benefits such as housing, medical, educational, transport facilities, etc. are provided to the

employees. Several social security measures such as provident fund, pension, gratuity, group insurance, etc. are also arranged.

It is important to note that the managerial and operative functions of HRM are performed in conjunction with each other in an organisation, be large or small organisations. Having discussedthe scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India.

Human Resource Planning (HRP):Meaning Human Resource Planning:Human resource is the most important asset of an organisation. Human resources planning are the important managerial function. It ensures the right type of people, in the right number, at the right time and place, who are trained and motivated to do the right kind of work at the right time,there is generally a shortage of suitable persons.The enterprise will estimate its manpower requirements and then find out the sources from whichthe needs will be met. If required manpower is not available then the work will suffer. Developing countries are suffering from the shortage of trained managers. Job opportunities are available in these countries but properly trained personnel are not available. These countries try to import trained skill from other countries.In order to cope human resource requirements, an enterprise will have to plan in advance its needs and the sources. The terms human resource planning and manpower planning are generallyused interchangeably. Human resource planning is not a substitute for manpower planning. Rather the latter is a part of the former i.e., manpower planning is integrated with human resource planning.Definition Human Resource Planning:Important definitions of human resource planning are discussed here to understand the concept in right perspective:According to E.W. Vetter, human resource planning is “the process by which a management determines how an organisation should make from its current manpower position to its desired manpower position.:Through planning a management strives to have the right number and the right kind of people at the right places, at the right time to do things which result in both the organisation and the individual receiving the maximum long range benefit.”Dale S. Beach has defined it as “a process of determining and assuring that the organisation will have an adequate number of qualified persons available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.”In the words of Leon C. Megginson, human resource planning is “an integration 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 tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.”On the analysis of above definitions, human resource planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organisation plans, and foreseeing the

possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resource management.Here, human resource means skill, knowledge, values, ability, commitment, motivation etc., in addition to the number of employees. Though accomplishment of organisational objectives and goals is the primary concern of the human resource planning, concern for the aspirations of the people and their well-being has equal importance in it. In fact, the human resources planning must result in humanisation of work environment.

Human Resource Planning is a systematic process of forecasting both the prospective demand for and supply of manpower, and employment of skills with the objectives of the organization. It can also be termed as the method of reviewing the manpower necessities to ensure that right kindof skills is made available to the organization.

The main purpose of HRP is to set the goals and objectives of the company. In other words, it is to have the precise number of employees, with their skills matching the requirements of the organization, so that the organization can move towards its goals.

Objectives of Human Resource Planning:The following are the important objectives of human resource planning in an enterprise: 1. making assessment human resource requirements for future and making plans for recruitment and selection.

2. Assessing skill needs in future.

3. Determining training and development needs of the enterprise.

4. To assess the surplus or shortage of human resources and avoiding unnecessary dismissals.

5. To minimize imbalances caused due to non-availability of human resources of right kind, rightnumber in right time and at the right place.

6. Ensuring optimum use of existing human resources in the enterprise.

7. Keeping the enterprise ready to meet with the technological development and modernisation.

8. Controlling wage and salary costs.9. Ensuring higher labour productivity.10. Ensuring career planning of every employee of the enterprise and making succession programmes.The main objective of having human resource planning is to have an accurate number of employees required, with matching skill requirements to accomplish organisational goals.In other words, the objectives of human resource planning are to:1. Ensure adequate supply of manpower as and when required.2. Ensure proper use of existing human resources in the organisation.3. Forecast future requirements of human resources with different levels of skills.4. Assess surplus or shortage, if any, of human resources available over a specified period of time.

5. Anticipate the impact of technology on jobs and requirements for human resources.

6. Control the human resources already deployed in the organisation.7. Provide lead time available to select and train the required additional human resource over a specified time period.According to Sikula “the ultimate purpose/objective of human resource planning is to relate future human resources to future enterprise need so as to maximise the future return on investment in human resources”.

Need and Importance of HRP:

The need for human resource planning in organisation is realised for the following reasons:

1. Despite growing unemployment, there has been shortage of human resources with required skills, qualification and capabilities to carry on works. Hence the need for human resource planning.

2. Large numbers of employees, who retire, die, leave organisations, or become incapacitated because of physical or mental ailments, need to be replaced by the new employees. Human resource planning ensures smooth supply of workers without interruption.

3. Human resource planning is also essential in the face of marked rise in workforce turnover which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal fluctuations in business are the examples of factors leading to workforce turnover inorganisations. These cause constant ebb and flow in the work force in many organisations.

4. Technological changes and globalisation usher in change in the method of products and distribution of production and services and in management techniques. These changes may also require a change in the skills of employees, as well as change in the number of employees required. It is human resource planning that enables organisations to cope with such changes.

5. Human resource planning is also needed in order to meet the needs of expansion and diversification programmes of an organisation.

6. The need for human resource planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other areas of organisation. Conversely, in case of shortage of personnel, it can be made good by downsizing the work force.

Human resource planning is important to organisation because it benefits the organisation in several ways.

The important ones are mentioned below:

1. Human resource planning meets the organisation need for right type of people in right number at right times.

2. By maintaining a balance between demand for and supply of human resources, human resource planning makes optimum use of human resources, on the one hand, and reduces labour cost substantially, on the other.

3. Careful consideration of likely future events, through human resource planning might lead to the discovery of better means for managing human resources. Thus, foreseeable pitfalls might be avoided.

4. Manpower shortfalls and surpluses may be avoided, to a large extent.

5. Human resource planning helps the organisation create and develop training and succession planning for employees and managers. Thus, it provides enough lead time for internal successionof employees to higher positions through promotions.

6. It also provides multiple gains to the employees by way of promotions, increase in emoluments and other perquisites and fringe benefits.

7. Some of the problems of managing change may be foreseen and their consequences mitigated.Consultations with affected groups and individuals can take place at an early stage in the change process. This may avoid resistance for change.

8. Human resource planning compels management to asses critically the strength and weaknessesof its employees and personnel policies on continuous basis and, in turn, take corrective measures to improve the situation.

9. Through human resource planning, duplication of efforts and conflict among efforts can be avoided, on the one hand, and coordination of worker’s efforts can be improved, on the other.

10. Last but no means the least, with increase in skill, knowledge, potentialities, productivity andjob satisfaction, organisation becomes the main beneficiary. Organisation is benefitted in terms of increase in prosperity/production, growth, development, profit and, thus, an edge over its competitors in the market. Processes of human resource planning:Human resource (HR) planning or manpower planning is a continuous process. The human resource manager is required to revise the employment policies from time to time for achieving the best results. Human resource planning/ manpower planning process involve the following steps:-1. Objectives of human resource planning: human resource planning must be matched with overall organizational plans. It should be concerned with filling future vacancies rather than matching existing personnel with existing jobs.2. Current manpower stock:

Current manpower stock must be continuously maintained by every department. Manpower inventory must have the detailed bio data of each individual . this record not only help in employee development but also in the finding out the surplus/ shortage of manpower.3. Demand/ supply forecasting: firstly the organization must check the demand of manpower after every one year, two-year so on. For this purpose employment trends to show the number of employees on payroll during last say three years to show the trend.Replacement needs arise due to the death, retirement or termination of the employees.Growth and expansion helps in creating a number of positions at work place.After the demand forecasting it is also important to check the supply of the different type of personnel for this purpose human resource audit, replacement charts can be prepared.4. Determining net requirement: human resource manager must check the demand and supply of the manpower before deriving atany conclusion.5. Redeployment and redundancy: in redeployment the surplus employees in one department can be transferred to another department where deficit of employees estimated and in case of redundancy where surplus employees can not be redeployed they can be offered voluntary retirement scheme.6. Employment programme: here it is required to prepare programmes of recruitment, selection, transfer and promotion to achieve organization goal.7. Training and development: it is very necessary for the employees to keep them updated in the job they are doing.8. Evaluation of Human resource planning: after doing all the above steps it is necessary to evaluate the effectiveness of human resource planning.Thus, the above mentioned steps are important steps for the process of human resource planning.

UNIT-2

Job Analysis: Concept, Uses and Process of Job Analysis

Concepts:

Before we proceed to explain the concept of job analysis, let us first understand the meaning of the term ‘job’ itself

Job:

In simple words, a job may be understood as a division of total work into packages/positions. According to Dale Yoder ‘, “A job is a collection or aggregation of tasks, duties and responsibilities which as a whole, is regarded as a regular assignment to individual employees and which is different from other assignments”. Thus, a job may be defined as a group of positions involving some duties, responsibilities, knowledge and skills.

Each job has a definite title based on standard trade specialisations within a job. Each job is different from other jobs like peon, clerk, supervisor, and accountant, manager, etc. A job may include many positions. A position is a particular set of duties and responsibilities regularly assigned to an individual.

Job Analysis:

Job analysis refers to the process of collecting information about a job. In other words, it refers to the anatomy of the job. Job analysis is performed upon ongoing jobs only. It contains job contents. For example, what are the duties of a supervisor, grade II, what minimal knowledge, skills and abilities are necessary to be able to adequately perform this job? How do the requirements for a supervisor, grade II, compare with those for a supervisor, grade I? These are the questions that job analysis answers.

Let us consider a few important definitions of job analysis.

According to Jones and Decothis “Job analysis is the process of getting information about jobs: specially, what the worker does; how he gets it done; why he does it; skill, education and trainingrequired; relationship to other jobs, physical demands; environmental conditions”.

Edwin B. Flippo has defined job analysis as the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications”.

In the opinion of Herbert G. Hereman III, et. al., “A job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service provided by the organisation. Each job has certain ability requirements (as well as certain rewards) associated with it. Job analysis is the process used to identify these requirements”. Now, job analysis can be defined as an assessment that describes jobs and the behaviours necessary to perform them.

There are two major aspects of job analysis:

These are:

1. Job Description

2. Job Specification

A brief description of these follows:

Job Description:

Job description is prepared on the basis of data collected through job analysis. Job description is a functional description of the contents what the job entails. It is a narration of the contents of a

job. It is a description of the activities and duties to be performed in a job, the relationship of the job with other jobs, the equipment and tools involved, the nature of supervision, working conditions and hazards of the job and so on.

All major categories of jobs need to be spelled out in clear and comprehensive manner to determine the qualifications and skills required to perform a job. Thus, job description differentiates one job from the other. In sum, job description is a written statement of what a job holder does, how it is done, and why it is done.

Purposes of Job Description:

Job description is done for fulfilling the following purposes:

1. Grading and classification of jobs

2. Placement and Orientation of new employees

3. Promotions and transfers

4. Outlining for career path

5. Developing work standards

6. Counselling of employees

7. Delimitation of authority

Job Specification:

While job description focuses on the job, job specification focuses on the person i.e, the job holder. Job specification is a statement of the minimum levels of qualifications, skills, physical and other abilities, experience, judgment and attributes required for performing job effectively. In other words, it is a statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job. It sets forth the knowledge, skills and abilities required to do the job effectively.

Job specification specifies the physical, psychological, personal, social and behavioural characteristics of the job holders. These contents of the job specification are contained in Table

Usages of Job Specification: The usages of job specification include:

1. Personnel planning

2. Performance appraisal

3. Hiring

4. Training and development

5. Job evaluation and compensation

6. Health and safety

7. Employee discipline

8. Work scheduling

9. Career planning

Contents of Job Description and Job Specification:

The contents of job description and job specification are presented in the following Table

Job Evaluation:

Job evaluation is a comparative process of establishing the value of different jobs in a hierarchical order. It allows one to compare jobs by using common criteria to define the relationship of one job to another. This serves as basis for grading different jobs and developing a suitable pay structure for them.

It is important to mention that job evaluation cannot be the sole determining factor for deciding pay structures because job evaluation is about relationships, and not absolutes. The techniques used for job evaluation include ranking, job classification, points rating, etc.

Why job analysis? (Uses):

Job analysis is useful for overall management of all personnel activities.

The same is specified as follows:

1. Human Resource Planning:

The estimates the quantity and quality of people will be required in future. How many and what type of people will be required depends on the jobs to be staffed. Job-related information available through job analysis is, therefore, necessary for human resource planning.

2. Recruitment and Selection:

Recruitment succeeds job analysis. Basically, the goal of the human resource planning is to match the right people with the right job. This is possible only after having adequate information about the jobs that need to be staffed. It is job analysis that provides job information. Thus, job analysis serves as basis for recruitment and selection of employees in the organisation.

3. Training and Development:

Job analysis by providing information about what a job entails i.e., knowledge and skills requiredto perform a job, enables the management to design the training and development programmes toacquire these job requirements. Employee development programmes like job enlargement, job enrichment, job rotation, etc.

4. Placement and Orientation:

As job analysis provides information about what skills and qualities are required to do a job, the management can gear orientation programmes towards helping the employees learn the required skills and qualities. It, thus, helps management place an employee on the job best suited to him/her.

5. Job Evaluation:

The job evaluation refers to determination of relative worth of different jobs. It, thus, helps in developing appropriate wage and salary structures. Relative worth is determined mainly on the basis of information provided by job analysis.

6. Performance Appraisal:

Performance appraisal involves comparing the actual performance of an employee with the standard one, i.e., what is expected of him/her. Such appraisal or assessment serves as basis for awarding promotions, effecting transfers, or assessing training needs. Job analysis helps in establishing job standards which may be compared with the actual performance/contribution of each employee.

7. Personnel Information:

Increasing number of organisations maintain computerised information about their employees. This is popularly known as Human Resource Information System (HRIS). HRIS is useful as it helps improve administrative efficiency and provides decision support^ Information relating to human resources working in the organisation is provided by job analysis only.

