Placement

• Placement is essentially a process of matching jobs and individuals and placement occur when job is assigned to an individual.

• The placement decisions are taken by the line managers after matching the requirement of the job with the qualification of the candidates.

Definition Of Placement• Placement is determination of the job to

which an accepted candidate is to be assigned and his assignment to that job. It is the matching of what the supervisor has reason to think he can do with the job demands; it is the matching of what he has imposes in terms of strain, working condition, etc. and what he offers in the form of payroll, companionship with others, promotional possibilities, etc.

By :-Pigors and Myers

Placement Situations

• The problem of placement differs in three situations:-

1. When an individual has been selected for a particular position, say production manager for a particular plant, he is placed to that position.

2. When an individual has been selected for a particular position but the place of position or department has not been specified. Like:- stenographer, sales representative.

3. When an individuals has been selected without specific reference to the position

Ex:- management\executive trainee, consultant etc.

The third situation becoming more common. Individuals are selected not for a specific job but for several related jobs. In order to decide about placement of employees there is an assessment- classification model.

Assessment –Classification Model

Matching group profile and job family

Assign the individual to job family

Assign the individual to specific job

• Individual Individual profile :- Every individual has a

profile consisting of his biological features, personality, ability, interest, attitudes and values and motivation.

Group profile :- Any individual will work better with other individual whose profile match with his own because of commonality. Every individual differs from other. Still some common factor .these common factors are the basis on which an individual can be placed in a group.

A job is the combination of various interrelated tasks. Job profile :- Can be taking into account job contents,

job contexts and the relationship of the job with other jobs in the organization. Job content and job context may be derived from Job analysis. Job relationship can be derived from the type of technology used in performing the job. From this point of view, jobs are classified into three categories:-

1. Independent job 2. Sequential job 3. Pooled job

• Job family :It represents the classification of different jobs on the basis of their nature together. Various jobs in a family have some common features. For ex- Job of stenographers at various hierarchical levels of an organization belong to same job family though these may be performed at different levels.

• Matching Group Profile and Job Family

An individual is placed in a job family depending on match between group profile and job family.

Once he is placed in job family, he can be placed into the specific job after further counseling and assessment so that the individual’s profile matches with the group profile and job profile.

Benefits of proper placement

The employee will be able to:• Show good results in the job.• Get along with people easily.• Keep his spirits high, reports for duty

regularly.• Avoid mistakes and accidents.

Induction Or Orientation

• Induction or orientation is the task of introducing the new employee to the organization and its policies, procedures and rules.

• A formal orientation programme may last a day or less.

• Lectures, handbooks, films, groups and seminars are also provided to new employees so that they can settle down quickly.

Objectives Of Induction

• Removes fears or anxiety.• Creates a good impression.• Acts as valuable source of information.• Overcoming reality shock.• Accommodating employees.

Induction Programme: Steps• Welcome to the organization.• Explain about the company.• Show the location where the new recruit will

work.• Give the company manual to the new recruit.• Give details about pay, benefits, holidays,

leave etc.• Explain future training opportunities.• Hand him over to his supervisor.

Content of Employee Induction 1. Organizational Issues:• History of company• Names and titles of key executives• Employee’s title and department• Probationary period• Products\services rendered• Company policies and rules• Disciplinary procedure

2.Employees benefits:• Pay scales, pay days• Vacation, holidays• Training avenues• Insurance, medical benefits• Recreation retirement schemes• counseling

3.Introduction• To supervisors• To trainers• To co-workers• To employee counselor4.Job duties• Job location• Job tasks• Job objectives• Relationship with other job

Transfer

• Transfer is a change in assignment in which an employee moves from one job to another in the same level of hierarchy, requiring similar skills, involving approximately same level of responsibility, same status and same level of pay.

• A transfer does not imply any ascending (promotion) or descending (demotion)change in status or responding.

Purpose Of Transfer • To meet organizational needs.• To satisfy employee needs.• To utilise employees better.• To make employees more versatile.• To adjust the workforce.• To provide relief.• To reduce conflicts.• To punish employees.

Types Of Transfer

• Production transfer.• Replacement transfer.• Rotation transfer.• Shift transfer. • Remedial transfer.• Penal transfer.

Benefits Of Transfer

• Improve employee skills.• Reduce monotony, boredom.• Remedy faulty placement decisions.• Preparing the employees for challenging

assignment in future.• Stabilise changing work requirements in

different department or location.• Improve employee satisfaction and morale.• Improve employee-employer relationship

Problems Of Transfer

• Inconvenient to employees who otherwise do not want to move.

• Employees may or may not fit in the new location or plant.

• Shifting of experienced hands may affect productivity.

• Discriminatory transfer may affect employees morale.

Transfer Policy Need of policy:• Organization should clearly specified their

policy regarding transfer.• Otherwise the superiors may transfer their

subordinates arbitrarily if they do not like them.

• Subordinates may also request for transfers even for petty issues.

• Most of the people may ask for transfers to riskless and easy jobs and places.

A systematic transfer policy must contain :1. Specification of circumstances under which

an employee will be transferred in case of any company initiated transfer.

2. Name of the superior who is authorised and responsible to initiate a transfer.

3. Jobs from and to which transfer will be made, based on the job specification, description and classification etc.

4. The region or unit of the organization within which transfers will be administered.

5.Reasons which will be considered for personal transfers, their order of priority etc.

6.Reasons for mutual transfer of employees.7.Norms to decide priority when two or more

employees request for transfer like priority of reason, seniority.

8.Specification of basis of transfer, like job analysis, merit, length of service etc.

9. Specification of pay, allowances, benefits etc that are to be allowed to the employee in the new job.

10.Allowances for packing, moving etc.

Promotion

• Promotion refers to upward movement of an employee from current job to another that is higher in pay, responsibility and\or organizational level.

• Promotion brings enhanced status, better pay, increased responsibility and better working conditions to the promotee.

• But , They can be moved to higher level even

without increase in pay. Such type of promotion is known as “ dry promotion”

This promotion is slightly different from “upgradation” which means elevating the place of the job in the organizational hierarchy.

It implies horizontal movement of an employee but no increase in pay, authority or status. Such promotions does act as motivating factor.

Purpose And Advantages

• Powerful motivational values.• Inspire employees to utilise their skills to

fullest.• Inspire employees to compete and get ahead

of others.• Encourages loyalty and commitment.• Improve readiness to accept challenging roles.• Development of interest in training and

development.

Bases Of Promotion

• Merit – based promotion.• Seniority based.

Advantages of Merit Based promotion1. It motivates employees to work hard,

improve their knowledge, acquire new skills and contribute to organizational efficiency.

2. It helps the employer to focus attention on talented people, recognize and reward their meritorious contributions in appropriate way.

3. It also inspires other people to improve their standards of performance through active participation in all related activities.

• Disadvantages of merit based promotion 1.It is not easy to measure merit. Personal

prejudices, biases and union pressure may come in the way of promoting the best performer.

2.When young employees go ahead of other senior employees in an organization , frustration and discontentment may spread among the ranks.

3.Past performance may not guarantee future success of an employee. Good performance in job is no guarantee of good performance in another.

• Advantages of seniority based promotion1.Welcome by union.2.Easy to judge.3.No scope for favouritism, discrimination and

subjective judgement.4.Everyone is sure of getting the same one day.

• Disadvantages of seniority based promotion1.The assumption that the employees learn

more with length of service is not valid employees may learn upto a certain age.

2.It demotivates the young and more competent employees and results in greater employee turnover.

3.It kills the zeal and interest to develop, as everybody will be promoted without showing any all round growth.

4.Sometimes judgement of seniority becomes difficult. Like: Zonal – regional seniority.

Promotion Policy

Any firm should institute a promotion policy that give due weightage to seniority and merit. A sound promotion policy should be based on following criteria:

1.Consistency2.Fair and impartial3.Planned activity

Elements of promotion policy• Promotion policy statement : It should specify

whether a particular position will be filled by internal promotion or it will be filled by open competition.

• Promotion routes : The organisation must define the channels for promotion of different categories of employees.

• promotion procedure : Policy should spell out the procedure to be followed and personnel to be affected by promotion decision.

• Basis of promotion promotion on merit basis. promotion on seniority basis. If its on seniority basis determination of

seniority should be properly done. There are three major tasks in the design and establishment of a seniority system.

1.Accumulation of seniority.2.Special groups.3.Seniority unit.

Demotion

• It is the antithesis of promotion in which the employees marches backward instead of forward.

• It refers to lowering down of an employees status, responsibilities, and pay in the organisation.

“ the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility.” Beach

Reasons for Demotion• Economic crisis in the organisation : mergers

of several units may result into elimination of various positions and these position – holders may get lower positions.

• Mergers and acquisitions.• Adjustment problem faced by the new

promotee in the higher position.• Technological obsolescence.• Punishment.

Demotion policy

• Identification of situation in which demotion will be effected.

• Identification of the level of personnel at which demotion is to be effected.

• Clear policy regarding the probation period.• Clear policy on demotion based on disciplinary

measures.

Retrenchment

• It is a sort of permanent separation.• Retrenchment is governed by the provisions

of Industrial Dispute Act. Sec (2) of the act define retrenchment as “the termination of services of workmen by the employer for any reason”

• ” A worker can be retrenched after satisfying the following conditions :

He should be given three months notice or wages in lieu of the notice indicating the reasons of retrenchment.