8. Health and Safety:

Job analysis helps in identifying and uncovering hazardous conditions and unhealthy environmental factors such as heat, noise, fumes, dust, etc. and, thus, facilitates management to take corrective measures to minimise and avoid the possibility of accidents causing human injury

Process of job analysis:

Job analysis is as useful is not so easy to make. In fact, it involves a process.

Though there is no fool-proof process of making job analysis, following are the main steps involved in job analysis:

1. Organisational Job Analysis:

Job analysis begins with obtaining pertinent information about a job’. This, according to Terry is required to know the makeup of a job, its relation to other jobs, and its contribution to performance of the organisation.

Such information can be had by dividing background information in various forms such as organisation charts i.e., how the particular job is related to other jobs; class specifications i.e., thegeneral requirement of the job family; job description i.e., starting point to build the revised job description, and flow charts i.e., flow of activities involved in a particular job.

2. Selecting Representative Jobs for Analysis:

Analysing all jobs of an organisation is both costly and time consuming. Therefore, only a representative sample of jobs is selected for the purpose of detailed analysis.

3. Collection of Data for Job Analysis:

In this step, job data features of the job and required qualifications of the employee are collected.Data can be collected either through questionnaire, observation or interviews. However, due care

should be taken to select and use the method of data collection that is the most reliable in the given situation of the job.

4. Preparing Job Description:

The job information collected in the above ways is now used to prepare a job description. Job description is a written statement that describes the tasks, duties and responsibilities that need to be discharged for effective job performance.

5. Preparing Job Specification:

The last step involved in job analysis is to prepare job specification on the basis of collected information. This is a written statement that specifies the personal qualities, traits, skills, qualification, aptitude etc. required to effectively perform a job. The job analysis process discussed above is now delineated in Figure 5.1.

The following steps are followed for job analysis process:

1. Time for Conducting Job Analysis:

“Is the time ripe for conducting job analysis?” is the question human resource manager has to askhimself. He has to decide on this vital issue. It is a matter of strategy. In modern times things are changing very fast. The new competitors are entering into the business and industrial arena. Under the changed circumstances organisations have to restructure the organisational set up as a part of strategy to meet the challenges anew. This leads to job analysis. Some new jobs may be created, some eliminated or some may be combined with others.

The qualifications, skills, knowledge of computers and other potentials required to perform the job and salary structure may also change. Additional jobs may be created due to expansion, mergers and acquisitions requiring job analysis.

Employees and managers may feel that their present position requires more hard work and they need higher pay scale. This also lead to analysis of jobs to be undertaken afresh to determine the duties, responsibilities and accountabilities with knowledge, skill, talent, potential, abilities required to perform the job and salary structure to be fixed accordingly. Normally job analysis should be conducted after a regular interval of two, three or five years or any time if the need arise.

2. Collection of Information Relating to Jobs:

After deciding to conduct job analysis the first step is to collect all relevant information relating to various jobs in the organisation. The following are the ways to collect information for the purpose of job analysis.

(a) Questionnaires:

It is a widely used method of data collection. It is less costly method of collecting information about the job from the employees. A detailed questionnaire is prepared so that vital information is not missed. The questionnaires used to be distributed to the employees from whom information in respect of jobs are to be gathered.

(b) Observation:

In this method the job performers are observed while they are working. Observation may be continuous or in samples. This method is not fool proof. It is useful for the jobs involving physical activities. It provides observer the general familiarity about the job.

(c) Interviews:

The experienced employees having complete knowledge about the jobs are interviewed and the relevant information about the job and its specific activities gathered. A structured interview is most useful to collect vital information regarding the job and its performance. An interview is time consuming. An interview may be biased. To avoid this more employees are to be interviewed.

The information collected through the above ways must include the information relating to physical environment while performing job such as, temperature, noise, dirt, likelihood of accident, comforts or discomforts; social environment prevalent while performing job; financial benefits drawn such as pay scales and other incentives; the qualities, required in a person for performing the job such as skills, abilities, talent, knowledge, potential, intellect etc.

3. Preparing Job Description Forms:

The information collected in the above ways should now be used to prepare job description form.It is a document which shows the complete information describing the various activities involvedin the job. It describes how and when job is to be done and how a jobholder will do it. The separate job description forms are prepared for different jobs stored for reference.

4. Preparing Job Specifications:

The next step in the process of job analysis is to prepare job specification on the basis of collected information. The job specification is the statement declaring minimum acceptable qualifications required in a person to perform the job successfully.

5. Preparing Report:

The job analysts are appointed by organisation to do job analysis. The next step in the process of job analysis is to prepare the report on job analysis by the analyst and to submit the same to the human resource manager. The report contains the different activities of various jobs and the minimum educational qualifications, experience, training and skills required to perform them andthe recommendations.

The methods used for determining the knowledge, skill, abilities required for successful performance of the job under job analysis are the following:

1. Observation Method:

Under the method the job analyst observes the employees at work. This is the most reliable method of seeking first hand information relating to the job. The information obtained through direct observation may be verified and supplemented from the supervisor of the section.

If the employees came to know that they are being observed then they may not be natural in theirperformance. So care must be taken in this regard otherwise the information will not be accurate and may lead to distortion in job analysis. The observation may be continuous or intermittent depending upon the analyst and the nature of the job. A video film can also be prepared for observation.

2. Questionnaire Method:

Under this method the structured questionnaire is prepared and is distributed among the employees by the job analyst. This is a good and less expensive method to seek necessary information in respect of job but there is no way to take feedback.

3. Interview Method:

Under this method the workers working on the jobs and their supervisors individually are contacted and asked questions in respect of the jobs performed by them. Group interviews can also be conducted for extracting information from the employees. A care is to be taken in group interview as group dynamics may become a hurdle in effective exploration of information. This method is time consuming.

4. Daily Recording of Activities Method:

Under this method the employees are asked to record day-to-day activities in a diary. This servesas a good source of information but lot of time is required to maintain the correct information on the part of the employee. The precious time is wasted in maintaining the diaries.

5. Records Maintained by the Human Resource Department:

The records in respect of various jobs and their incumbents by the human resource department also become the source of information. The above methods of collecting information for job analysis are not mutually exclusive and none is perfect. For obtaining factual information a combination of methods may be worked out. The immediate outcome of job analysis process is job description and job specification.

Recruitment:

Meaning and definition:

Recruitment is the generating of applications or applicants for specific positions to be filled up inthe organisation. In other words, it is a process of searching for and obtaining applicants for jobs so that the right people in right number can be selected. Go through the following definitions of recruitment. These will help you understand the meaning of recruitment in a better manner.

According to Dale Yoder, “Recruitment is 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 working force”.

In the words of Werther and Davis, “Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees areselected”.

Flippo has defined recruitment as “a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation”.

According to Bergmann and Taylor “Recruitment is the process of locating, identifying, and attracting capable applicants”.

Recruitment can now easily be defined as the process of searching for and securing applicants for the various job positions which arise from time to time in the organisation.

Factors affecting recruitment:

There are a number of factors that affect recruitment.

These are broadly classified into two categories:

1. Internal Factors

2. External Factors

These are discussed one by one.

1. Internal Factors:

The internal factors also called endogenous factors are the factors within the organisation that affect recruiting personnel in the organisation. Some of these are mentioned here.

a. Size of the Organisation:

The size of an organisation affects the recruitment process. Experience suggests that larger organisations find recruitment less problematic than organisations with smaller in size.

b. Recruiting Policy:

The recruiting policy of the organisation i.e., recruiting from internal sources (from own employees) and from external sources (from outside the organisation) also affects recruitment process. Generally, recruiting through internal sourcing is preferred, because own employees know the organisation and they can well fit into the organisation’s culture.

c. Image of Organisation:

Image of organisation is another internal factor having its influence on the recruitment process ofthe organisation. Good image of the organisation earned by a number of overt and covert actions by management helps attract potential and competent candidates. Managerial actions like good public relations, rendering public services like building roads, public parks, hospitals and schoolshelp earn image or goodwill for the organisation. That is why blue chip companies attract large number of applications.

d. Image of Job:

Just as image of organisation affects recruitment so does the image of a job also. Better remuneration and working conditions are considered the characteristics of good image of a job. Besides, promotion and career development policies of organisation also attract potential candidates.

2. External Factors:

Like internal factors, there are some factors external to organisation which has their influence on recruitment process.

Some of these are given below:

a. Demographic Factors:

As demographic factors are intimately related to human beings, i.e., employees, these have profound influence on recruitment process. Demographic factors include sex, age, literacy, economic status etc.

b. Labour Market:

Labour market conditions i.e., supply and demand of labour is of particular importance in affecting recruitment process. For example, if the demand for a specific skill is high relative to its supply, recruiting employees will involve more efforts. On the contrary, if supply is more thandemand for a particular skill, recruitment will be relatively easier.

In this context, the observation made by 11PM in regard to labour market in India is worth citing: “The most striking feature in the Indian Labour market is the apparent abundance of labour – yet the ‘right type’ of labour is not too easy to find”.

c. Unemployment Situation:

The rate unemployment is yet another external factor having its influence on the recruitment process. When the unemployment rate in a given area is high, the recruitment process tends to besimpler. The reason is not difficult to seek. The number of applicants is expectedly very high which makes easier to attract the best qualified applicants. The reverse is also true. With a low rate of unemployment, recruiting process tends to become difficult.

d. Labour Laws:

There are several labour laws and regulations passed by the Central and State Governments that govern different types of employment. These cover working conditions, compensation, retirement benefits, and safety and health of employees in industrial undertakings.

Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits employment of children in certain employments. Similarly, several other acts such as Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, the Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act, 1952 deal with recruitment.

e. Legal Considerations:

Another external factor is legal considerations with regard to employment. Reservation of jobs for the scheduled castes, scheduled tribes, and other backward classes (OBCs) is the popular example of such legal consideration. The Supreme Court of India has given its verdict in favour of 50 per cent of jobs and seats. This is so in case of admissions in the educational institutions also.

Sources of Recruitment of Employees:

The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of recruitment process.

The candidates may be available inside or outside the organisation. Basically, there are two sources of recruitment i.e., internal and external sources.

Source of Recruitment

(A) Internal Sources:

Best employees can be found within the organisation… When a vacancy arises in the organisation, it may be given to an employee who is already on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organisation to work hard. The employees can be informed of such a vacancy by internal advertisement.

Methods of Internal Sources:

The Internal Sources Are Given Below:

1. Transfers:

Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

2. Promotions:

Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant may be filled up from within the organisation. A promotion does not increase the number of persons in the organisation.

A person going to get a higher position will vacate his present position. Promotion will motivate employees to improve their performance so that they can also get promotion.

3. Present Employees:

The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates.

The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility of those recommended by them and also ensure of their proper behaviour and performance.

Advantages of Internal Sources:

The Following are The Advantages of Internal Sources:

1. Improves morale:

When an employee from inside the organisation is given the higher post, it helps in increasing the morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).

2. No Error in Selection:

When an employee is selected from inside, there is a least possibility of errors in selection since every company maintains complete record of its employees and can judge them in a better manner.

3. Promotes Loyalty:

It promotes loyalty among the employees as they feel secured on account of chances of advancement.

4. No Hasty Decision:

The chances of hasty decisions are completely eliminated as the existing employees are well tried and can be relied upon.

5. Economy in Training Costs:

The existing employees are fully aware of the operating procedures and policies of the organisation. The existing employees require little training and it brings economy in training costs.

6. Self-Development:

It encourages self-development among the employees as they can look forward to occupy higher posts.

Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.

(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organisation.

(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.

(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.

Inspite of the disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism and favouritism. The employees may be employed on the basis of their recommendation and not suitability.

(B) External Sources:

All organisations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needed when expansions are undertaken.

The external sources are discussed below:

Methods of External Sources:

1. Advertisement:

It is a method of recruitment frequently used for skilled workers, clerical and higher staff. Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in large number of highly variable quality.

Preparing good advertisement is a specialised task. If a company wants to conceal its name, a ‘blind advertisement’ may be given asking the applicants to apply to Post Bag or Box Number orto some advertising agency.

2. Employment Exchanges:

Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In thepast, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

3. Schools, Colleges and Universities:

Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spotted during the course of their studies. Junior level executives or managerial trainees may be recruited in this way.

4. Recommendation of Existing Employees:

The present employees know both the company and the candidate being recommended. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

In certain cases rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favouritism, it will impair the morale of employees.

5. Factory Gates:

Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labour. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is thatthe person selected may not be suitable for the vacancy.

6. Casual Callers:

Those personnel who casually come to the company for employment may also be considered for the vacant post. It is most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

7. Central Application File:

A file of past applicants who were not selected earlier may be maintained. In order to keep the file alive, applications in the files must be checked at periodical intervals.

8. Labour Unions:

In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous fromthe management point of view because it saves expenses of recruitment. However, in other industries, unions may be asked to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

9. Labour Contractors:

This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick klin industry. The contractors keep themselves in touch with the labour and bring the workers at the places where they are required. They get commission for the number of persons supplied by them.

10. Former Employees:

In case employees have been laid off or have left the factory at their own, they may be taken back if they are interested in joining the concern (provided their record is good).

11. Other Sources:

Apart from these major sources of external recruitment, there are certain other sources which are exploited by companies from time to time. These include special lectures delivered by recruiter in different institutions, though apparently these lectures do not pertain to recruitment directly.

Then there are video films which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of company to various audiences, thus creating interest in them.

Various firms organise trade shows which attract many prospective employees. Many a time advertisements may be made for a special class of work force (say married ladies) who worked prior to their marriage.

These ladies can also prove to be very good source of work force. Similarly there is the labour market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

Merits of External Sources:

1. Availability of Suitable Persons:

Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organisation. They will also be suitable as per the requirements of skill, training and education.

2. Brings New Ideas:

The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organisation in a competitive position.

3. Economical:

This method of recruitment can prove to be economical because new employees are already trained and experienced and do not require much training for the jobs.

Demerits of External Sources:

1. Demoralisation:

When new persons from outside join the organisation then present employees feel demoralised because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.

2. Lack of Co-Operation:

The old staff may not co-operate with the new employees because they feel that their right has been snatched away by them. This problem will be acute especially when persons for higher positions are recruited from outside.

3. Expensive:

The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to be repeated.

4. Problem of Maladjustment:

There may be a possibility that the new entrants have not been able to adjust in the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have adverse effect on the working of the organisation.

Suitability of External Sources of Recruitment:

External Sources of Recruitment are Suitable for The Following Reasons:

(i) The required qualities such as will, skill, talent, knowledge etc., are available from external sources.(ii) It can help in bringing new ideas, better techniques and improved methods to the organisation.

(iii) The selection of candidates will be without preconceived notions or reservations.

(iv) The cost of employees will be minimum because candidates selected in this method will be placed in the minimum pay scale.

(v) The entry of new persons with varied experience and talent will help in human resource mix.

(vi) The existing employees will also broaden their personality.

(vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.

Recruitment Process: 5 Steps Involved in Recruitment Process

The five steps involved in recruitment process are as follows: (i) Recruitment Planning (ii) Strategy Development (iii) Searching (iv) Screening (v) Evaluation and Control.

These are depicted in Figure 6.2.

Now, a brief description of these follows:

1. Recruitment Planning:

The first step involved in the recruitment process is planning. Here, planning involves to draft a comprehensive job specification for the vacant position, outlining its major and minor responsibilities; the skills, experience and qualifications needed; grade and level of pay; starting date; whether temporary or permanent; and mention of special conditions, if any, attached to the job to be filled ”

2. Strategy Development:

Once it is known how many with what qualifications of candidates are required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates in the organisation.

The strategic considerations to be considered may include issues like whether to prepare the required candidates themselves or hire it from outside, what type of recruitment method to be used, what geographical area be considered for searching the candidates, which source of recruitment to be practiced, and what sequence of activities to be followed in recruiting candidates in the organisation.

3. Searching:

This step involves attracting job seekers to the organisation. There are broadly two sources used to attract candidates.

These are:

1. Internal Sources, and

2. External Sources

These have been just discussed, in detail, under 6.3 Sources of Recruitment.

4. Screening:

Though some view screening as the starting point of selection, we have considered it as an integral part of recruitment. The reason being the selection process starts only after the applications have been screened and shortlisted. Let it be exemplified with an example.

In the Universities, applications are invited for filling the post of Professors. Applications received in response to invitation, i.e., advertisement are screened and shortlisted on the basis of eligibility and suitability. Then, only the screened applicants are invited for seminar presentation and personal interview. The selection process starts from here, i.e., seminar presentation or interview.

Job specification is invaluable in screening. Applications are screened against the qualification, knowledge, skills, abilities, interest and experience mentioned in the job specification. Those who do not qualify are straightway eliminated from the selection process.

The techniques used for screening candidates vary depending on the source of supply and method used for recruiting. Preliminary applications, de-selection tests and screening interviews are common techniques used for screening the candidates.

5. Evaluation and Control:

Given the considerable cost involved in the recruitment process, its evaluation and control is, therefore, imperative.

The costs generally incurred in a recruitment process include:

(i) Salary of recruiters

(ii) Cost of time spent for preparing job analysis, advertisement

(iii) Administrative expenses

(iv) Cost of outsourcing or overtime while vacancies remain unfilled

(v) Cost incurred in recruiting unsuitable candidates

In view of above, it is necessary for a prudent employer to try to answer certain questions like: whether the recruitment methods are appropriate and valid? And whether the recruitment processfollowed in the organisation is effective at all or not? In case the answers to these questions are in negative, the appropriate control measures need to be evolved and exercised to tide over the situation.

However, such an exercise seems to be only rarely carried out in practice by the organisations employers. Having discussed recruitment process, it will be now relevant to have an idea about recruitment practices in India. The following section delineates the same.

Selection:

Meaning and definition

Finding the interested candidates who have submitted their profiles for a particular job is the process of recruitment, and choosing the best and most suitable candidates among them is the process of selection. It results in elimination of unsuitable candidates. It follows scientific techniques for the appropriate choice of a person for the job.

The recruitment process has a wide coverage as it collects the applications of interested candidates, whereas the selection process narrows down the scope and becomes specific when it selects the suitable candidates.

Stone defines, ‘Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job’.

Dale Yoder has defined, “Selection is the process by which candidates for employment are divided into two classes those who will be offered employment and those who will not”;M. Ataur Rahman, “Selection is the screening and filtering process of job applicants who have been invited to apply for the vacant positions through which the process comes to an end”.M.J. Jucious has defined, “The selection procedure is the system of functions and devices adopted in a given company for the purpose of ascertaining whether or not candidate possess the qualifications called for by, a specific job”.Heinz Weihrich and Harold Koontz have defined, “Selection is the process of choosing form the candidates, from within the organization or from outside, the most suitable person for the currentposition or for the future positions”Decenzo & Robbins: Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with final employment decision.

Steps Involved in Selection Procedure:

A scientific and logical selection procedure leads to scientific selection of candidates. The criterion finalized for selecting a candidate for a particular job varies from company to company.

Therefore, the selection procedure followed by different organizations, many times, becomes lengthy as it is a question of getting the most suitable candidates for which various tests are to bedone and interviews to be taken. The procedure for selection should be systematic so that it does not leave any scope for confusions and doubts about the choice of the selected candidate (Figure 5.6).

Brief details of the various steps in selection procedure are given as follows:

1. Inviting applications:

The prospective candidates from within the organization or outside the organization are called for applying for the post. Detailed job description and job specification are provided in the advertisement for the job. It attracts a large number of candidates from various areas.

2. Receiving applications:

Detailed applications are collected from the candidates which provide the necessary information about personal and professional details of a person. These applications facilitate analysis and comparison of the candidates.

3. Scrutiny of applications:

As the limit of the period within which the company is supposed to receive applications ends, theapplications are sorted out. Incomplete applications get rejected; applicants with un-matching jobspecifications are also rejected.

4. Written tests:

As the final list of candidates becomes ready after the scrutiny of applications, the written test is conducted. This test is conducted for understanding the technical knowledge, attitude and interestof the candidates. This process is useful when the number of applicants is large.

Many times, a second chance is given to candidates to prove themselves by conducting another written test.

5. Psychological tests:

These tests are conducted individually and they help for finding out the individual quality and skill of a person. The types of psychological tests are aptitude test, intelligence test, synthetic testand personality test

6. Personal interview:

Candidates proving themselves successful through tests are interviewed personally. The interviewers may be individual or a panel. It generally involves officers from the top management.

The candidates are asked several questions about their experience on another job, their family background, their interests, etc. They are supposed to describe their expectations from the said job. Their strengths and weaknesses are identified and noted by the interviewers which help themto take the final decision of selection.

7. Reference check:

Generally, at least two references are asked for by the company from the candidate. Reference check is a type of crosscheck for the information provided by the candidate through their application form and during the interviews.

8. Medical examination:

Physical strength and fitness of a candidate is must before they takes up the job. In-spite of good performance in tests and interviews, candidates can be rejected on the basis of their ill health.

9. Final selection:

At this step, the candidate is given the appointment letter to join the organization on a particular date. The appointment letter specifies the post, title, salary and terms of employment. Generally, initial appointment is on probation and after specific time period it becomes permanent.

10. Placement:

This is a final step. A suitable job is allocated to the appointed candidate so that they can get the whole idea about the nature of the job. They can get adjusted to the job and perform well in future with all capacities and strengths.

Employee Selection Methods and Process:

They have to go through a lot of pressure in selecting the best eligible candidate for a particular position.

He has to take into consideration the various criteria to determine an employee’s ability, talents, skills and qualifications.

He has to look out for an employee who would do well in times of prosperity as well as wish to be an ever relying helping hand during worse times such as a crisis situation.

Here is a guide to implement this practice and help in building out a high quality work force:

1. Ability tests:

This assessment method helps in knowing more about the employee in a direct way. It showcasesan individual’s ability in knowing how well would he turn up for the position he has been rendered to and the duties he has to cater to.

It helps in the measurement of mental abilities of an employee such as his/ her verbal, reasoning ,mathematical ability and the reading ability.

These tests include multiple choice questions and help in increasing the knowledge about a particular employee’s capability for a particular position. This test however is an very effective one in determining a person’s ability.

2. Integrity tests:

Now this test is the hardest of all. It allows the employee to show off his/her ability in a positive way so that the company chooses to select him/her.

It helps in measuring the attitude and experiences of a particular employee. It helps in relating the individual with his honesty, the art of dependability and the nature of trustworthiness.

If these factors are combined together in a positive way, then it is a sure shot green signal for the employee to be selected for a respected position in the firm.

3. Personality describing tests:

These tests are of utmost importance everywhere, be it a small start up consultancy or an already established firm.

These personality tests help in the assessment of certain traits that help in the development of an employee and help pave way to the road of success.

Every company needs a known and to the best mannered employee to help the company reach higher goals of success. It has its own traditional way of conducting the test with a paper and a pencil.

4. Data revealing bio data tests:

Every company has to choose such an employee who is and will be loyal to the company for a prolonged period of time. This can be attained only by knowing the employee’s history, his background, his work preference and many more.

Hence, a data that reveals his/her biography is conducted from the side of the employee. This testallows the employee to write about his personal characteristics, his interests, likes and dislikes and so on.

It focuses how effectively the employee has performed in the past and will perform in the near future.

5. Knowledge about the job tests:

These tests are the same like those of cognitive ability, but show a deeper meaning whilst its application.

It describes the ability of an employee in knowing about the job which he is interested to work upon. Such tests include the traditional pencil and stencil test.

Also, sometimes an essay regarding the company is asked to be written before giving a final call for a particular employee.

These tests cannot be used in a situation where in an employee has to be trained after being selected. It works only on persons who have got to be selected and trained upon in one go.

6. Structured Interview tests:

These tests are the most common and most used ones whilst conducting a test to determine an employee’s ability.

Also, it is the best used device in most of the organizations and instructions. Structured interviews consist of few specific generic questions catering to the firm.

These questions are to be answered by the employee in a structured way and that would ultimately determine his/her capability in working for that particular firm or institution.

Also, this test provides a standardized result as compared to various other tests. It helps in evaluating potential job candidates.

7. Situational tests:

Such tests determine how an individual will react in a given situation undergoing in a company.

These are the situational judgment tests that should be recommended to every single institution for application of a potential employee. It will determine in knowing how an individual will handle the situation.

Generally, crisis management is the most given situation in these tests as it showcases how well an individual handles it and leads the company in worst times too.

These tests are usually videotaped for recording an employee’s behavior during such crisis times.

8. Assessment centers:

These tests last up to a one day or even more days. These tests are the same like the work samples.

However, it focuses more on the ability of an individual employee. An employee is been called at an assessment centre, given a list of to do work to be done in a stipulated time.

And then he/she gets selected on how they have worked in this given time limit. Whether they managed to get through this deadline thereby leaving a negative impression in the minds of the employer.

9. Samples related to work:

These tests are of utmost importance in knowing how well an individual deals in a particular situation.

Work sample tests allow the individual to showcase his/ her abilities in working as a potential candidate. These tests can be called as a mirror in determining how well an employee performs in a given situation.

A certain work task is given and the individual is asked to work upon it. Later on, the task gets proofread and approved by the recruiters and this is how the employee paves way through this process directly to the institution.

10. Physical ability tests:

These tests allow the individual to showcase his/her ability in the test. These tests are less common and are not much in usage.

However, it allows the candidate to show his potentiality in terms of weight and physical ability. Hence, to pass out in this test, stability of mind and a healthy soul a fit toned body is necessary enough.

Also, this test has a specified time frame which allows the candidate to showcase his talent in a particular set of time period.

11. Realistic job previews:

These tests help in giving out a considerable amount of potential candidates from among a hundred ones.

A realistic crisis called situation is given and then the employee is asked to solve it on own. Nowthe employer has to decide how he will judge this particular candidate.

The crisis can be of the same which your company might have gone through quite a long time ago.

Now if the employee has researched well about the company then he might strike the right chord and get dealt with it in a quick and positive way.

12. Forms of the applicants:

This is the easiest and less time consuming way in picking out the best employees. Resumes are sent by all and the recruiter has to do just one job.

Look at all the resumes and cut short the best ones. Now this has to be considered in one way. It has to be divided into different sections so the best ones are picked up from among a thousand applicants.

The following criteria should be kept in mind while choosing the best resume, experience, knowledge, skills, talents, acknowledgements, references, physical ability and attitude.

13. Preliminary screenings:

Such screenings are conducted to choose the best of the employees from a plethora of the existing ones.

It is obvious that a recruiter might have short listed 50-60 applicants. Now to cut short them more and to conclude with the best applications for a particular job, the recruiter must be smart enough to chose the perfect one.

Also, this method has to be considered by keeping in mind the following possibilities; number ofyear’s experience and credentials.

This method is the most effective method in choosing among a hundred good applicants and pickup the best ones for this job.

14. Face to face interviews:

This is the toughest among all and for both the parties. Most people dislike this process as it consumes a lot of time and makes the interviewee nervous enough to blabber in front of everyone.