Notice has been served to the appropriate Government authority and the permission of such authority has been obtained.

Voluntary Retirement Scheme

• Voluntary retirement scheme (VRS) involves separation of employees-both managerial and operative levels-based on mutual agreement between organisations and its employees.

• VRS is applied as a downsizing strategy to cut the size of the strength offering one time compensation.

• VRS is also known as “Golden Hand Shakes”

Issues involved in VRS• Identification of need for VRS: The first step in

making VRS successful is to identify the need of VRS by asking question

There is really a surplus manpower which cannot be utilise in near future.

What type of personnel will be affected.Who all opted for the scheme andWho all are not opted for it.

• Implication for VRS for the organisation : VRS can have very serious implication on the

organisation. It should be treated as double –edged weapon which can inflict injury to the organisation itself if it fails. This failure can be of two types:

First, when targeted employees do not opt for VRS

Second, it is not the quantity of employees which matters, what matters more is the quality of employees.

• Mechanism of VRS: It involves the decision

what is to be offered and to whom it is offered.

What is being offered relates to the compensation package under VRS.

To whom it is offered relates to the personnel who will be covered by VRS.

• Developing understanding with trade union: An organisation is required to sell the

concept of VRS to the employees who are covered by the scheme. There is a need to convince them by explaining various pros and cons and suggesting them the alternatives which they can adopt after the adoption of VRS.

• Rehabilitation Plan for employees: Such plans may include redeployment of such

personnel by providing them training to go for their own business or join some other job.

Resignation• Resignation : An employee may decide to

quit an organisation voluntarily on personal or professional grounds such as getting a better job, changing careers, wanting to spend more time with his family or leisure activities

• The decision could be because of employee’s displeasure with the current job, pay, working conditions or colleagues.

• Or an employee may be forced to quit the organisation on grounds of negligence of duty, insubordination, misuse of funds etc.

Discharge And Dismissal

• Dismissal is the termination of services of an employee as a punishment for some misconduct whereas Discharge also means the termination of services of an employee but not necessarily as a punishment.

• Discharge does not arise from a single, irrational act.

Reasons For Discharge• Dishonesty.• Inefficiency.• Violent and aggressive acts.• Physical disability.• Insubordination.• Carelessness.• Willful violation of rules.• Alcoholism.• Unauthorized absence from duty for a long

time.

Exit Interview

• Exit interview is held with an employee who is due to leave an organisation. Its basic objective is to identify the reasons for which the employee is leaving the organisation and to take corrective actions to overcome those reasons.

• Many companies have taken exit interview very seriously because of high employee turnover. Ex : Whirlpool….

Issues In Exit Interview

• It must decide the person who will conduct exit interview. Generally, exit interview is conducted either by HR personnel or direct superior of the employee concerned.

• Another issue is the timing of conducting it. Some companies prefer to conduct it at the last day of the employee’s tenure while others prefer to conduct it earlier.

• The third issue related to exit interview is its formal text, that is whether it should be structured one, in depth or unstructured one.

• The last issue in exit interview is the analysis of results and to design action plans based on such an analysis.

But there are few major problems in exit interview like:

Many organisations do not take it seriously.Existing employees do not disclose all

negative factors.

Employee Turnover

• Employee turnover is the rate of change in the working personnel of an organisation during the specified period.

• It signifies the extent to which old employees leave and new employees enter into service in a given period.

• It can be calculated in quantitative manner and quality also has its relevance.

Causes Of Employee Turnover• Employee related factors : 1. Job hopping tendency among individual

particularly at the initial stage of the career.2.Too much ambition among individuals leading

to a state of never being satisfied.3.Dissatisfaction from the present job and the

organisation.4.Better career opportunities5.Tendency of home sickness.6.Tendency to start own business.

• Organisation related factors:1. Incongruent organisational culture resulting

into conflict between the individuals and the organisation.

2.Faulty human resource policies and practices particularly related to the compensation, promotion, training and development etc.

3.Poor leadership and supervision.4.Poor working conditions.5.High and unrealistic expectations.

Effects Of Employee Turnover Cost to organisation:1. Hiring cost involved in recruitment, selection

and placement of new employees.2. Cost of training and development.3. Loss of production in the intervening period

in which the position remains vacant.4. Socialisation cost of new employees.5. Adverse impact on the existing employees’

morale.6. Loss of prestige of the organisation.

Cost to employees: 1. Frequent job changes resulting into loss of

long-term benefits like provident fund, pension, gratuity etc. to employees.

2.Socialisation process with the new work environment resulting into lower productivity.

3.Frequent dislocations affecting personal and family life adversely.

4.Loss of employee’s creditability because of frequent job changes.