Also, it hits on a lot of misconceptions as the interviewer might be prejudiced and partial enough not to choose the deserving candidate because of personal issues.

He might let go off the short ones as they might be considered too pushy. The ones with beard might feel rejected because people feel that they have something in common to hide their feelings.

However, this method, if approached in the right way, opens gate for a lot of knowledgeable information to be exchanged.

15. References:

These tests are of a little importance as it does not give us the freedom to know more about the employee.

It shows how well the employee has performed in his/ her previous work places and asks the employer to determine the employee’s ability in this way.

You can ring up the contact number mentioned in the reference section and know the details about your employee. This would work either ways even. Hence, this method is least used in the selection assessment methods.

16. Group selection methods:

These methods are very common and are also very much in usage in the corporate world.

Nowadays, open ground debates and elocutions have allowed people to show off their talent in a positive way. Hence, people are now not afraid to open up in the group interviews.

It allows exchanging knowledge and valuable information that most of the people might be alienated to.

That particular group which has to be interviewed can be asked to do a presentation or an activitytogether, thereby leading to unity goals in the company.

Placement and induction:

Meaning of placement:

Placement is a process of assigning a specific job to each of the selected candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching the requirementsof a job with the qualifications of the candidate.

significance of placement:

The significances of placement are as follows: -

* It improves employee morale.

* It helps in reducing employee turnover.

* It helps in reducing absenteeism.

* It helps in reducing accident rates.

* It avoids misfit between the candidate and the job.

* It helps the candidate to work as per the predetermined objectives of the organization.

Induction:

Once an employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction.

Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and starswork.

objectives of induction:

Induction is designed to achieve following objectives:

* To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting new people in a new environment.

* To give new comer necessary information such as location of a café, rest period etc.

* To build new employee confidence in the organization.

* It helps in reducing labor turnover and absenteeism.

* It reduces confusion and develops healthy relations in the organization.

* To ensure that the new comer do not form false impression and negative attitude towards the organization.

* To develop among the new comer a sense of belonging and loyalty to the organization.

advantages of formal induction:

The advantages of formal induction are:

* Induction helps to build up a two-way channel of communication between management and workers.

* Proper induction facilitates informal relation and team work among employee.

* Effective induction helps to integrate the new employee into the organization and to develop a sense of belonging.

* Induction helps to develop good relation.

* A formal induction programme proves that the company is taking interest in getting him off to good start.

* Proper induction reduces employee grievances, absenteeism and labor turnover.

* Induction is helpful in supplying information concerning the organization, the job and employee welfare facilities.

contents of induction programme:

A formal induction programme should provide following information:

* Brief history and operations of the company.

* The company’s organization structure.

* Policies and procedure of the company.

* Products and services of the company.

* Location of department and employee facilities.

* Safety measures.

* Grievances procedures.

* Benefits and services of employee.

* Standing orders and disciplinary procedures.

* Opportunities for training, promotions, transfer etc.

* Suggestion schemes.

* Rules and regulations.

UNIT-III

Training of Employees:

Training is concerned with increasing the knowledge and skills of employees for doing specific jobs, and development involves the growth of employees in all aspects. Whereas training increases job skills, development shapes attitudes of employees.

Meaning of Training:

Training constitutes a basic concept in human resource development. It is concerned with developing a particular skill to a desired standard by instruction and practice. Training is a highlyuseful tool that can bring an employee into a position where they can do their job correctly, effectively, and conscientiously. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

Definition of Training:Dale S. Beach defines training as ‘the organized procedure by which people learn knowledge and/or skill for a definite purpose’. Training refers to the teaching and learning activities carried on for the primary purpose of helping members of an organization acquire and apply the knowledge, skills, abilities, and attitudes needed by a particular job and organization.

“Training is the act of increasing the knowledge and skills of an employee for doing a particular job.” — Edwin B. Flippo

Training is an organized activity for increasing the technical skills of the employees to enable them to do particular jobs efficiently. In other words, training provides the workers with facility to gain technical knowledge and to learn new skills to do specific jobs. Training is equally important for the existing as well as the new employees. It enables the new employees to get acquainted with their jobs and also increase the job-related knowledge and skills.

Objectives of Training:

The objectives of training are as follows:

(i) To provide job related knowledge to the workers.

(ii) To impart skills among the workers systematically so that they may learn quickly.

(iii) To bring about change in the attitudes of the workers towards fellow workers, supervisor andthe organization.

(iv) To improve the productivity of the workers and the organization.

(v) To reduce the number of accidents by providing safety training to the workers,

(vi) To make the workers handle materials, machines and equipment efficiently and thus to check wastage of time and resources.

(vii) To prepare workers for promotion to higher jobs by imparting them advanced skills.

Need and Importance of Training:

The need for training of employees arises due to the following factors:

(i) Higher Productivity:

It is essential to increase productivity and reduce cost of production for meeting competition in the market. Effective training can help increase productivity of workers by imparting the required skills.

(ii) Quality Improvement:

The customers have become quality conscious and their requirement keep on changing. To satisfy the customers, quality of products must be continuously improved through training of workers.

(iii) Reduction of Learning Time:

Systematic training through trained instructors is essential to reduce the training period. If the workers learn through trial and error, they will take a longer time and even may not be able to learn right methods of doing work.

(iv) Industrial Safety:

Trained workers can handle the machines safely. They also know the use of various safety devices in the factory. Thus, they are less prone to industrial accidents.

(iv) Reduction of Turnover and Absenteeism:

Training creates a feeling of confidence in the minds of the workers. It gives them a security at the workplace. As a result, labour turnover and absenteeism rates are reduced.

(vi) Technology Update:

Technology is changing at a fast pace. The workers must learn new techniques to make use of advance technology. Thus, training should be treated as a continuous process to update the employees in the new methods and procedures.

(vii) Effective Management:

Training can be used as an effective tool of planning and control. It develops skills among workers and prepares them for handling present and future jobs. It helps in reducing the costs of supervision, wastages and industrial accidents. It also helps increase productivity and quality which are the cherished goals of any modern organizationImportance of Training Workers and Employees

Some of the importance of Training Workers and Employees are as follows:

1. Better Performance:

Training leads to increase the skill of employee and he performs the job better than before. It improves quality of work. Training also helps in increasing the productivity. So there is an increase in quality and quantity of output.

2. Less Supervision:

The trained worker does not commit mistakes; he knows his job well. His work, therefore, requires less supervision. The supervisor can devote his time for more urgent work. A trained worker is self reliant.

3. Economy in Use of Material and Equipment:

Trained workers make better and economic use of materials and machines. Wastages are avoided. Trained workers do not cause any damage to machines and equipment because they know how to use them. So the wastage of material and damages to the machines and equipment’s are low. This helps in reducing per unit cost of production.

4. Increased Morale:

The objective of the training is to change the attitude and outlook of the workers besides increasein knowledge and skills. A trained worker’s morale increases because of the support and encouragement he gets from his superior at the workplace. His opinion is respected. Supervisor also obtains cooperation from the workers. This makes workers more loyal to the organization.

5. Uniformity and Standardization:

Training provided to workers enables uniformity in works and standardization of methods in performing the jobs. This minimizes the mistakes by the workers because they work with great care and understanding. Everything can be reengineered with the help of trained workforce and quality of the product can be substantially increased.

6. Less Learning Time:

A well planned and systematically organized training programme reduces the learning span. More time is consumed when workers learn through unsystematic and unplanned method of trial and error.

7. Effective Management:

Supervisors can easily delegate their powers to the trained personnel’s for the better managerial control.

8. Filling Human Resource Requirements:

Providing training to the personnel’s increases the skill, knowledge and talent in them. They can make themselves capable of occupying positions at higher level. Managers identify the

capabilities among the current human resources and can promote them to the higher positions. In this way the needs for human resources can be fulfilled from within the organization.

Methods of Training:

On-the-job Training Method and Off-the-Job Methods!

Management development is a systematic process of growth and development by which the managers develop their abilities to manage. It is concerned with not only improving the performance of managers but also giving them opportunities for growth and development.

There are two methods through which managers can improve their knowledge and skills. One is through formal training and other is through on the job experiences. On the job training is very important since real learning takes place only when one practices what they have studied.

But it is also equally important in gaining knowledge through classroom learning. Learning becomes fruitful only when theory is combined with practice. Therefore on the job methods can be balanced with classroom training methods (off-the-job methods).

1. On-the-job Training (OJT) Methods:

This is the most common method of training in which a trainee is placed on a specific job and taught the skills and knowledge necessary to perform it.

The advantages of OJT are as follows:

1. On the job method is a flexible method.

2. It is a less expensive method.

3. The trainee is highly motivated and encouraged to learn.

4. Much arrangement for the training is not required.

On-the-job training methods are as follows:

1. Job rotation:

This training method involves movement of trainee from one job to another gain knowledge and experience from different job assignments. This method helps the trainee understand the problems of other employees.

2. Coaching:

Under this method, the trainee is placed under a particular supervisor who functions as a coach intraining and provides feedback to the trainee. Sometimes the trainee may not get an opportunity to express his ideas.

3. Job instructions:

Also known as step-by-step training in which the trainer explains the way of doing the jobs to thetrainee and in case of mistakes, corrects the trainee.

4. Committee assignments:

A group of trainees are asked to solve a given organizational problem by discussing the problem.This helps to improve team work.

5. Internship training:

Under this method, instructions through theoretical and practical aspects are provided to the trainees. Usually, students from the engineering and commerce colleges receive this type of training for a small stipend.

2. Off-the-job Methods:

On the job training methods have their own limitations, and in order to have the overall development of employee’s off-the-job training can also be imparted. The methods of training which are adopted for the development of employees away from the field of the job are known asoff-the-job methods.

The following are some of the off-the-job techniques:

1. Case study method:

Usually case study deals with any problem confronted by a business which can be solved by an employee. The trainee is given an opportunity to analyse the case and come out with all possible solutions. This method can enhance analytic and critical thinking of an employee.

2. Incident method:

Incidents are prepared on the basis of actual situations which happened in different organizationsand each employee in the training group is asked to make decisions as if it is a real-life situation. Later on, the entire group discusses the incident and takes decisions related to the incident on the basis of individual and group decisions.

3. Role play:

In this case also a problem situation is simulated asking the employee to assume the role of a particular person in the situation. The participant interacts with other participants assuming different roles. The whole play will be recorded and trainee gets an opportunity to examine their own performance.

4. In-basket method:

The employees are given information about an imaginary company, its activities and products, HR employed and all data related to the firm. The trainee (employee under training) has to make notes, delegate tasks and prepare schedules within a specified time. This can develop situational judgments and quick decision making skills of employees.

5. Business games:

According to this method the trainees are divided into groups and each group has to discuss about various activities and functions of an imaginary organization. They will discuss and decideabout various subjects like production, promotion, pricing etc. This gives result in co-operative decision making process.

6. Grid training:

It is a continuous and phased programme lasting for six years. It includes phases of planning development, implementation and evaluation. The grid takes into consideration parameters like concern for people and concern for people.

7. Lectures:

This will be a suitable method when the numbers of trainees are quite large. Lectures can be verymuch helpful in explaining the concepts and principles very clearly, and face to face interaction is very much possible.

8. Simulation:

Under this method an imaginary situation is created and trainees are asked to act on it. For e.g., assuming the role of a marketing manager solving the marketing problems or creating a new strategy etc.

9. Management education:

At present universities and management institutes gives great emphasis on management education. For e.g., Mumbai University has started bachelors and postgraduate degree in Management. Many management Institutes provide not only degrees but also hands on experience having collaboration with business concerns.

10. Conferences:

A meeting of several people to discuss any subject is called conference. Each participant contributes by analyzing and discussing various issues related to the topic. Everyone can express their own view point.

Types of Training:

There are a number of different types of training we can use to engage an employee. These typesare usually used in all steps in a training process (orientation, in-house, mentorship, and external training). The training utilized depends on the amount of resources available for training, the type of company, and the priority the company places on training. Companies such as The Cheesecake Factory, a family restaurant, make training a high priority. The company spends an average of $2,000 per hourly employee. This includes everyone from the dishwasher and managers to the servers. For The Cheesecake Factory, this expenditure has paid off. They measure the effectiveness of its training by looking at turnover, which is 15 percent below the industry average (Ruiz, 2006). Servers make up 40 percent of the workforce and spend two weeks training to obtain certification. Thirty days later, they receive follow-up classes, and whenthe menu changes, they receive additional training (Ruiz, 2006). Let’s take a look at some of the training we can offer our employees.

As you will see from the types of training below, no one type would be enough for the jobs we do. Most HR managers use a variety of these types of training to develop a holistic employee.

Technical or Technology Training:

Depending on the type of job, technical training will be required. Technical training is a type of training meant to teach the new employee the technological aspects of the job. In a retail environment, technical training might include teaching someone how to use the computer systemto ring up customers. In a sales position, it might include showing someone how to use the customer relationship management (CRM) system to find new prospects. In a consulting

business, technical training might be used so the consultant knows how to use the system to inputthe number of hours that should be charged to a client. In a restaurant, the server needs to be trained on how to use the system to process orders. Let’s assume your company has decided to switch to the newest version of Microsoft Office. This might require some technical training of the entire company to ensure everyone uses the technology effectively. Technical training is often performed in-house, but it can also be administrered externally.

Quality Training:

In a production-focused business, quality training is extremely important. Quality training refers to familiarizing employees with the means of preventing, detecting, and eliminating nonquality items, usually in an organization that produces a product. In a world where quality can set your business apart from competitors, this type of training provides employees with the knowledge to recognize products that are not up to quality standards and teaches them what to do in this scenario. Numerous organizations, such as the International Organization for Standardization (ISO), measure quality based on a number of metrics. This organization provides the stamp of quality approval for companies producing tangible products. ISO has developed quality standards for almost every field imaginable, not only considering product quality but also certifying companies in environmental management quality. ISO9000 is the set of standards for quality management, while ISO14000 is the set of standards for environmental management. ISOhas developed 18,000 standards over the last 60 years1. With the increase in globalization, these international quality standards are more important than ever for business development. Some companies, like 3M (QAI, 2011), choose to offer ISO training as external online training, employing companies such as QAI to deliver the training both online and in classrooms to employees.

Training employees on quality standards, including ISO standards, can give them a competitive advantage. It can result in cost savings in production as well as provide an edge in marketing of the quality-controlled products. Some quality training can happen in-house, but organizations such as ISO also perform external training.

Skills Training:

Skills training, the third type of training, includes proficiencies needed to actually perform the job. For example, an administrative assistant might be trained in how to answer the phone, while a salesperson at Best Buy might be trained in assessment of customer needs and on how to offer the customer information to make a buying decision. Think of skills training as the things you actually need to know to perform your job. A cashier needs to know not only the technology to ring someone up but what to do if something is priced wrong. Most of the time, skills training is given in-house and can include the use of a mentor. An example of a type of skills training is from AT&T and Apple (Whitney, 2011), who in summer 2011 asked their managers to accelerate retail employee training on the iPhone 5, which was released to market in the fall.

Continuing Education Matters:

A small business owner explains the advantages of offering informal skills training about new products.

Soft Skills Training:

Our fourth type of training is called soft skills training. Soft skills refer to personality traits, social graces, communication, and personal habits that are used to characterize relationships withother people. Soft skills might include how to answer the phone or how to be friendly and welcoming to customers. It could include sexual harassment training and ethics training. In somejobs, necessary soft skills might include how to motivate others, maintain small talk, and establish rapport.

In a retail or restaurant environment, soft skills are used in every interaction with customers and are a key component of the customer experience. In fact, according to a Computerworld magazine survey, executives say there is an increasing need for people who have not only the skills and technical skills to do a job but also the necessary soft skills, such as strong listening and communication abilities (Hoffman, 2007). Many problems in organizations are due to a lack of soft skills, or interpersonal skills, not by problems with the business itself. As a result, HR andmanagers should work together to strengthen these employee skills. Soft skills training can be administered either in-house or externally.

Professional Training and Legal Training:

In some jobs, professional training must be done on an ongoing basis. Professional training is a type of training required to be up to date in one’s own professional field. For example, tax laws change often, and as a result, an accountant for H&R Block must receive yearly professional training on new tax codes (Silkey, 2010). Lawyers need professional training as laws change. A personal fitness trainer will undergo yearly certifications to stay up to date in new fitness and nutrition information.

Some organizations have paid a high cost for not properly training their employees on the laws relating to their industry. In 2011, Massachusetts General Hospital paid over $1 million in fines related to privacy policies that were not followed (Donnelly, 2011). As a result, the organization has agreed to develop training for workers on medical privacy. The fines could have been prevented if the organization had provided the proper training to begin with. Other types of legal training might include sexual harassment law training and discrimination law training.

A man giving a presentation to a small group

Professional training is normally given externally and is usually required for specific professions in which updates occur often, as in the accounting industry.

Team Training:

Do you know the exercise in which a person is asked to close his or her eyes and fall back, and then supposedly the team members will catch that person? As a team-building exercise (and a scary one at that), this is an example of team training. The goal of team training is to develop cohesiveness among team members, allowing them to get to know each other and facilitate relationship building. We can define team training as a process that empowers teams to improve decision making, problem solving, and team-development skills to achieve business results. Often this type of training can occur after an organization has been restructured and new people are working together or perhaps after a merger or acquisition. Some reasons for team training include the following:

Improving communication

Making the workplace more enjoyable

Motivating a team

Getting to know each other

Getting everyone “onto the same page,” including goal setting

Teaching the team self-regulation strategies

Helping participants to learn more about themselves (strengths and weaknesses)

Identifying and utilizing the strengths of team members

Improving team productivity

Practicing effective collaboration with team members

Team training can be administered either in-house or externally. Ironically, through the use of technology, team training no longer requires people to even be in the same room.

Managerial Training:

After someone has spent time with an organization, they might be identified as a candidate for promotion. When this occurs, managerial training would occur. Topics might include those from our soft skills section, such as how to motivate and delegate, while others may be technical in nature. For example, if management uses a particular computer system for scheduling, the manager candidate might be technically trained. Some managerial training might be performed in-house while other training, such as leadership skills, might be performed externally.

For example, Mastek, a global IT solutions and services provider, provides a program called “One Skill a Month,” which enables managers to learn skills such as delegation, coaching, and

giving feedback. The average number of total training days at Mastek is 7.8 per employee2 and includes managerial topics and soft skills topics such as e-mail etiquette. The goal of its training programs is to increase productivity, one of the organization’s core values.

Safety Training:

Safety training is a type of training that occurs to ensure employees are protected from injuries caused by work-related accidents. Safety training is especially important for organizations that use chemicals or other types of hazardous materials in their production. Safety training can also include evacuation plans, fire drills, and workplace violence procedures. Safety training can also include the following:

Eye safety

First aid

Food service safety

Hearing protection

Asbestos

Construction safety

Hazmat safety

The Occupational Safety and Health Administration, or OSHA, is the main federal agency charged with enforcement of safety and health regulation in the United States. OSHA provides external training to companies on OSHA standards. Sometimes in-house training will also cover safety training.

Wage and Salary Administration:

Objectives and Principles of Wage and Salary Administration :The main objective of wage and salary administration is to establish and maintain an equitable wage and salary system. This is so because only a properly developed compensation system enables an employer to attract, obtain, retain and motivate people of required calibre and qualification in his/her organisation. These objectives can be seen in more orderly manner from the point of view of the organisation, its individual employees and collectively. There are outlined and discussed subsequently:Organisational Objectives:The compensation system should be duly aligned with the organisational need and should also beflexible enough to modification in response to change.Accordingly, the objectives of system should be to: 1. Enable an organisation to have the quantity and quality of staff it requires.2. Retain the employees in the organisation.

3. Motivate employees for good performance for further improvement in performance.4. Maintain equity and fairness in compensation for similar jobs. 5. Achieve flexibility in the system to accommodate organisational changes as and when these take place.6. Make the system cost-effective.Individual Objectives:From individual employee’s point of view, the compensation system should have the following objectives:1. Ensures a fair compensation.2. Provides compensation according to employee’s worth.3. Avoids the chances of favouritism from creeping in when wage rates are assigned.4. Enhances employee morale and motivation.Collective Objectives:These objectives include:1. Compensation in ahead of inflation. 2. Matching with market rates.3. Increase in compensation reflecting increase in the prosperity of the company.4. Compensation system free from management discretion.Beach has listed the five objectives of wage and salary administration:1. To recruit persons for a firm.2. To control pay-rolls.3. To satisfy people, reduce the incidence of turnover, grievances, and frictions.4. To motivate people to perform better.5. To maintain a good public image.Principles of wage and salary administration:The main principles that govern wage and salary fixation are three:

1. External Equity

2. Internal Equity

3. Individual Worth.

1. External Equity:

This principle acknowledges that factors/variables external to organisation influence levels of compensation in an organisation. These variables are such as demand and supply of labour, the market rate, etc. If these variables are not kept into consideration while fixing wage and salary levels, these may be insufficient to attract and retain employees in the organisation. The principles of external equity ensure that jobs are fairly compensated in comparison to similar jobs in the labour market.

2. Internal Equity:Organisations have various jobs which are relative in value term. In other words, the values of various jobs in an organisation are comparative. Within your own Department, pay levels of the

teachers (Professor, Reader, and Lecturer) are different as per the perceived or real differences between the values of jobs they perform.This relative worth of jobs is ascertained by job evaluation. Thus, an ideal compensation system should establish and maintain appropriate differentials based on relative values of jobs. In other words, the compensation system should ensure that more difficult jobs should be paid more.3. Individual Worth:According to this principle, an individual should be paid as per his/her performance. Thus, the compensation system, as far as possible, enables the individual to be rewarded according to his contribution to organisation.Alternatively speaking, this principle ensures that each individual’s pay is fair in comparison to others doing the same/similar jobs, i.e., ‘equal pay for equal work’. In sum and substance, a sound compensation system should encompass factors like adequacy of wages, social balance, supply and demand, fair comparison, equal pay for equal work and workMethods of Wage Payments:The different methods of wage payments are as follows:

(i) Time Wage System:

This is the oldest method of wage payment. The ‘Time’ is made a basis for determining wages ofa person. The wages are paid according to the time spent by workers irrespective of their output of work done. The wage rates are fixed for an hour, a day, a week or a month.The time spent at work is recorded and wages are paid according to it. For example, a wage rate of Rs. 15 per day is fixed in a factory. Two workers A and B attend work for 29 and 25 days respectively. The wages as per time wage system will be Rs. 435 and 375 for A and B respectively.This method of wage payment does not give weightage to the quantity of goods produced by the workers. The supervisor may ensure that workers do not waste their time and the quality of goods is also maintained. There are no hard and fast rules for fixing rates of wages. These may be decided according to the level of the past, higher positions may be paid higher rates and vice-versa.Wages are calculated in this method as follows:Earnings = T x RWhere T stands for time spent and R is the rate of pay.Suitability:Time wage system is suitable under following situations:(i) When productivity of an employee cannot be measured or counted.(ii) Where quality of products is more important than the quantity.(iii) Where individual employees do not have any control over production.(iv) Where close supervision of work is possible.(v) Where work delays are frequent and beyond the control of workers.(ii) Piece Wage System:Under piece system of payment, wages are based on output and not on time. There is no consideration for time taken in completing a task. A fixed rate is paid for each unit produced, jobcompleted or an operation performed. Workers are not guaranteed minimum wages under this system.The wages to be paid to a worker can be calculated as follows:Output Piece Rate

The quantity produced by a worker will be multiplied by the rate per unit for calculating wages. An equitable piece rate should be fixed for giving incentive to workers for producing more. Different piece rates will be determined for separate jobs. The factors like efforts involved, conditions under which work is to be performed, risk involved, etc. should be taken into account while fixing piece rates.The piece rate should be reviewed from time to time. These should be linked to price index so that workers are able to maintain a minimum level of real wages. Piece rates should also be revised when competitors do so otherwise there may be a discontentment among workers.Types of Piece Rate System:Piece rate system may be of three types.These types are as follows:1. Straight Piece Rate:In this method one piece rate is fixed and whole production is paid on this basis.If a piece rate of Rs. 5 per unit is fixed then the wages will be calculated by multiplying output by the rate fixed. A worker producing 100 units will get Rs. 500 (100 x 5). If production is raisedto 120 units then wages will be Rs. 600 (120 x 5). A worker will have to increase his output in order of get higher wages. The rate of payment remains the same irrespective of level of output.2. Increasing Piece Rate:In this method different rates are fixed for different levels of production. Higher rates are given when production increases beyond a certain level.For example, a piece rate of Rs. 1 per unit may be fixed for production upto 100 units, Rs. 1.25 per unit for output between 101-150 units and 1.50 per unit for a production beyond 150 units and so on. There is an incentive to get higher rate for raising production beyond a certain level.3. Decreasing Piece Rate:In this method the rate per unit decreases with increase in output. Re. 1 per unit may be allowed upto a production of 100 units, 0.90 P. per unit for production between 101-150 units, 0.85 P. perunit for an output beyond 150 units and so on. This method discourages workers from raising their output because better efforts are rewarded at lower piece rates.Suitability:Piece rate system is suitable under following situations:1. Where quality is more important than quantity.2. When work is of a repetitive nature.3. When work is standardised and flow of output is continuous.4. When production of a worker can be separately measured.5. When strict supervision is not possible.6. Where production is closely related to human efforts.(iii) Balance or Debt Method:Balance or debt method is a combination of time and piece wage systems. The worker is guaranteed a time rate with an alternative piece rate. If the wages calculated at piece rate exceed time rate the worker gets credit. On the other hand, if time wages exceed piece wages, the workeris paid time wage and the deficit is carried forward as debt to be recon-served in future.Suppose the time rate is Rs, 500 per week and the piece rate is Rs. 4 per unit.The wages of a worker who produces 150, 100 and 125 units in three weeks will be calculated asfollows:

This method provides a sense of security to the employees. At the same time, an efficient workerhas an opportunity to increase his wages. Workers of ordinary ability are given a sufficient incentive to attain the same standard of living, by getting guaranteed time wage, even though the excess paid to them is later deducted from their future credit balance.This method is suitable in industries where the flow of work is minimum. But rates in this method have to be fixed on the most scientific basis.

UNIT-IV Performance apprasialmeanings of performance apprasial Performance appraisal definition can be described as a systematic evaluation of performances ofseveral employees so that they can understand all abilities of a person and their development and growth.

Performance appraisal is also done in a very systematic manner which includes measuring the pay of employees and comparing it with all plans and targets, analyzing the factors needed behind performance of work and what employers are expected for a better performance and for their guidance.

Top 15 Methods used for Performance Appraisal of Employees

Some of the methods used in performance appraisal of employees are as follows:1. Checklist method:A checklist is a list consisting of statements of traits, qualities and behavior of employees. It has two columns ‘Yes’ and ‘No’ representing positive and negative responses.2. Forced distribution method:In this method, the employee is evaluated on the basis of the pattern of a normal curve with the assumption that the performance level conforms to a normal distribution.3. Forced choice method:In this method, the rater is given a series of statement to evaluate the employee. The rater can select any statement that clearly describes the employee.4. Graphic rating scale:The most commonly used method in which the rater is presented with a set of traits in a printed appraisal form. Various characteristic such as job knowledge, quality of work, initiative and diligence are rated within a scale of 0 to 9. The employee receives comments from the rater, so that they can improve on the weak points.5. Essay method:The supervisor writes an application describing the employee’s performance after taking into certain parameters, such as work performance, strength, weakness, employee’s potential, and areas in which he needs to be trained.

6. Field review method:An outsider from any other office (HR department) interviews the managers and line supervisors to appraise the subordinates working under them. The managers are interviewed about the level of performance, growth potential and positive and negative features of employees.7. Paired comparison method:According to this method, the supervisor is given a series of cards, each of them containing the names of two employees. The supervisor chooses the better one of them by comparison. The number of comparisons are divided with a formula N (N- 1)/2Where N = number of employees to be compared.8. Grading method:On the basis of skills, knowledge and traits, employees are graded as outstanding, good, fair, average, poor, and unsatisfactory.9. Ranking method:The superior gives rank to the employees in order of their merits and demerits. It is very difficult when evaluation of a large number of employees has to be done.10. Critical incident method:This method emphasizes critical incident and behaviour of employees used for distinguishing between good and bad performances.11. Behaviourally anchored rating scales (BARS):This method is based on the behaviour of the employees on job. The behaviour of an employee ismeasured against a scale of performance level.The steps under BARS are as follows:a. About six to ten performance dimensions are identified and defined by the raters and the ratees.b. The dimensions are anchored with positive and negative critical incidents.c. Each ratee is then rated on the dimensions.d. Ratings are feedback using the terms displayed on the firms.12. Balanced scorecard:This method was developed by Robert Kaplan and David Norton. It brings the linkages among financial customer, processes and learning. According to this method strategies are translated into clear-cut objectives. All employees should understand how their duties are aligned with higher-level objectives.Employees should be provided with feedback on how they are accountable for achieving objectives, to what extent they achieved them, and reasons for failure. The scorecard of every employee indicates what all adjustments and performance improvements are required.13. Human resource accounting:Human resource accounting deals with the cost and contribution of the employees in an organization. The cost of the employee includes the cost of manpower planning, recruitment, selection and training whereas the contribution is the value added by the employee. The performance of an employee is positive if his contribution is greater than cost and vice versa.

14. Management by objectives method:Management by objectives is a method in which the superior and subordinate managers of an organization jointly identify its common goals and define each individual’s major areas of responsibility in terms of results expected from them. Thus, it focuses attention on setting goals

and accomplishment of the same. During appraisal, superiors and subordinates update and alter goals, as and when required.15. 360-degree appraisal:Any person having through knowledge about the job contents can appraise an employee. According to this method all parties related to role of individual in an organization will be rating an employee. Thus, performance appraisal by supervisors, peers, subordinates, customers, employees themselves, other users of services, and consultants is known as 360-degree appraisal.

Workers Participation in Management :

Definition, Characteristics and Objectives:

Like other behavioural terms, WPM means different things to different people depending upon their objectives and expectations. Thus, WPM is an elastic concept. For example, for management it is a joint consultation prior to decision making, for workers it means co-determination, for trade unions It is the harbinger of a new order of social relationship and a new set of power equation within organisations, while for government it is an association of labour with management without the final authority or responsibility in decision making.

Let us also go through some important definitions of WPM.According to Keith Davis, “Workers’ participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share in responsibility of achieving them”.

In the words of Mehtras “Applied to industry, the concept of participation means sharing the decision-making power by the rank and file of an industrial organisation through their representatives, at all the appropriate levels of management in the entire range of managerial action”.

A clear and more comprehensive definition of WPM is given by the International Labour Organisation (ILO).

According to the ILO: “Workers’ participation may, broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations to more institutionalized forms such as the presence of workers’ members on management or supervisory boards or even management by workers themselves as practised in Yugoslavia”.

In Yugoslavia, WPM is governed by the Law on Workers’ Management of State Economic Enterprises and Higher Economic Association. The Act consists of a three-tier participation structure: collective bargaining, workers’ council, and hoard of management.

In fact, the basic reason for differences in perception of WPM is mainly due to the differential pattern of practices adopted by various countries while implementing workers’ participation in management.

For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through Joint Consultative Committees, Works Committees in France, Co-determination Committees in West Germany, Joint Work Council in Belgium, Workers’ Council and Management Board in Yugoslavia and Union Management Co-operation in USA.

In India, WPM is in the form of, what we call Labour Management Cooperation and Workers’ Participation in Management. It is implemented through the agencies like Works Committees, Joint Management Councils (JMCs) Shop Councils, Unit Councils and Joint Councils. Notwithstanding, these different forms of WPM differ only in degree, not in nature.

Be the perceptual differences as these may, WPM is a system of communication and consultation, either formal or informal, by which the workers of an organisation are kept informed, as and when required, about the affairs of the undertaking and through which they express their opinion and contribute to decision-making process of management.

Characteristics:The following are the main characteristics of WPM:1. Participation implies practices which increase the scope for employees’ share of influence in decision-making process with the assumption of responsibility.

2. Participation presupposes willing acceptance of responsibility by workers.

3. Workers participate in management not as individuals but as a group through their representatives.

4. Worker’s participation in management differs from collective bargaining in the sense that while the former is based on mutual trust, information sharing and mutual problem solving; the latter is essentially based on power play, pressure tactics, and negotiations.

5. The basic rationale tor worker’s participation in management is that workers invest their Iabour and their fates to their place of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right to share in decision-making activities of organisation.

Objectives:The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the objectives of WPM vary from country to country depending on their levels of socio-economic development political philosophies, industrial relations scenes, and attitude of the working class.

To quote, the objective of WPM is to co-determine at the various levels of enterprises in Germany, assign the final to workers over all matters relating to an undertaking in Yugoslavia, promote good communication and understanding between labour and management on the issues of business administration and production in Japan, and enable work-force to influence the working of industries in China, for example.

In India the objective of the government in advocating for workers’ participation in management,as stated in the Industrial Policy Resolution 1956, is a part of its overall endeavour to create a socialist society, wherein the sharing of a part of the managerial powers by workers is considerednecessary.

The objective of WPM, as envisaged in the Second Five Year Plan of India is to ensure:

1. Increase in productivity for the benefit of all concerned to an enterprise, i.e., the employer, the employees and the community at large.

2. Satisfaction of worker’s urge for self-expression in the matters of enterprise management.

3 Making employees better understood of their roles in the organisation.

In ultimate sense, the objective of WPM in India is to achieve organizational effectiveness and the satisfaction of the employees.

Accordingly, the objectives of WPM in India are to:1. Promote mutual understanding between management and workers, i.e., industrial harmony.

2. Establish and encourage good communication system at all levels.

3. Create and promote a sense of belongingness among workers.

4. Help handle resistance to change.

5. Induce a sense among workers to contribute their best for the cause of organisation.

6. Create a sense of commitment to decisions to which they were a party.

Levels of Participation:Having known the objectives of WPM, the question then is to what extent workers can participate in decision-making process. In other words, it is important to know the extents/levels of co-determination in an organisation.

Viewed from this angle, Mehtras has suggested five levels of workers’ participation ranging from the minimum to the maximum. Since these levels of workers’ influence the process and quality of decision making in an organisation. We are therefore highlighting here these levels briefly ranking them from the minimum to the maximum level of participation.

Informative Participation:This refers to management’s information sharing with workers on such items those are concerned with workers. Balance Sheet, production, economic conditions of the plant etc., are the examples of such items. It is important to note that here workers have no right of close scrutiny of the information provided and management has its prerogative to make decisions on issues concerned with workers.

Consultative Participation:In this type of participation, workers are consulted in those matters which relate to them. Here, the role of workers is restricted to give their views only. However the acceptance and non-acceptance of these views depends on management. Nonetheless, it provides an opportunity to the workers to express their views on matters involving their interest.

Associative Participation:Here, the role of the workers’ council is not just advisory unlike consultative participation. In a way, this is an advanced and improved form of consultative participation. Now, the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of thecouncil.

Administrative Participation:In the administrative participation, decisions already taken are implemented by the workers. Compared to the former three levels of participation, the degree of sharing authority and responsibility by the workers is definitely more in this participation.

Decisive Participation:Here, the decisions are taken jointly by the management and the workers of an organisation. In fact, this is the ultimate level of workers’ participation in management.

Merits of Worker’s Participation:

Workers’ participation in management is a tool which promotes better industrial relations and establishes industrial peace. It is important concept for both management and workers. The need is to implement it honestly to reap its merits in the form of mutual understanding, increased efficiency of workers, increased production etc.

1. Mutual Understanding:

The employees and employers nurture two different conflicting interests. Surprisingly both lack the knowledge of the problems faced by them. Workers’ participation in management brings both the parties together. This togetherness enables them to understand each other’s problem. This minimizes conflicts and promotes mutual understanding.2. Efficiency of Workers Increase:

The workers become the partner in decision making process. Whatever decisions are taken, they are their own and hence they have to abide by them. They become enthusiastic and put lot of hard work while working. This helps in increasing the overall efficiency of workers.3. Increase in Production:Increase in efficiency of workers, better understanding between workers and employers lead to mutual cooperation which results in increased productivity and increase in total production of theenterprise.4. Establishes Industrial Peace:Workers participate in decision making process. Whatever decisions good are bad taken workers are the party to it and hence they cannot evade the responsibility. Employers and workers understand each other better and conflicts are minimized. Each dispute is solved with mutual understanding. In this way disputes are eliminated and industrial peace is restored.5. Promotion of Industrial democracy:Participation of all the parties’ employees and employers in the management of the industries which works to safeguard the interests and betterment of all is industrial democracy. Workers’ participation in management helps in promoting industrial democracy.6. Welcomes Changes:Some if not all the changes are resisted by the workers. But workers’ participation in management helps in arriving at a unanimous decision whether to accept or reject any change. The changes which bring more benefits than the costs incurred on them, are accepted. Hence the changes are welcomed by the employees.7. Personal Development:Participation helps workers to express their creative instinct and they respond favourably to the challenges at the workplace as regards performance of the job. They feel free in doing so. It is possible as participation brings industrial democracy.8. Reduces Misunderstanding:Participation reduces misunderstanding regarding the managements’ outlook. This increases the organisational balance.9. No Outside Help to Sort-out Disputes:Employees themselves are participating in the decision making with the employers. They therefore realize workers as well as managements’ problem better hence disputes are resolved byunderstanding the difficulties of each other. So in case of industrial dispute no outside help is taken they are sorted out within the plant itself by the employees and employers themselves.

Demerits of Workers’ Participation:In spite of above advantages of workers’ participation there are certain disadvantages.

Following are the demerits of workers’ participation:

1. Workers are not Enthusiastic:The workers are not enthusiastic about the scheme and employers believe that they being incompetent cause delay in decisions. Some of the good decisions cannot be implemented for lack of support from the workers.

2. Weak Trade Unions:In India trade unions are not strong enough. There are multiplicities of trade unions and they are dominated and led by political leaders. This makes trade unions weak. They cannot show

solidarity of workers. There should be one strong union so that they can elect competent representatives for participation. Moreover there are certain problems require specialized knowledge which workers do not possess hence such problems cannot be solved through participation. They cannot even understand the gravity of situation.

6 Forms of Worker Participation in Management:

Some of the forms of worker participation in management of the company are: 1. Co-Ownership 2. Seat On Board Of Directors 3. Works Committee 4. Joint Management Councils 5.Profit Sharing and 6. Suggestion Scheme.

The form or the way in which the workers can participate in the management varies a great deal. The form varies from country to country and even from undertaking to undertaking. Even in Communist countries, the methods of participation are not uniform.

Besides, the form also varies from organisation to organisation depending upon the level of power or authority enjoyed by the managers at different levels in different types of organisations.

Workers’ participation in management may take the form of ascending or descending participation. In ascending participation an opportunity is given to the workers to participate in the decision making process at a higher level.

The workers’ participation in management may take the following forms:

1. Co-Ownership:Workers are made shareholders by allotting those shares in the company. They are employees as well as owners of the business concern. Thus, their participation in the management is automatically guaranteed.

2. Seat On Board Of Directors:In this case the workers’ representative is given a seat on the boards of directors. In advanced countries like Britain and U.S.A., trade unions have already rejected this idea. It is generally felt that the workers do not understand the intricacies of management.

Moreover, their representatives being in minority may not have much say in the decision making whereas that decision will be applicable to all the employees. By remaining out of the board, they can keep a better check on the management.

The Sachar Committee studied the problems of workers’ participation in management and observed “Conditions must be created where the worker directors are able to play a helpful and effective role. It is apparent that as a member of the board, the worker director will familiarise himself with subjects with which he was not associated before. The training of the employees must, therefore, be immediately taken in hand”.

3. Works Committee:

These committees have been regarded as the most effective social institution of industrial democracy. The need for their constitution has been emphasised as early as 1931 by the Royal Commission on Labour.

It was again emphasised by the Industrial Truce Resolution on 1947, which recommended their constitution in each industrial undertaking for the settlement of any dispute which may arise in future.

This recommendation was given effect to in the Industrial Disputes Act of 1947. Section 3 of the Act provides for these bodies in every undertaking employing 100 or more workmen.

These committees are consultative bodies. Their functions include discussion of conditions of work like lighting, ventilation, temperature and sanitation etc., and amenities like water supply for drinking purposes, canteen, medical services, safe working conditions, administration of welfare funds etc.

The works committee should not deal with matters connected with collective bargaining which are exclusively reserved for trade unions.

4. Joint Management Councils:Joint committees for settlement of grievances or specific problems may be set up for promoting workers’ participation in management. Workers representatives sit with the management across the table to discuss matters which fall within its purview.

The main object of such councils is to give an opportunity to workers to understand the working of the industry and satisfy their urge for self-expression.

Should Joint Councils control policy? A policy is formulated against a background of numerous factors most, of them being out of the control of the management. In fact, the real interest of the workers participating in such councils is to see that its claims are given due weightage along withthe claims of government, consumer and shareholders.

The participation is, therefore, on the job itself (formation of autonomous work group’s determination of production standards, control of pace and rhythm etc.) rather than in the policy making.

The origin of joint councils can be traced back to the First World War in Britain. To deal with the strikes, British Government appointed Mr. J.H. Whitley as the Chairman of the Committee for suggesting ways and means for bringing industrial peace.

It suggested workers’ participation in management as the only means for improving industrial relations. Under this scheme works councils, district councils and national councils were set up. These councils are popularly known as ‘Whitley Councils’.

The Eighth Annual Conference of the Indian Institute of Personnel Management summed

up the prerequisites for success in joint consultation as follows:(a) Works committees should be recommendatory in function;

(b) Some provision should be made to include supervisory levels in these consultative bodies;

(c) Information about the work done in a consultative body should be widely disseminated and steps should be taken to assure that the supervisory levels are not short-circuited;

(d) Subjects discussed in joint consultative bodies should not encroach in any way, on such spheres as are normally the subject of management-union negotiations;

(e) It is desirable that workers’ representatives in consultative bodies should be the employees of the organisation concerned;

(f) Measures like making it compulsory that the chairmanship of a joint consultative committee should go to employees’ representative and a management representative alternately, should be avoided.

Joint Management Councils must not indulge in collective bargaining. Certain issues like wages, bonus etc., should not be discussed in such councils. Usually their area of operation includes welfare and safety measures, vocational training, working hours and breaks, holidays etc.

5. Profit Sharing:Workers feel involved in the management especially when they are given a share in profits of thebusiness.

6. Suggestion Scheme:

Suggestion scheme may also be introduced for creating interest in the work by announcing a suitable reward for original and useful suggestions. Employees can put their suggestions in the suggestion boxes which are installed in the various departments.

UNIT-V

Industrial Relations (IR):

Definition:

According to Dale Yoder’, IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry”.

Armstrong has defined IR as “IR is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect

the interests of the employed and their employers and to regulate the ways in which employers treat their employees”

In the opinion of V. B. Singh “Industrial relations are an integral aspect of social relations arisingout of employer-employee interaction in modern industries which are regulated by the State in varying degrees, in conjunction with organised social forces and influenced by the existing institutions. This involves a study of the State, the legal system, and the workers’ and employers’organizations at the institutional level; and of the patterns of industrial organisation (including management), capital structure (including technology), compensation of the labour force, and a study of market forces all at the economic level”.

SCOPE OF IR:

Based on above definitions of IR, the scope of IR can easily been delineated as follows:1. Labour relations, i.e., relations between labour union and management.

2. Employer-employee relations i.e. relations between management and employees.

3. The role of various parties’ viz., employers, employees, and state in maintaining industrial relations.

4. The mechanism of handling conflicts between employers and employees, in case conflicts arise.

The main aspects of industrial relations can be identified as follows:1. Promotion and development of healthy labour — management relations.

2. Maintenance of industrial peace and avoidance of industrial strife.

3. Development and growth of industrial democracy.

Objectives of IR:The primary objective of industrial relations is to maintain and develop good and healthy relations between employees and employers or operatives and management. The same is sub- divided into other objectives.

Thus, the objectives of IR are designed to:1. Establish and foster sound relationship between workers and management by safeguarding their interests.

2. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties.

3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic statusof workers.

4. Provide an opportunity to the workers to participate in management and decision making process.

5. Raise productivity in the organisation to curb the employee turnover and absenteeism.

6. Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of relationship between workers and management.

7. Establish and nurse industrial democracy based on labour partnership in the sharing of profits and of managerial decisions.

8. Socialise industrial activity by involving the government participation as an employer.

According to Krikaldy, industrial relations in a country are influenced, to a large extent, by the form of the political government it has. Therefore, the objectives of industrial relations are likely to change with change in the political government across the countries.

Accordingly, Kirkaldy has identified four objectives of industrial relations as listed below:1. Improvement of economic conditions of workers.

2. State control over industrial undertakings with a view to regulating production and promoting harmonious industrial relations.

3. Socialisation and rationalisation of industries by making the state itself a major employer.

4. Vesting of a proprietary interest of the workers in the industries in which they are employed.

Various Concepts of Industrial Relations

The essences of good industrial relation lies in the bringing up of good labor relations which gives a forum to understand each other (employer, employee) properly. Creates co-operative thinking and working to achieve the goal of the organization. A good industrial relation increasesthe morale of employers and goods them to give their maximum, each think of their mutual interest which paves way for introduction of new methods, developments and leading to adoptionof modern technology. This progressive ways when designed with their mutual interest and consent develops many incentive propositions, effective participators forum is created in management. Profit are shared, workers get their dues in the organization leading to job satisfaction-which is needed for good relations. Good industrial relation increase production, improves quality of work and products efficiency of workers increased. Cost of production lowered.

Bad industrial relations leads to industrial unrest industrial dispute and a downward trend to industries workers and the nation. Of course the first hit will be on the employers, who has invested.

Industrial worker and the employers normally don’t think, feel or act in precisely the same way and because each starts from a different point conflict of some fort can mover be eliminated completely. The main reasons for industrial discard, can be due to

Misunderstanding or differences in perception

Lack of co operation real or imagined

Problems with authority

Future to comply with policies or stick to plans.

His Agreements over ways to achieve agreed goals.

Conflict can have some positive aspects also, they may give positive results like

Reveal new aspect of an existing issue

Improve long term communication between the individuals concerned

Always previously stifled emotions to be released

From the words of Tata Steel management. “The welfare of the laboring classes must be one of the first cares of every employer, Any betterment of their conditions must proceed more from theemployers downwards rather than be forced up by demands from below since labor, contented, well housed, well fed and generally well looked after, is not only an asset and advantages to the employer but serves to raise the standard of industry and labor in the country”

It is sheer injustice on the part of any management to take advantage of the poor, helpless conditions of workers and exploit them with more work extractions and less insufficient payment. Workers illiteracy and lack and training made them to work in unhealthy conditions forvery low compensation. At this Juncture industrial relations need was felt to protect workers rights, wages etc. At the same time industrial relations cannot remain producing the rights of one side only in the industry they have to protect the rights of employers also. As such IR has declared through act, what are illegal strikes and various standing orders to protect the dignity of supervisors, managers and of course employers.

The main concept of industrial relations are

Preservation and promotion of economic interest of workers along with social interest

Peace and productivity goes hand in hand hence. attempt to reduce industrial dispute and promote peace is a necessity.

Employer employee relation should be made healthy and growing

Running of the industry, day to day work should be made more democratic with increasing workers participation

Producing products at a very competitive price so that country can promote export and our economy can improve.

Bringing mental revolution in management.

The parties to Industrial Relations are

Workers and their unions, the intelligence level knowledge of workers, background of worker leaders, real or bogus their linkage with political unions, are to be considered for the effective relations.

Nature of employment and employers, whether benevolent, interested in workers or aiming to get as much profit as possible squeezing workers their attitude plays vital role in maintaining better relations. Whether they want to have team, and growth of their team as a whole or just hireand fire system.

Position of government, political will whether opportunities favoring employers or interested in workers, are to be seen. Their interest in workers can be seen through their actions in creating Laws for labor welfare and implementing them effectively.

In industrial relations, therefore, one seeks to study how people get on together at their work, what difficulties arise between them, how their relations including wages and working conditionsetc., are regulated. Industrial relations, thus, include both ‘industrial relations’ and ‘collective relations’ as well as the role of the state in regulating these relations. Such a relationship is therefore complex and multidimensional resting on economic, social, psychological, ethical, occupational, political and legal levels. There are mainly two set of factors that determine the state of industrial relations – whether good or poor in any country. The first set of factors, described as ‘institutional factors’ include type of labor legislation, policy of state relating to labor and industry, extent and stage of development of trade unions and employers’ organizations and the type of social institutions. The other set of factors, described as ‘economic factors’ include the nature of economic organization capitalist, socialist technology, the sources of demand and supply in the labor market, the nature and composition of labor force etc.

5 Importance of Industrial Relation for Employees and Employers:Industrial relations usually imply good and positive relations between the employees and employers. The good IR help run an industry effectively and successfully, i.e., the desideratum of the day. The importanceof IR can be imbued with multiplicity of justifications.

To mention, good IR help:

1. Foster Industrial Peace:

Under the mechanism of IR, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, IR helps create a peaceful environment in the organisation. Peace, in turn, breeds prosperity.

2. Promote Industrial Democracy:

Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationship between workers and management. This benefits the both. The motivated workers give their best and maximum to the organisation, on the one hand, and share their share of the fruits of organisational progress jointlywith management, on the other.

3. Benefit to Workers:

IR benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers’ grievances relating to work.

4. Benefit to Management:

IR protects the rights of managers too. As and when workers create the problem of indiscipline, IR provides mangers with a system to handle with employee indiscipline in the organisation.

5. Improve Productivity:

Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 per cent to 38 per cent between 1994 and 1997. This increase is attributed to the peaceful IR in the plant.

5 Causes of Poor Employer-Employee Relations:

Some of the major causes of poor employer-employee relations are as follows: 1. Economic Causes 2. Organisational Causes 3. Social Causes 4. Psychological Causes 5. Political Causes.

Employer-employee relations scene is not satisfactory and it is visible from frequent strikes, gherao, lockout and other forms of industrial disputes.

Several economic, social, psychological, technological and political factors are responsible for poor employer-employee relations.

1. Economic Causes:

Poor wages and poor working conditions are the main reasons for unhealthy relations among management and labour. Unauthorized deductions from wages, lack of fringe benefits, absence of promotional opportunities, dissatisfaction with job evaluation and performance appraisal methods, faulty incentive schemes are other economic causes.

When employers deny equitable and fair remuneration and good working and living conditions to the working class, trade unions agitate and industrial peace is disturbed. Inadequate infrastructural facilities, worn-out plant and machinery, poor layout, unsatisfactory maintenance and other physical and technical causes also contribute to industrial conflict.

2. Organisational Causes:

Faulty communication system, dilution of supervision and command, non-recognition of trade unions, unfair practices, violation of collective agreements and standing orders and labour laws are the organisational causes of poor relations in industry.

3. Social Causes:

Uninteresting nature of work is the main social cause. Factory system and specialisation have made worker a subordinate to the machine. Worker has lost sense of pride and satisfaction in the job. Tensions and conflicts in society break up of joint family system, growing intolerance have also led to poor employer-employee relations. Dissatisfaction with job and personal life culminates into industrial conflicts.

4. Psychological Causes:

Lack of job security, poor organisational culture, non- recognition of merit and performance, authoritative administration and poor interpersonal relations are the psychological reasons for unsatisfactory employer- employee relations.

5. Political Causes:

Political nature of trade unions, multiple unions and inter-union rivalry weaken trade union movement. In the absence of strong and responsible trade unions, collective bargaining becomes ineffective. The union’s status is reduced to a mere strike committee.

The outsiders who become union leaders by making wild promises to workers make excessive demands on employers. When employers do not accept their demands conflicts arise spoiling theemployer-employee relations climate in the country.

Poor employer-employee relations are harmful for all. Industrial conflicts reduce productivity of labour. Quantity and quality of work suffer and costs rise. Industrial discipline breaks down and labour turnover and absenteeism increase. Working class suffers due to industrial decline. They find it very difficult to get improved wages and working conditions. Many of them loose jobs and promotions.

They get frustrated and demoralised. Employers face resistance to changes in technology and organisational structure. Industry, economy and society are interdependent. Therefore, industrial strike has multiplier effect on the economy and society. Social tensions and law and order problems, drinking and gambling and other social evils tend to rise in an atmosphere of poor employer-employee relations.

7 Measures for Improving Employer-Employee Relations:

Some of the major measures for improving employer-employee relations are as follows: 1. Sound Human Resource Policies 2. Constructive Attitudes 3. Collective Bargaining 4. Participative Management 5. Responsible Unions 6. Employee Welfare 7. Grievance Procedure.

1. Sound Human Resource Policies:

Policies and procedures concerning the compensation, transfer, promotion, etc. of employees should be fair and transparent. All policies and rules relating to employer-employee relations should be clear to everybody in the enterprise and to the union leaders.

Top management must support them and set an example for other managers. Practices and procedures should be developed to put human resource policies into practice. Sound policies and rules are of little help unless they are executed objectively and equitably.

2. Constructive Attitudes:

Both management and trade unions should adopt positive attitudes towards each other. Management must recognise union as the spokesmen of workers grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavor. Unionsand workers, on their part, must recognise and accept the rights of employers.

3. Collective Bargaining:

Employers’ organisations as well as trade unions should be able and willing to deal with mutual problems freely and responsibly. Both should accept collective bargaining as the cornerstone of good employer-employee relations.

A genuine desire on the part of employers to bargain with employees on the basis of equality is necessary. Government agencies should assist the two sides in public interest. Problem centred negotiations rather than a legalistic approach is desired. Widespread union management consultations and information sharing are helpful.

4. Participative Management:

Employers should associate workers and unions in the formulation and implementation of humanresource policies and practices. Management should convince workers of the integrity and sincerity of the company.

Management should not interfere in the internal affairs of the unions. Instead of trying to win workers’ loyalty away from unions, management should encourage right type of union leadership. A strong union is an asset to the employer.

5. Responsible Unions:

Unions should adopt a responsible rather than political approach to employer-employee relations.Unions should accept private ownership and operations of industry. They must recognise that thewelfare of workers depends on the successful operation of industry. A strong, democratic and responsible union alone can ensure that workers honour the agreement with their employer.

6. Employee Welfare:

Employers should recognise the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, opportunities for training and development, and other necessary facilities for labour. A genuine concern for the welfare and betterment of working class is necessary.

7. Grievance Procedure:

A well-established and properly administered system for the timely and satisfactory redressal of employees’ grievances can be very helpful in improving employer-employee relations. It provides an outlet for tensions and frustrations of workers. Similarly, a suggestions scheme will help to satisfy the creative urge of workers. A code of discipline if properly adhered to by both the parties will help to avoid unilateral and violent actions on either side.

Grievance Handling:

Meaning and Definition of Grievance:

A grievance is any dissatisfaction or feeling of injustice having connection with one’s employment situation which is brought to the attention of management. Speaking broadly, a grievance is any dissatisfaction that adversely affects organizational relations and productivity. To understand what a grievance is, it is necessary to distinguish between dissatisfaction, complaint, and grievance.

1. Dissatisfaction is anything that disturbs an employee, whether or not the unrest is expressed in words.

2. Complaint is a spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward.

3. Grievance is a complaint that has been formally presented to a management representative or to a union official.

According to Michael Jucious, ‘grievance is any discontent or dissatisfaction whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust or inequitable’.

In short, grievance is a state of dissatisfaction, expressed or unexpressed, written or unwritten, justified or unjustified, having connection with employment situation.

Features of Grievance: 1. A grievance refers to any form of discontent or dissatisfaction with any aspect of the organization.

2. The dissatisfaction must arise out of employment and not due to personal or family problems.

3. The discontent can arise out of real or imaginary reasons. When employees feel that injustice has been done to them, they have a grievance. The reason for such a feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous.

4. The discontent may be voiced or unvoiced, but it must find expression in some form. However, discontent per se is not a grievance. Initially, the employee may complain orally or in writing. If this is not looked into promptly, the employee feels a sense of lack of justice. Now, the discontent grows and takes the shape of a grievance.

5. Broadly speaking, thus, a grievance is traceable to be perceived as non-fulfillment of one’s expectations from the organization.

Causes of Grievances: Grievances may occur due to a number of reasons:

1. Economic:

Employees may demand for individual wage adjustments. They may feel that they are paid less when compared to others. For example, late bonus, payments, adjustments to overtime pay, perceived inequalities in treatment, claims for equal pay, and appeals against performance- related pay awards.

2. Work environment:

It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or poor physical conditions of workplace, defective tools and equipment, poor quality of material, unfair rules, and lack of recognition.

3. Supervision:

It may be objections to the general methods of supervision related to the attitudes of the supervisor towards the employee such as perceived notions of bias, favouritism, nepotism, caste affiliations and regional feelings.

4. Organizational change:

Any change in the organizational policies can result in grievances. For example, the implementation of revised company policies or new working practices.

5. Employee relations:

Employees are unable to adjust with their colleagues, suffer from feelings of neglect and victimization and become an object of ridicule and humiliation, or other inter- employee disputes.

6. Miscellaneous:

These may be issues relating to certain violations in respect of promotions, safety methods, transfer, disciplinary rules, fines, granting leaves, medical facilities, etc.

Effects of Grievance:

Grievances, if not identified and redressed, may adversely affect workers, managers, and the organization.

The effects are the following:

1. On the production:

a. Low quality of production

b. Low productivity

c. Increase in the wastage of material, spoilage/leakage of machinery

d. Increase in the cost of production per unit

2. On the employees:

a. Increase in the rate of absenteeism and turnover

b. Reduction in the level of commitment, sincerity and punctuality

c. Increase in the incidence of accidents

d. Reduction in the level of employee morale.

3. On the managers:

a. Strained superior-subordinate relations.

b. Increase in the degree of supervision and control.

c. Increase in indiscipline cases

d. Increase in unrest and thereby machinery to maintain industrial peace

Need for a Formal Procedure to Handle Grievances:

A grievance handling system serves as an outlet for employee frustrations, discontents, and gripes like a pressure release value on a steam boiler. Employees do not have to keep their frustrations bottled up until eventually discontent causes explosion.

The existence of an effective grievance procedure reduces the need of arbitrary action by supervisors because supervisors know that the employees are able to protect such behavior and make protests to be heard by higher management. The very fact that employees have a right to beheard and are actually heard helps to improve morale. In view of all these, every organization should have a clear-cut procedure for grievance handling.

Four features of a good grievance handling procedure are as follows: 1. Fairness 2. Provisions should be clear cut 3. Procedural steps 4. Promptness.

1. Fairness:

The attitude of supervisors is important here. All supervisors should accept the employee’s right of appeal as long as no bypassing is involved. Fairness is needed not only to be just but also to keep the procedure viable.

If employees develop the belief that the procedure is only a sham, then its value will be lost, and other means should be sought to deal with the grievances. This also involves following the principles of natural justice, as in the case of a disciplinary procedure.

2. Provisions should be clear cut:

No grievance procedure can be expected to work satisfactorily unless there are definite provisions, consistently adhered to, determining what is to be done, when any by them.

For example, every employee should know:

(i) to whom complaints are to be addressed,

(ii) in what form (oral or written),

(iii) what restrictions, and

(iv) how long a complainant should expect to wait before finding out what action has been taken or planned in connection with their complaints.

3. Procedural steps:

The grievance procedure should be sufficiently simple so that it can easily and quickly be explained to each new employee before they begin working for the organization and so that it can be readily understood even by a person who has had relatively little formal education.

4. Promptness:

Promptness is needed to avoid the bitterness and frustration that can come from delay. Prompt action is not only desirable from the complainant’s point of view; it is also in management’s interest. Undue delay can be costly in the growth and spread of employee dissatisfaction.

Employee Grievance Procedure:

Corrective Action Procedures – Staff

Discriminatory Harassment

Performance Reviews

Sexual Harassment

Procedures:

It is important that employees are treated fairly and receive prompt responses to problems and concerns. For this reason, the University provides a grievance procedure to promote prompt and responsible resolution of issues raised by staff and administrators. This procedure may be used freely without fear of retaliation, and the Office of Human Resources is available to assist throughout the procedure. The process outlined below should be used if an individual disagrees with a supervisor’s action including any disciplinary action. If the problem involves Discriminatory Harassment, Sexual Harassment and/or Discrimination, reference to those policies should be made to initiate a complaint. When unsure which policy applies, contact should be made with a Human Resources HR Consultant or the Office of Institutional Equity for assistance.

Step One:

Discuss Complaint with Immediate Supervisor.

The University encourages informal resolution of complaints. Employees should first discuss thecomplaint with their immediate supervisor within three (3) business days of the situation whenever possible. If the complaint is not resolved as a result of this discussion, or such a discussion is not appropriate under the circumstances, proceed to Step Two. If the action in dispute involves suspension or termination of employment, Steps One and Two should be bypassed. Note: If the immediate supervisor is an officer of the University, Steps Two, Three and Four should be bypassed and the complaint submitted directly to the Associate Vice President for Human Resources who will send a copy to the Executive Vice President of the University and schedule a meeting for employee, the Associate Vice President for Human Resources and the Executive Vice President or his designee.

Step Two:

Prepare and Submit Complaint Procedure Form to a HR Consultant for Review by Second-LevelSupervisor.

If the employee feels the complaint was not resolved in discussions with his/her immediate supervisor, they may prepare and submit a formal written complaint for review by the person to whom the employee’s immediate supervisor reports (“second-level supervisor”). To do so, the employee should prepare a Complaint Procedure Form and submit it to a Human Resources HR Consultant within seven (7) business days of the Step One discussion with the immediate supervisor (or within seven (7) days of the event being grieved if Step One is bypassed). The Consultant will then review the complaint, send a copy to the second-level supervisor and the immediate supervisor (if appropriate), and schedule a meeting for the employee, the second-levelsupervisor, and the Consultant to discuss the complaint. The meeting will ordinarily be held within five (5) business days of the Consultant’s receipt of the Complaint Procedure Form. The second-level supervisor will issue a written decision, generally within five (5) business days of the meeting. If the complaint is not resolved to the employee’s satisfaction, they may proceed to Step Three.

Step Three:

Submit Complaint Procedure Form to Human Resource Director of HR Consultants for Review by Third-Level Manager.

If the employee is not satisfied with the Step Two decision, they may proceed with the complaintwithin five (5) business days of receipt of the Step Two decision by submitting it to the Human Resources Director of HR Consultant for review by the director in charge of their department or associate dean of the department if in an academic unit. A meeting between the employee, the Director of HR Consultant and the director or associate dean will generally be held within five (5) business days. The director or associate dean will issue a written decision, generally within five (5) business days of the meeting.

Step Four:

Submit Complaint Procedure Form for Final Appeal to the Appropriate-Level Vice President or Provost.

If the employee is not satisfied with the Step Three decision, they may submit the complaint to the appropriate level Vice President with administrative responsibility for their department or, for academic units, the Office of the Provost, within seven (7) business days of receipt of the Step Three decision. The Vice President or Office of the Provost will provide the University’s final written response, generally within fourteen (14) business days. The employee’s department management will be notified as well.

General Information

The time limits above are subject to modification on a case-by-case basis due to operational requirements, travel away from campus, in-depth investigations, etc. The Executive Vice President shall have final authority to resolve any disputes regarding the implementation of this Complaint Procedure, including determination of the appropriate decision makers.

Essential Pre requisites of a Grievance Procedure:

Every organization should have a systematic grievance procedure in order to redress the grievances effectively. As explained above, unattended grievances may culminate in the form of violent conflicts later on. The grievance procedure, to be sound and effective should possess certain pre-requisites:

(a) Conformity with statutory provisions: Due consideration must be given to the prevailing legislation while designing the grievance handling procedure.

(b) Un-ambiguity: Every aspect of the grievance handling procedure should be clear and unambiguous. All employees should know whom to approach first when they have a grievance, whether the complaint should be written or oral, the maximum time in which the redressal is assured, etc. The redressing official should also know the limits within which he can take the required action.

(c) Simplicity: The grievance handling procedure should be simple and short. If the procedure iscomplicated it may discourage employees and they may fail to make use of it in a proper manner.

(d)Promptness: The grievance of the employee should be promptly handled and necessary action must be taken immediately. This is good for both the employee and management, because if the wrong doer is punished late, it may affect the morale of other employees as well.

(e) Training: The supervisors and the union representatives should be properly trained in all aspects of grievance handling beforehand or else it will complicate the problem.

(f) Follow up: The Personnel Department should keep track of the effectiveness and the functioning of grievance handling procedure and make necessary changes to improve it from time to time.

Steps in the Grievance Procedure:

(a) Employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them.

(b)The management has to define the problem properly and accurately after it is identified/acknowledged.

© Complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinions, etc.

(d) The information should be analyzed, alternative solutions to the problem should be developed and the best solution should be selected.

(e) The grievance should be redressed by implementing the solution.

(f) Implementation of the solution must be followed up at every stage in order to ensure effective and speedy implementation.

Prerequisites on Which the Efficiency of a Grievance Procedure

The efficiency of a grievance procedure depends upon the fulfilment of certain prerequisites. These are as follows:

(1) Conformity with Prevailing Legislation:

The procedure should be in conformity with the existing law. It should be designed to supplement the statutory provisions.

In other words, the existing grievance machinery as provided by law must be made use of. The procedure may be incorporated in the standing orders,or collective bargaining agreement of the organisation.

(2) Acceptability:

The grievance procedure must be acceptable to all and should, therefore, be developed with mutual consultation among management, workers and the union.

(3) Clarity:

There should be clarity regarding each and every aspect of the grievance procedure. An aggrieved employee must be informed about the person to whom a representation can be made, the form of submission (written or oral), the time limit for the redressal of grievance etc.

(4) Promptness:

The grievance procedure must aim at speedy redressal of grievances. The promptness with whicha grievance is processed adds further to the success of the grievance procedure.

Since justice delayed is justice denied, the procedure should aim at rapid disposal of the grievances. Promptness can be ensured in the following ways:

(i) As far as possible the grievance should be settled at the lowest level.

(ii) There should be only one appeal.

(iii) Time limit should be prescribed and rigidly enforced at each level.

(iv) Different types of grievances may be referred to appropriate authorities.

(5) Simplicity:

The grievance procedure should be simple. The procedure should consist of as few steps as possible. If there are too many stages in the procedure, too many forms to be filled up, too much going around etc., the very purpose of the procedure is defeated.

Instead of resorting to the formal procedure, an employee may ignore it. Information about the procedure should be communicated to the employees.

(6) Training:

The success of the procedure also depends upon imparting training to the supervisors and union representative in handling grievances. This will help to ensure effective working of the grievanceprocedure.

(7) Follow up:

The working of the grievance procedure should be reviewed at periodical intervals by the HR department. The department should periodically review the procedure and introduce the essentialstructural changes making it more effective.